Master of Business Administration (MBA) Program

Technology and Information System Management

Term Paper Assignment on

Electronic/Internet Banking System of

The Hong Kong and Shanghai Banking Corporation

Instructor: Dr. Siriwong Kangsumrith

Prepared by: Mr. PRABIN RAI ID. # 5517190045

Table of Contents 1. Overall History of HSBC .................................................................................... 3 2. Business Development ........................................................................................ 4 3. Second World War and Effect to the Bank .......................................................... 4 4. Other Important Profile of HSBC ........................................................................ 5 5. History of HSBC in Thailand .............................................................................. 5 6. Organizational Structure and Management of HSBC ........................................... 7 7. Corporate Governance Policy & Business Strategy ........................................... 10 8. SWOT of HSBC ............................................................................................... 12 9. Problem Area, Investigation and Understanding of the Problem ........................ 14 Section III: Environment Analysis of HSBC ................................................................ 15 1. Business Driving Forces ................................................................................... 15 2. Project Objectives ............................................................................................. 19 3. Alternative Solution and Feasibility Study ........................................................ 19 4. Risk & Risk Management of Internet Banking ................................................. 20 Section IV: Financial Analysis of HSBC ...................................................................... 30 1. Decision Making Process .................................................................................. 30 2. Various Financial Analysis ............................................................................... 31 3. A Recommended Solution Vs Business Justification ......................................... 35 Section V: System and Development Process ............................................................... 35 1. System Development Process and Requirement Analysis .................................. 35 2. Principle and Techniques to Success ................................................................. 39 3. Data Flow Diagram ........................................................................................... 39 Section VI: Way Forward ............................................................................................... 39 Appendix: ....................................................................................................................... 40 References ...................................................................................................................... 41

Methods Applied for this Project Work Mostly following methods were followed to prepare this term paper. 1. Discuss with teacher & follow his guidelines; 2. Surf internet and find out specific information; 3. Checked the lessons, book that was recommended by the teacher; and 4. Writing the required text following the guidelines. The information on the strategies of e-banking of HSBC was very limited. As it has strong security system therefore the information that we require for the technology is very limited.

The Instruction is too big to follow within the short period time. Besides, the instruction includes very detail information of the HSBC system development process and its overall ins-and-outs which are limited in the web-site.
2

Section - II: History and Profile of HSBC Bank

1. Overall History of HSBC

HSBC stands for the "Hong Kong and Shanghai Banking Corporation". It was founded in the former British colony first in Hong Kong in March 1865 and Shanghai, one month later, by Scotsman Sir Thomas Sutherland (18341922).

Initial capital was HK$5 million, when the bank opened its doors on 3 March 1865. The bank started issuing locally-denominated banknotes in both the Crown Colony and Shanghai soon afterwards. The bank was incorporated in Hong Kong by special dispensation from the British Treasury in 1866, and under the Hong Kong and Shanghai Bank Ordinance 1866, a new branch in Japan was also established.

The founder, a Scotsman named Thomas Sutherland wanted a bank operating on "sound Scottish banking principles". Still, the original location of the bank was considered crucial and the founders chose Wardley House in Hong Kong since the construction was based on some of the best Feng shui in Colonial Hong Kong. The bank initially leased its premises for HK$500 a month in 1864.

HSBC Holdings plc established in 1990 became the parent company to Hong Kong and Shanghai Banking Corporation in preparation for its purchase of Midland Bank in the United Kingdom and restructuring of ownership domicile for the impending transfer of sovereignty of Hong Kong to China.

HSBC is known as one of the largest financial and banking services industries in the global environment. The company is headquartered in London and has an international networks which composes of over 10, 000 offices in more than 87 states and territories within Asia-Pacific Region, Europe, United States of America, Africa and Middle East.

HSBC Holdings Plc are regarded to have around 210,000 shareholders in over 100 nations as noted in listings in countries like New York, Bermuda, Paris and Hong Kong. It
3

has over 300,000 staffs around the world. Very recently, the HSBC Bank has decided to lay off about 15,000 staffs mainly from Europe.

Because of the global network connects by the implementation of advances technology like the internet and information communication technology, the company has been able to provide an intensive range and reach of financial services which includes commercial banking, investment banking and market personal financial services, and other banking and financial products and services. The business philosophy of HSBC gives important to values and principles in all aspects of everyday living.

2.

Business Development

Sir Thomas Jackson became chief manager in 1876. During his twenty-six year tenure, the Bank became a leader in Asia. Notable events included being the first bank established in Thailand, in 1888, where it printed the country's first banknotes; acting as banker for the Hong Kong government from the 1880s; and participating in the management of British colonial government accounts in China,

Japan, Penang and Singapore. A period of expansion followed, with new branch offices opening in Bangkok (1921), Manila (1922) and Shanghai (1923), and a new head office building in Hong Kong in 1935.

3.

Second World War and Effect to the Bank

In anticipation of the Japanese invasion of Hong Kong in 1941, the Bank's head office moved to London. During the period 1941-1943 the chief manager Vandeleur Grayburn, and his successor David C Edmondston, both died while interned by the Japanese. Arthur Morse was appointed Chief Manager in 1943 and led the bank after the war.

The head office moved back to Hong Kong in 1946. During the Japanese occupation the Bank's head office building was occupied as the headquarters of the Hong Kong Japanese military government.

HSBC Holdings acquisition of Midland Bank gave HSBC Group a substantial market presence in the United Kingdom which was completed in 1992. As part of the takeover conditions for the purchase of Midland Bank, HSBC: Holdings plc was required to relocate its world headquarters from Hong Kong to London in 1993.

4.

Other Important Profile of HSBC

In February 2008, HSBC was named the world's most valuable banking brand by The Banker magazine. Not known for marked fluctuations in securities exchanges around the world relative to its rivals, HSBC is a better known in banking circle for its conservative and risk-averse approach in its business operations a company tradition going back to the 19th century.

In its technical management, however, HSBC has recently suffered a series of headline-making incidents in which some customer data were allegedly leaked or simply went missing. Although the consequences turned out to be small, the embarrassing effect on the group's image did not go unnoticed. As of 2 April 2008, according to Forbes magazine, HSBC was the fourth largest bank in the world in terms of assets ($2,348.98 billion), the second largest in terms of sales ($146.50 billion) and the largest in terms of market value ($180.81 billion). It was also the most profitable bank in the world with $19.13 billion in net income in 2007 (compared to Citigroup's $3.62 billion and Bank of America's $14.98 billion in the same period).

