With many weak profit industry analysts expected this year, Global Financial Giant HSBC has begun to expand its operations. The bank comes out of many global markets and closed some of its services in favor of giving priority to wealth management in the Middle East and Asia.
Multiple market exits as part of operating reform
Earlier this week, HSBC announced that it would close many of its investment banking business in the United Kingdom, Europe and the Americas, and turn its focus towards wealth management services in other regions.
“It was just a very difficult job for building to a level where [HSBC] It has a competitive advantage. Continuing to try to “storm” these markets will not be the best use of the bank’s resources. HSBC mentioned in a note obtained by the Vinanchel Times times.
The financial giant noted that this decision is part of a wider effort to simplify internal processes and focus on its main strength points.
In addition, this step is in line with HSBC plans previously announced to review its retail banking operations in Indonesia and Mexico. According to what the bank is studying a significant decrease in retail sales in Mexico, while assessing its presence in Malaysia and Indonesia to take advantage of high -value banking opportunities.
Goodbye to “Zing”
HSBC has also closed Zing, the money transfer application, in an attempt to compete more effectively with high -tech companies such as Wise and Remit. The decision comes after a Zing strategy review within the long -term HSBC forecast.
“After a strategic review within the HSBC group, we decided to close Zing and integrate its main technology platform into HSBC,” A company spokesman said about the banking diving.
They added:
“This decision is part of simplifying the group that was announced in 2024, with a focus on increasing driving and market share in areas that have a clear competitive advantage and the largest opportunities to develop and support our customers.”
Zing was launched in January 2024, Zing initially targeted HSBC and HSBC customers in the United Kingdom, with plans to expand in new markets. However, HSBC has now stopped accepting new orders, and current users must withdraw their money before April 2, when the service is officially stopped.
Although HSBC did not reveal the number of employees who will be affected by the closure, reports estimate that about 400 jobs may be in danger.
Why focus on the Middle East and Asia?
HSBC’s strategic shift to the Middle East and Asia follows a major regulatory restructuring during the era of CEO George Ilidri, who divided the bank’s global operations into the “East” and “West” to reduce costs and mobility in the complex geopolitical scene that often affects financial services.
In an internal interview, David Liao and Surindra Rocha explained, he participated in HSBC operations in Asia and the Middle East, the logical basis behind the transformation:
“These areas are home to some of the world’s most powerful economies. Deepening their connection through multilateral trade agreements and institutions building efforts in areas such as exchanging data across borders, providing great opportunities for growth.”
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“This opportunity is clear, but the challenge as well. Many Asian countries have high rates and savings and low family consumption compared to models that focus on shopping and services seen in many of the developed world. These ratios will be re-balanced- more wealth among consumers of the middle class with Continue investing in infrastructure, public services and clean energy.
HSBC also highlighted that these areas host important capital gatherings, especially in China, Japan, Korea and the Gulf states. Meanwhile, the international financial centers in Singapore, Dubai and Hong Kong are strengthening the sector.
With this axis, HSBC aims to place itself as a dominant player in wealth management throughout Asia and the Middle East, which increases the revenue in rapidly growing economies while simplifying its global banking operations.