If you’re a client of HSBC, then you’ve probably heard the news about the sale of HSBC to the Royal Bank of Canada (RBC). It was first announced in November 2022. Since then, the acquisition has been undergoing regulatory review from the government, a required part of the process as per the Bank Act.
RBC has released communications to HSBC clients about what they can expect during and after the transition, but there’s still plenty of unknowns. And if you’re reading this, you may be wondering what it all means for you.
Here we have all the details on the upcoming sale, how it’s going to affect you, and the best alternative bank accounts to consider.
RBC’s acquisition of HSBC
On November 29, 2022, it was announced that the Royal Bank of Canada (RBC) would purchase HSBC Bank Canada in an acquisition worth $13.5 billion. In this strategic sale, RBC would acquire 100% equity of HSBC, including its 130 branches and 780,000 customers.
Before this acquisition can become a reality, it must be reviewed by the Competition Bureau to determine whether it would impede competition in the financial sector. In September 2023, the Bureau found it would not prevent competition and passed its findings to the Minister of Finance, who gets to make a final decision.
The sale also needs to go through the Office of the Superintendent of Financial Institutions (OSFI).
As of November 2023, the process is still ongoing. Both institutions are gearing up for the transition and RBC has informed HSBC clients what to expect. It’s business as usual until the Minister of Finance approves the sale.
How this sale impacts HSBC clients
As mentioned, it’s business as usual until the final sale is approved. Until then, both HSBC and RBC state that they’ll keep you updated with additional information when the time comes, including what this will mean for you and the services that are provided to you, along with a transition date.
Here’s some of the reassurances from RBC:
- you’ll have access to all the benefits from RBC, including the Avion rewards program, Vantage, NOMI, and mobile app,
- they plan to maintain existing relationships and provide access to advisors through a network of branches and ATMs, and
- offer multi-language services (including Cantonese and Mandarin).
And of course, the question on everyone’s minds is how RBC plans to preserve international offerings, a major strength of HSBC. RBC assures clients that they’ll have access to foreign currency accounts, international payments, and a wide range of investment options, global asset management, and trading.
Additionally, all credit products that clients held with HSBC will remain the same once transitioned to RBC.
Alternatives to HSBC bank accounts
The HSBC chequing and savings accounts will likely be discontinued in the future. They've already discontinued their chequing account’s previously very attractive welcome bonus, and their HRSA's welcome bonus is set to wind down on January 12, 2024. While they will still accept new applicants, many of their digital channels are also currently on hold pending the finalization of the sale.
And while we don’t know the exact details on which accounts will be offered to HSBC clients once they’re transitioned to RBC, here are some options for you to consider as alternatives.
| HSBC bank account | Alternative | Why it's better |
|---|---|---|
| HSBC Advance Chequing Account | Simplii No Fee Chequing Account | * No monthly fee * Unlimited transactions * Free international money transfers * $350 welcome bonus |
| HSBC Premier Chequing Account | Scotiabank Ultimate Package | * Cheaper monthly fee * Unlimited transactions * Earn Scene+ points * Free international money transfers * $100 GeniusCash + $700 welcome bonus |
| HSBC High Rate Savings Account | KOHO Earn Interest | * Earn up to 3.5% * Unlimited transactions * Earn up to 6% back in this hybrid account |
Are you currently an HSBC client?
Do you hold accounts with HSBC? What do you think of the proposed acquisition? Are you planning to transition to RBC or look elsewhere?
Let us know your thoughts in the comments section below.
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