HSBC is the largest bank both in the United Kingdom and in Hong Kong and prints most of Hong Kong's local currency in its own name. Since the end of 2005, HSBC has been rated the largest banking group in the world by Tier 1 capital.

5.

History of HSBC in Thailand

HSBC is the first Commercial Bank in Thailand. HSBC initially opened for business in Thailand in 1888, as it has already been mentioned above. It has been serving Thai people for 12 decades. It was the first commercial bank in Thailand. HSBC has made significant contributions to the establishment of solid foundations for Thailands financial
5

and banking sectors. For example, in 1889 HSBC issued the first banknotes in Thailand. HSBC also issued the first foreign loan to the Thai government for its railroad construction project. HSBC has always been a major driving force behind Thailands commerce and economy.

Throughout the past 120 years HSBC has based its standard services on an in-depth local knowledge and a true recognition of the Thai peoples changing needs. HSBC is committed to its goal to be the best bank and a key driving force for the Thai economy and Thai society forever.

From the first banknote to credit card, HSBC offers the true values to customers from the international trade via freight to online international trade. Today, HSBC provides a comprehensive range of financial and banking services to both corporate and personal customers.

1888

2 December: The first step in Thailand as Hong Kong and Shanghai Banking Corporation during the reign of King Chulalongkorn. Its first office was located at the old Belgian Consulate on

Charoenkrung Road.

1889

Introduced First Banknotes with the permission of Siamese authorities. The currency notes were issued in denomination of one, five, 10, 80, 90 and 100 ticals (baht) which were used widely to pay debts and taxes among customs officials and other government offices.

1902

When the Bank of Thailand issued its own banknotes in 1902, the amount of the Banks banknotes in circulation decreased gradually. Moving to Tanam Si Phraya. In 1890, the Bank moved to Romanstyle building between customers lane and Oriental building, a place known
6

1890

today as Tanam Si Phraya and the site of a luxury hotel, The Oriental, for 87 years. The office building was declared officially open by HRH Prince of Chandaburi, then the Minister of Finance. 1905 Siam's First Foreign Loans: The first public overseas loan to the Siamese government was issued in 1905 for the announced purpose of railway construction. The government, under the advice of a British financial expert, wished to retain a minimum treasury balance of 22 million baht. Railways were of a high priority in the unification and centralization of the Kingdom, and therefore the decision was made to borrow abroad. The Siamese Ambassador in Paris approached two banks one British, HSBC, and one French, Banque de 1Indo-Chine, which agreed to an internationalized issue; the French and British issued bonds were to rank pari passu with delivery in London or Paris. The actual signing of the agreement was celebrated with a dinner at the Savoy for twenty persons including the Siamese Ambassador to Paris, Phraya Suriyanuwatr. The loan was issued in both London and Paris in March 1905.

1977

Moving to Siam Center. In 1977, the Bank moved from Tanam Si Phraya to Siam Center Department Store.

1982

Moving to HSBC Building on Silom In 1982, the Bank moved to HSBC Building on Silom road for 20 years until 2001.

2001

Moving to HSBC Building on Rama IV. On 9 February 2001, the Bank moved to HSBC Building on Rama IV road until today .
1

6.

Organizational Structure and Management of HSBC

7

The HSBC Group has a significant presence in each of the world's major financial markets, with the Americas, Asia Pacific and Europe each representing around one third of the business. With around 8,000 offices in 87 countries and territories, 210,000 shareholders, 300,000 staff and 128 million customers worldwide, HSBC arguably has the most international presence among the world's multinational banking giants. The HSBC Group operates as a number of local banks around the world, which explains its advertising tagline "The World's Local Bank." In response to ongoing discussions about the survival strategies for banks, and the suggestion of "Living Wills" HSBC explains its structure as "separately incorporated and capitalized" the structure is based on a lead bank in each region, which has responsibility for the group's operations in that area. HSBC is a universal bank and is organized within four business groups: a) Commercial Banking; b) Global Banking and Markets (investment banking); c) Personal Financial Services (retail banking); and d) Private Banking.

HSBC is primary listing is on the London Stock Exchange (LSE) and it is a constituent of the FTSE 100 Index. It has secondary listings on the Hong Kong Stock Exchange (where it is a constituent of the Hang Seng Index), the New York Stock Exchange (NYSE), Euronext Paris and the Bermuda Stock Exchange. As of August 2010, it was the largest company listed on the London Stock Exchange, with a market capitalization of 115.8 billion. HSBCs organizational structure can be considered as liberal as every country branches reports directly to the executive committee. This structure provides for a more efficient management not only within localities but more so on the whole HSBC organization. HSBC in HK is considered as one of the main branch in HSBC organizational structure.

HSBC maintains a typical structure for transnational organizations: it has a central committee that oversees all its branches and is also subdivided on national or domestic markets. The local players are given their own autonomy in the structure. Being under the
8

skin and hair care division, it had been a tradition that zonal presidents handle the local operations of HSBC. In this way, management decisions within the company are more flexible.

Each of the members of the organizational structure of HSBC has their own functions to contribute to the organizational performance of the company. Through the organization structure of HSBC, the strategy imposed by the company has become more effective because it enables the management the ability to plan, coordinate, and control all activities (2004). Likewise, formalization is thought to lead to greater efficiency because the predefined rules and procedures serve to routines repetitive activities and transactions (2001). Organizational structure institutionalizes how people interact with each other, how communication flows, and how power relationships are defined (1999). The structure of an organization reflects the value-based choices made by the company (1992); it refers to how job tasks are formally divided, grouped, and coordinated.

Moreover, company effectiveness necessitates changes in organizational structure and design (1994). This is true for transnational organizations such as HSBC. Under the organizational structure of HSBC in its brand, the management has been able synchronise the parts of the organization. In addition, through it structure the company has been able to ensure productivity. In addition, as part of its strategic management, HSBC has also been able to constantly stock of its workforce and assess their performance in existing jobs.

Through its organizational structure, the HSBC has been able to improve organizational performance via improving the performance of individual contributors, within the structure. Further, the company has also recognises existing talent which is use to fill vacancies higher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills (2002).

Managers have the primary role to make specific identifications of all the possible sources of evaluation information which includes observable employee behaviours. This is
HSBC Head Office England

Latin America

Asia Pacific

Middle East

North America

Europe

HSBC Mexico SA HSBC Bank Brazil SA, Banco Multiplo HSBC Bank Argentina SA

The Hongkong and Shanghai Banking Corporation Ltd Hang Seng Bank Ltd HSBC Bank (China) Company Ltd HSBC Bank Malaysia Berhad

HSBC Bank Middle East Ltd HSBC Bank Egypt SAE The Saudi British Bank

HSBC Bank USA Inc HSBC Finance Corporation HSBC Bank Canada

HSBC Bank plc HSBC France HSBC Trinkaus und Burkhardt AG HSBC Private Bank (UK) Ltd

because aside from the observations of the immediate supervisor, performance evaluation information can still come from a variety of other sources, including the employees, subordinates, and work products.

