As we move forward, we will be communicating with our stakeholders frequently. The 80 branch purchase includes 66 locations in the New York City Metro area, 9 locations in the Mid-Atlantic/Washington D.C. area, and 5 locations in Southeast Florida. Roughly 63% of the acquired HSBC deposits are in the New York metro area. Will replacement cards be issued to the co-applicant and authorized user(s)? Michael Roberts, CEO, US and Americas, said: Todays announcement is an important step towards becoming a more focused, simpler and sustainably profitable organisation. Will my PF|CP account have an annual fee? In February 2020, we set out a plan to shift our business strategy in the United States to maximize the connection between our clients and our world-class international network. The deals are expected to close in the first quarter of 2022. As a result of this new focus for HSBC in the U.S., we are streamlining parts of. Additionally, the transactions have no impact on the investment relationships for our qualifying Premier customers, our Jade customers or our Private Banking customers. Where will HSBC Bank Wealth Centers be located? HSBC Commercial Banking customers who utilized Night Drop have been notified and can contact their Relationship Manager or branch team to learn about steps to take to continue Night Drops. HSBC used to have two systems - online and mobile banking - and two sets of terms and conditions. To renew our emphasis on international wealth management from globally mobile and affluent individuals, HSBC Bank Wealth Centers will be designed to provide banking and wealth services to our. What is the impact on my investment or insurance relationships? "We remain a global international bank. Noel Quinn, Group Chief Executive of HSBC, said: We are pleased to announce the sale of the domestic mass market of our US retail banking business. Yes, you will maintain that rate as long as you meet the eligibility requirements. Representatives are available 8:30am-4:15pm ET Monday through Friday. It was also important for us to find buyers who would be a good fit for our customers and employees.. Member FDIC. heidi.ashley@hsbc.com, Rob Sherman I am currently in a protected APR under the Servicemembers Civil Relief Act. HSBC said 81 of the affected branches are within one mile of a Post Office, where customers can carry out day-to-day transactions. 3. At 3:30 PM ET, September 15, 2022, your access to HSBC online and mobile banking will end. Photo: Georgina Lee alt=Cathay Bank's branch in Hong Kong on May 27. HSBC announced the plan this week, with Citizens Bank and Cathay Bank poised to snap up the East Coast and West Coast branch networks, respectively. Community Reinvestment Act and HSBC Community Development, Citizens Information for International Customers. If a customer did not receive a letter, no action is required. The ACH number and your bank account number are used by banks and transfer apps like Zelle or Cash App to identify the exact account payments should be taken from and sent to. HSBC Holdings plc HSBC has announced a strategic plan that includes the divestiture of 90 of its branches, as part of the bank's effort to exit the U.S. retail banking business. 25 in market share in the nation's largest. Before September 16, 2022, mail your payments to HSBC at the address found on your statement. HSBC is not the first bank to announce major closures in 2021, with TSB (164 closings) and Barclays (63) both making announcements at the end of last year. Limit. If you believe you are subject to protection under the Bankruptcy Code, please contact our Customer Service Department at your earliest convenience so that we can update the records applicable to this account, if appropriate. HSBC also lacked the necessary scale to compete with its bigger American rivals. Acquisition includes 80 HSBC branches in New York City Metro, Mid-Atlantic/Washington D.C. and Southeast Florida with approximately $9.0 billion in deposits and $2.2 billion in loans. 07/28/2021. In February 2022, HSBC Bank USA, N.A., (HSBC) finalized agreements with Citizens and Cathay Bank for the sale of its U.S. mass market retail banking businesses. Support this work for $1 a month. HSBC is selling 80 East Coast branches to Citizens Bank, and 10 West Coast branches to Cathay Bank. Why did HSBC sell some retail credit card(s)? HSBC's US retail banking business struggled to be profitable in recent years as interest rates fell to historic lows, affecting the ability of banks to make money on traditional lending and other products tied to rates. What can you tell me about First Bank & Trust? serves customers through retail banking and wealth management, commercial banking, private banking and global banking and markets segments. If I have an introductory rate on my existing account, will that transfer to my PF|CP account? Following the sale, HSBC will no longer offer services to American retail-banking clients with balances of less than US$75,000 and small businesses with less than US$5 million in revenue. Why did HSBC sell branches and transition some customer relationships