HSBC to Compete with Citibank
// Now in Russia as well
Last week, British banking giant HSBC took first specific steps to enter Russia’s retail market. It introduced the position of banking retail director in Russia and appointed Chris Barry. Russian bankers believe HSBC will need an aggressive strategy to compete with Citibank and banks of such level. However, HSBC might need a large acquisition of a leading financial organization.
HSBC Holdings is among the top three major financial organizations in the world. In Russia, it is represented by its subsidiary, HSBC Bank (PP), which deals with affluent clients and investment business.
HSBC might purchase a large retail bank. However, bankers say it is difficult to buy a large bank now. Among the banks attractive for acquisition are Vozrozhdenie, Soyuz, and Russky Standart. Yet, some of these banks will not agree for an acquisition.
Experts say that if HSBC buys a large bank, it may compete with Citibank. For instance, Raiffeisen Bank went far ahead (its share in Russia is 1.6 percent now) after it purchased Impexbank. It will be hard to catch up with Raiffeisen. However, Citibank and HSBC, who compete in the world, may continue their competition in Russia as well.
Meanwhile, Citibank Vice President Natalya Nikolaeva said that “a bank needs no less than 3 years to build its own network, and if it acquires a Russian bank, the same amount of time will be required for culture and technology adjustment”. Besides, more time will pass while new brand becomes familiar to Russians.
Svetlana Dementyeva, Yulia Chaikina
All the Article in Russian as of Sep. 25, 2006
|