Head office The head office is in 8 Canada Square in Canary Wharf, London. On Friday 25 September 2009 the company stated that while its head office would remain in London and the main regulator would continue to be the Financial Services Authority, the CEO moved from London to Hong Kong in the beginning of February 2010. In each country there are well establish office with well structured organizational structure, operational structure and well-qualified staffs.

7.

Corporate Governance Policy & Business Strategy It has been reported that at the end of 2003, HSBC launched the Managing for

Growth program, which is a strategic plan that provides the company with a blueprint for growth and development from 2003 to 2008. This strategy builds on the companys strengths and addresses the areas where further improvement is considered both desirable and attainable. HSBCs core values are
10

integral to its strategy, in communicating them to customers, shareholders and employees, and comprise an emphasis on long-term, ethical client relationships, high productivity through teamwork, a confident and ambitious sense of excellence, being international in outlook and character, prudence, creativity and customer-focused marketing.

Moreover, there are eight strategic imperatives included in the plan of HSBC in accordance to their global development strategy. Their first imperative is their brand, by making HSBC and its hexagon symbol one of the worlds leading brands. The second imperative is their Personal Financial Services, which drive growth in key markets and through appropriate channels. The third one is Consumer Finance, which is extending the reach of this business to existing customers through a wider product range to penetrate new markets. The fourth imperative is Commercial Banking, making the most of HSBCs international customer. Fifth imperative is Corporate, Investment Banking and Markets. The sixth one is Private Banking, which aims to serve the companys highest value personal clients around the world. The seventh imperative is the People, for attracting, developing and motivating the employees of HSBC, leads to rewarding success and rejecting mediocrity, and lastly, the companys Total Shareholder Return or TSR.

Fundamental Operating Strategy Customer-driven company that stay close to customers International teamwork Strong capital and financial position Conservative, sound risk management Disciplines expense control Ethical behavior, observing the letter and the spirit of rules and regulations

Customers remain at the center of HSBC strategic policy having a specific strategy for each of the five worldwide customer groups. In addition, HSBC position as the worlds local bank enables to approach each country uniquely, blending local knowledge with a worldwide operating platform.

11

HSBC Strategy is focused on Customer Groups. Such groups comprises the Personal Financial Services (PFS) including HSBC Premier, Consumer Finance (CF), Commercial Banking (CMB) including Small and Medium-sized Enterprises (SMEs) and Middle Market Enterprises (MMEs), Corporate, Investment Banking and Markets (CIBM), and Group Private Banking (GPB).

HSBC is continuing to enhance certain products which are core to customer group offering. Customer Proposition will be calibrated along a spectrum of strategic advisory relationship between Corporate, Investment Banking and Markets, and Group Private Banking. Premier International sets an example of enhanced personalized banking. The brand has been already a great success and HSBC is continuing with the next phase. The brand is now sufficiently strong that can accommodate brand variety at customer, product and even country level as and when required by the business model. Reputation is the key element of the brand proposition and cannot be overstated. HSBCs policies for corporate and social responsibility are part of the brand. HSBC will treat employees with the same values as treating with

customers. Managing costs strategically will greatly help in achieving maximum efficiency and flexibility. HSBC independent credit function has an excellent track record in a testing environment. The substantially increased size of the Group means that it is imperative to invest fully on people. The management of Group talent is at the heart of the Groups competitive advantage and needs to be strengthened. Graduate recruitment will remain central to the growth of talented people aligned to the Group character.

8.

SWOT of HSBC

Strengths The bank is well capitalized and this has enabled it to perform relatively well against other banks in recent economic events. The level of capitalization means that, going forward, the bank is unlikely to need to borrow from the UK government: this will enable it to retain more autonomy.

12

 The bank has a strong presence in emerging markets, putting it in a good position to take advantage of future growth in those economies. The banks global presence in Europe, Asia and South America helps to spread risk and offers significant economies of scale. Despite rebranding relatively recently (1999), the HSBC brand has become well established and is considered particularly valuable within the industry.

Weaknesses HSBC associates itself strongly with investment in the small business sector, but the current economic situation has led to increased risks, potentially compromising the activity levels in this area of the operation. The bank was involved with sub-prime markets in the US and has had to write off Large figures lent to high-risk borrowers. Despite falls in the UK interest rate, HSBC has increased its mortgage rates. This may be perceived negatively by borrowers and potential borrowers, adds pressure to an already depressed housing market and could ultimately lead to more defaulting as borrowers struggle with higher repayments. A redundancy programmed announced recently may affect morale among staff, Leading to decreased production and loyalty. HSBCs branding emphasizes its global presence, and this may be seen negatively by some customers in its implication of homogenization and lack of personalization.

Opportunities HSBCs high level of capitalization places it in a strong position to acquire assets Banks finding trading conditions particularly difficult at present may be available at low cost. HSBC also has adequate capital to purchase stronger banks such as Bank Economic in Indonesia, in which it has purchased a stake to continue its Asia expansion despite challenging economic times.

13

 HSBCs generally strong position presents the opportunity to outperform competitors during the economic downturn and to build a reputation for being one of the safer banks for depositors, helping to increase resources for lending. Negative press coverage of competitors such as HBOS may encourage customers to choose HSBC instead.

Threats Trust in banks has decreased due to financial losses suffered by investors, who May be more inclined to invest elsewhere. Financial losses affecting banks and investors on a global scale have resulted in less credit being available to customers. In the UK this is coupled with increases in living costs resulting in less money being saved. The falling property market has created a rise in numbers of homeowners with negative equity. If a property is worth less than was borrowed to finance its purchase, there is little likelihood that the bank will recoup all its losses if owners default. Claims have been made that HSBC has understated losses resulting from US sub prime markets, and this could undermine confidence in the bank

9.

