topic Re: HSBC Exit US in Credit in the News

HSBC leaving US.

Hex — Mon, 22 Feb 2021 16:03:45 GMT

https://www.cnbc.com/amp/2021/02/22/hsbc-to-announce-exit-from-us-retail-banking-reshuffles-top-jobs.html

Re: HSBC leaving US.

cashorcharge — Mon, 22 Feb 2021 17:51:36 GMT

Interesting...thanks for sharing!

Even though I don't have one, it would make me wonder what happens to all the US credit card holders....not that they can't make payments online but if they pull out, seems that part of banking would go too.

FYI @Aim_High I know you've spoken about them before

Re: HSBC leaving US.

K-in-Boston — Mon, 22 Feb 2021 18:20:43 GMT

Seems to just be retail banking for now, something they have long struggled with in the US and they have previously tried to streamline those operations by focusing on high wealth clients. I don't see any announcements regarding their credit cards, but they only recently entered the US market again, having previously sold the entire credit card portfolio to Capital One in 2011 (who kept the subprime bank card accounts (Orchard Bank, Household Bank, etc.), but sold most of the retail (Best Buy and many others) accounts to CBNA just a few years later).

Since the Premier, Advance, and Elite cards all require varying (and escalating) tiers of banking relationships, I wouldn't be surprised to see those cards discontinued. The Gold and Cash Rewards cards have been rather aggressively marketed and have no banking requirements, so I am sure there are likely a significant number of cardholders who may find themselves with a new issuer in the coming year. Since HSBC avoided the subprime market in lending this time around, that does leave them with quite a few options.

One thing to consider for those with HSBC cards is that the last time HSBC exited the US credit card market, the accounts were marked as closed and then CapOne duplicated the accounts on consumer credit reports retaining the original opening date and account history. Depending on one's AAoA or 5/24 status, that could be a negative if that repeats as these accounts will all be somewhat recent, with many being under 2 years old.

Re: HSBC leaving US.

Aim_High — Mon, 22 Feb 2021 22:46:34 GMT

@cashorcharge wrote:
Interesting...thanks for sharing!
Even though I don't have one, it would make me wonder what happens to all the US credit card holders....not that they can't make payments online but if they pull out, seems that part of banking would go too.

FYI @Aim_High I know you've spoken about them before

Bummer! Thanks for the tag, @cashorcharge. I doubt I would have added one but had studied their cards before for serious consideration. Definitely glad I held off now! As @K-in-Boston said, I would expect them to divest of existing cards.

"Europe's biggest bank is seeking to dispose of a business that has long underperformed."

So in other words they just couldn't compete here. Too many better offerings and better banks.

Re: HSBC leaving US.

blindambition — Mon, 22 Feb 2021 22:28:39 GMT

Haven't been with them since transferred to Cap One a decade ago. The banking and retail landscape continues to be ever changing.

Re: HSBC leaving US.

rooeez — Mon, 22 Feb 2021 22:38:58 GMT

And I just opened an account for the promo... 🙄

Re: HSBC leaving US.

Curious_George2 — Tue, 23 Feb 2021 02:46:43 GMT

@K-in-Boston: Weird. I have had an HSBC card since 2005, and my experience with it doesn't match what you describe. I never knew about the sale of portfolio to Capital One, and I never saw any evidence that my account left HSBC's hands. I just checked an old credit report from 2012 and it doesn't show the account duplicated/transfered as you describe, or anything out of the ordinary. Is it possible they retained some accounts, including mine?

Setting that aside, any speculation about what this news report means for their U.S. credit card business is just that: speculation. Right? The article addresses "retail banking" and talks about branch closures. But it says nothing about credit cards, which I assume are in a separate division of the company from retail banking. I don't have any bank accounts with HSBC, but just today, I recieved an email from them, inviting me to sign up for something called Direct Checking, which they bill as an "easy, no-fee, online-only checking account." Perhaps they are trying to keep just enough of a banking presence here to service their CC holders. Or maybe the marketing department just hasn't gotten the memo yet.

