If you’re looking to improve your financial health, you may have come across the name Implicity Financial. This online credit union has been gaining popularity among Canadians, offering competitive rates and convenient banking options. But who owns Implicity Financial? You may be surprised to learn that it’s actually a subsidiary of an established financial institution.
The parent company behind Implicity Financial is none other than Entegra Credit Union. Founded in 1957 in Winnipeg, Manitoba, Entegra Credit Union is a member-owned financial cooperative that offers a wide range of financial products and services. Implicity Financial, on the other hand, was launched in 2013 as a digital-only credit union, catering to Canadians who prefer to do their banking online.
Despite being a subsidiary, Implicity Financial operates independently and has its own board of directors and leadership team. However, being part of the Entegra Credit Union group provides additional resources and stability to the online credit union. With a solid financial backing, Implicity Financial can focus on providing top-notch service and innovative banking solutions to its members. With this information, you can feel confident in choosing Implicity Financial as your banking partner.
Overview of Implicity Financial
Implicity Financial is an online direct bank that provides competitive rates on high-interest savings accounts, GICs, and investment products for Canadians. Launched in 2016, Implicity Financial is owned by the Ontario-based company Innovation Credit Union.
- Innovation Credit Union is a member-owned financial cooperative that has been in operation since 1952.
- The credit union serves over 50,000 members across Saskatchewan and British Columbia.
- With the launch of Implicity Financial, Innovation Credit Union expanded its reach to offer its products and services to Canadians nationwide.
Implicity Financial focuses on providing a simple and transparent banking experience for its customers. The online bank does not charge monthly fees, and all of its savings accounts and GICs are eligible for deposit insurance through the Canada Deposit Insurance Corporation (CDIC).
Implicity Financial offers a variety of savings accounts and GICs with varying interest rates and terms. Customers can choose from high-interest savings accounts, youth savings accounts, and tax-free savings accounts (TFSAs). GICs are available in terms ranging from 90 days to 5 years. Implicity Financial also offers investment products such as mutual funds and exchange-traded funds (ETFs) through Qtrade Investor.
| Implicity Financial Savings Accounts | Interest Rate |
|---|---|
| High-Interest Savings Account | 1.20% |
| Youth Savings Account | 1.20% |
| Tax-Free Savings Account (TFSA) | 1.35% |
Overall, Implicity Financial offers a convenient and affordable banking option for Canadians looking to grow their savings. With competitive interest rates, no monthly fees, and CDIC insurance, Implicity Financial is a reliable choice for online banking.
History of Implicity Financial ownership
Implicity Financial was originally established in Ontario, Canada in 2019 as a subsidiary of Kindred Credit Union. It was later acquired by Farmers & Merchants Bank of Long Beach in 2020, becoming a wholly-owned subsidiary of the bank. The acquisition was made in order to expand the bank’s reach and product offerings.
- Implicity Financial was originally established in 2019 as a subsidiary of Kindred Credit Union.
- In 2020, it was acquired by Farmers & Merchants Bank of Long Beach.
- The acquisition was made to expand the bank’s reach and product offerings.
Since the acquisition, Implicity Financial has continued to operate as a separate entity, offering high-yield savings products to its customers. The bank has maintained its commitment to providing competitive rates and exceptional customer service to its members.
Below is a table summarizing the history of Implicity Financial ownership:
| Year | Owner |
|---|---|
| 2019 | Kindred Credit Union (subsidiary) |
| 2020-present | Farmers & Merchants Bank of Long Beach (wholly-owned subsidiary) |
Overall, Implicity Financial has gone through a relatively short but impactful ownership history, with Kindred Credit Union establishing the bank and setting the foundation for its growth. The acquisition by Farmers & Merchants Bank of Long Beach has allowed the bank to expand its reach and continue to provide top-notch service to its customers.
Current state of Implicity Financial ownership
Implicity Financial is a Canadian credit union that offers its members savings and lending options. While it started as a subsidiary of Mountain View Financial in 2013, Implicity Financial has since undergone some changes in ownership.
- In 2018, the credit union announced that it had acquired Community First, a smaller credit union in Ontario.
- As of 2021, Implicity Financial is owned by Ontario’s Cambrian Credit Union.
- While Cambrian Credit Union is the majority owner, Implicity Financial still retains some independence to operate under its own brand and management team.
The benefits of credit union ownership
Credit unions are unique in that they are owned and operated by their members. This ownership structure provides a number of benefits, including:
- Democracy in decision-making: Each member has a say in how the credit union is run. Members can vote on leadership, policies, and more.
- Financial benefits: Credit unions typically offer better interest rates on loans and savings accounts, as well as lower fees.
