Bank backs up package with branch network

For Chan Kin-por, running an MPF team for Hang Seng Bank is both personal, and of course business.

For one thing, Mr Chan and the squirrel, the mammal chosen to publicise the MPF scheme offered by Hang Seng Bank, have something in common.

'Yeah, we both got funny bunny teeth,' Mr Chan, the bank's assistant general manager and also head of insurance group, said.

Mr Chan, who has been with the bank for 26 years, will lead a team of 1,200 staff, drawn mainly from the 156 branches, to promote the MPF plans.

'Hang Seng Bank can leverage its network and excellent service to capture a large piece of the pension market,' he said.

He added that the bank offered a set of complete integrated personal banking services. Clients can have the monthly balance of their retirement scheme, shown on monthly statements and ATMs.

On-line access would also be provided once the contributions begin.

'Our survey showed many of our clients have expressed great interest in using our MPF service. It is an encouraging signal to know that they are our potential clients,' Mr Chan said.

Hang Seng Bank, the second largest local bank, serves one-third of the population of Hong Kong.

The bank has joined forces with parent HSBC to provide MPF services including trustee, administration and fund management.

Hang Seng Bank will concentrate on distribution and marketing separately.

Together the two banks aim to capture 40 per cent of the market with HSBC targetting 30 per cent of the business. Products that Hang Seng Bank is launching this month can be categorised into two types.

Plan A, which offers choice of five funds - capital preservation, guaranteed, and products that carry high, medium, low rate of investment return.

Plan B - more suitable for big organisations, will offer 10 options for clients, five of which would be the same as Plan A while the other five would focus on country funds.

The Hang Seng Index fund, the most attractive fund to individual investors before the launch of Tracker Fund, would also be included.

Mr Chan said it would be the whole MPF package, not just price that would be crucial.

'The fee is just one of the concerns. Convenience, sense of security and quality of service are also important considerations.' He said the bank's MPF services met all these criteria.