HSBC exits US mass market retail banking
HSBC has announced that it is repositioning its US Wealth & Personal Banking business towards international banking and wealth management.
HSBC Holdings plc (‘HSBC’) announced that it will exit its US domestic mass market retail banking business through several transactions, pending regulatory approval. They include:
- Exiting 90 branches out of a current branch network of 148 branches
- HBUS will retain a small network of physical locations in existing markets which will be repurposed into 20-25 international wealth centres
- Remaining branches, between 35-40, will be wound down
- Exiting all Personal, Advance and certain Premier banking customers (those with balances below US$75k)
- Exiting all retail business banking customers (small businesses with turnover of US$5m and under)
As a result, HSBC Bank USA, N.A. (‘HBUS’) will reposition its US Wealth and Personal Banking business to focus on the banking and wealth management needs of globally connected affluent and high net worth clients. HBUS will exit its domestic mass market retail banking business and retail business banking (collectively the ‘Business’) through a number of divestitures, and wind-down of the residual branch network. HBUS has entered into sale agreements, subject to regulatory approval, with Citizens Bank and Cathay Bank for certain parts of the Business.
Regionally, the US remains a critical wealth market and a preferred investment destination for our global wealth and private banking clients, particularly Asian wealth. HSBC noted that it continues to fully support Asian customers in the US; and capabilities continue to be available for all international clients.
Greg Hingston, Regional Head of Wealth & Personal Banking, Asia Pacific said “The US plays a large role in HSBC’s Asia growth strategy, particularly in support of our ambitions to become the leading wealth manager in Asia. Our refreshed strategy in the US will allow us to better serve the needs of our international wealth clients, who continue to consider the US for international education, property, investment diversification, career and family mobility and business expansion, among others. At the same time, we are able to connect the burgeoning Asian diasporas in the US, particularly overseas Chinese and Indian customers back to opportunities in their home markets and across the region.”
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