Does HSBC’s Restructure Signal a Change in Banking Culture?

HSBC, one of the largest banks in Europe, has ceased its global management programme, the “International Manager Scheme”. This is part of a broader effort to reduce costs, according to the Financial Times.

The programme, running since the bank's founding era, will now be closed to new applicants. It has historically served as a pipeline for developing leaders, including former CEOs Stuart Gulliver and John Flint.

The decision was reportedly part of a wider restructuring plan under Georges Elhedery, who became CEO in September 2024. This move suggests a cultural change as the bank adapts to a more modern financial landscape.

The Financial Times reports that the scheme was viewed by some senior executives as outdated, with one individual criticising the “snooty attitude” and special status associated with it.

Scrapping the international manager scheme

The International Managers Scheme was created to cultivate managers capable of rotating through the bank’s extensive global networks.

It offered participants elite perks like tax-free pay and housing, with the objective of creating a mobile and experienced leadership team.

In a statement, HSBC said: “Our International Management Programme offers highly talented employees the chance to pursue an internationally mobile career in a variety of roles and locations.”

The closure of such a prestigious programme could indicate a move towards a flatter, more meritocratic structure, mirroring the styles seen in the fintech sector where performance is prioritised over tradition.

Fostering accountability in leadership

Since becoming CEO, Georges has enacted substantial changes to HSBC’s operational structure.

He has nearly halved the size of its operating committee and eliminated co-management roles. He argued these allowed executives to evade direct responsibility for their decisions.

This focus on clear ownership is a notable departure from traditional banking bureaucracy.

Speaking on Bloomberg’s Leaders with Lacqua programme, Elhedery said not enough executives were fully accountable for their business performance.

“We moved from 0% single accountability... to now about 60% of our revenue is generated under single accountability. That’s important,” he explained.

This push for accountability aligns with the lean models that have allowed fintech companies to challenge established financial players.

A new strategy for HSBC

Georges joined HSBC in 2005 and became Group Chief Financial Officer in January 2023. His prior roles include Co-CEO of Global Banking & Markets and CEO of the Middle East, North Africa and Turkiye region.

His appointment is intended to lead HSBC into its next phase of development and growth.

In an HSBC press release, Georges said the plan was to create a “simpler, more dynamic, agile structure at HSBC”, to help “fast forward our plans to execute our strategic priorities.”

He added the new structure will ensure the bank can “better focus on the businesses where we have clear competitive advantage.”

When his appointment was announced, HSBC Group Chairman Sir Mark Tucker called him an “exceptional leader and banker.”

He praised his track record of “leading through change, driving growth, delivering simplification, containing costs and bringing a strong focus on execution.”