Loblaw makes a return to everyday banking

Stewart Samuel
Program Director - Canada
@RetailAnalysis

Date : 14 September 2020

Loblaw’s PC Financial division has launched a new banking account, three years after it closed its daily chequing, savings and lending banking services.

Digital-first banking service

The PC Money Account forms a central element of the retailer’s payments and rewards strategic pillar. It offers consumers a simple, no-fee bank account, combined with Loblaw’s PC Optimum loyalty programme. It has been developed as a digital-first banking service. With three million customers, PC Financial has an active base to tap into, adding an everyday banking option to its existing Mastercard credit products.

Source: Loblaw

Integration with PC Optimum

Customers will be able to earn 10 PC Optimum points on every dollar spent at any retail outlet, rising to 25 points spent within the retailer’s drugstore business, Shoppers Drug Mart. Points will also be awarded for linking to an external banking account, setting up a direct deposit and making online bill payments.

Payments and rewards strategic pillar

Loblaw’s strategic framework is focused on preparing the business for the future of retailing against a backdrop of shifting consumer behaviour. It is aligned with the company purpose, ‘Live Life Well’. This is designed to build on the strong foundation which the business has established through its market-leading private label ranges, investment in technology and its PC Optimum loyalty programme. The COVID-19 pandemic has validated the future focus of the business, including driving the growth of digital retail, building a connected healthcare network and developing new payments and rewards programmes. The launch of the PC Money Account is a major step forward for the latter element of this plan, which also encompasses building an ecosystem which beyond its core retail business.

Retail Analysis subscribers: read our new report this month, Strategic outlook for Loblaw 2020-2022, to see how this new initiative fits into strategy for the next three years.

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