Quote:
Originally Posted by Ford Prefect
So what's the upside for the financial institutions with M1s? There must be some or they wouldn't be offering this product.
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Well Manulife in particular makes money a few ways. (A) They have profit built into the spread...they borrow for cheaper than they lend. (B) Because Manulife markets investments and similar strategies they can reap a lot benefit by having people get out of debt faster...when people are out of debt they can/traditionally do invest more. Manulife clearly wants those investments in the door! So what better way to earn a consumers trust and loyalty than by helping to get them above water sooner?