Canadian First Financial buys MonCana

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Canadian First Financial and MonCana Capital Corporation announced the acquisition of MonCana by Canadian First Financial, in a statement released Thursday.

“We are combining the companies and this will help us build out our retail banking distribution network,” Peter Vukanovich, president and CEO of Canadian First told MortgageBrokerNews.ca. “We think it's a big win-win for both companies: We value Moncana's people, infrastructure and relationships; (and) Moncana is going to benefit from our retail banking distribution model and seasoned financial services executives.”

The transaction, which is expected to close this September once regulatory approvals are received, “is great news for both our companies and customers,” James Clayton, president of relative newcomer MonCana, which has aggressively made inroads into the broker channel since coming online.

“MonCana will benefit from Canadian First’s network of top-producing financial services professionals and strong capital markets relationships.”

According to the press release, the transaction accelerates Canadian First’s plan to deliver financial products and "one-stop shopping for banking services, mortgages, wealth management and insurance products.”

The news also comes on the heels of Canadian First's announcement last month that it has won bank status.

"Our bank envisions becoming a major player in the mortgage banking space over the next few years." Founder and Chief Commercial Officer Karl Straky told MortgageBrokerNews.ca in July. "We will differentiate ourselves by also offering our mortgage broker partners the ability to provide additional retail banking products to their clients and thereby expand their value proposition and deepen their existing customer relationships.

"They will also have the opportunity to own their own local Canadian First Financial Centre and build a different, more valuable and sustainable business compared to their mortgage business alone."

 

  • Sasha on 2013-08-08 10:36:01 AM

    Great News in the mortgage industry. Exciting new model. Looking forward to hearing more!

  • Wane Davis on 2013-08-08 11:05:47 AM

    ...and "they" said it couldn't be done! Keep goin boys...full steam ahead!

  • John Bargis, Mortgage Edge on 2013-08-08 11:10:00 AM

    Wow!...This gets more and more interesting....I like the dynamics....The model certainly has potential....Much will depend on the way the structure compares to the monolines and the retail players that don't openly provide access to the other wide range of products.

  • steve on 2013-08-08 11:24:15 AM

    Moncana has lost over $20 Million so far. With the new rules and regulation it doesn't make sense to be a bank unless you have $250+ Million in startup cash. It will take 10 years before this bank can even considered a small player in market place. See Bridgewater, western Bank, Bank West, General bank of Canada,.....

  • Peter Johnson on 2013-08-08 11:31:45 AM

    This is awesome news and should be no surprise to anyone, considering the the forward thinking group assembled. We anticipate a bright future.

  • Ron Butler on 2013-08-08 1:15:06 PM

    I think this intelligent marriage of strengths is something we will see more of in our channel over the next 12 months: Consolidation.

  • Peter on 2013-08-09 10:33:46 AM

    This will succeed because it is a broker owned Bank. The examples Steve gives are not.

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