Problem Area, Investigation and Understanding of the Problem

1) There were no e-banking to serve the customers efficiently mostly who are longdistance customers; 2) Manual banking system was time consuming so the bank started looking into consideration to use latest technology for banking i.e. e-banking; 3) There could be a risk of virus attack and to make an alternative or to save the information, there is a need of back-up-system; 4) Some other Problem Area: a. Technology: The new systems that are used by the HSBC bank, staffs may not be well capacitated. There may be new problem related system failure, old and new system match, security
14

b. Management: Recruitment of new staffs who are well knowledgeable on the latest electronic system. Cost of operation and management of the system and system related aspect. If there were poor management, then the system can fail c. Organization: Security of the information and security of the customers profile;

Investigation and Understand the program:

In regards to the technology and its operation, the company (here HSBC) must have back files. In regards to the management: To organize a test-run and hire external to build the capacity of the staffs. In regards to the organization, we must have human resources and enough skill to support or carry out the work. Section III: Environment Analysis of HSBC 1. Business Driving Forces

The Intensity of Rivalry There have many rivals in the banking and financial sectors. HSBC used efficient strategies to ensure its leadership position in the market among rivalries. In additions, due to the capabilities of other rival companies, HSBC develops strategic plans to make sure that they are always be the number one choice of their customers in banking and finance industries. However, during the current financial crisis, some of banks went to liquidation, such as leman bother.

The Threat of Entry With the potentials of having high profits in this kind of industry, HSBC is subject to several threats of market entry. Such as, Tesco, UK largest super-market consider to entry into banking industry. The threats of these new entrants sometimes make or break an organization like HSBC. In this regard, HSBC has been able to establish some entry barriers to ensure that their competitive advantage. The company also uses strong branding images to make sure that their customers will remain loyal to them.
15

The Threat of Substitutes HSBC is also aware that their competitors will provide new product s and services in the future. The threat that these substitute products gives to HSBCs profitability allows the company to work hard to sustain its position. Through the strategy of HSBC in focusing on four different customer segments, the company has able to provide needs of each customer group which lessen the impact of other substitute products.

Bargaining Power of Buyers Accordingly, the buyer power is noted to be one of the two important forces which affect the occupation of the value established by an organization. Herein, the vital determinants of this force include the size as well as the customer concentration. It can be said that HSBC has been able to manage their customers effectively which allows the company to gain customer loyalty and satisfaction. The strategy used by HSBC enables them to become the world leader in banking and financial sector.

Bargaining Power of Supply

It is said that supplier power reflects to the buyer power. In this regard, the analysis of this force commonly focuses on the significant size and concentration of suppliers which is also relative to the competitors. It also focuses on the degree of differentiation in the materials being supplied. It can be said that HSBC ahs the ability to charge their target markets different prices in accordance with the differences in the price formulated for each of the buyers. This usually implies that the audience is described by high supplier power.

16

2.

Major Products / Services

There are several products and services that HSBC Bank over to its customers throughout the world. The major products are as follows:

a) Finance and Insurance, b) Consumer Banking, c) Corporate Banking, d) Investment Banking, e) Investment Management, f) Global Wealth Management, g) Private Equity, h) Mortgages, i) Credit Cards,

HSBC Private Bank HSBC Private Bank is the group's private banking operation, providing private banking and trustee services to wealthy individuals and their families worldwide. The Private Bank has in excess of 60 offices worldwide, with the major centres being Miami, New York, London, Geneva and Hong Kong. There are different services or products offered to individuals and their families throughout the world.

HSBC Premier HSBC Premier is the group's premium financial services product. The exact benefits and qualification criteria vary depending on country, but typically require deposits and investments of at least $100,000, 50,000, or 100,000. Alternatively those who have an individual annual income of at least 100,000 paid into their HSBC Premier Bank Account and are a customer of the bank's Independent Financial Advisory Service. Customers have a dedicated Premier Relationship Manager, global 24 hour access to call centres, free banking services and preferential rates. A HSBC Premier customer receives the HSBC Premier services in all countries that offer HSBC Premier, without having to meet that country's qualifying criteria.

17

HSBC Advance HSBC Advance is the group's product aimed at working professionals. The exact benefits and qualifications vary depending on country, but typically require a transfer of Salary of USD 1,500 or more every month or Maintain USD 25,000 of deposits in a Savings/Current Account or investments. Advantages include and may vary depending on country this include day-to-day banking services included but not limited to Platinum Credit Card, Advance ATM Card, Current Account and Savings Account. Protection plans and Financial Planning Services. A HSBC Advance customer enables the customer to open accounts in another country and transfer their credit history.

HSBC Bank International HSBC Bank International is the offshore banking arm of the HSBC Group, focusing on providing offshore solutions and cross border services

to expatriates and migrants. It provides a full range of multi-currency personal banking services to a range of customer segments, including a full internet banking and telephone banking service. Sometimes referred to as "HSBC Offshore", the business also offers independent financial planning, and has representative offices all over the world, often working alongside local HSBC operations in those regions.

HSBC Bank International originated from the business started by Midland Bank and is based in the Channel Islands with further operations on the Isle of Man. Its operations in the Channel Islands are centered around its registered headquarters on the seafront in St Helier, Jersey. Named 'HSBC House', the building comprises departments such as Premier, Global Funds & Investments, e-Business and a 24 hour 'Direct Banking Centre'.

HSBCnet HSBCnet is a global service that caters to local business needs by offering specialized functionality for different regions worldwide. The system provides access to transaction banking functionality ranging from payments and cash management to trade services features as well as to research and analytical content from HSBC. It also includes foreign exchange and money markets trading functionality.

18

The system is used widely by HSBC's high-end corporate and institutional clients served variously by the bank's global banking and markets, commercial banking and global transaction banking divisions. HSBCnet is also the brand under which HSBC markets its global e-commerce proposition to its corporate and institutional clients.

HFC Bank (UK Operation) is a wholly owned subsidiary, with 135 High Street branches in the UK selling loans to the "sub-prime" market. During 2007 and 2008, it has been trying to fend off a union recognition campaign by the Trade Union Unite.

HSBC Direct HSBC Direct is a telephone/online direct banking operation which attracts customers through mortgages, accounts and savings. It was first launched in the USA in November 2005 and is now available in Britain, Canada, Taiwan, South Korea and France. Poland is launching business direct in September 2009. In the US, HSBC Direct is now part of HSBC Advance.

2.

Project Objectives To create and introduce financial protection solutions for all Thailand. To leverage on HSBC Bank and corporate customer base to market its products by complementing the Bank's full range of financial/banking solutions. To access the full market by establishing partnerships with financial and other institutions. To build an innovative full company that will offer international standards with local characteristics using best practices and building on the HSBC Group's global activities.

The Company's corporate objectives are:-

3.

