Regional PR expertise is the new global power move – just ask HSBC
By Madalena Thirsk, senior account executive at Aspectus Group
HSBC has taken the leapi. The global bank is scaling back its M&A and equity capital markets (ECM) operations in the US, UK, and Europe, opting instead to double down on its presence in Asia and the Middle East. This isn’t just a one-off restructuring, either. The move is part of a much larger trend playing out in the financial services space, whereby global banks are increasingly shifting their focus towards Eastern regions that may offer greater growth potential.
Success in these markets rests on the alignment of more than a few stars. Extensive market research, careful financial planning, prudent workforce management and legal expertise are a few that spring to mind. But not enough attention is paid to the importance of nuanced regional communications. A blanket PR strategy that works in London or New York won’t resonate in Hong Kong, Dubai, or Riyadh. But neither will a host of isolated local approaches. It’s about balancing global messaging with region-specific insights and tactics.
Follow the money – global banks are turning East
HSBC isn’t alone in looking East. Other major players like Standard Chartered and Citi are also re-evaluating their operations, looking to marry their fortunes with the region’s growth potential.
- In December 2024, Standard Charteredii expanded its private banking team in the UAE by 20%, focusing on high and ultra-high-net-worth clients. This move is part of a broader strategy to strengthen its wealth management capabilities in the Middle East.
- Citigroupiii has similarly placed a renewed emphasis on wealth management and institutional clients, particularly in Asia and the Middle East. In May 2024, CEO Jane Fraser emphasized the importance of the UAE and Saudi Arabia as engines of expansion in the region.
These markets offer significant advantages – not just in terms of financial opportunity, but also with regards to regulatory flexibility compared to the likes of the US and Europe. But success isn’t guaranteed. The way companies position themselves in these markets, communicate with key stakeholders, and build credibility will determine whether they thrive or fall behind.
The hidden risks of expansion – what we can decipher from past tries
Not every company gets it right, after all. Take Deutsche Bank, for example.
In 2009, Deutsche Bankiv made a big push into the Middle East, identifying the region as a key revenue driver. But when business volumes didn’t live up to expectations, the bank was forced to scale back. At the time, many western firms moved talent to the region assuming business demand would follow, but it didn’t.
And while this failure has been attributed to several factors – such as the fact that much of the region’s growth was built on high levels of debt and a real estate bubble that later burst – it’s also easy to see how a lack of understanding of regional market dynamics and the absence of effective PR planning may have contributed to the lacklustre business volumes. Deutsche Bank’s expansion in the region was a quick one, and it’s likely that these elements weren’t fully considered.
Deutsche Bank’s restructuring in the region highlights a key lesson: expansion without a deep understanding of local market conditions and competitive dynamics can backfire. A strong PR and communications strategy is critical – not just for visibility, but for positioning a firm in a way that aligns with the realities of the local market and in establishing a strong foothold. Failing to understand the regional context, cultural dynamics, or media landscape can have serious consequences.
How to build a winning regional PR strategy
As global financial institutions shift their strategies, their communication efforts must adapt as well. A blanket global PR strategy simply won’t cut it anymore – PR strategies need to be tailored to fit the unique characteristics of each market.
- Tailored messaging: Each region comes with its own set of cultural, economic, and regulatory nuances. A message that works in the UK or US might not resonate the same way in Asia or the Middle East.
For instance, in our recent blog on family officesv (FOs), we discussed how single-family offices (SFOs) require a distinct approach – one that emphasises discretion, long-term relationships, and alignment with the family’s values. PR campaigns targeting this sector need to communicate a deep understanding of these unique priorities, and that only comes from regional insight.
- Established media relationships: Having connections with local journalists and media outlets is key. Working with a PR agency with boots on the ground helps navigate regional press networks – which can be near impossible to penetrate from overseas – and build credibility with stakeholders. In regions like Asia and the Middle East, where media landscapes can differ widely, knowing who to approach and how to position your message is essential to success.
The PR advantage global banks can’t afford to ignore
As global banks pivot towards Asia and the Middle East, communication strategies must evolve to match these regions’ unique dynamics. Success lies in understanding both the global vision of these financial institutions and the local nuances of the region. A strategy supported by regional insights and strong media connections will ensure long-term relevance. Those who fail to adapt risk being left behind.
Key takeaways:
Q. Why are global banks shifting their focus towards Asia and the Middle East?
A. Banks like HSBC, Citi, and Standard Chartered are seeing greater growth potential and regulatory flexibility in these regions.
Q. What challenges do financial institutions face when expanding into these markets?
A. Without a deep understanding of local market dynamics, media landscapes, and cultural nuances, banks risk weak positioning and failed expansion efforts.
Q. How can a strong regional PR strategy support global expansion?
A. Tailored messaging, local media relationships, and region-specific communication strategies help banks establish credibility and long-term relevance.
