Ontario-based credit union Meridian has received authorization from the Office of the Superintendent of Financial Institutions to open its digital arm Motusbank this spring.
Merdian assured that the digital entity will provide its users the opportunity to “benefit from better pricing and services because there are no shareholders expecting quarterly returns”.
The announcement added that among others, the bank will offer mortgages, loans, and lines of credit, BankingTech.com reported.
“Motusbank will treat members as true partners, offering an exceptional digital experience, along with some of the most competitive rates and fees in the country,” Meridian CEO William Maurin said.
Maurin previously stated that he would like the digital arm to take on the Big Five.
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Canada’s environment of early adoption of tech solutions for financial services has placed it in an ideal spot to become a global leader in fintech/proptech innovations, Toronto-based financial services lawyer Stephen Redican of Borden Ladner Gervais LLP wrote recently.
Among the most who would benefit from this are domestic institutions, Redican predicted. This is especially pertinent since historically, Canadian financial organizations have moulded their processes to accommodate new technologies almost as soon as these tools became available.