CEO says they are working toward a full suite of services
Questrade Financial Group has received approval to launch a new bank in Canada, marking a significant expansion for the online trading platform.
The Office of the Superintendent of Financial Institutions approved the company to open Questbank, according to Questrade CEO and president Edward Kholodenko. The approval came after a six-year application process that began in 2019.
“We’re Canada’s newest bank today,” Kholodenko said. “So Happy Birthday to Questbank.”
According to a report from The Canadian Press, the company will not roll out new offerings immediately. Kholodenko said more details will be available in early 2026 but that Questrade is working toward a full suite of services. The company currently serves millions of Canadian customers and manages more than $85 billion in assets under administration.
Questbank will operate as a Schedule I bank, placing it in the same category as Canada’s six major institutions: Bank of Montreal, Scotiabank, CIBC, National Bank of Canada, Royal Bank of Canada, and TD Bank.
The approval comes as other fintech companies expand into banking services. Wealthsimple Inc. has grown its offerings to include chequing accounts, credit cards and mortgages, with assets under administration exceeding $100 billion. However, Wealthsimple operates through partnerships with established banks rather than holding its own licence.
Marius Zoican, an associate professor of finance and Canada research chair in financial technology at the University of Calgary’s Haskayne School of Business, noted in an interview with CBC News that Questrade’s bank status will provide more flexibility in offering services and potentially better rates than fintechs reliant on bank partners.
“[Customers] were stuck between these two worlds,” Zoican told CBC News. “And I think many people would like to have integrated services where they can deal with one institution.”
Kholodenko said the banking licence addresses Canadian reluctance to switching from major banks. “We firmly believe that Canadians need stability, and Canadians need to feel a sense of trust,” he said.
According to The Canadian Press, Spanish bank Santander also secured a licence in March and began offering guaranteed investment certificates in Canada on Monday. Koho Financial Inc. is working toward securing a bank licence.
