Facebook with Latestnigeriannews  Twieet with latestnigeriannews  RSS Page Feed
Home  |  All Headlines  |  Punch  |  Thisday  |  Daily Sun  |  Vanguard   |  Guardian  |  The Nation  |  Daily Times  |  Daily Trust  |  Daily Independent
World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  More Channels...

Viewing Mode:

Archive:

  1.     Tool Tips    
  2.    Collapsible   
  3.    Collapsed     
Click to view all Entertainment headlines today

Click to view all Sports headlines today

Wealthsimple passes 2 million Canadian users as it delves into banking territory

Published by Business Insider on Tue, 04 May 2021


<bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>The Canadian fintech&nbsp;<a href="https://e.insiderintelligence.com/click/23731292.4/aHR0cHM6Ly93d3cubmV3c3dpcmUuY2EvbmV3cy1yZWxlYXNlcy93ZWFsdGhzaW1wbGUtZnVuZGluZy1hbm5vdW5jZW1lbnQtcTItMjAyMS04NjY2MTMyMzAuaHRtbA/5d233c18f730436f2414784fB49a0ba1e" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/23731292.4/aHR0cHM6Ly93d3cubmV3c3dpcmUuY2EvbmV3cy1yZWxlYXNlcy93ZWFsdGhzaW1wbGUtZnVuZGluZy1hbm5vdW5jZW1lbnQtcTItMjAyMS04NjY2MTMyMzAuaHRtbA/5d233c18f730436f2414784fB49a0ba1e&amp;source=gmail&amp;ust=1620220107453000&amp;usg=AFQjCNGJKtUXpFmlm53eyfbXmgn3RoDuZA"><u>surpassed</u></a> the 2 million user mark in its home country, up from around 1.5 million when it last reported the figure in October. Wealthsimple unveiled the user updates alongside a CAD$750 million ($559.2 million) funding round on Monday, which values it at CAD$5 billion ($3.73 billion)more than triple the CAD$1.5 billion ($1.12 billion) valuation it reached after its previous round in October.</p><p><img style="float:right;" src="https://static1.businessinsider.com/image/60880e0c0da8f40018033a8c-1020/Digital Banking Users and Penetration.png" border="0" alt="Fintech Wealthsimple passes 2 million Canadian users as it ventures into neobanking" data-mce-source="Insider Intelligence"></p><p>The fintech has experienced significant product growth over the past 14 months: Adoption of its free stock trading offering has grown, it rolled out cryptocurrency trading last August, and it introduced its peer-to-peer (P2P) money transfer app earlier this year.</p><p>Wealthsimple's growth comes as it delves into the neobanking space in Canadawhile facing powerful entrenched incumbents.</p><ul><li>The fintech's product suite overlaps with neobanks'.&nbsp;Wealthsimple's lineup now includes investing, savings, and money transfers, likening it to neobanks operating in Canada. These players have been struggling: UK-based Revolut, for example, pulled the plug on its beta in the country, although it <a href="https://e.businessinsider.com/click/23731292.4/aHR0cHM6Ly93d3cuYnVzaW5lc3NpbnNpZGVyLmNvbS9yZXZvbHV0LXBsYW5zLTIwMjItcmV0dXJuLXRvLWNhbmFkYS1mcmF1Z2h0LXdpdGgtcmlzay0yMDIxLTQ/5d233c18f730436f2414784fBc48b4bfa" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.businessinsider.com/click/23731292.4/aHR0cHM6Ly93d3cuYnVzaW5lc3NpbnNpZGVyLmNvbS9yZXZvbHV0LXBsYW5zLTIwMjItcmV0dXJuLXRvLWNhbmFkYS1mcmF1Z2h0LXdpdGgtcmlzay0yMDIxLTQ/5d233c18f730436f2414784fBc48b4bfa&amp;source=gmail&amp;ust=1620220107453000&amp;usg=AFQjCNHHBLxDB1zXi2ngr5ncI-JjBqvtbA"><u>plans</u></a>&nbsp;a return next year.&nbsp;</li><li>But Canada's entrenched incumbent banks make it hard for challengers to win market share.