Simplii Financial to meet the needs of Canadians who value straightforward, no-fee daily banking and great rates as CIBC and President's Choice Bank agree to wind-down their PC Financial® consumer banking offer
TORONTO, Aug. 16, 2017 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced plans to launch Simplii Financial™, a new direct banking brand for clients who want no-fee daily banking through online, mobile and telephone channels.
"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. For CIBC, innovating and adapting to our clients' needs is part of our DNA."
In conjunction with this launch, CIBC and President's Choice Bank have agreed that they will wind-down their consumer banking offer, and clients with President's Choice Financial® products provided by CIBC will transition to Simplii Financial. As the bank behind the President's Choice Financial® consumer banking offer for nearly 20 years, CIBC 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 President's Choice Bank.
Added Mr. Boluch, "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."
The Simplii Financial brand will replace the President's Choice Financial® brand banking products and services issued by CIBC, effective November 1. Clients can continue to use their bank accounts without interruption and expect the same no-fee daily banking.
- No-fee daily banking and the same great interest savings rates
- Great mortgage and loan solutions
- Bank accounts will continue to function as they normally would
- No change to account numbers, registered bill payments, preauthorized debits or automatic payroll deposits
- No changes to the terms and conditions of mortgages
- Access to CIBC ATMs across Canada free of charge and Personal Banking Representatives by telephone at 1-888-723-8881
- Clients can continue to earn PC® points on banking accounts until October 31. After that date, clients can continue to redeem PC® points through the points program operated by Loblaw Companies Limited and its affiliates.
Banking services at in-store pavilions and ATMs operated by CIBC will be phased out of Loblaws and partner grocery stores between November 1, 2017 and March 31, 2018. Clients can continue to access CIBC bank machines free of charge and call 1-888-723-8881 for banking services and personalized advice.
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. With the new Simplii Financial brand and ongoing investments in digital channels, and direct banking offer and platform, CIBC will continue to enhance its capabilities, value for clients, and add incremental growth over time.
CIBC is a recognized leader in digital banking with numerous awards, including the highest score for mobile and online banking functionality in Canada from Forrester Research, and Financial Institution Innovator of the Year from the Digital Finance Institute. CIBC also has a long history of delivering innovative services to clients, such as, more recently, providing free credit scores via its mobile banking app and no-fee Global Money Transfer™ remittance service.
CIBC is a leading Canadian-based global financial institution with 11 million personal banking, business, public sector and institutional clients. Across Personal and Small Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre.
®/TM President's Choice Financial, PC Financial, PC and Loblaw are registered trademarks of Loblaws Inc. Used by CIBC under license.
A NOTE ABOUT FORWARD-LOOKING STATEMENTS: From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this press release, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communications. These statements include, but are not limited to, statements about transaction-related costs to be reported in our fourth quarter and about our financial condition, priorities, targets, ongoing objectives, strategies and outlook. Forward-looking statements are subject to inherent risks and uncertainties that may be general or specific. A variety of factors, many of which are beyond our control, could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements, including general business and economic conditions worldwide; amendments to, and interpretations of, risk-based capital guidelines; and changes in monetary and economic policy. We do not undertake to update any forward-looking statement except as required by law.
SOURCE CIBC - Corporate