HSBC withdraws from most US retail banking

HSBC will continue investing in US international wholesale banking franchise

HSBC

HSBC withdraws from most US retail banking. Source: shutterstock.com

HSBC has announced that it will exit its US domestic mass-market retail banking business through several transactions, pending regulatory approval.

That means the exiting of 90 branches out of a current branch network of 148 branches.

Meanwhile, HBUS will retain a small network of physical locations in existing markets which will be repurposed into 20-25 international wealth centers. The remaining branches, between 35-40, will be wound down.

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 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.

We 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. Our continued presence in the US is key to our international network and an important contributor to our growth plans. This next chapter of HSBC’s presence in the US will see the team focus on our competitive strengths, connecting our global wholesale and wealth management clients to other markets around the world
Noel Quinn, Group Chief Executive of HSBC

We’ve reported that J.P. Morgan teamed up with global digital payment software provider.

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