To the point
RBC has agreed to purchase the business of HSBC Bank Canada for $13.5 billion with plans to complete the transaction by the end of 2023.
RBC and HSBC Canada: HSBC card withdrawals as of October 13, 2023
Since October 13, 2023, HSBC has closed off applications for new credit cards. We will update this article with news from RBC and HSBC for existing customers.
If you haven’t been lucky enough to get the HSBC World Elite® Mastercard®, especially to benefit from a credit card with no conversion fees, there’s nothing left to do but turn to one of these Scotiabank credit cards:
Below is the original article announcing this acquisition on November 29, 2022:
RBC and HSBC Canada: the transaction
A few months ago, HSBC announced that it was looking for a buyer for its Canadian branch, HSBC Canada. And RBC Bank won the bid for $13.5 billion.
With HSBC Canada, RBC will further position itself with certain clients with wealth management needs such as :
- International customers
- Newcomers
HSBC has 130 branches in Canada and 4,200 employees (including 450 in Quebec).
In comparison, RBC has 65,000 full-time employees in Canada.
HSBC and RBC: Credit Cards
HSBC offers several Mastercard credit cards:
- HSBC World Elite® Mastercard®
- HSBC Travel Rewards Mastercard®
- HSBC Cash Rewards Mastercard®
- HSBC +Rewards Mastercard
On the RBC Bank side, it’s more about Visa credit cards. However, RBC also issues some Mastercard credit cards, such as :
Two cards that can be compared between the two institutions are the RBC Avion Visa Infinite Card and the HSBC World Elite® Mastercard®.
These are the flagship products of both banks. They are both part of a transferable points reward program:
In fact, these programs have common partners such as British Airways Executive Club and Asia Miles. This may already suggest synergies between RBC and HSBC.
However, the HSBC World Elite® Mastercard® takes the lead over the RBC credit card on three counts:
- Point accumulation (6 points per dollar for travel purchases and 3 points everywhere else)
- No conversion fees for foreign currency transactions
- It is a Mastercard (accepted at Costco)
Bottom Line
It is too early to say whether RBC will maintain all the features of HSBC-issued credit cards or whether existing cardholders will gradually be redirected to current (or future) RBC Bank products.
However, HSBC reassures us that there will be no immediate changes. Regulatory approval must be obtained, and there will be a transition period of several months.
This transaction is expected to be finalized by the end of 2023, so we can expect changes in 2024 at the earliest.
Come to discuss that topic in our Facebook Group!
