HSBC one platform strategy pays for itself

HSBC's strategy to create a single technology platform is paying for itself mid-way through its implementation, said the bank today.

The One HSBC project , which has received $1bn investment this year, aims to roll out common computer systems across the bank's business units.

The project is two years into its implementation phase with completion expected in 2011.

"It is now paying dividends in excess of its costs," said Ken Harvey, chief technology and services officer at HSBC. "This project is aimed at improving customer experiences and it happens to have a significant cost advantage as well," he said.

The project will replace 55 separate core banking systems, 24 credit card systems, 41 internet banking systems and 40 desktop standards with the single One HSBC platform.

The bank has also reduced its datacentres from 130 before One HSBC to four pairs of datacentres.

One HSBC aims to improve customer services by giving the bank a single view of customers while reducing costs through streamlining IT and operations.

Harvey said for example that One HSBC could reduce the cost of running a card systems from tens of millions of dollars a year to millions.

The platform will also reduces the cost of setting up new banking operations. "We can move into a new market relatively easy," he said.

Harvey has gradually diverted more of the IT budget into the One HSBC project as work has progressed. In 2007 the bank spent about $650,000 on One HSBC and next year it expects to spend $1.2bn on the project.

The project, which links disparate systems, has allowed the bank to automate many of its services. "The cost of transactions can be measured in pennies," said Harvey. "By definition you do not need as many staff."

But he said the One HSBC project could help the bank secure more busienss, which could mean the bank will need to hire more people. "If customer numbers do not increase there will be reductions in staff," he said.

One HSBC will be complete with the migration of the UK operation to the One HSBC core banking platform. The UK will be last for the roll out because it is the biggest and most complex business for HSBC, Harvey said.

The bank merged the role of CIO and COO last month, as part of a strategy to make the bank technology-led.