to Citizens and Cathay Bank? In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a customer contact center and the convenience of approximately 3,000 ATMs and approximately 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest regions. Member FDIC. Citizens Financial Group, Inc. CFG closed the acquisition of 80 East Coast branches and the national online deposit business from HSBC Bank U.S.A., N.A. Pay with Points for annual fees will no longer be available, as your account will not have an annual fee. "Our refreshed strategy in the US will allow us to better serve the needs of our international wealth clients, who continue to consider the US for international education, property, investment diversification, career and family mobility and business expansion, among others. Will my account remain enrolled in that program? HSBC, Citizens and Cathay Bank have been in touch with these small business customers with information about the transition. Citizens Bank, a subsidiary of Citizens Financial Group, has agreed to acquire HSBC's banking business on the east coast of the United States, including 80 branches; Cathay Bank, a subsidiary of Cathay Mass Financial Holdings, has agreed to acquire its west bank business, including 10 branches. Wires received to your transferred HSBC account until April 19. HBUS will exit its domestic mass market retail banking business and retail business banking (collectively the Business) through a number of divestitures, and wind-down of the residual branch network. Recurring automatic payments (EZ-Pay) for personal Credit Cards, Recurring automatic payments for HSBC Mortgage or Home Equity Line of Credit, Links to cash transfer apps such as Zelle or Venmo. How will these agreements affect business accounts? If you are enrolled in paperless statements with HSBC, you will need to re-enroll for this service with PF|CP. HSBC to sell 90 branches to Rhode Island's Citizens Bank and California's Cathay Bank as it exits the retail mass-market banking in the United States. Will my HSBC relationship manager change? What day to day and online banking options are available? In buying the East Coast retail operations, Citizens Bank will acquire 80 branches and about 800,000 customers with US$9.2 billion in deposits and US$2.2 billion in outstanding loans. Endless possibilities, diverse outlooks. HSBC announced earlier this year that it was exploring strategic options with respect to its US retail franchise, including organic and inorganic options to improve the profitability of its US retail business. If you have specific questions about your existing investment, variable insurance or annuity relationships with HSBC Securities or life insurance through HSBC Insurance Agency (USA) Inc. speak with your Financial Consultant, if one is assigned to you, or call the HSBC Wealth Services Desk at 800-662-3343, Monday through Friday 8 a.m. 6 p.m. HSBC has entered into agreements to sell parts of its business to Citizens Financial Group Inc.'s Citizens Bank and Cathay General Bancorp's Cathay Bank. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc. If your account is being transferred, youll see a message at the top of the account page indicating that later this year one or more of your HSBC credit card accounts will be transitioned to PF|CP, issued by First Bank & Trust. Beginning September 17, these accounts will be serviced by Premier Finance Card Program (PF|CP). Please be aware that the external site policies, or those of another HSBC group website, may differ from this website's terms and conditions and privacy policy. First in May, Citizens announced plans to acquire much of HSBC's US business, including 80 branches on the East Coast and all of the British bank's US online franchise. The potential and pitfalls of Central Bank Digital Currencies, Investor information in Chinese - , www.about.us.hsbc.com/investor-relations/hsbc-usa, Read the full media release: HSBC exits US mass market retail banking, Shanghai Administration for Industry & Commerce, Exiting 90 branches out of a current branch network of 148 branches, HBUS will retain a small network of physical locations in existing markets which will be repurposed into 20-25 international wealth centres, Remaining branches, between 35-40, will be wound down, Exiting all Personal, Advance and certain Premier banking customers (those with balances below US$75k), Exiting all retail business banking customers (small businesses with turnover of US$5m and under). The Business is part of our US Wealth and Personal Banking (US WPB) operations. After 12:00 PM ET, September 17, 2022, you can make payments by enrolling in online or mobile banking, or by calling PF|CP Customer Service. Citizens Financial Group, which has been on a merger-and-acquisition streak, is set to finalize the first of two big bank transactions that have been on its plate since last year.. You can activate your new Citizens Debit Card and PIN as soon as you receive it. We thank those customers for their business. Beijing's . Weve announced further financed emissions targets for four carbon-intensive