The Office of the Comptroller of the Currency on Monday gave Canada's largest bank permission to operate a virtual bank in the United States.
Canadian Imperial Bank of Commerce in Toronto plans to open CIBC National Bank, which will be headquartered in the Orlando metropolitan area.
CIBC, with $279 billion of assets, currently operates several agencies in the United States. Its new national bank will offer deposit and credit products to consumers, including no-fee checking and savings accounts earning above-market interest rates. Loan products will initially be limited to unsecured consumer loans.
The bank will not have any traditional banking offices and will do business through ATMs, the Internet, a toll-free customer service line, and kiosks in partner retail stores. The bank is being modeled after an existing program CIBC offers in Canadian grocery stores under the brand name President's Choice Financial. CIBC has signed an agreement with Winn Dixie Stores, a Florida-based grocery store chain, and will operate under the brand name Marketplace Bank.