HSBC Perceives Revolut as a Potential Rival for prime office space in Canary Wharf

HSBC Reduces Retail Banking Footprint, Revolut Expands in Canary Wharf

In a significant shift, HSBC has decided to sell its Canadian retail banking operations for $10 billion and spin off 90 U.S. branches, marking a reduction in its retail banking footprint. The bank also plans to vacate its Canary Wharf headquarters in late 2026, moving towards a smaller, more central location in the city.

Meanwhile, fintech company Revolut is making strides in Canary Wharf. The company, which began its journey in the district nearly a decade ago, is set to move to a larger office space. Revolut has signed a 10-year lease to relocate its global headquarters to a building in Canary Wharf, London. The move will increase its office space by 40%, and the company expects to increase its headcount by a similar percentage compared to 2023 figures, by the end of this year.

Revolut's new headquarters will be in the YY London building, located in the heart of east London's financial district. The fintech company will occupy the top four floors of the 14-story building, starting in May 2025. If approved, Revolut's logo will face the offices of JPMorgan Chase and Morgan Stanley, further solidifying its presence in the financial hub.

The CEO of Revolut, Francesca Carlesi, has stated that the new headquarters will be a space for innovation, productivity, and talent attraction. The move bolsters Revolut's commitment to the U.K., despite the company still waiting for a three-year approval from regulators, including the Bank of England and the Financial Conduct Authority, for a U.K. banking license.

While HSBC is leaving Canary Wharf, it seems to be letting market players like Revolut have retail banking in the area, as long as it gets to keep the ultra-rich. Other banks, such as Barclays and Morgan Stanley, have committed to staying in Canary Wharf.

It's worth noting that the owner who acquired the YY London building, where Revolut will establish its new headquarters, was not explicitly mentioned in the provided search results.

In a somewhat concerning development, auditors could not independently verify three-quarters of the €636 million in revenue Revolut belatedly reported from 2021. This underscores the importance of regulatory oversight in the rapidly evolving fintech industry.

HSBC, on the other hand, has held onto several locations in North America and turned them into international wealth centers. The bank's decision to reduce its retail banking footprint could be a strategic move to focus more on high-end services.