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Comparative Study of HSBC and Citigroup Strategies

Case : Does IT Payoff? Strategies of Two Banking Giants

 HSBC strategies

1. Expand its global reach

• By more effectively unifying the company by country
• Distribution channel
• Customer group and global business

2. Invest in infrastructure and transactional technologies

• To lower operating costs
 HSBC strategies
3. To improve customer experiences in order to gain recognition as the best place to bank

• Invested in infrastructure technologies

• Provide reliable services to customers

4. To develop its brand

• Develop hsbc.com as a brand to provide services to both

retail customers and small and medium sized enterprises
 HSBC strategies

5. Used two key measures to assess IT performance and system

reliability

a. Number of customer transactions processed

b. Reliability and resilience of the groups systems

6. Expand business
a. By focusing on deposit making and risk management
b. Invest in infrastructure and strategic technology to facilitate
business growth
 HSBC strategies
7.
a. To use technology more effectively to make it easier for
customers to do business with the group

b. Invested in infrastructural technology to provide multiple

channels for customers to do business with the group

8. HSBC clearly allocates responsibility and delegates authority

to managers at all levels in order to meet the above objectives
 Citigroup strategies

1. Citigroup aims to penetrate into new markets and deepen

their presence in existing markets around the world and has
invested in transactional technology and strategic

2. To operate as one company by integrating its products and

services and transferring expertise. It has invested in
infrastructural technologies to make it easier for customers to
access their services
 Citigroup strategies
3.
• To have more group-wide common systems and standards to ensure
the best services to customers, no matter where they are or what
services they want

• Its investment in infrastructure and transactional technologies has

enabled its global expansion

4. To maximize returns and growth opportunities through effective use

of capital. It has used mergers and acquisitions as a way to penetrate
into new markets and facilitate business growth
 Citigroup strategies

5. To become a responsible organization, respecting the

interests of its customers, employees and its franchise. The
group uses technology to provide customers with better
services and lower its costs
Theoretical comparison of strategies adopted by both the
banks

HSBC Citigroup
• Followed the strategies of “Managing for Value”
• Followed by “Diversified financial
• Launched a new strategic plan called “Managing
for growth” service model”

• Divided into three major business

groups i.e. Global Consumer
Group, Global Wealth
Management division, Citigroup,
• Expanding global research Alternative Investment
• Enhancing Banking experience
• Developing Brand
• Instituting employment policies • Expanding distribution
Using technology more effectively
• • Transferring expertise
• Investing in people and technology
• Allocating capital to maximize
return
• Embracing shared responsibilities
Comparison between IT strategies of both the
banks
HSBC
• Has a decentralized management
approach to allow regional IT
services to meet local needs,
reflecting its slogan .the world’s local
bank
• Acquires and uses external resources,
mainly through strategic alliances and
offshoring
• Aims to provide customers with
multiple communication channels to
make it easy to do business with the
bank
Citigroup
• Has a centralized management
approach to provide common and
standard technological platforms for
easy system integration and global
expansion, reflecting its slogan under
one umbrella
• Acquires and uses external resources,
mainly through mergers and
acquisition
• Aims to provide customers with a
unified, group-wide, standard
technological platform to make it
easy to do business with the bank