Back to basics: The current competitive strategy of HSBC Bank Canada

This paper analyzes HSBC Bank Canada’s current strategy for competing within the Canadian banking industry. HSBC Bank Canada has enjoyed considerable financial success over the past couple of decades. However, the overall direction of the industry is towards lower, interest-rate spreads and intensified competition. Many of the bank’s primary competitors are reducing costs through a variety of means, such as centralization and automation of processes. In order for HSBC Bank Canada to succeed in this increasingly challenging market, it must look at differentiating itself from the competition. It does not enjoy the same size-related advantages as the larger Canadian banks. Historically, HSBC Bank Canada used customer service as its primary differentiator. This advantage is slipping for a variety of reasons outlined in the paper. A refocus on the bank’s principal resources is recommended to ensure HSBC Bank Canada’s future remains as strong as its past.