Canada is getting a new domestic bank to rival the big six
Canada is about to get a new bank, bringing more competition to the country’s financial sector.
Online investing firm Questrade Financial Group confirmed with Daily Hive on Tuesday that the Office of the Superintendent of Financial Institutions (OSFI) has approved its request to open Questbank.
“This is a monumental step in furthering our mission to help Canadians become much more financially successful and secure,” stated Edward Kholodenko, president and CEO of Questrade Financial Group.
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The Toronto-based company first applied for a Schedule I banking licence in 2019. This type of licence means Questbank will be a fully domestic bank and not affiliated with or a subsidiary of foreign institutions. It will be in the same class as Canada’s six major financial institutions — TD Bank, Royal Bank of Canada, CIBC, National Bank of Canada, Bank of Montreal, and Scotiabank.
“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,” added Kholodenko.
Questrade isn’t the only Canadian fintech company edging into the banking industry. Wealthsimple has also been expanding its services to include mortgages, credit cards and chequing accounts. Koho Financial is also in pursuit of a banking licence.
According to mortgage experts, Questbank’s launch could make way for possible mortgage expansions.
“Having its own bank gives Questrade greater control over funding costs and the ability to originate loans directly, a key advantage over fintech peers that must rely on partnerships with existing banks,” explained Canadian Mortgage Trends.
The discount brokerage plans to share more about Questbank and its products and services in the first half of 2026.
Questrade said it has experienced rapid growth, with assets surpassing $85 billion, after making strategic moves, including offering zero commission trading through its online brokerage.
The company has also seen an acceleration in trading volumes, increasing 350 per cent year-over-year.