After a period of trimming geographies, global banking giant HSBC has announced a major reorganiastion. The move will give it a more traditional integrated wealth division, which is an approach that has worked well in other universal banks.
There is considerable detail still to be laid out regarding HSBC’s latest reorganisation, particularly regarding its retail banking operations outside of Hong Kong (China SAR) and the UK. Yet one clear winner is its wealth management operations and broader wealth strategy. The consolidation of its insurance, asset management, private banking, and Premier banking divisions is a tried and tested strategy used at other international universal banks, generally to good effect.
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GlobalData Wealth Management Competitor Analytics
Among the top global wealth managers in GlobalData’s Wealth Management Competitor Analytics, universal banks with similar setups include JPMorgan Chase and BNP Paribas. Drawing all of the wealth- and investment-related parts of HSBC’s sprawling operations together should give it focus and synergies to continue growing its wealth management business and wealth fee income.
One reporting line and closer integration between insurance, asset management, and wealth should mean deeper and more holistic client relationships. This will be particularly important going into 2025 as interest rates begin their march down across its core geographies and net interest margins for all banks —including HSBC’s critical profit centers in the UK and Hong Kong (China SAR)—are squeezed.
Andrew Haslip is Head of Content for Wealth Management and Asia-Pacific, GlobalData
