Construction has begun on the new head office of HSBC's ring-fenced bank at 2 Arena Central - days after its new name was unveiled.
The pressure is on for building work to be completed with HSBC planning to have 2,500 employees in place by early 2018.
The start of construction work is another milestone in the historic move and comes after the banking giant said the new operation would be called HSBC UK despite rumours of a return for the Midland brand.
The work also brings long-awaited progress at the 9.2-acre Arena Central site, which has been masterplanned to deliver a million sq ft of office-led, mixed use development.
Antonio Simoes, chief executive of HSBC Bank, said: "Creating the head office of our ring-fenced bank in Birmingham brings us closer to more of our customers and employees across the UK and supports our ambition to be the bank of choice.
"The start of building work at our future home in Arena Central marks an exciting step in the creation of our ring-fenced bank and our commitment to Birmingham."
Demolition and site clearance at Arena Central has been under way for several months.
The start of the construction phase of the project was marked by a ground-breaking ceremony attended by Mr Simoes and Andrew Sutherland, managing director of Miller Developments.
Work on the 210,000 sq ft 2 Arena Central, the largest building currently being delivered in Birmingham city centre, is due to be completed and the building handed over to HSBC in mid-2017, ready for occupation from early 2018.
Alongside 2 Arena Central, work is also taking place on £10 million worth of public realm improvements, including grassed areas.
Pictures: CGIs of 2 Arena Central
Mr Sunderland said: "The delivery of both 2 Arena Central and the public realm is a hugely exciting time and marks the beginning of the next stage in the life of this important strategic site.
"We have been working closely to ensure that 2 Arena Central is a commercial location that aligns with the requirements of HSBC as an occupier and will continue to do so throughout the build process, ultimately delivering one of Birmingham's highest-quality signature buildings to a premier occupier."
Arena Central was designed by renowned architect Ken Shuttleworth of Make Architects and will be ten storeys high high and have three storeys below ground.
HSBC announced in March its decision to create the head office of its ring-fenced bank in Birmingham.
As a result, around 1,000 head office roles will move from London to Birmingham before the ring-fencing deadline of January 1, 2019.
The city is already home to more than 2,500 HSBC employees.
In the largest property deal to take place in Birmingham since 2002, HSBC has acquired 2 Arena Central on a 250-year lease, reflecting the company's long-term investment in the ring-fenced bank's head office.
HSBC said that, following a consultation process with retail, private and commercial banking customers and customer-facing staff, the decision was made to keep the HSBC brand and add 'UK' to distinguish the ring-fenced bank from the non-ring-fenced bank.
The new brand will be rolled out across the UK from January 1 2018, one year before ring-fencing legislation comes into effect.
Group chief executive Stuart Gulliver said: "As outlined at our Investor Update in June, setting up the UK ring-fenced bank in Birmingham is a key strategic action for the group.
"Our ambition is to be the bank of choice in the UK and, as a name, HSBC UK will build on the global connectivity and customer trust of the HSBC brand and differentiate us in a competitive market."