HSBC expands UK wealth management with new banker hires

HSBC Holdings plc is actively expanding its wealth management operations in the U.K. by recruiting hundreds of bankers to cater to ultra-rich clients. The initiative aims to double the assets under management (AUM) in its British wealth business to £100 billion over the next five years, positioning HSBC among the top five wealth managers in the country. This strategy is part of a broader effort to enhance fee income from the mass affluent segment, which includes individuals with deposits ranging from £75,000 to £250,000. The recruitment drive will focus on relationship managers who provide tailored services and advice to wealthy clients, thereby generating significant fees for the bank. The hiring will take place across various locations in the U.K., despite HSBC's headquarters being in London. This move comes as HSBC faces increasing competition from other banks like Lloyds Banking Group and Barclays, which are also expanding their wealth management services. The plan is being overseen by Jose Carvalho, head of wealth and personal banking at HSBC U.K., and is expected to proceed despite recent management changes within the bank. Following the resignation of Nuno Matos, the group head of wealth and personal banking, Georges Elhedery has taken over as the new group chief executive. Elhedery is contemplating a significant organizational restructuring to enhance efficiency and reduce costs. This restructuring includes cutting layers of middle management, which is a trend seen across the banking sector amid economic pressures. By streamlining operations, HSBC aims to improve decision-making processes and empower lower-level staff, ultimately enhancing its competitive position in the wealth management market.