HSBC Holdings plc (NYSE:HSBC) reportedly aims to double its British wealth assets to £100 billion (around $131 billion) within five years, focusing on the 'mass affluent' market for higher fee income.
HSBC plans to become a top-five player in Britain by leveraging its global reach to attract customers who bank with it in multiple markets or are from overseas, reported Reuters, citing the lender's UK wealth and personal banking head, Jose Carvalho.
Carvalho said, "International connectivity is our competitive advantage and is driving growth." and added without giving numbers, "The bank plans to hire more advisors as part of the push."
The push reflects banks' aim to expand into sectors less affected by falling interest rates, where technology enables competition with independent providers.
Carvalho said he, however, wanted to focus on that segment, "where we see an opportunity thanks to a culture shift away from some of the IFAs that dominate some 55% of the market".
HSBC's strategy includes enhancing cross-selling through improved mobile and digital banking channels and encouraging wealthy customers to transition from savings deposits to long-term investments.
The report also quoted Nigel Moden, EMEIA banking & capital markets leader at EY, who stated, "The demand for wealth management services continues to grow... but competition is high as almost every major bank has now declared its ambition to take a bigger slice of the pie."
In July, HSBC disclosed that it plans to slow hiring and limit expenses under the outgoing CEO.
Investors can gain exposure to the stock via Dimensional International Value ETF (NYSE:DFIV) and Avantis International Large Cap Value ETF (NYSE:AVIV)
Also Read: Visa And HSBC Partner To Propel Zing App's Global Expansion And Enhanced Currency Services
Price Action: HSBC shares are up 0.05% at $43.67 premarket at the last check Monday.
Image: Shutterstock/ sylv1rob1
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