Canadian Tire has become the first Canadian retailer to take its loyalty program and retail credit card products onto the Interac and Cirrus abm systems, teaming up with virtual banker ING Direct on a branded network of in-store abm machines.

Called CT Direct, the new cash dispensers give Canadian Tire customers the option of using their Canadian Tire card or Options MasterCard to perform proprietary functions, such as obtain interim statement printouts and account balances, make account payments, change personal identification numbers and make Options points-balance inquiries.

For Canadian Tire cardholders, it means access to retail credit card-related accounts previously available only at service desks or centralized offices. It also means added value for Canadian Tire’s Options loyalty program, which members will now be able to track on their own time.

ING Direct customers, meanwhile, gain a new way to obtain access to account services such as deposits, transfers and withdrawals that had previously been limited to phone or mail.

True to ING Direct’s price positioning, the whole package of services – Canadian Tire’s and ing’s – all come without fees. Cash advances are also available.

‘It’s something our customers want,’ says Scott Bonikowsky of Canadian Tire corporate affairs. ‘They’ve clearly indicated in the research we’ve been doing that this is something they find of value.’

Consumers in London, Ont. have first dibs on the new service, which is being launched in five area stores. Based on a successful maiden run, however, Bonikowsky says the machines could well expand to all of Canadian Tire’s 430 stores across Canada – a significant distribution boost for ING Direct.

Retailer/bank couplings have become something of a fad in recent years, though the blushing bride has usually been a grocery chain, dowered with one-stop-shopping appeal that the banks leverage to expand their distribution net and attract new customers.

As for the grocery retailers, they get to boast of yet another service ‘under one roof.’

td has established kiosk locations in Ontario Maxi & Co. stores, National Bank has linked up with Provigo in Quebec, while Loblaws and cibc recently joined forces to create a President’s Choice banking brand in Loblaw’s superstore locations.

The Canadian Tire/ING Direct deal is founded on much the same premise, though ing’s particular challenge is to establish a viable proxy for the traditional bricks-and-mortar branch presence of its competitors.

In addition to cost sharing, Bonikowsky says Canadian Tire chose ING Direct as a partner for several reasons, including the bank’s technological prowess and its knowledge of banking customers in the London market.

The new machines are part of the Interac and Cirrus networks, but it isn’t entirely a two-way deal. Though bank card holders from other financial institutions will be able to make withdrawals, Canadian Tire retail cardholders will be able to gain access to their accounts only through CT Direct machines. Ditto for newly minted ING Direct bank card holders (see sidebar).

CT Direct is spearheaded by Canadian Tire Acceptance, Canadian Tire’s financial products and services arm.

Sidebar: CT Direct gives ING physical presence

By linking up with a major retailer, virtual bank ING Direct is establishing a physical presence for its services, albeit under a co-branding partner’s roof.

More importantly, ing is launching a new distribution channel and beginning to establish service parity with its competitors, providing its banking customers the atm access most take for granted.

‘It’s a fabulous partnership in that we share similar values with respect to customers in terms of our commitment to convenience, commitment to high-value products and great prices,’ says Annette Borger, director of communication, ING Direct. ‘Canadian Tire is Main Street, we’re about Main Street. There are a lot of similarities between their customers and ours.’

For the first time, ING Direct customers will be issued an atm card for use at Canadian Tire banking machines. The rollout begins in London, where both investment savings account and loan account customers will be issued a card. As for the rest of Canada, only ING Direct loan account holders will receive cards for the time being.

A number of in-store promotions are underway from May 11 to June 15, including a contest intended to drive traffic to the machines. A number of ct direct greeters will be on hand to help build awareness. A mass flyer drop by postal code has been completed in the London area.

Positioned as a ‘high-value’ banking brand, ING Direct is a federally chartered bank and part of the Dutch banking conglomerate ING Groep N.V., one of the world’s largest financial services companies.

Just over a year after opening for business on April 26, 1997, ING Direct has signed up more than 50,000 customers and established an asset base of nearly $850 million, the company says.