HSBC branch exclusively for its 'Premier' customers

Commenting on news that HSBC is to operate a branch exclusively for its ‘Premier’ customers, Kevin Mountford, head of savings and current accounts at moneysupermarket.com, said:

"These decisions are not as much about generic fees coming into play, but instead are a way of segmenting and driving out less profitable customers. Time will tell whether HSBC will regret the snub on its less lucrative customers since they form the foundation of its loyal client base.

“The HSBC Canford Cliffs, Dorset branch may be the first of its kind, but it probably won’t be the last. With this move HSBC has given the green light to other high street providers to look at splitting their customers into first class and cattle class – and perhaps only to offer them a service matched to their profitability.

“HSBC will allow the ‘poorer’ customer to use the ATM at the Dorset branch, but they will need to travel to another branch if they want personal, over-the-counter service. The alternative is to pay a monthly fee of £19.95. To qualify for a ‘Premier’ account the holder must have, as a minimum, £50,000 in savings, or a £200,000 mortgage, or £75,000 salary and a £100,000 mortgage.

“I expect this move to test customer loyalty. The backlash amongst HSBC customers may well spread far further than those immediately affected.”