Neobanks and Fintechs in Canada
Learn how app-based financial services differ from regulated banks.
By Connect First Guide Editorial Team
Identify the legal provider
An app may be a technology service rather than the institution holding your money. Read the agreement to identify the account provider and applicable protection.
Understand what the balance represents
Distinguish a deposit account from stored value or an investment product. Confirm withdrawal rules and how complaints are handled.
Before you decide
- Read the current product agreement and full fee schedule.
- Confirm the legal provider, eligibility and applicable protection.
- Keep the terms you relied on and note questions for the provider.
A practical example
A familiar app name may differ from the legal name on the deposit agreement. Record the institution holding your funds before assessing protection.
Questions to ask the provider
- Who legally holds my funds?
- Is this a deposit or investment?
- Which complaint process applies?
Primary-source guidance
A fintech’s relationship with a CDIC member does not make every app balance automatically insured. Review the underlying deposit arrangement and disclosures.