Stephen Freeman

This is how HSBC's regional chief operating officer Stephen Freeman explains the bank's view of its role in the Middle East. This has led to its recent thrust into the Egyptian market and has kept the whole bank moving forward since it changed its identity from the 'British Bank' more than two years ago.

A regular user of AMEInfo.com, Mr Freeman oversees all the bank's back office functions and is supporting the expansion of its Internet services.

'We will have this service phased out to all customers in the UAE by June,' he says. 'But what really excites me is that in three to five years we will offer M-banking from mobile phones. This will allow us to reach even more customers than through the Internet as there are a lot more mobile phones than PCs'.

'On the Internet service itself, it is not the standard product but our future ability to sell stocks and mutual funds and other services from the group that is most significant. All banks have to offer an Internet service these days, although our service is a particularly robust and secure. You have to keep maintaining an edge'.

At the same time HSBC has been expanding its wealth management services in line with its global strategy. And last year a new financial planning service contributed $10m of net fees. Such fee income is important to banks with interest rates now very low.

'But corporate banking remains our major strength in the Middle East and our split with retail banking is roughly 50:50,' says Mr Freeman. 'The traditional small and medium sized enterprises that were the backbone of BBME lending may be getting less important. But there is now more emphasis on multinationals and large family groups, offering transactional services such as trade finance and payments, cash management and securities services across the globe'.

Now advertising itself as 'The World's Local Bank' HSBC has enormous strengths as a worldwide group that separates its services from those of the regional banks. 'We focus on organizing around our customers and tailoring solutions through global relationship management systems, not pushing product,' adds Mr Freeman, a veteran of 21 years with HSBC.

The bank also has its own investment bank with internationally accepted custodial services, a unique offering in the region. And HSBC has assumed a leading position in the development of the local corporate bond market.

Meanwhile, HSBC has taken an immediate role in the promotion of the forthcoming Dubai International Financial Centre with senior executives already occupying key roles in the set-up organization. And the bank's senior management will move to a new building in the Dubai Internet City this time next year, a move decided before the announcement of the DIFC.

'We hope to see a more transparent and more clearly codified regulatory environment in the DIFC,' says Mr Freeman. 'There is a lot of wealth that could be managed from here, and also the DITC is attractive for the promotion of foreign direct investment and portfolio management. Time zones do matter and it is important to have a local provider, so we will be contributing full support to this project'.

It seems that the 'The World's Local Bank' is content to grow its Dubai base as part of its dynamic strategy in the region. And that HSBC will continue to develop its role as the Middle East's largest international bank.