Questrade secured a full banking licence, promising more competition and digital-first options for Canadians
Questrade Financial Group got the green light from the Office of the Superintendent of Financial Institutions (OSFI) to launch Questbank, capping off its 26-year journey from online brokerage to full-service financial player.
With this approval, Questrade becomes a Schedule I bank, stepping into the same league as Canada’s biggest lenders and bringing fresh competition to a market long led by the Big Six.
“We think that there is a need to serve Canadians much better. There is room for a new kind of bank and a new kind of player in the bank space,” Edward Kholodenko, Questrade’s chief executive officer, said.
“We chose to get regulated and be inside the tent because it’s important for Canadians to deal with a regulated institution directly and understand where their money is being kept.”
Questrade’s journey to bank status began in 2019, when it first applied for the licence. Since then, the company has grown its assets under administration from $9 billion to over $85 billion, serving millions of Canadians through its online brokerage, robo-advisory, and consumer lending arms.
The company expects to unveil its suite of banking products and services in the first half of 2026.
Questrade’s entry comes at a time when other fintechs are also pushing deeper into banking. Wealthsimple, for example, has expanded into chequing accounts, credit cards, and mortgages by partnering with existing banks, rather than securing its own licence.
Meanwhile, Koho Financial is also in the process of seeking a banking licence, and Spanish lender Banco Santander recently received OSFI approval, underscoring the sector’s growing dynamism.
Regulators have signaled a shift in tone. OSFI’s Peter Routledge recently acknowledged that a “cautious approach to the sector had hindered competitiveness,” while Bank of Canada’s Carolyn Rogers called Canada’s banking system “an oligopoly” and urged policymakers to “lean into” competition for the sake of productivity and innovation.
The timing of Questrade’s approval coincides with anticipated reforms such as Real-Time Rail (RTR) and open banking, which promise to modernize payments and give consumers more control over their data.
Meanwhile, the challenge for new entrants will be to win over Canadians who have long relied on established banks for stability and trust.
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