The HSBC logo is displayed at its offices in London's Canary Wharf financial district. — Reuters file
HSBC is reintroducing its 'Premier' wealth banking brand in the UK, focusing on mass affluent customers with investable assets ranging from £100,000 to £2 million. Jose Carvalho, HSBC UK's head of wealth and personal banking, informed Reuters that the fee-free Premier product will provide 24/7 customer service, financial planning tools, and benefits related to travel, international services, and lifestyle.
HSBC aims to double its assets under management in its UK wealth business to £100 billion within the next five years, as reported by Reuters in August. The relaunch of Premier coincides with similar initiatives in Hong Kong and Singapore, with Carvalho stating that HSBC plans to extend these services globally.
“We believe there is significant growth potential for us in the segment of 16.5 million customers in Britain, which is expected to increase to nearly 18 million in the next two to three years,” Carvalho added. HSBC currently holds a market share of around 1 million customers in this segment, as revealed in his first interview since Georges Elhedery assumed the role of HSBC's new CEO in September.
Carvalho also mentioned that HSBC intends to open a new flagship wealth center in London's prestigious Mayfair district next year. He noted that HSBC will recover the investment costs in Premier over time, as customers are expected to purchase additional products such as wealth management services, mortgages, and credit cards.
Competitors like Barclays and Lloyds have also expressed ambitions to expand their wealth management services, as banks globally strive to increase fee income to counterbalance declining revenue from loans due to falling global interest rates. However, HSBC has decided against charging a fee for the Premier product, with Carvalho confirming media reports that the bank is hiring hundreds of new relationship managers for the relaunch.
HSBC's expansion into UK wealth banking, particularly targeting internationally-oriented customers seeking round-the-clock service and various perks, aligns with the bank's broader strategy. Elhedery is overseeing a significant restructuring of HSBC into four divisions and a geographical realignment along East-West lines. This reorganization is anticipated to result in hundreds of middle management layoffs, with potential announcements expected before the end of the year, according to recent media reports.
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