The world's local bank

CHAPTER 1

INTRODUCTION OF BANKING SECTOR

Financial sector reforms were initiated as part of overall economic reforms in the country and
wide ranging reforms covering industry, trade, taxation, external sector, banking and financial
markets have been carried out since mid 1991. A decade of economic and financial sector
reforms has strengthened the fundamentals of the Indian economy and transformed the operating
environment for banks and financial institutions in the country. The sustained and gradual pace
of reforms has helped avoid any crisis and has actually fuelled growth. As pointed out in the RBI
Annual Report 2001-02, GDP growth in the 10 years after reforms i.e. 1992-93 to 2001-02
averaged 6.0% against 5.8% recorded during 1980-81 to 1989-90 in the pre-reform period. The
most significant achievement of the financial sector reforms has been the marked improvement
in the financial health of commercial banks in terms of capital adequacy, profitability and asset
quality as also greater attention to risk management. Further, deregulation has opened up new
opportunities for banks to increase revenues by diversifying into investment banking, insurance,
credit cards, depository services, mortgage financing, securitization, etc. At the same time,
liberalization has brought greater competition among banks, both domestic and foreign, as well
as competition from mutual funds, NBFCs, post office, etc. Post-WTO, competition will only get
intensified, as large global players emerge on the scene. Increasing competition is squeezing
profitability and forcing banks to work efficiently on shrinking spreads. A positive fallout of
competition is the greater choice available to consumers, and the increased level of sophistication
and technology in banks. As banks benchmark themselves against global standards, there has
been a marked increase in disclosures and transparency in bank balance sheets as also greater
focus on corporate governance.

Origin and development of the banking

The origin of banking in India is traceable in ancient time through the modern banking hardly
200 Years old. The main functions of a bank are to accept deposits and grant loans. There are
evidences of these functions being performed by a section of the community in the Vedic
periods. There are many References of Debt in the Vedic Literature. During the Ramayana and
Mahabharata eras banking, which was a side businesses during the Vedic period, became a full-
time business activity for the People. During the Smriti period, which followed the Vedic period
and the Epic age, bankers performed the functions of the modern banks. The banking business
was carried on by the members of the Vaish Community and Manu speaks of earning through
interest as the business of Vaishyas.

BANKING SECTOR IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Banks Private sector Foreign Banks Regional Rural

Banks in India Bank

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(28) (27) (29) (102)

• Nationalized • Old Private
Bank Banks
• Other Public • New Private
Sector Banks Banks
(IDBI)
• SBI and its
Associates

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Scheduled State Cooperative

Banks (55) Banks (31)

Here we more concerned about private sector banks and competition among them. Today, there
are 27 private sector banks in the banking sector: 19 old private sector banks and 8 new private
sector banks. These new banks have brought in state-of-the-art technology and Aggressively
marketed their products. The Public sector banks are Facing a stiff competition from the
new private sector banks. The banks which have been setup in the 1990s under the guidelines
of the Narasimham Committee are referred to as NEW PRIVATE SECTOR BANKS.
New Private Sector Banks

• Superior Financial Services

• Designed Innovative Products
• Tapped new markets
• Accessed Low cost NRI funds
• Greater efficiency

INDIAN BANKING SECTOR

The Indian banking market is growing at an astonishing rate, with Assets expected to reach
US$1 trillion by 2010. An expanding economy, middle class, and technological innovations
are all contributing to this growth.The country’s middle class accounts for over 320 million
people.

In correlation with the growth of the economy, rising income levels, increased standard of
living, and affordability of banking products are promising factors for continued expansion.

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The Indian banking Industry is in the middle of an IT revolution, Focusing on the

expansion of retail and rural banking. Players are becoming increasingly customer -
centric in their pproach, which has resulted in innovative methods of offering new banking
products and services. Banks are now realizing the importance of being a big player
and are beginning to focus their attention on mergers and acquisitions to take advantage
of economies of scale and/or comply with Basel II regulation.

“Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to
receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in Celent's banking
group and author of the report. “The banking industry should focus on having a small
number of large players that can compete globally rather than having a large number of
fragmented players."

Growth and present status of the banking sector

Commercial banking can also refer to a bank or a division of a bank that mostly deals with
deposits and Loans from corporations or large businesses, as opposed to normal individual
members of the public (Retail banking). As in the Indian banking The most prominent on our
minds in the context of banking these days, perhaps, are the implications arising out of the Basel
II accord. Banks, as we all know, are Subjected to more intense regulation as compared to the
non-financial firms. This is probably because the banks possess certain 'special' characteristics:
Banks are much more leveraged than the other Firms due to their capacity to garner public
deposits. The asset - liability structure of the banks is also different from not only the non-
financial firms but also the financial firms. To illustrate, the risk in an Insurance company arises
mainly from the liability side of the balance sheet in the form of insurance claims whereas for the
bank the risk mainly comes from the diminution of asset values (for example, illiquid loans that
are not fully recoverable).
Future of the industry
Reflecting on future prospects in banking, immediate focus has to be on the cleaning up of the
remnants of undercapitalized banks, while concentrating on improvements in the rural co-
operative credit system. In the banking system as a whole, a healthy credit culture encompassing
appropriate pricing, quality of service, financial inclusion and contract-enforcement would be
vital. The Reserve Bank of India has, in the service of our country, a proven track record and
professionalism, which have lent it considerable credibility - both domestically and globally.
This credibility enables the RBI to confidently carry the reforms forward to credibly maintain
price and financial stability, while enabling self-accelerating equitable growth at elevated levels

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The Indian financial sector is ready for consolidation, said 95 per cent of the respondents. Given
the increased competition, and the implementation of Basel II norms in the near future, the
banking industry of the country would be better off with six to seven banks as big as State Bank
of India, said the survey. However, voluntary mergers are better than forced ones.
A majority of the public sector banks also demanded more autonomy to fix salary levels
proportionate to performance. In order to improve employee productivity it is essential to offer
competitive compensation packages at all levels, the survey said. About 92 per cent of the public
sector banks respondents voiced that they do not have sufficient autonomy to offer attractive
incentive packages to employees to ensure commitment levels. Some banks also said that in one-
year's time, banks should be permitted to issue preference shares. According to the survey, some
of the strengths of the banking industry are regulatory systems, economic growth, technological
advancement, risk assessment systems and credit quality.

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CHAPTER 2

ABOUT HSBC BANK

Headquartered in London, HSBC is one of the largest banking and financial services
organisations in the world. HSBC's international network comprises around 9,500 offices in 86
countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and
Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges,
around 200,000 shareholders in some 100 countries and territories hold shares in HSBC
Holdings plc. The shares are traded on the New York Stock Exchange in the form of American
Depositary Receipts.

Through an international network linked by advanced technology, including a rapidly growing e-

commerce capability, HSBC provides a comprehensive range of financial services: personal
financial services; commercial banking; corporate, investment banking and markets; private
banking; and other activities.

