HSBC rebrands SVB UK

HSBC, Europe’s largest bank, is set to reveal a new name for the technology-focused bank it rescued earlier this year following the collapse of its US parent. Silicon Valley Bank UK (SVBUK) will be rebranded as HSBC Innovation Banking, with the announcement expected to coincide with London Tech Week starting on 12 June.

However, some entrepreneurs have expressed concerns that the operational independence that made SVBUK distinctive in the SME banking market could be compromised by aligning it with the HSBC brand. HSBC’s CEO, Noel Quinn, has emphasised the importance of preserving the rescued business’s culture after stepping in to save it from insolvency for £1.

The Bank of England orchestrated the deal, and Prime Minister Rishi Sunak was personally involved. SVBUK has a significant number of clients, and many had warned that its failure would jeopardise the UK’s start-up economy. They called it an “existential threat” and criticised the Bank of England’s assessment of limited impact on the wider economy.

Despite the rebranding, there are no immediate changes planned for SVBUK’s executive leadership. Erin Platts will remain as the chief executive, and Darren Pope is expected to continue as the independent chairman, at least for the time being. HSBC recently appointed three senior figures as directors, two months after acquiring the US-owned lender.

SVBUK, which employs around 700 people in the UK, is a profitable business but was brought to the brink of collapse due to the challenges faced by its American parent company. HSBC’s decision to pay nearly £20 million in bonuses to SVBUK staff signals confidence in the subsidiary’s talent base and aims to retain key employees.