How do you build the bank of the future?

It's fifty years since microprocessors went into commercial production. In time, these small computer chips created tech giants. Now they power our digital world.

Yet for many industries, the starting gun has only just sounded on developing practical applications for potentially transformative technologies.

The banking industry is no different. The next waves of innovation will significantly change how we serve customers. Just as the pandemic moved more parts of our lives online – and my kitchen became my office – it has accelerated a shift to digital banking.

On HSBCnet, our main channel for business customers, downloads more than doubled and digital payments increased by over 250% last year. Better customer experience underpins this growth, which I am proud was delivered by colleagues around the world working from home.

So HSBC is a digital bank today. And we will become digital first – putting the power of our bank in every customer’s pocket.

Clients expect the experience they enjoy as consumers in the banking services they use professionally. That means changing how we think and how we work.

It also means partnering with innovative businesses. We are working with fintechs in a considered way – whether buying from, buying into, partnering with, or establishing our own. This approach builds on HSBC’s existing strengths through our international network and long-term customer relationships.

Our customers still want to interact with people, they still want tailored advice, and they still value a relationship based on trust. So it is the blend of technology with people that will set any bank apart.

For our people, this means a change in mindset. Embracing agile ways of working, learning new skills, within multidisciplinary teams including data scientists and user experience experts.

Not only is this a long way from the financial world in which I began my career, the innovation and challenges feel far more energising and exciting for graduates now entering finance.

Through our products, we want to make banking simple for our customers. We actively work with them to understand their needs and co-create fully digital experiences.

Global Wallet demonstrates our approach in action – a digital wallet allowing companies to pay like a local in multiple currencies across different countries and territories. It’s an example of where we are competing with fintechs, offering customers the speed and ease of a simpler payment process through their existing banking platform.

For small businesses in the UK, we recently launched Kinetic – an app-based account aiming to give precious time back to business owners. Beyond managing payments, they can also track where their money is going through spending and cash flow insights.

Over the last half century, the advancement of microprocessors can be glimpsed in our smartphones, with processing power now over 100,000 times greater than the computer that landed man on the moon.

Our challenge is now to put the power of our bank in customers’ pockets. Enabling them to manage their finances whenever and wherever they want.