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HSBC devalued its points transfer ratio to multiple partners, dropping from 1:1 to 1.25:1. Unsurprisingly, with such a negative move, it happened without any announcement or communication. At the same time, HSBC announced a 25% transfer bonus to several Avios programs, including British Airways, Aer Lingus, and Iberia.
This transfer bonus ran until January 3, 2024 and temporarily masked the devaluation. Here's what you should know about the decrease in value for HSBC points transfers.
Not All Partners Are Affected
At first glance, it would seem that the devaluation applies across the board, but that's not the case. Three transfer partners have retained the 1:1 ratio, although how long that lasts only time will tell. The three partners still with a 1:1 ratio are as follows:
Outside this, the other HSBC partners now have a 1.25:1 transfer ratio.
Our Take
While the news is a blow for international HSBC clients, it should not significantly impact the United States. This is because HSBC left the U.S. mass market retail banking sector, so it has no clients affected by this devaluation. However, it has retained its U.S. wealth management sector, so this devaluation may affect some clients.
Launching a transfer bonus at the same time as announcing a devaluation is disingenuous, to say the least. Clearly, this is meant to mask the effects of the devaluation and fool HSBC's existing customer base. With a 12% devaluation, you have to wonder how much value is left in the HSBC points ecosystem.
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