HSBC attracts $3 billion deposits in one year, but is that good?
Jim notes the progress made by HSBC Direct with great statistics. Assuming typical high-yield balance levels of $8000 to $10,000 per account (our estimate), the bank has attracted more than $3 billion in deposits. The bank has marketed its 5%+ APR account heavily, so it’s not likely that the new business is making much of a profit contribution yet. Based on the bank’s reported online ad spending, its acquisition costs were $75 per account from the online spending only, not including what it spent in other media to support the direct business unit (see note 1). Source: NetBanker 2.0: HSBC … Continue reading HSBC attracts $3 billion deposits in one year, but is that good?
