Questrade Financial Group, a popular online trading platform among Canadians, has announced its approval to establish a new bank in Canada. The Office of the Superintendent of Financial Institutions (OSFI), the federal regulator for financial institutions, has granted Questrade permission to launch Questbank after the company’s initial application for a bank license in 2019.
Edward Kholodenko, CEO and president of Questrade, expressed that this approval marks a significant milestone in their mission to enhance the financial success and security of Canadians. Kholodenko highlighted 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 disclosed, 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 Questbank in early 2026.
Questbank is set to operate as a Schedule I bank, a full-fledged domestic bank akin to Canada’s major financial institutions like Bank of Montreal, Scotiabank, CIBC, National Bank of Canada, Royal Bank of Canada, and TD Bank. This move aligns with a trend where fintech companies, including Wealthsimple Inc., are expanding into the banking sector, offering services like chequing accounts, credit cards, and mortgages.
Marius Zoican, an associate professor of finance at the University of Calgary’s Haskayne School of Business, noted that Questrade’s approach differs from Wealthsimple, which partners with Schedule I banks to provide services. With its standalone bank status, Questrade will have greater flexibility to offer services independently and potentially at more competitive rates compared to fintech firms reliant on bank partnerships.
Despite the competition, Zoican views the entry of new players like Questrade positively, as it offers Canadians the opportunity to streamline their financial activities within a single institution, eliminating the need to transfer funds between traditional banks and digital trading platforms. This development is particularly appealing to digitally savvy younger generations seeking integrated financial solutions.
