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HSBC mulls AED20,000 salary limit for customers
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 06 October 2009
GLOBAL BANK: HSBC has more than 125 million customers worldwide with more than 10,000 offices in 83 countries. (Getty Images)
HSBC could turn its back on customers who earn less than AED20,000 ($5,445) a month in a bid to cut costs and boost profits, it has been reported.
The world’s fifth largest lender by assets has been hit by the global financial downturn. According to reports, its pre-tax profits in the Middle East have fallen 35 percent to $643m, compared to the same period in 2008.
In a bid to curb expenditure the bank is considering refusing new customers if they earn less than AED20,000 a month, according to a report in the National on Tuesday.
“You want to have fewer clients and serve them right instead of having lots of clients who earn less than AED20,000. In other words, we want fewer clients who earn less than AED20,000,” Venkatesh Srikantan, the regional head of assets and liabilities at HSBC Middle East, told the paper.
Meanwhile, customers at HSBC’s branch in Deira who earn monthly salaries under AED20,000 a month could no longer get full banking services.
They will not be able to use their branch for free, obtain personal loans or credit cards or arrange an overdraft, the paper reported.
“Before you could open an account regardless, even with an income of AED3,000,” Angela Anthony Noronha, a HSBC client relationship manager, told the paper.
“Now clients with a monthly salary of around AED18,000 only get a personal account with an ATM card and access to internet banking.”
What do you think about HSBC’s idea to target wealthy customers? Post your comments below
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Confusing article......
Posted by Susan Pires, Dubai, UAE on Monday 2 November 2009 at 13:04 UAE time
There seems to be a bit of confusion here. Just called HSBC and it doesn't seem to be true that customers need to earn a salary of 20000 to qualify as customers. Insisting on minimum salaries to get loans (with banks being provided the liberty of deciding the minimum) and lowering credit limits is perfectly justifiable in the current environment and I believe should have been the route cautious banks should have pursued even before the crisis. After all trust is the very foundation of banking.
Posted by Susan Pires, Dubai, UAE on Monday 2 November 2009 at 13:04 UAE time
There seems to be a bit of confusion here. Just called HSBC and it doesn't seem to be true that customers need to earn a salary of 20000 to qualify as customers. Insisting on minimum salaries to get loans (with banks being provided the liberty of deciding the minimum) and lowering credit limits is perfectly justifiable in the current environment and I believe should have been the route cautious banks should have pursued even before the crisis. After all trust is the very foundation of banking.
Dream on.......and then wake up to reality!
Posted by Susan Pires, Dubai, UAE on Monday 2 November 2009 at 10:35 UAE time
Not sure what HSBC hopes to get as a result of this new policy. I'm a premier customer that earned more than this amount but I've now lost my job. I'd like HSBC to send me an email letting me know if I qualify as a customer. Or perhaps Angela Noronha might like to call me and clarify.
What I do know is that for all the years I've invested in capital guaranteed bonds, I've only ever got back my money. Do recall paying upfront charges which I'm not sure comes out of the principal or out of one's account....so I might have even been losing on these.
I did have a good (in fact a wonderful) relationship banker who left in November last year. Quite unlike him, I was not advised so it might have been a sudden decision. Since then I've had two relationship managers - one was introduced to me in a letter from the bank and before there was any interaction of any sort, I got yet another letter introducing me to yet another relationship manager. The latter called up probably only to assess my risk appetite and when asked to provide answers to two queries on previous investments made, seemingly felt it more fruitful to direct his attention elsewhere where he could earn a commission or get a client that would help him meet his targets.
I'm not quite sure what HSBC is trying to do....unless it is aiming at drastically reducing its staff too and so wants to focus on only the premium customer. I can see the money-lenders around and money lenders in the making smiling at the prospect of an informal banking system that they could exploit should other banks choose to do the same!
However, let's get real....surely there must be someone at the helm of banking affairs that is able to see the big picture and regulate the activities and policies of banks....so let's not worry with such press releases.
Posted by Susan Pires, Dubai, UAE on Monday 2 November 2009 at 10:35 UAE time
Not sure what HSBC hopes to get as a result of this new policy. I'm a premier customer that earned more than this amount but I've now lost my job. I'd like HSBC to send me an email letting me know if I qualify as a customer. Or perhaps Angela Noronha might like to call me and clarify.
What I do know is that for all the years I've invested in capital guaranteed bonds, I've only ever got back my money. Do recall paying upfront charges which I'm not sure comes out of the principal or out of one's account....so I might have even been losing on these.
I did have a good (in fact a wonderful) relationship banker who left in November last year. Quite unlike him, I was not advised so it might have been a sudden decision. Since then I've had two relationship managers - one was introduced to me in a letter from the bank and before there was any interaction of any sort, I got yet another letter introducing me to yet another relationship manager. The latter called up probably only to assess my risk appetite and when asked to provide answers to two queries on previous investments made, seemingly felt it more fruitful to direct his attention elsewhere where he could earn a commission or get a client that would help him meet his targets.
I'm not quite sure what HSBC is trying to do....unless it is aiming at drastically reducing its staff too and so wants to focus on only the premium customer. I can see the money-lenders around and money lenders in the making smiling at the prospect of an informal banking system that they could exploit should other banks choose to do the same!
However, let's get real....surely there must be someone at the helm of banking affairs that is able to see the big picture and regulate the activities and policies of banks....so let's not worry with such press releases.
HSBC should be happy to have any customers at all!
Posted by CH, Dubai on Friday 23 October 2009 at 22:25 UAE time
HSBC client service is awful. Actually, they don't have any. I have only been a client with HSBC for 6 months and I am already in the process of changing. Never in my life have I experienced a bank, any company for that matter, which seem to truly hate their clients. Also, they have the highest fees overall. There is nothing about them that makes them special. And I am also one of the people that they are targeting.
They should start focusing on the clients they have!
Posted by CH, Dubai on Friday 23 October 2009 at 22:25 UAE time
HSBC client service is awful. Actually, they don't have any. I have only been a client with HSBC for 6 months and I am already in the process of changing. Never in my life have I experienced a bank, any company for that matter, which seem to truly hate their clients. Also, they have the highest fees overall. There is nothing about them that makes them special. And I am also one of the people that they are targeting.
They should start focusing on the clients they have!
HSBC
Posted by Jon, Dubai, UAE on Friday 9 October 2009 at 09:06 UAE time
I'm with Andy Ramz - I'm also a HSBC Premier customer and I find the level of service at the "top end" of their offering to be awful. I do all my banking online and avoid visiting a branch whenever possible. In fact, in 4 years I think I visited a branch 4 times.
Posted by Jon, Dubai, UAE on Friday 9 October 2009 at 09:06 UAE time
I'm with Andy Ramz - I'm also a HSBC Premier customer and I find the level of service at the "top end" of their offering to be awful. I do all my banking online and avoid visiting a branch whenever possible. In fact, in 4 years I think I visited a branch 4 times.
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