Technology Hsbc Case Study

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Technology-HSBC Case Study March 10, 2012 Professor Shaw Argosy University How has the company chosen to improve its knowledge of customers and therefore its decision making? Analyze the management, organization, and technology dimensions of the solution. HSBC, as with other banks, took advantage of many poor consumers looking to own their own home. These consumers had low credit scores, are in default or have low income, which means there was a higher probability of them not paying back the loan. These banks took advantage by not explaining the entire process of how the amount will double and the interest rate will become adjustable after a couple years. This led to many subprime mortgage loan holders to not meet payments and…show more content…
When you have lenders not collecting the right information on consumers to help predict if they are able to pay the loan or not and not explaining the loan correctly to consumers, it causes conflicts. Consumers did not really understand the loans; they just knew they would become homeowners. Subprime loans are the worst, to me. Who wants to pay back 10 times what their home is actually worth? The new Experian-Scorex software will provide great value to HSBC’s strategy management. This new system will collect information and will help HSBC in their credit decisions. “George Lennox, Senior Manager, Group Credit and Risk at HSBC: "As one of the world 's leading financial organizations, it is important to us that we make use of leading edge decision support technology.” (Experian) By implementing this new technology, HSBC will better assist their new and existing customers. References Modell, J., 2008, The Impact of the Subprime Mortgage Crisis on European Banks, retrieved March 13, 2012 from
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