Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Digital, NEO, Open Banking, Open Finance
DPI Digital Finance Works. Why Is Canada Still Waiting?
Digital Finance Public Infrastructure Report | July 9, 2025
Image: Freepik/Rawpixel.com
Most Countries Have Adopted Digital Public Infrastructure. Where Does Canada Stand?
The Cambridge Centre for Alternative Finance (CCAF) just published a new report, "Digital Public Infrastructure (DPI) and Digital Financial Services" (69 page PDF) showing that 113 countries have adopted at least one DPI building block. Over half have adopted all three: digital identity, real-time payments, and consent-based data sharing. DPI is not just a policy trend. Countries with strong DPI systems result in much better financial inclusion outcomes. Canada, however, is still working on its foundational pieces.
What Is DPI and Why It Matters
According to the World Bank Group, DPI refers to digital systems like ID, payments, and data exchange platforms that support public and private services. These systems work best when they are (1) Interoperable, (2) Open for innovation, and (3) Designed for public benefit.
See: Will Competition Reforms Boost Fintech? Inside the Fight
According to the CCAF report, there are three core components of Digital Public Infrastructure:
- Digital Identity to prove who you are online and access services
- Real-Time Payments to send and receive money instantly
- Consent-Based Data Sharing to give users control over their financial data (aka, open banking/finance)
These systems help reduce fraud, speed up services, and lower costs for businesses and consumers. Most importantly, they help more people access the financial system.
DPI Adoption
The CCAF report shows clear adoption patterns with 113 jurisdictions having implemented at least one core DPI component, and 56 jurisdictions having adopted all three components. That includes countries with advanced economies and strong financial sectors, so they are relevant comparators for Canada such as:
- Australia
- Singapore
- Estonia
- Switzerland
See: Canada’s Productivity Depends on Intangible Tech Adoption
Other high-income countries, such as the United Kingdom and United States, are making progress but fall short of full DPI readiness due to gaps in national digital identity or regulated data sharing.
DPI Readiness - Canada vs Peer Jurisdictions
| Country | Digital Identity | Real-Time Payments | Consent-Based Data Sharing | Full DPI (All 3)? |
| Canada | ❌ No national ID | ❌ No live system | ❌ Proposed Consumer Driven Banking Act | ❌ |
| Australia | ✅ MyGov/MyID | ✅ NPP live | ✅ Consumer Data Right (CDR) | ✅ |
| Singapore | ✅ Singpass | ✅ PayNow | ✅ MAS APEX + open finance | ✅ |
| Estonia | ✅ e-ID/X-Road | ✅ SEPA Instant | ✅ Full integration | ✅ |
| Switzerland | ✅ e-ID live | ✅ SIC | ✅ I14Y platform | ✅ |
| UK | ❌ No national ID | ✅ FPS | ✅ Open Banking | ❌ |
| US | ❌ No national ID | ✅ FedNow | ❌ Market-driven only | ❌ |
How DPI Impacts Financial Inclusion
CCAF cross referenced data from the World Bank’s Global Findex to compare outcomes across countries. It grouped countries by how many DPI components they had in place.
See: Global Open Finance Lessons for Canada’s Rulebook
| Indicator | Countries with 1 DPI component | Countries with 3 components |
| Own a debit or credit card | 25% | 77% |
| Use digital payments | 45% | 83% |
| Borrow from formal institutions | 15% | 38% |
| Receive government transfers | 14% | 28% |
| Say lack of ID prevents account access | 19% | 7% |
| Find it very difficult to raise emergency funds | 34% | 19% |
The data-driven and outcome message is clear. More DPI means better access to financial tools and stronger financial resilience.
Where Canada Stands on DPI
According to the CCAF’s global DPI landscape, Canada is in the exploratory or early development stage across all three DPI pillars. Each area has seen policy activity, but none are fully operational, which NCFA agrees.
- Real-Time Payments - led by Payments Canada, Canada’s Real-Time Rail (RTR) initiative has faced repeated delays. As of July 2025, there is no real-time payment system available to the public.
