HSBC - North America stands proudly as one of the leading financial services companies in the United States and work with the common goal of meeting the needs of more than 68 million customers. In the United States HSBC operates as HSBC Bank USA, N.A. and HSBC Finance Corporation. HSBC Bank USA, N.A. has more than 460 bank branches throughout the United States, with approximately 380 in New York State as well as branches in Connecticut, Washington D.C., Florida, New Jersey, Maryland, Virginia, California, Delaware, Illinois, Oregon and Washington State. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., an indirectly-held, wholly-owned subsidiary of HSBC North America Holdings Inc. HSBC USA Inc. is one of the nation's 10 largest bank holding companies by assets. HSBC Bank USA serves customers in the following areas: Personal Financial Services, Commercial Banking, Global Banking and Markets, and Private Banking. HSBC Finance Corporation is one of the largest consumer finance companies in the U.S. Its subsidiaries provide real estate secured loans, credit cards and private label credit cards, personal non-credit card loans, taxpayer financial services and specialty insurance products. The following are the primary businesses that make up HSBC Finance Corporation: Consumer and Mortgage Lending (CML), HSBC Credit Center, Card and Retail Services, HSBC Insurance, and Taxpayer Financial Services. As a company, HSBC had been in business for 150+ years. My career at HSBC was through its subprime subsidiary, Decision One Mortgage. I worked for the company at the headquarters in Charlotte, NC and then Fort Mill, SC. I was employed in the Post Closing department as a Loan Specialist. When I began my career at Decision One it had already been acquired by Household Finance. During that transition, no changes were made to Decision One’s culture or policies. However, once Household was acquired by HSBC and thereby Decision One it became evident some changes would occur. The need for HSBC to make changes within the Decision One unit was fueled by the fall of the subprime mortgage market. The losses being faced by its major competitors forced HSBC to reevaluate the decision to assume a subprime unit. Rather than state the obvious, the choice was made to make issue with the processes, perks and rewards in place at Decision One. The stated intended outcome for the changes HSBC made within Decision One was to keep the unit operational as subprime with the look of a traditional conventional unit. The real intended outcome was to phase out the unit altogether, which is what eventually happened. The downturn in the market made Decision One appear to be gangrene in the leg of the HSBC body. The Decision One unit was restructured to fit under the corporate Wall Street unit. This was an impossible situation. Decision One was built on subprime lending principles, procedures, and policies; the corporate Wall Street unit did not deal in sub prime. My evaluation of the change effort is that HSBC set their top company priorities as cost savings and imposing and enforcing their regulations on Decision One. They sent operations offshore, laid-off people, reduced perks and rewards, expected more output from each employee, and, did not value their Decision One employees as an asset. All of the changes led to a decrease in employee morale and inevitably a decrease in production. The problem started with the changes to the perks and rewards. Changes to the processes quickly followed. These changes became the beginning of the end for Decision One.
Assessment / Diagnosis
The HSBC philosophy is a combined policy of principles, values, core business principles, and business values. The company feels this achieved through loyal and committed employees who make lasting customer relationships and international teamwork easier to achieve. The following chart lists the main business principles and values in practice at...
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