Don't get me wrong -- I dislike HSBC. I only keep the card open because it's old and free. They are the black sheep of my CC issuers and I wouldn't necessary shed any tears if they sold my account... but of course, much depends on who buys it.

Re: HSBC leaving US.

K-in-Boston — Tue, 23 Feb 2021 03:00:21 GMT

Wow. I never fail to learn new things on myFICO! There was even a big thread a few years back on their re-entry to the US CC market. But doing a search after reading your post, indeed they did retain some accounts:

https://ficoforums.myfico.com/t5/Credit-Cards/HSBC-Accts-Close-by-2-24/m-p/1203239

Yes, this is all speculation. They closed a number of branches already and this is just stating that they will likely elect to close the remaining branches.

Re: HSBC leaving US.

rooeez — Tue, 23 Feb 2021 16:47:29 GMT

I did have an old Orchard Bank credit card back in the day when I was first rebuilding. It was sold off to Capital One because I remember the conversion to their platinum card at the time.

The only reason I opted to open the accounts, aside from the bonus, is that they just opened a new branch near my home. Not many around me, but one near my work and one near my home are enough for me. I see all the hate for HSBC, but I guess I'll see for myself. doh!

Re: HSBC leaving US.

4sallypat — Tue, 23 Feb 2021 17:54:01 GMT

I hope it does not affect the HSBC Gold card that I have.

It's been a great 0% balance transfer and purchase card.

Re: HSBC leaving US.

cashorcharge — Wed, 24 Feb 2021 01:09:15 GMT

When I commented, I made the "leap" that credit cards were part of Retail Banking...or tucked under Retail Loans/lending that would be part of banking...similar to mortgage services etc. Guess we'll see...

Re: HSBC leaving US.

FinStar — Wed, 24 Feb 2021 07:13:10 GMT

@Curious_George2 wrote:
@K-in-Boston: Weird. I have had an HSBC card since 2005, and my experience with it doesn't match what you describe. I never knew about the sale of portfolio to Capital One, and I never saw any evidence that my account left HSBC's hands. I just checked an old credit report from 2012 and it doesn't show the account duplicated/transfered as you describe, or anything out of the ordinary. Is it possible they retained some accounts, including mine?

Setting that aside, any speculation about what this news report means for their U.S. credit card business is just that: speculation. Right? The article addresses "retail banking" and talks about branch closures. But it says nothing about credit cards, which I assume are in a separate division of the company from retail banking. I don't have any bank accounts with HSBC, but just today, I recieved an email from them, inviting me to sign up for something called Direct Checking, which they bill as an "easy, no-fee, online-only checking account." Perhaps they are trying to keep just enough of a banking presence here to service their CC holders. Or maybe the marketing department just hasn't gotten the memo yet.

Don't get me wrong -- I dislike HSBC. I only keep the card open because it's old and free. They are the black sheep of my CC issuers and I wouldn't necessary shed any tears if they sold my account... but of course, much depends on who buys it.

@Curious_George2

The Retail Banking piece of HSBC Bank USA, N.A. includes Credit Card loans. Also, keep in mind that while you may still be receiving any direct promotional marketing, it is still business as usual until any final deals have been assessed and completed. So, until an official announcement is made, we can only go by what's been published so far.

Plus, the potential sale/divestiture is addressing the exit from a specific Line of Business, in this case the Retail Banking and Wealth Management side (and it includes CCs). Currently, HSBC Bank USA, N.A. is grouped into the following 4 LOBs:

Retail Banking and Wealth Management

Commercial Banking

Global Banking and Markets

Private Bank

Also, the following article points out:

"But HSBC's commentary that the U.S. is integral to its global corporate and institutional businesses, along with media reports, suggests that a more modest divestiture is possible. The wealth and personal banking business at HSBC USA Inc. had $48.48 billion in deposits and $23.82 billion of loans at Sept. 30. At the right price, an operation like that might be of interest to a range of regional banks such as U.S. Bancorp, Citizens Financial Group Inc., KeyCorp and M&T Bank Corp., Keefe Bruyette & Woods analyst Brian Klock said."

