HSBC Retail Expansion In Canada
HSBC Holdings Plc is getting wider in Canada, its latest mortgage rate is proof of this.
HSBC Canada is offering a five-year fixed-term mortgages at 2.39 percent, undercutting the lowest discretionary rates at the largest domestic lenders including Toronto-Dominion Bank and Royal Bank of Canada.
Sandra Stuart, chief executive officer of the Canadian unit of London-based HSBC, said in an interview from her Vancouver office stated, “I want to be more competitive, I will never be as big as the Big Five, but I certainly want to have our share of market, and I want to be out there with good competitive products.”
On retail banking and wealth, which has about 2,400 employees, HSBC has made some important changes. Last October, the lender recruited Larry Tomei, a 22-year veteran from Canadian Imperial Bank of Commerce to head up the business. The bank, which previously targeted a more affluent clientele for its mortgages, has “broadened its strategy” to woo a broader range of customers leading with that mortgage offering, according to Stuart.
Rob McLister, founder of the mortgage comparison website RateSpy.com said, “HSBC has had market-beating rates for over a year now, HSBC is on a market share binge.”
HSBC is looking to get new customers by opening more branches in cities including Vancouver, Montreal and Toronto within the next 12 months, adding to its current network of 129 locations across the country.
“They won’t be the big heavy branches with a vault,” Stuart said. “There’ll be a couple of ATMs, a place to get cash, someone to help you get a mortgage, there’ll be WIFI, computer terminals and it’ll be more digital, and it’ll be a smaller footprint.”
More Deals
Stuart is also open to the idea of acquisitions.
“If there was something that made sense for us, we’d be open to it,” Stuart said. “There’s not too much out there to buy, but if a portfolio became available or something made sense for us, we’d absolutely take a look at it.”
That doesn’t include looking at Home Capital Group Inc., the struggling mortgage lender facing a run on deposits.
“This isn’t something for us right now,” she said.
