That’s right: “Wealthsimple has stated it does not plan to apply for a banking license. Instead, it’s using that freedom to roll out creative, client-first services that directly challenge the Big Six banks—RBC, TD, BMO, CIBC, Scotiabank, and National Bank, who together manage over 90% of Canada’s banking assets.
How Wealthsimple Works Differently
Paul Teshima, Wealthsimple’s Chief Commercial Officer, says they work with 10 banks to hold their clients’ money. This means customers receive the same safety protections as those of a regular bank, up to $1 million. The WealthSimple Credit Card offers 2% cash back, a simple and easy-to-understand benefit. The new line of credit will have low interest rates, as low as 4.45%, which is better than the current prime rate of 4.95%. 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.
Making Switching Simple
Teshima says their technology and support make switching smooth. The credit card has been tested quietly for a year and is the most asked-for product by clients. About one-quarter of Wealthsimple’s three million users already use their combined spending and savings account. Even though interest rates have dropped, customers still want accounts that pay more interest than usual bank accounts.
How to Apply for the Wealthsimple Visa Infinite Credit Card
If you want to apply for the Wealthsimple Visa Infinite credit card, you can join the waitlist on their official website. This allows you to be notified when the card becomes available.