Are you too poor for HSBC?

We want fewer clients who earn less than AED20,000 a month," said HSBC's Ventakesh Srikantan last week, at a stroke reducing the carefully and expensively cultivated notion of HSBC as the "world's local bank" to no more than hollow marketing speak.

According to official figures, most people in the UAE earn less than 20k a month ($65,400 a year). Presumably these people will soon have to go further afield to bank "locally".

The garish adverts which HSBC pays handsomely to adorn, particularly, the long concourses of the region's airports, scream "never underestimate the importance of local knowledge." The message is accompanied by depictions of happy looking people from all corners of the planet interacting in various serene settings - I don't think an HSBC call centre is one of them - presumably swapping tidbits of local knowledge.

"You want to have fewer clients and serve them right instead of having lots of clients who earn less than AED20,000," Srikantan, who is in charge of Assets and Liabilities for the Middle East, went on. Anyone who banks with HSBC in the GCC will be pleased to hear the bank is now keen on addressing the issue of serving its customers "right", but is this the way to do it?

Perhaps Srikantan is the Jerry Maguire of the Middle East's banking world. Maguire, you'll remember, was the sports agent played by Tom Cruise to within a whisker of an Oscar in the film of the same name. Maguire dared to dream the undreamable: less clients, better service, was his vision. Shortly afterwards, everyone decided he was mad, he was fired from his job and his life fell apart. Srikantan might find consolation in the happy ending, of course.

Other than destroying the image it has spent millions of dollars creating, it is hard to see what purpose HSBC thinks alienating people in the UAE who rub along on a salaries of less than $5,500 a month serves. Does it think these people are stupid? Do they clog up HSBC's brilliantly dynamic phone banking systems with their moronic questions? Or are they just unsightly? Perhaps the bank wants a richer, better nourished, better looking customer - is that the subtext?

It is believed HSBC currently has in the region of half a million customers in the UAE, although CEO for the region Lester Wynn-Jones mystifyingly refused to confirm or deny this when I interviewed him last year. The Middle East has contributed some $643m in the first six months of 2009 to the global profit figure of $5bn. Times are clearly tough. HSBC already charges its wealthier customers the princely fee of AED100 a month ($327 a year) for ‘Status' accounts. Status account holders have their own queues in branches - not for them the wait with the paupers - and not much else.

So, if it is already charging its wealthier patrons for the privilege of looking after and investing their money, why would  HSBC now turn down the money of people who have less of it? The logic of refusing people on lower incomes loans is perfectly obvious, even if it wasn't eighteen months ago, but why no ATM card and bank account for someone on AED12k who wants to save somewhere other than under the mattress?

HSBC's local knowledge in the UAE tells it the best way to communicate with me is by text message in the middle of the night. "We're going to charge you for statements now," was the last one. "We've reduced your credit card limit by many factors," came at the start of the year.

No doubt it is only a matter of time before "you are too poor to let us look after your money," causes me to break off a recurring dream about being CEO of Microsoft. I'll let you know.

Damian Reilly is the editor of Arabian Business English.

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READERS' COMMENTS

Time to move on
Posted by Andrew, Dubai, UAE on Wednesday 14 October 2009 at 09:10 UAE time


I don't work for HSBC, and I agree that this policy is abhorrent.

However, to keep this article on the front page for well over a week now just makes this news website look stale.

Surely some of your other columnists' articles could be displayed? Readers like me are getting tired of seeing the same article every morning when we log on to Arabian Business...

Which bank?
Posted by Greer, Bangkok, Thailand on Tuesday 13 October 2009 at 06:40 UAE time


Glad that John has pointed out that HSBC was originally an Asian bank which eventually bought out Midland Bank. I was a Midland/HSBC customer at the time and I am still with HSBC. In Asia I find their services to be fine, in Australia they have limited numbers of branches, and I am not sure but I think you cannot open a normal savings account there as they are a trading bank. To be honest, although we get service hiccups now and then, overall they have been no worse than most, and on a couple of occassions when I "yelled" at them about some charge that was not appropriate, they reversed it immediately. I found they have been OK elsewhere in the world, but some years ago when I was in Dubai, we used to use the Bur Dubai branch, and service there was not the best. This idiotic new policy is just the brainchild of a madman and he is obviously out of touch with reality, perhaps we should suggest they close all branches in the poor areas and only open where the rich and famous live....that should solve their problems having to deal with all the filth every day...dont you agree? The peasants are revolting... :)

The Local Bank - what a joke
Posted by James, Dubai, UAE on Monday 12 October 2009 at 15:38 UAE time


Can I reiterate many of the points that have already been made!!! They are a terrible bank to deal with - for someone who has a 'relationship manager now for 3 years I have had ZERO calls from them - ZERO. I actually did want to move to Emirates because I met who would be my Relationship Manager personally. I knew what to expect from them and they offered me other services which HSBC do not offer. I then attemted to move my account - talk about a joke!!!! Still with HSBC, still unsatisfied but what can you do!!!! I am slowly moving away from them but I would like to see someone from HSBC comment on these treads of feedback but unless someone forces them to do so, they do not reply to me!!!

The worst i've ever experienced
Posted by Mary, Dubai, United Arab Emirates on Monday 12 October 2009 at 13:39 UAE time


As far as i'm concerned, HSBC needs a total overhaul in Dubai. I only banked with them as this was my companies preferred bank. They reduced my Credit Card limit a week before christmas from 95,000 to 3000 and the only explanation i got was 'it was a global decision'.
Also, i am forced to have a Credit card as they don't have a debit card. When i looked into changing to Emirates bank, the pain and hassle of moving became too much so i'm staying put for now. The fact that they say they're a 'local' bank has no resemblence to how they operate in other countries. The Customer care staff have no knowledge - you call up 5 times and get 5 difference answers. Management don't care and never call you back. HSBC in Dubai, in my experience is a shambles and i don't see how this new policy will help matters.

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