The new Merrill Lynch HSBC joint online banking and stockbroking venture continues apace, with three sites now live, and another two planned later this year. The organisations have joined forces to offer what HSBC chairman John Bond describes as 'the future of financial services' (but then he would, wouldn't he?) for private investors outside the US.
The integrated online banking and investment service, which is only available in the UK, Australia, and Canada at present allows investors to buy and sell shares from one online account, borrow against their portfolios, and hold cash accounts in multiple currencies, as well as providing the more traditional offline facilities. The sites also offer free access to research previously only available to institutions or corporate clients, to clients who open Merrill Lynch HSBC Investment Access Portfolio accounts.
Investment opportunities and limitations and banking services vary according to the legislation in place in each of the three country specific sites currently online, but each of the sites offers a substantial range of options for online and telephone trading.
There has been speculation that HSBC has not been expanding its own investment banking bid because it is eyeing a merger with Merrill, one of the world's lead underwriting firms, and the current joint venture has been described by one Hong Kong analyst covering the bank as: 'like a courtship. They are trying to get to know each other better to see if they can do something bigger.' Bond has denied that there is any agenda, however, beyond continued expansion and globalisation within the context of the project at hand.
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