The HSBC Group has an international pedigree, which is unique. Many of its principal
companies opened for business over a century ago and they have a history, which is rich in
variety and achievement. The HSBC Group is named after its founding member, The Hong Kong
and Shanghai Banking Corporation Limited, which was established in 1865 to finance the
growing trade between China and Europe.

A visual record of the Group's history, the History Wall, was developed for the Group's
headquarters in London. Through 3,743 images, the History Wall captures HSBC's rich and
fascinating pedigree.

HSBC’S Principles and Values

The HSBC Group is committed to five core business principles:

• Outstanding customer service;

• Effective and efficient operations;
• Strong capital and liquidity;
• Prudent lending policy;
• Strict expense discipline;

Our business principles are supported by loyal and committed employees who make lasting
customer relationships and international teamwork easier to achieve.

HSBC also operates according to certain key business values:

• The highest personal standards of integrity at all levels;

• Commitment to truth and fair dealing;

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• Hands-on management at all levels;

• Commitment to quality and competence;
• A minimum of bureaucracy;
• Fast decisions and implementation;
• Putting the team’s interests ahead of the individual's;
• The appropriate delegation of authority with accountability;
• Fair and objective employer;
• A diverse team underpinned by a meritocratic approach to recruitment/selection/promotion;
• A commitment to complying with the spirit and letter of all laws and regulations wherever we
conduct our business; the exercise of sustainability through detailed assessments of lending
proposals and investments, the promotion of good environmental practice and sustainable
development, and commitment to the welfare and development of each local community.

HSBC’s reputation is founded on adherence to these principles and values. All actions taken by a
member of the HSBC Group or staff member on behalf of a Group company should conform to
the principles and values. Additionally, we have codes of conduct for staff in all operations.

Many areas of sustainability provide opportunities to collaborate with other financial services
organizations through international commitments to establish best practice.

Group structure
HSBC Holdings is a public limited company incorporated in England and Wales.

Headquartered in London, the HSBC group operates in five regions: Europe; Hong Kong; the
rest of Asia Pacific; including the Middle East and Africa; North America; and South America.

The entities, which form the HSBC GROUP, provide a comprehensive range of financial
services to personal, commercial, corporate, institutional and investment, and private banking
clients. To more easily promote the Group as a whole, HSBC was established as a uniform,
international brand name in 1999. In 2002, HSBC launched a campaign to differentiate its brand
from those of its competitors by describing the unique characteristics, which distinguish HSBC,
summarized by the words 'The world's local bank'.

References to HSBC on this website refer to the HSBC Group of discrete legal entities, each of
which is wholly or partly owned by HSBC Holdings plc. HSBC’s largest and best-known
subsidiaries and their primary areas of operation are:

Subsidiary Primary area of operation

The Hong kong and Shanghai Banking Hong Kong SAR, with an extensive network
Corporation Limited throughout Asia-Pacific.

Hang Seng Bank Limited Hong Kong SAR

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Subsidiary Primary area of operation

HSBC Bank plc United Kingdom

HSBC France France

Household International, Inc. US

HSBC Bank USA N.A. New York State in the US

HSBC Bank Brazil S.A.- Banco Múltiplo Brazil

Switzerland, Hong Kong SAR, Monaco,

HSBC Private Banking Holdings (Suisse) S.A. Luxembourg, United Kingdom, Singapore and the
Channel Islands.

Grupo Financiero HSBC, S.A. de C.V. Mexico

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COMPANY PROFILE
The Hong Kong and Shanghai Banking Corporation Limited (HSBC),

The antecedents of the HSBC Group in India can be traced back to October 1853 when the Mercantile
Bank of India, London and China were founded in Bombay (now Mumbai). Starting with an authorized
capital of Rs 5 million, the Mercantile Bank soon opened offices in London, Madras (Chennai), Colombo
and Kandy, followed by Calcutta(Kolkata), Singapore, Hong Kong, Canton(Guan chow) and Shanghai by
1855. The following hundred years were in many ways propitious for the Mercantile Bank. In 1950 it
moved into its new head office building in Mumbai at Flora Fountain.

The acquisition in 1959 by The Hong Kong and Shanghai Banking Corporation Limited of the Mercantile
Bank was a decisive factor in laying the foundation for today's HSBC Group. Founded in 1865 to serve
the needs of the merchants of the China coast and finance the growing trade between China, Europe and
the United States, HSBC has been an international bank from its earliest days.

The bank has since, steadily grown in reach and service offerings, keeping pace with the evolving
banking and financial needs of its customers. In India, the bank offers a comprehensive suit of world
class products and services to its corporate and commercial banking clients as also to a fast growing
personal banking customer base. The HSBC group is one of the largest banking and financial services
organization in the world. The group has over 10000 offices in 83 countries and territories in Europe, the
Asia pacific region, the Americas, the Middle East.

After The Hong Kong and Shanghai Banking Corporation acquired the Mercantile Bank, the Flora
Fountain building became and remains to this day, the Head Office of the HSBC Group in India.

Through the 1990s, HSBC has vigorously developed its role as one of the leading banking and financial
services organizations in the world. Its strategy of 'managing for value' emphasizes the Group's unique
balance of business and earnings between older, mature economies and faster-growing emerging markets.

HSBC in India is proud to have retained the Group's pioneering streak by being an active partner in the
development of the Indian banking industry - even giving India its first ATM way back in 1987. The
organization’s adaptability, resilience and commitment to its customers have further enabled it to survive
through turbulent times and prosper through good times over the past 150 years.

HSBC holdings plc is one the largest banking group in the world, ranked the fifth largest company. Its
head office is located in the HSBC tower in London’s Docklands. The group is the named after its
founding member, the Hong Kong and Shanghai banking corporation, a bank established by Thomas
Sutherland, a Scot to finance British trade in far east1865. The bank is second largest corporation in the
world in term of assets; it reports its results in United States dollars since 80% of its earning come from
outside the United Kingdom. Nearly 22% of its earning from operations. The HSBC logo, known as
Hexagon, is derive from HSBC ‘s19th century house flag itself derive from Scottish flag which is the
angular cross that Saint Andrew (patron saint of Scotland) was crucified upon. As of 2005 the than CEO
Michael was earning over 1millon US dollar Per year. Sir John Bond who retired in 2006 was earning a
massive 1.8 million US dollar HSBC made record profits in 2004-2005 year earning over 12 billion GBP
or more than 20 billion US dollar. This money is than kept at top of the company for paying its fat cat
CEO and board of directors.

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HSBC Group entities in India

• The Hongkong and Shanghai Banking Corporation Limited (HSBC)

• HSBC Asset Management (India) Private Limited
• HSBC Global Resourcing / HSBC Electronic Data Processing (India) Private Limited
• HSBC Insurance Brokers (India) Private Limited
• HSBC Operations and Processing Enterprise (India) Private Limited
• HSBC Private Equity Management (Mauritius) Limited
• HSBC Professional Services (India) Private Limited
• HSBC Securities and Capital Markets (India) Private Limited
• HSBC Software Development (India) Private Limited

Board of Directors
The Board of Directors of HSBC Holdings plc

S K Green, Group Chairman Age 60.

