TORONTO (Reuters) - Canadian Imperial Bank of Commerce CM.TO said on Wednesday it plans to launch a new online banking brand to replace the PC Financial consumer banking business it operates in partnership with retailer Loblaw Companies Ltd L.TO.
CIBC, Canada’s fifth-biggest lender, said the 2 million customers it currently serves through PC Financial will have their accounts moved to the new Simplii Financial brand, which will also offer mobile and telephone banking, on Nov. 1.
It said existing PC Financial customers can continue to use their bank accounts without disruption and there will be no change to account numbers, bill payments, preauthorized debits or automatic payroll deposits. Terms and conditions of customers’ mortgages are also unaffected.
CIBC’s executive vice-president for direct banking, Mike Boluch, said the bank had agreed with Loblaw to wind down the PC Financial brand after a 19-year partnership.
“We thought it was right for us to go forward independently,” he said in an interview. “There’s been a lot of change in the banking landscape over that time and I think clients’ needs have changed.”
CIBC said it will take a C$100 million ($78 million) charge related to the transaction in the current quarter.
Reporting by Matt Scuffham; Editing by Matthew Lewis