Scotiabank vs. HSBC: A Comparison of the Banks

In a country like Canada, where there is a massive number of migrants entering from all corners of the world, it is essential to know what bank will suit a person the most. In this article, two significant banks in Canada will go head to head to see how they differ and where they thrive.

The two banks in focus today are The Bank of Nova Scotia (Scotiabank) and HSBC Holding plc. To start with the comparison, here are is a brief introduction to each of the banks.

Comparison of origin and history of Scotiabank and HSBC

The Bank of Nova Scotia is the third largest bank in Canada and is a part of the Big Five Banks in Canada. Scotiabank became part of the Big Five thanks to its market capitalization and deposits. Another name that Scotiabank earned is Canada’s most international bank. This title is thanks to its acquisitions in Europe, some parts of Asia, Latin America, and the Caribbean. It was a place called Halifax in Nova Scotia that Scotiabank started back in 1832. The executive offices are in Toronto, Ontario. 

HSBC bank is the largest bank in Europe with 13 subsidiaries, including HBSC Canada. The Hongkong and Shanghai Banking Corporation established this bank in London in 1991. It got incorporated in 1866 and, by 2018, became the 7th largest bank in the world. It was in 2014 when Forbes names HSBC as the sixth largest public company in the world. HBSC is both a multinational investment bank as well as a company that holds financial services. It has its world headquarters in Canary Wharf, London.

Comparison of the business lines of Scotiabank and product lines of HSBC

The Bank of Nova Scotia has four business lines that aim at serving as many target markets as possible to keep their customers satisfied. The said business lines are:

• Banking services for customers living in Canada
• Serving of financial advice and products to specific customers even outside Canada
• Wealth management services and other insurance services in Canada on an international level through Global Wealth & Insurance (GWI)
• Corporation of global government and institutional investor clients through Global Banking & Markets.

As for HSBC, they focus more on the types of products that they offer in an attempt to stay ahead of competitors in the bank industry. The following are the five product lines of HSBC:

• HSBC Direct, an online direct banking operation that uses savings, mortgages, and accounts to get customers.
• HSBCnet provides cash management, payment management, and other trade services to customers.
• HSBC advance allows professional workers to open their accounts in different countries and even enable them to make a credit history transfer.

Comparison of currency exchange services of Scotiabank and HSBC

Both Scotiabank and HSBC provide different kinds of banking services outside Canada and allows people in Canada to engage in currency exchange and foreign exchange. Another option is Alterna Savings’ currency exchange services for popular currencies such as the US dollar, Great British Pound, and the Euro.

Scotiabank offers three types of foreign currency products:

• With Scotia Euro Daily Interest and US Dollar Savings account, customers can save money either in US dollars or euro. 
• A foreign currency account allows customers to expand payment options regarding business affairs.
• The Scotia US Dollar Visa is a product that adds no conversion fee for any purchase in the United States.

On the other hand, HSBC offers three options of products for currency exchange:

• Spot option to buy or sell any kind of foreign currency at the current currency exchange rate
• Forwards option allows customers to fix the currency exchange rate today for an exchange (buying or selling of currency) on a future date.
• Options choice that grants people the right to buy or sell an amount of foreign currency on a fixed future date.