M F Geoghegan, CBE, Group Chief Executive Age 55.

COMMERCIAL BANKING
Personal banking
HSBC offers a wide range of personal financial services, including personal lending and deposit products,
through its branch network in Ahmedabad, Bangalore, Chennia, Chandigarh, Coimbatore, Gurgaon,
Hyderabad, Jaipur, Kochi, Kolkata, Luidhaina, Mumbai, New Delhi, Noida, Thane, Trivandrum and
Visakhapatnam. Also offered branch-wide are international gold and Classic credit cards from VISA and
Master Card and debit cards from Visa. Customers have access to 24-hour banking services through an
extensive network of automated teller machines (ATM’s), an integrated Call Centre and Internet banking-
online@hsbc.

Non Resident Indian banking

HSBC’s Non Resident Indian Banking (NRI) centers located in Asia-Pacific, Middle East, Europe and
North America, together with HSBC’s offices worldwide, provides the international Indian Diaspora
access to a range of products and services, these include NRI related investment (both international and

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domestic), transactional and deposit products, together with a full range of personal and private banking
products in India and overseas. Internet banking also provides easy access to HSBC’s services.

Financial Planning services

Services include investment and custodian management and access to stock broking and insurance
services, which are offered to resident as well as non-resident Indians.

Corporate Banking
HSBC has well-established long-term corporate banking relationships with large domestic Indian
corporations and financial multinationals operating in India. Services include term and working capital
finance, trade facilities, corporate deposits, syndications, payments and cash management services and
factoring.

Business Banking
HSBC’s Extra Mile Business banking offers two types of account to small and medium-sized businesses -
The Business Account and Business Vantage Account. The services include Business Phone Banking,
Business Doorstep banking and Multi Branch Business Banking.

Payments and Cash Management

HSBC provides integrated domestic and regional transaction support to corporate clients through a
sophisticated range of cash management solutions, including collection and payment services and
integrated with customer with customer back-end systems. Operations and client services are ISO 9001
certified. Hexagon, the HSBC Group’s dedicated electronic banking service allows users to perform
financial transactions, obtain international financial markets information, and review details of their
domestic and international accounts from anywhere in the world, 24 hours a day.

Trade (international and domestic) and factoring services

A wide range of solutions tailored to meet customer’s requirements for both domestic and international
businesses is offered. HSBC is also one of the leading banks involved in the billion businesses through its
offices in Ahmadabad, Bangalore, Chennai, Chandigarh, Hyderabad, Mumbai, and New Delhi and is
supported by the Group’s global expertise in the precious metal business. HSBXC is the leading provider
of trade services in India and its trade centers are ISO 9002 certified.

Institutional Banking
Working closely with Group offices in India and overseas, trade services, payments and cash
management, treasury and capital markets, custody and clearing and correspondent and electronic
banking activities are offered to banks, financial institutional, securities houses, insurance companies,
asset management companies and other non-banking companies, non-government and development
organizations operating in India.

Treasury and Capital markets

Clients consistently rate HSBC’s treasury business as on of the best in India. Its dealing room in Mumbai
is one of the largest in the Country, serving clients in Mumbai and in the major metropolitan center across
the country. It provides a comprehensive range of products which include- foreign exchange, money
market and fixed income products and derivatives n both rupees and major currencies.

Custody and clearing

The leading custodian in Asia, HSBC’s custody and clearing services are available in 28 markets in Asia-
Pacific and Middle East. With experienced staff and the latest technology, HSBC is the premier provider f
sub-custodian and clearing services to foreign institutional investors (FIIs) in India. HSBC clients include
the domestic fund management sector in both the retail and institutional segments. Institutional Fund
Services launched by the bank offers a comprehensive suite of products to domestic mutual funds and

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insurance companies ranging from custody, fund administration services, unit distribution and cash
management services.

Asset Management
HSBC Asset Management (India) Private Limited offers mutual funds to its customers. With the Group’s
global fund management expertise and investment capabilities, it is able to deliver quality products to
customers’ investment objectives.

Global Resourcing
HSBC Electronic Data Processing (India) Private Limited, through its offices in Hyderabad, Bangalore
and Visakhapatnam provides data processing/ customer service facilities for the HSBC Group’s overseas
operations.

Data Processing

HSBC Operations and Processing Enterprise (India) Private Limited, through two centers in Mumbai and
Chennai, provides operational processing services for HSBC offices in India.

Primary Dealership
HSBC Primary Dealership (India) Private Limited has authorized by the Reserve Bank of India to act as a
primary dealer in the government securities market

Primary Equity
HSBC Private Equity Management (Mauritius) limited, a subsidy of HSBC Private Equity (Asia) Limited
in Hong Kong, has a Liaison office in Mumbai. The company specializes in the provision of equity
capital to utilized growth in India and Sri Lanka

Asset Service
HSBC Professional Service (India) Private Limited provides internal audit services to the HSBC Group’s
internal audit units worldwide, with particular emphasis on the It, Treasury, Asset management, private
banking and Insurance functions.

Investment banking
HSBC Securities and capital Markets (India) Private Limited has two main business lines. Its Institutional
and proprietary broking business is based in Mumbai and has seats on two of India’s premier stock
exchanges, the Bombay Stock Exchange and the National Stock Exchange. It deals in Indian securities for
both Indian and international institutional and for select retail clients and is backed by an extensive
research team. The Corporate Finance and advisory business, with offices in Mumbai and New Delhi,
offers a full range of integrated investment banking services I India and internationally.

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CHAPTER 3

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a researcher in studying his research problem along with logic
behind him. Why a research study has been undertaken, how a research problem has been
defined, in what way and why the hypothesis has been formulated, what data have been collected
and what particular method has been adopted, why particular technique of analyzing data has
been used and a host of similar other questions are usually answered when we talk of research
methodology concerning a research problem or study.

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of in a manner
and aims to combine relevance to the research purpose with economy in procedure. In fact the
research design is the conceptual structure within which research I conducted. Research design is
needed because it facilitates the smooth sailing of the various research operations thereby
making research as efficient as possible yielding maximum information with minimal
expenditure of effort, time and money.
I have adopted descriptive and conclusive research design. Descriptive research is those studies,
which are concerned with describing the characteristics of a particular individual or a group.
Since the aim is to obtain the accurate information about the customer in terms of his interest
towards investment in stock sector. I have used the techniques of questioning customer in order
to know their consumer behavior, their interests, their needs and etc.
It is very important for the sales executive to study the mind of the customer so that the personal
visit would not be a waste of time, money and efforts.

SAMPLE DESIGN
After deciding on the research approach and Instrument, the researcher must design a Sampling Plan. This
includes:

Sample Size/ Population Size

A customer-based survey was conducted in which 50 people were asked to fill the questionnaire in which
all the 50 people belong to Delhi (Punjabi Bagh region).

