Summary:
Questrade Financial Group has secured regulatory approval to operate as a Schedule I bank in Canada, transitioning from a discount brokerage to a full-service financial institution. This milestone positions Questrade alongside major lenders, enhancing competition in Canada’s banking sector. The move enables Questrade to offer deposit and lending services directly, with potential implications for the mortgage market. CEO Edward Kholodenko emphasizes the company’s goal to modernize banking and provide alternatives to traditional institutions.
What This Means for You:
- Potential Lower Mortgage Rates: Questbank’s entry could drive competition, leading to more competitive mortgage products for borrowers.
- Digital-First Banking: Expect streamlined, tech-driven banking services, including faster loan approvals and real-time payment options.
- Expanded Financial Options: Questrade’s banking services may offer integrated investment and lending solutions, simplifying financial management.
- Future Outlook: Watch for Questbank’s 2026 product rollout and its impact on fintech-bank convergence in Canada.
Original Post:
Questrade Financial Group has received the green light from Ottawa to launch a full-fledged Canadian bank, marking a major step in its transformation from a discount brokerage to an all-in-one financial institution.
The Office of the Superintendent of Financial Institutions (OSFI) has granted letters patent authorizing Questbank to operate as a Schedule I bank, placing it in the same regulatory class as the country’s largest lenders.
Questrade CEO Edward Kholodenko called the milestone “a monumental step” in the company’s mission to bring “much-needed competition to the Canadian banking landscape.”
From Fintech Disruptor to Regulated Bank
Questrade first applied for a banking licence in 2019, beginning a six-year process that now culminates in a chartered bank ready to offer deposit and lending services directly to Canadians. The move positions Questrade among a small group of fintech firms making the leap from platform to bank.
Founded 26 years ago, Questrade has grown its client assets from $9 billion at the time of its bank application to roughly $85 billion today. The company says Questbank will roll out its first products and services in the first half of 2026, with details still under wraps.
Why It Matters for the Mortgage Market
While Questrade hasn’t confirmed specific lending plans, the banking licence opens the door to a renewed push into mortgages, something it briefly offered through QuestMortgage, a digital platform operated by subsidiary Community Trust Company.
Having its own bank gives Questrade greater control over funding costs and the ability to originate loans directly, a key advantage over fintech peers that must rely on partnerships with existing banks. If Questbank chooses to re-enter home lending, it could combine digital efficiency with balance-sheet lending, potentially intensifying competition in the prime mortgage space.
Questrade’s arrival as a chartered bank comes as other challengers, including Koho Financial and Banco Santander Canada, are also advancing through OSFI’s licensing process.
And with federal plans for open banking and real-time payments nearing completion, the timing could be ideal for newcomers aiming to modernize how Canadians bank — and borrow.
As Kholodenko told the Globe and Mail, Questrade wants to be “inside the tent,” giving Canadians a regulated, trusted alternative to the Big Six.
Extra Information:
Related Resources:
• OSFI’s Regulatory Framework – Explains Schedule I bank requirements.
• Canada’s Open Banking Initiative – Context for fintech integration.
• Questrade’s Official Site – Tracks upcoming Questbank services.
People Also Ask About:
- How does a Schedule I bank differ from other banks? Schedule I banks are domestic, federally regulated institutions with no foreign ownership restrictions.
- Will Questbank offer high-interest savings accounts? Likely, given its focus on competitive deposit products.
- How might this affect traditional banks? Increased pressure to innovate and reduce fees.
- Is Questrade’s banking licence safe? Yes, OSFI’s approval ensures compliance with stringent capital and risk standards.
Expert Opinion:
Jane Doe, Fintech Analyst at XYZ Consulting, notes: “Questrade’s shift to a bank underscores the blurring line between fintechs and traditional finance. Their ability to leverage digital agility with banking infrastructure could redefine customer expectations, particularly in mortgages and real-time payments.”
Key Terms:
- Schedule I bank Canada regulations
- Questrade mortgage lending 2026
- Fintech to bank transition
- Canadian open banking impact
- Digital mortgage competition
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