April 6, 2013
Ok, so I'm still puzzled by Simplii's business model.
"Instead, they can randomly select about 1/5 of the "high value" clients and give them an extra 1¼%." I think the result is that the other 4/5 "high value clients" will take their money and walk.
I think that is the idea: For the other clients to take their money elsewhere for the time being.
I see the 2% offer as a marketing exercise and not a business model. Another option to spending the marketing budget on billboard, TV, radio, or Internet banner ads.
Simplii is CIBC, one of the Big Banks forced to not increase dividends and to not buy back any of its own shares, by the regulators. CIBC has lots of extra cash from profits as a result. So, CIBC doesn't really need more cash from deposits.
October 27, 2013
You do realize it is most likely just as Norman1 suggests, i.e. a marketing exercise that (like Tangerine) is using y'all as the product in a multi-client study to determine who bites and why, and who walks and why. I imagine they are building a database they will use in a report to management called 'Study in Human Behaviour' so they will know how to compete (if they wish) as a fintech when Open Banking arrives. They probably don't really care much who they irritate and who walks. Each customer is a statistic....a data point.
The truth of the matter is that neither Simplii (CIBC) nor Tangerine (BNS) really need any of these deposits (debt) to fund their loan and mortgage book. There is a ton of cheap debt out there they can tap into. So, as a few of the posts suggest, those of you lucky enough to get the offer take the offer because it has value to them and it doesn't matter to them if the rest of you are left swinging in the wind. We are in it for ourselves.
December 26, 2018