First Financial's announcement of bank status lays the groundwork for the introduction of another broker lender.
Founder and Chief Commercial Officer Karl Straky says the Canadian First announcement means the lender will play an even greater role in the mortgage channel.
"Our bank envisions becoming a major player in the mortgage banking space over the next few years." says Straky. "We will differentiate ourselves by also offering our mortgage broker partners the ability to provide additional retail banking products to their clients and thereby expand their value proposition and deepen their existing customer relationships. They will also have the opportunity to own their own local Canadian First Financial Centre and build a different, more valuable and sustainable business compared to their mortgage business alone."
Canadian First Financial's Chairman of the Board Peter Wallace today announced that it had been issued bank status to incorporate as a Schedule 1 bank, with the goal of commencing full bank operations later this year.
"We're pleased to announce that the Minister of Finance has issued letters patent to incorporate a Schedule I bank under the Bank Act as an indirect wholly owned subsidiary of Canadian First," Wallace said in an embargoed release issued to MortgageBrokerNews.ca Thursday.
President and CEO Peter Vukanovich said that bank status will provide customers with more options and better service.
Straky adds that Canadian First will provide one-stop shopping convenience through its locally-owned financial centres providing customers with banking services, mortgages, wealth management and insurance products.
Straky started the company as a way of bolstering the utility of mortgage professionals, helping deepen relationships with clients to better compete with banks and insurance companies. His strategy for First Canadian Financial was to provide a one-stop-shop model so each retail broker-partner could have a dedicated insurance/financial planner.
One of the more popular innovations by Straky was the Referral Partner program, put into place in 2011.
Straky said the Referral Partner program offered smaller retail brokerages the same opportunity to increase their usefulness to clients through the provision of other complementary services, but was sensitive to the fact they didn't produce the kind of funded volume needed for a dedicated in-house insurance and financial advisor. The Referral Program allowed them access to financial and insurance advisors acting as mobile specialists.
Congratulations Karl, I know you have worked very hard at this over the past 5 years and it has paid off.
This was the culmination of YEARS of WORK and PLANNING...no easy feat with only 25 Charter 1 bank licenses being issued in the history of the country! CFFC has also refined the referral process for financial wellness products and insurance. Canadian First is leading a new paradigm in the mortgage channel with refined products like their Creditor Life Plus product from MPP and now the ability to offer true banking products...Not only that but take a look at the team they have assembled with names like Peter Vukanovich, Peter Wallace,Nick Mancini and Peter Majthenyi just to name just a few of the players involved...way to go guys!
Yes....Congratulations are indeed in order.....I wish Canadian First the best of luck in this very long road ahead.