WealthSimple launched a new line of credit to challenge big banks, big banks
Welthusimple Inc. on Wednesday announced a line of its first credit card and credit as it enhances efforts to challenge the dominance of the big banks of Canada.
Extension also includes mobile check deposits, wire transfer and bank draft additions, which are in the checked account launched in 2020, when it began to push towards the full financial suit introduced by the banks.
Welthusimple, which began with focus on automatic investment management more than a decade ago, has long stressed that he does not want to be a real bank, and Chief Commercial Officer Paul Teshima says that there is still no plan to become a one.
He said, “What we want to do continues to bend in the fact that because we do not have a banking license, we can make matters of interesting and different use,” he said.
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He pointed to the arrangement of wealthwells with 10 banks to conduct his customers deposits, which gave him coverage of up to $ 1 million, Canada Deposit Insurance Corp, as one of those benefits.
Bank draft delivery now, check delivery promised
The new prasad of the Wealthcimple includes its credit card with two percent cash back on Wednesday, while it says that its credit line rate will be reduced by 4.45 percent when it is launched by the end of the year. (The current major rate is 4.95 percent.)
New credit card customers will not be charged additional conversion or FX fee when spending money in foreign currencies.
Wealthcimple plans to provide its customers the ability to use the balance of their investment account as collateral for credit lines.
Everything is not purely digital. Customers will also be able to send bank draft to recipients at any cost.
It is also working on a feature where users can still write traditional paper checks using the app, with financial institutions printing and distribute checks to the recipient.
“There are some people who still use the check,” Thesima said in an interview with CBC News. “What we don’t want to do, it clearly expects customers not to do things they do today.”
The Pilot is also pointing into a pilot project being launched in the Welthusimple Toronto region, where the actual cash will be delivered to a customer’s door.
“For those immediate moments, we are going to send cash rights to your door, similar to Uber Eats,” Teshima explained, the pilot may eventually include US dollar delivery keeping in mind the pilot.
Large banks have most assets in Canada
But whenever wealthy adds features, it is not clear how much is the market share in the company, including RBC, TD, BMO, CIBC, Scotiabank and National Bank.
Canadians are considered reluctant to move away from large banks – more than 90 percent of bank assets under six control management.
“Our biggest competition banks are,” Teshima said, but she said that it is the reason for thinking of the options, pointing to the results of a survey commissioned by Angus Reid, showing that a fourth of the respondents were dissatisfied with the current banking system, and 38 per cent consider leaving their banks in the last year.
He said that WealthSimple has already shown that it is possible for people to move their retirement accounts, some were doubting before.
“I think what we have shown is that with a lot of investment in technology and working to our customers, we make that process as comfortable as possible, and so we are taking a very similar approach with a checking account.”
He hopes that the strong demand for credit cards is rolling out in test stages compared to the previous year, as it is the most requested product requested by customers so far.
The company has shown that its joint expenses and savings accounts are also in demand, about a quarter of its customers have already signed up for one.
Activity in high-onion accounts rose in recent years as the rates started four percent, but Teshima says that there is still a demand with a decline in rates.
“There is a checking foundation, but then you can take it quickly where you want to get a high yield, the beauty of being like a platform simultaneously.”
