HSBC is considering cutting its UK financial adviser numbers by up to two thirds as part of a move towards more digital products.
The bank is currently in a consultation period with staff about the redundancies and said it was unable to comment further in detail at present about the proposed changes.
A spokesperson for the global banking giant told Financial Planning Today that it was investing in its digital services: “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.”
HSBC promoted Nick Elias to lead the wealth management arm’s roll out of a new targeted support proposition in July. At the time of the roll-out, HSBC had 420 advisers on the FCA register with permission to offer investment advice.
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The banking giant has previously warned that wealth management firms should not become too reliant on AI.
Barry O’Byrne, CEO of international wealth & premier banking at HSBC, said in June: “Clients are increasingly using AI to explore their options, but when it comes to making investment decisions, they value judgement, context, and accountability from a trusted wealth adviser.”
Among high-net-worth investors, AI use was higher for finance and investment tasks at 82%. Some 59% said it also made them feel more in control. Less than one in 10 (9%) said AI has not meaningfully changed how they manage their wealth.
Despite increasing use of AI, investors still wanted the judgment of a professional adviser before acting. Four in five (80%) said they were looking for reassurance from their adviser, with 72% citing strategic expertise.