How HSBC encouraged a vast number of people to become investors for the very first time.

HSBC run regular customer surveys. In 2020, though, one proved deeply revealing. Nearly 400,000 UK customers, aged under 35, had surplus money to save. But they were failing to make the most of their spare cash. At a time of rising inflation – just when they needed to maximise their assets – customers were losing out on valuable investment opportunities.

This insight triggered a decision to build an app that encouraged and empowered these people to save. A smart app so safe and simple to use that it has just won ‘The Banker’ award for ‘Best Innovation in Digital Banking 2023’.

This is the inside story…

All great apps begin – and end – with the customer.

Interestingly, HSBC already had a successful savings app. It is very popular with savvy investors in Asia. So, the temptation to import it and translate it to English was beguiling. But UK trials soon buried that dream. Mock-up apps, based on the Asian formula, were tested and there was an instant allergic reaction:

• Unlike the mature investment market in Asia, most investors in the UK are hardwired to be cautious.
• Fear of the unknown crippled confidence. Since apps cannot offer investment advice, novice investors became increasingly wary and risk averse.
• Financial literacy was another serious issue – people simply didn’t understand the instruments or the language of finance.
• Manoeuvring the ‘minefield’ of risk and compliance was also a major concern.
• And there were internal anxieties that a new platform might impact and damage HSBC’s global banking app.

Suddenly, an inspired idea had become a mass of complexities. To resolve them, HSBC called in Zuhlke – a team with an impressive track record of delivering for the bank. Together, they created something very special. Here are the milestones in their journey…

• Understanding customer mindsets, goals and pain points. What does the customer really need and want? To find the answer, Zuhlke segmented and researched three customer groups: total novice investors… the curious but inexperienced… and the savant investor community. It took 14 weeks of intensive research before a single line of code was cut!
• Mapping customer journeys to model a winning MVP. Research findings were mapped against current customer journeys to improve the entire experience. These service uplifts were then designed into the  initial MVP and subjected to the most rigorous testing…
• Test, test and test again – only trial removes error. Quantitative and qualitative research – ranging from large surveys to guerrilla testing – validated assumptions and research evidence with selected customer participants. Concentrating on agility and customer centricity, Zuhlke and the bank could then optimise the design of mobile services and delivery processes.
• The elephant in the room – Compliance. Here again, user testing with real customers – with a wide range of different needs and service expectations –  provided the vital insights. This is the only way to guarantee compliance, accessibility and consistent service quality.
• Content must be at the heart of a service. Content is key to education and awareness. It is the vital element in the success equation. This explains why Zuhlke and the bank worked so hard to ensure the right content was presented to the right customers at precisely the right stage in their journey. And finally, the investment of effort paid off…

Results

• HSBC UK has seen year-on-year growth with new investment business volumes increasing by 93%.
• With over 69% of customers opting to use it, this HSBC mobile app is now the undisputed channel of choice for launching investment journeys.
• Following the introduction of mobile investment journeys, HSBC surged from 5th to 1st place in the UK market for new investment accounts. Source: the 2023 IPSOS MORI report.
• The popularity of this new service has exceeded all expectations and fuelled further developments. For example, the recent launch of an investment dashboard allows customers to track their savings through the HSBC UK mobile banking app.

And the icing on the cake is to be recognised by your peers:

To learn more about Zuhlke’s award-winning work, please contact me for more insights and a personal introduction to this remarkable company

Robert Baldock:  07768 402131 or robert.baldock@clustre.net