As HSBC Holdings plc HSBC seeks a larger share of the wealth management market in the U.K., the bank has gone on a hiring spree to recruit hundreds of bankers to serve the ultra-rich. The news was first reported by The Guardian.

HSBC aims to strengthen the U.K. arm of its wealth and private banking operations by recruiting more relationship managers, who offer bespoke services and advice to rich clients in exchange for lucrative fees.

According to a source familiar with the plan, while HSBC has headquarters in London, the recruitment will be based across the U.K.

The bankers that are being recruited will be given the task of doubling the assets under management (AUM) at HSBC’s British wealth business to £100 billion in the next five years.

HSBC’s UK Growth Plans

HSBC’s aim to double AUM in its U.K. wealth business to £100 billion in the next five years comes as this would make the bank one of the top 5 wealth managers in Britain.

Also, with this, the bank will be able to expand in sectors that are less exposed to interest rate changes, joining rivals like Lloyds Banking Group LYG and Barclays BCS in targeting more fee income from the mass affluent in the U.K.

As LYG and BCS are also pushing into wealth management, HSBC is expected to face tough competition from them.

Lloyds defines the “mass affluent” as those who have £75,000-£250,000 in deposits. Barclays’ premier service, which includes a “dedicated team of premier financial guides,” targets people earning at least £75,000 or those who have at least £100,000 in savings.

Thus, HSBC is planning to strengthen its own wealth division by targeting international customers, who see advantages to banking with a lender with a much larger global footprint.

The plan, which is being supervised by HSBC U.K.’s head of wealth and personal banking, Jose Carvalho, is expected to continue despite the recent management changes.

HSBC's Next CEO to Trim Middle Management to Save Costs

Carvalho’s boss, HSBC Group’s head of wealth and personal banking, Nuno Matos, recently resigned from his role, making Georges Elhedery the group chief executive.

Elhedery is considering a significant organizational transformation to streamline the company’s operations. After taking over as the new CEO on Sept. 2, Elhedery plans to cut layers of middle management and reduce the number of country heads across HSBC’s global footprint.

These efforts align with HSBC’s ongoing focus on improving efficiency and cost control amid evolving economic challenges.

The idea of cutting back on middle management is indicative of a broader trend in the banking sector amid economic pressure. By reducing middle management, HSBC can reduce costs, expedite decision-making and offer lower-level staff more authority.

In the past six months, HSBC shares on the NYSE have gained 17.8% compared with the industry’s growth of 10.3%.

Image Source: Zacks Investment Research

At present, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Barclays PLC (BCS) : Free Stock Analysis Report

Lloyds Banking Group PLC (LYG) : Free Stock Analysis Report

HSBC Holdings plc (HSBC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research