Questrade gets approval to launch a bank in Canada
Questrade Financial Group, best known among Canadians as an online trading platform, says it has received approval to launch a new bank in Canada.
The company said it has received approval to open QuestBank from the Office of the Superintendent of Financial Institutions (OSFI), the federal regulator for financial institutions.
According to Edward Kholodenko, CEO and President of Questrade, approval took several years. company applied first For bank license in 2019.
Kholodenko said in a statement, “This is an important step forward in furthering our mission of helping Canadians become more financially successful and secure. Following the successful path forged over Questrade’s 26-year history, we are thrilled to expand our offering to introduce much-needed competition into the Canadian banking landscape.”
Kholodenko says that while he’s not ready to share details yet, Questrade will be working toward a whole suite of services for his bank. The company, which has millions of Canadian customers, hopes to have more details to share in early 2026.
According to a Statistics Canada and TD Bank survey, Gen Z is proving to be more financially active than previous generations and are diving into investing through RRSPs and TFSAs, often thanks to influencers making finance more digestible.
Questbank will be one Schedule I Bank – A wholly domestic bank, rather than a subsidiary of a foreign one, in the same class as Canada’s six major institutions (Bank of Montreal, Scotiabank, CIBC, National Bank of Canada, Royal Bank of Canada and TD Bank).
The move comes as other fintech companies are also moving more into the banking space, most notably Wealthsimple Inc., which has been steadily expanding its offerings that now include checking accounts, credit cards and mortgages.
However, Questrade’s move is a little different, according to Marius Zoican, associate professor of finance at the University of Calgary’s Haskayne School of Business and Canada Research Chair in Financial Technology. Wealthsimple is not a bank itself, but provides financial services through Partnership with Schedule I banks And making full use of their banking capabilities, he said.
by banningAccording to Zoican, as per the situation, Questrade will have more flexibility to provide the services it wants and possibly at better rates than fintechs that rely on bank partners. Wealthsimple may benefit to some extent because it is able to offer banking services sooner through the partnership, he said.
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Despite this, Zoican says the additional competition in the banking sector is a good thing – as is the opportunity for Canadians to streamline their finances, rather than keeping their money in the big six banks and transferring it to a digital trading platform like Questrade to invest.
“(Customers) were stuck between these two worlds. And I think a lot of people want integrated services where they can deal with one institution, they can (easily) move money from checking and savings into investments,” Zoican said. “I think this, especially for the younger generation who is digital first… is a very welcome development.”
