HSBC has revealed it will launch a new global “Innovation Banking” division today centred on the former UK arm of Silicon Valley Bank (SVB), which it rescued from collapse in March.
SVB UK was snapped up for £1 in an eleventh hour deal by HSBC in March after being brought down by a run on its assets by customers.
In a statement today, the bank said it would launch a new global banking division housing both the former SVB UK as well as newly created innovation teams in the US, Israel and Hong Kong.
The new offer will offer a “globally-connected, specialised banking proposition to support a broad range of innovation businesses and their investors”, HSBC said.
“Our new innovation teams will be there to support our clients’ international growth at every step,” HSBC chief Noel Quinn added.
The former boss of SVB UK Erin Platts, who was at the helm when the firm collapsed in March, will stay on to head up the new Innovation Banking UK division.
Platts and HSBC bosses are set for a major charm offensive at London Tech Week this week as they look to win round tech firms and political figures to the new banking brand. Platts and HSBC UK boss Ian Stuart are set to speak together at the first day of the flagship event today.
In a statement today, the Prime Minister, Rishi Sunak, said the new firm would help fuel the UK’s start-up sectors.
“HSBC Innovation Banking will help innovative businesses to unlock their potential, create more jobs and access new global opportunities – supporting my priority to grow the UK economy and cement our position as a science and tech superpower,” said Sunak.
HSBC’s move to buy SVB UK was roundly welcomed by political and tech chiefs who saw the deal as bringing stability to scores of start-ups across the country who had all their cash tied up in the bank.
One customer of SVB UK told City A.M. yesterday they had kept all their money in the bank because of HSBC’s involvement.