Acknowledging the Entry of New Players in Banking
Jorge Arce, President and CEO of HSBC Mexico, acknowledges the arrival of new digital players in the banking sector. He emphasizes that these new entrants are highly professional and skilled, but traditional banks like HSBC are not idle.
Competition as a Positive Force
- Arce’s Perspective: Arce views competition as beneficial, stating, “¡Qué bueno que nos compitan! Yo sólo puedo hablar bien de ellos, son muy professionales, pero tampoco estamos aquí rascándonos la barriga.”
- Learning and Adaptation: Arce believes that competition drives continuous learning and improvement, saying, “Estamos trabajando en algunas cosas, pero de que todos los días tratan de ganarme el pan (las otras entidades financieras), tratan.”
- Client-Centric Approach: He stresses that the focus should be on providing exceptional customer experiences, asserting, “Que el cliente tenga una experiencia sin fricción, de transparencia sobre lo que está comprando, a qué precios puede comprar fácilmente, que se vaya al banco que mejor servicio y precios le dé.”
The Role of Traditional Banks Amidst Competition
Arce highlights that traditional banks like HSBC are well-positioned to serve clients, offering a wide range of services and maintaining strong networks of branches and ATMs. He mentions HSBC’s advantages, such as access to branches, cost-free ATM networks, and partnerships like Multired for commission-free withdrawals.
Potential Client Migration
Arce anticipates that some clients of new digital players may eventually transition to traditional banks like HSBC. He explains that these clients might seek additional financial products, such as life insurance, investment options for retirement, or differentiated credit cards for rewards and travel benefits.
Defending Market Share
Regarding the new entrants’ focus on payroll services, a key area allowed by regulation, Arce acknowledges the potential threat but remains confident in HSBC’s position. He asserts, “Somos el mejor banco de nómina en México,” citing HSBC’s extensive branch network, cost-free ATM access, and strong presence in the payroll sector.
HSBC’s Overall Performance
Arce concludes by emphasizing HSBC Mexico’s strong performance, stating, “El banco va muy bien y a un banco grande le va bien si le va bien a sus clientes.” He reiterates that the bank’s success is intrinsically tied to its clients’ well-being.
Key Questions and Answers
- How does Arce view the new digital banking competitors? Arce sees them as highly professional and a positive force driving continuous improvement in the banking sector.
- What is HSBC’s strategy amidst competition? HSBC focuses on providing exceptional customer experiences, maintaining a strong network of branches and ATMs, and offering diverse financial products.
- Could new digital players take market share from HSBC? Arce acknowledges the potential threat, particularly in payroll services, but remains confident in HSBC’s position due to its extensive network and strong customer relationships.