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/major-overhaul-underway-possible-hsbc-sale-in-us-invites-speculation-on-buyers-61601159

Re: HSBC leaving US.

M_Smart007 — Sat, 27 Feb 2021 23:38:57 GMT

Tagging @Anonymous for this topic.

Re: HSBC leaving US.

Ah-Chew228 — Thu, 25 Mar 2021 00:42:15 GMT

To be honest, I am a bit disappointed. I opened a Premier checking with them early last year, and have not had any negative experiences with them. Since the initial checking, I have been approved for their Elite and Advance MCs and opened two Premier savings, in addition to the high yield (not so high anymore) online savings.

Re: HSBC leaving US.

VPExecutive — Tue, 06 Apr 2021 00:10:25 GMT

@Ah-Chew228 wrote:
To be honest, I am a bit disappointed. I opened a Premier checking with them early last year, and have not had any negative experiences with them. Since the initial checking, I have been approved for their Elite and Advance MCs and opened two Premier savings, in addition to the high yield (not so high anymore) online savings.

Have you ever used their online banking? That's reason enough not to bank with HSBC alone.

HSBC US sells retail banking, loans, and credit cards to Citizens Bank (RI)

Anonymous — Thu, 27 May 2021 11:40:33 GMT

Bummer. Recently opened a deposit account and travel card with HSBC. I knew a sale was a possibility, but I figured there was a decent chance that whichever bank purchased the accounts would have similar or better products.

Citizens may be good to their deposit account customers, but they don't do much with their cards: one has 1.8% flat cash back, and the other is a low APR no-reward card. That's it. I'll be hanging on until I collect the sign-up bonuses, but this is probably the excuse I needed to migrate to PenFed.

HSBC exits US mass market retail banking - About HSBC | HSBC USA

Re: HSBC US sells retail banking, loans, and credit cards to Citizens Bank (RI)

Brian_Earl_Spilner — Thu, 27 May 2021 13:04:03 GMT

I'm not surprised. Despite being one of the largest banks in the world, they did a poor job of acquiring business in the U.S.

Re: HSBC US sells retail banking, loans, and credit cards to Citizens Bank (RI)

KatSoDak — Thu, 27 May 2021 14:28:02 GMT

Just read every article I could find regarding the sales to Citizens and Cathay. Nothing mentioned about credit cards.

Are you sure HSBC is exiting U.S. market on credit cards?

Re: HSBC US sells retail banking, loans, and credit cards to Citizens Bank (RI)

Anonymous — Thu, 27 May 2021 15:25:09 GMT

It's confusing because HSBC doesn't refer to credit cards specifically . . . they just mention they are selling $2.2B in loans to Citizens.
(edit: and $800m to Cathay)

But if you look at the Citizens website, they provide a more detailed breakdown of that $2.2B. It sure looks like they're buying credit card accounts from HSBC.

2021-branch-acquisition-presentation-final.pdf (citizensbank.com)

Re: HSBC US sells retail banking, loans, and credit cards to Citizens Bank (RI)

Anonymous — Thu, 27 May 2021 15:21:19 GMT

@Anonymous wrote:
Bummer. Recently opened a deposit account and travel card with HSBC. I knew a sale was a possibility, but I figured there was a decent chance that whichever bank purchased the accounts would have similar or better products.

Citizens may be good to their deposit account customers, but they don't do much with their cards: one has 1.8% flat cash back, and the other is a low APR no-reward card. That's it. I'll be hanging on until I collect the sign-up bonuses, but this is probably the excuse I needed to migrate to PenFed.

HSBC exits US mass market retail banking - About HSBC | HSBC USA

In remembering back to around 2008 ... HSBC made foot prints in the sand leaving the United States. At the time I was a customer and did well with them. To no avail however, much of their US business went to and FI in the United States (that actually had headquarters elsewhere). Before the transfer of customers, I closed all my HSBC relationships. Very surprised they came back and here we are again, in a somewhat similar situation. Interesting!