HSBC is undertaking a major recruitment drive in the UK, aiming to hire hundreds of bankers to serve wealthy clients as part of its strategy to expand its wealth management business. The bank, Europe’s largest, plans to significantly grow its team of relationship managers, who provide personalized financial services to affluent individuals in exchange for substantial fees.
These new hires will be spread across various locations in the UK, with HSBC looking to build upon its current team of around 400 relationship managers by next year. This move comes as HSBC seeks to fend off increasing competition from British rivals like Barclays and Lloyds.
The recruitment effort is part of HSBC’s broader goal to double its UK wealth management assets to £100bn within the next five years, potentially placing the bank among the top five wealth managers in the UK.
The bank’s focus is to establish more reliable revenue streams that are less influenced by interest rate changes. This UK push mirrors HSBC’s earlier success in Asia, where the bank invested heavily and hired 1,000 new staff in 2021 to boost its wealth management operations there.
HSBC Launches Major Recruitment Drive to Boost UK Wealth Management Business
To attract more wealthy customers, HSBC plans to revamp its premier-tier banking services, which include enhanced mobile banking options and additional competitive benefits tailored for affluent clients. These updates are expected to be introduced by the end of the year.
HSBC will face competition from other high street lenders like Lloyds Banking Group and Barclays, which are also focusing on the “mass affluent” market. This market is defined as customers with deposits ranging between £75,000 and £250,000. Barclays, for instance, is targeting clients who earn at least £75,000 or have savings of £100,000 or more.
In addition to domestic clients, HSBC is placing a strong emphasis on international customers, particularly those who already have banking relationships with HSBC in other countries or who qualify as non-domiciled under UK tax laws.
This status allows individuals to live in the UK without paying taxes on overseas income, making them an attractive segment for the bank’s expanded wealth management services. Despite some recent leadership changes, the strategy is being driven by HSBC UK’s head of wealth and personal banking, Jose Carvalho.
HSBC’s global wealth management division has seen substantial growth, with customer assets reaching $1.19tn by the end of 2023, a 17% increase from the previous year. The division brought in $7.5bn in revenues, making up 11% of the group’s total $66bn revenues for the year.
By mid-2024, the bank had attracted an additional $19bn in assets, with wealth management revenues up 12% to $4.3bn. HSBC’s new CEO, Georges Elhedery, has expressed confidence in the bank’s current strategy, stating that the group is well-positioned and on track for continued growth.
