Latest news with #MichaelKatchen
Time of India
2 days ago
- Business
- Time of India
The End of Banking in Canada? Wealthsimple launches credit card with 2 percent cashback, 2.75 percent chequing, and instant loans in bid to disrupt the Big 6
Wealthsimple unveiled what CEO Michael Katchen calls 'our take on banking', pivoting from its fintech roots into full-fledged everyday finance. The Toronto-based firm introduced its first credit card, an upgraded high-interest chequing account, and announced an instant line of credit coming by year's end, all part of its ambitious goal to become Canadians' primary financial relationship. More than 110,000 people tuned in virtually, and hundreds packed Toronto's Evergreen Brick Works to witness the reveal of what Wealthsimple dubs 'The End of Banking?'. On stage, New Jersey-born Sam Newman‑Bremang, the product director, shared, ' It's our take on banking ' , as he described their goal of integrating savings, spending, and investing under one roof. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New 3BHK Flats In Hanoi:(Take A Look At Prices) Apartments | Search Ads Search Now Undo 2 percent cash back, no annual fee Wealthsimple's new Visa Infinite credit card offers unlimited 2 percent cash back on all purchases, with no annual fee, foreign exchange fees, or tap limits. Newman‑Bremang described it as 'the company's most‑requested product to date'. Clients with over CAD 100,000 in assets receive an upgraded metal version. A chequing account that grows Live Events Previously known as Wealthsimple Cash, the revamped chequing account offers up to 2.75 percent interest, the highest in Canada for a chequing account, plus no monthly or ATM fees, no FX charges, and early direct‑deposit access up to a day early As Paul Teshima, chief commercial officer, explained to MoneySense: '[Hidden] fees are a tax on choice.' . About one in four Wealthsimple users now have the account By the end of this year, Wealthsimple will offer an instant line of credit (rates starting at 4.45 percent) tied to eligible account balances. More nostalgically, they're also rolling out on‑demand cheque and cash delivery, customers in Toronto will soon find real money or bank drafts arriving at their door. A fintech taking on the "Big Six" Canada's banking scene is notoriously concentrated: the top six hold 93 percent of assets. Wealthsimple, which is valued at roughly CAD 5 billion, serves 3 million clients and manages $70 billion in assets, and aims to disrupt that status quo. CEO Katchen didn't mince words: 'The way I see it, the banks are a tax on all of us. We as Canadians need to demand more.' Wealthsimple's consolidated ecosystem promises simplicity, with high interest, low fees, and rewards for investing inside the platform. It does, however, mean no physical branches and total reliance on digital delivery.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Wealthsimple CEO says banks are a tax on Canadians
Wealthsimple Technologies Inc. chief executive officer Michael Katchen says Canada's banking industry has fallen behind its global peers at a critical time for the country. Canadians pay some of the highest banking fees in the world and moving money is a slow process, Mr. Katchen said during a company event Wednesday unveiling the Wealthsimple's new banking products. Canada's financial sector regulators have been grappling with protecting the stability of the financial sector with encouraging competition among stalwarts and newer entrants. Mr. Katchen said the current system puts Canadian consumers at a disadvantage. 'There's too much red tape when you want to put your money to work,' he said. 'Money sits in accounts no one is earning interest on except for the banks themselves. The way I see it, the banks are a tax on all of us – on Canada – and it's time we learn it is okay to demand more.' The Toronto-based online financial services provider – which has more than 3 million clients and oversees $70-billion in assets under administration – is the largest financial institution built in Canada in the last 25 years, Mr. Katchen said. Canada's biggest banks have been under greater scrutiny by Ottawa in recent years. Under the previous Liberal government, the government lowered certain fees for bank customers and levied taxes that extracted billions of dollars from the industry. The federal Finance Ministry also launched a competition review in late 2023 as RBC, the country's largest lender, was preparing to close its takeover of HSBC Bank Canada. But promises to launch an open banking regime – which would enable consumers to securely share their banking data with financial-services providers – and Canada's Real-Time Rail (RTR) project – a new system that would allow payments to be sent and received instantly – have hit lengthy delays. Prime Minister Mark Carney has yet to outline his government's plan for launching open banking. 'Canada's financial services industry is behind the rest of the world,' Mr. Katchen said. 'We have a solid banking system and that is a good thing. But the biggest banks are from a different century, and they were built for a different time.' Competition in Canada's banking sector has also drawn the ire of U.S. President Donald Trump, who has incorrectly claimed that U.S. banks are not allowed to operate in Canada. While there is no such rule, it has been more difficult for foreign banks to enter and compete in Canada's insulated retail banking market. During a Monday event hosted by The Globe and Mail, Ontario Premier Doug Ford questioned why large Canadian banks have developed large retail operations in the U.S., but foreign banks have not managed to do the same in Canada. 'I'm all for open and free banking,' Mr. Ford said. 'Bring the banks in. Wouldn't that be great making the banks more competitive? RBC is down in the U.S., BMO is down in the U.S., TD has more branches down there than they do up here.'
Bloomberg
3 days ago
- Business
- Bloomberg
Wealthsimple CEO Michael Katchen Says IPO Remains Goal as Assets Top $50 Billion
The head of celebrity-backed Wealthsimple Financial Corp. says there's no need to rush into an initial public offering as the fintech sees a surge in client assets. Going public 'remains the destination,' Wealthsimple Chief Executive Officer Michael Katchen said in an interview, but only 'when it makes sense for the business.'
