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Digital banking in Canada is here to stay. In a recent January 2023 Finder survey, we asked more than 1,850 Canadians asked where they plan to open a bank account or banking product and almost 1 in 4 plan to open an account with a digital bank (24%).
Use our guide below to compare digital banking providers in Canada and see which traditional banks offer digital banking though their websites and banking apps. Plus, learn about new banks in Canada, challenger banks, mobile banking apps, and the best online banks in Canada.
Like the name suggests, digital banking (also called online banking) is the activity of dealing with your finances through the internet using a virtual bank account. A new bank or online banking provider operates digitally, usually from an app or website, rather than from a physical branch or office. Digital banking is a fairly loose, umbrella term that includes online banking, mobile banking, budgeting apps, and challenger banks (also called new banks, which we’ll explain below). And banking online has steadily been increasing in popularity.
Digital banks—also known as challenger banks or direct banks—operate entirely online and are designed to be cheaper and more flexible than traditional banks.
Ultimately, the aim is to compete with the big banks like TD Bank, CIBC, RBC, Scotiabank and BMO. In response, some big banks have actually created their own digital banks to keep customers and profits from leaking away to competitors.
For example, Tangerine is owned by Scotiabank, CIBC owns Simplii Financial and Motusbank is a subsidiary of Meridian Credit Union.
Most digital banks were founded in the decade following the 2008 global financial crisis. The number of digital banks in Canada is small but growing, steadily gaining ground in a market dominated by financial industry giants like the Big 5 banks..
Bank | Notable Features | Products | Learn more |
---|---|---|---|
![]() Simplii Financial |
| Go to site | |
![]() EQ Bank |
|
| Go to site |
![]() KOHO |
| Go to site | |
![]() Neo Financial |
| Go to site | |
![]() Tangerine |
|
| |
![]() CI Direct Investing |
| ||
![]() motusbank |
|
|
“Challenger” is used generally to refer to challenging the market power of traditional banks. Not all challenger banks or new banks are actually banks. According to Canadian regulations, challengers and digital banking apps need a full banking license to use the term “bank” in company branding and marketing materials.
Tangerine and EQ Bank are chartered (licensed) digital banks that offer a suite of everyday banking products. But apps like Mint and KOHO offer a narrower range of products that target more specific financial needs. Such apps compliment—but aren’t necessarily a substitute for—the institutions you use for everyday banking. Jump to our list of Challenger Banks for more.
Bank | Can open an account online? | Account options | Popular account option |
---|---|---|---|
![]() | ![]() | Scotiabank Preferred PackageGo to site | |
![]() TD Bank | ![]() | TD Unlimited Chequing Account | |
![]() BMO | ![]() | BMO Performance Chequing Account Read ReviewGo to site | |
![]() RBC | ![]() | RBC Signature No Limit Banking Account | |
![]() CIBC | ![]() | CIBC Smart Account | |
![]() HSBC | ![]() | HSBC Premier Chequing Account |
There are more digital and online banking providers already operating in Canada or about to launch. Many of these new banks in Canada are not actual banks. Instead, they are private financial companies partnered with banks, credit unions and other financial institutions to bring similar products and services.
Name | Type | Owned by | Established |
---|---|---|---|
motusbank | Bank | Meridian | 2018 |
EQ Bank | Bank | Equitable Group | 2016 |
Tangerine | Bank | Scotiabank | 1997 |
Oaken Financial (trademark of Home Bank) | Bank | Home Trust | 2013 |
Simplii Financial | Bank | CIBC | 2017 |
Manulife | Bank | The Manufacturers Life Insurance Company | 1993 |
President’s Choice Bank | Bank | Loblaw Companies | 1996 |
Outlook financial | Bank | Assiniboine Credit Union | Unknown |
Wealth One | Bank | Privately owned | 2016 |
Achieva Financial | Bank | Cambrian Credit Union | 1998 |
LBC Digital Bank | Bank | Laurentian Bank of Canada | 2019 |
Alterna Bank | Bank | Alterna Savings and Credit Union | 2017 |
Motive Financial | Bank | Canadian Western Bank | 1984 |
KOHO | Digital banking app, prepaid cards | Privately owned | 2014 |
Online platform and mobile app | Privately owned | 2003 | |
Mydoh | App and smart cash card | RBC | 2020 |
Neo Financial | Online platform and mobile app | Privately owned (partnered with mastercard, ATB Financial and Concentra Bank) | 2019 |
NorthOne Business Banking | Business bank | Privately owned | 2017 |
Revolut (coming to Canada soon) | App | Privately owned | 2015 |
Stack | App | Privately owned (partnered with Peoples Trust Company) | 2017 |
Wealthsimple | Online investment management platform (not a bank, but offers a hybrid savings/chequing account, business accounts and retirement products) | Power Corporation of Canada | 2014 |
Nest Wealth | Online wealth management platform | Privately owned (National Bank of Canada holds a minority stake) | 2014 |
CI Direct Investing (formerly WealthBar) | Online investment platform (offers a High Interest Savings Account and investment solutions) | CI Financial | 2014 |
Moka (formerly Mylo) | App | Mogo | 2017 |
AcceleRate Financial | Online credit union | Access Credit Union | 2010 |
Hubert Financial | Online savings platform and app | Sunova Credit Union | 2010 |
Implicity Financial | Online platform and app | Entegra Credit Union | Unknown |
Mint | App | Intuit | 2006 |
CST Spark | Online RESP provider | Canadian Scholarship Trust Foundation | 2018 |
RBC NOMI | Digital savings account | RBC | 2017 |
Emma app | App | Privately owned | 2018 in London (available in Canada in 2019) |
Ampli | App | RBC | 2019 |
Wallet by BudgetBakers | App | Privately owned | 2010 |
Samsung Pay | Digital wallet | Samsung | 2015 (available in Canada in 2017) |
Online banks, like Tangerine or EQ Bank, are digital banks that usually don’t have physical branches (or they rely on the branches of other physical banks) and customers use mobile banking apps to control their money. These online-only banks are built on existing infrastructure and closely mimic traditional banks.
