HSBC unveils Innovation Banking arm centred on former SVB UK business
Banking giant HSBC has launched a new global division, called Innovation Banking, housing the former UK arm of Silicon Valley Bank as part of a push into technology and life sciences.
The FTSE 100 lender unveiled the plans at the start of London Tech Week, with the new division centred on SVB UK – which it rescued earlier this year – and newly created innovation teams in the US, Israel and Hong Kong.
It said the arm will offer a “globally-connected, specialised banking proposition to support a broad range of innovation businesses and their investors”.
Erin Platts, the former boss of SVB UK, will head up the new Innovation Banking UK division, HSBC said.
HSBC bought SVB UK on March 13 for a nominal £1 after SVB failed in the US, sparking fears of a global financial crisis.
The deal was brokered over a weekend as the Government and Bank of England raced to find a buyer for the business amid feats that the UK tech sector would be thrown into chaos if SVB UK went bust.
HSBC said it has taken on a team of bankers and experts across the US, Israel and Hong Kong to add to the 650 UK employees it took on as part of its rescue takeover of SVB UK.
In the US, HSBC has put together an innovation team of more than 40 across the Bay Area, Boston and New York City.
In Israel, more than 20 newly recruited bankers will be based in Tel Aviv, while it also has around a dozen bankers in Hong Kong for the new unit to cover Hong Kong and Asia-Pacific.
HSBC group chief executive Noel Quinn said: “The UK’s world-leading technology and life sciences sectors are central to growing the UK economy and boosting global exports.
“HSBC now has a world-class team focused on innovation companies, their founders and their investors.
“We will protect this specialism and take it to the next level by combining these capabilities with our financial strength and global reach.”
Prime Minister Rishi Sunak, who is also speaking at the opening of London Tech Week on Monday, said: “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.
“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.”
The new division has more than 3,000 customers across the UK, focused on the tech and life sciences sectors.