CIBC severs ties with President's Choice; launches new direct banking brand
17 August 2017 | 6444 views | 0
Canada's CIBC is cutting ties with Loblaw groceries President's Choice Financial and moving its nearly two million accounts to Simplii Financial, a new direct banking brand for clients who want no-fee daily banking through online, mobile and telephone channels
The winding down of the 20-year President's Choice collaborative venture will cost the bank approximately $100 million pre-tax in the current quarter. Loblaw says it will retain its loyalty point programme and credit card offering, while handing over all regular banking services to CIBC.
Banking services at in-store pavilions and ATMs operated by CIBC will be phased out of Loblaw and partner grocery stores between November and March. The brand switch will take effect from the beginning of next month.
Mike Boluch, EVP, direct banking, innovation & payments at CIBC, says: "First and foremost, we are committed to ensuring a smooth transition for our clients. We will continue to offer attractive rates, no-fee products, personalised advice and support ...for the growing number of Canadians who prefer to do their banking by telephone, online, or through mobile and other digital channels."
In 2015 the Canadian Bank announced plans to step up its migration to digital services in an effort to cut $600 million in costs by 2018 and see off a raft of new fintech competitors.