By Rita Trichur
Bank of Montreal, Canada's fourth-largest bank by assets, said
it aims to double its customer base in the U.S. to six million
people over the next three to five years as it looks to push
further into the U.S. retail banking market.
The Toronto-based bank operates as BMO Harris Bank in the U.S.,
with a presence that is mainly concentrated in the Midwest. BMO
Harris Bank currently has about 600 U.S. branches and three million
customers and is ranked second largest in Illinois and Wisconsin,
as measured by deposits.
Like other Canadian-based lenders, BMO is eyeing expansion in
the U.S. as it grapples with slower growth prospects at home.
Analysts expect Canadian banks with U.S. operations, such as BMO
and Toronto-Dominion Bank, are expected to benefit from an
improving U.S. economy this year.
"I don't generally put things out if I don't expect to see it
happen within three to five years," Chief Executive Officer Bill
Downe said in an interview Tuesday. "I think that's a reasonable
time frame," he added.
Part of the bank's growth strategy is, in part, to increase the
number of customers in its existing U.S. branches, while keeping a
lid on costs. The bank is looking at new technology to help it do
that.
Earlier this month, BMO launched the U.S.'s largest cardless ATM
network, technology that allows customers to withdraw cash by using
their smartphones. The bank said this will speed up transactions
and reduce fraud.
Its U.S. launch of Apple Pay, meanwhile, is imminent, said Mr.
Downe, referring to technology giant Apple Inc.'s new
mobile-payment system.
The bank earlier this month also debuted its first "smart
branch," which features video tellers. BMO will open four more of
those "smart branches" in the U.S. this year, in a bid to cut down
on staffing costs and to extend banking hours. The bank also aims
to open new branches in parts of the Chicago metropolitan area
where it sees gaps in its footprint.
"You have to remember that BMO Harris Bank was principally a
commercial bank until 10 years ago," Mr. Downe said in an interview
that followed the bank's annual meeting of shareholders in Toronto.
"So, we're building a retail brand."
Write to Rita Trichur at rita.trichur@wsj.com
Access Investor Kit for Bank of Montreal
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=CA0636711016
Access Investor Kit for The Toronto-Dominion Bank
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=CA8911605092
Access Investor Kit for Apple, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0378331005
Subscribe to WSJ: http://online.wsj.com?mod=djnwires