HSBC’s Silicon Valley Bank UK acquisition raises Hong Kong lender’s tech profile with clients, start-ups
- SVB UK, which was acquired for £1 and rebranded HSBC Innovation Banking, is furthering digital innovation at HSBC and expanding the bank’s global footprint
- HSBC arranged a three-day tailored programme in California last week for its Asian private bank clients to meet Silicon Valley start-ups and venture capitalists
Just over a year after HSBC Holdings acquired the UK unit of Silicon Valley Bank (SVB) for £1 (US$1.27), wealthy customers from Hong Kong and the rest of Asia are keenly exploring investment opportunities in tech start-ups, according to a senior HSBC executive.
HSBC, the biggest lender in Europe and Hong Kong, bought Silicon Valley Bank UK in March last year after its US parent collapsed following a run on the bank. Three months later, the newly acquired unit was rebranded HSBC Innovation Banking.
Although the acquisition was in the UK, it stirred interest among HSBC’s wealthy clients for potential investment opportunities with SVB’s start-up customers. Before its collapse, SVB was a go-to bank for Silicon Valley start-ups since the 1980s.
“After we acquired Silicon Valley Bank UK, many of our high-net-worth customers started to show an interest in the bank and its start-up clients,” said Maggie Ng, head of wealth and personal banking at HSBC Hong Kong.
The acquisition is promoting digital innovation at HSBC and also leveraging the bank’s global footprint, she said, adding that it has gained direct access to SVB’s platforms to connect with start-up clients.
Silicon Valley is home to some of the world’s largest technology companies, including Apple, Google and Meta. The tech hub has 63 unicorns – start-ups with a valuation of at least US$1 billion. It is one of the wealthiest regions in the world, with 84 billionaires reportedly living there. The presence of many innovative start-ups has also attracted large venture capital firms to set up there.