&nbsp;Just five big banks <a href="https://e.businessinsider.com/click/23731292.4/aHR0cHM6Ly93d3cuYnVzaW5lc3NpbnNpZGVyLmNvbS9jaGltZS1vcGVuZWQtZmlyc3Qtbm9uLXVzLW9mZmljZS1pbi1jYW5hZGEtMjAyMC0xMQ/5d233c18f730436f2414784fB47855865" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.businessinsider.com/click/23731292.4/aHR0cHM6Ly93d3cuYnVzaW5lc3NpbnNpZGVyLmNvbS9jaGltZS1vcGVuZWQtZmlyc3Qtbm9uLXVzLW9mZmljZS1pbi1jYW5hZGEtMjAyMC0xMQ/5d233c18f730436f2414784fB47855865&amp;source=gmail&amp;ust=1620220107453000&amp;usg=AFQjCNGkPlmndDnPcL92cfU_3Ih6HIQUCw"><u>dominate </u></a>Canada's banking sector: BMO, TD Bank, RBC, CIBC, and Scotiabank. Digital banking is on the risethe proportion of adults who use a digital channel at least monthly is&nbsp;<a href="https://e.insiderintelligence.com/click/23660974.3951/aHR0cHM6Ly9mb3JlY2FzdHMtbmEyLmVtYXJrZXRlci5jb20vNTg0YjI2MDIxNDAzMDcwMjkwZjkzYTZhLzU4NTE5MTg3MDYyNjMxMGEyYzE4NjZjMQ/607462541f2a63441548d3e3Bdb15dedc" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/23660974.3951/aHR0cHM6Ly9mb3JlY2FzdHMtbmEyLmVtYXJrZXRlci5jb20vNTg0YjI2MDIxNDAzMDcwMjkwZjkzYTZhLzU4NTE5MTg3MDYyNjMxMGEyYzE4NjZjMQ/607462541f2a63441548d3e3Bdb15dedc&amp;source=gmail&amp;ust=1620220107453000&amp;usg=AFQjCNGF8ovFt4nSvbACTH4kAdmQ-tXfxQ"><u>projected</u></a>&nbsp;to reach 72.0% in 2021but the digital-only space is&nbsp;<a href="https://e.insiderintelligence.com/click/23660974.3951/aHR0cHM6Ly93d3cuZW1hcmtldGVyLmNvbS9jb250ZW50L3Jldm9sdXQtc3VycmVuZGVycy1pbXBlcnZpb3VzLWluY3VtYmVudHMtZW5kcy1pdHMtc2hvcnQtbGl2ZWQtdHJpYWwtcGVyaW9kLWNhbmFkYQ/607462541f2a63441548d3e3B43cd1a8c" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/23660974.3951/aHR0cHM6Ly93d3cuZW1hcmtldGVyLmNvbS9jb250ZW50L3Jldm9sdXQtc3VycmVuZGVycy1pbXBlcnZpb3VzLWluY3VtYmVudHMtZW5kcy1pdHMtc2hvcnQtbGl2ZWQtdHJpYWwtcGVyaW9kLWNhbmFkYQ/607462541f2a63441548d3e3B43cd1a8c&amp;source=gmail&amp;ust=1620220107454000&amp;usg=AFQjCNG6WqYDyjTH3KqjRi7cp4lQYEprrA"><u>controlled</u></a>&nbsp;by two incumbent-backed players: Simplii and Tangerine.&nbsp;</li></ul><p>Despite the headwinds, Wealthsimple's continued user and product growth are positive signs that it could become a significant challenger. The company's emerging banking play is similar to measures taken by US-based Venmo, which has evolved beyond P2P mobile payments into products such as <a href="https://e.businessinsider.com/click/23731292.4/aHR0cHM6Ly93d3cuYnVzaW5lc3NpbnNpZGVyLmNvbS92ZW5tby1icmluZ2luZy1jcnlwdG8taW50by1uZW9iYW5rLWZpZ2h0LTIwMjEtNA/5d233c18f730436f2414784fB5b2817f3" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.businessinsider.com/click/23731292.4/aHR0cHM6Ly93d3cuYnVzaW5lc3NpbnNpZGVyLmNvbS92ZW5tby1icmluZ2luZy1jcnlwdG8taW50by1uZW9iYW5rLWZpZ2h0LTIwMjEtNA/5d233c18f730436f2414784fB5b2817f3&amp;source=gmail&amp;ust=1620220107454000&amp;usg=AFQjCNFrjHDtHVfoqAyHnuiNc80uyE7E9g"><u>cryptocurrency trading</u></a>, &nbsp;<a