Investing.com -- HSBC (LON:HSBA) is relaunching its "Premier" wealth management brand in the United Kingdom (TADAWUL:4280), focusing on affluent individuals with investable assets ranging from £100,000 to £2 million, Reuters reported on Wednesday.
Jose Carvalho, HSBC UK's head of wealth and personal banking, explained that the fee-free Premier offering would include 24/7 customer service, financial planning tools, and a suite of travel, lifestyle, and international benefits.
This is part of HSBC's ambition to double the assets managed by its UK wealth business to £100 billion within five years, following a similar strategy rollout in Hong Kong and Singapore. Carvalho noted that the bank intends to eventually extend the revamped services globally.
There’s significant potential in the segment of 16.5 million affluent customers in Britain, a number projected to grow to around 18 million within the next two to three years, Carvalho said. HSBC currently serves only about 1 million customers in this category.
A key element of the relaunch is the planned opening of a flagship wealth center in London's upscale Mayfair district next year.
Carvalho expects the costs associated with Premier's relaunch will be recouped over time as customers adopt additional products like wealth management services, mortgages, and credit cards.
The move reflects an industry-wide trend, with competitors such as Barclays (LON:BARC) and Lloyds (LON:LLOY) also seeking to enhance their wealth management services.
This shift comes as banks look to grow fee-based income amid declining revenue from loans, influenced by falling global interest rates.
Despite the competitive landscape, HSBC will not impose a fee for its Premier product. The bank is also hiring hundreds of relationship managers to support the relaunch, according to Carvalho.
This push into the UK’s wealth management sector complements HSBC's broader efforts to cater to internationally-focused clients who value around-the-clock service and premium perks.
The initiative coincides with the overhaul led by HSBC's new CEO Georges Elhedery, who assumed his role in September.
Elhedery is leading the bank through a restructuring process, dividing its operations into four main divisions and implementing a geographical split between East and West markets.
As part of this reorganisation, reductions in middle management positions are expected, with announcements anticipated before the end of the year.