RBC to convert HSBC locations as soon as takeover closes next week

RBC spokesperson Christine Stewart said in an email that the bank will begin converting HSBC branches and offices on March 28, the same day its $13.5-billion takeover deal will close, if it clears customary conditions.

Branches and offices being converted into RBC locations will reopen on April 1.

Stewart did not say whether any HSBC branches or offices would be permanently closed.

The brick-and-mortar transformation that will take shape at HSBC is one of the earliest manifestations of the expansion of RBC’s empire.

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When did RBC purchase HSBC?

RBC announced plans to purchase HSBC Bank Canada in November 2022. At the time, HSBC had about 800,000 clients, 130 branches, 4,200 employees and 2% market share.

It also counted $130 billion in assets, making it the seventh largest bank in the country.

Despite being a minor player in comparison to some of the larger banks, experts predicted the deal could have a negative impact on consumer choice because HSBC often undercut its rivals on borrowing costs.

Other, larger banks offered fixed and variable mortgage rates that were 20 to 80-plus basis points higher than HSBC, mortgage strategist Robert McLister said in December 2023.

“They were an everyday low-price lender, which is extremely valuable in the Canadian market,” he said.

HSBC customers to receive RBC credit cards in March

While it will take some time to get a fuller picture of how the takeover will impact consumers in the long term, many HSBC customers are already being affected by the deal. 

In advance of the branch and office conversion, HSBC told its customers their products, services and balances would be automatically migrated over to similar offerings and accounts from RBC.

HSBC customers were also told they will receive new RBC credit cards in March and see their historical banking and credit card statements and documents migrated to RBC accounts. 

They were encouraged to download investment documents, which they were told may not be available online after the migration.

“Ensuring that clients continue to receive exceptional advice and service is our highest priority,” RBC’s Stewart said in an email. 

More about banking:

• RBC’s takeover of HSBC: What will happen to HSBC Canada customers?
• Best online banks and credit unions in Canada for 2024
• The best high-interest savings accounts in Canada for 2024
• It’s probably time you switched banks—4 easy steps for Canadians

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