HSBC is set to dramatically scale back the number of UK wealth management employees as it begins to employ artificial intelligence (AI) technology to better serve the likes of rich clients, it announced in the Financial Times. The rearrangement will reduce the number of financial advisers, managers and specialist staff at the firm.
HSBC could eliminate roughly a third of its management and specialist roles in the UK wealth business, according to people familiar with plans cited by the Financial Times.
The reduction among financial advisers could be even larger, reaching about 70%. The bank has not said how many people were affected, but its UK wealth business has hundreds of relationship managers around the country.
The cuts are currently part of a consultation process. Employees affected by the restructuring are expected to leave the bank by the end of October, according to reports.
Reuters said it could not immediately verify the Financial Times report, and HSBC did not reply to the newspaper's request for comment outside of normal business hours.
As such, the change in approach to wealth management is a significant change for HSBC. Technology and AI are being invested in and more digitally enabled services will be provided for the bank as well. HSBC says its wealth business is evolving and is evolving to meet customers’ evolving needs (e.g. the need for digital products and services).
AI has become a key part of CEO Georges Elhedery's strategy of transforming the bank. Elhedery has already said that generative AI could make some of those roles obsolete while creating new opportunities elsewhere in the financial sector.
HSBC has also made efforts to embed AI into its wealth platforms. In August, the bank appointed Nick Elias as Head of Wealth Platforms, Wealth and Premier Solutions to spearhead the bank’s Wealth Transformation Programme and to embed AI in client journeys.
HSBC is also developing Wealth Intelligence, its generative AI platform, which will deliver market insights and personalised investment strategies.
The restructuring follows HSBC’s expansion approach to wealth management. The bank had been keen to build wealth assets rapidly and its client base was growing.
The new plans indicate the growing impact of AI on employment in financial services. Banks are increasingly using AI to automate routine processes, analyse information and support customer-facing employees.
That technology will be beneficial to reduce costs and personalise services but also poses challenges to traditional banking roles and the future of those jobs is in doubt.
HSBC’s planned UK wealth cuts therefore represent yet another significant example of how banks are changing their workforce as AI becomes more deeply integrated into everyday banking operations.
