CBI member, HSBC has announced plans to add 1,000 jobs in research and development centres in Guangzhou, Shanghai and Xi’an as it looks to expand its presence in China. HSBC says that it plans to spend up to US$3.5 billion a year on strengthening its technological operations and capability in FinTech.
By adding an additional 1,000 jobs to its current China-based headcount, HSBC’s workforce in-country will increase by 14%. HSBC currently employs 7,000 in Mainland China.
HSBC chief information officer, Darryl West said, “There is a lot more [HSBC] can do with technology in mainland China. The level of technology adoption and innovation in China is way ahead of other markets. {HSBC] see mainland China as a tremendous source of talent, not just for the local market but our technology operations globally. We are hiring very aggressively here.
HSBC plans to use its China-based technology centres to develop banking products for its global network, such as the bank’s UK mobile banking app – which is currently being developed and updated out of the bank’s Xi’an R&D site.
The bank’s investment in financial innovation in China comes in tandem with plans to invest US$15 billion in the next three years into China, as the central government eases restrictions on foreign ownership. Despite the limited physical presence of foreign banks in China compared to dominant domestic rivals being a challenge, HSBC generated nearly 40% of the bank’s revenue in Mainland China and Hong Kong last year.
The bank has identified the fact that consumers in China have embraced technological payment solutions in China in greater numbers than in the West as the main cause of their success in the market. HSBC hopes that further investment in technology and developing a wider portfolio of technology-based products will continue to negate the bank’s lack of a physical presence.
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