CIBC breaks ties with PC Financial, launches new brand Simplii Financial

The PC Financial consumer banking business was run by the CIBC and Loblaw Companies Ltd.

The PC Financial took to Twitter to announce their mutual decision of breaking up a 20-year business relationship with the CIBC. "Today, we announced a mutual agreement to end our 20-year relationship with CIBC."

The PC Financial has also issued a statement where they assured all its customers to get an uninterrupted service.

The statement reads: "We’ll make sure that you experience an easy and seamless transition."

Some of the things which will remain same even after the snapping of ties include bank accounts, access to banking, terms and conditions of the mortgages with the PC, Creditor Insurance and PC Financial® Mastercard®.

However, the changes which the customers will experience are the brand name, debit card, PC Financial pavilions, Bank Machines. Customers won't be able to earn PC® points any longer for using debit card or for the first payroll or pension direct deposit to one's bank account

Mortgage will no longer earn PC® points on each anniversary after this break up. However, the PC Financial said: "Instead, we are happy to provide you with a cash payment on each anniversary of the full value of PC® points you are entitled to via direct deposit to the bank account from which your mortgage payments are made."

Within an hour of the announcement of breaking up with the business partner, the CIBC announced the name of a new brand Simplii Financial which will replace the PC Financial.

The Simplii Financial will start operating from November 1.

The two million customers who are served by the PC Financial will be moved to the Simplii Financial.

The CIBC, headquartered in Toronto, is one of the five big banks in Canada.

(Reporting by Souvik Ghosh)

Images: Official Facebook pages of CIBC, PCFinancial.