27 April 2017
Find out more

HSBC offshores 200 IT jobs; closes 62 branches

24 January 2017  |  4756 views  |  0 HSBC Branch 4

HSBC is offshoring around 200 UK IT jobs to India, China and Poland and shutting 62 branches with the loss of another 180 positions.

The 204 tech job losses are part of a massive cost reduction plan unveiled back in 2015, which resulted in 800 Brits losing their IT positions last year, replaced by cheaper labour overseas.

Similarly, the branch closures are the final part of a "restructuring" programme which has seen HSBC close more than a quarter of its UK sites in the last two years. Having already planned to shut 55 branches this year, the additional 62 brings the total number set to close to 117, leaving a network of 625.

HSBC says that over the past five years, the number of customers using branches has fallen by almost 40%. More than 90% of customers’ contact with the bank is now completed via the telephone, internet or smartphone, and 97% of cash withdrawals are made via an ATM.

With this in mind, HSBC is focusing its spending on digital channels, earmarking $1 billion globally to boost its mobile and online services. The bank is also stressing that customers can carry out day-to-day banking at 11,600 Post Office locations thanks to an industry-wide deal announced just today.

Francesca McDonagh, head, retail banking and wealth management, UK and Europe, HSBC, says: "The way our customers bank with us is changing. More customers are using mobile and internet banking than ever before, innovation such as Touch and Voice ID has proved extremely popular, and fewer people are using branches.

"The decision to close these branches ensures a more sustainable branch network for the future as we continue to invest in our digital platforms and our people. We will have fewer but better branches, with more empowered front line colleagues using a greater range of technology to support all our customers' needs."

However, Unite the Union has slammed the latest job losses. Dominic Hook, Unite national officer, says: "Unite is deeply concerned that this large branch closure programme will be devastating not only for staff but also for the loyal HSBC customers who will lose their community branch."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UK banks strike branch banking deal with Post Office

UK banks strike branch banking deal with Post Office

24 January 2017  |  8944 views  |  1 comments | 29 tweets | 48 linkedin
HSBC forms tech advisory board

HSBC forms tech advisory board

17 January 2017  |  8905 views  |  0 comments | 22 tweets | 24 linkedin
HSBC looks to Shoreditch for fintech hub - Bloomberg

HSBC looks to Shoreditch for fintech hub - Bloomberg

23 September 2016  |  7474 views  |  0 comments | 12 tweets | 3 linkedin
Smile please, you're on HSBC

Smile please, you're on HSBC

05 September 2016  |  7539 views  |  3 comments | 11 tweets | 24 linkedin
HSBC to shutter half of Indian branch network

HSBC to shutter half of Indian branch network

20 May 2016  |  7861 views  |  3 comments | 3 tweets | 6 linkedin
HSBC to cut 850 IT jobs in UK

HSBC to cut 850 IT jobs in UK

16 May 2016  |  8234 views  |  0 comments | 10 tweets | 13 linkedin
HSBC closes 'branch for the rich'

HSBC closes 'branch for the rich'

28 August 2015  |  7812 views  |  1 comments | 12 tweets | 6 linkedin
HSBC to slash jobs and overhaul IT

HSBC to slash jobs and overhaul IT

09 June 2015  |  9312 views  |  6 comments | 16 tweets | 10 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
visit vasco.com/news/PSD2-compliant-solutionsvisit dh.comFind out more

Top topics

Most viewed Most shared
hands typing furiouslyBitcoin ETF Bites the Dust, Needs More Sec...
14607 views 0 | 7 tweets | 7 linkedin
BBVA runs live funds transfers over RippleBBVA runs live funds transfers over Ripple
11920 views comments | 32 tweets | 20 linkedin
Alipay and WeChat near $3 trillion payments milestoneAlipay and WeChat near $3 trillion payment...
10064 views comments | 35 tweets | 38 linkedin
Coinbase plans Ethereum messaging appCoinbase plans Ethereum messaging app
9118 views comments | 14 tweets | 15 linkedin
EC plans blockchain 'observatory'EC plans blockchain 'observatory'
8483 views comments | 9 tweets | 16 linkedin

Featured job

to 120K base, £300K ote, stock options
London, UK

Find your next job