Because it was not possible to consider each and every person of different cities and branch, so
sample was randomly selected to perform the survey..

RESEARCH OBJECTIVES
1) Main objective
The main objective is to know the awareness of Wealth Management Services provided by the
bank
2) Specific Objective

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 Creating customer awareness;

 To study the investment pattern of the customers;
 Creating relationship with the customer to have their sources;
 To study the financial needs of the customers;
 To educate investors to take active part in Wealth Management.
SCOPE OF STUDY
The methodology adopted for this project is exploratory in nature since there is no hypothesis that has to
be tested. The conclusions have been drawn by exploratory research work.

DATA COLLECTION
The researcher can gather primary data, secondary data or both. Secondary data are data that
were collected for another purpose and already exist somewhere. Primary data are data specially
gathered for a specific purpose or for a specific research project. When the needed data do not
exist or are outdated, inaccurate, incomplete, or unreliable, the researcher will have to collect
primary data. Most marketing research projects involve some primary data collection.
STATISTICAL & USED PRESENTATION TOOLS
PRIMARY DATA is represented:

 First classified i.e. grouped qualitatively and quantitatively according to the situation or the
type of the data, which was collected.
 After classifying is in columns and rows.
 Some of the data is also graphically represented in the form of PIE DIAGRAM.
SECONDARY DATA is represented:

 In the form of tables.

 Analysis
In our research we are using:
1. PRIMARY DATA
Using questionnaire method and direct personal interview method.
The primary data through personal references;

WMS i.e. Wealth Management System of the bank;

Customer references;

Sources of collection data

Ø Walk-in Customers

Ø Leads

Ø Bank executives

Ø Tele calling

2. SECONDARY DATA
The main source of information for the project was

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Ø Website
Ø Telephone directory
Ø Used leads of the company
Leads of the other company; i.e. telephone list for tale calling.

RESEARCH LIMITATIONS:-

Ø Time Constraint:-

Time given to us is not sufficient for this research as it requires to cover a large section of
respondents.

Ø Time and cost Constraint:-

This being an academic study suffers from time and cost constraints Confined resources of
money was the constraint

Ø Nature of the study:

The survey concentrated on personal information about income, savings etc. All these issues are
highly sensitive and of secretive nature therefore there could have been untrue answers to some
of the questions.

Ø Limited Scope:

The survey was conducted in Delhi thus the respondents belonged to only this region of the
country. This could have brought bias into the study

Ø Assumptions for the purpose of Analysis:

Some assumptions were made while doing the analysis and interpretations; there could be few
limitations in regard to these.

Ø Unrepresentative sample size:-

The sample size taken for the purpose of the study does not very significantly represent the whole society
and may not clearly bring out the average trends existing in the market.

Ø Ambiguous replies or omission of replies:

Some of the respondents gave ambiguous replies for certain questions or omitted the responses to some of
them. The interpretation of such responses becomes difficult and could generate wrong results

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CHAPTER 4
WEALTH MANAGEMENT SERVICES

Wealth management services at HSBC Bank includes:

Ø Premier

Ø PowerVantage

Ø Financial Planning

o Insurance

o Mutual Funds

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WEALTH MANAGEMENT

Wealth Management service is a comprehensive service to optimize, protect and manage the
financial well being of an individual, family or corporation. It’s basic definition covers:

 Advise on loans
 Investments and insurance to give a broad of how individuals should best deploy their
financial resources.

A broader picture may include

 Tax advise
 Estate planning
 Business planning
 Charity foundations and other financial needs.

Wealth Management is a holistic and integrated approach to managing your financial. It is

designed to create, grow and protect your wealth. With a wide range of innovative products from
deposits to insurance and investment products, and a full team of professional staff dedicated to
looking after overall financial well being.

Highlights of key trends:

1. Wealth management industry is growing very rapidly- as an organized industry it is growing in

terms of both the number of players as well as the number of high net worth individuals in India.
Wealth mangers are aggressively marketing their services to existing and potential high net
worth clients. With the number of clients growing, wealth managers are ramping up their
capabilities to mange growing volumes of assets.

2. Clients are becoming increasing sophisticated- wealth managers in India believe that high net
worth clients are becoming more sophisticated in their understanding and demands of wealth
providers, products and services. Many need a Relationship Manager to proactively assist them
in managing their wealth. Wealth managers need to ensure that they are equipped with specialist
skills and experienced staff to handle sophisticated client needs.

3. There is a shortage of skilled and experienced wealth management advisors- the demand for
trained and talented wealth management professionals is increasing a the industry continues to
experience growth. Relationship Managers are required to have a sound knowledge of a wide
range of products and services across asset classes being offered to high net worth clients.

4. Most wealth managers have adopted an open product architecture- most wealth mangers are
moving beyond in-house products and are distributing products and services sourced from other

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providers e.g. third party mutual funds, fixed income products etc. managers are focusing on
their core competencies and outsourcing products and services to complement their in-house
offerings e.g. real estate, art advisory, taxation advisory etc.

5. Most wealth managers aim to be “Trusted Advisors” to their clients- open product
architecture enables wealth mangers to offer their services as a trusted advisor to clients
and offer unbiased wealth management services. Trusted advisor is capable of offering a
comprehensive range of in-house and party products and services and proven advice
based on in-depth financial planning. In terms of their strategic orientation, most wealth
managers that participated in the survey believed that they were already their clients’
trusted advisors or would be within the next three years. Most wealth managers focusing
on the ultra high net worth segment are pursuing a competitive strategy based on
differentiation. Other wealth managers focusing on the mass affluent segment are
pursuing a cost leadership strategy.

6. There is relatively low usage of technology tools by wealth managers- IBM Business
Consulting Service believes that technology plays a very important role in enabling the
Relationship Manager to provide effective services to the customer. There is a need for
systems, which provide a single view of the customer’s entire wealth portfolio wealth the
wealth provider. While most players provide a consolidated view through a combination
of automated and spreadsheet applications, their are significant variations in their ability
to provide online, real-time access. Additionally, as the mass affluent segment continues
to grow in India, there is a need for online financial planning tools to assist this segment
of clients, eager to be in control of their portfolio and active in selecting and/or validating
their selection of products in line with their asset allocation strategy.

Who is it for?

HSBC’s offering is ideal for high-net worth customers

 Who are investing in Indian equities

 Who desire a personalized investment program

 Who desire long-term wealth creation

 Who appreciate a high level of service

As a part of its Wealth Management Services HSBC attempts to:

 Leverage full-service platform and market leadership to meet the customer’s needs

 Provide the highest quality advice and service

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 Focus on tax-sensitive, customized portfolio construction

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4.1 PREMIER

INTRODUCTION

HSBC Premier is a premium service, which is being offered to selected customers. It’s a global
relationship banking that dramatically changes and simplifies the way one handles the finances today.