A challenger bank, like Revolut or N26, is a completely digital bank that doesn’t use any existing legacy systems to operate. Unlike regular online banks, challenger banks don’t use any physical infrastructure or digital operating systems that are already being used by existing financial institutions. The technology used by these fully digital banking providers is developed from scratch. They get their name from their roles as challengers to traditional banks, like the big 5 Canadian banks.
App-based banking is any sort of financial management that you do primarily through an app. It’s basically another name for digital banking but based solely through an app. Banking apps are popular tools in the online banking world and can help you save, budget and manage your spending. There are several advantages to app-based banking:
Using your phone as your main point of contact with your bank can save you time and give you more control over your finances, but there are a few things to be aware of.
Digital banking providers need to have the same banking licences and approvals as existing Canadian banks before they’re able to offer products and services to consumers. These new banks will be regulated by the Office of the Superintendent of Financial Institutions (OSFI) and the Financial Consumer Agency of Canada (FCAC) in the same way that existing banks are regulated.
Your deposit of up to $100,000 with a Canadian Deposit Insurance Corporation (CDIC)-insured bank is protected by the Canadian government. This means if something were to happen to the bank, your money (up to this amount) would be safe. Note that some of the digital banks mentioned in this guide are not yet considered banks and haven’t yet been licensed or CDIC-insured.
If you’re interested in digital banking, compare the best digital banks in Canada and sign up. If you want to join one of the new digital bank providers that have yet to open in Canada, you can join their waitlist by visiting their website. When they launch products, those on the waitlist will be the first to know and the first to receive access to these new products.
Online banking is becoming more and more popular – and for good reason. Besides the convenience they provide, digital banks often cater to specific niches and groups and they’re known for offering innovative apps. But before you ditch your current traditionally bank, take the time to read through all of the fine print to make sure the bank you’re interested in is as good as it sounds then compare digital banking providers to find the right one for you.
Digital bank accounts are easy to open with government-issued ID. You may not need additional proof of residency.
Read more…Looking for Revolut alternatives in Canada? These challenger banks and financial apps may be just what you need.
Read more…Earn cash back when you link your bank account and make eligible purchases with this innovative mobile app.
Read more…Open Banking can pave the way to new products and services for Canadians. Find out all you need to know from APIs to regulations with our guide.
Read more…Wallet helps you organize your money and personalize budgets and goals. We take a look at its features, pros, cons and premium options.
Read more…We take a closer look at two leading challenger banks. While lumped together, Revolut and Monzo offer distinct features. Take a closer look here.
Read more…Digital bank accounts are easy to open with government-issued ID. You may not need additional proof of residency.
Looking for Revolut alternatives in Canada? These challenger banks and financial apps may be just what you need.
Earn cash back when you link your bank account and make eligible purchases with this innovative mobile app.
Open Banking can pave the way to new products and services for Canadians. Find out all you need to know from APIs to regulations with our guide.
Wallet helps you organize your money and personalize budgets and goals. We take a look at its features, pros, cons and premium options.
We take a closer look at two leading challenger banks. While lumped together, Revolut and Monzo offer distinct features. Take a closer look here.
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Popular European-based digital bank, N26, offers business accounts that let customers earn cash back rewards on their spending. Find out if business owners in Canada can become account holders.
Popular UK-based fintech company, Revolut, offers a powerful business account with loads of useful features for entrepreneurs – but can you open an account in Canada?