HSBC has decided to cut small businesses out of their clientele in favour of businesses that are planning on becoming, or already are, international.
The world’s fourth largest bank states that it has been reviewing its portfolio of small and medium sized businesses for more than two years, and that this is a business decision to remove themselves from the small business market.
An excerpt from a Vancouver Sun article states:
HSBC Bank Canada has sold off its retail investment brokerage and closed its consumer finance division as part of the parent company’s strategic review that — according to news reports — has seen it sell or abandon 54 business lines, lay off as many as 30,000 employees and cut costs globally by some $4.1 billion US per year.
While they insist Canada is a priority market, hundreds of small business owners have just received their 60-day notice to find another bank.
Despite the seeming lack of customer service from HSBC, and the tight deadline over the holidays for business owners to flip their finances elsewhere, it isn’t all bad. Regional & local banks and credit unions will see a rise in business as owners move not only their business accounts, but possibly (probably) their personal finances as well, including TFSA and RRSP accounts.
You can read more about it all here [links will open in new window]:
CTV: HSBC Axes Small Business Owners Accounts During Holidays
Do you bank with HSBC?
Have you been affected by this shift?
Can you apply some of the lessons from this to your business?
Share your experience with other HappyBosses in the comments below!