href="https://e.insiderintelligence.com/click/23608024.4/aHR0cHM6Ly9jb250ZW50LW5hMi5lbWFya2V0ZXIuY29tL3Zlbm1vLWdvZXMtZGVlcGVyLWJhbmstdGVycml0b3J5LXdpdGgtbW9iaWxlLWNoZWNrLWNhc2hpbmctZmVhdHVyZS13YWl2ZXMtZmVlcy1zdGltdWx1cy1jaGVja3M/5d233c18f730436f2414784fB82bca14a'_ga=2.70265552.1128386635.1620059772-529425377.1619455754" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/23608024.4/aHR0cHM6Ly9jb250ZW50LW5hMi5lbWFya2V0ZXIuY29tL3Zlbm1vLWdvZXMtZGVlcGVyLWJhbmstdGVycml0b3J5LXdpdGgtbW9iaWxlLWNoZWNrLWNhc2hpbmctZmVhdHVyZS13YWl2ZXMtZmVlcy1zdGltdWx1cy1jaGVja3M/5d233c18f730436f2414784fB82bca14a'_ga%3D2.70265552.1128386635.1620059772-529425377.1619455754&amp;source=gmail&amp;ust=1620220107454000&amp;usg=AFQjCNEovEu-E2HuyfuMgsGMruunUpZDvw"><u>mobile check cashing</u></a>, and <a href="https://e.insiderintelligence.com/click/23731292.4/aHR0cHM6Ly9jb250ZW50LW5hMi5lbWFya2V0ZXIuY29tL3Zlbm1vcy1jcmVkaXQtY2FyZC1pcy1oZXJld2UtdGhpbmstdGhlLXN5bmNocm9ueS1pc3N1ZWQtY2FyZC1pcy1zZXQtdG8tZHJpdmUtZW5nYWdlbWVudC1hbmQtbG95YWx0eS1hbW9uZy12ZW5tb3MtZXhpc3RpbmctYmFzZS1idXQtY291bGQtc3RydWdnbGUtdG8tZ2VuZXJhdGUtYnJvYWQtYXBwZWFsLTIwMjAtMTA/5d233c18f730436f2414784fB10646299" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/23731292.4/aHR0cHM6Ly9jb250ZW50LW5hMi5lbWFya2V0ZXIuY29tL3Zlbm1vcy1jcmVkaXQtY2FyZC1pcy1oZXJld2UtdGhpbmstdGhlLXN5bmNocm9ueS1pc3N1ZWQtY2FyZC1pcy1zZXQtdG8tZHJpdmUtZW5nYWdlbWVudC1hbmQtbG95YWx0eS1hbW9uZy12ZW5tb3MtZXhpc3RpbmctYmFzZS1idXQtY291bGQtc3RydWdnbGUtdG8tZ2VuZXJhdGUtYnJvYWQtYXBwZWFsLTIwMjAtMTA/5d233c18f730436f2414784fB10646299&amp;source=gmail&amp;ust=1620220107454000&amp;usg=AFQjCNH0rXUWI1Dy3PXZ_NS_UrFg8cnFBg"><u>a credit card</u></a>.</p><p>Revolut is also straddling the fintech and neobank areas, with a lineup that&nbsp;<a href="https://e.insiderintelligence.com/click/23731292.4/aHR0cHM6Ly93d3cucmV2b2x1dC5jb20vZW4tVVMvYnV5LWNyeXB0b2N1cnJlbmN5/5d233c18f730436f2414784fBe86e4894" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/23731292.4/aHR0cHM6Ly93d3cucmV2b2x1dC5jb20vZW4tVVMvYnV5LWNyeXB0b2N1cnJlbmN5/5d233c18f730436f2414784fBe86e4894&amp;source=gmail&amp;ust=1620220107454000&amp;usg=AFQjCNEKDbA_tiuqFuFxqBDPyD4T7sOEcw"><u>includes</u></a>&nbsp;investing, checking and savings accounts, and insurance. Wealthsimple plans to use its latest proceeds to expand both its offerings and user base, suggesting that it will continue its foray into neobanking, which is already off to a promising start.</p><p><strong><em>Want to read more stories like this one' Here's how you can gain access:</em></strong></p><ol><li>Join other Insider Intelligence clients who receive Banking forecasts, briefings, charts, and research reports to their inboxes each day. <a href="https://www.insiderintelligence.com/become-a-client/'IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=bottom_bullets&amp;itm_term=enterprise_text_link-wealthsimple-hits-2-million-canadian-users-amid-neobanking-push-2021-5">&gt;&gt;&nbsp;<strong>Become a Client</strong></a></li><li>Explore related topics more in depth. <a href="https://store.businessinsider.com/collections/banking'IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=bottom_bullets&amp;itm_term=store_text_link-wealthsimple-hits-2-million-canadian-users-amid-neobanking-push-2021-5">&gt;&gt;&nbsp;<strong>Browse Our Coverage</strong></a></li></ol><p><em>Current subscribers can access the entire Insider Intelligence content archive <a href="https://subscriptions.emarketer.com/">here</a>.</em></p><p><a href="https://www.businessinsider.com/wealthsimple-hits-2-million-canadian-users-amid-neobanking-push-2021-5#comments">Join the conversation about this story &#187;</a></p>
Click here to read full news..

