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HSBC Lowers Financial Advice Fee to 1% for UK Premier Clients

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Key Takeaways

  • HSBC cuts UK advice fee for premier clients to 1%, down from 2.75%, through year-end promotion.
  • The move supports HSBC's push to grow services for mass affluent clients ahead of its 2025 Premier relaunch.
  • HSBC also lowered its investment service threshold to 100K euros and added a VIP Selfridges incentive.

HSBC UK, a subsidiary of HSBC Holdings PLC (HSBC - Free Report) has lowered its financial advice fee for premier customers as a part of promotional discount available until the end of the year.

The bank will now charge a 1% fee (with a minimum of £960) for customers taking advice, down from the typical 2.75% rate previously charged, with some exceptions.

Xian Chan, head of Premier Wealth at HSBC UK, said: “There are numerous scenarios where a customer might benefit from receiving financial advice, for example if they are planning for the long-term, have more sophisticated financial needs, or are facing a life milestone such as buying a home or preparing to retire.”

Rationale Behind HSBC’s Move

The move aligns with HSBC’s broader strategy to boost its offerings for “mass affluent” clients, including the relaunch of its Premier account in February 2025.

The bank recently reduced the minimum asset requirement to access its premier investment management service from £250,000 to £100,000. Additionally, it has introduced a switching incentive for new premier customers, offering eligible individuals a “VIP shopping experience” at Selfridges, which includes a £500 gift card and other perks.

Moreover, earlier this month, HSBC UK Private Banking adopted Addepar platform to enable wealth managers to provide robust services to ultra and high net worth clients. In mainland China, HSBC is growing its wealth business through lifestyle-focused centers and acquisitions like Citigroup’s retail wealth arm, digital upgrades and hiring talent.

HSBC Price Performance & Zacks Rank

Over the past six months, shares of HSBC have rallied 19.7%, underperforming the industry’s growth of 24.6%.

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Currently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Efforts to Expand Offerings by Other Finance Firms

Earlier this month, Carlyle Group Inc. (CG - Free Report) announced a collaboration with Citigroup Inc. (C - Free Report) to expand asset-backed financing opportunities within the fintech specialty lending space.

The collaboration will integrate Carlyle’s extensive investment network with the expertise of Citigroup’s Spread Products Investment in Technologies team, a leading venture equity investor in fintech specialty lending.

Similarly, U.S. Bancorp (USB - Free Report) entered a partnership with Fiserv to integrate its Elan Financial Services credit card program into the latter’s Credit Choice solution. The collaboration aims to enhance digital card issuance capabilities, providing financial institutions with a seamless, integrated experience.

The integration of Elan’s credit card program into Fiserv’s Credit Choice solution strengthens USB’s digital-first strategy. This integration will enable consumers and small businesses to access both debit and credit card account details within a unified digital platform for consumers and small businesses. This will create a better user experience, allowing customers to manage both types of cards in one place.


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