(Toronto) The Royal Bank of Canada (RBC) will close 25 branches of HSBC Bank Canada, which it will acquire in the coming days, and will convert dozens of others into RBC locations.
RBC spokesperson Christine Stewart said the closures are part of the “process of optimizing our branch network in a way that makes the most sense for our customers and our business.”
Some of the establishments that will be closed are near RBC branches, she added in an email, noting that clients were informed of the changes in early March.
In addition, RBC will begin converting other HSBC branches and offices on March 28, the day its 13.5 billion buyout agreement will be concluded, if it meets the usual conditions.
Branches and offices that will be converted will reopen on 1er April under the RBC banner.
The transformation of HSBC’s physical locations will be one of the first manifestations of the expansion of the RBC empire.
RBC announced its intention to purchase HSBC Canada in November 2022. At that time, HSBC had approximately 800,000 customers, 130 branches, 4,200 employees and a 2% market share.
It also had 130 billion in assets, making it the seventh largest bank in the country.
Although HSBC is a minor player compared to some of the country’s largest financial institutions, experts predict its sale to RBC could negatively impact consumer choice, as it often offered lower borrowing costs than those of its competitors.
Other larger banks offered fixed and variable mortgage rates 20 to 80 basis points higher than HSBC, mortgage strategist Robert McLister raised last December.
“It was a low-cost everyday lender, which is extremely valuable in the Canadian market,” he argued.
Although it will take some time to get a fuller picture of the long-term impact of HSBC’s takeover on consumers, many of the institution’s customers are concerned.
In anticipation of the sale, HSBC informed its customers that their products, services and balances would be automatically migrated to similar offers and accounts offered by RBC.
HSBC customers have also been notified that they will receive new RBC credit cards in March and will have their bank and credit card statements and documents migrated to RBC accounts.
They were encouraged to upload their investment documents, which they were told might not be available online after migration.
“Ensuring that customers continue to receive exceptional advice and service is our highest priority,” assured Mr.me Stewart.
With information from Sammy Hudes and Ian Bickis