In a decisive shift beyond its investment roots, Wealthsimple has launched a suite of retail banking products—credit cards, personal loans, and even cheque services—positioning itself in direct competition with Canada’s banking giants. The Toronto-based fintech, which has grown rapidly on the strength of its user-friendly investing tools, is now taking on the full-service financial model traditionally dominated by the country’s Big Six banks.
The move is a milestone for Wealthsimple as it transforms into a comprehensive financial services provider. Speaking to The Logic, senior product director Sam Newman-Bremang framed the expansion as an effort to become clients’ “primary financial relationship.” While the company does not plan to pursue a banking license, it intends to undercut competitors on fees and user experience.
New Product Suite Targets Everyday Banking
Wealthsimple’s newly launched offerings include no-fee credit cards, personal loans, and cheque-writing capabilities—services that go far beyond its original investment platform. The company promises free ATM withdrawals, no foreign exchange fees, and other user-focused perks designed to win over clients frustrated with traditional banks’ costs.
CEO Michael Katchen
“We’re stepping into this phase where we’re confident that we can build the whole suite of services,” said Newman-Bremang.
The fintech’s strategic bet is that integrating these banking tools with its investment platform will deepen customer engagement and encourage greater use of its core wealth management products.
Taking on a Concentrated Banking Sector
Canada’s banking system remains one of the most concentrated in the industrialized world. The six largest lenders—RBC, TD, BMO, CIBC, Scotiabank, and National Bank—control 93% of the country’s banking assets. By contrast, Wealthsimple currently manages approximately $70 billion in client assets, compared to $1.4 trillion managed by RBC alone.
Despite the gap, Wealthsimple’s growth is accelerating. Its client assets have surged from $50 billion in September 2024, and its latest valuation stands at $5 billion. While still far smaller than the major banks, the firm’s trajectory mirrors that of EQ Bank, Canada’s seventh-largest bank with $74 billion in assets.
Leaner, Partner-Less Approach
Wealthsimple’s entrance into banking services is distinguished by its relatively independent approach. The company is issuing its new credit card itself—a first for a non-bank entity in Canada—and underwriting its own loan products, although it is working with partner banks to fund those loans. Unlike many fintechs that rely heavily on external partners, Wealthsimple aims for tighter integration and direct client relationships.
Still, because it lacks a banking license, Wealthsimple cannot lend out customer deposits—one of the key revenue streams for banks. Instead, deposits in its chequing account product are held by partner banks and remain eligible for protection through the Canada Deposit Insurance Corporation.
The company’s primary monetization strategy isn’t based on traditional banking revenues. Instead, it is betting that the convenience of its ecosystem—where banking and investing coexist—will encourage users to expand their engagement and invest more through Wealthsimple’s platform.
Yesterday, we dropped some big updates at our first #WealthsimplePresents event: The End of Banking?
From rethinking the way you spend and save to making it easier to grow your money, this is just the beginning.
Catch up on some of our updates below 🧵
Want to watch the full… pic.twitter.com/HKrozUC26s
— Wealthsimple (@Wealthsimple) June 12, 2025
Rising Competition in Fintech
Wealthsimple is not alone in its ambitions. Other Canadian fintechs such as Neo Financial and Koho are also offering services traditionally reserved for banks. Neo has launched credit cards, chequing-style accounts, and mortgages, while Koho recently introduced personal lines of credit through a partnership with Propel.
Despite these developments, Canada’s major banks still dominate. According to a 2024 report from the Canadian Bankers Association, the concentration of banking assets is not unusual by international standards. The report also claims that more than half of Canadian customers either don’t pay service fees or have them waived.
However, a contrasting report by Alberta-based consultancy North Economics found that Canadians could save as much as $8.5 billion annually in fees if there were stronger competition in the sector—underscoring the disruptive potential of firms like Wealthsimple.
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Fintech with a Long-Term Vision
Newman-Bremang emphasized that Wealthsimple’s entry into banking is not a short-term profit play, but a long-term ecosystem strategy. “We’re building [banking services] into the whole ecosystem,” he said. “We can think about the banking experience as a way to accelerate the investing relationship.”
While the company has no immediate plans to become a bank, its expanding reach into Canadians’ financial lives may blur the line between fintech and full-service financial institution.
As Wealthsimple adds yet another layer to its product portfolio, the battle for Canada’s financial future is increasingly being waged not just in corporate boardrooms—but on the mobile apps of millions of Canadians.
