Canadian Tire Financial Services

Canadian Tire Services Ltd.
Canadian Tire Bank
Company typeSubsidiary
IndustryFinancial services
PredecessorCanadian Tire Financial Services (1968–2016)
Founded2003
HeadquartersOakville, Ontario
ProductsTriangle Rewards
Canadian Tire money
OwnerCanadian Tire (100%)
Number of employees
1400 full-time equivalent
ParentCanadian Tire
Websitewww.ctfs.com

Canadian Tire Services Ltd. (CTSL), doing business as Canadian Tire Bank (French: Banque Canadian Tire), is the financial services subsidiary of the Canadian Tire retail chain. The bank is based in Oakville, Ontario, and has additional business operations in St. Catharines and Welland, Ontario. Between 1968 and 2016 (with some branding continuing until 2018), Canadian Tire Services Ltd. was known as Canadian Tire Financial Services Ltd. (CTFS or CTFSL).[1][2]

History

In 1968, Canadian Tire purchased Midland Shoppers Credit Limited, a small company founded in 1961 to provide third-party credit processing for local retailers in the Niagara Region.[3][citation needed] After its acquisition, the company was renamed "Canadian Tire Acceptance Limited (CTAL)", and later "Canadian Tire Financial Services Limited".[3]

Canadian Tire Bank (CTB), a Schedule 1 (domestic, deposit-taking) bank under the Bank Act, was founded in 2003 and took over financial services that had been provided by CTFS.[3] In addition to MasterCard credit card services, Canadian Tire Bank also launched high interest savings accounts, tax-free savings accounts, and GIC products.[4][5]

In 2014, Scotiabank signed a deal to buy a 20 percent stake in Canadian Tire's financial services business, which includes Canadian Tire Bank,[1][2] for $500 million in cash as part of a strategic partnership between the two companies under which Scotiabank was also permitted to buy up to an additional 30% (or sell back to Canadian Tire its 20% stake) at the then fair market value within 10 years.[6][7]

In 2023, Canadian Tire repurchased the 20 percent stake that Scotiabank had owned for $895 million, restoring its ownership to 100%.[8]

MasterCard

In 1995, the bank issued the Canadian Tire Options MasterCard nationally with a reward program for purchases of products from Canadian Tire and, later, launched its Gas Advantage MasterCard product whereby the cardholder earned a tiered discount of 2–10¢ (in Canadian currency) per litre on gasoline purchases from Canadian Tire based on the previous month's gas purchases.[9] In 2008, it embedded the card with Mastercard's PayPass "tap-and-go" technology.[10][citation needed] These cards continue to be offered by Canadian Tire Bank.[10]

In 2006,[citation needed] the bank began a pilot program of the Cash Advantage MasterCard.[11] Its reward program allowed cardholders to earn up to 1.5% cash back based on the amount of eligible annual purchases made on their card. In 2007,[citation needed] it created the Vacation Advantage MasterCard, with cardholders rewarded with points that could be redeemed for any vacation-related purchase.

In 2009, it issued the Curve MasterCard nationwide, so named for the distinctly curved shape of the lower right-hand corner of the card.[12] It had no annual fee and had a reward program that allowed cardholders to earn up to 3.5% cash back, based on the amount of eligible annual purchases made on their card. Cardholders could earn double cash back at Canadian Tire and Mark's Work Wearhouse stores. (Mark's is a clothing and footwear retailer that has been a subsidiary of Canadian Tire since 2002.[13]) In late 2010, the Vacation Advantage and Curve MasterCards were removed from Canadian Tire's credit portfolio.[citation needed]

On May 1, 2018,[14] the cards were rebranded under the Triangle Rewards name, to match up with Canadian Tire's new customer loyalty program.[citation needed]

On March 11, 2022, Canadian Tire announced that Triangle Mastercard holders would earn 10¢ by using their card on fuel purchases at any gas station across the nation.[15] This period ended June 19, 2022 and the Canadian Tire Triangle Mastercard now earns 5¢ on fuel purchases.[16]

Insurance

CTB markets payment protection insurance underwritten by Assurant, and identity theft insurance offered in a partnership arrangement[17] with Sigma Loyalty Group[18] who, in turn, partners with Intersections, Inc., to underwrite the policies under its Identity Guard product offering.[19] It used to sell term life and travel insurance underwritten by Canada Life,[20] but later stopped marketing those products.

