HSBC considers scaling back global retail banking

On Thursday, HSBC initiated a review of its retail banking operations beyond the UK and Hong Kong, signaling a potential reduction of its consumer banking presence in several countries, including Mexico. According to a Financial Times report, the bank is shifting its focus towards serving wealthier "premier" customers as part of a broader strategy.

The bank's move toward "premier" wealth banking was evident last month when it reintroduced the brand in Britain, targeting affluent clients. Jose Carvalho, HSBC UK's head of wealth and personal banking, confirmed this direction aligns with the bank's overarching strategy.

Last week, HSBC, which is headquartered in London, announced significant changes in its senior management team. These changes are part of new CEO Georges Elhedery's plan to cut costs and enhance decision-making processes. Elhedery, who assumed his role in September, is emphasizing the importance of catering to "premier" clients and strengthening the bank's wealth management services.

The Financial Times report suggested that HSBC is considering a substantial reduction in its retail banking footprint in Mexico. The review also extends to the bank's operations in Malaysia and Indonesia, where HSBC could pivot more towards its premier banking services.

HSBC has not provided any comments regarding the reported review of its retail banking operations.

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Source: Investing.com