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New digital banking competitor coming in winter 2020...Brightside

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  • Sep 6th, 2020 10:16 pm
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New digital banking competitor coming in winter 2020...Brightside

I've made brief passing mentions to this in other threads, as @jacnel, @titaniumtux, and @dekvitaly will recall, but thought it deserved its own thread. With Coast Capital Savings Federal Credit Union still not officially accepting customers outside of British Columbia and Motus Bank struggling to get traction, especially on the lending side (the "butter" for its bread), Laurentian Bank launching both LBC Digital and B2B Bank, it's worth highlighting a forthcoming no-fee digital banking and HISA direct-to-consumer offering in Brightside. It will be restricted to Alberta residents, at least in the short- to medium-term, but it does promise some impressive looking mobile banking features, services, and platform. There's potential of it being rolled out nationally, but ATB Financial, the company which operates it, hasn't confirmed as much.

Web link: https://www.hibrightside.ca/

Sidebar comment: ATB Financial and the Laurentian Bank Financial Group, which includes B2B Bank, are roughly the same size in terms of total assets (~$45-50 biillion).

Cheers,
Doug
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They'd have to offer substantially better rates than Laurentian's subbies for me to sign up OOP.

I have ATB oddly enough, but I rather not do the whole OOP signup if it doesn't give me anything above what I already have.
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titaniumtux wrote: They'd have to offer substantially better rates than Laurentian's subbies for me to sign up OOP.

I have ATB oddly enough, but I rather not do the whole OOP signup if it doesn't give me anything above what I already have.
Yeah, I agree with you on that, though some of their mobile banking features look interesting. I think they can beat Motus and Alterna no problem (not ATM network, though).

How did you open an ATB Financial account, did your digital sign up go through even though you're on Ontario? Or did you visit Alberta and open an account?

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Doug
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dmehus wrote: Yeah, I agree with you on that, though some of their mobile banking features look interesting. I think they can beat Motus and Alterna no problem (not ATM network, though).

How did you open an ATB Financial account, did your digital sign up go through even though you're on Ontario? Or did you visit Alberta and open an account?

Cheers,
Doug
Sorry can't leak that here :twisted:
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At any rate, ATB Financial's main website has kind of gone to the dogs, I have to say. Their "news releases" won't let you look past the previous six news releases. They used to have a digital account opening process, but now they don't. Generally speaking, whereas their website used to have a lot of useful content, a lot of that has been deleted. And who was the go ahead person who said blue on bright pink was a great idea for a colour scheme? ;)

One positive development: they acquired Grow Technology Inc.'s assets (digital account opening and lending platform, which powers Motus Bank's digital lending onboarding and adjudication). So, perhaps, they're revamping their digital account opening processes, possibly with plans to compete nationally...

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Doug
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Whether we get this bank nationwide or not, whatever incentives Albertans to save money for a rainy day is good for Canada.
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ownthesky wrote: Whether we get this bank nationwide or not, whatever incentives Albertans to save money for a rainy day is good for Canada.
Yeah, I agree. I'd kind of would like to open an account and, specifically, their GIC that pays you bonus interest at maturity that is tied to the price of WTI and/or WCS oil. ;)

Cheers,
Doug
Last edited by dmehus on Nov 24th, 2019 4:38 pm, edited 1 time in total.
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dmehus wrote: Yeah, I agree. I'd kind of like to open an account and, specifically, their GIC that pays you bonus interest at maturity that is tied to the price of WTI and/or WCS oil. ;)

Cheers,
Doug
LOL! We couldn’t all it a Wild Rose Freedom GIC; it’ll sell like hot cakes!
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dmehus wrote: At any rate, ATB Financial's main website has kind of gone to the dogs, I have to say. Their "news releases" won't let you look past the previous six news releases. They used to have a digital account opening process, but now they don't. Generally speaking, whereas their website used to have a lot of useful content, a lot of that has been deleted. And who was the go ahead person who said blue on bright pink was a great idea for a colour scheme? ;)

One positive development: they acquired Grow Technology Inc.'s assets (digital account opening and lending platform, which powers Motus Bank's digital lending onboarding and adjudication). So, perhaps, they're revamping their digital account opening processes, possibly with plans to compete nationally...