Alternative Solution and Feasibility Study

While undertaking the new initiative to include the electronic banking, the HSBC should have thought not only on the software but of the some other aspect of Management Issues

19

which could be termed as alternative solution. Though this is part of the of the information technology infrastructure. They are as follows: a) Dealing with platform and infrastructure change: Firm using mobile computing and clued computing platform will require new policies and procedures for managing these platforms. It also needs scalability which refers to the ability of a computer, product, or system to expand to serve a large number of users without breaking down. b) Management and governance: It is a long standing issue among information system managers and CEOs have been looking into. c) Managing wise infrastructure investment on staffing, software, hardware and relevant customers knowledge. Need to think about the total cost of the inclusion of IT and total cost of ownership; and competitive forces model for IT infrastructure.

4.

Risk & Risk Management of Internet Banking

Internet banking risks can adversely impact on an institutions earnings and capital. Therefore, an institution offering Internet banking services is required to implement proper and effective policies, procedures and controls to protect information and ensure its integrity, availability and confidentiality. To assist institutions to properly identify, quantify and manage risks associated with Internet banking, it is recommended that such risks be categorized as follows:

Strategic risk

Strategic risk stems from inappropriate business decision and/or incorrect implementation of decisions. An institution may incur substantial loss/wastage of its resources as a result of incorrect choices or decisions regarding its Internet banking strategy. The institution should conduct a feasibility study prior to initiating on Internet financial services.

Transaction risk

20

Transaction risk results from flaws in system design, implementation or ineffective monitoring leading to frauds, errors and failures to provide banking products and services; To control transaction risk there is need for adequate security and monitoring of the Internet banking system. An institution must have in place preventive and detective

controls to ward off its Internet banking systems from any unauthorized use, both internally and externally. Adequate operating policies and procedures, auditing standards, effective risk monitoring processes including contingency and business resumption plans should be implemented.

Compliance risk

Compliance risk arises from failure to observe laws, rules, and regulations, prescribed practices or ethical standards when delivering Internet banking services. The Internet banking service should be designed and operated in such a manner that it always complies with all relevant laws and guidelines. Every institution should state clearly in its Terms and Conditions for Internet Banking Services and on its website that the governing law is the Mauritian law.

Reputation risk

Reputation risk occurs when systems or products do not work as expected and cause widespread negative public reaction. Internet banking systems that are poorly executed would present this risk. An institutions reputation may also be affected if its Internet banking system is unreliable or inefficient or the products and services offered are not presented in a fair and accurate manner. Adverse public opinion may create a lasting, negative public image on the institutions overall operations, which may impair the institutions ability to establish new relationships or services or continue servicing existing customers and business relationships. An institution should undertake immediate and effective remedies to address operational failures or unauthorized intrusions and ensure that timely steps are taken to address adverse customer and media reaction.

21

Traditional banking risk

An institution offering Internet banking services is faced with the same types of traditional banking risk such as credit risk, interest rate risk, liquidity risk, price risk and foreign exchange risk. The Internet may, however, heighten some of these risks. An institution providing Internet services should therefore develop appropriate and adequate systems to manage the various types of traditional banking risks and maintain those systems on a regular basis.

Risk Management Framework

Formulation of a policy

The development of Internet banking widens the scope for increased interaction between institutions and their customers and opens up new avenues for cross-border banking transactions exposing institutions to additional risks. Many aspects of risks associated with Internet banking are neither fully discernible nor readily measurable. Accordingly, each institution should develop a risk management framework that is comprehensive enough to deal with known risks and flexible enough to accommodate changes. It should be subject to appropriate oversight by the board of directors and senior management. The sophistication of the risk management processes should be appropriate for the institutions level of risk exposure.

Role of Board of Directors The board of directors shall be the following: a. approve the Internet banking strategy of the institution to ensure that it is consistent with the institutions strategic and business plan; b. Approve contingency and business resumption plans that should be in place before an institution launches the Internet banking services. c. set the level of Internet banking risk and review, approve and monitor Internet banking technology related projects that may have significant impact on the institution;

22

d. ensure that the Internet banking systems are operated in a safe and sound manner, including the availability of contingency and business resumption plans; e. review and approve the information security policies; f. ensure that an adequate system of internal controls is established and maintained; g. ensure that qualified and competent persons at senior level are employed to identify, monitor and control Internet banking risks and that the effectiveness of the internal control system is monitored on a regular basis; and h. Carry out an active oversight of the management of Internet banking risk of the institution by regularly receiving comprehensive written reports identifying material risks. In carrying out the above responsibilities, the

board may engage the services of outside experts, as needed.

Role of Management The senior management should ensure that: a. The Internet banking products are consistent with the institutions overall strategic plans and the risks and ramifications of offering such products over the Internet are within the institutions risk tolerance; b. Necessary steps are taken to identify, monitor and control Internet banking risk and monitor the effectiveness of the internal control system; c. The Internet banking system is designed and operated in a manner that with all relevant laws. Senior management should also monitor developments and changes in consumer and banking laws, regulations and interpretative rulings and take adequate measures to comply with them; d. The overall effectiveness of the institutions internal controls is continually monitored. There should be a proper system to track and report internal control weaknesses for prompt corrective measures; e. Adequate operating policies and procedures, auditing standards, effective risk monitoring processes, contingency and business resumption plans are available;
23

f. Adequate and comprehensive reports are provided to the directors for decision making; g. Adequate expertise and resources are available to operate and maintain their Internet banking system; and h. Effective channels of communication are established so that the employees are fully aware of policies and procedures affecting their duties and responsibilities, including a clear delineation of lines of authority and responsibilities for managing Internet banking risks.

Security policy

Each institution shall establish a written policy on the overall security of its Internet banking system.

Security Requirements

Each institution must have a security program providing for the security arrangements which should achieve the following objectives. a. Data privacy and confidentiality. b. Data integrity. c. Authentication/identification of counterparties. d. Non-repudiation of Internet banking transactions. e. Access control/system design to prevent unauthorized access attempts. f. Business continuity plan.

An institution must have the following minimum security controls. However, it is the institutions responsibility to ensure that its security controls are complete in the light of its specific circumstances. As such, it could have additional security controls.

24

Network and Data Access Controls

Each institution should apply adequate access controls to protect its network, applications and data from unauthorized parties.

Access controls should be designed to effectively restrict unauthorized individuals from entering sensitive data, retrieving confidential information or enabling access to bank software applications and operating systems.

User Authentication

Each institution should put in place tested systems to securely authenticate the identity of Internet banking customers when customers access personal account information or engage in on-line transactions for products or services.

Each institution should provide sufficient authentication for Internet banking customers who access personal account information or engage in online transactions for products or services.

The authentication processes should be reviewed and periodically tested for effectiveness through penetration testing and other monitoring methods. Senior management should keep abreast of new or developing standards which may affect the institutions existing use of authentication devices and processes. Each institution should use a combination of access, authentication and other security controls to create a secure and confidential Internet banking environment. These generally include passwords, firewalls, and encryption.

