Digital banking solutions seem to be the trend in Canada with the entry of Motusbank into the space. It follows in the footstep of Tangerine bank. But how does Motusbank make money?
Motusbank is a digital-only full-service banking solution provider. It is wholly-owned by Meridian.
Meridian is Ontario’s largest credit union, and third largest in Canada.
Motusbank has a laser-focus on high quality digital customer service. With all this, one might wonder, how does Motusbank make the money?
I know you are interested in knowing this too. Today is your lucky day.
In this article, you will learn and understand how Motusbank makes money, its products and services, and the bank’s business model.
How Does Motusbank Make Money?
- Savings Accounts
- Loans and Mortgages
- Fee-free banking
Motusbank’s digital lending platform allows you to apply for and receive mortgage, lines of credit and loans completely online without paper forms.
It competes against Tangerine and Simplii Financial. Others are EQ Bank and Alterna bank.
Leveraging technology is allowing Motusbank to provide end-to-end digital platform.
You can open an account, mortgages, unsecured loans and lines of credit through the bank’s digital platforms or channels
As a virtual bank, Motusbank does not charge you anything for a checking account.
It pays a good savings rate on saving and has a unique offer on mortgages.
This might be the reason you are curious about how Motusbank makes money.
While Motusbank provide great interest rates, it does not offer credit card services. This might turn off potential clients who prefer to keep their money under one hood.
All things considered, Motusbank is making money from the fees it charges for personal loans and mortgages.