INTERVIEW: HSBC SINGAPORE
HSBC Singapore foresees a digital, green future for banks in 2021
Digital banking and sustainable products are viewed by leaders as key to resilience.
T
he year 2020 saw a rapid shift in financial institutions and customers’ adopting digital tools for their financing needs—a trend expected to continue well into, and even beyond, 2021. Moreover, the rise of environmental consciousness amongst consumers meant that the future of banking will be one that is both technologydriven and sustainable. These facts are well known to HSBC Singapore that it is no laggard in either the field of digitisation or green financing—in fact, on the contrary. “2020 has shown us how we need to be agile to weather through unforeseen circumstances and support our clients in times of need. Both digital and sustainability have shot up in the ranks of importance amongst businesses in Singapore,” Cherie Teng, head of corporate banking at HSBC Singapore, told Asian Banking & Finance. “Indeed we’re now seeing the decision-making process on these issues extend further than just the treasury functions. CFOs, key individuals and board members of businesses are now prioritizing the resilience of their businesses—digital banking and sustainable finance lie at the heart of building a stronger future,” she added. Earlier in 2020, the bank launched the HSBC SME Green Loan, making HSBC the first bank in Singapore to offer green loans designed for SMEs. The service reduces the time, costs, and complexity that SMEs associate with green financing, giving them a more accessible way to grow their operations whilst heading firmly towards a sustainable future. “We hear from our clients that they often want to play a role in the sustainability agenda, but don’t know how or where to begin,” Teng said. “That’s why we’re supporting businesses in accessing easier finance which is specifically allocated to green or sustainability-linked projects.” The pandemic also drove the take-up of digital services amongst HSBC Singapore’s commercial banking customers. Teng shared that 94% of the bank’s commercial banking clients are now on digital channel offerings on HSBCnet, whilst the number of PayNow Alias registrations more than tripled (239% up) since 1 April 2020. Asian Banking & Finance caught up with Teng to learn more about her thoughts on the changes in the finance and banking space and where the future of banking is headed.
12 ASIAN BANKING AND FINANCE | Q1 2021
Digital banking and sustainable finance lie at the heart of building a stronger future
Cherie Teng, head of corporate banking at HSBC Singapore
Could you walk us through the trends you observed in the digital payments space in 2020? Those who had not already enabled online transactions prior to the pandemic may have found themselves grinding to a halt; this has prompted an unprecedented change in the way banking is now conducted across Singapore and other markets. At HSBC, 95% of our Commercial Banking clients have made the switch from manual to digital, not just on the payments front but also with their collection methods and other working capital functions of their businesses, so that they can monitor these transactions from their end as well. Prior to COVID, cheque payments were still a commonly used payment method in certain segments of the market. Whilst this has dropped in recent years, largely due to government efforts to go paperless, there are still businesses that have struggled to make the shift. What trends or developments do you see happening in the digital payments space in 2021 and beyond? There’s no doubt that digital will continue to dominate in payments, whether for local or overseas payments. Indeed, the total value of digital payments
