HSBC rejects Midland name for new Birmingham ring-fenced operation

HSBC has rejected calls in Birmingham to name its new UK ring-fenced bank after the region which spawned it.

Hopes were high that the bank would revert to the ‘Midland Bank’ brand following its decision to relocate to Birmingham from London.

Midland Bank, which was founded in the city in 1836, was acquired by HSBC in 1992.

However, in a statement the bank said it would be branding its new operation ‘HSBC UK’.

Many felt the Far Eastern connections with the current brand might damage its reputation locally and as a show of solidarity with Birmingham revert to the Midland brand, which has historic connections to the region.

The bank said it had opted for HSBC UK following a consultation with retail, private and commercial banking customers, as well as customer-facing staff. It said adding ‘UK’ would help distinguish the ring-fenced bank from the non-ring-fenced bank.  

“Feedback indicated that the HSBC brand represents strength and connectivity, supporting the domestic and international ambitions of our customers,” said the bank.

The new brand will be rolled out across the UK from January 1, 2018, one year before ring-fencing legislation comes into effect.

Stuart Gulliver, HSBC Group CEO said “As outlined at our Investor Update in June, setting up the UK ring-fenced bank in Birmingham is a key strategic action for the group. Our ambition is to be the bank of choice in the UK and as a name, HSBC UK will build on the global connectivity and customer trust of the HSBC brand and differentiate us in a competitive market.”

The relocation to the bank to a new site at Arena Central is expected to see 1,000 additional jobs created in the city.