HSBC launches innovation banking division, expanding into technology and life sciences

HSBC, the FTSE 100 lender, has announced the establishment of a new global division called Innovation Banking, signaling its entry into the technology and life sciences sectors.

The initiative includes the integration of the former UK arm of Silicon Valley Bank (SVB), which HSBC rescued earlier this year.

The launch of Innovation Banking took place at the onset of London Tech Week, with a strategic focus on SVB UK and the formation of innovation teams in the United States, Israel, and Hong Kong. This global expansion reflects HSBC’s commitment to providing a specialized and internationally connected banking proposition to support a diverse range of innovative businesses and their investors.

HSBC stated that the new division will offer a comprehensive suite of services tailored to the needs of innovation-driven enterprises. The objective is to provide dedicated support and banking solutions that cater to the unique requirements of companies operating in the technology and life sciences sectors.

HSBC group chief executive Noel Quinn said: “The UK’s world-leading technology and life sciences sectors are central to growing the UK economy and boosting global exports.

“HSBC now has a world-class team focused on innovation companies, their founders and their investors.

“We will protect this specialism and take it to the next level by combining these capabilities with our financial strength and global reach.”

The new division has more than 3,000 customers across the UK, focused on the tech and life sciences sectors.

Erin Platts, the former CEO of SVB UK, has been appointed to lead the Innovation Banking UK division within HSBC. Platts brings a wealth of experience in fostering growth and enabling innovation in the technology and life sciences ecosystem.

In March of this year, HSBC acquired SVB UK for a nominal fee of £1 after Silicon Valley Bank faced challenges in the United States, prompting concerns about a potential global financial crisis. The move demonstrated HSBC’s commitment to supporting and fostering innovation in the UK market, while leveraging the expertise and capabilities of SVB’s former UK arm.

By launching Innovation Banking, HSBC aims to strengthen its position as a global banking leader and expand its offerings to encompass the fast-growing technology and life sciences industries. With a presence in key innovation hubs across three continents, the bank is well-positioned to provide comprehensive financial services tailored to the unique needs of these dynamic sectors.