HSBC 2004 Annual Report Download - page 52

HSBC HOLDINGS PLC
Financial Review (continued)
50
• In October 2004, Household Mortgage Services
was rebranded HSBC Mortgage Services. The
launch of a new marketing campaign, new
product line and an increase in sales staff
resulted in a record number of account
acquisitions. Nearly 50 per cent of all mortgage
applications were processed on-line in 2004.
Greater efficiency was achieved in collections
and servicing of mortgages.
• In December 2004, HSBC Bank USA received
regulatory approval to purchase HSBC Finance
Corporation’ s domestic private label portfolio
totalling US$15.6 billion, the transfer was
completed on 29 December 2004. HSBC
Finance Corporation will continue to maintain
the customer account relationships for the assets
transferred.
• During 2004, retail services in the US launched
new financing programmes with high-profile
manufacturers and retailers. These include
American Suzuki Corporation, Liz Claiborne
and Helzberg Diamonds. In addition, HSBC
Business Solutions, the business-to-business
financial arm of retail services, became the
commercial financing partner for Komatsu, Mac
Tools and Northern Tool & Equipment Co.
• America’ s largest labour union, AFL-CIO, and
card services, agreed to extend the term of their
successful affinity card programme. Card
services also added new affinity groups to its
partnership programme and rolled out the
Cards-in-Branches scheme to HFC and
Beneficial branches throughout the US. More
than 5.9 million value-added service product
memberships are now held by cardholders and
HSBC Finance Corporation has expanded into
the prime segment of the credit card market
under the HSBC brand.
• Projected operating synergies were achieved
through the integration of HSBC and HBSC
Finance Corporation. The merger of the
technology services teams of both HSBC and
HSBC Finance Corporation in North America
was completed; all HSBC’ s global credit card
technology is now co-ordinated from North
America. HSBC Finance Corporation’s use of
HSBC’s Group Service Centres was expanded,
with over 1,800 employees in the centres now
supporting the Consumer Finance business.
Purchasing activities in North America were
also consolidated, and 45 major vendor
relationships renegotiated, with annual savings
in excess of US$67 million, US$26 million of
such savings directly resulting from the
integration of HSBC and HSBC Finance
Corporation.
• At the end of 2003, the motor vehicle finance
businesses of HSBC Finance Corporation and
HSBC Bank USA were combined and their
product offerings were merged onto a single
platform. In January 2004, a new prime
financing programme was launched through
HSBC Bank USA. Organic growth of
US$1.4 billion in motor vehicle finance loans
was primarily achieved through the company’s
network of 5,200 motor dealers, extensive
alliance relationships, and direct sales channels.