Karsten Wenzlaff, Advisor
August 26th, 2025
Digital Banking | Nov 5, 2025

Image: Freepik/vectorpocket
On November 4, 2025, Tangerine Bank announced a 10-year partnership with UK Fintech, Engine by Starling to deliver a next generation digital banking platform for more than two million Canadians. The agreement marks Engine’s first North American deployment, and for Tangerine, a commitment towards faster, cloud-based innovation.
For Canada and the buy Canadian movement, it's a reminder of the importance of building homegrown fintech infrastructure that can compete globally.
Tangerine chose Engine by Starling (part of the UK’s Starling Group) to provide a cloud-based, API-powered banking platform that includes digital onboarding, chequing and savings accounts, payments, and spending insights. The company already supports banks in Europe and Australia. By adopting Engine's platform solution, Tangerine is upgrading its technology foundation to deliver quicker feature rollouts, smoother operations, and better digital experiences for clients.
Engine’s expansion into North America has been steady. The company took part in the Grow London Global Fintech Trade Mission to North America 2025, which visited Toronto and New York in mid-October. The mission brought together sixteen UK fintechs to meet with banks, investors, and ecosystem partners, helping build connections that may have opened doors for the Tangerine partnership announced just weeks later.
Canada has a strong and growing community of fintech infrastructure firms such as VoPay, Fintel Connect, and Zevoy Canada that are developing payments, data, and Banking-as-a-Service platforms. What remains a challenge is scale. Few Canadian providers have reached the same visibility or size as the international players that dominate large transformation projects. More partnerships and work has to be done for domestic financial tech firms to capture these opportunities.
The Tangerine–Engine deal proves that if Canadian fintechs have the right mix of support, capital, and partnerships, they can compete similarly in global markets. It’s a chance for Canada’s policymakers, investors, and banks to create more conditions that help local technology providers grow into global suppliers of digital infrastructure.
While it's great for millions of Canadians that Tangerine's upgrade will provide a faster and more modern digital banking experience, it highlights gaps and opportunities for growth in Canada's fintech ecosystem.
Innovation is a global game for many fintechs and strengthening Canada’s fintech infrastructure will help ensure that the next digital banking platform upgrade has 'built in Canada' digitally printed on 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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Banking Regulation | Nov 4, 2025

On November 3, 2025, Questrade officially entered the banking sector. The company received federal approval from the Office of the Superintendent of Financial Institutions to open Questbank, one of the few new Schedule I banks authorized in Canada in the past two decades. The approval was confirmed through the Canada Gazette publication of Questbank incorporation.
This is significant as Questrade evolves from an investment brokerage into a full service digital bank. It adds a new competitor to a market long dominated by Canada’s largest institutions and will hopefully advance innovation, inclusion, and national competitiveness in the country.
After six years of preparation, OSFI approved Questrade’s bank license on November 3 2025, granting an Order of Commencement and Carrying on of Business under the Bank Act. The approval allows Questbank to accept deposits and issue loans under federal oversight.
The decision aligns with priorities set out in the OSFI Strategic Plan 2024–2027, which focuses on stability and responsible modernization. Licensing a fintech type of institution signals that regulators are confident digital firms can meet Canada’s prudential standards while helping to diversify and strengthen the banking system.
A Bank of Canada study on market concentration shows that Canada’s Big Six control over 93% of total banking assets, one of the highest levels in the G7. This concentration limits competition and slows innovation. The entry of Questbank introduces a new competitor focused on digital experience, transparency, and affordability.
Current market data indicate that Questrade manages more than $85 billion in client assets, giving Questbank the scale to compete with mid-tier lenders from day one. Its digital first model could reduce overhead and improve pricing for both savers and borrowers. In a country where banking profits exceed $60 billion annually, new entrants are needed to expand access and encourage modernization.
For Canadians, the launch of Questbank could make it easier to manage money in one place. People who already invest through Questrade will be able to bank, borrow, and save using a single digital platform. This integration may lower fees and increase transparency.
For policymakers, the development shows both progress and remaining friction. Only a handful of Schedule I banks have launched since 2000, and the approval process remains lengthy (see Santander Bank 5 years to get license). A more flexible licensing approach could allow other qualified fintechs to join the system while maintaining strong oversight. Countries including the United Kingdom and Singapore have implemented phased authorization programs for digital banks, allowing limited early operations before full licensing. A similar framework in Canada could help attract investment and skilled talent while supporting responsible innovation.
Questrade’s success also underlines the importance of governance. The company’s record of compliance and consumer protection likely strengthened its application and sets a precedent for fintechs seeking federal status.
Questrade plans to roll out Questbank publicly in 2026, combining savings, lending, and investment services under one regulated brand. The achievement shows that innovation and oversight can advance together to build a more inclusive and efficient financial system.
It confirms that fintechs investing in trust, governance, and compliance can now better compete directly with established banks. Questrade’s path from brokerage to federally regulated institution offers a roadmap for how collaboration with regulators can fuel growth and improve Canada’s competitiveness in global finance.
Q: What exactly did OSFI approve on November 3 2025?
A: On that date, OSFI issued an Order of Commencement and Carrying on of Business, authorising Questbank to begin operations as a Schedule I bank under Canada’s Bank Act. Verified by Reuters reporting on November 3 2025.
Q: When was Questbank officially incorporated?
A: The federal government issued letters patent on March 29 2025, as published in the Canada Gazette.
Q: How large is Questrade’s current business?
A: The company manages more than CAD 85 billion in client assets, based on publicly reported data.
Q: Why is this move important for Canadian fintech?
A: Because Canada’s Big Six banks still control roughly 93% of banking assets, Questbank’s approval brings fresh competition and shows fintech innovation can thrive under federal regulation.
Image generated by AI
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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