Motusbank | motusbank | Discussion forum

Thanks, Ed.

"9. What is the functional and operational relationship between Meridian and motusbank?
Meridian is the parent company to motusbank. The bank will be a separate legal entity operating independently and will have its own unique member base and banking system.

motusbank and Meridian will deliver similar functionality, products and services across their digital platforms and product pricing will generally be aligned." (my emphasis)

What does "aligned" mean? If they meant "the same", surely they would have said so. the lack of bricks and mortar to maintain should mean better rates than Meridian, but will it? It would be hard not to do better than most of the current rates at Meridian.
It's not a very good choice of name IMO, as it sounds too much like Motive, but I'm sure I'll get used to it. I would have preferred Modus if they had to go that way.
I also think their decision to call all clients "members" is confusing since Modusbank users will not have voting rights with Meridian.
Initial marketing strategy is going to be mortgages, so it's clear their priority is a younger audience, not seniors. Not surprising, but not encouraging either.

On the positive, it will give us another 100K in insurance coverage, through CDIC, in addition to the coverage at MeridianCU through DICO.

I think we will have some special introductory rates for the first 6 months or so, when they launch. Just as Simplii had, when they launched. And also EQ bank

Time to drain money from Simplii and Tangerine for 6 months, when Motusbank launches.

Are we, "rfdm4g4g9", a representative of Motusbank or Meridian authorized to make such statements?

9. says it all. Some hype for a few months and then back to ho hum Meridian rates?

Because he/she appears to be speaking as a representative of Meridian. Perhaps I have misunderstood? Or he/she is assuming too much. Please re-read his/her notes. I did not intend to offend but wanted to clarify where he/she was coming from.

Just because he used the word we... All this paranoia is happening? Take the Tin foil hat off....

We can mean all of us on here too... Not necessarily the bank

SG said
Just because he used the word we... All this paranoia is happening? Take the Tin foil hat off....

We can mean all of us on here too... Not necessarily the bank  

No paranoia here, just looking for clarity of an obviously poor worded entry that should be answered by rfdm...... and not an over sensitive self appointed group representing rfdm......

My final words on Motus bank. They won’t make a difference or be a leader. According to their rates here, they are the bottom of the barrel. Some VP had a flash that said let’s get online to expand our business and we sell service but not be competitive rate wise. And the VP likely said we, Motus, don’t want to lose our core customers as they will be disappointed to see we offer higher rates online.

savemoresaveoften said
So Motus will be insured under CDIC for $100k and separate from Meridian CU which is $250k insured ?  

Correct. They're separate entities, and Motus Bank will have to hold separate capital as regulated by OSFI, which is part of the reason why I'm puzzled Meridian went this route rather than reincorporating as a federal credit union. This route likely adds some significant costs versus the other option. I realize they probably want to maintain the $250,000 per depositor DICO deposit insurance, but Coast estimated less than 4% of its customers held more than $100,000 per unique depositor and account type (RRSP, non-registered, etc.), so I think they could've converted with an immaterial loss in business.

Cheers,
Doug

savemoresaveoften said

Any idea what happened to those Coast customer who has over $100k and in fixed term deposit (GIC) when they changed from CU to bank ? Would they now have uninsured deposit for the amount above $100k ?  

From CC Statement of transitional coverage"

"During the transition period, CDIC deposit insurance coverage for pre-existing eligible deposits will be the same provided prior to continuance to members of Coast Capital Savings by the Credit Union Deposit Insurance Corporation of British Columbia. For greater certainty, deposits in foreign currency are not covered by CDIC during the transition period

Any eligible pre-existing demand deposit, less any withdrawals made during the transition period, will have this coverage until April 30, 2019. Any eligible pre-existing term deposits, will have this coverage until it's date of maturity or cashing out."

Link to PDF:
https://www.coastcapitalsavings.com/media/1656/cdictransition.pdf

Vatox said
Motusbank only gets a lowercase “m” in the Discussion forum?  

Correct. That's how THEY spell their name.