HSBC CEO vows Silicon Valley Bank UK won’t halt startup focus during expansion.

The CEO of HSBC UK, Ian Stuart, has announced that Silicon Valley Bank UK will continue to serve startups as usual, despite the recent acquisition. Stuart has stated that Silicon Valley Bank will maintain its processes and business without any disruption.

At the Money 20/20 fintech conference in Amsterdam, Stuart assured CNBC’s Arjun Kharpal that Silicon Valley Bank would be protected. He stated:

“We are going to keep it ringfenced within our own ringfenced bank. It will have its own board, it will have its own risk policies. We are going to protect what it’s got today.”

Although there has been general anxiety about the takeover, Stuart has assured customers that they will continue to receive the same services without any difference. Many have expressed concern that a traditional financial institution like HSBC may not be the best fit for serving startups, such as Silicon Valley Bank did. Stuart has stated that the plan is to “be global very, very quickly,” with infrastructure in Israel, the Middle East and Asia, the US, and the UK. According to a Sky News report, HSBC will rebrand Silicon Valley Bank UK as “HSBC Innovation Banking.” The new brand is expected to be announced on June 12 as the London Tech Week kicks off.

HSBC Acquired UK Arm of Silicon Valley Bank for 1 Pound

HSBC Silicon Valley acquired Silicon Valley Bank UK following the Silicon Valley parent’s recent collapse. At the time of the official London Stock Exchange announcement, Silicon Valley Bank UK had around £6.7 billion in deposits and about £5.5 billion in loans. The estimate for the bank’s tangible equity was £1.4 billion. In addition, the announcement said the bank had £88 million in profit before tax for the financial year ending December 31, 2022.

HSBC was one of a few institutions interested in Silicon Valley Bank UK. Global clearing organization Bank of London also sent an offer to the failed bank and submitted proposals to the Bank of England and the Treasury. Reportedly, SoftBank subsidiary OakNorth Bank was also interested in the acquisition, along with Abu Dhabi investment and holding company ADQ.

North Carolina-based First Citizens Bank acquired Silicon Valley Bank in the US following the collapse. A US Federal Deposit and Insurance Corporation (FDIC) statement noted that First Citizens would also acquire all loans and deposits. The statement also said that the Silicon Valley Bank failure will cost the FDIC’s Deposit Insurance Fund (DIF) around $20 billion.

First Citizens planned to reopen at least 17 former Silicon Valley branches as First Citizens Bank and Trust Company.