Introduction
Global banking giant HSBC has suddenly announced its withdrawal from the Australian retail market, signaling that its "grocery cards" may soon become a thing of the past. The immigrant community is in mourning, wondering who will take over this profitable sector.

1. HSBC Exits the Australian Market, “Grocery Cards” May Become a Relic of the Past
According to Australian media, HSBC has tasked Citi with finding a buyer for its retail business in Australia, which includes credit cards, home loans, and deposit accounts. Although HSBC has not officially responded, multiple sources have confirmed that the deal preparations are underway. In January this year, Bloomberg reported that HSBC CEO Georges Elhedery was considering selling its Australian retail bank, which provides credit cards, mortgages, and savings accounts. At the end of last year, Elhedery also revealed that the group would significantly streamline its global structure, reducing its five regional management systems to two and eliminating its investment banking operations in Europe and the Americas to save operational costs. Additionally, the bank plans to create four new business lines: Hong Kong, UK, corporate and institutional banking, and international wealth and premier banking. In February, HSBC set a goal to save $300 million (AUD 461 million) by 2025 and announced plans to reduce its annual cost base by $1.5 billion by the end of next year. Therefore, selling its Australian retail business is a part of HSBC’s “global slimming” strategy. HSBC is expected to retain its commercial banking business in Australia, offering loans to businesses.

This decision has caught the attention of many Chinese immigrants in Australia. While HSBC is not one of the “big four” banks in Australia, it is highly popular within the immigrant community, especially a card known as the “grocery card,” which has become an essential for many. Therefore, when hearing about HSBC selling its business, many people's first reaction was, "The grocery card must stay!" The “grocery card” refers to HSBC’s Everyday Global Debit Card, which is free of account management fees, supports ten currencies, has no fees for overseas transfers, and offers a fixed 2% cashback on purchases under $100, with a maximum of $50 cashback per month. This card has become the first choice for immigrants, international students, and cross-border families. Currently, HSBC holds around AUD 486 million in credit card debt in Australia, surpassing Bendigo Bank and Macquarie, with AUD 18 billion in household deposits, indicating that it still has a stable customer base in the retail sector. While its scale may not match the big four banks, for the acquiring party, it represents an immediate access to a high-quality middle-class and immigrant customer base, which is highly attractive.

2. Who Will Take Over the Business? A Repeat of the “Citi Acquired by NAB” Drama?
Behind this potential transaction is not only HSBC’s "slimming down" but also a reshuffling of the entire Australian banking industry. Back in 2021, Citigroup had also sold its Australian personal banking business, which was acquired by the National Australia Bank (NAB) for AUD 1.2 billion. This transfer not only required Citi customers to change their bank cards and migrate their accounts but also sparked widespread discussion in the Chinese community.

Market speculation suggests that NAB may once again step in as the “buyer,” or perhaps ANZ or Bendigo Bank will seize the opportunity to expand their retail footprint. It’s worth noting that ANZ’s new CEO, Nuno Matos, who has long been in charge of HSBC’s UK and European retail business, has close relationships with HSBC’s senior executives, giving ANZ an advantage. However, ANZ is currently busy integrating Suncorp Bank, which it acquired last year, and may not have the capacity to take on another major acquisition. As for Bendigo Bank, although it failed to acquire Suncorp in 2023, it has strong ambitions for retail business expansion and may likely “come back” for another attempt.

However, regardless of which party becomes the new owner, the acquisition must be approved by the Australian Competition and Consumer Commission (ACCC) to ensure it doesn’t result in market monopolies or reduce consumer choice. For regular customers, accounts and services will continue to operate normally, so there’s no need to panic. Even if the sale goes through, it will be a smooth transition, similar to Citi’s case, with original accounts being migrated to the new platform. Whether customers will still enjoy the same fee-free benefits, multi-currency accounts, and global transfer convenience after the HSBC brand exits will depend on the policies of the new bank.

Conclusion
HSBC’s exit marks another round of reshuffling in Australia’s retail banking industry, reflecting the increasing difficulty international banks face in competing in the local market. In the future, the Australian banking industry will likely continue to consolidate, and the retail financial landscape may undergo a new round of restructuring and centralization.

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