Questrade Receives Approval to Create Canada’s Newest Bank

However, the corporate is not going to be rolling out recent offerings immediately. Kholodenko said more details in regards to the upcoming events can be announced in the primary half of next 12 months, but that no categories have been ruled out yet. “We are working to provide a comprehensive range of services for Canadians.”

Fintechs strengthen their credibility through regulation

The move comes as other fintech corporations are making greater inroads into the banking space, including Wealthsimple Inc., which has expanded its offerings to checking accounts, bank cards and mortgages as its assets under management grow to greater than $100 billion.

Wealthsimple has grown through partnerships, including with established banks, to supply deposit insurance moderately than securing its own license, as CEO Michael Katchen has said repeatedly that he doesn’t imagine Canada needs one other bank. But Kholodenko said he believes the trail to regulation will help overcome the reluctance of some Canadians to maneuver away from the Big Six banks that dominate the sector.

“We strongly believe that Canadians need stability and need to feel a sense of trust,” he said. “A banking license gives us the opportunity to show Canadians that we are a properly regulated business and that you can trust us with your savings.”

Questrade is expanding its growing financial empire

The banking license complements Questrade’s broad offering, which already has a trust, wealth business, online brokerage business, in addition to its robo-advisory business and consumer lending, with combined assets under management of over $85 billion.

“We already serve millions of Canadians,” Kholodenko said. “And we believe we can do much more for Canadians with a banking offering.”

In April, the Spanish bank Santander also secured a license, but there was no mention of expansion plans. Koho Financial Inc. can also be working on obtaining a banking license.

Questrade’s banking license comes some 26 years after Kholodenko founded the corporate.

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Via Canadian Press

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