Europe’s largest lender will next month announce that SVBUK will be renamed HSBC Innovation Banking, Sky News reports.
Via Mark Kleinman, City Editor @MarkKleinmanSky
Monday 29 May 2023 16:45, United Kingdom
Next month, HSBC will announce a new name for the tech-focused bank it rescued earlier this year after its US parent company collapsed.
Sky News learned that Europe’s largest lender intends to rebrand Silicon Valley Bank United Kingdom (SVBUK) under the name HSBC Innovation Banking.
The new identity is expected to be announced to coincide with London Technology Week, which begins on June 12.
One tech veteran said this could raise concerns for entrepreneurs that by carrying SVBUK under the HSBC brand, the new subsidiary risks giving up the operational independence that has given it a presence. especially in the SME banking market.
Noel Quinn, chief executive of HSBC, spoke of the need to preserve the culture of a business it entered rescue for £1 when it was on the verge of bankruptcy.
The Bank of England orchestrated the deal, with Prime Minister Rishi Sunak also personally involved.
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SVBUK has thousands of customers, many of whom have joined forces to warn the government that its collapse would jeopardize Britain’s nascent economy.
They warned of an “existential threat to the UK’s tech sector”, adding: “The Bank of England’s assessment that the SVB will have limited impact on the UK economy shows that dangerous ignorance about the sector and its role in the broader economy, both today and in the future.”
Senior leadership remains the same
Sky News recently revealed that HSBC has appointed a trio of senior figures as directors, two months after its acquisition of the US-owned lender.
No imminent changes to SVBUK’s executive leadership are planned, with Erin Platts remaining chief executive.
SVBUK Independent Chairman Darren Pope is also expected to stay in place, at least for the time being.
In the United States, SVB was temporarily converted into public ownership following a bank run-in due to a crisis of depositors’ confidence.
It was later sold to First Citizens Bancshares, a US regional lender.
Sky News revealed in March that HSBC had signed the payment just under £20 million in prize money for SVBUK employees.
An insider said at the time that the bonuses were a signal that HSBC believed in the talent base at its new subsidiary and that it was keen to honor pre-agreed payments. that helps retain key employees.
Employing around 700 people in the UK, SVBUK was a profitable business but was pushed to the brink of collapse by the difficulties of its parent company in the US.