HSBC is restructuring the organization by leaving some geographic territories, investing in tech and — most recently — undergoing a leadership change. 

The bank is looking for a replacement for Chief Executive Noel Quinn, HSBC Chairman Mark Tucker announced during today’s first-quarter earnings call. 

Tucker said he hoped to have a replacement for Quinn by the second half of the year. Quinn, who has been CEO since March 2020, will stay on the job until a successor is found.

Part of the restructuring strategy at the bank is a focus on the development of technology to support its wealth and transaction banking business, Chief Financial Officer Georges Elhedery said during the earnings call. 

The $3 trillion bank reported that it completed the sale of its Canadian operations to Royal Bank of Canada in March for $10 billion as part of its broader restructuring efforts and boosted its operating expenses 7% YoY to $8.2 billion. 

In 2024, HSBC aims to: 

• Embrace disruptive technologies; 
• Partner with innovators; and 
• Automate and simplify at scale. 

Quantum computing 

As part of its restructuring, HSBC is also investing in emerging technologies like quantum computing. 

HSBC teamed with IBM and PayPal to create the Work Group on Quantum-Safe Cryptography, according to a release from Emerging Payments Association Asia on April 25. 

The financial institution and tech providers will study policy and regulation and develop technology to enhance the protection of payment rails, the release stated. 

HSBC launched its quantum computer-driven foreign exchange trading platform last December and recently teamed up with quantum computing service provider Quantum Dice for trading, insurance and payments-related activities, according to a Quantum Dice release on March 5. 

Quantum Dice’s hardware can increase the accuracy in statistical modeling, speeding processes like trading activities and risk assessment by 15% to 20%, Annika Moslein, technical project manager at Quantum Dice, previously told Bank Automation News. 

PayPal doubles down on AI 

PayPal also reported Q1 earnings today, highlighting its investment in emerging technologies like AI and a restructuring of operations. 

2024 “is a transition year where we are focused on execution and making critical choices that will set the business up for long-term success,” CEO Alex Chriss said on the company’s earnings call today. 

The company is “retooling” its operation to deploy technology to drive efficiencies and a better customer experience, Chriss said. 

PayPal reported in Q1: 

• Revenues of $7.7 billion, up 9% year over year;  
• Technology and development expenses of $742 million, up 3% YoY; and 
• Total payment volume of $403 billion, up 14% YoY. 

The San Francisco-based company is “getting better with our risk models and leveraging AI,” Chriss said, adding that investments in technology will drive engagement for its apps and provide better experience for customers — and partners like HSBC.

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