From its meeting with CEOs and CFOs of 13 financial companies recently, HSBC has found there's a consensus that liquidity will ease only after April 2011; Basel III, IFRS are key variables for 2013; micro-finance losses are tangible; there are no worries over bribery cases or the 2G scam
HSBC has gathered from its interaction with the heads of several financial companies that the situation for banks may not be too good over the next 4-5 months.
Here are some consensus observations that emerged from HSBC's meetings.
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New Delhi: Back in the double-digit growth after two months, industrial output in October rose by 10.8% on back of healthy performance of sectors such as automobile, electronic goods and power, reports PTI.
Industrial production, which crossed 15% in July, dipped to 6.91% in August and further to 4.4% in September.
It again entered the double-digit growth figure of 10.8% in October, up from 10.1% in the same month a year ago.
“The present growth rate of IIP (Index of Industrial Production) shows that revival of economic growth that started a year back is continuing,” said Sriprakash Jaiswal, minister for statistics and programme implementation.
The government attributed the rise in IIP to improved performance of the sectors such as ship building, power equipment and generators.
Besides, Mr Jaiswal said high growth in production of consumer durable goods was mainly due to healthy growth in the production of passenger cars, motorcycles, scooters and mopeds, alarm time pieces and televisions.
The IIP data reveals that manufacturing sector during October grew by 11.3% and electricity generation by 8.8% from 10.8% and 4% respectively in the corresponding month last year.
The growth rate of the mining sector, however, decelerated to 6.5% during the month from 9.1% on October 2009.
The capital goods industry, according to data, recorded a growth of 22% in October, up from 10.9% during the same month a year ago.
During April-October, industrial output showed an increase of 10.3%, up from 6.9% during the corresponding period last year.
The HSBC Advance campaign for the so-called relationship banking tool, moves too fast to capture the joys of life’s progress
HSBC has launched 'HSBC Advance', the so-called relationship banking tool which targets the urban, young, loaded consumers. 'Who could you be tomorrow?' is the punch line. It apparently tries to appeal to the desperation of the new young to surge forward in life. And HSBC Advance promises to be the bank that looks after that booming dream of youngsters.
I watched two commercials on air that promote this idea. In one, a young man transforms from being single, to getting married, to becoming a daddy. And this megamorphosis is rendered in swift transitions (to bring out the 'can't wait' spirit of today's gen). The voice over reassures: "When your whole world changes, HSBC Advance can help your financial plans change too." In another one, the same thing happens. Here, a young suit goes from a lunch break to a career break. And of course, the promise that HSBC is right behind you to support your various breaks.
I know this is a part of HSBC's global campaign, but I have some serious issues with this work. On the first level, the strategic thought behind the communication: Relationship banking is the new buzz not just in the banking sector but in most financial services ads, including insurance and broking. It's such an abused concept, it now carries very little interest and credibility. In other words, it is not really a sound strategy to adopt any more. Two, even if the HSBC guys couldn't think of another route, the creative had to be unique and earth-shattering if the concept had to work. Sadly, the campaign falls flat in this regard as well. While the rapid life transition denotes speed, the whole story moves so fast, there's zero space left to capture the joys and emotions associated with life's progress. This treatment looks more like a lab experiment rather than a life situation. In short, the gimmicky stuff totally kills whatever possibility there was of making the ad breathe and strike a chord.
Finally, here's a warning for all financial services companies, and particularly for HSBC, who, I unfortunately bank with. Please get your product sorted out before you make 'relationship' promises to consumers. That's the fundamental principle of all marketing. Nothing kills a bad product faster than advertising. Are your staffers trained and skilled to deal with your fancy promises? Are their objectives in sync with the communication objectives of your organisation? I have always had the worst experiences with HSBC across their branches and cities. The staff is often demotivated, disorganised, disinterested and disdainful.
I don't know who I can be tomorrow. But right now, I am furious.