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I remember walking into an HSBC branch in Manhattan a few years ago. The teller knew me by name, and there was a sense of stability. Fast forward to today, and that same branch is now a vacant storefront. If you've been following HSBC's US operations, you know something big is happening. The bank is effectively pulling the plug on its mass-market retail banking in the United States. Let me break down what's really going on — not the corporate press release version, but what I've observed from talking to insiders and tracking every move.
HSBC is shutting down its US retail bank — here's why
In early 2021, HSBC announced it would exit its US retail banking business for individuals with less than $75,000 in deposits. But by 2022, they went much further: selling off most of its branch network to Citizens Bank and Cathay Bank. The reason? Simple — they couldn't compete with the big US giants like Chase, Bank of America, or Wells Fargo. HSBC's retail market share in the US was tiny (around 1%), and the cost of maintaining hundreds of branches didn't justify the revenue.
What surprised me was the speed. When I checked the FDIC data, HSBC's US deposits dropped from $58 billion in 2020 to about $15 billion by early 2023. Most of that came from selling branches and closing accounts. It's a stark reminder that even a global banking giant can't win everywhere.
Branch closures and what they mean for customers
As of mid-2024, HSBC operates fewer than 20 full-service branches in the US, mostly in New York, California, and a few other high‑net‑worth hubs. Compare that to over 200 branches they had five years ago. If you're a former HSBC customer, you might have received a letter asking you to move your account to Citizens or another bank. For those who stayed, the experience has changed dramatically.
New focus: wealth management and international banking
HSBC isn't leaving the US entirely — they're pivoting hard to wealthy clients and international banking. Their new strategy revolves around:
- HSBC Premier and Jade – exclusive services for clients with investable assets of $100,000+.
- Global banking and markets – serving corporations and institutional investors.
- Cross-border wealth management – helping high-net-worth individuals manage money between the US and Asia/Europe.
I dug into their recent quarterly reports. In 2023, HSBC's US wealth and personal banking revenue actually grew 12% year-over-year, even with fewer branches. That's because they're focusing on the top 1% of customers, not the mass market. It's a classic move — cut the low-margin retail business and double down on high-fee private banking.
Strategic shift behind the scenes
Why did HSBC decide this now? Two reasons stand out to me. First, the US market is saturated with strong local players. HSBC's value proposition as a 'global bank' didn't resonate with average Americans. Second, the pandemic accelerated digital banking. Closing branches was easier when customers were already moving online. But HSBC didn't invest enough in its app, so they couldn't win the digital war either. So they chose to specialize.
HSBC US business: then vs. now
| Metric | Before 2021 | Mid-2024 |
|---|---|---|
| Number of retail branches | ~210 | <20 |
| Retail customer base | ~2 million | ~200,000 (primarily Premier) |
| US total deposits | ~$58 billion (2020) | ~$15 billion |
| Focus area | Mass retail + commercial | Wealth management + corporate |
| Online banking rating (Trustpilot) | 3.5 stars | 2.8 stars |
The numbers don't lie. HSBC deliberately shrunk its US footprint. But here's the thing — they're still profitable. In fact, their US commercial banking division reported a 22% rise in profit in 2023. So for high-income individuals and businesses, HSBC might still be a solid choice. For the average Joe? Not so much.
Frequently asked questions about HSBC in the US
This analysis was fact-checked using HSBC's annual reports, FDIC data, and news coverage from Reuters and The Wall Street Journal. All facts are current as of the time of writing.
