TORONTO – Canada’s seventh-largest bank is largely unknown to most Canadians, operating without physical branches, credit cards, or wealth management services. However, Chadwick Westlake, who took over as chief executive of EQ Bank in August 2025, has ambitious plans for transformation following a significant acquisition.
In December 2025, Westlake announced a deal to acquire PC Financial, including its PC Mastercard portfolio and PC Money accounts. This move aims to elevate EQ Bank’s profile significantly, as its branding is set to be displayed in thousands of grocery stores and ATMs nationwide through a partnership with Loblaw Cos. Ltd. and its PC Optimum loyalty program.
Recognizing that 80 to 90 percent of Canadians are unaware of EQ Bank, Westlake stressed the need for this transformative deal from the moment he assumed leadership. “This was a top priority because I truly believe this is the key to creating a scaled significant challenger for Canada. There’s no deal like this,” he stated in an interview.
The acquisition of PC Financial is just one aspect of the changes at EQ Bank, which is striving to compete with the dominant Big Six banks in Canada. With Westlake's appointment following the sudden death of former CEO Andrew Moor, the bank has also made notable new hires, including Anilisa Sainani as CFO, and has relocated to a new headquarters.
This acquisition is expected to have the most substantial visible impact on Canadian consumers as EQ Bank’s yellow branding becomes more prevalent in grocery stores, addressing a critical challenge for a digital bank competing with established giants. Westlake commented, “One of the things this does is it gives us more trust, and trust is paramount in banking.” He acknowledged that digital-only banks often reach a plateau since Canadians are generally complacent regarding their banking preferences.
Despite the focus on expanding brand presence, Westlake clarified that EQ Bank would not be establishing physical branches. Instead, the bank plans to optimize costs and possibly expand its existing 180 kiosks located in grocery stores. “You get all the functionality without needing to have the vault and the cash, keeping it simple,” he explained.
In addition to enhancing brand visibility, EQB Inc., the bank's parent company, is also striving for greater operational efficiency. Following a round of layoffs last fall that reduced staff by about eight percent, Westlake indicated that the bank must maintain a lean operation amid rising expenses.
The bank is closely monitoring loan losses, specifically as it has a greater exposure to the mortgage market compared to larger banks, and has ventured into alternative mortgages, catering to clients like the self-employed. Recent quarters showed an increase in concerning loans, with provisions for credit losses rising in response to economic uncertainty. Scotiabank analyst Mike Rizvanovic noted in a report that EQB faced “material credit deterioration” across its loan portfolio. He raised concerns regarding how the acquisition of PC Financial, particularly its card portfolio, could affect future credit cycles, given its tendency to incur higher loss ratios than larger banks.
Countering these concerns, Westlake asserted that PC Financial's card performance is mid-pack relative to the big banks and noted that clients seeking alternative mortgages often prove to be resilient during downturns. Analysts have expressed mixed views on the deal's impact, with some seeing it as strategically beneficial and carrying potential for revenue diversification, while others remain cautious about the inherent risks.
Moreover, while the PC Financial acquisition enhances EQ Bank's offerings, it does not address the gap in wealth management services, such as stock trading and investment advisory. Westlake acknowledged this need, indicating that the bank is exploring possibilities for another acquisition or partnership to fill this void.
Overall, as alternative banks like Wealthsimple Inc. and Questrade Financial Group continue to expand, Westlake believes there is substantial room for growth. He remarked on the ongoing changes within Canada’s concentrated banking market, particularly with the federal government moving forward with open banking initiatives aimed at increasing competition. “We are truly at the cusp of driving a significant change in how banking is done in this country,” he concluded.
