Questrade Financial Group has gained a federal banking licence from the Canadian banking regulator, launching Questbank.
Questrade is a Canada-based non-bank online brokerage, having more than USD 60.61 billion in assets. The company applied for a banking licence back in 2019 to the Office of the Superintendent of Financial Institutions (OSFI), the country's banking regulator.
Canada’s banking market and Questrade’s entrance
Canada’s banking sector has long been dominated by six banks for consumer and commercial solutions. However, smaller online banks like EQB's Equitable Bank and fintech firms such as Koho and Wealthsimple are gaining traction due to their lower fees. Questrade expressed positive feelings regarding its offer expansion and the introduction of a bank that can compete with the current Canadian banking landscape, following 26 years of operating in the country.
The company was granted its Order of Commencement and Carrying on of Business, the final regulatory approval it needed to complete the banking licensing process, according to the press release. The company recorded high trading volume, benefiting from a volatile market, and it expects to share more on Questbank in H1 2026, including banking products and services plans.
OSFI mentioned that it is willing to make changes to increase competition in the sector, making it easier for smaller banks to enter the system. The regulator aims to take calculated risks to let new players compete. OSFI did not comment further on the matter or Questrade's banking license.
Canada’s banking sector is concentrated, with Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Scotiabank, Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC) holding approximately 85% of total banking assets. This has made it difficult for foreign or smaller banks to enter the market. HSBC, previously one of the largest international banks operating in Canada, accounted for only about 2% of the country’s total banking assets before its acquisition by RBC in 2023.
