HSBC to Drop 35,000 Jobs and Invest in Digital Finance

Published at: Feb. 19, 2020

In an earnings call held on Tuesday, Feb. 18, an HSBC executive revealed the bank plans to cut 35,000 jobs by the end of 2022 and invest more in digital systems. 

The plan for HSBC in the next three years is to cut down on staff and branches and simplify the operation by investing in technology. Noel Quinn, group chief executive added in the earnings call that: 

“In Retail Banking, we will expand our products offering and increase our investment in digital. We'll refocus our Retail Banking presence to serve globally mobile clients, reducing our branch network in the US by around 30%. [...] We will also continue to invest in the digital systems and solutions that will improve the service we offer our clients.”

$20 billion worth of assets moving to Digital Vault

In earlier indications of what kind of digital transformation HSBC is examining, Cointelegraph reported a few months ago that the bank would implement a new blockchain-based custody platform called Digital Vault by March 2020. 

HSBC plans to move $20 billion worth of assets to the platform and aims to digitize paper-based records of private placements in order to increase standardization and speed up processes in the growing industry. 

HSBC has been preparing itself to adapt the ongoing changes in the banking industry

Back in 2017, the bank appointed a panel of advisors to explore ways to integrate disruptive technologies such as blockchain, artificial intelligence and biometrics into its business model to reduce cost.

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