HSBC: business changes explained as UK bank undergoes major revamp to focus on costs - what it means for you

• HSBC has announced a major global restructuring under new CEO Georges Elhedery
• The bank is simplifying operations into four key business units and two geographic regions
• Commercial and institutional banking divisions will be merged to streamline services
• A new international wealth and premier banking unit is being created
• Separate dedicated businesses for the UK and Hong Kong markets will be also be established
• The changes are aimed at reducing costs and focusing on HSBC’s core strengths

A major British bank with international links and branches around the world has announced a major restructuring of its operations - and will be split into East and West.

Under new CEO Georges Elhedery, HSBC is aiming to cut costs and focus on the bank’s core strengths. The bank has revealed plans to streamline by dividing into four key business units and two East and West geographic regions.

As part of the changes, HSBC will merge its commercial and institutional banking divisions and establish a new international wealth and premier banking unit. The remaining two units will consist of a newly created UK business and a Hong Kong business.

But what does it mean for customers? Will the changes affect those who bank with HSBC in any meaningful way, or is it simply a behind-the-scenes change that will otherwise go unnoticed? Here is everything you need to know.

How will the East and West split work?

HSBC is set to restructure across geographic lines with the formation of “Eastern markets”, which incorporates Asia and the Middle East, and “Western markets”, comprising the UK, Europe and Americas.

The creation of Eastern and Western markets will also see previously standalone divisions, such as Europe and the Americas, come together under one chief executive.

Elhedery, who took on the CEO top job last month, said: “The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged.

“By making these changes, we can better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow.”

The changes are set to take effect from 2025. It has previously been reported that the shake-up will lead to roles axed among its high-paid top bankers, including across the large commercial and investment banking divisions.

What else is changing?

HSBC also announced a leadership reshuffle which included the appointment of Pam Kaur as its chief finance officer, reported to be the first woman to fill the role which was previously held by Elhedery.

Kaur first joined the banking group more than a decade ago. The restructure will see the bank’s executive committee, which makes key decisions for the firm, cut down from 18 members to 12 members.

Why are the changes happening?

The changes come as HSBC aims to cut costs and focus on the bank’s core strengths. Elhedery is said to be targeting cost-savings through the overhaul, thought to amount to up to 300 million US dollars (£231 million).

What do the changes mean for me?

The changes at HSBC are primarily structural and aimed at improving efficiency and focusing on the bank’s most profitable divisions, so they are unlikely to immediately impact day-to-day banking for customers.

But there could be some effects over time, and with the merging of commercial and institutional banking, along with creating the new wealth and premier banking division, could lead to more integrated services and improved customer experience in these segments. Wealth management clients, in particular, may benefit from a more tailored service.

HSBC’s division into East and West, and the establishment of dedicated UK and Hong Kong businesses, also reflects a focus on their strongest regions. For UK and Hong Kong customers, this could mean more attention to local needs and a boost in regional services.

The restructuring aims to reduce costs, so it's possible some customers could notice changes, such as branch closures, reduced services, or increased use of digital banking platforms, especially as HSBC continues to shift toward more online services.

For most everyday banking customers, however, the changes are likely to remain behind the scenes with minimal direct impact; the restructuring is more about making the bank more efficient globally.

We’d love to hear your thoughts on HSBC’s bold restructuring plans! How do you think these changes will impact customers, both in the UK and globally? Share your views in the comments section.