HSBC’s new face-to-face simplified advice service will be extended to people with savings as low as £15,000.
The bank’s offering, due to launch this week, will start by targeting people with £50,000 but will eventually be aimed at those with just £15,000, the Financial Times reports.
HSBC head of UK wealth Caroline Connellan says: “Full financial advice is our core offering and is right for many customers, but others want quicker, lower cost advice for relatively simple needs.
“This is an obvious gap in the market. We believe it will help more customers make important financial decisions for themselves and their families, and help them achieve their financial goals.”
The move comes as banks prepare to return to the advice market after scrapping services following a series of hefty fines issued several years ago.
HSBC was hit with a £10.5m penalty in 2011 for misselling investment bonds to elderly clients and closed its tied advice business the following year, while Santander was fined £12.4m for giving unsuitable investment advice in 2014.
In January 2016 Santander relaunched with a 225 strong team of advisers working across the country. Around 700 advisers will deliver HSBC’s simplified investment advice service with customers given a 30 per cent discount on the cost of the bank’s full advice offering.
Money Marketing previously revealed Barclays Wealth’s plan to launch an “affluent platform” this year for passive clients with simple investment or pension needs starting at £50,000 of investable assets.
Money Marketing also revealed RBS’ plans to axe face-to-face advice for customers with less than £250,000, resulting in 550 job cuts.
Lloyds Banking Group does not offer investment advice in branches to retail customers and only offers advice for private clients with at least £250,000 to invest.