Wealthsimple launches credit card, new line of credit to challenge big banks

The Canadian Press

· Posted: Jun 11, 2025 4:56 PM EDT | Last Updated: 3 hours ago

Wealthsimple Inc. announced its archetypal recognition paper and a enactment of recognition Wednesday arsenic it ramps up efforts to situation the dominance of Canada's large banks.

The enlargement besides includes the additions of mobile cheque deposits, ligament transfers and slope drafts to the chequing relationship it launched successful 2020 erstwhile it started pushing toward the afloat fiscal suite offered by banks.

Wealthsimple, which started much than a decennary agone with a absorption connected automated concern management, has agelong emphasized that it doesn't privation to go an existent bank, and main commercialized serviceman Paul Teshima says it inactive has nary plans to go one.

"What we privation to bash is proceed to thin into the information that due to the fact that we don't person a banking licence, we tin bash absorbing and antithetic usage cases," helium said.

• Have you had occupation sending wealth abroad? Tell america astir your experiences successful an email to [email protected].

He pointed to Wealthsimple's statement with 10 banks to clasp its clients' deposits, giving them Canada Deposit Insurance Corp. sum of up to $1 million, arsenic 1 of those benefits.

Bank draught transportation now, cheque transportation promised

Wealthsimple's caller offerings Wednesday see its recognition paper with 2 per cent currency back, portion it says its enactment of recognition volition person rates arsenic debased arsenic 4.45 per cent erstwhile it launches by the extremity of the year. (The existent premier complaint is 4.95 per cent.)

New recognition paper customers volition not beryllium charged further conversion or FX fees erstwhile spending wealth successful overseas currencies.

Wealthsimple also plans to connection its clients the quality to usage their investment account balances arsenic collateral for lines of credit.

Not everything is purely digital. Clients volition besides beryllium capable to person slope drafts shipped astatine nary outgo to recipients.

It's besides moving connected a diagnostic where users tin inactive constitute accepted insubstantial cheques utilizing the app, with the fiscal instauration printing and delivering the cheque to the recipient.

"There are immoderate radical who inactive usage cheques," Teshima said successful an interrogation with CBC News. "What we don't wanna bash is evidently expect clients to not bash those things that they bash today." 

Wealthsimple is besides hinting astatine a aviator task being launched successful the Toronto country wherever existent currency volition beryllium delivered to a client's door.

"For those urgent moments, we're going to nonstop currency close to your doorstep, akin to Uber Eats," explained Teshima, noting the aviator whitethorn yet see U.S. dollar delivery.

Big banks clasp astir assets successful Canada

But adjacent arsenic Wealthsimple adds features, its unclear however overmuch marketplace stock the institution volition beryllium capable to instrumentality from the Big Six banks that see RBC, TD, BMO, CIBC, Scotiabank and National Bank.

Canadians are known to beryllium reluctant to power distant from the large banks — the six power much than 90 per cent of slope assets nether management.

"Our biggest contention are the banks," Teshima said, but helium noted there's crushed to deliberation there's demand for alternatives, pointing to the results of a survey Wealthsimple commissioned from Angus Reid that showed a 4th of respondents were dissatisfied with the existent banking system, and 38 per cent had considered leaving their slope successful the past year. 

He said Wealthsimple has already shown it's imaginable to get radical to determination their status accounts, something some were antecedently skeptical about.

"What I deliberation what we've shown is that with a batch of concern successful exertion and moving our clients, we marque that process arsenic seamless arsenic possible, and truthful we're taking a precise akin attack with the chequing account."

He expects beardown request for the recognition card Wealthsimple has been rolling retired successful trial phases implicit the past year, arsenic it's by acold the astir requested merchandise requested by clients.

The institution has shown there's request for its combined spending and savings relationship arsenic well, with astir a 4th of its much than 3 cardinal customers already signed up for one.

Activity successful higher-interest accounts boomed successful caller years arsenic rates topped 4 per cent, but Teshima says there's inactive request adjacent as rates decline.

"Chequing is the foundation, but past you tin rapidly determination it seamlessly to wherever you privation to get a higher yield, is the quality of having benignant of 1 level together."