HSBC is dropping down its US retail business and turns its attention to richer clients. The British Bank announced that it was closing most of its retail banking locations in the country, reducing its current footprint from 148 branches to about 25. Those that will remain will be turned into international wealth management centres.While the British Bank HSBC will remain in the United States and its team there will switch the focus of its retail business to international banking and wealth management. The team will specifically focus on the needs of globally connected affluent and high net worth clients.
The decision to pull back was widely anticipated. HSBC has repeatedly warned of the need to cut costs in recent years, especially in the United States, where it has long struggled to gain a foothold among everyday consumers. Noel Quinn, CEO said that they are pleased to announce the sale of the domestic mass market of our US retail banking business. They are good businesses, but we lacked the scale to compete.
The British Bank said that Citizens Bank, in Rhode Island, had agreed to buy its retail unit on the East Coast, as well as an online portfolio, which spans roughly 800,000 customers and 80 branches.Over on the West Coast, Cathay Bank, which bills itself as the oldest operating bank in the country founded by Chinese Americans, plans to purchase HSBC’s retail operations, which includes 10 branches and roughly 50,000 customers.