- Digital Identity - While Canada has launched federal digital credentials pilots, Canada does not yet have a nationwide, interoperable digital identity framework. Adoption is fragmented.
See: The Crisis Canada and Fintech Can’t Afford to Waste
- Consent-Based Data Sharing - The proposed Consumer-Driven Banking Act, announced in 2023, outlines a path toward open banking. However, no implementation timeline has been met, and no system is in place. The Financial Consumer Agency of Canada has been named as the lead regulator.
“Planning status indicates that foundational DPI systems are under discussion or development but are not yet implemented at scale in a way that enables key financial use cases.”
Benefits of DPIs for Canadians
DPI is more than just government infrastructure. The report highlights that public-private partnerships are key to scaling systems that reduce onboarding costs, improve access to credit, and allow fintechs to innovate securely. Countries with strong DPI frameworks offer:
See: How Fintechs Are Tackling Financial Inclusion in Canada
- Faster user verification through eKYC
- Lower costs for payments and data services
- Stronger consumer protections tied to consent
Call to Action
It’s time for Canada to take action and build. No more delays. We cannot expect to maintain our quality of life or Canada’s global economic position without bold steps forward. Digital public infrastructure is no longer optional. It's foundational and without DPI, Canada’s fintech sector remains limited in how it can compete, scale, or serve excluded groups.
Moving from strategy to execution is the only way to close the gap. Without it, the country risks falling further behind. It is a public good that lifts access, speeds services, and builds trust. Countries that move fast, collaborate across regulators, industry, and communities are seeing real results. Canada has the policy tools, the tech capacity, and the industry support to do the same. But time is running out to catch up.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Globalive Completes WealthONE Bank Acquisition
M&A | July 7, 2025
Imgae: Freepik
Canada’s First Fintech-led Takeover of a Schedule I Bank Marks a Change in Ownership Policy
The acquisition of WealthONE Bank of Canada by Globalive and its Canadian investment partners has officially closed, following federal government approval on June 18, 2025. Establishing a precedent, it's the first time a non-bank, fintech-aligned private investor group has successfully taken control of a Schedule I chartered bank in Canada.
See: Ripple Seeks US Bank Charter for Stablecoin Expansion
The deal follows a two-year national security review under the Investment Canada Act, which required WealthONE’s former owners to divest due to foreign influence concerns. WealthONE had previously faced scrutiny over ties to China-based investors, prompting a 2023 directive from Ottawa to restructure ownership.
Key Deal Terms, Ownership and Timeline
Globallive led by Anthony Lacavera (telcom and fintech entrepreneur) now owns 65% of WealthONE’s equity. The remaining 35% is held by a group of Canadian investors whose names have not been disclosed publicly. According to Bloomberg, the full acquisition was valued at approximately $58 million CAD, and covers all issued and outstanding shares of WealthONE and includes a commitment by the buyers to inject new capital to support the bank’s next phase of growth.
- 2023: Government of Canada orders WealthONE’s former owners to divest due to national security concerns
- April 2024: Globalive enters formal agreement to acquire WealthONE
- June 18, 2025: Deal receives official federal approval
- July 7, 2025: Acquisition is finalized and announced publicly
The transaction was reviewed by multiple federal departments and found to meet requirements for Canadian control, transparency, and risk mitigation. Worth noting that the Competition Bureau previously cleared the acquisition in advance of the final approval.
See: Open Banking Delayed But Back in the Legislative Radar
WealthONE will continue to operate independently under its current federal Schedule I charter. Its current CEO, Paul Leonard, will remain in place and work with Globalive to expand products and reach more customers in underserved market segments.
Business Focus and Strategic Expansion
WealthONE was founded in 2016 and currently manages approximately $516 million CAD in assets. The bank focuses on customers often excluded from traditional financial institutions, including newcomers, immigrants, self-employed professionals, and small business owners.
In the months leading up to the acquisition, WealthONE introduced a cloud-based digital onboarding platform that supports accounts such as TFSAs, GICs, and high-interest savings.
According to AINVEST, Globalive intends to scale WealthONE’s operations to reach between $750 -$800 million CAD in assets by streamlining operations, modern digital services, and lean risk-adjusted lending models.