Transaction Verification

Each institution should implement Internet banking agreements which clearly define the procedures for valid and authentic electronic communications between its customers and itself. The agreements should specify that the parties intend to be bound by communications that comply with these procedures.
25

Each institution should maintain audit trails of all transactions to enable the verification of specific transaction and provide evidence in the event a transaction is repudiated by its customers.

Virus protection

Senior management should implement a detection and prevention program to minimise the possibility of computer viruses. This program should at least include end-user policies, training and awareness programs, virus detection tools and enforcement procedures.

Detection of possible intrusions

Each institution should make effective use of monitoring tools to identify vulnerabilities of its Internet banking system and in a real-time mode, detect possible intrusions from external and internal parties. In this regard, each institution is required to conduct

penetration testing and administer manual or automated intrusion detection processes.

Penetration testing

Each institution should use penetration testing to identify, isolate, and confirm possible flaws in the design and implementation of passwords, firewalls, encryption, and other security controls. The testing should be conducted by an objective, qualified, internal or external source prior to the introduction of Internet banking and at least once a year or whenever substantial changes are made to the Internet banking security systems.

Intrusion Detection

Each institution should set up strong intrusion detection devices to control network traffic on a real-time basis. The intrusion detection system must withstand outside attacks and be capable of identifying and reporting departures from normal processing. Adequate audit trail mechanisms should be in place to prevent internal fraud, and provide the means to detect unauthorized intrusion or transactions.
26

Each institution should ensure that it has a combination of regular monitoring of network activity, a well-configured firewall, and regular reminders of its security policies. The institutions security policy should make it incumbent on its responsible officers to report security breaches promptly to a nominated member of senior management and to the Bank of Mauritius.

Internet banking security program

Institution shall establish a written policy on the overall security of its Internet banking system. Each institution shall further implement an overall security program which should incorporate the institutions risk management controls. The security program should set out the policies, procedures and controls to safeguard the institutions information, define individual responsibilities, and describe enforcement and disciplinary actions for noncompliance. The security program should establish the necessary organization structure and accountability in the process of the management of risks associated with Internet banking. The need to create awareness throughout the organization that security is an important cultural value should also be ingrained in the security program. Every institution should ensure that adequate training is provided to the relevant staff to keep them updated on new security risks and methods of mitigating such risks.

Senior management should carry out regular security risk assessments to track down internal and external threats that may undermine data integrity, interfere with service or result in the destruction of information. Every institution should establish specific reporting requirements for security breaches. Senior management should ensure that the security measures instituted are current and properly implemented and comprehensive security policies and procedures are stringently enforced.

An institution should adopt a security awareness program to give users a clear understanding of the procedures and controls necessary for a secure environment. This security awareness program should strengthen the institutions security policy and program and may include, for example, instructions regarding password protection, Internet security procedures, user responsibilities and employee disciplinary actions.
27

Contingent and Business Resumption Plans The contingent and business resumption plans should be approved by the board of directors prior to the launching of Internet banking services. They should include measures covering data recovery, alternate data processing capabilities, emergency staffing and a public relations and outreach strategy to respond promptly to customer and media reaction to system failure and unauthorized intrusions.

Outsourcing Each institution may outsource its Internet banking systems to resident and non-resident (i.e. located outside Mauritius) service providers and software vendors subject to the prior written approval of the Bank of Mauritius and the following conditions:

The decision taking function of an institution should remain with it and the process to be outsourced should not threaten its strategic flexibility and its process control;

The image, integrity and credibility of the institution should not be impaired by the outsourcing arrangement;

The institution should be able to manage risks associated with these new relationships; Appropriate oversight program should be set up to monitor the outsourcing vendors controls, condition and performance; and There should be adequate undertaking for regular servicing by the supplier. Each institution should continue to remain responsible for the performance and actions of its outsourcing vendors in relation to the services outsourced by the institution. Each institution should be aware of the privacy concerns and its obligations for any loss of control of customers information. Before contracting any Internet banking service, each institution should fulfill the following conditions: The institution should perform sufficient due diligence to satisfy itself of the outsourcing vendors expertise, experience and financial strength to fulfill the obligations; The written approval of the Board of Directors should be obtained to outsource the Internet banking system to the service provider or software vendor; The ownership and control of bank records should remain with the institution;

28

The institution should enter into a service agreement with the outsourcing vendor with a clause on professional ethics and conduct in performing his duties. It should be clearly stipulated in the service agreement that it reserves the right to terminate the services of the outsourcing vendor if it fails to comply with the conditions imposed. The service

agreement should also clearly delineate the roles, responsibilities and accountability of each party; The institution should carry out a risk assessment of such arrangements which should ensure that adequate back-up arrangements such as alternative service providers are available; The institution should have the ability to exercise the necessary control to properly manage the outsourced system for providing the Internet banking services;

Customer Protection and Privacy Issues Customer Education Each institution should have a web page to educate customers on Internet banking particularly, with respect to their rights and responsibilities and the protection of their own privacy on the Internet. Prior to the offering of Internet banking services to their

customers, each institution is required to ensure that it has complied with the following: The customers have agreed to the terms and conditions for Internet banking services; The customers have been informed of the risks involved in the use of the Internet banking services ; The customers know their rights and responsibilities and are fully aware that they are responsible for their own actions; The customers have been informed that they may specify maximum limits for funds transfer to limit their risks; The customers have been advised to read the privacy policy statements of the institution and third parties (refer to 13(ii) Website links) prior to providing any personal information to the institution or third parties; and The customers have been educated on their role to maintain security of their personal information by not sharing their IDs and passwords with anyone, by changing their passwords regularly, and by remembering to sign off. Product Transparency Each institution should ensure that the products and services offered on the Internet are fairly and accurately disclosed. The features of the products and services, terms and 13conditions including any fees, charges, penalties and relevant interest rates should be made transparent to the customers in plain language as far as possible. Any agreements or contracts should be made available in a form, which can be downloaded, printed and retained by a customer.
29

Client Charter on Internet banking Each institution offering banking products and services over the Internet should have a Client Charter on Internet Banking. The Client Charter should at the minimum state the institutions commitment towards ensuring safe operations, privacy of customer information, reliable and quality services, transparency of products and services, and prompt response for enquiries and complaints. The Client Charter must be prominently displayed in the institutions website.

