The Canadians are Coming...for Our Banks

Yesterday Toronto-based Toronto-Dominion Bank announced that it will be buying Commerce Bancorp, a U.S. Mid-Atlantic bank for $8.5 billion in cash and stock ("TD Bank Buys Commerce Bancorp in $8.5 billion Deal," 10/2). It is the latest in a recent string of Canadian banks buying U.S. banks. Just last month, Royal Bank of Canada acquired Alabama National Bancorp for $1.6 billion.

It is not a new phenomenon for Canadian business to look south of its border for expansion. The strength of the Canadian dollar is certainly driving the decision for some to acquire instead of expand. My question is how will this affect collection agencies in North America?

It is nothing new for a collection agency based in Canada to want to service U.S. clients.  The Canadian collection market is mature and the larger players realize that expansion needs to come from outside their borders. Some Canadian agencies already service U.S. banks and are currently doing so from their Canadian offices. Some have opened branch offices in the U.S. Occasionally, some have made acquisitions into the states. If large Canadian banks continue to acquire U.S. banks, will this spark a more aggressive move among the larger agencies based in Canada to expand more rapidly into the U.S.?  I think the answer is yes. What do you think?