Implications for Canada’s Fintech and Banking Sector
Globalive's acquisition of WealthONE demonstrates how new non-bank players can enter Canada’s banking system. Instead of applying for a new banking license, fintechs and private investors now have a verified path of entering the market via acquisition of existing chartered institutions. The WealthONE deal sets precedent that private capital can take control of federally regulated banks (as long as there aren't any national security concerns).
See: RBC and Cohere Partner on ‘North for Banking’ AI Platform
For fintech founders, challenger banks, and digital lenders, it creates an opportunity to scale into deposit-taking and lending under an existing charter, without having to go through the arduous process of applying for a new banking license which will likely take a minimum of 5 years, just ask Santander.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Ripple Seeks US Bank Charter for Stablecoin Expansion
Crypto Banking | July 7, 2025
Ripple Moves to Become a Federally Regulated Bank to Expand its Payments and Custody Business
Ripple has officially applied for a national bank charter from the US Office of the Comptroller of the Currency (OCC). The company is also seeking a Federal Reserve master account to support direct access to US payment rails.
See: Grayscale ETF Wins SEC Approval for 5 Crypto Assets
CEO Brad Garlinghouse confirmed the news on X:
True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market.
Earlier in the week via… https://t.co/IdiR7x3eWZ
— Brad Garlinghouse (@bgarlinghouse) July 2, 2025
Ripple Wants to Settle Payments Directly With the Fed
If approved, Ripple would bypass correspondent banks by settling payments directly with the Fed and holding dollar reserves without intermediaries. This is designed to support Ripple’s push to offer a compliant, enterprise-grade stablecoin and accelerate global payments. These objectives align with new federal rules proposed under the GENIUS Act, which sets clear reserve and disclosure standards for stablecoin issuers.
Ripple’s approach mirrors that of Anchorage Digital and Circle, which operate under national trust bank charters regulated by the OCC. Ripple may use its regulated subsidiary, Standard Custody & Trust, to separate digital asset exposure from its core balance sheet. This structure could help the firm meet Basel III capital requirements by keeping volatile assets like XRP off its banking books.
Following the announcement, XRP surged above $2.28 as trading volume spiked. Analysts said the rally was driven by rising confidence that Ripple’s regulatory strategy will boost its long-term institutional credibility.
Why This Matters for Fintech and Regulation
If Ripple is granted the charter and Fed account, it will become one of the few crypto-native firms operating fully within the traditional banking system. It's a significant and growing trend among major fintechs like Circle, Wise, and others seeking deeper integration with regulated payment rails. For Canadian fintechs and regulators, Ripple’s move could accelerate the need to clarify stablecoin policy, custody standards, and access to domestic settlement infrastructure. Regulatory certainty is a competitive advantage today and quickly becoming the norm.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Honouring Andrew Moor’s Innovation Legacy
Banking | June 25, 2025
Andrew Moor’s Leadership Helped Shape Modern Banking in Canada
The National Crowdfunding & Fintech Association of Canada (NCFA) is deeply saddened by the sudden passing of Andrew Moor, President and CEO of Equitable Bank, (EQB) over the weekend of June 21–22, 2025 per the Financial post. Moor was a bold and thoughtful leader who believed in making Canada’s financial system more innovative, digital, and inclusive.
See: Why Canada must be open to open banking
As CEO since 2009, Moor led Equitable Bank’s transformation into a technology-forward institution known for its direct-to-consumer offerings and fintech partnerships. EQ Bank, the digital arm of Equitable, became one of Canada’s most trusted alternatives to traditional banking under his leadership. His forward-looking vision earned admiration across the financial sector, including from those of us at NCFA.
A Builder of Progress, Not Just Institutions
Moor supported open banking frameworks, digital infrastructure reform, and meaningful collaborations between regulated banks and emerging fintechs. He served on the board of the Canadian Bankers Association and consistently advocated for innovation that benefits Canadian consumers.
His leadership helped create new paths for collaboration between incumbents and innovators, something that NCFA has long supported.