Privacy Policy Each institution should adopt a privacy policy which explicitly lays down its commitment to safeguard the privacy of customer personal information. The privacy policy statement must identify the types of information the institution collects about customers and how the information is used; provide a brief description on the kind of existing security procedures that are in place or clearly state that sufficient safeguards have been put in place to protect the loss, misuse or alteration of information under the institutions control including restricting employee access to information, including that respecting a customer who has terminated his relationship

Section IV: Financial Analysis of HSBC

1.

Decision Making Process

1. Financial services giant using data analytics software 2. 3. 4. 5. To help process credit applications Banking group HSBC is rolling out technology across the globe To improve decision making processes when giving customers credit HSBC signed a contract with data analytics firm Experian

6. and will use the firm's software 7. 8. 9. To improve credit application processing The Strategy Management software will be used by the HSBC To apply scoring models and judge the risk

10. associated with lending money to each individual 11. HSBC will deploy the rules engine software in 22 countries
30

12. It expects to make more than 50 billion customer 13. Lending decisions a year using the Experian-Scorex technology.

2.

Various Financial Analysis

Comparative Table of Net Assets At 31 March 2009 Adventurous USD At 31 March 2010 At 31 March 2011

Net Asset Value per Share

Class A Total Net Assets Balanced USD Net Asset Value per Share

0.863 56,090,862

1.284 76,151,617

1.436 73,297,230

Class A Total Net Assets Cautious USD Net Asset Value per Share

1.024 124,763,563

1.425 162,633,829

1.566 158,051,474

Class A Total Net Assets Multimanager Premium EUR Net Asset Value per Share

1.300 58,666,253

1.611 73,169,921

1.724 71089445

Class A Class E

8.428 8.365

9.695 9.619

10.101 9.992
31

Class I Total Net Assets Absolute Return (EUR) Fund EUR Net Asset Value per Share

8.517 38,614,094

N/A 21,291,765

N/A 17,337.299

Class AC Class AD Class EC Class ZC Total Net Assets

7.661 N/A N/A N/A 43,39,641

8.867 N/A 8.856 N/A 25,918,73

9.334 9.334 9.300 9.417 48,082.96

Note: N/A indicates that at the time of the report the share class was inactive. Financial Performance of 2010: Revenue US$ 98.918 billion (2010)

Operating income

US$ 19.037 billion (2010)

Profit

US$ 13.159 billion (2010)

Total assets

US$ 2.454 trillion (2010)

Total equity

US$ 147.667 billion (2010)

Employees

295,995 (2011)

Key Figures as at 31 March 2011 Adventurous USD Balanced USD Cautious USD Multimanage r Premium EUR
32

Class A Numbers of shares Outstanding Net Asset Value per Share 10.101 1.436 1.566 1.724 51,057,133.16 1 100,904,121..37 1 41,226,519.14 3 9,209.053

Note: N/A indicates that at the time of the report the share class was inactive. Advantages: Cards that take you to different places: When you travel to different places, you need a credit card that is flexible and available everywhere. Credit card companies HSBC Premier has been recognized for more than 24 million companies worldwide credit card, HSBC Premier is no limit on credit. There is no membership fee. And support. Usage patterns of your life with a list of awards. Things that can cause fatigue, Liven up immediately.

The advantage of HSBC Premier credit card companies include The list of winners in the local level; this will enable you to enjoy shopping. Fine dining, enjoy the entertainment, Local and global experience. Credit emergency cash to 2000 U.S. dollars; And a new card the next day when you're lost or stolen card. Wild card for you or your child with emergency assistance. The credit limit that you control. Emergency services around the world. If credit card companies HSBC Premier MasterCard is lost, One +1-314-2756781. (Telephone collect call), we will cancel the card immediately and I will issue a replacement card within the next addition. We can also provide emergency cash to you before you get a new card. You can choose to receive cash in an emergency from 245,000 in 200 countries.

HSBC BUILDS ASIAN EQUITY TEAM TO DRIVE BUSINESS GROWTH

33

HSBC announced a series of new appointments across its equity functions within Global Markets in Asia Pacific to drive business growth within the sector.

Chetan Patni was appointed Managing Director, Head of Execution and Sales Trading, in India. Mr. Chetan will be jointly responsible for HSBCs Indian equities business with Haresh Shivdasani, Managing Director, Head of Equities. Mr. Chetan reports to Rakesh Patel, Managing Director, Head of Equity Sales and Trading, Asia Pacific. Prior to joining HSBC, he was an Executive Director at J.P. Morgan India.

Gerardo Pablo joined the Bank as Head of Program Trading for Asia Pacific from BNP Paribas Where he was Head of Global Portfolio Trading, Asia-Japan. Mr. Pablo will be responsible for managing and executing Program Trading in the region. He reports to Gavin Williamson, Head of Execution Trading, and Asia Pacific.

Alex Lupis was appointed Head of Corporate Access, Asia Pacific. He will be responsible for managing and marketing HSBCs Asia Pacific Corporate Access products globally and reports to Mr. Patel. Mr. Lupis was previously Head of corporate Marketing City.

Sung Choi was appointed Head of International Equity sales. Based in Korea, Mr. Choi will be responsible for managing the distribution and sale of Korean equity products to institutional Investors in Asia, the US and Europe. He reports to Chehee Han, Managing Director, Head of Equities in Korea. Mr. Choi was previously a Vice President at Morgan Stanly.

Also joining the equity team as Directors of Equity Sales in HSBC Singapore are Michael Gilmore and Sujit Sahgal. Mr Gilmore worked as Managing Principal at 3 Degrees Asset Management, and prior to that was a ranked regional consumer and media analyst at UBS and Nomura. Mr Sahgal served as an Executive Director at Bank Sarasin and was previously a ranked regional tech/telecom analyst at UBS. They report to Roland Wee, Head of Equity Sales, locally.

34

Eligibility Individuals aged 20 years or above and residing in Thailand Existing HSBC current or savings account holders.

3.

A Recommended Solution Vs Business Justification

Since its creation in 1998, over 80% of Business Force-endorsed candidates have won elections. Each election year, candidates and elected officials from throughout our region eagerly seek the coveted Business Force endorsement. Until now, each business person has had to go it alone in conducting time-consuming independent research to properly evaluate state and local candidates or issues in our region.

Section V: System Development Process and Requirement Analysis

HSBC SOFTWARE DEVELOPER COMPANY AND OWNER HSBC Software Development (India) Private Limited (HSDI) Develops softwares, mainly banking, for the group. HSDI based in Pune is one among the 5 such centers worldwide. They also have data processing centers at different points in India for the effective data processing for the group.

