Consumers are facing a steep financial toll in the wake of the COVID-19 pandemic, and the Canadian Imperial Bank of Commerce (CIBC) is setting itself apart with its financial aid for hard-hit clients. The bank rolled out the 'CIBC Pace It' plan which offers no fees and low interest on credit card purchases, with purchasing above $100 now eligible for installment plans. A choice of different payment terms ranging from six to 24 months are now available at rates from 5.99% to 7.99% per annum and multiple installment plans can be set up and managed.
"We know Canadians need help now to manage day to day expenses," says Laura Dottori-Attanasio, Senior Executive Vice-President, Personal and Business Banking, CIBC. "By lowering rates, we want to help reduce stress that Canadians are feeling as a result of COVID19 and provide them with additional flexibility for every day purchases."
COVID Credit-Card Rate Cuts
The CIBC Pace It Offers a Temporary Lower Annual Rate for Cardholders
Trend Themes
1. Flexible Payment Plans - Financial institutions can create flexible payment plans for customers to alleviate stress during financial hardship.
2. Low Interest Rates for Credit Cards - Banks can offer lower interest rates for credit cards to help customers manage financial strain during difficult times.
3. Installment Plans for Credit Card Purchases - Credit card companies can offer installment plans for purchases above a certain amount to make payments more manageable for customers.
Industry Implications
1. Banking - Banks can offer financial assistance to clients in difficult times by introducing flexible payment plans and reduced interest rates for credit cards.
2. Fintech - FinTech companies can innovate with flexible payment plans and improved credit card products designed for customers facing financial hardship.
3. Consumer Goods - Consumer goods businesses can collaborate with financial institutions to offer installment payment options for customers, making large purchases more affordable and manageable.