HSBC has recruited hundreds of bankers in the UK to service wealthy clients as it looks at reducing the competition and taking a bigger slice of the UK wealth management market.
The largest bank in Europe is looking to strengthen its UK wealth and private banking arm by bolstering its team of relationship management, which offers bespoke services and advises to wealthy clients for lucrative fees.
Sources familiar with the lender’s hiring plans say that hundreds of relationship managers will be added to its 400 strong team by next summer. HSBC’s headquarters are in London, but recruits will work across the UK. Recently, vacancies were posted in places like Peterborough, Truro and Telford.
The new UK bankers are tasked to double the assets under management in HSBC UK’s wealth business around £100bn within five years. A pool of assets of this size would place HSBC among the top five wealth management firms in Britain.
The company diversifies into more stable income streams that are less sensitive than the interest rate cycle.
The bank is trying to duplicate the success of their Asian wealth division which, in 2021, hired 1,000 new employees after investing $3.5bn in the region.
The expansion came despite an overhaul under HSBC’s former chief executive Noel Quinn, who announced in 2020 that the bank was looking to up to 35,000 positions by 2022. HSBC employs more than 40,000 staff in the UK, and about 220,000 worldwide.
HSBC is believed to be launching a mobile banking service for wealthy customers, and a range of other competitive advantages in order to attract more wealthy clients. Details about the new look are expected to be revealed before Christmas.
The three banks are hoping to gain a greater share of the so-called “mass affluent” market, defined by Lloyds as those with deposits between £75,000 and £250,000. The three banks hope to capture a larger share of the “mass-affluent market”, which Lloyds defines as those with deposits between £75,000 and £250,000.
Barclays Premier Service, which is a “dedicated financial guide team”, is aimed at people who earn at least £75,000 or have saved at least £$100,000.
HSBC, formerly known as the “world’s local bank”, hopes to boost its wealth division by attracting international clients who are attracted to a lender that has a global presence.
Customers who have already banked with HSBC abroad and those who do not fall under UK tax rules (which allows people to live in UK without paying taxes on their overseas income) are seen as potential customers.
Jose Carvalho is HSBC UK’s head of wealth management and personal banking. The plan will continue despite a recent change in management.
Nuno Matos resigned as Carvalho’s boss at HSBC Group, the head of wealth management and personal banking. This was just days before Georges Elhedery, the former group chief executive, took over the role on 2 September.
Elhedery indicated that he would not make major changes after Noel Quinn stepped down. Quinn said it had been an
Elhedery said to journalists in July that the bank had “generally reached where we hoped to be”.
HSBC Global Wealth and Private Banking division managed $1.19tn in customer assets at the end of last December, an increase of 17% compared to 2022. Its revenues were $7.5bn in December 2018, which is 11% of HSBC’s $66bn revenue for 2023.
The bank reported that by July of this year it had acquired another $19bn worth of assets. Revenues for the division grew 12%, to $4.3bn, in the first half 2024.
HSBC has declined to comment.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.