VIEW FROM THE TOP
EMBRACING THE DIGITAL CHALLENGE NUNO MATOS CEO of HSBC
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Q: How does Mexico fit into HSBC’s global strategy?
an acceptable level. When it comes to law enforcement,
A: HSBC is a world-leading bank, with a presence in roughly
the country needs to make sure that laws are applied. The
70 countries. It is a leader in global banking activities
problem is not the legal framework; in fact, Mexican law
including trade finance, worldwide cash management
is quite good. The problem is that enforcement does not
and funding of capital flows. HSBC has the largest finance
work as it should. However, I believe there is a consensus
network in the world, connecting all the globe’s relevant
between the government, political parties, civil society and
economies. In this context, Mexico is one of the most open
the business sector to ensure that this pillar is managed in
economies in the world, with a GDP of roughly US$1 trillion
a different way.
and trade flows of around US$800 billion. The bank and the country are a perfect fit; we connect Mexico’s economy to
Q: What strategies should be put in place to further the use
the rest of the world.
of digital payment methods and reduce the use of cash? A: About three or four years ago, HSBC recognized that it
Additionally, we have a strong relationship with Mexico’s
needed to embrace the digital challenge and take it to the
most important commercial partners. For instance, HSBC is
next level. Globally, HSBC initiated its Retail Transformation
the only bank with a relevant presence in the three NAFTA
Program, in which the bank has invested almost US$1.7
countries. We are the biggest foreign bank in Canada, we
billion in its Top 6 countries, which includes Mexico. Our
have a strong presence in the US and we are among the Top
digital platforms, including online and mobile banking, have
5 banks in Mexico. The second-most important economic
been updated, we have implemented voice recognition at
corridor for Mexico is Asia and HSBC is the most powerful
our call centers and we have significantly improved our
bank in that region. This makes us the main bank for NAFTA
ATMs. The bank will continue implementing more changes
and the main bank for the Asian corridor.
in the coming months.
Q: Taking into consideration Mexico’s particularities, how
The organization is entering a phase in which new
has HSBC adapted its banking proposition to the Mexican
digital technologies and innovations are the focus
market?
of our strategy. In the specific case of Mexico, we are
A: In Mexico, HSBC has two pillars: our global business,
launching new Customer Relationship Management
which connects Mexico to the world, and the local business,
(CRM) infrastructure and we are also partnering with
which is retail banking. International business segments,
many fintechs. An example of this is Control Total, an
such as cash management and trade finance, are fairly
app we have just launched that basically allows users to
similar across the globe; what we provide the Mexican
control their credit card from their mobile phone. This
economy is worldwide integration. In the retail segment, we
development is the result of our partnership with fintech
have 1,000 branches across the country, our largest number
companies.
anywhere. We have more branches in Mexico than in the UK. Five years ago, the relationship between banks and Q: How much of a challenge to operations is Mexican
fintechs was of a confrontational nature. On hand, banks
bureaucracy?
were suspicious of fintechs because they seemed to have
A: I find that the two main areas that need to be addressed
the tools to take our market and on the other, fintechs
are the quality of education and law enforcement.
believed they could take over the market and that they
Education is a pillar for any economy that wants to be
did not need banks. Today, fintechs understand that
competitive in the long term. In the last five years, Mexico
without the banks’ customer base they cannot provide
has started to significantly change its education model, but
their services and if they want to become banks, they
we must recognize that there is still much to do to reach
need to be regulated.