NAME OF SOFTWARE USED BY HSBC: Bottom-line preferred supplier of BACS software to HSBC corporate Clint Bottom-line Technologies (NASDAQ: EPAY), a leading global technology provider of financial Business Process Management (fBPM) software and managed services, today announced that it entered into an agreement with HSBC Bank to become the sole supplier

35

of HSBCs branded BACS-IP desktop software. In addition Bottom-line will be the preferred supplier of BACSTEL-IP solutions to the Banks corporate clients.

HSDI (HSBC software development in India) Automated Software Testing Tool: HSDI follow these automated software testing tool after develop the software Test Complete is a full featured automated testing tool for creating and running software tests, which can make your testing faster, more reliable and save you money. Software Tests with Test Complete Keyword-Driven testing Functional testing Unit testing Data-driven testing Manual testing Web/Ajax testing Script-Based testing .NET and WPF testing Regression testing Distributed testing Java testing HTTP Load testing

HCBC SEURITY TOOLS HSBC online bankers free security software: HSBC is providing free software for online banking customers to help protect them from hackers.

HSBC's new OTP security device for online banking customer, HSBC Bank is sending its personal internet banking customers a new One Time Password security device that will add an extra layer of security when accessing their accounts online, helping to protect their identities and reduce fraudulent attacks. The HSBC Secure Key generates a unique PIN code each time a customer logs on to their online banking accounts and does not require a bank card to be inserted into the reader.
36

HSBC sees the rollout as part of its wider responsibility to protect its online banking customers however, following on from earlier initiatives distributing several free pieces of online AV software from McAfee over the last year and providing the Trustee Rapport software free-of-charge to its customers, which also helps to protects customers when accessing accounts online but including payment transactions over eBay or similar sites. The Rapport system, which establishes a secure VPN-like tunnel between the customer and the bank or online e-commerce site, has been used on more than 115 million individual HSBC online banking sessions since its installation last year.

We are actually reviewing iPhones from a HSBC Group perspective and when I say that, I mean globally," HSBC's Australia and New Zealand chief information officer BrentonHush told ZDNet.com.au yesterday. Global banking giant HSBC is considering ditching the BlackBerry and adopting Apple's iPhone as its standard staff mobile device, a move that could result in an order for some 200,000 iPhones. HSBC has some 300,000 staff internationally. A decision to standardise on the iPhone on its corporate networks would likely lead to one of the world's largest iPhone orders. A decision on a piece of hardware like that would potentially be deployed, conservatively, to 200,000 people,said Hush. "You know, it's a big decision, especially when you have an existing fleet out there.But it's definitely something we are considering from a HSBC Group perspective," he said."We always explore the potential application of new technologies and this is no different."

HSBC Software Development Develops software's mainly Banking HSDI based in Pune is one among the 5 such centers worldwide as a cost saving measure HSBC is off shoring processing work to lower cost economies in order to reduce the cost of providing services in developed countries. These location take on works as DATA PROCESSING, CUSTOMER SERVICES, INTERNAEL SOFTWARE ENGINEERING at Pune (India), Hyderabad(India), Vishakhapatnam (India), Kolkata (India), Guangzhou (China), Curitiba (Brazil) and Kuala Lumpur (Malaysia)

REASON OF OUTSOURCING
37

QUALITY REPUTATION HSBC needed to move to a new technology platform and become more efficient The bank also wanted to be able to put more people on a job, if necessary, to get it done faster Here are some lessons that HSBC has learned from its outsourcing experience: Start small, and then build up. Customer involvement is crucial. Use a hybrid off shoring model. Build a sense of community. Quality is key. CHALLENGE To gain a greater understanding of customer relationships Position new products, improve distribution channels, and calculate total customer lifetime values. SOLUTION Trillium Software System Data Warehousing CRM RESULT An understanding of the total present and future value of each customer Enables HSBC to be more competitive the new system, with reliable data quality at its core, Provides accurate, more timely, and actionable information to decision maker.

E-Banking Security of HSBC

Rapport is a free piece of security software it is designed to complement your antivirus, anti spyware and firewall software making your use of Internet Banking more secure.

The software prevents data being intercepted by fraudsters even if your computer is infected by viruses or malware it protects your username, password and other sensitive login information. The benefit of the e-banking security software:

38

 Locks down your connection Safeguards your identity Built in protection for HSBC Protect other sites as well Easy install , Small footprint , Ahead of the game , Extra protection layer Its free 2. Principle and Techniques to Success

The Group's Business principles direct how our business strategy is expected to be implemented. They underpin the business conduct of all HSBC employees and the Group's Values and HSBC's reputation is based on adhering to these. The HSBC Group is committed to the following Business Principles: Outstanding customer services Effective and efficient operations Strong capital and liquidity Prudent lending policy Strict expense discipline

3.

Data Flow Diagram

Data flow chart of HSBC

Section VI: Way Forward

39

HSBC is obsessed with customer value and strives to be an "all-weather umbrella" to its customers, by adopting different strategies for different situations. It is rightly mentioned that The Global Local Bank for all nations. The world at present is facing a huge currency war. It is tough to maintain the income and ensures customers and shareholders profit at the challenges of US dollar and Euro crunch. HSBC is strong enough to maintain the growth and satisfy its customers. It is strong enough to manage the technology, overall management, and The major drawback of the internet banking is that the customers awareness raising and customers knowledge is yet to be develop. There is a training session is needed for this towards the customers.

Appendix: Goal of the Job: This Term Project aims to acquire in-depth competencies (knowledge, skill and attitude) of Bangkok based electronic / internet banking system of HSBC Bank through the all individual efforts.

Objectives of the Project: a) To study collectively the all the technological system of electronic banking system covered by HSBC Bangkok; b) To research the probable threat of electronic banking and security measures of HSBC Banking; c) To enhance the knowledge and skill of handling system of electronic banking of HSBC and similar type of system of other banking.

Some tasks to conduct this Term Project:

a) To search, share and know history and overall organizational profile of HSBC through internet; b) To search, share and know the overall external and internal environment of HSBC; c) To search, share and analyze the products that HSBC offers for the customers;
40

d) To search, share and analyze the e-banking offered by HSBC; e) To follow the reporting format given by the Course Instructor, Dr. Siriwong Kangsumrith and take his kind support and advice for presentation.

Conclusion: All the Term Paper assigned will be able to analyze e-banking system of any banking institution at the end of this Term project. Besides, they will be able to know the challenges and security measures for any e-banking system. This will also enable them to be confident to working in any banking institutions and build up strong career path. Most importantly, the sharing with the classmate will enable the personal upgrade to minimize the knowledge gap and be professional in facing any critical questions.

References
http://en.wikipedia.org/wiki/HSBC

http://www.hsbc.co.th/1/2/about-en retrieved Oct 9,2011

41