Canada’s seventh-largest bank remains relatively unknown to most Canadians. EQ Bank operates without branches, credit card offerings, or an in-house wealth management platform — at least for now. That could change quickly. Chadwick Westlake, who took over as chief executive in August, moved decisively in December by announcing a deal to acquire PC Financial’s Mastercard portfolio and PC Money accounts. He also forged a partnership that brings Loblaw Cos. Ltd. and the PC Optimum loyalty program into the fold. Westlake has said the bank aims to become a household name by year-end, with the partnership putting the EQ Bank brand in grocery stores and ATMs across the country.
Major deal and leadership shifts signal a new era
Westlake has been clear that raising EQ Bank’s profile was a top priority when he assumed the role. He believes the PC Financial acquisition is a unique opportunity to scale a genuine challenger to Canada’s largest banks. The deal, expected to close this year, is the most visible change but not the only one. EQ Bank is reshaping its leadership after the sudden death of former CEO Andrew Moor, who led the business for 18 years. The bank also appointed a new chief financial officer and relocated into a new head office as part of broader organizational renewal.
Digital banking meets real-world visibility
For a digital-first bank, bringing physical visibility through the PC Financial partnership addresses a recurring challenge: trust and familiarity. Westlake notes that digital-only brands tend to plateau because many Canadians are content with their existing banking relationships. The PC Financial tie-up is intended to make EQ Bank feel more tangible and familiar to consumers. Rather than opening traditional branches, the bank plans to leverage existing in-store infrastructure — the 180 pavilions in grocery stores — to offer functionality without the cost of vaults and cash handling.
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Westlake emphasizes that trust is central to banking. The PC Financial agreement should help EQ Bank bridge the gap between a digital experience and the reassurance customers often associate with physical touch points. At the same time, EQ Bank intends to keep costs under control and preserve operational efficiency, relying on the grocery-pavilion model rather than building a costly branch network.
EQ Bank trims costs and manages credit risk
Alongside growth plans, Westlake has focused on tightening the bank’s cost structure. A staff reduction last fall eliminated about 8% of roles after expenses had risen. The company framed those decisions as necessary to maintain an efficient operating model.
EQB Inc., the parent company, has also been addressing rising loan losses amid economic uncertainty. The bank has a relatively high exposure to the mortgage market versus the largest Canadian banks and has grown its presence in alternative mortgages, serving clients such as the self-employed who may not qualify easily for conventional lending.
In the most recent quarter the bank reported an increase in concerning loans, which pushed up provisions for credit losses. Scotiabank analyst Mike Rizvanovic noted a “material credit deterioration” across EQB’s loan portfolio after the Q4 results, and he warned that acquiring PC Financial could make the bank more sensitive to credit cycles because consumer card portfolios often run higher loss ratios than other cards. Westlake pushed back on that characterization, saying PC Financial’s card performance is middling compared with the major banks and that alternative mortgage borrowers can sometimes be more resilient in downturns.
Rizvanovic acknowledged the acquisition would diversify revenue and could transform the bank’s deposit base while creating growth potential in the credit card business, but he did not call the outcome a clear-cut win. Other analysts have been more upbeat: BMO’s Étienne Ricard raised his price target for EQB and said the deal strengthens strategy, diversification, and cross-selling potential.
EQ Bank eyes wealth management to fill product gaps
While the PC Financial deal adds cards and deposit scale, it does not bring wealth management services such as trading platforms or advisory capabilities. Westlake has indicated the bank is actively pursuing ways to add those products, likely through acquisition or partnership rather than building from scratch. Adding wealth and investment services would fill a longstanding gap and would position EQ Bank to offer a fuller product suite to customers.
Competition among digital challengers is heating up. Other fintechs and online banks have introduced cards and expanded licensed services, but Westlake argues that all alternatives combined still represent a small portion of the market dominated by the Big Six, leaving room for multiple challengers to grow.
With regulatory momentum behind open banking and other measures to increase competition, EQ Bank is betting now is the right moment to scale. Westlake says the bank stands “at the cusp of driving a significant change in how banking is done in this country,” aiming to combine digital efficiency with broader brand recognition and product depth.
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