HSBC (HSBA.L) has announced the expansion of its innovation banking business into Singapore, committing $1.5 billion to the city-state. This move is part of a broader global initiative to provide lending services to startup companies. HSBC is a global banking and financial services company, offering a wide range of services to personal, commercial, and corporate clients. The expansion aims to support the growth of technology and healthcare startups in the region.
The innovation banking group was established within HSBC’s commercial bank in 2023, following the recruitment of numerous employees from the collapsed Silicon Valley Bank. Since its inception, the division has grown to encompass over 900 bankers who serve clients across various regions, including the United States, Britain, Australia, New Zealand, Israel, Europe, India, Hong Kong, and mainland China.
Dave Sabow, HSBC’s global head of innovation banking, highlighted the bank’s tailored approach to supporting startups. “We have our own credit policy, our own credit approach to support the needs of these cash-burning businesses,” Sabow told Reuters, emphasising sectors like technology and healthcare. He also pointed to HSBC’s financial stability as an advantage for startups looking for a reliable partner.
HSBC reported significant growth in its innovation banking business during the first half of the year. The number of active clients increased by almost 60%, deposits rose by approximately 50%, and loan commitments grew by around 25%. The bank did not disclose specific figures, but the overall trend indicates a strong performance for the newly established division.
