HSBC Revamps its Premier Label to Attract Wealthy Clients
HSBC is relaunching its ‘Premier’ wealth banking brand in Britain to attract so-called mass affluent consumers with investment portfolios ranging from 100,000 to 2 million pounds ($2.5 million).
Jose Carvalho, the director of wealth and personal banking at HSBC UK, informed Reuters that the company’s fee-free Premier product will provide 24-hour customer service, financial planning tools, and travel, international, and lifestyle benefits.
In his first interview since taking on the CEO role in September, Georges Elhedery revealed that HSBC currently has an approximately one million-dollar market share among these customers.
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Industry Comments
Banks worldwide are endeavoring to increase fee income to counteract the decline in loan revenue as global interest rates decrease. Barclays and Lloyds, among others, have expressed similar ambitions to expand wealth management. Carvalho confirmed media reports that the bank employs hundreds of new relationship managers for the relaunch, but the bank has decided not to charge a fee for the product. According to Carvalho, HSBC’s expansion into British wealth banking, targeting internationally-minded customers seeking round-the-clock service, travel, and other benefits, aligns with the bank’s overall strategy.
Carvalho stated that HSBC intends to establish a new flagship wealth center in the affluent Mayfair district of London next year. He also noted that the company would recuperate the costs of its investment in Premier over time by increasing the number of products its customers purchase, including wealth management services, mortgages, and credit cards.
For the next five years, HSBC intends to double the assets under management in its British wealth division to 100 billion pounds ($126 billion). Carvalho stated that Premier’s relaunch will be in addition to similar rollouts in Singapore and Hong Kong. HSBC ultimately intends to provide new services on a global scale. “We think there is substantial growth for us into that segment of 16.5 million customers in Britain, which is going to grow to probably close to 18 million in two or three years,” Carvalho said.
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Conclusion
HSBC is revamping its Premier wealth banking brand in the UK to cater to mass affluent consumers with investment portfolios between £100,000 and £2 million. With a focus on 24-hour service, financial planning tools, and international benefits, the bank aims to expand its market share in wealth management. The relaunch includes hiring new relationship managers and plans for a flagship wealth center in London’s Mayfair. HSBC targets significant growth, intending to double its British wealth division’s assets under management to £100 billion over the next five years, alongside global expansion in key markets like Hong Kong and Singapore.
FAQs
1. Who is the target audience for HSBC’s Premier Wealth Banking?
HSBC’s Premier Wealth Banking targets mass affluent consumers with investment portfolios ranging from £100,000 to £2 million, offering a range of financial and lifestyle benefits.
2. What services does HSBC’s Premier product offer?
The Premier product offers fee-free banking, 24/7 customer service, financial planning tools, travel and international benefits, and access to mortgages, credit cards, and wealth management services.
3. How does HSBC plan to grow its Premier Wealth Banking business?
HSBC plans to double its British wealth division’s assets under management to £100 billion within five years, opening a flagship wealth center in Mayfair and expanding its offerings globally, including in Singapore and Hong Kong.
4. Will HSBC charge fees for its Premier product?
No, HSBC’s Premier product is fee-free. It aims to attract wealthy clients by providing comprehensive services without additional costs.
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