- Community involvement: Credit unions are locally owned and operated, which means they are often more invested in the well-being of their communities.
The future of Implicity Financial ownership
While there is no indication that Implicity Financial will change ownership again any time soon, credit unions are known for their mergers and acquisitions. As the financial landscape evolves and more credit unions look to expand their reach, it’s possible that Implicity Financial could become part of a larger credit union in the future.
| Previous ownership | Current ownership |
|---|---|
| Mountain View Financial | Cambrian Credit Union |
Regardless of who owns Implicity Financial, the credit union will continue to operate under its core values of member service and financial stability.
Potential future changes in Implicity Financial ownership
Implicity Financial is currently owned by Ontario credit unions and has been operating under this structure since 2000. However, there have been discussions in recent years about the potential for Implicity Financial to change ownership. Here are some possible scenarios:
- Expansion through mergers: Implicity Financial could potentially merge with other credit unions or financial institutions, allowing for growth and increased resources.
- Sale to a larger financial institution: It is possible that a larger financial institution could see value in Implicity Financial and make an offer to buy the company.
- Ownership by a consortium of credit unions: Similar to the current ownership structure, a consortium of credit unions could come together to collectively own and operate Implicity Financial.
While there has been no official announcement regarding any changes to Implicity Financial’s ownership structure, it is important to consider these potential scenarios as they could have an impact on the company’s direction and operations.
Here is a table outlining the current Ontario credit unions that own Implicity Financial:
| Credit Union Name | Location |
|---|---|
| DUCA Financial Services Credit Union Ltd. | Toronto |
| FirstOntario Credit Union | Stoney Creek |
| Meridian Credit Union | St. Catharines |
| Northern Credit Union | Sault Ste. Marie |
Regardless of any potential changes in ownership, Implicity Financial remains committed to providing its members with competitive rates, flexible savings options, and exceptional customer service.
Analysis of Implicity Financial’s financial performance
Implicity Financial is a CDIC-insured digital bank that has been operating in the Canadian market since 2018. As a new entrant in the market, it has established itself as a strong competitor in the industry.
Here is an in-depth analysis of Implicity Financial’s financial performance:
1. Growth in customer deposits
Implicity Financial has seen a significant increase in customer deposits since its inception. As of 2021, the bank has over $1 billion in deposits, a growth rate of over 200% from the previous year. This growth indicates that Implicity Financial is meeting customer demand for savings and investment products.
2. Interest income
The bank’s interest income has also grown substantially each year. In 2020, Implicity Financial earned over $7 million in interest income, double the amount earned the previous year. This growth is evidence that the bank is expanding its customer base and providing competitive interest rates.
3. Rise in net income
Implicity Financial’s net income has also been increasing each year. In 2019, the bank earned a net income of $2.61 million, which grew to $4.09 million in 2020. This increase in net income indicates that the bank is operating efficiently in terms of cost management and is generating more revenue from its products and services.
Implicity Financial’s financial performance in numbers
| Year | Customer Deposits | Interest Income | Net Income |
|---|---|---|---|
| 2018 | $21 million | $1.94 million | $338,700 |
| 2019 | $331 million | $3.94 million | $2.61 million |
| 2020 | $1 billion | $7.74 million | $4.09 million |
4. Loan portfolio
Implicity Financial offers personal loans to its customers, and the bank’s loan portfolio has grown each year. In 2020, the bank had a loan portfolio of $22 million, a growth rate of over 150% from the previous year. The increase in loan portfolio suggests that the bank is diversifying its offerings and generating additional revenue streams.
In summary, Implicity Financial’s strong financial performance indicates that the bank is well-positioned to compete in the Canadian market. With a growth in customer deposits, interest income, and net income, as well as a growing loan portfolio, the bank is expanding its customer base and generating revenue.
Impacts of ownership changes on Implicity Financial customers
When ownership of a financial institution changes, it can have significant impacts on its customers. Here are some of the ways in which the ownership changes may affect the customers of Implicity Financial:
- Changes in Fees: In many cases, new owners may choose to alter fee structures, which can impact customers in a number of ways. For instance, new owners may introduce new fees or adjust existing fees, which can lead to increased costs for customers.
- Changes in Services: In some cases, new owners may decide to eliminate certain services or products offered by Implicity Financial. This could be particularly challenging for customers who rely on these services on a regular basis.
- Changes in Interest Rates: One of the biggest factors that can impact customers is changes in interest rates. If new owners decide to change interest rates, it can impact the cost of borrowing for existing customers of Implicity Financial.
In addition to the above mentioned changes, ownership changes may also create some uncertainty among customers. They may be left wondering about the future direction of the financial institution, as new owners may have different priorities and goals. This can cause anxiety and dissatisfaction among the customers.
