HSBC Holdings plc HSBC plans to double the size of its Canadian private client business over the next few years, according to Nader Guirguis, CEO of HSBC Private Wealth Services (Canada). 

For HSBC, the Canadian private wealth management market represents a significant opportunity. The country enjoys a good reputation for socioeconomic stability, liberal immigration policies and a growing pool of high-net-worth (HNW) individuals. HSBC currently has four main private wealth management hubs in Vancouver, Calgary, Toronto and Montreal and plans to open more offices in the near term.

HSBC’s Expansion Into Canada

Guirguis said Canada is “one of the jewels in the crown” of HSBC's global portfolio. He also added, “The country is attractive to us, as it’s a low-risk environment with a stable economy that is attracting wealth and quality immigrants from around the world.”

Since its entry in 1981, HSBC has been steadily increasing the scale of its operations in Canada. The bank has acquired several financial institutions since entering the market, like Lloyds Bank Canada, Republic National Bank of New York (Canada) and Barclays Bank Canada in the past. These acquisitions have bolstered its presence in the Canadian market, positioning HSBC as the largest foreign-owned bank in the country.

HSBC Canada is seeking to double its private client base over the next three to four years. To qualify for HSBC’s private banking services, HNW and ultra-high-net-worth individuals must have assets to invest of at least $753,900 (C$1 million). The bank’s Premier Banking services are available to customers with a minimum total relationship balance of $75,390 (C$100,000).

Most of HSBC's private clients in Canada are current or retired business owners while others are professionals and senior executives of large corporations. HSBC’s commercial banking clients serve as the primary channel for its private client base.

HSBC’s Tripod Model

HSBC uses an innovative Tripod Model catering to its private clients. In the said model, every client is assigned a relationship manager (RM), an investment counselor and a wealth planner. The RM offers the whole banking product line, such as bank accounts, cash management and other complex lending products. The investment counselor offers discretionary investment services, along with estate planning and business succession planning. The wealth planner offers tailored recommendations to the client, which are then fulfilled by the RM or the counselor. 

With such a team approach, the customer can be assured to get a holistic and integrated personal wealth management experience.