HSBC cuts off SME clients in Canada and US

Many of HSBC's small businesses clients in Canada and the US have been shocked to learn that the bank is closing their accounts.

Many of HSBC’s small businesses clients in Canada and the US have been shocked to learn that the bank is closing their accounts.

HSBC said that due to a "strategic review", it had decided to close many small business accounts and focus resources "on customers that will benefit most from our expertise."

The bank sent out letters to its customers in which Nigel Davis, head of banking at HSBC, writes: "As a result of this review, we have made the difficult decision to end our banking relationship with your business.

"We recognize that this may be a disappointment and to enable you to make alternate banking arrangements we will maintain your accounts with us for up to 60 days."

In a bid to scoop up some of the clients HSBC is shedding, Virginia-based firm Envision Financial said it will offer three months free access to unlimited chequing for business clients who were cut off by HSBC.

Envision’s financial president, Shelley Besse, said in a statement: "Small businesses are the backbone of our communities in British Columbia and nationwide making up 98% of all businesses in Canada.

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"We want to make it simple for them to find a financial institution that can meet their needs."

HSBC’s press office has continued to send tweets celebrating "Small Business Saturday" and urging customers to support small businesses.

On 7 December, @HSBC_Press tweeted: "Small firms contribute massively to their local and national economy. #SmallBizSatUK is their day. Support it if you can."

Twitter user @Don_Carli, in New York, retorted: "@HSBC_Press Really? How does HSBC justify redlining small businesses and cancelling their accounts with little or no notice?"

The UK’s RBS is currently being investigated after allegations that it ran small business clients into the ground in order to buy their assets at knock-down prices.