Banking Value Chain

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After doing a bit of a research on the banking industry Value Chain (VC) I came across multiple references indicating that a generic VC for Banking is the opposite to the industrial VC (Figure 1 in the attachment). The Banking VC starts from the customer side, where the products are offered to the market, sold, provided to the customer and finally corresponding transaction is executed. I decided to look closely at one of our core businesses, Premier Consumer Credit, to evaluate activities within each of the VC components.

Premier brand was created 7 years ago and introduced to the top 5% of the most affluent and internationally mobile population of existing HSBC customers. It was also heavily marketed to the same type of the global population of potential customers. In the Figure 2 below I provided details of activities performed in support of the primary and support activities of the HSBC’s Premier Consumer Credit VC. I can definitely identify Customer Intimacy as one of the competencies driving this proposition.

Customer Intimacy – By creating the Premier brand HSBC strived to cater to a very specific customer type. Customer who travels extensively and has a need to posses accounts in multiple currencies in many countries. Customer who accumulated significant wealth and is willing to pay a premium for convenience, ease of transacting and being treated (recognized) as a Premier customer no matter what branch or country he is in. The Premier proposition was build around 4 basic offerings:

- International Recognition and support - Every customer should be recognized as a Premier customer wherever they are or travel in the world and receive the same high standard of service as they do when they are at home. - International services- a unique online service providing customers with a single view of their global HSBC accounts. - Credit Card and Mortgage - A Credit Card with an exclusive "HSBC Premier Privileges" rewards program and a wide range of...
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