Simplii a PC Financial rebrand
Loblaw Companies Ltd. and the Canadian Imperial Bank of Commerce have terminated their 19-year President’s Choice Financial partnership as the bank unveiled its own digital brand Wednesday.
PC Financial users will transition to CIBC’s new Simplii Financial mobile and online brand, with their deposits, mortgages and loans — which have been backed by CIBC since 1998 — rebranded by Nov. 1, the lender said.
Simplii customers will be able to use CIBC’s automated teller machines for free as they did under PC Financial, as well as conduct their banking online, via telephone and mobile, said Mike Boluch, CIBC’s executive vice- president of direct banking, innovation and payments. But Simplii will not have any physical branches.
Customers of the newly minted online banking unit will have the same, no- fee daily banking and interest rates as under PC Financial, and terms and conditions of the mortgages i ssued by CIBC will remain unchanged, the bank said.
“The offer is very similar out of the gate to what they have today. That’s by design — certainly our intent,” Boluch said. “We want to minimize any impact of change on our clients.”
While customers will be able to retain and use the points they have acquired through Loblaw’s PC Plus loyalty program — which are redeemable for free groceries at its vast network of retail stores — they will not be able accrue any more under the Simplii offering after Oct. 31.
PC Financial MasterCard products, however, remain unchanged as they are offered by President’s Choice Bank, which has a Schedule I banking licence, giving it authorization as a domestic bank to take deposits under the Bank Act. These credit cards will continue to accrue PC points, as usual.
CIBC’s decision to wind down the arrangement — during which it built a customer base of roughly 2 million users — with President’s Choice Bank, a whollyowned subsidiary of Loblaw, was a “mutual” one for various reasons, i ncluding a changed banking landscape, said Boluch.
“It was a good business,” he said in an interview. “I think bringing our direct banking fully in-house gives us a degree of control and greater flexibility for the future.”
Loblaw subsidiary President’s Choice Financial also said it was a mutual decision to end the relationship.
“We are excited about the future and our ability to create new products to serve Canadians,” said Barry Columb, CEOP of President’s Choice Financial, in a statement on Wednesday.
The change allows PC Financial “to control the products and services we offer Canadians,” said PC Financial spokeswoman Lana Gogas in an email.
With the rebranding, PC Financial customers will be able to use their bank accounts as they normally would and the name change will have no impact on items such as direct deposits, automated bill payments or outstanding cheques.
Between Nov. 1 and April 13, 2018, consumer banking customers will receive a newly- branded debit card, PC Financial said in an email sent to clients. While Simplii customers won’t earn PC points via their newly-branded debit card, they can still remain a member of the PC loyalty program.
PC Bank said it’s “exploring ways to deliver innovation and simplicity,” when asked what other products PC Financial will offer going forward, and whether it plans to offer deposits or loans either with another backer or under i ts own banking licence.
“We will be taking some time to improve our customer experience, ensuring our future is as innovative as our past,” Gogas said in an email.
Banking services at instore pavilions and ATMs operated by CIBC will be phased out of Loblaws and partner grocery stores between Nov. 1, 2017, and March 31, 2018, CIBC said.
But it’s unclear what the change means for the instore pavilions and financial kiosks, or whether PC Financial would retain an in-store presence or if another bank would be moving in.