HSBC 2006 Annual Report Download - page 109

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Insurance and investment products play an
important part in meeting the needs of customers.
Insurance products distributed by HSBC through its
direct channels and branch networks include loan
protection, life, property and health insurance and
pensions. Acting as both broker and underwriter,
HSBC sees continuing opportunities to deliver
insurance products to its customer base.
HSBC also makes available a wide range of
investment products. A choice of third party and
proprietary funds is offered, including traditional
‘long only’ equity and bond funds; structured funds
that provide capital security and opportunities for an
enhanced return; and ‘fund of funds’ products which
offer customers the ability to diversify their
investments across a range of best-in-class fund
managers chosen after a rigorous and objective
selection process. Comprehensive financial planning
services covering customers’ investment, retirement,
personal and asset protection needs are offered
through specialist financial planning managers.
High net worth individuals and their families
who choose the differentiated services offered within
Private Banking are not included in this customer
group.
Commercial Banking
HSBC is one of the world’s leading, and most
international, banks, with 2.6 million Commercial
Banking customers in 62 locations, including sole
proprietors, partnerships, clubs and associations,
incorporated businesses and publicly quoted
companies. At 31 December 2006, HSBC had total
commercial customer account balances of
US$191 billion and total commercial customer loans
and advances, net of loan impairment allowances, of
US$173 billion.
HSBC segments its Commercial Banking
business into corporate, medium, small and micro
business, allowing the development of tailored
customer propositions whilst adopting a broader
view of the entire Commercial Banking sector, from
sole traders to top end mid-market corporations. This
allows HSBC to provide continuous support to
companies as they grow in size both domestically
and internationally, and ensures a clear focus on the
small and micro business sectors, which are typically
the key to innovation and growth in market
economies.
HSBC places particular emphasis on
geographical collaboration to meet its business
customers’ needs and aims to be recognised as the
leading international business bank and the best bank
for small business in target markets. The range of
products and services includes:
Financing: HSBC provides a range of short and
longer-term financing options for Commercial
Banking customers, both domestically and cross-
border, including overdrafts, receivables finance,
term loans and property finance. HSBC offers forms
of asset finance in five sites and has established
specialised divisions providing leasing and
instalment finance for vehicles, plant and equipment.
Payments and cash management: HSBC is a
leading provider of domestic and cross-border
payments, collections, liquidity management and
account services worldwide. HSBC’s extensive
network of offices and direct access to numerous
local clearing systems, enhances its customers’
ability to manage their cash efficiently on a global
basis.
International trade: HSBC finances and
facilitates significant volumes of international trade,
under both open account terms and traditional trade
finance instruments. HSBC also provides
international factoring, commodity and insured
export finance, and forfaiting services. HSBC
utilises its extensive international network to build
customer relationships at both ends of trade flows,
and maximises efficiency through expertise in
documentary checking and processing, and highly
automated systems.
Treasury and capital markets: Commercial
Banking customers are volume users of the Group’s
foreign exchange capabilities, including
sophisticated currency and interest rate options.
Commercial cards: HSBC offers commercial
card services in 16 countries. Commercial card
issuing provides its customers with services which
enhance cash management, improve cost control and
streamline purchasing processes. HSBC offers card
acquiring services, either directly or as part of a joint
venture, enabling merchants to accept credit card
payments either in store or on the internet.
Insurance: HSBC offers insurance services in
25 sites, which cover a full range of commercial
insurance products designed to meet the needs of
businesses and their employees, including employee
benefit, pension and healthcare programmes. These
products are provided by HSBC either as an
intermediary (broker, agent or consultant) or as a
supplier of in-house or third party offerings. HSBC
also provides insurance due diligence reviews, and
actuarial and employee benefit consultancy services.
Wealth management services: These include
advice and products related to savings and