HSBC is opening multiple distribution channels in an effort to snare Mandatory Provident Fund (MPF) customers and grab as much market share as it can ahead of the fund's December launch.
With partner Hang Seng Bank, it is preparing for a tidal wave of small and medium-size employers to take on MPF obligations between now and the enrolment deadline in December.
The banks expect to capture 40 per cent of the MPF market.
About 300,000 employers are required to make MPF arrangements, but, as of last month, fewer than half had chosen an MPF provider, according to an American International Assurance funded survey by Tradelink.
'It is as if a big wave was forming,' David Humphreys, the chief executive of HSBC Provident Fund Services, said of the swollen ranks of smaller employers who have not yet made MPF arrangements for employees.
'There is going to be a big rush in the next few months, and particularly, we think, through September, October and flowing into November.
