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  5. EQB: I'm trying to get my head around EQB . [EQB Inc.]
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Q: I'm trying to get my head around EQB . I've read 5i's analysis of the company but the part I don't understand is why would " Joe Sixpack " go to them for a car loan or to renew their mortgage rather than one of the big six ? ...... Not to mention I suspect " Joe Sixpack " has never heard of them . I also don't understand why or what a Credit Union would use them for ? ..... Could 5i explain just who their market is ? And why using EQB would be more attractive than a mainstream financial institution ? Thanks for your terrific service .......
Asked by Garth on November 22, 2024
5i Research Answer:

EQB is a digital-first, mid-sized Canadian bank that acts as an alternative to the big six. It caters to niche audiences like entrepreneurs, immigrants, and self-employed individuals that the traditional banks may overlook. These groups often face challenges with traditional lending despite having strong creditworthiness. It offers a digital experience for banking, with no fees on everyday banking, which can target younger demographics. EQB also offers attractive deposit and mortgage rates. Also, without any physical branches, EQB has lower operating costs and this allows it to offer competitive pricing. 

EQB owns Concentra Bank, a key partner for many Canadian credit unions. It supports open banking, creating opportunities to collaborate with fintechs and financial institutions, including credit unions.