sectors. And it had brazenly done business in off-limits countries such as Sudan and Myanmar. Under Quinn, HSBC has improved the profitability of its American operations. If a borrower on this account is currently a debtor in an active bankruptcy or was discharged under the Bankruptcy Code from the credit card obligation described in this letter, please treat this document as a source of information only. Recurring automatic payments (EZ-Pay) for Personal Loan, Select Line of Credit, Business Loan or Revolving Line of Credit accounts. For East Coast and online customers, certain brokerage accounts that are included in the agreement with Citizens transferred to Citizens Securities on or about February 18, 2022. Investors: Kristin Silberberg 203.900.6854, Copyright 2023 Citizens Financial Group, Inc. All rights reserved. "There is a role for an international bank, particularly one that is capable of bridging the East and the West.". ACH Direct Deposits will be transferred to your new account until May 5. HSBC is exiting the US market do all accounts will eventually be transitioned to other banks. Select Line of Credit, Business Loan or Business Revolving Line of Credit accounts set up through the branch or contact center, Recurring automatic payments for personal HSBC credit cards, IRS tax forms, so consider downloading and saving tax documents prior to transitioning to Cathay Bank, In preparation for a smooth transition of one or more of your accounts to Cathay Bank, we changed your account statement format from a combined statement to individual statements for each account. Following are online banking transactions and information that transitioned to Citizens: Bill Pay scheduled with a payment date after February 18, Transfers set up on Online Banking between your U.S. accounts, as long as both accounts are being transferred to Citizens, Future dated/recurring wire payments and beneficiary information, Future dated one-time payment for Personal Loans with a payment date after February 17, Future dated Global Transfers, Bank-to-Bank transfers or Real Time Payments. The bank bought boutique firms JMP Group and DH. We continue to remake HSBC USA to be simpler, more agile, and better able to focus on clients we have the right to win as a leading international bank. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. The changes described will be effective March 14, 2022. When did I become a customer of Cathay Bank? HSBC is selling its East Coast branches to Citizens and its West Coast branches to Cathay Bank as part of its exit from most of its U.S. banking operations. Rewards not redeemed with HSBC will convert to Citizens Cash Back rewards at a 1:1 rate. Will I maintain that rate? HSBC could be the first major UK lender to charge customers for current accounts, as it tries to make up for the record low interest rates that have squeezed bank earnings during the Covid crisis . Meanwhile, the bank transitioned deposit accounts from 800,000 inherited HSBC customers Saturday and announced Tuesday that it closed its acquisition of 80 HSBC branches. Truly insane that there has been zero communication from the bank. You are leaving HSBC.com. has entered into an agreement to acquire 80 East Coast branches and the national online deposit business from HSBC Bank U.S.A, N.A.. Information is available at, More information and an ATM locator is available at. PF|CP will have your last 13 months of HSBC statements, which you can access when you enroll in PF|CP online banking at, If you think you may need any HSBC statement history prior to 13 months, please download these statements prior to September 15, 2022, by going to HSBC. Information about the HSBC Bank Wealth Centers is available at. With the HSBC deal closed, Citizens will now turn its attention to closing its planned $2.5 billion acquisition of Short Hills, New Jersey's Investors Bancorp later this spring. HSBC Securities remains your broker and information regarding changes to services for these accounts was provided in a letter dated February 9, 2022. Links between your brokerage and deposit accounts are no longer available now that the deposit accounts have transitioned to Cathay Bank. After 12:00 PM ET, September 17, 2022, you can enroll in PF|CP online and mobile banking at. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. At the same time, I am very pleased that we were able to execute this strategic repositioning at pace. Insurance and annuity relationships are not impacted by the transaction with Citizens. Further analysis of the results of our US WPB business are provided in the HSBC Holdings plc Data pack 1Q 2021. +44 (0) 7920 254057 PROVIDENCE, R.I.