Since Pacific & Western has no branches, and in order to maintain low operating costs, our strategy in providing financing to our target markets – well established corporations and public sector entities – is to partner with existing channels of distribution which already have the strong relationships in these markets.
Pacific & Western Bank raises deposits through the more than 100 organizations who distribute our GICs. This list includes many of Canada's big bank brokerage firms, as well as a host of large, mid-size and smaller investment firms, enabling us to access retail deposits coast to coast.
In order to provide financing to our lending markets, and in order to ensure we reached our Canada-wide client base, we identified all of the established finance and leasing companies throughout Canada who have strong existing relationships with, and who were already financing, our target markets. Rather than competing with these finance companies, it was more cost-effective and advantageous to partner with them, since we were complementary to one another. Where the finance companies have the existing relationship, we have the most effective tool their account managers require – low cost funding – something they did not previously have access to. Hence, rather than hiring the significant number of account managers required to compete, we established a relationship with each finance company whereby as their account managers bid on well established corporate or public sector transactions, they would now be able to utilize Pacific & Western's lower-cost funding, this ultimately has enabled their account managers to win these high quality and competitive tenders. We provide them with the low-cost funding they need upon winning the tender. And we do this with every reputable finance and leasing company, coast to coast. In essence, we have extended account managers servicing our entire target markets without bearing the overhead costs associated with setting up and sustaining a mass internal labour force.