All Channels Nigerian Dailies: Punch  |  Vanguard   |  The Nation  |  Thisday  |  Daily Sun  |  Guardian  |  Daily Times  |  Daily Trust  |  Daily Independent  |   The Herald  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  New Telegraph  |  Peoples Daily  |  Blueprint  |  Nigerian Pilot  |  Sahara Reporters  |  Premium Times  |  The Cable  |  PM News  |  APO Africa Newsroom

Categories Today: World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Columns  |  All Headlines Today

Entertainment (Local): Linda Ikeji  |  Bella Naija  |  Tori  |  Pulse  |  The NET  |  DailyPost  |  Information Nigeria  |  Gistlover  |  Lailas Blog  |  Miss Petite  |  Olufamous  |  Stella Dimoko Korkus Blog  |  Ynaija  |  All Entertainment News Today

Entertainment (World): TMZ  |  Daily Mail  |  Huffington Post

Sports: Goal  |  African Football  |  Bleacher Report  |  FTBpro  |  Kickoff  |  All Sports Headlines Today

Business & Finance: Nairametrics  |  Business Insider  |  Forbes  |  Entrepreneur  |  The Economist  |  BusinessTech  |  Financial Watch  |  BusinessDay  |  All Business News Headlines Today

Technology (Local): Techpoint  |  TechMoran  |  TechCity  |  Innovation Village  |  IT News Africa  |  Technology Times  |  Technext  |  Techcabal  |  All Technology News Headlines Today

Technology (World): Techcrunch  |  Techmeme  |  Slashdot  |  Wired  |  Hackers News  |  Engadget  |  Pocket Lint  |  The Verge

International Networks:   |  CNN  |  BBC  |  Al Jazeera  |  Yahoo

Forum:   |  Nairaland  |  Naij

Other Links: Home   |  Nigerian Jobs