--(BUSINESS WIRE)-- Your due date may change slightly but will still be at least 25 days after the close of each billing cycle. Citizens | Personal & Business Banking, Student Loans, Retirement YOU'RE MADE OF KEEPING THINGS IN CHECK SO ARE WE Comparing your checking account options has never been so easy. These or other uncertainties may cause our actual future results to be materially different from those expressed in our forward-looking statements. Yes, if you have an existing introductory rate offer still available to you and in effect under the terms of your HSBC account at the time of the transfer, it will remain in effect for the balance of the original term of the original offer. All Rights Reserved. And any payments sent to your old account will be automatically redirected to your new one. Starting February 7. It will wind down the remaining 35 to 40 branches. To help make the transition as seamless as possible, Citizens will update this site as new information becomes available. For West Coast customers, banking relationships transitioned to Cathay Bank but investment and insurance relationships did not as they were not part of the agreement. Our continued presence in the US is key to our international network and an important contributor to our growth plans. Citizens Bank and Cathay Bank are set to pick up more than $10 billion deposits and 90 branches as part of HSBC's plan to exit the US retail banking sector. This next chapter of HSBCs presence in the US will see the team focus on our competitive strengths, connecting our global wholesale and wealth management clients to other markets around the world.. You can also chat with us 24 hours a day, 7 days a week on the HSBC Mobile Banking App, Monday through Sunday 7am 12am ET. HSBC Premier Credit Card Earn 35,000 Bonus Points after spending $3,000 in the first 3 months from Account opening 1 2X Points on Travel, 1X Points on all other purchases TSA Precheck - $85 credit 2 for application fee Apply now HSBC Elite Credit Card Earn 50,000 Bonus Points after spending $4,000 from the first 3 months of Account opening 3 More information is available at, If you would like to enroll in AutoPay with PF|CP, you can do so after 12:00 PM ET, September 17, 2022, at. The branches to be acquired will operate as HSBC branches until closing and will be re-branded as Citizens branches immediately upon closing of the transaction. The updated policy will support the transition towards a net zero future by 2050 or sooner. 2023. HSBC, the biggest of Hong Kong's three currency-issuing banks, said on Thursday it will exit its mass-market retail business in the United States and focus on serving wealthy clients and . HSBC Bank USA, National Association (HSBC Bank USA, N.A.) The transactions are expected to close by the first-quarter of next year and HSBC said it expects to incur US$100,000 of pre-tax costs in connection with the sales. The ACH routing number for Citizens Bank is 241070417. It should take only 7 working days to switch your current account, once your new account is open. If you are enrolled in a program that offers rewards and your account is open and in good standing: Your earn rate will remain the same or will improve, depending upon the program in which you are enrolled. is not responsible for these charges. If your account is open and in good standing, on or after September 17, 2022, please activate your PF|CP credit card after 12:00 PM ET. 1Data rate charges from your service provider may apply. The Current Account Switch Guarantee covers most of UK current accounts. Personal account types that transferred to Citizens include deposit accounts (checking, savings, certificate of deposit), personal credit cards, certain mortgages and Home Equity Line of Credit (HELOC). The bank told investors earlier this year that it was planning to "step up" its. For transitioned accounts, you no longer have access to HSBC Personal Internet Banking, HSBC Mobile Banking, Personal Loans and Select Line of Credit and HSBCNet. It operates bank branches in: California; Washington, D.C.; Florida; Maryland; New Jersey; New York; Pennsylvania; Virginia; and Washington. HSBC Global Money Account is a prepaid, multi-currency account available on our the HSBC Mobile Banking App for customers who maintain an HSBC consumer deposit account. We expect US$0.1bn of pre-tax costs to be incurred in connection with these transactions after which HSBC does not expect to generate a significant gain or loss. The deal comes with $9 billion in deposits and $2.2. If you received additional notices from us, please review them carefully and call us if you still have any questions. Night Drop services at HSBC locations that have transitioned to Cathay Bank and Citizens. What changes for my use of checks, direct deposits, and electronic payments and transfers? Under the agreement, Citizens will acquire approximately $9.0 billion in deposits and approximately $2.2 billion in loans for a 2.0 percent premium paid on deposits at closing. What should I do if I have additional questions? We are here to help after February 18 when one or more of your accounts have transferred to Citizens. Morgan Stanley & Co., LLC served as financial advisor and Debevoise & Plimpton LLP served as legal counsel to Citizens. The maximum interest that a general citizen can earn now stands at 7 percent. What should hsbc changing to citizens bank do if I have an annual fee results to be materially different from those in... 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