So you do, that’s my bad.
I didn’t get a hard check when I opened my USD currency account - but it was in branch many many years ago. When I opened the EUR account online I did
Currency accounts have been a thing with HSBC since 2015. Their original purpose was to just hold and make transfers in foreign currency
GMA is just the natural evolution of the currency accounts. Shame no local account numbers for making transfers easier
You can make HSBC Global Transfers if you have another country’s though, at least.
HSBC Australia closure has been announced over the next 18 months: Important Notices | Latest Information and Updates - HSBC AU
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Got this email as well this morning, looks like current accounts will just get closed and not transferred to a new bank.
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Surprised Revolut hasn’t tried buying the accounts. Maybe they weren’t worth much.
More importantly though, I wonder what this means for HSBC AU’s credit card products. They had the only ‘alliance’ card. Points you earnt could be credited to any star alliance airline.
A repeat of what happened in New Zealand three years ago:
Reading between the lines, this was always likely once NAB seemed to give up on acquiring the entire retail bank a year ago, but it is still very disappointing. There is also no real alternative; as far as I know, no other bank operating in Australia will open non-resident accounts as HSBC did (unless perhaps at private banking level) and the only decent option for people living elsewhere but with connections to Australia is to use Wise - which, of course, is not a bank. They do connect to Osko and allow AUD Direct Debits though.
Coincidentally, iFast launched AUD accounts yesterday and they pay a decent interest rate but getting the money in and out would be problematic without converting first.
I personally think the HSBC “Simplification Strategy” is now going too far and a total exit from retail banking in countries such as Canada and Australia is a shame.
Australia’s recent regulatory action against HSBC also probably forced the issue and concentrated their focus on just getting out ASAP, it certainly won’t have helped.
Even more disposals are already coming, as the sale of retail banking in Indonesia was announced recently, along with Malta. “Strategic reviews” of retail banking are also underway in Egypt and Türkiye, both of which are likely to result in a sale of retail banking.
Most countries they have “left” in retail do retain some level of Corporate & Institutional Banking and all the relevant licences and authorisations to service this. HSBC Innovation Banking and HSBC Private Bank are also expanding and have wide coverage.
But for the normal person, HSBC’s footprint really is shrinking rapidly!
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Soon HSBC will decide. “We are leaving the UK market as well bye”
Not so sure about that!
The two key markets are Hong Kong & the UK.
There are also other “core markets” which are a priority for them in terms of investment which they seem quite committed to (for now) which include the UAE, mainland China, India, Singapore, etc.
Officially, this is because they believe that investing in these will drive higher returns (both because they are areas for good potential growth and because HSBC has a good foothold/unique offering already in these areas).
This is complemented with a push towards “wealth” globally, especially in Private Banking but also to an extent in Premier and Premier Elite.
They previously planned to exit retail banking in Turkiye but backtracked on that decision. They are however indeed reviewing their retail operations again in Turkiye, Egypt and Mexico too.
I think it was a stupid push. The reason they’ve had this massive footprint in some high profit groups is because the relationship is something they can take with them.
If they don’t have that footprint, what is the point of banking with the footprint people?
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Mexico might go Premier-only like the US.
Last time in Türkiye, they tried to get rid of the business but had no interested buyers. This time, apparently Emirates NDB is interested and they have also arguably prepared the business for sale in the meantime. Apparently there have been significant branch closures and a push to attract premier customers so the retail business is now looking much for attractive for a prospective buyer - and anyway, they now seem to be pursuing exits almost “at all costs” to add to the pile of freed-up cash they are trying to accrue. HSBC Malta and HSBC Australia bids came in way under expectations but they agreed the sale anyway!
Sources say they were “almost desperate” to get rid of HSBC Malta!
I still think decisions like this will bite them over time. They are most certainly no longer the “worlds local bank”.
I highly suspect that apart from standard and premier the UK won’t see additional accounts. I know we consider them to be a UK bank first followed by international, but I very much see them as the opposite.
I’m hoping all of this doesn’t mean we stop seeing app development. I’ve grown to quite like HSBC as a bank.
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Maybe it’s to develop markets properly. Exit with your lacklustre operation, use the FCF to purchase a market leader in the country? They can definitely afford to purchase some smaller market players outright.
This is what they should have done in most markets, rather than completing shutting off their retail banking.
Someone who keeps Premier for international banking seeing their international accounts closing as the bank shrinks could simple leave HSBC for another bank.
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Was having a look at HSBC Home & Away offers and saw they’ve 10% off costa vouchers.
Most of the stuff there I wouldn’t use, but 10% off coffee and food is a pretty good deal.
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HSBC I think will sell their Mexico operation. They lack the scale and investment to compete.
I’m sure it will go to Santander, as Mexico is a growth market for Banco Santander.
Why do they think they don’t have the money to grow, exactly? HSBC could invest back into failing markets, make acquisition of smaller players etc
It’s like they’re not a cash flow machine or something.
Why would you invest in a sinking ship?
Your profits will increase if you drop it, save relying on hope.
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Scale. Even with more money invested, HSBC is a small player. They won’t have the scale to take on the established banks in most of their non core markets. Plus of course invest in Mexico, Malaysia, Bahrain, UAE, Australia, to maybe move the dial slightly versus invest in core markets like HK, UK, China and see a huge difference
I think all these global expansions are from the pre 2008 world. Where British banks wanted to be the biggest in the world. They attempted to do so and failed.
Never forget that in 2007 it was RBS as the worlds biggest bank…
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