HSBC’s drive to become a leaner institution began with dismantling co-management roles that CEO Georges Elhedery said had muddied accountability, an early step in a wider restructuring effort he described to Bloomberg Television.
Elhedery, who took charge 15 months ago, has nearly cut the lender’s operating committee in half as part of a restructuring intended to streamline decision making and give executives clearer ownership of their businesses.
He said the bank had operated with layers of dual or multiple reporting lines that limited transparency around performance, although a majority of revenue is now overseen under single leadership.
The CEO, a former co-head of global banking and markets, is continuing a multi-year turnaround that has involved thousands of job cuts, the closure of several operations and the consolidation of others.
He said the overhaul will take time and will require steady discipline as the bank works toward a simpler structure.
A major pillar of his strategy is the rapid introduction of artificial intelligence across the organisation.
HSBC has already provided AI tools to roughly 170,000 staff, integrating them into areas such as document drafting, wealth management, fraud detection and customer verification.
Elhedery said employees will be assessed on how actively they adopt these tools, which he views as essential to remain competitive in the workforce of the future.
The bank is currently running more than 100 AI use cases, about half of which are already live.
Elhedery said workers are not expected to be replaced by technology but warned that those who fail to build skills around AI risk becoming less relevant over time.
Elhedery also spoke about his leadership philosophy, including his decision to take a six-month sabbatical several years ago to accelerate his study of Mandarin.
He said the experience helped him better understand Chinese communication and negotiation styles and encouraged others at the bank to take time for personal or professional development.
He added that the restructuring requires a tough stance on legacy complexity within the organisation.
Speaking earlier at a banking conference in London, he described the need for a ruthless approach to rebuilding HSBC.
In the interview, he said his engineering background has shaped the way he identifies inefficiencies, noting that complexity often accumulates when organisations lose focus.
He said restoring that focus is necessary for HSBC to operate more effectively.
Featured image: Edited by Fintech News Singapore, based on image by ilygraphic via Freepik