Cheers,
Doug
I don’t see them going national in their current structure. Their deposits are directly guaranteed by the Province of Alberta so I’d be surprised that there’d be any political will on Alberta’s part to take on insuring deposits for non-residents of Alberta. To go national, they’d probably need to create a separate entity that would seek to be covered under CDIC either as a trust & loan company or as a federal credit union (like coast capital). Otherwise, if they aren’t part of a formal arm’s length deposit insurance arrangement outside of Alberta I believe that they’ll struggle to gain traction.

Sure, they might pick up some clients & deposits outside of Alberta but based on the number & types of questions about CDIC that we see here on RFD I think they’d struggle to pick up any kind of meaningful market share based solely on Alberta’s backing alone.
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dmehus wrote: Why?

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Doug
Forum rules.

ATB requires an address in AB which I theoretically may or may not have.
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CanadianLurker wrote: I don’t see them going national in their current structure. Their deposits are directly guaranteed by the Province of Alberta so I’d be surprised that there’d be any political will on Alberta’s part to take on insuring deposits for non-residents of Alberta. To go national, they’d probably need to create a separate entity that would seek to be covered under CDIC either as a trust & loan company or as a federal credit union (like coast capital). Otherwise, if they aren’t part of a formal arm’s length deposit insurance arrangement outside of Alberta I believe that they’ll struggle to gain traction.

Sure, they might pick up some clients & deposits outside of Alberta but based on the number & types of questions about CDIC that we see here on RFD I think they’d struggle to pick up any kind of meaningful market share based solely on Alberta’s backing alone.
Nah, government insurance on the ATB deposits wouldn't be a reason against going national. More than likely, the reason against it would be legislative—that is, they would be prohibited from lending outside of Alberta.

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Doug
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This is kinda cool, nice to see ATB make moves in this area. They're most likely doing this because of pressure from the UCP to increase profits.

As for if this will be offered outside of Alberta I'm going to say no. ATB isn't a federally regulated bank, in fact they aren't even really a bank. They're regulated by the Albertan government (their owner) and exist though a legislative stature. They aren't regulated under the bank act, or a comparable credit union act, they don't have deposit insurance either (although being a division of the government any debts on their books would have to be handled by the government). Unless this changes they'll be limited to Alberta and Alberta only.
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jacnel wrote: This is kinda cool, nice to see ATB make moves in this area. They're most likely doing this because of pressure from the UCP to increase profits.

As for if this will be offered outside of Alberta I'm going to say no. ATB isn't a federally regulated bank, in fact they aren't even really a bank. They're regulated by the Albertan government (their owner) and exist though a legislative stature. They aren't regulated under the bank act, or a comparable credit union act, they don't have deposit insurance either (although being a division of the government any debts on their books would have to be handled by the government). Unless this changes they'll be limited to Alberta and Alberta only. It also a misnomer to say they don't insure deposits; indeed, they do, it's just directly provided by the Alberta government versus some CU deposit insurers whose liabilities are not necessarily liabilities of the provincial government (Manitoba being one).
They're classified like a federally-regulated trust company, akin to Peoples Trust, Home Trust, and the like, for the purposes of the Payments Canada clearing system. They're still, for all sakes and purposes, a "bank"—just a provincially-regulated one. They could operate outside of Alberta if the Alberta government let them. Remember, the B.C. government had the Bank of British Columbia, though it was federally-regulated, that operated nationally until its bankruptcy in 1986.

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Doug
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dmehus wrote: They're classified like a federally-regulated trust company, akin to Peoples Trust, Home Trust, and the like, for the purposes of the Payments Canada clearing system. They're still, for all sakes and purposes, a "bank"—just a provincially-regulated one. They could operate outside of Alberta if the Alberta government let them. Remember, the B.C. government had the Bank of British Columbia, though it was federally-regulated, that operated nationally until its bankruptcy in 1986.

Cheers,
Doug
Was Ontario's POSO regulated the same way?
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