ST. CATHERINE’S, Ontario–Meridian Credit Union here said it is on target to meet the April launch of a new digital bank, saying regulators have signed off on the new offering.
With approval from the Office of the Superintendent of Financial Institutions confirmed, Meridian Credit Union has now launched a website to allow consumers to get a preview of the new nationwide lender — which is being called motusbank — before the official opening this Spring.
CUToday.info originally reported plans for motusbank here.
At that time the credit union had said the bank would not be publicly traded and would ultimately be owned by Meridian members as a separate legal entity that operates independently with its own member base and banking system.
“It’s just an opportunity to start to acquaint Canadians with what motusbank is, who it’s backed by, a little bit of information about Meridian… And to get more information as we get closer to our actual in-market launch date, which we’re hoping will be sometime in April,” Bill Maurin, president and CEO of Meridian and motusbank, told the Financial Post.
Meridian has more than 300,000 members and $20 billion assets, the Post noted, before adding, “It will, however, have its hands full trying to expand outside of Ontario and into Canada’s competitive banking industry, which is dominated by the Big Six lenders.”
‘Optimistic’ About Chances
Maurin told the Financial Post he is optimistic about the bank’s chances, saying Canadians have shown an interest in upstarts before, such as with Netherlands-based ING Group NV’s ING Direct Canada, which was bought by Bank of Nova Scotia in 2012 and renamed Tangerine.
Motusbank will offer the usual slate of banking products and services, such as checking and savings accounts, loans and lines of credit, an ATM network and mortgages, according to the credit union. Maurin told the Financial Post the bank will likely add some kind of digital wealth management capability within a year or so that will be similar to a robo-advisor, albeit with “more of a human touch” to it.