Page 10 - HSBC (D) Teaching Note

HSBC is still the “world’s local bank.” (dropped 2011) This
tagline reflected HSBC’s positioning as a globe-spanning

financial institution with a unique focus on serving local
markets.

Originally HSBC is like the diplomatic service opening

legations and embassies in new countries/markets to

finance the growing trade between e.g. China and the

United Kingdom.

It attracted customers from different global markets that

would also enhance its financial earnings and ensure its

financial success in the banking industry and becoming

the second largest bank in the world.

However, its structure was akin to a holding company or

international business rather than a highly integrated,

multinational, global one.

Its position as the world’s ‘local bank’ enabled it to

approach each country uniquely, blending local

knowledge with a worldwide operating platform. But,
decision making, to a great extent, resided in the

subsidiary.