About 1.7 million customers, or 45 per cent of the bank's personal and business clientele, use the phone-banking service.

'HSBC has been emphasising the importance of putting our customers' interests first,' said Teresa Au, head of service and sales, and personal financial services, Asia-Pacific.

HSBC also won the customer service Grand Award in 2003.

'That we are able to obtain the same award twice shows the public recognition and gives us a lot of encouragement,' Ms Au said. 'Hong Kong has a customer-oriented economy. Every company and organisation is competing and keen to win. It is really a great honour to receive the award.'

The Direct Financial Services centre employs 700 staff who handle telephone queries and transactions for 260 products, ranging from banking and insurance to investment products.

She said that almost all banks in Hong Kong had call or contact centres, but 'what differentiates us from the rest is that we are the largest. It also depends on how well we manage [the call centre]'.

This is one of many awards that HSBC has pocketed recently. Last year, it was named the Best Consumer Internet Bank and the Best Retail Bank by Global Finance Magazine and Capital Magazine respectively.

Ms Au said the success of HSBC was due to the achievements of its employees.

'The people make the difference. We are proud of the investment that we put in our staff. We foster a strong corporate culture, customer service mindset, open-mindedness and respect.

'We need to ensure that our colleagues share this vision. We do this by treating our colleagues the same way as they should treat the customers.'

The bank also provides regular training sessions to staff and gives briefings on the latest financial products, product promotions and other updates.

'The right mindset and skills are what we refer to as the software side,' Ms Au said.

'Software needs to be supported by hardware and that is the comprehensive computerised database. The computer can retrieve and show the customer's transactions immediately, up to the latest transaction.'

The centre also employs a 'oneness' approach.

'It is essential that our staff anticipate all kinds of queries, even before the customer asks the questions,' she said.

'And, of course, it is important to provide comprehensive answers.'

By doing so, Ms Au said

that she was confident that

'our customers would feel they

are dealing not with strangers

but with friends who know them very well'.

Direct Financial Services, which calls itself 'the voice of the bank', has its performance constantly monitored and evaluated.

'We have service standards to ensure that the customers need not wait very long. We also have ways to channel the call by pressing buttons or through a voice-differentiation system,'

she said.

When the Direct Financial Services started 10 years ago, it was a small operation that was meant to assist conventional over-the-counter transactions.

'The contact centre only provided answers to questions. It did not handle customers' transactions,' Ms Au said.

But, as the bank offered more services available through the telephone, the trend shifted, reflecting the changing nature of banking.

More customers increasingly prefer and rely on telephone banking.

In addition, more clients now use internet banking, automated teller and deposit machines.

'Now, only 5 per cent of transactions go through our branches,' Ms Au said.

'Because we provide some alternative channels, the trend of over-the-counter transactions, in fact, is decreasing.'

Instead of queuing up in a crowded bank during rush hour at lunch, a customer can simply pick up a telephone and do the banking errand any time and anywhere.

'People in Hong Kong value efficiency and it cannot be denied that phone banking is much more comfortable and convenient,' Ms Au said.

Although much of the telephone traffic is incoming calls, the Direct Financial Services' staff also call up customers to introduce the latest bank products and promotions. This proactive approach certainly pays off.

'A sizeable proportion of our sales are generated by these calls,' she said.

While both telephone and online banking have experienced strong growth in recent years, the number of online transactions is expected to grow even faster and eventually overtake those done via telephone.

'The younger generation is more prone to use online banking,' Ms Au said.

and the judges said:

'HSBC's 'oneness' approach, combining an intelligent and dynamic staff force with a sophisticated system, provided customers with a seamless direct contact centre that understands customers' needs and is a unique customer experience. HSBC is a pioneer in the system employed, and the technology used is well integrated with customers' needs and delivery, and facilitates easiness for customers. The training has helped maintain a good level of consistency and has helped raise the overall standard of professionalism in the banking industry.'