TORONTO — Wealthsimple Inc. announced its first credit card and a line of credit Wednesday as it ramps up efforts to challenge the dominance of Canada’s big banks.
The expansion also includes the additions of mobile cheque deposits, wire transfers and bank drafts to the chequing account it launched in 2020 when it started pushing toward the full financial suite offered by banks.
Wealthsimple, which started more than a decade ago with a focus on automated investment management, has long emphasized that it doesn’t want to become an actual bank, and chief commercial officer Paul Teshima said it still has no plans to become one.
“What we want to do is continue to lean into the fact that because we don't have a banking licence, we can do interesting and different use cases,” he said.
He pointed to Wealthsimple’s arrangement with 10 banks to hold its clients' deposits, giving them Canada Deposit Insurance Corp. coverage of up to $1 million, as one of those benefits.
Wealthsimple’s new offerings Wednesday include its credit card with two per cent cash back, while it says its line of credit will have rates as low as 4.45 per cent when it launches by the end of the year. (The current prime rate is 4.95 per cent.)
Clients will also be able to have bank drafts shipped at no cost to recipients, while they can use their Wealthsimple account balances as collateral for lines of credit.
But even as Wealthsimple adds features, its unclear how much market share the company will be able to take from the Big Six banks that include RBC, TD, BMO, CIBC, Scotiabank and National Bank.
Canadians are known to be reluctant to switch away from the big banks — the six control more than 90 per cent of bank assets under management.
Teshima pointed to results of a survey Wealthsimple commissioned from Angus Reid, showing a quarter of respondents were dissatisfied with the current banking system, and 38 per cent had considered leaving their big bank in the past year, as reason to think there’s demand for alternatives.
He said Wealthsimple has already shown it’s possible to get people to move their retirement accounts, something that some were previously skeptical about.
“What I think what we've shown is that with a lot of investment in technology and working our clients, we make that process as seamless as possible, and so we’re taking a very similar approach with the chequing account.”
He expects strong demand for the credit card that Wealthsimple has been quietly rolling out in test phases over the past year, as it's by far the most requested product requested by clients.
The company has shown there's demand for its combined spending and savings account as well, with about a quarter of its more than three million customers already signed up for one.
Activity in higher-interest accounts boomed in recent years as rates topped four per cent, but Teshima said there’s still demand even with rates on the decline.
“When we launched our high interest chequing account, it was a huge driver of new clients and deposits for us in the billions, and so we see it as a big demand, and even though interest rates are lower, I still think the clients care,” he said.
“Chequing is the foundation, but then you can quickly move it seamlessly to wherever you want to get a higher yield, is the beauty of having sort of one platform together.”
The suite of products "meaningfully challenge the status quo in Canadian banking," said Natasha Macmillan, Ratehub.ca's senior business director of everyday banking in an email.
She said the instant line of credit based on existing assets is a streamlined process usually reserved for private banking clients while the interest rate on its chequing account is far above what the Big Six banks offer.
Wealthsimple's credit card doesn't beat category-specific cards, but does win on simplicity, said Macmillan, while the planned direct-to-door delivery service for cash and bank drafts are a unique offering in Canada.
"It reflects Wealthsimple’s push to rethink convenience in a digital-first model, though its effectiveness and scalability beyond the GTA and other major urban centres will be interesting to watch."
This report by The Canadian Press was first published June 11, 2025.
Ian Bickis, The Canadian Press
