In a significant shift in Canada's digital banking landscape, motusbank has announced plans to wind down operations over the coming year. This digital bank, owned by Meridian Credit Union, launched in 2019 as a federal bank and reportedly served approximately 16,000 clients at its peak—a modest figure compared to competitors like Simplii (CIBC) and Tangerine (Scotiabank), which each serve around 2 million customers.
What's Happening to Motusbank?
According to official communications, Meridian Credit Union, motusbank's parent company, has decided to "sharpen its focus on growing as a Member-owned organization and Ontario's largest credit union." As a result, motusbank accounts will transition to either Meridian Credit Union or Coast Capital Savings Federal Credit Union in the coming months, pending regulatory approval.
Here's how the transition will unfold:
- Ontario Lending Products: Most mortgages, lines of credit, and home equity lines of credit for Ontario residents will move to Meridian, effective May 1, 2025.
- All Deposit Accounts and Remaining Lending Products: These will transition to Coast Capital Savings Federal Credit Union, including lending accounts held outside Ontario.
- Some Accounts: A small number of products will not transition to either institution. These accountholders will be contacted directly and supported to move their assets to a financial institution of their choice.
The good news is that customers' funds remain secure throughout this process. Motusbank deposits continue to be eligible for Canada Deposit Insurance Corporation (CDIC) protection.
What This Means for Motusbank Customers
If you're a motusbank customer, you don't need to panic. The transition is being structured to provide "uninterrupted service," and most accounts will automatically transfer to either Meridian or Coast Capital.
For accounts moving to Meridian, customers can expect to receive detailed information by mail in late March. The bank assures that customers will "be banking with the same company, using the same digital technology," while gaining "increased access to a diversity of financial products and services."
For accounts transitioning to Coast Capital, customers will be notified via email once regulatory approval is confirmed, with limited action required on their part.
Finding a New Digital Banking Home
If you're a motusbank customer considering other options, or simply curious about the broader digital banking landscape in Canada, now is an excellent time to explore alternatives. The Canadian digital banking sector offers several established and emerging options worth considering.
Top Digital Banking Alternatives in Canada
Based on information from neobanque.ch/canada/, here are some leading digital banking options to consider:
- Tangerine (Scotiabank): One of Canada's most established digital banks with approximately 2 million customers, offering competitive savings rates, no-fee chequing, and a comprehensive suite of banking products.
- Simplii Financial (CIBC): With around 2 million customers, Simplii offers no-fee daily banking, mortgages, investments, and competitive interest rates.
- EQ Bank: Known for consistently high interest rates on savings accounts and GICs, with no monthly fees or minimum balances.
- Koho: A fintech company offering spending and savings accounts with cash-back options and no monthly fees.
- Neo Financial: Offers high-interest savings accounts, cash-back credit cards, and innovative financial products.
How to Choose Your Next Digital Bank
When selecting a new digital banking partner, consider these factors:
- Account fees: Look for options with no or low monthly fees
- Interest rates: Compare savings rates across institutions
- Product range: Ensure they offer the accounts and services you need
- Mobile experience: Check app ratings and features
- ATM access: Understand how you'll access cash when needed
- Customer service: Research their support options and reputation
- Security features: Verify they offer robust protection for your accounts
Final Thoughts
While the closure of motusbank represents a consolidation in Canada's digital banking space, it also highlights the competitive nature of this growing sector. The good news for consumers is that the digital banking landscape in Canada remains robust, with numerous alternatives offering competitive rates, innovative features, and customer-friendly policies.
Whether you're a current motusbank customer looking for a new banking home or someone interested in exploring digital banking options, Canada's fintech ecosystem continues to provide increasingly sophisticated and accessible financial services.
For motusbank customers with specific questions about their accounts, the bank recommends contacting their Member Service Team at 1 (855) 219-1437, Monday to Friday from 8:00 a.m. to 8:00 p.m., or on Saturday from 8:00 a.m. to 4:00 p.m.
Stay informed about the latest developments in digital banking by regularly checking resources like neobanque.ch, which tracks neobank and fintech developments in Canada and beyond.