HSBC
announced the launch of its HSBC Innovation Banking division today (Monday),
integrating the formerly independent Silicon Valley Bank UK (SVB UK) and
initiating dedicated innovation teams in the US, Hong Kong, and Israel. This manoeuvre
aims to bolster a global, interconnected, specialized banking offering to cater
for a wide array of innovative companies and their investors.
From SVB UK to HSBC
Innovation Banking
The
unveiling took place at London Tech Week, an event focusing on innovation and
new technologies. This confirmed the speculation by Sky News in late May that HSBC
would want to use the acquired institution as an innovation-focused unit.
HSBC
acquired the British division of defunct SVB in March for a mere UK pound after US authorities forced the institution to cease further operations a few
days earlier. This subsequently caused panic in the global banking markets. At the time of the
acquisition
Acquisition
Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There
Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There
Read this Term, SVB UK held deposits worth £6.7 billion and granted loans valued at
£5.5 billion, recording a pre-tax profit of £88 million in 2022.
However, information
provided during London Tech Week, indicates that the unit's operational profile
will be transformed into HSBC Innovation Banking. Soon, SVB UK will
focus on providing services to a few thousand innovative companies in the UK
and worldwide.
"HSBC
now has a world-class team focused on innovation companies, their founders, and
their investors," Noel Quinn, the Chief Executive Officer of HSBC, commented.
On top of that, he mentioned the importance of the tech and life sciences sector to the
global economy and highlighted the bank's intention to amplify these
capabilities.
The UK
Prime Minister, Rishi Sunak, gave his nod of approval, celebrating HSBC
Innovation Banking as a resource that will empower innovative companies to
harness their potential, generate more employment, and seize new global
opportunities.
"The
UK is home to world-leading tech and life sciences sectors, and I am proud of
the role the British government has played in securing their future and
enabling them to thrive," Sunak added.
HSCB Innovation Banking to
Boost Startups
Erin
Platts, the Head of HSBC Innovation Banking in the UK, explained the role of
the new division as a catalyst for UK innovation businesses, facilitating their
growth and competitiveness on the global stage.
"Our
clients choose us because we understand exactly what it takes for innovators
and their investors to achieve success, and we deliver it," Platts stated.
HSBC
Innovation Banking plans to combine deep sector expertise,
custom client service, robust financial strength, and worldwide reach to support its
client base, consisting of approximately 3,000 innovation businesses and funds
in the UK. The aim is to foster growth aspirations of tech and life science
companies.
The new
division comprises over 650 UK employees and employees in the Nordic region, while a
specialized team of more than 40 personnel has been assembled across the United States. In
addition, a few dozen newly recruited bankers will join the offices in Tel
Aviv and Hong Kong.
The
deposit-holding legal entity for HSBC Innovation Banking in the UK has been named
HSBC Innovation Bank Limited, which was formerly known as Silicon Valley Bank UK
Limited. This entity will continue to operate separately as a subsidiary,
maintaining its headquarters at the London offices. The HSBC Innovation
Banking brand is gradually expected to roll out in the upcoming months globally.
Meanwhile, HSBC Bank USA has been hit with a penalty of $45 million by the US derivatives industry regulator for purportedly allowing 'manipulative and deceptive trading' among its traders and neglecting to maintain records of its business communications. The Commodity Futures and Trading Commission (CFTC) disclosed the financial sanctions in May, confirming that it had reached an agreement with the subsidiary of the multinational British banking corporation.
HSBC
announced the launch of its HSBC Innovation Banking division today (Monday),
integrating the formerly independent Silicon Valley Bank UK (SVB UK) and
initiating dedicated innovation teams in the US, Hong Kong, and Israel. This manoeuvre
aims to bolster a global, interconnected, specialized banking offering to cater
for a wide array of innovative companies and their investors.
From SVB UK to HSBC
Innovation Banking
The
unveiling took place at London Tech Week, an event focusing on innovation and
new technologies. This confirmed the speculation by Sky News in late May that HSBC
would want to use the acquired institution as an innovation-focused unit.
HSBC
acquired the British division of defunct SVB in March for a mere UK pound after US authorities forced the institution to cease further operations a few
days earlier. This subsequently caused panic in the global banking markets. At the time of the
acquisition
Acquisition
Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There
Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There
Read this Term, SVB UK held deposits worth £6.7 billion and granted loans valued at
£5.5 billion, recording a pre-tax profit of £88 million in 2022.
However, information
provided during London Tech Week, indicates that the unit's operational profile
will be transformed into HSBC Innovation Banking. Soon, SVB UK will
focus on providing services to a few thousand innovative companies in the UK
and worldwide.
"HSBC
now has a world-class team focused on innovation companies, their founders, and
their investors," Noel Quinn, the Chief Executive Officer of HSBC, commented.
On top of that, he mentioned the importance of the tech and life sciences sector to the
global economy and highlighted the bank's intention to amplify these
capabilities.
The UK
Prime Minister, Rishi Sunak, gave his nod of approval, celebrating HSBC
Innovation Banking as a resource that will empower innovative companies to
harness their potential, generate more employment, and seize new global
opportunities.
"The
UK is home to world-leading tech and life sciences sectors, and I am proud of
the role the British government has played in securing their future and
enabling them to thrive," Sunak added.
HSCB Innovation Banking to
Boost Startups
Erin
Platts, the Head of HSBC Innovation Banking in the UK, explained the role of
the new division as a catalyst for UK innovation businesses, facilitating their
growth and competitiveness on the global stage.
"Our
clients choose us because we understand exactly what it takes for innovators
and their investors to achieve success, and we deliver it," Platts stated.
HSBC
Innovation Banking plans to combine deep sector expertise,
custom client service, robust financial strength, and worldwide reach to support its
client base, consisting of approximately 3,000 innovation businesses and funds
in the UK. The aim is to foster growth aspirations of tech and life science
companies.
The new
division comprises over 650 UK employees and employees in the Nordic region, while a
specialized team of more than 40 personnel has been assembled across the United States. In
addition, a few dozen newly recruited bankers will join the offices in Tel
Aviv and Hong Kong.
The
deposit-holding legal entity for HSBC Innovation Banking in the UK has been named
HSBC Innovation Bank Limited, which was formerly known as Silicon Valley Bank UK
Limited. This entity will continue to operate separately as a subsidiary,
maintaining its headquarters at the London offices. The HSBC Innovation
Banking brand is gradually expected to roll out in the upcoming months globally.
Meanwhile, HSBC Bank USA has been hit with a penalty of $45 million by the US derivatives industry regulator for purportedly allowing 'manipulative and deceptive trading' among its traders and neglecting to maintain records of its business communications. The Commodity Futures and Trading Commission (CFTC) disclosed the financial sanctions in May, confirming that it had reached an agreement with the subsidiary of the multinational British banking corporation.
