A major broker channel player announced Thursday that it is entering the direct-to-consumer space – under a new brand, Oaken Financial -- with consumer deposit products, including savings accounts and GICs.
"The introduction of Oaken is part of Home Trust's efforts to provide customers with a secure alternative to managing their savings independently," said Martin Reid, president of Home Trust. "We want to offer our customers choice, respect and simplicity. Consumers today are also looking for better value and Oaken Financial offers some of the best rates in Canada."
Last year Home Trust made it possible for brokers to offer GICs to clients.
However, this new move widens another channel between it and Canadian consumers and may set the stage for more broker lenders to follow suit.
“The Oaken Savings Account offers a competitive daily interest rate (currently 1.65 per cent), no monthly fees, no transaction limits and requires no minimum balance,” an official statement from Home Capital Group said. “In addition, customers can easily transfer money to and from accounts at other Canadian financial institutions.”
Oaken Financial is set to add online banking for customers in early 2014.