Communications of the Association for Information Systems


Banks have long been among the most intensive users of information technology (IT). Globalization has further accentuated banks’ reliance on IT, leading to further increase in their IT investment. It is not all that clear, however, whether these investments pay off. This case brings to the fore the complexities involved in measuring IT investment by comparing and contrasting the IT strategies of two of the world’s largest banks: HSBC and Citigroup. Will the IT investment strategies adopted by HSBC and Citigroup enhance their operational efficiency or strategic positions? Facing financial turmoil, HSBC and Citigroup adopted different IT strategies. Which of them is more appropriate? Which of the two banks will have higher returns on their IT investments in the long run? How should they measure such returns?