Jason Corcoran in Moscow.
HSBC Private Banking is hiring 20 bankers in Moscow in an ambitious bid to become the leading manger for Russia’s ultra wealthy.
Until recently, Moscow HSBC has been represented on the Russian private banking market by the division of Swiss office of HSBC, where Russian client accounts were opened.
Natalia Solodovnikova, HSBC’s head of private banking in Russia, said the bank had hired 14 client-facing bankers since its low-key onshore launch several months ago. “We aim to have 20 front-facing staff by the end of the year and we have ambitious targets to grow the business and the staffing for 2010 and 2011,” she said.
Solodovnikova, who was speaking on the fringes of HSBC’s grand launch of its retail banking operation in central Moscow, joined the bank last year from Deutsche Bank in Zurich where she headed private banking.
She added: “Our target is to become in the leading private bank in Russia in three years. We hope to use the market situation to our advantage as there’s a flight to quality happening as a result of the banking crisis here. We are setting up domestic services because we believe Russians want to keep their money here and we want to serve them locally.”
HSBC has allocated $200 of new capital to invest in its Russian retail, corporate and private banking arms. The global bank, which has hired 300 staff for its Russian retail network, yesterday formally opened its first three branches in Moscow and one in St Petersburg.
Solodovnikova said a number of wealthy individuals had already assigned assets to her team which hoped to piggy-back on the retail brand and win referrals from HSBC’s established corporate banking business in Moscow.
Solodovnikova said the crisis had helped the bank to find talent and cheaper real estate for its branches. HSBC will initially launch a range of retail products in Russia under its “HSBC Premier” and “HSBC Plus” offerings, which require minimum balances of about $2,500 and $50,500, respectively.
Curious Muscovites popping into the bank’s first branch on Tverskoi Boulevard on Tuesday appreciated the bank’s cool air conditioning but most balked at the minimum balance required. By 2pm, HSBC’s bright and bushy-tailed reps said they had signed up three clients for both Premier and Plus accounts.
The bank’s high new worth clients typically require $2m to open accounts but it is understood the bank will be flexible on requirements for Russian high earners.
Many of Russia’s billionaires have had their fortunes dented by the crisis. According to Forbes Magazine, a year ago Moscow was home to 74 of them – more than any other city in the world. Now there are only 27 left.
HSBC said the bank might get involved in sponsoring yachting or the arts in a bid to woo clients. Rival bank Credit Suisse is heavily involved in sponsoring the Bolshoi Ballet.
