STRATEGIC PARTNERS
March 5, 2002
MONTREAL -- The Canadian Imperial Bank of Commerce ("CIBC") added U.S.-based Safeway Inc. to its E-banking network yesterday, less than a week after selling its Montreal-based insurance businesses for $330 million, according to the Montreal Gazette. Safeway is one of North America's largest food chains.
CIBC said it is forming a strategic alliance with Safeway to expand grocery-based E-banking in the United States - an area of growing importance for the bank. This allows CIBC to increase its strength in the U.S., while using its electronic-banking platform, including ATMs, to acquire customers rapidly.
A la E*TRADE Bank who plans for customers to obtain online financial services while visiting Target stores, CIBC will offer ATMs, telephone call centers and in-store pavilions to be known as Safeway Select Bank through Safeway in California and Colorado.
CIBC already offers banking through Marketplace Bank in the southeastern U.S. Winn-Dixie grocery chain, and in Canada through President's Choice Financial at Loblaw Cos. Ltd.
With 322,000 customers signed up, CIBC said they are now gaining approximately 16,000 a month. The company's alliance with Safeway gives it access to about 20 million potential customers in California and Colorado, where the grocer is the dominant player.
