HSBC has unveiled its plans to compete with challenger banks

Incumbent HSBC is planning to compete with new challenger banks by overhauling its First Direct brand.

By doing so, HSBC believes it can attract the kind of young millennial customers that have gone to the new digitally savvy banks like Monzo, Revolut and Atom bank, according to the Financial Times.

The news were unveiled by First Direct’s chief executive Joe Gordon who stated that a slew of changes would affect the brand within the next year. As part of this change, it will open the door for customers with limited credit histories to open accounts.

HSBC is apparently looking at launching new products like an in-app marketplace and a solution that would take care of the things like automating savings by leveraging artificial intelligence.

It’s hardly a secret that HSBC is going through massive changes. In early October it was revealed that the bank could be cutting tens of thousands of jobs to save costs.

In September it revealed that it was teaming up with Quantexa to tap into the London-based startup’s contextual data approach to detect fraud and financial crime.

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