- HSBC unveiled a new unit of HSBC Innovation Banking on Monday as it looks to enter the technology sector following its last-minute rescue of the UK subsidiary of failed SVB.
- Launched at London Tech Week, the division will bring together SVB UK and newly formed teams in the US, Israel and Hong Kong as it focuses on technology and life sciences companies.
- The unit represents HSBC’s “globally connected and specialist banking proposition to support a wide range of innovation businesses and their investors,” the bank said on Monday.
The CEO of HSBC UK tells CNBC how the bank bought the UK unit of Silicon Valley Bank.
Nurfoto | Nurfoto | fake images
UK banking titan HSBC unveiled a new unit of HSBC Innovation Banking on Monday as it looks to enter the technology sector following its last-minute bailout of the UK subsidiary of failed Silicon Valley Bank (SVB) in March.
HSBC bought London-based unit SVB for £1 after its parent company suffered a run on its assets fueled by customer fears about the bank’s solvency. SVB was one of several US and European lenders that suffered their downfall earlier this year as broader turmoil rocked the global banking sector.
The UK government and the Bank of England eased the purchase in a bid to protect deposits as Britain struggles to maintain its position as international technology capital.
Some have questioned whether traditional financial institution HSBC is well positioned to take over SVB’s legacy and finance technology-focused startups and small businesses.
The criticism was shot down last week by HSBC UK CEO Ian Stuart, who told CNBC’s Arjun Kharpal that the bank would take its business “from seed funding to initial public offering, customers will never have to get out of that network to meet their funding requirements.”
HSBC said on Monday that its Innovation Banking unit, launched at London Tech Week, will bring together SVB UK and newly formed teams in the US, Israel and Hong Kong, as it focuses on technology and science companies. life.
“The UK’s world-leading technology and life sciences sectors are critical to growing the UK economy and boosting global exports,” HSBC Group Chief Executive Noel Quinn said in a statement on Monday. .
“HSBC now has a world-class team focused on innovative companies, their founders and their investors. We will protect these specialties and take them to the next level.”
British Prime Minister Rishi Sunak said the new HSBC division will help innovative companies and create additional jobs, “supporting my priority of growing the UK economy and consolidating our position as a science and technology superpower.”
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