Questrade Financial Group, a well-known online trading platform in Canada, has announced its approval to establish a new bank in the country. The company disclosed that it has been granted permission to launch Questbank by the Office of the Superintendent of Financial Institutions (OSFI), which oversees financial institutions at the federal level.
According to Questrade’s CEO and president, Edward Kholodenko, the approval process has been ongoing for years. The initial application for the bank license was submitted in 2019. Kholodenko expressed enthusiasm about this development, stating that it signifies a significant advancement in their mission to enhance the financial success and security of Canadians. He emphasized the company’s commitment to introducing much-needed competition to the Canadian banking sector, building on Questrade’s 26-year history.
While specific details are not yet available, Kholodenko mentioned that Questrade will be working towards offering a comprehensive range of services through its bank. With millions of Canadian customers, the company anticipates sharing more information about its plans in early 2026.
Questbank will operate as a Schedule I bank, distinguishing it as a fully-fledged domestic bank comparable to Canada’s major financial institutions such as Bank of Montreal, Scotiabank, CIBC, National Bank of Canada, Royal Bank of Canada, and TD Bank. This move aligns with a trend of fintech companies expanding into the banking sector, with Wealthsimple Inc. notably broadening its services to include chequing accounts, credit cards, and mortgages.
In contrast to Wealthsimple, which collaborates with Schedule I banks, Questrade’s direct bank status will provide greater flexibility in service offerings and potentially more competitive rates compared to fintech firms reliant on banking partners, as highlighted by Marius Zoican, an expert in finance and Financial Technology at the University of Calgary. Despite this advantage, Wealthsimple’s early entry into banking services through partnerships may give it a competitive edge.
The increasing competition in the banking industry is viewed positively by Zoican, who believes it offers Canadians opportunities to streamline their financial activities. This development allows customers to consolidate their financial dealings with one institution, simplifying processes like transferring funds between checking/savings accounts and investments. The convenience of integrated services is particularly appealing to digitally inclined younger generations.
Overall, the emergence of Questrade’s new bank marks a significant milestone in the Canadian financial landscape, enhancing options for consumers and fostering innovation in the banking sector.
