The HSBC Finance Corporation is a child of the HSBC Bank Group, and like many of its HSBC siblings it is a financial services organization. HSBC Finance’s primary functions are essentially credit and lending services: through its subsidiary companies HSBC Finance provides such personal finance products such as real estate secured loans, auto loans, insurance products, Visa and MasterCard credit card loans and personal unsecured loans.
The History of HSBC Finance
The entity that is today known as HSBC Finance was formed through the HSBC Group’s acquisition of Household International Inc. in 2003. Household International had a significant presence in the US, UK and Canadian consumer credit market (loans and credit cards): a presence that the HSBC Group desired. Hence Household International was subsumed into the HSBC Group and rebranded as the HSBC Finance Corporation in 2005.
HSBC Finance in the United States
Today, HSBC Finance is one of the most notable retail finance companies in the United States. It has a presence across nearly all of the US states having more than 900 branches nationally. Such is its spread that HSBC Finance is the 2nd largest provider of consumer finance products in the US, although HSBC Finance’s consumer finance operations are largely carried out through two subsidiary brands: Beneficial and HFC.
HSBC Finance is also a major issuer of Visa and MasterCard credit cards in the US.
HSBC Finance Loans, Beneficial and HFC
During the 20th century HFC Finance and the Beneficial Corporation competed against each other in the US personal finance and lending market but in 1998 Beneficial was acquired by HFC Finance. HFC’s strategy was to keep the already established Beneficial brand alive and to continue trading under both the HFC Finance and Beneficial brands. In 2003, HSBC acquired both organizations, which now carry out the personal lending and credit functions for HSBC Finance.
Private Label Credit Cards
HSBC Finance has arrangements with over 70 merchants for the issue of private label credit cards. Some of the better known merchants include Saks Fifth Avenue, Best Buy and Costco.
HSBC’s Global Finance Operations
HSBC Finance has operations all over the world including Canada, the UK, Argentina and Poland.