We recently had an opportunity to talk with Andy Maguire, the Group Chief Operating Officer at HSBC Holdings plc. Mr. Maguire leads the HSBC technology and services divisions which includes IT, customer service, change support, operational processing, and more.
HSBC has 45 million customers across four global businesses and is one of the world’s largest banking and financial institutions. Their goal is to become “the world’s leading and most respected international bank”.
During our interview, we had the opportunity to ask Mr. Maguire a few questions.
How is disruptive technology changing the financial industry?
“It depends on your point of view and line of business. Retail payments are obviously impacted and under threat, while capital markets are the least threatened,” says Maguire.
Several new payment technologies have arisen for mobile payments in the past few years, including digital wallets and Bitcoin. Since the Apple Watch has been released, people have more options as wearable technology allows people to pay for things using their mobile device. These options include both Apple Pay, Google Wallet, and the soon to be released Android Pay.
New payment technologies come out on a regular basis and banks will be forced to integrate these new payment methods where appropriate. One way banks will win long term is for them to become advocates for the customer and implement digital delivery platforms all while understanding and staying ahead of change.
“There is a lot more potential than we’ll ever likely see realised with telephone banking, internet banking 1.0, and now real mobile/digital,” says Mcguire.
How is the financial industry designing a digital touchpoint for customers?
The financial industry has the opportunity to create innovative methods to manage customers and empower their workforce to provide more value to their customers.
“Generally there is more the industry could do better. When the best digital minds get to ‘do it better’ they find out it’s not as easy as it looks,” says Maguire. “Of course there are obstacles like the back book problem, enormous product sets, low involvement category, behavioural change, and regulation.”
How is HSBC using big data to improve the customer’s experience?
“The most exciting application is ‘nudges’, behavioural science customer prompts to genuinely help them save time, save money, and make their money work harder for them,” says Maguire.
There are tons of other applications for financial institutions using big data including credit decisioning, risk management, financial crime compliance, regulatory modelling, capital management, and many more.
How do you use technology to compete in your industry?
“Every day in every way we can: simpler access, better service, faster turnaround time utilizing simplification, elimination, automation, relocation, and consolidation,” says Maguire.
HSBC “enables businesses to thrive and economies to prosper, helping people fulfill their hopes and dreams and realize their ambitions.”
Come see Andy Maguire at Con.Verge and hear more about disruptive technology and the financial industry.