Focused approach pays off in SME banking

Four months ago the HSBC Business Banking unit for the UAE moved into spacious new dedicated offices in ENOC House in the centre of Dubai. Such expansion is symptomatic of the tremendous growth the bank is enjoying in this segment. But why are so many SMEs choosing to come to HSBC?

'Since we launched the unit there has been a specific focus on the needs of SMEs to which HSBC never used pay enough attention before. The SME clients in the past were handled alongside big corporate customers and it is not hard to guess who got the priority,' explains Rakesh Arora, Manager of Business Banking UAE, one of the managers who set up the service.

'From the start we had the right resources to develop the unit, and the support and trust of the senior management in the SME proposition. It is in this context that we have been able to grow far faster than the SME segment itself in Dubai, which has been growing very fast.'

Clear advantages

Clearly HSBC has also hit the nail-on-the-head with the right service packages and financial solutions for SMEs. What are the most popular aspects of the bank's SME services?

'HSBC not only supports financing requests, but also helps its customers in structuring their requirements and providing solutions through its expertise in international trade and by leveraging its branch network. Dedicated teams of experienced staff look after the specific needs of customers and offer them packaged account services and multiple channels to access the Bank,' says Mr. Arora.

'We have also been far more focused in pursuing clients. Every prospective customer who visits the bank or indicates an interest in banking with us is followed up and a sales person is allocated who will then go to visit them to capture the business. This is a far more organized approach than in the past, and is symptomatic of the attention we will give the customers in the future.'

Regional role model

So successful is the UAE Business Banking model that this is being used as best practice for a roll-out of the service across the region. Dedicated managers are now in place in Bahrain, Qatar and Oman to develop services and products to suit the local markets.

'For this segment of customers, the HSBC name is also a strong brand to be associated with.' says Mr. Arora.

'When you are a SME having HSBC as your banker adds to your credibility, as for instance a letter of credit from HSBC has an extra value. Indeed, in an age of globalization having a universal bank like HSBC as your banker can make very good operational sense.'