HSBC is set to announce a new name for the technology-focused bank it saved earlier this year after its US parent company faced a collapse. The unveiling of the new identity is expected to coincide with London Tech Week, commencing on June 12th.
Some industry experts have expressed concerns that rebranding the subsidiary, known as SVBUK, under the HSBC name could jeopardize its operational independence, which had made it a distinctive player in the SME banking market.
Noel Quinn, CEO of HSBC, has emphasized the importance of preserving the rescued business's culture, as HSBC stepped in with a £1 rescue deal when SVBUK was on the verge of insolvency. The Bank of England facilitated the agreement, and Prime Minister Rishi Sunak also had personal involvement.
SVBUK boasts a substantial client base, and many of its clients had united to caution the government that the bank's failure would pose a significant threat to the UK's startup economy. They warned of an "existential threat to the UK tech sector" and criticized the Bank of England's limited understanding of the sector's role in the wider economy.
Following HSBC's acquisition of the US-owned lender, Sky News recently reported the appointment of three senior figures as directors. However, no immediate changes are planned for SVBUK's executive leadership, and Erin Platts will continue as the chief executive. The independent chairman, Darren Pope, is also expected to remain in his position, at least for the time being.
In the US, SVB was temporarily nationalized due to a run on the bank triggered by depositor concerns. It was later sold to First Citizens Bancshares, a regional US lender.
In March, Sky News revealed that HSBC had approved the payment of nearly £20 million in bonuses to SVBUK staff. The bonus payments were seen as a sign of HSBC's confidence in the subsidiary's talent base, and the bank aimed to honor previously agreed payments to retain key employees. Despite facing financial difficulties due to its American parent company, SVBUK remains a profitable business, employing around 700 people in Britain.