HSBC premier eases the pressure of meeting countless deadlines and making innumerable decisions
especially when one is on the move. Managing ones financial portfolio is now more convenient with
HSBC’s range of highly personalized, comprehensive, time saving and rewarding facilities and services.

As an HSBC Premier customer, one is immediately recognized globally and is given priority when one
counts the bank. One to one relationship banking ensures that the dedicated relationship manger is always
on hand to assist and guide the client in his/ her most effective management of the finances.

One enjoys specialized facilities that go beyond regular banking. These include top line investment and
broking services, home banking, no bounce cheque protection, and much more. HSBC is committed to
understanding and anticipating one’s every banking need.

SERVICES OFFERED

Relationship Management: the premier customer enjoys access to a dedicated HSBC Premier
Relationship manger that will act as a single point of contact with the bank. All banking
needs of the clients will be anticipated, understood and comprehensively addressed by this
relationship manger who will mange his, her financial portfolio by offering customized
financial solutions, initializing with different departments and securing the best financial
terms for the premier client.

Investment Services: the financial consultant is committed to understanding every banking need
one may have and has one objective to harness the financial strength of the HSBC group to
provide the best solution to meet those needs. If required, this financial consultant will
provide the specialized advice on the client’s investment portfolio and offer valuable
recommendations on wealth creation and management.

Broking Services: broking services made available through HSBC securities India Holdings
Limited brings the convenience of executing the client’s buying and selling transactions.

Exclusive HSBC Premier Centers: dedicated HSBC premier centers around the world,
designed with the client’s need in mind. Whether one need cash in a foreign country or
more despite from hectic day. HSBC’s service centers provide exclusive, confidential, and
comfortable environment where one can conduct the banking transactions.

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Special Account for Children: the premier client can avail of the benefit of HSBC’s GenNext
account which offers the children a range of benefits which include a zero balance savings
account, systematic investment plan and a debit card (for minors over the age of 16 years).

i) HSBC Premier debit Card: This premium debit card gives access to over 6,70,000 HSBC &
VISA/PLUS ATMs across the world. It also allows the premium customers to make purchase
transactions at 10 million merchant establishments worldwide. With HSBC debit card, one
have access to unlimited free cash withdrawal and balance enquiry transactions at over 6000
non HSBC VISA ATMs in India.

ii) High cash withdrawals: the premium clients can withdraw up to or equivalent of Rs
10,00,000 per day from any HSBC VISA ATMs in the world.

iii) HSBC Premier Master Card: this premium credit card comes with a pre-approved credit
limit of at least Rs 2,00,000. It also provides access to all HSBC group ATMs as well as the
MASTER CARD CIRCUS network of ATMs in India.

iv) 24 Hour Banking: one can access to the bank through the personal telephone banking
service, 24 hours a day, 7 days a week.

v) Home banking: HSBC’s home banking services include the physical delivery of cash (for
any amount un to Rs 2, 00,000) and receipt or delivery of cheques, drafts, etc via special
courier.

vi) No Bounce Cheque protection: HSBC premier can avail of No bounce cheque protection of
up to Rs 1,00,000 on any HSBC premier cheque issued.

vii) Safe Deposit Locker service: the bank gives preference for the provision of a locker.

viii) Consolidated Statements: With a consolidated statement of accounts, the premier customer
can get a snapshot of his/her portfolio with the bank.

ix) Write in Tax Advisory: HSBC’s tax advisors for guidance on personal tax related matters,
free of charge.

x) HSBC Premier Global service: One can access to a wide range of special services, 24 hours
a day, 365 days a year, anywhere in the world. In addition, one can enjoy a range of other
services, available around the world.

FOR INSTANCES ONE CAN:

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• Exchange foreign currency, free of commission, at any branch of HSBC that handles
foreign currency exchange.
• Report lost or stolen cards or documents with ease and get an emergency replacement
card.
• Gain immediate access to an emergency medical and dental referral services across the
world.
• Benefit from medical repatriation or evacuation in case of any serious health problem.
• Obtain emergency legal assistance while traveling outside our country.
• Avail of emergency messaging and interpretation services.
• Gain access to business service arrangement and courier service.
• Obtain air travel, hotel & car higher reservation information and services.
• Seek special information to help in knowing one’s destination better, even before one
arrives there.
• Enjoy meals at preferred restaurant based on client’s cuisine preference.
• Obtain information on golf courses, location, tea times, fees and pars and even arrange
booking and payments.
• Track lost luggage, which will be located and delivered to the client.

ELIGIBILITY
HSBC Premier is available to both resident and non-resident Indian individual at a minimum
average and quarterly relationship balance of Rs 25 lacks.

For resident Indian individual this relation balance includes combination of deposit or investment
and loans of which;
 A minimum of Rs 20 lacks is to be held in deposit or investment (Mutual Funds)
purchased through the bank.
 The remaining Rs 5 lacks of the relationship can consist of loans taken from the bank.

For non-resident Indian individuals, the relationship balance comprises of Rs 25 lacks in deposits
with the bank.
These are some of the additional services offered to the investors. These are some of the ways,
which are used to segment and reach the potential customers.

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4.2 POWERVANTAGE PLUS

Having a POWERVANTAGE account entitles one exclusive attention and many reserved privileges.
So exclusive in fact, it almost seems unfair. But when you’re used to the best wherever you go, you
should expect it at bank too that are:

Ø Unlimited free transaction (cash withdrawals and balance enquiries) at over 2,500 VISA
ATMs in India using your Powervantage Debit card.
Ø Dedicated Service Desk and Teller Counters to assist customers
Ø Financial Planning Services to assist customers in planning future investments and insurance
needs.
Ø HSBC’s GenNext account is a zero balance savings account that offers a wide range of
benefits such as Systematic Investment Plan (SIP), to secure child’s future.
Ø Free cheque books with Cheques Payable at Par (CPP) in all cities where HSBC has branches
Ø No-bounce cheque protection which means all cheques presented through clearing
irrespective of funds available will be honored
Ø Joining fee waiver and 50% off on the annual fees of your Credit card. *
Ø Preferential pricing on Home Loan and Personal Loans
Ø Higher cash withdrawal* limit of 50,000 and funds transfer up to Rs 1,00,000 with your
Powervantage Debit Card from 2,500 VISA ATMs in India and 6,70,000 such ATMs
overseas.

ELIGIBILITY

Maintain an overall quarterly balance of Rs 1,00,000 as a combination of deposits and loans with a
minimum of Rs 50,000 in deposits or take a home loan from HSBC Finance or hold a minimum
investments of Rs 50,000 purchased through HSBC Bank.

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4.3 FINANCIAL PLANNING

“Financial Planning is planning for and managing life’s financial outcomes”

“Financial Planning is the process of examining a client’s personal situation, financial resources,
financial objectives and financial problems in a comprehensive manner, developing an
impartial, integrated plan to utilize the resources to meet objectives and solve problems,
taking the steps to implement that plan once approved by the client, and monitoring the
plan performance to take corrective action as necessary to assure that results match the
plan projections”.
Financial planning is a comprehensive strategy to integrate an individual’s or family’s financial goals,
including Risk management, Investment, Tax planning, Retirement planning and estate planning.

