HSBC & Citi Reviewing UK Consumer Finance
February 06, 2008 – HSBC and Citigroup are reportedly reviewing their consumer finance operations in the UK and may sell the branch-based businesses. According to the industry press, HSBC is re-examining the HFC business it acquired with the Household purchase in 2003 – the business operates under the Beneficial brand and has 140 branches. In Citi’s case the company is looking at the closure of 50 CitiFinancial branches. It is not clear if this is part of a broader exit from non-prime lending or merely a reaction to softening credit in the UK (Citi is also shedding unprofitable Egg customers). It appears that certain structural changes are afoot and we may see the overall complexion of global consumer finance change. In light of rumors swirling around GE’s retreat from UK private label cards and the stated sourcing of a strategic partner in India, we will be closely following developments around HSBC and Citi’s consumer finance businesses in Mexico, India and other markets.
Posted by Ali Raza on Thursday, February 07, 2008