CIBC announced Aug. 16 that it plans to introduce a new direct banking brand called Simplii Financial. At the same time, both CIBC and President’s Choice Bank, a subsidiary of Loblaw Companies, announced the end of their 20-year business relationship.
This means that the President’s Choice Financial brand will wind-down its consumer banking offer. It will no longer offer savings, chequing and mortgage accounts, which were provided through CIBC.
The new Simplii brand will replace the President's Choice Financial brand banking products and services effective Nov. 1. “Clients can continue to use their bank accounts without interruption and expect the same no-fee daily banking,” said CIBC.
"This is an exciting step as we continue to build a leading client-focused direct banking offer," said Mike Boluch, Executive Vice-President, Direct Banking, Innovation & Payments, CIBC. "Simplii will deliver straightforward, no-fee everyday banking and great rates for the growing number of Canadians who prefer to do their banking by telephone, online, or through mobile and other digital channels."
No changes to PC Financial MasterCard products
No changes are planned for the PC Financial MasterCard products since they are offered by President's Choice Bank.
"First and foremost, we are committed to ensuring a smooth transition for our clients. We will continue to offer attractive rates, no-fee products, personalized advice and support clients' needs to help them achieve their financial goals. We look forward to a seamless transition as we continue providing great service to our clients through Simplii," said Boluch,
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.
Payments and loyalty
In a separate announcement issued Aug. 16, President's Choice Bank stated that it will now focus on payments and loyalty following the mutual agreement to end the banking relationship with CIBC.
“President's Choice Financial will continue its focus on payment and loyalty, engaging shoppers through its Mastercard credit card products and PC Plus, one of the most loved loyalty programs in Canada,” said the company.
"We are excited about the future and our ability to create new products to serve Canadians," said Barry Columb, President and CEO, President's Choice Financial. "When we ask our customers what they value most, they tell us they appreciate the ability to make payments simply and put free groceries on the kitchen table. That remains our focus."