History of HSBC
Thomas Sutherland, in 1865 established the Hong Kong and Shanghai bank (now called HSBC) in the city of Hong Kong to allow people to access organised banking services. HSBC was the first locally-owned bank that operated according to Scottish banking principles. In the following decade, HSBC branched across several continents. Over time, HSBC became a banking powerhouse up to a point when it started providing financial loans for infrastructure projects to even national governments.
The 1941 World War tumbled several nations’ development progress, Hong Kong being one among them. HSBC played a monumental role in strengthening Hong Kong’s failing economy. In 1992, HSBC started a new Holding company under the name HSBC Holdings that later acquired Midland bank. With this acquisition, HSBC’s headquarters changed from Hong Kong to London in 1992. By acquiring Midland, the largest commercial bank in the United Kingdom, HSBC made more acquisitions, including a US finance company called Household Financial. Besides this, HSBC acquired Banco Bamerindus of Brazil, a significant acquisition in South America.
In 1998, HSBC was fixed on adapting a unified brand, thereby making the hexagonal symbol and HSBC letters. HSBC also became the first foreign bank to set up operations in India and is also known to be the first bank to set up India’s first ATM in 1987 in Mumbai.
Services By HSBC
Listing all of HSBC’s vast range of services is difficult; so, below is a list of some of the essential ones:
- Fixed Deposit
- Recurring Deposit
- Cheque Book Issue
- Online Banking support
- Issue of Credit and Debit cards
- Smart Money accounts
- Cash Withdrawal and Deposit services
- Wealth and Personal Banking
- Global Banking and Markets
Recent Updates On HSBC
As of 2019, HSBC had about 8.5 trillion in assets under custody. Over the past couple of years, HSBC has shut down several branches in India, Britain, etc. In 2020, HSBC also announced 35,000 job cuts. It also announced the exit of the US retail banking by either selling or closing 150 of its remaining branches. HSBC has riveted its focus towards operating in Asia and expanding in the Middle East.
For your banking exam, an understanding of different banks is essential. We hope this article is helpful in learning the full form of HSBC and gives you a little insight into HSBC’s history and current status.