Coast going national | Page 2 | Coast Capital Savings | Discussion forum

Maybe they're waiting for Motive to spend down its advertising budget first!
Or waiting for mobus or motus or whatever it's called to show its hand?

More seriously, I think you can sign up to receive notifications. Pretty sure I did that anyway, but nothing has come.

Loonie said
Maybe they're waiting for Motive to spend down its advertising budget first!
Or waiting for mobus or motus or whatever it's called to show its hand?

More seriously, I think you can sign up to receive notifications. Pretty sure I did that anyway, but nothing has come.  

Maybe, but what's curious is Coast was well ahead of Meridian Bank in their re-incorporation bid (started 4-5 years ago in initial internal planning). Meridian took a number of years for their application, too.

I will have more to note on Motive Financial's deposit figures in a forthcoming review of their balance sheet data versus other so-called "digital banking disruptors."

Cheers,
Doug

No, SG, that's another problem actually: Interac e-Transfers are still at the arguably high $1.50 per transfer fee. They also don't provide free cheque orders on the free chequing account. I've suggested they either offer one (1) free cheque order every year or two, at a minimum, or make Interac e-Transfers free and unlimited (customer demand seems to favour the latter as cheques are declining in usage rapidly and there are great non-bank suppliers of discount cheques including ASAP Cheques, DiscountCheques.com, and ChequesPlus). HSBC Bank Canada also took away bank-to-bank transfers a couple years ago, but at least they have free and unlimited Interac e-Transfers, not to mention free cheque orders.

Innovation Credit Union is the only is the Saskatchewan credit union that will take out of province residents, whereas Conexus and Cornerstone credit unions either require Saskatchewan residency or finalization in a branch, unfortunately. Last I checked, Innovation does have free and unlimited Interac e-Transfers whereas Conexus and Cornerstone revoked that (or added a monthly fee of approximately $5.00 to get that add-on feature). Innovation Credit Union is slightly behind Coast in terms of their federal reincorporation - it's currently before the Minister of Finance and Superintendent of the Office of Superintendent of Financial Institutions, but once approved, assuming their timeline is similar to Coast, they should be about 6-9 months from federal continuation.

As to the first point, I don't think that's delayed it. Despite customers' claims to the contrary (they're trying to get reimbursed, of which Coast legally has no obligation to do so but is doing so on a goodwill basis and on a case-by-case basis), this was just another well-organized phishing scheme that suckered Coast members into providing their banking details on a phony, albeit apparently good, Coast branded website. This happens to all FIs.

Cheers,
Doug

Briguy said
Innovation Credit Union looks interesting for diversification purposes since it's in Saskatchewan rather than Manitoba. However the HISA interest rate is only 1.05% and 3yr GIC rate for example is only 2.8% vs 3.3% for Hubert.  

I wouldn't really call that "diversification" based on who the deposit insurer is. Ultimately, if a provincial government couldn't guarantee provincial deposits, who is on the hook? The federal government, which would be under tremendous pressure to "make people whole." The Bank of Canada may even step in, if need be. 🙂

That said, Innovation will probably have juicy temporary GIC rates, so could be good for that. Otherwise, they're really just an alternative for a free chequing account / "hub".

Cheers,
Doug

They are.......they have CDIC decals on their entrance doors.

Rick said Yeah...I have a CC chequing account as a buffer between the online world and my money, I did take advantage of their 4% 33 month GIC, and I would even consider using them again for my main FI if they had decent rates (I CAN be bought), but as of now, they are still on my list as arrogant and rigid with no real customer appreciation. Good luck.

Yeah, I completely agree with you, Rick. I, too, can be bought with higher rates, but Coast seems to living on their own coattails of having been the first B&M financial institution to offer a free chequing account. Well, that doesn't cut it. Nor does their ho hum Desjardins credit card offerings, sub-par deposit rates, and general slow pace of innovation. I also am tiring of their "community contributions" as the expense of not paying a dividend or at the very least, a patronage allocation! However, as was seen recently, Coast has been offering higher deposit broker rates. It may well be faster and cheaper to raise deposits by deposit brokers, but at the expense of the cross-sell potential. If they're going to offer higher rates in the deposit broker channel, then I have no need for a branch-based chequing account at a branch with no safe deposit boxes (Kelowna branch). I can get that, minus the branch, from Alterna Bank or Motive Financial. Heck, I'm sure I could get a safe deposit box at Canadian Western Bank and have them code in my Motive chequing account as the debit account. 😉

GICinvestor said

Seems they are going about it backwards.

Nailed it!!! As that is their normal direction.

Yep, Rick sure did. Agree with you there 100%!

Are they going federal to offer online only to provinces?

That's what I thought as well, but reading the tenor of their 2018 annual report and after listening to the presentations and Q&A at the Members' Open Forum following their 2019 AGM last month, I'm wondering if they intend to establish a a single branch (or two) in each province before they launch federally.

If they are still considering a digital only strategy, then I'd suggest that I don't see that happening until next year at the earliest because they've got no sign for making Interac e-Transfers free & unlimited, adding an initial free chequebook, or adding Me-to-Me Transfers (or some other variant of bank-to-bank, self-to-self transfers). If they try and launch digitally without at least two of those, they will be universally panned by the general public writ large. 😉

Are they looking for actual presence in other provinces?
Ie. In a grocery store or do some acquisitions of some smaller CU’s

I think they might be - see my comments in response to your previous question immediately above. To add to that, I don't think they'd consider a grocery store banking pavilion or kiosk model. Instead, I see them potentially launching province-by-province, one or two provinces per year, each with one (possibly two) organically built branches in a major population centre of each province. When they've established that single branch (or two branches), they'll expand with further branches where they're seeing growth in book of business and which regions are economically "booming," but they'll also "open up" digitally in that province.

They might be trying to grow by amalgamation with provincially-regulated credit unions that would like to expand in all areas of their business (i.e., lending, auto finance, leasing, deposits, etc.) outside their provincial borders but don't want the expense and hassle of continuing federally or incorporating a federal bank subsidiary. If they are considering this approach, again, I go back to my comments about lacking digital-first infrastructure. 🙁

Are they going to pick up more customers with their cutesy and very very subliminal commercials?

I doubt if they would be even close to being competitive with the Manitoba and Oaken etc. rates and fees.

Agreed.

I just can’t see them changing their culture of arrogance. 

Yep, well put as well.

Cheers,
Doug

Coast Capital ran a quarter page colour ad in the Toronto Star today letting us know they are "growing" and have appointed a few new senior managers. It mostly seemed to have to do with commercial banking. Some of them are to be based in Toronto.
There was no mention of personal banking, but the ad ran in the first section of the paper on a Saturday, suggesting they wanted us all to know about these changes.