Canadian transactions: RBC acquisition of HSBC Canada set to close March 28
Finix, Peoples Trust team up on payments offering
Royal Bank of Canada’s deal to acquire HSBC Canada for $10 billion, announced in November, is expected to close on March 28.
The bank announced last quarter that conversion activities would likely begin April 1, according to an RBC release.
Expenses were up 6% year over year, “adjusting for the acquisition and integration-related costs to HSBC Canada,” Chief Financial Officer Nadine Ahn said during the bank’s fourth-quarter earnings call today.
Integration costs reached CA$265 million ($195 million) for the quarter, up from $150 million in Q4 2023, according to the bank’s earnings supplement.
The bank experienced some delays “in terms of regulatory approval,” Neil McLaughlin, group head of personal and commercial banking, said during today’s call.
RBC expects to provide updates on revenue and expense reflecting the acquisition next quarter, Ahn said.
Finix, Peoples Trust Company team up on payments offering
Payments technology provider Finix expanded into Canada on Feb. 27.
Finix allows business to send and receive payments online or in person and is broadening its capabilities in Canada in collaboration with Peoples Trust Company, according to a Feb. 27 Finix release.
This effort has been “years in the making,” Finix Chief Executive Richie Serna told Bank Automation News, noting that “during my time in the payments industry, I’ve learned that payment processors have struggled and failed to support multinational payments.”
He attributed the failed multinational efforts to four factors:
- Most processors are spun out of banks that operate regionally or nationally;
- Processors are outdated;
- Processors outsource processing capabilities; and
- Most processors don’t build new technology, but instead acquire it via mergers and acquisitions.
“Less than five processors can handle online and in-store payments in both the U.S. and Canada,” he said. Finix is working to expand its offering through its single integration and API to “unify payment solutions for our clients.”
Scotiabank, Home Hardware launch Visa card
Scotiabank and hardware, lumber and home improvement retailer Home Hardware launched the Scotia Home Hardware PRO Visa Business Card on Jan. 31, according to a Scotiabank release.
The card, developed for small business owners, allows users to track expenses through Visa Spend Clarity for Business, a web-based solution for spend management.
“Contractors, builders and tradespeople make an enormous contribution to the Canadian economy and the segment continues to grow to match the growing demand for new homes and renovations,” Pouya Zangeneh, senior vice president of enterprise strategy at Scotiabank, said in the release. “Fast, reliable, and secure access to credit is crucial for the daily operations of small business owners.”
TD Bank, Plaid work together on data-access
TD Bank Group and global data network Plaid have entered into an agreement to enable U.S. and Canadian customers to share financial data more securely, according to a December release.
“We know our customers are looking to access new types of services that meet their unique financial needs,” Franklin Garrigues, vice president of external ecosystems at TD, said in the release. “This agreement will enable our customers who choose to access the applications and services on Plaid’s network to do so with more ease, value and security.”
As part of its strategy to keep data secure, the bank:
- Joined the Financial Data Exchange in 2018;
- Collaborated with Mastercard’s Finicity on a data access agreement in 2020;
- Joined the Akoya Data Access Network in 2021; and
- Entered into a North American data access agreement with wealth tech giant Envestnet in 2021.
TD Bank reports its fourth-quarter earnings Feb. 29.
Editor’s note: All amounts have been converted to U.S. dollars.
Visit Bank Automation News’ Transactions Database, which lists the technology selected or acquired by companies in the financial services industry, with a specific focus on technology that enhances automation.
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