What happened: HSBC is planning to add more than 1,000 new employees this year at its China technology development centers in Guangzhou, Shanghai, and Xi’an. The technology centers, which currently employ around 7,000, have become increasingly crucial to HSBC’s China and fintech strategy. The bank has been using its China centers to develop risk and fraud management technologies, mobile apps, and other technology products for its global markets. The European bank said it will invest up to $3.5 billion in its group technology operations annually over the next few years.
Why it’s important: The move comes as HSBC expands its operations in Asia, and more specifically, China. The bank is looking to ramp up its technology capabilities and offerings to improve its profits and has been eyeing opportunities in China, where fintech development and adoption is considered ahead of the curve. However, it has seen widening losses in retail banking and wealth management in China over the past year, which is exacerbated by the ongoing trade war.