Retail banking

In October 2006, CTB began to offer more traditional banking services over the phone or online.[4] Such offerings included, as of 2019:[21]

The bank used to offer mortgages, but in October 2009, CTB sold its residential real estate secured lending portfolio of approximately 1,000 mortgages valued at approximately $167 million[5] to National Bank of Canada and no longer offers mortgage products.[4]

All deposit products are automatically insured to applicable limits by the federal crown corporation Canada Deposit Insurance Corporation (CDIC).[22]

References

  1. ^ a b "2015 Annual Information Form from Canadian Tire Corporation, Limited" (PDF). Canadian Tire Corporation, Limited. Canadian Tire Corporation, Limited. February 17, 2016. Retrieved August 24, 2019.
  2. ^ a b "2014 Annual Information Form from Canadian Tire Corporation, Limited" (PDF). Canadian Tire Corporation, Limited. Canadian Tire Corporation, Limited. February 26, 2015. Retrieved August 24, 2019.
  3. ^ a b c "About Us". Canadian Tire Corporation, Limited. Canadian Tire Corporation, Limited. Retrieved August 26, 2019.
  4. ^ a b c "Canadian Tire to expand successful deposit products as part of focused retail banking strategy". Canadian Tire Corporation, Limited. Canadian Tire Corporation, Limited. 14 October 2009. Retrieved 26 August 2019.
  5. ^ a b "Canadian Tire sells mortgage business". RATESDOTCA. RATESDOTCA GROUP LTD. 15 October 2009. Retrieved 26 August 2019.
  6. ^ "Scotiabank, Canadian Tire strike $500M financial services deal". CBC News. The Canadian Press. May 8, 2014. Retrieved October 13, 2015.
  7. ^ "Canadian Tire Corporation and Scotiabank enter strategic business partnership that includes Scotiabank acquiring 20% of Canadian Tire's Financial Services Business". Canadian Tire Corporation, Limited. Canadian Tire Corporation, Limited. 8 May 2014. Retrieved 26 August 2019.
  8. ^ "Canadian Tire Corporation to accelerate the growth of Triangle Rewards with strategic repurchase of Financial Services business stake from Scotiabank". corp.canadiantire.ca. Retrieved 2023-11-30.
  9. ^ "Gas Advantage MasterCard". Canadian Tire Bank. Canadian Tire Bank. Retrieved 26 August 2019.
  10. ^ a b "Cards". Canadian Tire Bank. Retrieved 26 August 2019.
  11. ^ "Cash Advantage MasterCard". Canadian Tire Bank. Canadian Tire Bank. Retrieved 26 August 2019.
  12. ^ Williams, Andy (30 September 2009). "Canadian Tire launches curved MasterCard". SecureID News. AVISIAN Publishing. Retrieved 26 August 2019.
  13. ^ "Canadian Tire buys Mark's Work Wearhouse for $116 million". CBC News. 19 December 2001. Retrieved 26 June 2011.
  14. ^ "Canadian Tire Triangle MasterCard". Retrieved 22 September 2020.
  15. ^ "Canadian Tire Helps Canadians at the Pumps by Doubling Triangle Rewards Offer". corp.canadiantire.ca. Retrieved 2022-11-15.
  16. ^ Wilson, John (2022-11-12). "Canadian Tire Triangle Mastercard". Clever Banker. Retrieved 2022-11-15.
  17. ^ "Optional Products". Canadian Tire Bank. Canadian Tire Bank. Retrieved 26 August 2019.
  18. ^ "Sigma Loyalty Group, Inc". Sigma Loyalty Group, Inc. Retrieved 26 August 2019.
  19. ^ "Our Partners". Sigma Loyalty Group, Inc. Retrieved 26 August 2019.
  20. ^ "Canadian Tire Insurance". Life Insurance for Canadians. Insurance Supermarket, Inc. Retrieved 26 August 2019.
  21. ^ "Products". Canadian Tire Bank official website. Retrieved August 26, 2019.
  22. ^ "What's Covered?". CDIC. Canada Deposit Insurance Corporation. Retrieved 26 August 2019.
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