Canada’s banking group CIBC has unveiled Simplii Financial, its new direct banking brand, signaling the end of its President’s Choice (PC) Financial consumer banking business with retailer Loblaw, reports Paybefore sister publication Banking Technology.
Mike Boluch, EVP, direct banking, innovation and payments, CIBC, says Simplii will deliver “straightforward, no-fee everyday banking” and offer services by telephone, online, or through mobile and other digital channels.
According to CIBC, it has agreed with PC Bank that they will wind down their consumer banking offer, and the clients—numbering around 2 million—with PC Financial products provided by CIBC will move to Simplii Financial.
CIBC says it has been behind PC Financial for nearly 20 years, and so already provides banking products and services to these clients, as well as mobile, online and telephone banking support. There are no changes to PC Financial Mastercard products as they are offered by PC Bank.
The Simplii Financial brand will replace the PC Financial brand banking products and services issued by CIBC, effective Nov. 1 this year. Clients can continue to use their bank accounts “without interruption.”
There are no changes to account numbers, registered bill payments, pre-authorised debits or automatic payroll deposits; and no changes to the terms and conditions of mortgages.
Banking services at in-store “pavilions” and ATMs operated by CIBC will be phased out of Loblaws and partner grocery stores between Nov. 1, 2017, and March 31, 2018.
Related to this transaction, CIBC expects to incur fees and charges of approximately $100 million pre-tax in the current quarter, which will be reported as an item of note when CIBC releases its fourth-quarter results.
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