Canadian Imperial Bank of Commerce (CIBC) says it is working with fintech startups to launch disruptive new services such as free cross-border money transactions and online lending aimed at small businesses.
The Toronto-based bank is planning to launch a service within the next few weeks that will allow its customers to move money from Canada to 35 different countries for no cost from their phone, their computer or a bank branch.
CIBC (TSX:CM) says it has partnered with a fintech company for the service, but didn’t name the partner Wednesday.
The bank said it is also partnering with an unidentified fintech company to explore online, algorithm-based lending for small businesses — a space that is currently dominated by startups such as U.S-based OnDeck Capital.
CIBC also announced that it will take a restructuring charge of up to $200 million in the fourth quarter of this year but provided no further details on the charge Wednesday at the bank’s first investor day in five years
The bank is aiming for $600 million in cost savings by 2019 through digitizing some of its processes, standardizing its data and re-evaluating its real estate portfolio.
“Some of this will fall to the bottom line as we improve our operating base, but a large part of it, certainly in the earlier years, will be reinvested into the business to transform the way we do business,” chief financial officer Kevin Glass said Wednesday.