Questrade Financial Group has received approval from Ottawa to form a full-fledged Canadian bank, marking an important step in its transformation from a discount brokerage to an integrated financial institution.
The Office of the Superintendent of Financial Institutions (OSFI) has granted Questbank a charter to operate as a Schedule I bank, putting it in the same regulatory category as the country’s largest banks.
Questrade CEO Edward Kholodenko called the milestone a “monumental step” in the company’s mission to “bring much-needed competition to the Canadian banking industry.”
From fintech disruptor to regulated bank
Questrade first applied for a banking license in 2019, beginning a six-year process that now culminates in becoming a chartered bank ready to provide deposits and loans directly to Canadians. The move puts Cathay Securities among a small group of fintech companies making the leap from platform to bank.
Questrade was founded 26 years ago and its client assets have grown from $9 billion when it applied to the bank to about $85 billion today. Questbank will launch its first products and services in the first half of 2026, the company said, with details remaining confidential.
Why it matters to the mortgage market
While Questrade has not confirmed specific lending plans, the banking license opens the door to a renewed push into mortgage lending, which the company briefly offered through QuestMortgage, a digital platform operated by subsidiary Community Trust Company.
Having its own bank gives Catal Securities better control over funding costs and the ability to originate loans directly, a key advantage over fintech peers who must rely on partnerships with existing banks. If Questbank chooses to re-enter home lending, it could combine digital efficiencies with balance sheet lending, potentially increasing competition in the prime mortgage space.
Questrade becoming a chartered bank comes as other challengers such as Koho Financial and Banco Santander Canada are also progressing through OSFI’s licensing process.
With federal plans for open banking and real-time payments nearing completion, the timing could be ideal for newcomers aiming to modernize the way Canada banks and borrows money.
As Holodenko said globe and mailCatal Securities hopes to get “inside the tent” and provide Canadians with a regulated, trustworthy alternative to the Big Six banks.
Visited 6 times, visited 6 times today
Santander Bank of Canada Community Trust Edward Kholodenko Koho Financial Open Banking Questrade Financial Group Live Payments Schedule 1 Bank
Last modified: November 5, 2025
