Lower Banking Fees and Streamlined Transfers for Canadians

Ottawa is moving to make it simpler and less costly for Canadians to switch their banking and investment accounts, using measures introduced in the federal budget to boost competition and lower consumer expenses. The government announced it will eliminate fees for transferring investment and registered accounts—fees it estimates average about $150 per account—and will work with financial institutions to streamline the process of switching a primary chequing account to another Canadian bank or credit union.

“We will introduce measures to enhance competition across the economy—starting with the financial and telecommunications sectors,” said Finance Minister François-Philippe Champagne in the prepared text of his budget speech.

Fintech challengers gain ground against Canada’s big banks

The budget measures are expected to strengthen fintech competitors that have been increasingly challenging the dominance of Canada’s large banks. Several fintech firms are expanding their services and market reach in ways that offer consumers more choices and innovative alternatives to traditional banking.

Questrade Financial Group, known for its online brokerage services, recently received regulatory approval to launch Questbank. Wealthsimple has continued broadening its product suite to include chequing accounts, credit cards, and mortgages, and reports assets under administration exceeding $100 billion. These expansions demonstrate how non-traditional players are building full-service offerings that can attract customers away from incumbent banks.

Michael Katchen, CEO of Wealthsimple, praised the budget’s proposal to ban transfer fees. “By standing up for ordinary investors and removing this barrier to choice, the government is taking exactly the kind of bold action we need to unlock real competition in financial services,” he said. Removing transfer fees could lower the friction and cost of moving accounts, encouraging consumers to shop around for better rates and services.

Bank of Canada senior deputy governor Carolyn Rogers has also highlighted the potential benefits of greater competition. While the concentration of Canada’s banks is often credited with contributing to financial stability, Rogers noted that high concentration can also hinder productivity, innovation, efficient capital allocation, and consumer choice, and can keep costs higher than they might be in a more competitive market.

Ottawa advances open banking to boost competition

The Canadian Bankers Association (CBA) emphasized that Canada’s financial services sector is already competitive, with many providers and a wide array of products. The association says it will collaborate with the government as industry consultations proceed on the budget’s proposals.

One major initiative is the continued development of an open banking framework that gives consumers greater control over their financial data and makes it easier to switch banks and access third-party services. Although open banking has not yet been fully implemented in Canada, the budget commits to expanding the system by mid-2027 to enable payment initiation—allowing consumers to send payments through the open banking infrastructure. To drive this forward, the federal government is transferring responsibility for implementing open banking from the Financial Consumer Agency of Canada to the Bank of Canada.

Adriana Vega, head of Fintechs Canada, welcomed the budget’s direction, calling it a bold and clear roadmap for the sector. “The financial sector is the heart of any modern economy,” Vega said. She added that prioritizing financial services reform can help make daily life more affordable for Canadians and improve productivity across the economy.

New measures seek lower fees and faster deposits

The budget also sets out a review of fees charged by banks and other federally regulated financial institutions, including commonly used services such as Interac e-transfer and ATM fees. The government said it will work with the banking industry to increase transparency around the costs of sending money abroad, helping consumers better understand and compare fees for international transfers.

Changes to the Bank Act will raise the amount immediately available to customers when they deposit a cheque from $100 to $150 and will aim to shorten the number of days banks may hold deposited cheque funds before releasing them. Faster access to deposited funds improves everyday cash flow for households and small businesses and reduces the waiting period consumers currently face before funds are fully available.

These financial-sector measures come alongside recent tax relief: Canadians already benefitted from a reduction in the income tax rate for the lowest bracket that took effect on July 1. That tax cut is projected to deliver savings of up to $420 per person in 2026, further increasing take-home income for low-income earners.

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