HSBC shares a glimpse into the strategy for its newly merged retail and private banking unit with a combined $1.4 trillion in client assets.

As part of its restructuring strategy, the newly formed wealth and personal banking unit – formerly retail and private banking – aims to realize synergies and improved efficiency through the transferal of products and investments. Combined with its presence in high growth markets, the bank hopes the enlarged business will inspire fear in competitors.

«We’re in some of the fastest-growing wealth markets in the world […] the fact we now have a $1.4 trillion wealth business should be exciting for our customers and hopefully scary for our competitors,» said HSBC’s wealth and personal banking CEO, Charlie Nunn, in a «Reuters» report. 

Target Markets

According to Nunn, the bank plans to accelerate growth in the three major markets where it has scale – Britain, Hong Kong and Mexico – with a focus on mortgages, wealth and issuance products and unsecured lending, respectively. In addition, HSBC will also target more than 10 markets for wealthier clients that frequently travel or invest overseas such as China where its market share is smaller.

Nunn declined to comment on the reported potential exits from other markets such as Turkey, Greece and Oman.

«We’ll continue to review markets on a case-by-case basis,» he said.

Hiring Progress

Whilst the bank announced plans to cut 35,000 jobs worldwide, Asia’s share of the global headcount is expected to continue increasing. Since 2017, the bank has already hired some 800 frontline and support staff within its wealth management arm. The hires were primarily product specialists and relationship managers for its private banking and «Jade» (targeting clients with $1-5 million in assets) business with a particular focus on southeastern China.

«We remain committed to really trying to capture share and be more relevant in the Greater Bay area of China,» Nunn said. 

Meanwhile, the bank also named Kevin Martin, APAC head of retail banking and wealth management, as the COO of the newly merged unit.