Online investing company Questrade Financial Group confirmed that Questbank received approval from Office of the Superintendent of Financial Institutions (OSFI) to open as a full-fledged domestic bank.
A New Player Enters the Market
Questrade, long known for online brokerage services, now aims to transform into a federally chartered bank.
With OSFI approval in hand, Questbank will target retail banking, savings accounts and digital services—not just investing. The firm says it wants to offer “more choice and competition” to Canadian consumers.
What It Means for Canadian Consumers
For everyday Canadians, a new bank could mean better rates, fewer fees and improved digital services. Traditional banks may feel pressure to innovate and pass on benefits.
If Questbank follows through, customers might see tighter spreads on savings and more flexible product offers.
Banking Sector Impacts and Competition
A fresh entrant challenges incumbents. Canada’s Big Six (including Royal Bank of Canada, Bank of Nova Scotia and Toronto‑Dominion Bank) dominate market share.
Industry watchers say new competition could spark a wave of digital-only service launches, better customer terms and perhaps branch closures among legacy players.
Regulatory and Risk Considerations
OSFI’s standards remain strict. Questbank must meet capital requirements, cybersecurity rules and consumer-protection regulations.
Analysts caution any new bank must manage risk carefully—especially since previous digital-only banks globally have struggled during economic downturns.
Questrade expects Questbank to launch consumer banking in late 2026 after regulatory licensing, IT build-out and marketing.
The firm will need to attract deposits, build trust and navigate a Canadian banking system known for stability. Observers will watch service roll-out, fee structures and customer adoption metrics.
