Zag was founded as Bank West in High River, Alberta in 2002 and acquired by Desjardins in 2011 along with the other Western Financial Group companies.

Desjardins announced on November 5, 2018 the winding down of operations for Zag Bank effective 2019.

The bank maintained offices in High River and Winnipeg.

[2] In 2010, Western Financial was acquired by the Desjardins Group[3] and the transaction was completed in 2011.

[5] On 5 November 2018, Zag Bank announced the end of all remaining operations by the second quarter of 2019.