Canadian brokerage Questrade gets regulator's OK to open digital Questbank
By Nivedita Balu
Questrade Financial Group Inc has received a federal banking license from the Canadian banking regulator to launch digital bank Questbank, the Canadian brokerage firm said on Monday.
Toronto-based Questrade, a leading non-bank online brokerage with over C$85 billion ($60.61 billion) in assets, had applied for a banking license in 2019 to the Office of the Superintendent of Financial Institutions, the country's banking regulator.
Canada's banking space for years has been dominated by the big six banks, both for consumer and commercial products.
More recently, smaller online banks such as EQB's Equitable Bank and fintech firms such as Koho and Wealthsimple are gaining market share with lower fees.
Questrade has been granted its "Order of Commencement and Carrying on of Business" - the final regulatory approval of the banking licensing process - for Questbank, it said.
"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," Questrade CEO Edward Kholodenko said.
Questrade, which recorded a jump in trading volume benefiting from a volatile market, expects to share more on Questbank and planned banking products and services in the first half of 2026.
OSFI's superintendent Peter Routledge at an event in October said he is willing to be "a little bit less conservative" to increase competition in the sector.
"We need to do more to make it easier for competitors to enter the system... We can take some calculated risks to let new players come in and compete," he told reporters in October.
OSFI did not comment on Questrade's banking license.
Separately, Spanish bank Santander’s consumer banking unit in Canada, which got a license to operate earlier this year, has begun offering Guaranteed Investment Certificates.
The unit, Santander Consumer Bank, is expanding and diversifying its presence in Canada, where it already operates through its auto financing business.
($1 = 1.4024 Canadian dollars)