HSBC

HSBC Holdings plc, the parent company of HSBC Group, is headquartered in. The London group serves clients in 3,900 offices located in 67 countries, the Europe Asia Middle East, North Africa, and North and Latin America. The company's assets as of June 30, 2017 are estimated at 2492 billion. dollars USA HSBC is one of the largest banking and financial institutions in the world.

Aktivs

2023: Seventh largest bank in the world

The largest banks in the world by capitalization for June 2023

2022: Bank assets - 93% of UK GDP

Data as of December 31, 2022 Toronto-Dominion Bank Data - January 31, 2023

2012: 7,200 offices worldwide

As of August 2012, the bank had a network of 7,200 offices in countries with both developed and emerging markets, serving about 89 million customers through four global business areas:

• Retail Banking and Wealth Management,
• Commercial Banking,
• Global Banking and Markets
• Global Private Banking.

The HSBC network covered 85 countries in six geographic regions:

• in Europe,
• Hong Kong and the rest of the Asia-Pacific region,
• in the Middle East and North Africa,
• in North America and Latin America.

Business in Russia

• HSBC - HBC Bank (RR)

History

2023

Using Operation Protection Against Quantum Computer Attacks

On December 6, 2023, HSBC announced that it was the first bank in the world to implement quantum protection of AI transactions related to foreign currency trading. The new method, as noted, will be able to protect financial systems from powerful next-generation cyber attacks - including those that use quantum computers.

It is noted that quantum computing technologies are developing at a rapid pace. Such systems will be able to solve complex problems, including in the field of encryption, at the highest speed not available to ordinary supercomputers. For example, the selection of a traditional password can take place almost instantly. And this will make classical security solutions and encryption algorithms vulnerable to quantum attacks. Given this circumstance, HSBC seeks to ensure the maximum security of its customers and their assets in the approaching quantum era.

HSBC announced that it became the world's first bank to implement quantum protection of AI operations

The HSBC security solution is based on quantum key distribution: this is the process of forming a secret key in two remote trusted users. Due to the fundamental laws of physics, it is impossible to quietly intercept the key: a third party trying to obtain a cipher must measure quantum states transmitted over the communication channel, which leads to their change and the appearance of an anomaly. Thus, the invasion attempt can be immediately detected and suppressed.

The HSBC quantum protection system was developed with the participation of specialists, and BT Toshiba. Amazon Web Services (AWS) The results of the project will be used by HSBC experts cyber security and specialists to trade to study possible scenarios for introducing quantum key distribution technology into the most important banking tools.

We are determined to do everything we can to protect our customers' assets both now and in the future. This project marks an important step in this direction, says HSBC.[1]

Ability to repay a loan or mortgage with cryptocurrency

Hong Kong's largest bank and one of the largest financial groups in the entire Asia-Pacific region, HSBC, has partnered with the cryptocurrency payment system FCF Pay, which will allow bank customers to make payments on loans and mortgages in cryptocurrency. This was reported by The Crypto Times on September 26, 2023.

HSBC customers! We are pleased to announce that bank users have the right to pay their mortgage bills and loans in cryptocurrencies - FCF Pay was informed in a post on X (ex-Twitter).

HSBC strikes partnership with cryptocurrency payment system FCF Pay

Among the supported cryptocurrencies are bitcoin, Ripple, Shiba Inu, Ethereum, Dogecoin and others.

According to the crypto platform, the payment process is quite simple - you just need to choose a payment method, and then provide payment data. On average, the payment takes about two days to complete. FCF Pay charges three dollars and a 2% fee for each payment.

Interestingly, a few years ago HSBC was wary of the use of cryptocurrencies and stablecoins due to the high volatility of their course and due to the opacity of the ownership structure.

In 2022, FCF Pay added the ability to use cryptocurrencies to sign up for Netflix, buy air tickets and order Amazon. In September 2023, the platform launched a digital asset bill payment system with support for about 21,000 companies.

In addition, in June 2023, it became known about the bank's intentions to open a branch in the metaverse. This will not be the first major bank with a virtual representative office. In February JPMorgan , a department was opened in. Decentraland

From October 27, banking group HSBC will stop servicing transactions of its corporate clients Russia in and. Belarus It was reported that those in banks the HSBC group would stop processing commercial payments in an "increasingly difficult regulatory situation."^[2]

UK branch purchase of bankrupt SVB for £1

HSBC Holdings Plc is buying Silicon Valley Bank's UK arm, the culmination of a frenzied weekend of ministers and bankers exploring various ways to prevent the collapse of SVB.

HSBC UK Bank plc, acquires Silicon Valley Bank UK Limited (SVB UK) for £1, "HSBC said in a statement on 13 March 2023.

2022: Establishment of a Chinese Communist Party committee in the bank's China division

In 2022, HSBC became the first global international bank to create a committee of the Chinese Communist Party in its investment bank, which allowed the CCP to carry out "activities" within the group's Chinese business, the Financial Times reported.

