The HSBC Innovation Banking unit has more than 650 employees in the UK, over 40 members in the US, and hiring more in Hong Kong and Tel Aviv.
HSBC Holdings PLC ADR (NYSE: HSBC), a British universal bank and financial services group with more than $10 trillion in assets under custody (AUC), has launched a new banking tech unit dubbed HSBC Innovation Banking with the help of expertise from former Silicon Valley Bank UK (SVB UK).
Closer Look at the HSBC Innovation Banking Unit
According to the announcement, the primary focus of the HSBC Innovation Banking unit is to enable businesses focused on innovation to compete globally. Additionally, the banking giant noted that the new unit will mostly involve tech and life sciences, and their investors.
“Sometimes, high-growth start-ups need a helping hand to capture global opportunities and our new proposition will enable them to navigate the challenges of growing across borders,” the bank noted.
Similar sentiments have been echoed by UK Prime Minister Rishi Sunak, who noted that the country is home to global tech companies involving life sciences. Sunak added that the HSBC Innovation Banking will be a huge boost to innovative businesses and in turn, cement the country as a life science innovation hub.
Notably, HSBC Group Chief Executive Noel Quinn welcomed the new innovative banking unit as it will help showcase the importance of SVB UK in its ecosystem.
“We will protect this specialism and take it to the next level by combining these capabilities with our financial strength and global reach. Our innovation teams will be there to support our client’s international growth at every step,” Quinn noted.
Notably, the launch of HSBC Innovation Banking coincided with London Tech Week which brought together senior leaders. According to the bank, HSBC Innovation Banking UK has more than 650 employees, including team members from Denmark and Sweden. The HSBC Innovation Banking US, on the other hand, has more than 40 members from across the Bay Area, Boston, and New York City. The bank is in the process of hiring more team members from Hong Kong and Tel Aviv.
The launch of HSBC Innovation Banking comes a few months after the banking giant acquired SVB UK for only £1. This was after the UK government intervened to stop further bank runs earlier this year. Notably, the HSBC stock market gained about 22 percent YTD to trade around $38.15 on Monday. The $152.06 billion valued banking giant reported a revenue of about $20.2 billion, up approximately 64 percent YoY basis. As the market indicators point to profitable quarters ahead, the company issued a positive outlook for the remaining part of the year.