Financial Planning requires strategies for:

a) Identifying and development alternative sources of funding

b) Using and allocating funds in the most efficient manner, and

c) Adjusting program and institute size to the projected funding base.

WHAT FINANCIAL PLANNING CAN DO

Ø Organize finances
Ø Improve cash flow
Ø Lower personal income taxes
Ø Plan for retirement
Ø Plan for college expenses
Ø Improve investment performance
Ø Lower investment risk
Ø Reduce insurance costs
Ø Minimize estate settlement costs

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PROCESS OF FINANCIAL PLANNING AT HSBC

PERSONAL INFORMATION

FINANCIAL NEEDS & GOALS

Determining current financial

situation

Map out an Investment strategy for

reaching stated objectives

INVESTMENT SUITABILITY
STUDY

Assisting Investment Options

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4.3.1 INSURANCE

Single

Determining your protection needs can be a task in itself! This is especially true for a
young, single individual like you. The question you are probably asking yourself is whether you
have any need for insurance at all.... If yes, what are the options available? How do you choose?
Will your selected plan/plans be the right choice?

Married

You have just said "I do".... But have you planned for the responsibilities and financial
commitments that go hand in hand with such a decision. What kind of protection plan will serve
your needs at this stage of your life? What are the options available? How do you choose? Will
your selected plan / plans be enough?

Family

Having a child is often described as the most fulfilling experience for most parents... but
it brings on new responsibilities that are often daunting... have you planned for your future?
What kind of protection plans will serve your needs at this stage of your life? What are the
options available? How do you choose? Will your selected plan/plans be enough?

Retirement

Your children are educated and married... You live in a beautiful home with your wife
of many years... and finally you are once again free to fly... do what you want.. be a child again.
Determining your protection needs can be a task in itself! What kind of protection plans will
serve your needs at this stage of your life? What are the options available? How do you choose?
Will your selected plan/plans be enough?

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Life Insurance
Loan Repayment Protection Insurance

Unfortunate events in life cannot be prevented, but you can still plan to protect your
family against such mishaps. Especially when it comes to paying off your Home Loan
installments. Tata AIG Life Insurance Company Ltd.'s Home Loan Protection Plan (HLPP) is
designed to safeguard your family from the burden of your loans. So you can rest easy knowing
that even if something were to happen to you, the home you buy will remain with your family.

Non - Life Insurance

Travel Guard

Travel in peace anywhere in the world. Travel with Guard.

HomeSecure

It won't happen to my home.That is precisely what owners were thinking, in each of the
scores of homes destroyed every year by fire, burglary and explosion among other causes.

Complete Care Personal Injury Policy

As one gets older, inspite of being more careful, the risk of injury increases. While no
one likes to think about the escalating cost of old age care expenses, planning mind. With TATA
AIG's Complete Care Personal now can provide you and your family with peace of Injury
Policy, you can ensure a greater level of independence, should a need for care arise.

CritiCare

In the unfortunate event that you are affected by a critical illness, anytime in the future,
are you financially secure enough to worry only about your health and not the money required to
meet your medical expenses?

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4.3.2 MUTUAL FUNDS

CONCEPT

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial
goal. The money thus collected is then invested in capital market instruments such as shares, debentures
and other securities. The income earned through these investments and the capital appreciation realised
are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is
the most suitable investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. The flow chart below describes
broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

BENEFITS OF INVESTING IN MUTUAL FUNDS

Diversification
Professional Management
Liquidity
Flexibility
Cost Effective
Well Regulated

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CHAPTER 5

MARKETING STRATEGIES ADOPTED BY HSBC FOR

WEALTH MANAGEMENT

PRODUCT
HSBC used to offer Life Insurance policies in conjunction with Canara as a part of its wealth
management services.
• PFR- Personal financial Review (a financial health check up and a customized proprietary tool) is
done for need identification of customers and is absolutely free of cost; it helps in identifying the
extent of cover required.
• Different types of policies are offered depending upon the age and the health of the customer.
• Invest assure- unit linked insurance plan offers the customer’s market growth benefits as well as
life insurance cover.
• IRDA certified agents are there at HSBC to provide the best financial planning advices.
• Based on PFR a proposal is drawn for suggesting investments in different schemes and the extent
of insurance cover is drawn through Life Insurance calculators.
• Periodic audit is conducted of financial planning advisor and maintained as a record so that the
services just don’t go in vain and maintain the prestige of the organization; hence they can cater
to the requirements of their customers by providing the best possible services.

PRICE
• The insurance premium is charged as per the age and health of the customers as decided by
guidelines given by Canara Bank.
• The Mortality Charge depends upon the results of medical examination of the customer.
• Invest assure attracts both entry and exit loads as well as the mortality charge as per policy
guidelines.

PLACE
HSBC bank branches are situated all over the country in all major cities.
• New Delhi has 7 branches with Basant lok branch at utmost posh area of Vasant Kunj so as to
offer greater reach ability to customers
• HSBC offers one of the best ambiences in all the banks of the country
• HSBC’s financial planning mangers themselves reach out to prospective and existing customers
to pitch in insurance products as per the suitability of customers.
• HSBC offers doorstep-banking service to its privileged customers.

PROMOTION
• HSBC holds various contests in order to promote its products
• HSBC uses the Phone Banking facility effectively to market its wealth management products.
• HSBC effectively advertises on various mass media.
• Doorstep banking is effective in promoting products.
• All employees do cross selling.
• Various social events are organized from time to time.
• HSBC mutual funds like Midcap were effectively advertised on TV, radio and newspapers.
• Movie tickets are provided to privileged customers.

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• Canopy and stall based promotional activities

PEOPLE
• HSBC is equipped with one of the best staff available in banking industry.
• The bank provides it privileged clients with a dedicated Relationship Manager who cares of
clients on a personal basis.
• HSBC periodically hold training sessions for its employees for keeping them update.
• HSBC takes all due measures to motivate its people and develop them into an efficient and
socially developed workforce.

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CHAPTER 6
DATA ANALYSIS

1.Gender profile of respondents

GENDER PROFILE

f emale
13%

male male
87%
female

The above pie diagram shows that 87% of the respondents were males and the rest 13% were
females. This also shows that most of the customers holding Premier accounts and
PowerVantage Accounts with HSBC Bank are males.

2.Annual household Income of the respondents

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Annual household income

<5 lakhs
11%
39% 5-10
19% lakhs
31%
10-20
lakhs

>20
lakhs

Annual household income of majority of the respondents i.e. 39%(less than Rs. 5 lakhs), 31%
(Rs. 5-10 lakhs) is less than 10 lakhs shows incapability foe using financial planning and wealth
management services. 19% of the respondents were in the group of Rs. 10-20 lakhs which could
be the prospects for using the services and only 11% constitutes the people whose income is
more than Rs. 20 lakhs and these are respondents who are bets suited for financial planning and
wealth management services.

