RBC announces closure and rebranding of HSBC branches, enhancing its network for client and business needs
The Royal Bank of Canada (RBC) has announced the upcoming closure of 25 HSBC Bank Canada branches, with plans to rebrand dozens more, as its takeover deal is set to conclude next week.
According to a statement from RBC spokesperson Christine Stewart reported by BNN Bloomberg, this move is aimed at optimizing the bank's branch network to better serve its clients and business needs.
The decision involves shutting down some HSBC locations situated close to existing RBC branches, with affected clients having been notified about these changes in early March.
As RBC gears up for the finalization of its $13.5bn acquisition of HSBC properties on March 28—pending the satisfaction of customary conditions—it is also preparing to transform these HSBC branches into RBC locations, which will reopen on April 1.
This step marks one of the initial phases in expanding RBC's banking network. The purchase of HSBC Bank Canada, announced in November 2022, was a significant move for RBC.
At the time, HSBC boasted around 800,000 clients, 130 branches across Canada, 4,200 employees, and held a two percent market share with $130bn in assets, ranking as the country's seventh-largest bank.
Despite its smaller size relative to some of Canada's largest banking institutions, experts have voiced concerns that this acquisition could limit consumer choice, particularly because HSBC has been known to offer competitive borrowing costs, often undercutting its competitors.
Mortgage strategist Robert McLister highlighted in December 2023 that HSBC's borrowing rates were consistently lower—by 20 to over 80 basis points—than those offered by larger banks, emphasizing HSBC's role as a “low-price lender” in the Canadian market.
The long-term effects of RBC's acquisition on consumers remain to be seen, but the immediate implications for HSBC customers are clear. Ahead of the branch conversions, HSBC has informed its customers that their products, services, and account balances will automatically transition to comparable RBC offerings.
Additionally, HSBC customers are expected to receive new RBC credit cards in March and will have their banking and credit card statements and documents transferred to RBC accounts. They have been advised to download their investment documents due to potential unavailability online post-migration.
Christine Stewart reiterated RBC's commitment to ensuring that clients continue to receive exceptional advice and service throughout this transition, highlighting the bank's focus on customer satisfaction during the integration process.
