NYC-BASED LENDER HSBC TO CHICAGO: "You've Got Too Many Banks!" So . . . No HSBC For You!
MAJOR INTERNATIONAL BANK SHUNS CITY OF CHICAGO AND CHICAGO SUBURBS IN EXPANSION PROGRAM!
HSBC is a very large bank with a big international presence! They hold $313 Billion in total assets, and have 380 branches across New York State.
They are also expanding, according to Brendan McDonagh, Chief Executive of Parent Company HSBC North America Holdings in the Chicago Suburb of Mettawa IL.
But is HSBC coming to Chicago any time soon?
NO!
From an article in today's Chicago Tribune by Staff Reporter Becky Yerak, in the bank's opinion, the Chicago Metro Area is "heavily overbanked." Drive around Chicago, and the predominance of dozens and dozens of bank branches in every Chicago Neighborhood and Suburb supports that contention.
McDonagh cites the example of Seattle WA Based Washington Mutual. That major Western States Banking Company, since absorbed into J.P. Morgan Chase, quickly opened 170 bank branches beginning in 2003, only to see that number quickly dwindle to about 120 a couple of years later. They never built a sizable market share here in an around Chicago.
Instead, HSBC Bank USA is adding retail banking centers in Washington DC, San Diego, San Francisco, and Seattle, and a few other markets with a sizable, ethnically-diverse clientèle. They see the appeal to those who were familiar with the HSBC name back home, or are seeking a bank with a known international presence here in the USA.
Even as they grow, however, they intend to be cautious, and not try to grow too fast. The stagnant economy may be the main factor here, as will the popularity of local or regional banks in many of these new marketing areas for HSBC.
DEAN MOSS & DEAN'S TEAM CHICAGO