Q.3. Do you invest your money?

Do you invest your money?

18%
Regularly
26% 56%
Occasionall
y

Never

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Maximum number of respondents i.e. 56% invests their money in some form or the other while 26%
constitutes the people who invest their money occasionally i.e. whenever they have a very good
opportunity and only 18% of the respondents do not invest their money at all.

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Q.4. Whose advice is instrumental in your investment decision?

INVESTMENT DECISION

16 15
14 13
12
12 10 Own
10
e
lu8
a6 Family &
V
4 Friends
2 CA
0
1 Financial
Influencer Planner

As seen from the graph, maximum number of people likes to invest their money based on their own
experience and more respondents invest with the advice from their family and friends. While only
10people take the advice of their CA and lastly 12 ask their financial planner. This shows that maximum
number of customers don’t take the advice of CA of Financial Planner.

Q.5 Where do you invest more?

ASSET ALLOCATION

300 280 282

242 savings
250
211
insurance
200
s
e 141 143 mutual funds
u
l 150
a govt. bonds
V
100
54 fixed deposits
50 35
real estate
0 stock markets
1 others
Types of Assets

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As seen from the figure that most of respondents keep their money either in Savings a/c & Fixed Deposit,
which do not involve risk and are safe with fixed returns. After that, people like to invest their money in
insurance schemes and stock markets. About a 50% of customers also like to keep their money in Govt.
bonds and retail estate, while very few people like to invest in mutual funds.

Q.6 Are you aware of or currently using any Financial Planning service?

Awareness of FPS & Wealth Management services

of HSBC

35%

65% YES
NO

This pie chart clearly that majority of respondents i.e. 55% are still unaware about the services
about the Wealth Management Services of HSBC Bank.

Q.7 What parameters do you consider before selecting any Financial Planning Service?

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Parameters

300 280
245
250
211 reliability
200 185
past returns
150 136 brand image
services offered
100
refered by friends
50

0
1

From the above figure we observe that most of the respondents give maximum weightage to reliability.
Brand name and past returns also play an important role.

Q.8 What factors are important for you before investing in any financial instrument?

RISK
RISK

0%
25% Very
imp.
75% Imp

Risk plays a very important role for most of the investors as it is considered as a very important factor in
affecting the investment decision.

1. RETURN

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RETURN

0%
33% Very
imp.
67% Imp

Majority of people believed that returns expected out of an investment are very important consideration
for choosing an investment option. Because the returns expected tells that whether to invest in particular
investment or not.

2. LIQUIDITY

LIQUIDITY

4%
16% 32% Very imp.
Im p
48% Mod. Imp
Little imp

32% of the people believed that Liquidity is very imp while 48% believed that liquidity is important
factor for investment in any financial instrument.

3. BRAND IMAGE

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BRAND IMAGE

6% 2%
Very imp.
17% 34%
Imp
41% Mod. Imp
Little imp
Unimp.

34% of the respondents believed that brand image is very important while 41% thinks that it is important
consideration while choosing an investment option.17%said that it moderately important.

Q.9Respondents interested in Future use of FPS including Wealth Management Services of

HSBC Bank.

Future use of FPS & Wealth Management services

of HSBC Bank

25%
YES
75% NO

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Q.10 How would you rank the following banks on the basis of the Wealth Management Services
provided by them?

HSBC Premier 1

STAN CHART Priority 3

CITIBANK Citigold 2

ABN AMRO Van Gogh 5

AXIS Priority 4

ICICI Priority 7

HDFC Preferred 6

SWOT ANALYSIS
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o STRENGTHS
 HSBC brand in itself is strength for the bank.
 The bank’s debit card can be used on the ATMs of all the banks free of cost.
 Free investment advisory services are provided with the savings account.
 No commission is charged on the investment advisory services provided to the customers.
 The credit card provides a pre approved credit limit as high as Rs 2,00,000 to its investors.
 Unlimited transactions are provided on debit card. It comes with a withdrawal limit of Rs
1,00,000 per day.
 Free home banking is provided to the account holders which includes cheque pick ups, cash
delivery up to Rs 2,00,000
 No balance cheque protection is also provided to the account holders.

o WEAKNESSES
 The bank does not provide cash credit limit, which is a big limitation for the current
account holders.
 The number of branches is very few due which people who are staying far do not
prefer to bank with HSBC Bank.
 The balances, which are to be maintained, are very high for both current and savings
account, which keeps the middle-income group away from opening account.
 The bank has hidden costs, which sometimes lead the existing customers close to
their account.

o THREATS
 Concentration Risk- entry of new competitors in the market like Deutsche Bank and
Barclays Bank in retail banking who intend to market themselves aggressively in
India.
 Presence of various NBFC’s pose a major threat to HSBC’s Wealth Management
Services because the services provided by all of them are more or less the same.

o OPPORTUNITIES
 Increasing awareness about financial planning services in India.
 Increasing number of people is interested to invest due to the rising markets and
booming economy.
 Increasing disposable incomes of people.

FINDINGS
HSBC is effectively brokering the various life insurance policies for TATA AIG life insurance
Company till 10 June 2008 and now with Canara Bank, Oriental Bank.
PFR the Financial Analysis Tool and the Insurance Needs Calculator predict the future needs and
amount of cover required by a particular customer in an effective manner.
• Wealth management services at HSBC bank are amongst the best in the industry with the prime
thrust on niche market.

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• The services provided by the bank are better than the competitors.
• The brand makes regular efforts to gain more business from its existing subscribers by
telemarketing.
• Telemarketing executives seems to be well trained to interact with customers with end result of
building highly positive brand associations, if not more revenue.
• It has started the concept of Social Workforce balance in which the employees are given time to
fulfill their social obligations.
• The revenues have grown up with the Wealth Management Services and the Premier customers
are more satisfied with these services.
• The bank is using a double edged weapon for fulfilling its social commitments, as well as
effectively publishing its services by way of conducting various events on Saturday’s which
include
o Magic shows
o Painting competition for children
o Craft making competition for children
o Cartoon day celebration
• To increase the morale of the employees’ celebrations for target beaters along with the
celebration of the birthdays are done.

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LIMITATIONS

 Respondents were hesitant in sharing personal details like name, phone numbers etc. with us.

 Respondents were not willing to share financial details like personal income, expenditure etc.

 The study was done for only 50 people, so the actual figures may be different.

 At times the information given by the respondents was found to meet the financial planning
manager in most cases, as they were not willing to share personal financial matters with us.

 The PERSONAL FINANCIAL REVIEW SOFTWARE (PFR) is too complex for a layman to
understand and comprehend the results without the help of a Financial Planning Manager (FPM),
so while pitching for it on phone explanation of its functions is difficult unless an appointment is
generated.

 The PFR is too lengthy also and involves lot of time to spend for a FPM and the customers,
which could result in loss of resources from both sides.

