Loblaw Companies and the Canadian Imperial Bank of Commerce have formed a strategic alliance – President’s Choice Financial – that will give cibc access to a new retail customer base and Loblaw a private-label banking product.

Under the agreement, cibc will be the supplier of products, services and manpower under the President’s Choice brand identity. At a press conference held in Toronto, Rob Almeida, vice-president of Toronto-based Loblaw Companies likened the arrangement with cibc to those Loblaw has with various third-party suppliers of its 2,000-plus President’s Choice products.

Paul Howard, media relations director for cibc described the deal as ‘a business opportunity for cibc to be, not only a supplier of retail financial services, but a supplier to pc customers under the Loblaw marketing banner.’

Almeida did not say how the partnership would generate revenue for Loblaw or for cibc, though the grocer will presumably get a cut of the investment returns attached to President’s Choice Financial customer accounts.

Using the tag line ‘Fresh financial thinking,’ PC Financial boasts 24-hour banking, no service fees, higher interest rates, lower-cost borrowing, and – here’s the twist – points that can be redeemed for vouchers good for Loblaw groceries.

The first PC Financial kiosk opened in Ottawa last week and is said to offer customers savings and chequing accounts, four mortgage options and a borrowing account. A customized bank card provides access to a pc banking machine, and staff are available on site. (The card will also allow consumers to use any cibc banking machine without paying a fee. However when using other bank’s automated tellers, charges will be applied.) A Web site for virtual banking is also available.

Almeida says the choice of services offered was in response to customers’ desires for a convenient one-stop place to shop and bank. Loblaw already offers services like photofinishing, pharmacy services and dry cleaning in its stores.

As for the 64 Canada Trust atms currently operating in Loblaw stores, Almeida says the company is currently reviewing its arrangement. However, a Canada Trust spokesperson says, ‘It’s not going to affect our program with Loblaw.’

Loblaw says PC Financial will be rolled out nationally over the next 18 months. A campaign will follow by Toronto-based Roche Macaulay & Partners Advertising.

Strategy first reported on the bank-in-store concept last summer, when Zehrs, a Loblaw banner, opened a cibc test branch in one of its Uxbridge, Ont stores.