Motusbank, a full-service digital bank that will be owned and backed by Ontario credit union, Meridian, has officially launched. Motusbank plans to offer Canadians all day-to-day banking services, apart from credit cards and investments.
“We are the first financial institution to offer a fully digital lending experience for mortgages and unsecured lending.”
Motusbank’s offerings include end-to-end digital platforms for deposit account openings, unsecured loans, and lines of credit. This new bank was first announced after Meridian purchased Roynat’s auto lease business from Scotiabank. In February, Meridian was given the green-light by the Office of the Superintendent of Financial Institutions to move ahead with Motusbank.
“We are the first financial institution to offer a fully digital lending experience for mortgages and for unsecured lending,” said Bill Maurin, president and CEO of both Meridian and Motusbank. “And with the backing of Meridian, Canadians can feel confident in securing loans from an established organization with a track record of financial strength and stability.”
The bank’s digital mortgage platform allows members and prospective members to apply for and receive mortgages, all online. Its digital mortgage service comes amid several other similar service announcements from competitors. Scotiabank has recently announced a new digital service that also allows Canadians to undergo the mortgage process online, called Scotiabank eHOME. In January, TD also announced a similar digital mortgage application tool. Montreal-based Nesto, which was founded in 2018, is also offering a digital mortgage software platform, as has Toronto-based startup Homewise.
Meridian, which has 340,000 members and $20.6 billion in assets under management, noted that Motusbank members will also receive access to one of Canada’s largest no-fee ATM networks.
“We believe that every Canadian deserves a shot at owning a home,” said Dave Baldarelli, COO of Motusbank. “Motusbank is a simple and hassle-free way to bank with a seamless and exceptional digital experience. There’s the added comfort in knowing that knowledgeable and professional staff are just a phone call away to help people make important decisions that require customized solutions.”
Motusbank argued its members will benefit from better pricing and services than traditional banks, as there are no public shareholders demanding increased returns every quarter. The bank’s competitors include the online outfits of Canada’s big banks, including CIBC’s Simplii Financial, and Scotiabank’s Tangerine.
“Motusbank is about a different way to bank,” Maurin said. “We’ve built an exceptional, friendly and transparent digital banking experience that is designed to make every experience a superior one, no matter how Motusbank is accessed.”
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