EQ Bank-PC Financial merger takes shape: Here’s what consumers can expect

When EQB – the parent company of EQ Bank – announced plans last year to acquire PC Financial from Loblaw, many people were left wondering what would happen to their PC Optimum points.

PC Optimum is one of Canada’s biggest loyalty programs, with more than 18 million active members earning points at Loblaws grocery stores, Shoppers Drug Mart, and Esso gas stations. So, the stakes are high. Now that the deal has officially closed, we’re beginning to see how the merger is taking shape and what it means for consumers.

EQ Bank is a digital‑only financial institution that launched in 2016 and built its reputation offering some of the most competitive interest rates in the country. Although rates have since fallen in line with the Bank of Canada’s overnight rate – and the bank now requires direct deposit to unlock its highest rates – EQ Bank still consistently offers better interest rates on savings accounts and guaranteed investment certificates than traditional banks.

EQB became the exclusive financial partner for PC Optimum in July when the deal closed. Early indications suggest that loyalty members’ points are safe. And while fears of a future devaluation are understandable, nothing so far suggests that’s on the horizon.

The first sign of how EQ Bank plans to leverage PC Financial came through a recent promotion. Account holders were offered 150,000 PC Optimum points – a $150 value – for signing up for a PC Financial credit card and spending just $150 at Loblaw Cos. Ltd.’s banner stores such as Loblaws, No Frills, and Real Canadian Superstore. The spending requirement was far lower than what other credit cards demand for a comparable bonus.

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Existing PC Financial cardholders weren’t left out either. EQ Bank credited them with 10,000 PC Optimum points – a $10 value. These early offers were a straightforward way to demonstrate the benefits of the merger.

However, for the bank to impress PC Financial cardholders or to encourage them to sign up for an EQ Bank account, they may need to do more.

While it’s impossible to know what EQ Bank will do next, it’s reasonable to predict – or hope for – certain enhancements based on what the bank already does well and what its competitors have introduced.

One opportunity lies in foreign transaction fees. Most credit cards charge 2.5 per cent on purchases made in foreign currencies. EQ Bank already waives this fee for its own cardholders, so adding this perk as a benefit to PC Financial cardholders would reinforce its challenger‑bank positioning.

Another potential improvement involves annual fees. The PC Insiders card – PC Financial’s top‑tier product – carries a $120 annual fee, waived only in the first year. EQ Bank could consider rebating that fee annually for customers who maintain a minimum balance in an EQ Bank account, a strategy used by several major banks and Wealthsimple.

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There’s also room to innovate in the mortgage space. EQ Bank offers residential mortgages, which opens the door to awarding PC Optimum points to homebuyers who choose EQ Bank as their lender.

This may sound ambitious, but these offers aren’t uncommon. RBC recently offered first‑time homebuyers up to 65,000 RBC Avion points for securing an eligible mortgage and many lenders have cashback incentives when choosing them.

Whether these ideas come to life remains uncertain. EQ Bank is a digital bank, and despite its parent company dating back to 1970, some people still hesitate to sign up for an online‑only financial institution. Pairing EQ Bank with the trust already built through PC Optimum and PC Financial could give consumers the confidence they need to finally try it.

That trust could be reinforced with a more immediate, practical move by refreshing the PC Financial kiosks found in many Loblaws stores. Right now, they function mostly as ATM hubs and are occasionally staffed by representatives who aggressively push credit card sign‑ups – sometimes even approaching shoppers in the aisles.

If EQ Bank rebranded these pavilions and shifted the focus toward educating customers about its products and loyalty program, it could significantly boost brand recognition.

Bank mergers, understandably, often spark anxiety. Products get devalued, fees creep up, and consumer choice narrows. But so far, EQ Bank has backed up its promise that PC Optimum points will remain a part of its strategy.

If EQ Bank continues to innovate, it could meaningfully shift the loyalty landscape. And if it doesn’t, there will always be another challenger ready to capture more of the market.

Barry Choi is a personal finance and travel expert at moneywehave.com. He was previously affiliated with EQ Bank, PC Financial and RBC but currently has no relationship with any of the brands.