 It gives out the desired Debt Equity Mix, the savings-wealth graph and predicts the cash flows
and future requirements but these are mere predictions and depend upon non-happening of
contingencies.

 CRMS Primary URL used to maintain information and transaction record of the customers is
redundant and not updated frequently.

 HSBC only brokers insurance for Tata AIG, it does not actually run life insurance, so it only gets
a part of premium as commission after doing entire efforts for selling the policy.

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CONCLUSION

Wealth Management Services are still at a nascent stage in India. It will take around 2-3 years to
become an easily available service. From the results of the study it is quite evident that
people are clear of their goals and the investment options to select in case of short-term
needs or traditional investment methods whereas the awareness about newer investment
avenues is evidently low. Most of the customers never analyze their long-term needs and
are just indulging in ad hoc savings and investment with no structure or game plan in mind.
Since the goals needs etc. are not defined so are the needs for saving and the methods of
investment.

Certain things were evident from the results of the study:

Extremely low level of awareness about financial planning services.

• Undefined long term needs in most cases.
• Mismatch between needs for investment and the financial instrument selected for the same
• Most of investments made were ad hoc. No structure or initial planning was done before
investing the money.
• A significant amount of population invest just to save taxes rather than to build a corpus or
additional income.
• A major portion of investments was blocked in non-liquid assets like property showing that the
investment portfolio had not taken care of the liquidity needs of investors.
• The family members and friends rather than the individual himself easily influence the financial
decisions of individuals.
• There is a need to increase the awareness regarding Financial Planning services as well as try to
tap through referrals by existing customers this would help them to increase their market share.

All these findings show that there is an emerging need for Financial Planning since people have
not got the right acumen to always plan for their needs or at times to think over their
prospective needs and decide how to save for them. There is a great scope for the increase
in market of financial planning because people are not always capable of taking the right
decisions at the right time and need expert advice. With a financial planner at hand people
and their investments can go a long way therefore everyone can take benefit of Financial
planning services.

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RECOMMENDATIONS AND SUGGESTIONS

FOR EFFECTIVE MARKETING OF LIFE INSURANCE POLICIES

The FPM’s while doing portfolio advisory should make the customer realize the need for life
insurance.
• Periodic reviews regarding performance of life insurance industry should be carried on with the
FPM’s to suggest the need for life insurance.
• Individual illustrations need to be prepared for each customer highlighting his insurance plan,
premium structure and maturity benefits.
• While following up leads the FPMs should try to pitch in insurance and other investments for the
other members of the family especially children.
• Periodic advertisements regarding the performance of HSBC should be carried out in various
media so that people are aware.

FOR EFFICIENT UTILIZATION OF PERSONAL FINANCIAL REVIEW SOFTWARE

• PFR can be utilization as an effective marketing and wealth management pitching tool as well as
an aid in portfolio advisory.
• Periodic information regarding the benefits of PFR as a means of financial health check up of
customers needs to be imparted to the customers.
• For convincing customers to undertake the PFR regular information in the form of manual and
literature could be handed over as brochures over the counter or may be posted to them.
• FPM’s should try to make PFR trust worthier so that the customers are not hesitant to divulge
their personal information.

FOR CALL LIST

The database is updated on a regular basis so as to avoid time delay in reaching out to customers.
The CRMS Primary URL should be made user-friendlier.
The HUB facility given to the employees should be updated with the changes made in CRMS
Primary URL.
• Privacy policy of CRMS passwords should continue to be vigilant.
• Special emphasis should be given towards correctness and updating of contact numbers of call
list since false and non-existing numbers was a major roadblock for the executives.
• The Contact Preference Option in CRMS menu should be integrated with the balance and
transaction details column for saving time while accessing CRMS and getting customer details.

IMPORTANT POINTS TO MAKE FINANCIAL PLANNING SUCCESSFUL

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1. Understand the effect of each financial decision- each financial decision you make can affect
several other areas of your life. Eg. On investment decision may have tax consequences that are
harmful to your estate plans? Or a decision about your child’s education may affect when and
how you meet your retirement goals, remember that all of your financial decisions are
interrelated.
2. Start planning as soon as possible- doesn’t delay your financial planning. People, who save or
invest small amounts of money early, and often, tend to do better than those who wait until later
in life. By savings, budgeting, investing and regularly reviewing your finances early in life, you
will be better prepared to meet life changes and handle emergencies.
3. Re-evaluate your financial situation periodically- financial planning is a dynamic process. Your
financial goals may change over the years due to changes in your lifestyle or circumstances, such
as an inheritance, marriage, birth, house purchase or change of job status
4. Realize that you are in charge- if you are working with a financial planner, be sure you
understand the financial planning process and what the planner should be doing. Ask questions
about the recommendations offered to you and play an active role in decision-making.
5. Be realistic in your expectation- financial planning is a common sense approach to managing
your life goals. It cannot your situation overnight. It is a lifelong process. Remember that events
beyond your control such as inflation or changes in the stock market or interest rates will affect
your financial planning results.

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BIBLIOGRAPHY

Books

 Kothari C.R., “Research Methodology”, Revised Edition 2000, Vishwa

Prakashan.

 Aggarwal B.M., “Quantitative methods”, 10th Edition

 Harper W. Boyd (1996), Ralph Westfall and Stanley F. Stsch “Marketing

Research 7th Edition”, Published by Laxman Chand Arya, Arya Book Depot.

Websites

 www.hsbc.co.in

 www.hsbc.com

 www.insuranceindia.com

 www.crisil.com

 www.indiainfoline.com

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ANNEXURE

QUESTIONNAIRE

Ø NAME: AGE:

Ø GENDER: M F

Ø MARTIAL STATUS: SINGLE MARRIED

Ø ADDRESS:

Ø CONTACT NO.:

Ø OCCUPATION:
BUSINESS OR SELF EMPLOYED SALARIED

PROFESSIONAL HOMEMAKER

OTHERS

Ø EDUCATION QUALIFICATION:

UNDERGRADUATE GRADUATE

POST GRADUATE PROFESSIONAL

OTHERS

Ø ANNUAL HOUSE HOLD INCOME

<5 LAKHS 5-10LAKHS 10-20LAKHS

>20 LAKHS

Q How often do you invest your money?

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Regularly Occasionally Never

Q Who’s advise is instrumental in your investment decision?

Own Family Friends

CA Financial Planner Others

Q Where do you invest?

Saving Account Insurance Mutual Funds

Govt. Bonds Fixed Deposits

Real Estate Stock Market Others

Q Are you aware of /or are you currently using any Financial Planning Services?

YES NO

Q Are you aware of Financial Planning Services And Wealth Management Services of HSBC?

YES NO
Q If no would you like to know about the same?

YES NO

Q Do brand and promotion play an important role while selecting financial planning?

YES NO

Q What parameters do you consider before selecting any Financial planning services?

Reliability Past Returns Brand Name Services Offered

Referred by friends Others

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Q Do you have accounts in other foreign banks? If yes, then which one?

Q Whose services will you prefer to take the most?

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