Questrade Receives Regulatory Approval to Launch Digital Bank in Canada
Questrade Financial, a leading online brokerage, has secured significant regulatory approval from the Office of the Superintendent of Financial Institutions (OSFI) to launch its digital bank, Questbank, in Canada. The ‘Order of Commencement and Carrying on of Business’ marks the final step in the federal banking licensing process, paving the way for Questbank to expand its services into the Canadian market.
Questrade’s Journey into Banking
Founded in 1999, Questrade has over the years managed more than C$85bn ($60.61bn) in assets, primarily operating as a non-bank online brokerage. The company applied for a banking license in 2019, marking a significant stride in its expansion plans. As the company expands its offerings, it plans to introduce a variety of banking products and services under Questbank in the first half of 2026.
Increasing Competition in the Canadian Banking Sector
The Canadian banking sector has been traditionally dominated by six major banks, which hold significant market share in consumer and commercial banking. However, smaller digital institutions and fintech companies like EQB’s Equitable Bank, Koho, and Wealthsimple have recently begun to challenge this status quo by offering lower fees and digital-first services.
The OSFI, which oversees the licensing process for new banks in Canada, has expressed its willingness to increase competition in the sector. OSFI’s superintendent Peter Routledge, at an event in October, stated that he is prepared to be “a little bit less conservative” to increase competition in the sector. He added, “We need to do more to make it easier for competitors to enter the system. We can take some calculated risks to let new players come in and compete.”
A Fresh Perspective on the Canadian Banking Landscape
Questrade CEO Edward Kholodenko expressed his excitement about this development, saying, “Following the successful path forged over Questrade’s 26-year history, we are thrilled to expand our offering to introduce much-needed competition to the Canadian banking landscape.” Given Questrade’s industry expertise and robust customer base, the introduction of Questbank is expected to bring a fresh perspective and competitive edge to the Canadian banking sector.
As we anticipate the launch of Questbank, it’s clear that Questrade’s entry into the banking sector holds promising potential for increasing competition and bringing innovative digital-first services to Canadian consumers. This move is a significant step towards diversifying the Canadian banking landscape and offering customers more options when it comes to managing their financial affairs.
For more information on this topic, click Here.
