Major Canadian banks RBC and BMO allegedly aiming to offload payments titan Moneris for a $2 billion price tag
RBC and BMO Explore Potential Sale of Moneris for $2 Billion
Royal Bank of Canada (RBC) and Bank of Montreal (BMO) are reportedly exploring a potential sale of their joint payments venture, Moneris, with the transaction valued at around $2 billion. Moneris, one of Canada’s largest payment processors, handles approximately one in every three business transactions nationwide and serves about 325,000 merchant locations.
Moneris Partnerships and Technological Advancements
This year, Moneris has entered into partnerships with the UK’s largest independent payment technology provider, Cardstream Group, website-building platform Wix, and Quebec’s Polykar for their PolyVie pilot recycling program. The company was also recently in the news for launching ATOM, a proprietary AI model developed by RBC’s research institute Borealis, integrated into its Lumina platform. ATOM was trained on extensive financial data, giving it advanced capabilities in financial services.
BMO’s Tech-forward Offerings
BMO continues to roll out tech-forward financial tools, including My Financial Progress, powered by Winnipeg’s Conquest Planning, BMO SmartProgress, which provides personalized financial literacy content, BMO Insights, offering clients enhanced views of their transactions, and CashTrack, an AI-driven tool predicting cash flow concerns.
The Future of Moneris
The potential Moneris sale is still in early exploratory stages with no guarantee of completion. The banks may decide to retain stakes in Moneris. Investment advisory support includes boutique PJT Partners and the banks’ own capital markets arms.
The report suggests that RBC and BMO are in the early stages of exploring a potential sale of Moneris, and may choose to retain stakes in the firm. If the sale goes through, it would mark a significant shift in the Canadian payments industry, as banks continue to seek technology-driven growth and consolidation.
Industry Consolidation and Growth
There is also broader industry consolidation, as seen by other banks, such as TD Bank’s recent strategic partnership with Fiserv for Canadian merchant payments, highlighting a trend towards mergers, acquisitions, and technology-driven growth in payments.
In summary, RBC and BMO are assessing a high-profile sale of Moneris while continuing technological innovation and strategic partnerships within both RBC’s and BMO’s broader financial service ecosystems. The banks' focus on technology and partnerships is a reflection of the rapidly evolving financial services industry, as companies seek to remain competitive and provide the best possible services to their customers.
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