HSBC rebrands and expands previously acquired SVB UK as the HSBC Innovation Banking unit to provide banking services to the startup, investor, and broader tech community
HSBC today unveiled HSBC Innovation Banking standalone entity, which includes the former Silicon Valley Bank UK (SVB UK), along with newly formed innovation teams in the US, Israel and Hong Kong.
The new banking unit will deliver a specialised service offering for innovation businesses from the tech and life sciences sector and their investors.
“HSBC Innovation Banking will help innovative businesses to unlock their potential, create more jobs and access new global opportunities – supporting my priority to grow the UK economy and cement our position as a science and tech superpower,” said UK Prime Minister, Rishi Sunak.
The new division will employ over 700 people from different countries. However, predominantly, both the talent pool and the new unit’s client base consist of businesses and people based in HSBC’s home country. Namely, the Innovation Banking aims to serve 3,000 tech and life science innovation businesses and funds in the UK, to begin with. Innovation Banking international team also hosts over 650 employees in the UK and Nordics, with a small percentage of the dedicated bankers located in the US (40), Israel (20), and Hong Kong (around a dozen).
The new concept grew on a base of SVB UK business that was acquired by HSBC in an emergency sale for just £1 this March, when SVB Financial Group filed for bankruptcy protection.
The rest of SVB’s banking operations in the US were acquired by First Citizens which had been operating under the name SVB Bridge Bank after the holding company SVB Financial finally collapsed. Unlike HSBC, First Citizens Bank aims to rebuild SVB business model trying to return SVB to the category of trusted brands.
To find out more about the implications of the SVB case for the wider crypto and banking sectors, you can read our extensive three-part overview Silvergate, Silicon Valley Bank, and Signature: Big Picture in Small Details.