Closing
Andrew Moor’s contributions advanced financial innovation in Canada. His sudden passing is a loss to all who care about the future of finance, technology, and inclusion. NCFA extends heartfelt condolences to his family, colleagues, and the entire team at EQB.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Made in China Trump Mobile Is a Fintech Bundling Play
Fintech | June 18, 2025
Image courtesy of Trump Mobile website
Trump Mobile is a Bundled Fintech Strategy Targeting Niche Consumers
On June 18, 2025, Fortune reported that Trump Mobile is entering the U.S. wireless market with a $47.45 per month prepaid plan and a smartphone built by Chinese device maker Unihertz. Beyond the political optics, the announcement is interesting from a fintech perspective since Trump Mobile plans to use a telecom backbone to bundle lifestyle services in a way that mirrors embedded finance strategies seen in a variety of global fintech ecosystems.
See: Trump Media’s Patriot Economy Expands into Fintech
The T1 smartphone is priced at $499 with a $100 down payment, and is scheduled to ship in late summer 2025. Trump Mobile is powered by Patriot Mobile, an MVNO that leases infrastructure from existing carriers. The business model relies on branding and licensing rather than owning physical networks. This setup closely resembles the way fintechs white label financial infrastructure through APIs and software platforms.
Eric Trump, EVP Trump Organization on Trump Media:
“I'm incredibly excited to step into this new digital space, hard-working Americans deserve a wireless service that's affordable, reflects their values, and delivers reliable quality they can count on. We're especially proud to offer free long-distance calling to our military members and their families — because those serving overseas should always be able to stay connected to the people they love back home. ”
47 Plan Includes Telecom and Embedded Services
The flagship product is the “47 Plan” offered at $47.45 per month. According to Trump Mobile’s website, it includes unlimited talk, text, and data, plus international calling. The bundled services also include 24/7 telehealth access and roadside assistance, which are traditionally sold separately or through insurance providers. Packaging them into a single mobile bill is a similar approach of fintech super apps.
See: Does CUSMA Support Fintech Services Across Borders?
The T1 phone has midrange specs: a 6.8-inch AMOLED 120 Hz screen, 12 GB RAM, 256 GB storage, a 50 MP triple camera setup, Android 15, a 5,000 mAh battery with 20 W fast charging, USB-C, a headphone jack, and biometric unlocking. The phone is manufactured by Unihertz in China, despite political framing that implied U.S. manufacturing. It unveils global hardware supplier realities that fintechs face when bringing physical devices to market.
Licensing Mirrors Fintech Platform Strategies
According to The Wall Street Journal, the Trump family licenses its name to Patriot Mobile, which operates the network. This approach is similar to how fintech startups offer debit cards, wallets, and investment tools without becoming licensed financial institutions. The infrastructure is external, but the customer relationship is owned by the brand.
There is also a digital asset component. Reuters reported that Trump Media is applying for a cryptocurrency ETF made up of 75% Bitcoin and 25% Ethereum. Even though the potential crypto ETF isn't directly tied to the phone plan just yet, it highlights the Trump brand's ambition to combine lifestyle, media, and financial products.
Tariffs on a Trump's Chinese Made Phone
Ironic as you get that earlier in 2025, the Trump administration slapped a raft of reciprocal tariffs, including a baseline 20% tariff on Chinese-made consumer electronics. According to Al Jazeera, the administration later exempted certain chips and phones but it's unknown which specific products currently qualify. If the T1 is subject to tariffs, the cost could be absorbed by Unihertz, passed to Patriot Mobile, or used to justify higher retail pricing.
What Canadian Fintechs and Policymakers Can Learn
Trump Mobile offers a live case study in how embedded services can be sold through telecom. For Canadian fintechs, it opens a conversation about how telcos and startups might partner to deliver subscription-based insurance, health care, or financial tools to underserved communities. Packaging multiple services into a mobile plan can improve customer stickiness, adding to predictable revenue, as also seen in bundled offerings by Koho, Neo, and other Canadian fintechs.
