Hsbc

frontera2_2

Hi, this question is purely out of personal curiosity - especially given I already bank with HSBC.

I notice that they only offer Credit Cards and Loans to existing HSBC Current Account holders. Why would this be, and doesn't this then limit their potential customer base and profit making opportunities? I don't understand why they wouldn't open up their lending products to all?

As I say, I'm just curious!

Olipro

no no, you're thinking wrong.

It means they get you to open a current account along with the credit card/loan/whatever.

CLAPTON

HSBC have made a strategic decision to go for 'quality' customers i.e. those than make them their major or only current a/c and so limit many of their other products to current a/c customers only. Indeed they limit many of their best deal to customers with premium current a/cs and not just any current a/c.

globalds

I'm sure I remember reading a post on here a while ago that stated that HSBC run their own internal credit scoring system ...Maybe for that reason.

97trophy

frontera2 wrote: »

I don't understand why they wouldn't open up their lending products to all?

As I say, I'm just curious!

They tried that in the US when they brought Household Bank. The result was they lost billions.

Quality not quantity counts in the long run.

adamc260

globalds wrote: »

I'm sure I remember reading a post on here a while ago that stated that HSBC run their own internal credit scoring system ...Maybe for that reason.

They do, you have an internal banking score based on many things including what cash points you use... overall it works out what products your eligible for

rb10

frontera2 wrote: »

Hi, this question is purely out of personal curiosity - especially given I already bank with HSBC.

I notice that they only offer Credit Cards and Loans to existing HSBC Current Account holders. Why would this be, and doesn't this then limit their potential customer base and profit making opportunities? I don't understand why they wouldn't open up their lending products to all?

As I say, I'm just curious!

Many banks do similar. Take Halifax; if you are a current account customer then you'll usually get a better deal than a non-customer would get. Their credit scoring systems also give weight to your existing relationship with the bank - so acceptance is more likely if you already hold accounts with them. Like HSBC, they are looking to get the higher quality customers who will open lots of financial products with the bank, and not just one.

globalds wrote: »

I'm sure I remember reading a post on here a while ago that stated that HSBC run their own internal credit scoring system ...Maybe for that reason.

Again, all banks will keep and look at internal data when choosing whether to grant credit.