Amidst a deep and severe recession in the US and Europe, banks have shifted their focus to grow onto the Asian market. Nowhere is this more evident than with HSBC (NYSE: HBC), the European banking leader who is moving their headquarters, and focus to Asia. Along these lines, HSBC has announced plans to move a senior executive to a new role in what appears to be focus on catering to wealthy Asian customers.
Paul Thurston, currently managing director of HSBC’s U.K. business, is being appointed chief executive of retail banking and wealth management and will relocate to Hong Kong. In the role Thurston will have responsibility for directing HSBC’s retail banking business globally and will “lead the development” of HSBC’s retail wealth management business, according to a company statement. “With the massive wealth creation we see in emerging markets today, the logic for HSBC to build a world-class global wealth business for our customers is absolutely compelling,” said Stuart Gulliver, designated to become HSBC’s Group Chief Executive Gulliver was named chief executive after a major management shakeup in September when current CEO Michael Geoghegan quit after being passed over for the chairman’s spot at the bank.
HSBC is not alone in this pursuit. HSBC is one of several global banks that are looking to Asia for new business, especially as rapidly growing local economies create new middle and upper class customers. Earlier this year JPMorgan Chase (NYSE: JPM) said it plans to increase the number of client advisors in Asia by 40%. As regulations have relaxed in recent years, allowing foreign banks to operate and increase ownership stakes, this is likely to be part of a series of moves we shall see in the coming years.