See: Robinhood’s WealthTech Push and Lifestyle Finance
There should be policy concerns however, with potential conflicts of interest involving Trump's family ties to regulatory agencies. Also combining telco infrastructure with consumer finance triggers questions around cross-sector regulation, as regulators will need to consider the risks of a converging telco-fintech model as it grows.
In Conclusion
For NCFA members, this launch offers insight into how bundled, cross-platform models can scale quickly with the right partnerships. As Canada expands open banking and explores new models of service delivery in underserved markets, this example shows how telecom-fintech convergence could work, assuming regulators allow it.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Open Banking Delayed But Back in the Legislative Radar
Open Banking | June 17, 2025
Federal Government Recommits to Open Banking Legislation at 'Earliest Opportunity'
Today at Toronto's Open Banking Expo, the Canadian federal government says they will introduce the long delayed open banking legislation 'at the earliest opportunity'. The Financial Consumer Agency of Canada (FCAC) responsible for implementing and regulating Open Banking in Canada confirmed that Ottawa remains committed to building the infrastructure for consumer-driven banking, despite momentum stalling after a Spring without a federal budget or any kind of legislative update.
Secure Data Sharing, No More Screen Scraping
Open banking allows Canadians to securely share their financial data with apps and services outside their traditional banks. Instead of screen scraping which is a risky process where users give third parties their login credentials for use on their behalf, open banking would give users a more control over what data is shared, with whom, and for how long.
Key Elements Still Missing
In December 2024, Canada announced that open banking would be delayed until 2026. Now, according to the Department of Finance, the remaining parts of Canada's Open Banking Framework will be introduced as soon as possible (not a specific date or deadline). This includes the process for accrediting service providers, establishing common rules for data access, and creating a public registry.
The FCAC is preparing the groundwork by developing a public registry of accredited fintech firms and collaborating with Finance Canada to finalize operating rules, but let's be honest here. Without the final legislation, the FCAC is limited in what it can do.
See: Open Banking: Revolutionizing Financial Data Sharing
While Prime Minister Mark Carney and the Liberals returned with a minority government, open banking unfortunately wasn't included in the party's platform, and given the delays following the Spring 2025 election and absence of a Spring budget, more delays were expected despite advocates remaining optimistic given the change in Canada's leadership and need to improve productivity and economic strength.
NCFA Urges Government to Complete the Framework
The National Crowdfunding & Fintech Association of Canada (NCFA) believes that consumer-driven finance is a key milestone for driving innovation, competition, and financial inclusion in financial services. NCFA's Executive Director/CEO, Craig Asano said:
“Consumer-driven banking is not just a policy item, it’s critical infrastructure for unlocking productivity and creating an ecosystem that works better for consumers and fintech innovators. Canada cannot afford another year of delay.”
While some fintechs and financial institutions have gone ahead and prepared for open banking the best they can ahead of final legislation, others are waiting for clarity from the Canadian government before moving forward, especially considering there have been many years of delay.
Conclusion
Open Banking could transform Canada's financial sector, making it easier for consumers to access improved products and services. It would also improve competition by enabling qualifying fintech firms to connect directly to consumer data in a secure and regulated way.
See: Are Finfluencers in Trouble or Just Getting Regulated?
However, simply saying that Open Banking will be implemented 'as soon as possible' without committing to a specific date, Canada continues to fall behind other jurisdictions of its peers.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Wealthsimple Aims at Banks With New Credit and Loan Tools
Fintech Product Launch | June 12, 2025
Image: Wealthsimple Presents: The End of Banking (WS Newsroom)
Fintech Wealthsimple Rivals Big Banks with 2% Cashback Credit Card Launch and Low Interest Line of Credit
On June 11, 2025, Wealthsimple hosted their first 'Wealthsimple Presents: The End of Banking?" public event in Toronto where they announced the launch of two new financial products that will compete head-on with Canada's largest banks and financial institutions. (1) No fee 2% cashback credit card; and (2) Instant access low rate line of credit starting as low as 4.45%.
These offerings are for anyone who is currently paying banks and credit card companies higher interest rates and fees for the same services, and everything is online and available without having to visit a physical branch. This is healthy competition that will only benefit consumers, and the Canadian government and regulators should take notice.
