(Montreal) By the end of the year, it will be easier to obtain a Visa credit card from the Laurentian Bank, assures Rania Llewellyn, its president and CEO, who presented on Monday the major aspects of his strategy at an RBC Capital Markets virtual conference.
Laurentian Bank unveiled a strategic plan in December, one of the axes of which is to catch up with its technological backwardness, which is a source of irritants for customers. To accelerate the transition, the Montreal financial institution is counting on the search for partnerships. The launch of a mobile application in December, in seven months, is presented by the leader as an example to follow.
The next step will be to speed up the processing of applications for a Visa credit card, said Mr.me Llewellyn during the virtual conference. A few days before Christmas, Laurentian announced that it had reached an agreement with Financière Brim, a Toronto fintech, to integrate its platform.
“It takes 25 days to authorize a Visa credit card with us,” Mr.me Llewellyn. With Brim, we will be able to do this in real time online. Customers will also be able to receive a virtual card, which will allow them to make transactions immediately. ”
Laurentian Bank wants to sign other agreements. Without naming the company, Mme Llewellyn says he has discussions with a potential partner in the mortgage services segment. “We are evaluating the possibility of entering into partnerships across the organization whether for the operational side or other parts of the business. ”
The manager hopes that catching up on its technological backwardness will facilitate the cross-selling of products. “Take the example of a client outside of Quebec, who has a mortgage with us, but who cannot open a bank account online. We will be able to join him. ”
With its strategic plan, Laurentian wants to generate growth in adjusted earnings per share of more than 5% in fiscal 2022. It hopes to achieve a rate of 7% to 10% in the medium term.
American expansion and ESG
During the interview, analyst Darko Mihelic of RBC Capital Markets admitted he was surprised by the goal of expanding into the United States, unveiled in December. Laurentian wants to increase the size of its commercial loan portfolio in the United States, from 14% to over 18% of loans in 2024.
Since the purchase of Northpoint Commercial Finance, which specializes in inventory financing, in 2017, the acquisition has nearly doubled the size of its assets, Mr.me Llewellyn. She believes there are still plenty of opportunities to grow in the segment.
She mentioned that over 81% of clients in the United States would consider recommending Laurentian’s services. “Those who know us love us. It is a company that has excellent margins, we have succeeded in increasing the size of our clientele by 20% in the midst of the pandemic. So, yes, we are very optimistic. ”
The banker also reiterated the importance of ESG criteria in its strategy and that these principles would guide the decisions of the financial institution. She gave as an example that Brim Financial, with whom she has partnered for Visa cards, is a company founded by an immigrant businesswoman (Rasha Katabi).
She believes that the attention paid to ESG criteria will allow her to enter new markets. “I think it will help us attract clients who place great importance on ESG principles. ”