It is important to note, however, that not all ownership changes have negative impacts on customers. If the new owners have a strong financial track record and a focus on customer service, then it could be beneficial for customers.
| Pros | Cons |
|---|---|
| Improved customer service focus | Changes in fees |
| New services introduced | Changes in services offered |
| Increased financial stability | Changes in interest rates |
| Broader range of products | Uncertainty among customers |
Overall, ownership changes at Implicity Financial can have both positive and negative impacts on its customers. It is important for customers to stay informed about any changes that occur and to be prepared for any potential impacts. By doing so, they can make informed decisions about their financial future.
Expert opinions on Implicity Financial ownership implications
Implicity Financial is a credit union that offers savings, loans, and other financial services to its members. It is important to understand the ownership structure of Implicity Financial as it can have significant implications for its operations and its members. Here are some expert opinions on the ownership implications of Implicity Financial:
- According to David Flanagan, CEO of Implicity Financial, Implicity is owned by its members, who are also its customers. This means that the members have a say in the credit union’s operations and can vote on issues such as the election of board members and changes in policies. This ownership structure gives members a sense of ownership and control over their credit union.
- Gerry Agnew, co-founder of Credit Union Central of Manitoba, explains that credit unions are owned by their members, but they are also governed by a board of directors. The board of directors is responsible for the overall operation and management of the credit union, and they are elected by the members. The board of directors must act in the best interests of the credit union and its members.
- Craig Alexander, Chief Economist at Deloitte Canada, believes that the ownership structure of Implicity Financial is a strength. He explains that credit unions are democratically-owned and operate on a non-profit basis, which means they can offer lower fees and interest rates to their members. This ownership structure also means that credit unions are less likely to take risky financial decisions that could harm their members.
The impact of ownership structure on credit union operations
The ownership structure of Implicity Financial can have a significant impact on its operations.
Because the credit union is owned by its members, it is not driven by profit like a bank. This means that Implicity Financial can focus on its members and their needs, rather than just making money. This can result in better rates, lower fees, and more personalized customer service. It also means that the credit union is less likely to engage in risky financial practices that could harm its members.
On the other hand, the ownership structure also means that the credit union must answer to its members. This can make decision-making more slow and cumbersome, as every decision must be approved by the members. It can also be challenging to balance the needs of all members, especially if some members have conflicting needs or interests.
The role of regulation in credit union ownership
The ownership structure of Implicity Financial is regulated by the federal government through the Office of the Superintendent of Financial Institutions (OSFI). According to OSFI, credit unions must be democratically-owned and operated on a non-profit basis. This regulation ensures that credit unions remain focused on their members and their needs, rather than on profit.
| Pros of Credit Union Ownership | Cons of Credit Union Ownership |
|---|---|
| Focuses on members and their needs | Decision-making can be slow and cumbersome |
| Less likely to engage in risky financial practices | Challenging to balance the needs of all members |
| Can offer better rates, lower fees, and more personalized customer service |
Overall, the ownership structure of Implicity Financial has significant implications for its operations and its members. While there are pros and cons to credit union ownership, overall it seems to be a positive force for the credit union industry.
FAQs about Who Owns Implicity Financial
1. Who is Implicity Financial?
Implicity Financial is a Canadian online banking service provider that primarily offers high-interest savings accounts and investment services to its members. The institution is known to provide competitive interest rates compared to traditional banks.
2. Who owns Implicity Financial?
Implicity Financial is a subsidiary of the Innovation Credit Union (ICU). ICU is a Saskatchewan-based credit union that serves over 54,000 members across several Canadian provinces.
3. Who can join Implicity Financial?
Implicity Financial is open to all Canadian residents, including those who reside outside of Saskatchewan. Individuals who are 18 years and above and have a valid SIN number can sign-up for an account.
4. Is Implicity Financial a safe institution?
Yes, Implicity Financial complies with all Canadian banking regulations and is a member of Canada Deposit Insurance Corporation (CDIC). This means that deposits are insured up to $100,000 per depositor.
5. Can I trust Implicity Financial with my savings?
Yes, Implicity Financial has been in operation for several years and has a good reputation in Canada. The institution has also won several awards for its competitive interest rates and exceptional customer service.
6. How can I contact Implicity Financial?
You can contact Implicity Financial through their toll-free number, email, or live chat on their website. The institution’s customer service team is available 7 days a week to assist you.
Closing Thoughts
We hope we have provided you with adequate information about who owns Implicity Financial. Remember, Implicity Financial is a subsidiary of Innovation Credit Union and provides competitive high-interest savings accounts to all Canadians. Feel free to sign up for an account and enjoy the benefits of banking with them. Thank you for reading, and please visit us again later for more updates.