See: Wealthsimple’s 10th Anniversary and Path to $1 Trillion AUM
The company also highlighted a series of upgrades to its hybrid chequing/spending account and teased new cash delivery pilots that could soon offer same day cash drop-offs to users' doorsteps.
Michael Katchen, Co-founder and CEO of Wealthsimple:
“Canadians don’t need another bank. They need something better. We’re removing friction, fees, and outdated experiences.”
A Credit Card With 2% Cashback and Zero FX Fees
The new Wealthsimple credit card is the most requested product in the company’s history. It offers:
- 2% unlimited cashback on all purchases
- No FX fees, eliminating the typical 2.5% foreign transaction cost charged by most banks
See: KOHO Launches Low Cost Global Money Transfer Service
- No monthly fee for clients with $100,000+ in assets or $4,000+ in direct deposits; $10/month otherwise
- Instant card management features, including card locking and spend controls in the app
Sam Newman-Bremang, Senior Product Director at Wealthsimple:
“This isn’t just another credit card, it’s the one Canadians have been asking for. As the most requested product in our history, it’s clear people want a smarter and more rewarding way to use credit. So that’s what we built: a card that puts humans first, with unlimited cashback, no foreign transaction fees, and no hidden charges.”
A Flexible New Line of Credit Backed by Assets
Wealthsimple will also roll out a line of credit product by the end of 2025 with rates starting at 4.45%, depending on collateral and client profile. The current Bank of Canada prime rate is 4.95% source, which means Wealthsimple’s offering could undercut many traditional unsecured personal loan products, such as unsecured credit card APRs (20-24%+) or home equity LOC rates (typically 5.5-5.7%).
Unlike typical credit lines, Wealthsimple clients will be able to use their investment or chequing balances at Wealthsimple as collateral, enabling lower risk and faster approval.
See: Can Fintechs Win in a High-Interest Rate World?
Plus, because Wealthsimple is not a federally regulated bank, it partners with 10 Canadian banks to hold deposits and qualify customers for up to $1 million in CDIC protection, which is much more than the standard $100,000 protection one would get by banking at a single institution.
Expanding Banking Features Without a Banking License
Wealthsimple now offers a type of chequing account that pays 2.75% interest, 1% cashback on debit purchases, no monthly fees, and no ATM or FX fees. Over one million clients or approx 33% of Wealthsimple’s user base has already adopted the spending account.
The company estimates that in 2024, its users saved more than $100 million in fees they would have paid to traditional banks source.
Recent additions include:
- Mobile cheque deposit
- Wire transfers and bank drafts
- Cheque delivery through app interface
- Pilot cash delivery service in Toronto, with potential USD delivery coming soon
Growing Dissatisfaction with Canada’s Big Banks
See: Where the Gaps Are: Fintech Insights from FCA Data
Wealthsimple’s growth strategy is grounded in public dissatisfaction with incumbent financial institutions. In a 2025 Angus Reid survey commissioned by Wealthsimple:
- 25% of Canadians said they are dissatisfied with their current financial institution
- 38% said they considered switching banks in the past year
- 47% cited hidden fees, 37% poor customer service, and 36% lack of better offers as reasons
Despite this, the Big Six banks still dominate with over 90% of banking assets under management in Canada. But no doubt that Wealthsimple is on a growth pathway that will chip away at the bank's dominant share by competing with seamless design, lower fees, higher yielding accounts and integrated financial tools built for mobile first customers.
Outlook
Canada's fintech sector continues to face significant barriers to scale, including regulatory delays around open banking and digital ID. Despite that, leading scale-up fintechs like Wealthsimple are demonstrating how digital platforms can expand their value propositions without becoming a formal bank or acquiring a banking license.
See: OSFI Approves Santander for Canadian Banking License
Its model has scaled without a banking licence by partnering with regulated banks and embedding services within a single mobile platform. Wealthsimple now has over 3 million clients and manages over $70 billion in assets, up from $18 billion in 2021. If/when opening banking arrives in Canada, platforms that blend investments, borrowing, payments on a single interface will be game-changing for Canada's financial economy.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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