HSBC goes on hiring spree for new digital business banking initiative

HSBC has hired more than 100 new staff to work inside its Aldwych offices on Project Iceberg, an internal digital initiative to revamp its small business banking effort and to counteract competition coming in from Shoreditch’s fintech stars.

A source familiar with the matter told City PM the bank has chosen to innovate on its existing structures rather than launch a standalone flanker brand, as it had done with online-only retail bank First Direct.

Project Iceberg could enter its first beta-testing phases before the end of this year, however it is not expected to launch until 2019.

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An HSBC spokesperson declined to comment on the project, however said the bank is aware of how technology is changing the sector and is “always exploring ways to make commercial banking quicker, easier and more convenient” for its customers.

The move comes as smaller business banks jostle for a slice of the £833m RBS remedies fund, which fell foul to criticism earlier this year from challengers such as Starling Bank for failing to tap the innovative strength of the UK’s fintech startup sector