As digital challenger banks expand their product suites, large players like HSBC are quickly evolving their digital offerings to attract and retain customers.  

The bank recently rolled out a digital personal loan product, a high-yield savings account and Treasury APIs to speed up payments for business clients. Later this year, the bank will launch a robo-adviser and new domestic and cross-border payments products, said Alvaro Teixeira, HSBC Bank USA’s executive vice president and head of customer value management, in an interview with Bank Innovation. He didn’t give specifics on the new payment features. 

“We put together a group to start thinking more about payments, not just locally but also internationally, because I think that’s where we have a competitive advantage,” Teixeira said.  

The new features are part of HSBC’s broader plan to create tailored customer experiences based on customer needs. According to Teixeira, the bank wants to go beyond demographics, instead to pulling in data from every aspect of customers’ relationships with the bank as a way to decide which products and services to offer them.

HSBC’s objective is to learn about customers’ lifestyles and goals through their banking data through which it can offer them relevant products and services. If a customer is spending a lot on travel, for example, the bank could offer the customers a credit card that provides points-based travel rewards. Teixeira said the bank wants to help customers plan for long-term financial goals like retirement by analyzing customers’ account and transaction data.

See also: HSBC launches digital personal loans using Amount’s tech

While bank wants to tailor product suggestions to customer behavior patterns, Teixeira emphasized that the bank wants to establish an ongoing relationship with customers. 

“I want to add value first, and then you’re going to be a trusted adviser,” he said. “That’s something financial institutions have been looking to do for the past 5,000 years since we existed. Now we finally have a shot because we have technology on our side that will help us.”  

The London-based HSBC has $2.7 trillion in assets. In a report HSBC commissioned last year, the bank echoed Teixeira’s goals and said the future of banking will focus on tailored, data-driven customer experiences instead of specific products. 

“The trend I’m most interested to learn about is this personalization of customer contact,” Teixeira said. 

Teixeira will present at Bank Innovation Ignite, which takes place from March 2-3 in Seattle, where he will offer further insights on the bank’s product strategy. Bank Innovation Ignite is an intimate forum that allows participants opportunities for one-on-one with banking and fintech industry leaders. Request your invitation here.