HSBC is preparing to cut jobs in its UK wealth management business as part of efforts to ramp up the use of artificial intelligence (AI) to serve wealthy customers more efficiently, reports have said.
The bank is in the middle of a consultation period over the proposed changes.
Around half of the wealth division’s management and specialist roles are expected to be cut, while its financial advisers will be reduced by up to around 70%, the Financial Times (FT) reported, citing an anonymous source familiar with the plans.
The FT cited one source describing the cuts as “deep, wide and brutal” and that almost entire teams would be made redundant.
HSBC is thought to have hundreds of relationship managers based across the country. The affected staff are expected to leave the bank at the end of October, according to the reports.
The bank has been investing in technology and group chief executive Georges Elhedery has been an advocate of the use of AI tools to help simplify processes and make things more efficient.
In a blogpost in July, the boss said the bank had been equipping relationship managers with AI to serve customers faster, including a tool that delivers market insights and personalised investment strategies.
It is understood that the bank intends to grow its offering to wealth customers by offering digital products and services, while human advice is utilised for customers with more complex financial needs.
Meanwhile, cost-cutting under Mr Elhedery’s leadership has stripped out some 1.5 billion US dollars (£1.13 billion) worth of costs from the business ahead of schedule, including from reducing duplicate senior management positions.
A spokeswoman for HSBC UK said: “HSBC UK is a long-established, leading UK wealth manager and premium banking provider.
“We’re continuing to evolve to deliver more digitally-enabled products and journeys, to support our best-in-class wealth service and meet the changing needs of our customers.”
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