Ontario credit union Meridian says it plans to launch a new bank in an effort to expand beyond Ontario.
The credit union hopes to start offering online and mobile-based banking services outside the province in 2018.
Meridian Bank will be a wholly owned subsidiary of the credit union.
Shares in the bank will not be publicly traded or sold.
Meridian CEO Bill Maurin says the bank will be based on the values and commitment to service that has defined the credit union.
Meridian was created in 2005 and has 270,000 members in Ontario and 81 branches across the province.
"We believe, and our research shows, that there is a clear desire in the marketplace for an innovative digital bank that offers a true full-service alternative to the big banks," Maurin said.
"With Meridian Bank, we want to bring the same Meridian experience to other Canadians, and unlike other digital offerings out there, we want to do that with the service offering breadth of a traditional full service retail financial institution."