HSBC to Rename its UK Retail Bank
Residents of Britain will no longer see the name of HSBC as the bank is making preparations to give a brand new name to its retail arm in the UK. The bank has announced that it will do so as soon as its finishes ring-fencing its UK retail bank in compliance with the latest regulations.
HSBC’s UK retail bank serves millions of customers and employs over 26,000 people. Once it is legally separated itself from HSBC’s international operations, it will give itself a totally new name. As a result, the familiar HSBC logo and brand will vanish from the high streets of Britain, nearly 20 years after the acquisition of Midland Bank by HSBC.
HSBC could either rejuvenate Midland Bank or expand its existing First Direct, its online bank, which is more popular among customers than its high street branches. The above was announced on Tuesday by HSBC CEO Stuart Gulliver, the day on which the bank announced that it will axe thousands of jobs.
HSBC plans to cut down 8,000 jobs in the UK and shut down 12 percent of its high street branches across its seven biggest markets. However, the bank has not revealed the exact number of the branches it will shut down across the UK, where it has over 1,000 branches and around 48,000 employees.
Gulliver said:
We will operate with a different brand name, we haven’t decided what it is, we’re going to consult with customers and staff.
As per the new laws created by the previous government, which the Bank of England will implement by 2019, the biggest banks of the UK will have to ring-fence or separate banking services for small businesses and individuals. The new laws are intended to protect customer’s deposits in case of failure of a bank, eliminating the need for the government to safeguard customer savings.
The regulations are still not full created, but the ring-fenced retail banks will be operated separately. HSBC may also sell its ring-fenced bank depending on the decision of the Bank of the England.
Early in 2015, HSBC had announced that it would shift its ring-fenced retail bank to North Birmingham, the birthplace of Midland Bank, which HSBC acquired in 1992.
According to Gulliver, HSBC has decided to rename its retail arm to avoid confusion among its customers. He said:
It’s about clients working out which one they’re dealing with.
The international operation will continue under the name of HSBC.
