I was disappointed to hear the news that HSBC is quitting Australia after offloading its loan portfolio, leaving retail customers needing to find a new bank.

I've been with HSBC for about 10 years, drawn by their two per cent cashback offer and reasonable exchange rates for foreign currencies.

They're the only financial institution in Australia, that I'm aware of, which offers cashback for PayWave transactions under $100.

I use this feature for all my day-to-day expenses such as coffee, takeaway food, groceries, shopping and liquor. It works out to save me about $25 a month, which I figure pays for one of my streaming services.

Ten years ago, their currency conversion was the best-value in Australia, but HSBC has been surpassed in that regard by fintech start-ups Revolut and Wise, although I see that Revolut now has a full banking licence in Australia.

HSBC launched in Australia in 1986 when the Keating Government opened up the banking sector to foreign competitors.

News reports this week suggest they failed to gain enough business to make it worthwhile continuing.

This is the email that I received:

HSBC has announced that it will be closing its retail banking business in Australia, following a review.

HSBC has entered into a sale agreement for its home and personal loan portfolio, subject to regulatory approval. As part of this, Pepper Money is expected to manage and service these loans from the first half of 2027.

The remainder of HSBC Australia's retail banking business including transaction accounts, savings and term deposits, credit cards, foreign currency accounts, wealth and investment products, will be wound down in a phased manner over the next 18 months. We’re no longer accepting applications for new accounts.

 

What you need to do

There is no immediate action required from you. For now, your HSBC products and Premier benefits (if applicable) will continue to operate under the existing terms and conditions.

For each product you hold with HSBC, you’ll receive dedicated communications in the coming weeks to guide you through the upcoming changes.

 

Stay informed

The most current information about these changes will be available on our HSBC Australia website hsbc.com.au/help/important-notices/. There you will find the answers to Frequently Asked Questions.

Oh well, $25 a month for 10 years = $3000. Thanks for the memories!