Yes they are owned by HSBC, well done.
But just a division of HSBC without the branches? No.You have missed the key point that they operate to a completely different level of customer service compared to HSBC. Try calling HSBC and you'll be put through several layers of menus before speaking to someone. Call First Direct and you'll be speaking to someone before the phone has had a chance to ring.
Hate to break it to you, but the lack of branches and their tie to HSBC is their Achilles heel.
A few years ago I set up a FD account and was happy with the service. So much so, I asked my fiancee if she'd like to switch away from Natwest and get a joint account with FD.
Called FD who explained that all I would need to do is apply online to make my current account a joint account. Several minutes of clicking on the website later and the application was done... so far, so good.
Weeks later, I checked on the status and it was still sat pending so I called FD again. "Oh noes, you need to go to a solicitor and provide proof of ID" they told me. I refused on the principle that a) that wouldn't be required if she applied for her own account online b) it would cost me money to get proof. A compromise was reached when they advised that we could pop in to a local HSBC store with a passport/driving licence etc and get it countersigned by the branch manager... annoying but fair, so that's what we did.
Several more weeks passed when I queried what the hold up was, only to be told that they didn't recognise the signature and were rejecting the proof of ID. After informing that it was the BRANCH MANAGER that had personally witnessed, scanned and signed the document they wouldn't budge. They wanted me to get in touch with the branch and chase the manager to write a letter... it was at this point I pulled the plug and transferred away from them.
The customer support people were friendly, but the insistence that I could do stuff through HSBC when a problem arose and then asking me to do all the chasing, totally undermined them. Sometimes you need a branch to get stuff done.