CIBC, a top Canadian lender, is examining blockchain and peer-to-peer lending platforms as financial technology companies push to reshape the banking industry. Victor Dodig, who heads CIBC, told the E
CIBC, a top Canadian lender, is examining blockchain and peer-to-peer lending platforms as financial technology companies push to reshape the banking industry. Victor Dodig, who heads CIBC, told the Empire Club of Canada on Tuesday that the bank is working through how to incorporate these innovations. "We can play in the space," he said, dismissing concern about emerging competitors. "Will clients move in droves to these new technology platforms to do their lending? I don't think so. It won't happen that quickly."
Rather than adopt a defensive posture toward technology-driven challengers, Dodig said CIBC plans to advance alongside innovation. The bank wants to "embrace and deepen collaboration and strategic partnerships with outside innovators, and work with new tech partners and networks," he explained. "We intend to be there with our clients as they adopt new technologies and look for secure, easier and more flexible ways to look after their day-to-day banking needs."
The banking industry has not determined whether blockchain will reshape how financial institutions operate. Still, Dodig stressed that established banks cannot afford to overlook the technology or skip understanding how it functions and what security protections it offers.
On Tuesday, CIBC joined Suretap, a smartphone wallet application that lets Android and BlackBerry users store multiple payment cards and make purchases at contactless terminals. CIBC became the first major Canadian bank to back the platform. Bank customers can load their Visa or MasterCard onto their phone and complete contactless transactions up to CA$100.
Rogers Communications built Suretap, which now has backing from Canada's major wireless operators: Bell, Rogers, Telus, Koodo, and Virgin. Apple, meanwhile, said Apple Pay would reach 1 million retail locations by July, with a Canadian launch planned for November, per Bloomberg. Eight large British banks have signed on to Apple Pay, including Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.
Dodig sketched out his view of the next year and a half. "In 18 months time, I think all the relevant participants that have relevant technology that are either in the Android space, in the BlackBerry space, in the Apple space, will play a role in the financial ecosystem," he said. "In the end, there'll be more than just Apple Pay, there'll be others with their own payment mechanisms. And there'll be competition there, too."
Dodig declined to discuss CIBC's ongoing talks with Apple or Google.