2021

Penalty for participating in a cartel in the Forex market

In early December 2021, the European Commission fined UBS, Barclays, RBS, HSBC and Credit Suisse 344 million euros for participating in a cartel in the Forex spot trading market.

Traders ran cartels from online chats, sharing sensitive information and trading plans that allowed them to make informed decisions about buying or selling currencies, the regulator said. In this case, traders periodically used a chat called "Sterling Lads" to plan their purchases and sales.

UBS Group AG avoided a €94 million fine under the Commission's leniency provisions for revealing the cartel's existence.

HSBC was fined €174 million.

Barclays was fined €54 million.

RBS was fined €32 million as part of an agreed settlement that allowed them to reduce sanctions by 10%.

Credit Suisse is obliged to pay 83 million euros and will not receive any reduction under the usual procedure.

Purchase of insurer AXA Singapore for $575 million

In August 2021, HSBC Holdings Plc agreed to buy AXA Singapore for $575 million, seeking to establish a global wealth center in Singapore and support its expansion in Southeast Asia amid rising tensions in China.

According to the statement, the acquisition will give HSBC the eighth largest life insurer in Singapore, as well as a leading group health insurance company with $474 million in assets.

Recommendations to customers in Britain to stop payments on Binance

In early August 2021, banking giant HSBC began contacting customers, recommending that they stop paying to the cryptocurrency exchange, saying Binance that it blocks customers from Great Britain using credit cards to make payments "wherever possible."

Reduce 40% of office space worldwide

At the end of February 2021, the largest bank in Britain HSBC announced that it would abandon 40% of office space around the world. As a result of the pandemic, the company's profits fell by more than a third, and the bank decided to cut costs through jobs and space.

In a presentation to analysts with the results of 2020, the bank's executive director Noel Quinn said that after the end of the pandemic, the bank will move to a "hybrid model" of work, reducing office space by 40%. HSBC previously announced it would close 82 branches across. Great Britain The reduction in space will occur due to the refusal to extend the lease of occupied premises and will not affect the headquarters building in. London

HSBC cuts 40% of office space worldwide

Quinn promised that the remaining buildings would be used with greater efficiency.

The model of work in our offices will change - the level of occupancy will increase, because we will have a hybrid model of work, "he explained.

At the same time, there will be no overflow of premises, since in 2020 the bank reduced 11,000 employees, including 17% of the management staff. In addition, as part of the "hybrid model," employees will perform part of the tasks remotely, including from home.

A similar model of work was proposed by Lloyds CEO Antonio Horta-Osorio. According to him, the bank intends to offer "sustainable rational solutions in relation to jobs that will be able to attract and retain a qualified, diverse and ready for the future staff." However, other banks, including Barclays and JPMorgan, have cooled down to the idea of ​ ​ remote work, since, in their opinion, such a regime negatively affects the well-being of employees and reduces work efficiency.^[3]

2020

HSBC Bank supported China in adopting a new law on national security in Hong Kong

In June 2020, a top manager of the British HSBC Holdings Plc signed a petition in support of China's actions to create a new national security law for Hong Kong, thus showing that the bank is on the side of Beijing in the struggle for the future of the special administrative region.

Reduction of 35 thousand employees due to digitalization

In mid-February 2020, HSBC said it planned to cut 35,000 jobs over the next three years due to a massive restructuring that has been launched in part due to the introduction of digital technology. Europe's largest bank intends to cut costs by $4.5 billion by 2022 by abandoning Western operations in favor of fast-growing Asian markets, especially China. Over the past ten years, this is the third massive reorganisation HSBC is going through in an attempt to boost profits.

The bank will reduce the number of its employees from 235 thousand to 200 thousand by 2023, that is, 15% of all employees are much more than analysts expected, predicting a reduction of about 10 thousand people. The bank has branches in 50 countries - in North America, Europe, the Middle East and Asia. In Britain alone, where HSBC is headquartered, 40 thousand people work.

HSBC says it plans to cut 35,000 jobs over next three years

The bank announced that it intends to cut costs due to unforeseen situations such as the outbreak of coronavirus in China and political unrest in Hong Kong, in one of the most important markets. The coronavirus has shaken the economies of Hong Kong and mainland China, which could negatively affect HSBC's performance. It is worth considering that almost half of the bank's income comes from Asia, but the exact numbers are still unknown. However, the bank expects some improvement in performance after the virus is contained.

One way or another, despite the problems arising in Asia, HSBC does not see serious prospects in developed markets such as Europe and the United States. The bank said it will get rid of assets worth more than $100 billion, largely due to the reduction of divisions, including the American network of retail banks, and the consolidation of some areas of business. By February 18, 2020, HSBC Bank has already begun restructuring, which provides for a reduction in operations in the United States and Europe.^[4]

2018: "World's First" Deal to Finance Blockchain Trading

On May 14, 2018, HSBC announced that, according to the financial conglomerate, the world's first transaction to finance trading using blockchain. The new technology should improve the efficiency of international trade operations, the volume of which is measured in trillions of dollars. Read more here.

Notes