It should come as no surprise that there are numerous regulatory requirements you must meet before opening a bank, trust company, or loan company in Canada. The good news is that the legislative “message” (as of late) from the Canadian government seems to be one that is encouraging an increase in the level of competition overall. This bodes well for those who wish to apply for a banking charter or be approved to open a trust company or loan company. Understand, however, that there has been no relaxing of the regulations. The Canadian government may be encouraging competition, but they are in no mood to place Canada’s world class financial system at risk.
SIT does not provide guidance for OSFI approval (unless it is banking platform related). But we have worked with a number of experts over the years who can help.
If you need to connect with one of these experts, please email us or call us at 647-496-6202. This interview with Phil Buxton, regarding the OSFI approval process, may also help you get in the right mindset to proceed.
If you’re serious about starting a bank, trust company or loan company, Strategic Information Technology (SIT) recommends that you contact both OSFI and SIT early in the process. OSFI will help you map out the regulatory steps you must take, while SIT can help educate you on the banking system and software you’ll require to achieve your goals.
Feel free to download this Guide for Incorporating Banks and Federally Regulated Trust and Loan Companies.
To get you started, take a moment to read some of our facts and information regarding the OSFI approval process:
Portfolio Plus, SIT’s flagship product, is in use by numerous large and small Canadian banks, trust companies, and loan companies. SIT is experienced in new (de novo) startups and as such can help accelerate your plans. Fortunately, the Plug-In BankingTM architecture of Portfolio Plus allows an institution to start with a minimal purchase of the components they need to commence business, and then grow according to their success. This approach works. We’ve proven it with large and small financial institutions alike.
SIT employs no commissioned sales people and is privately funded. As such, SIT is able to approach any potential business agreement as a true partnership, free from the pressures of investors and commissioned sales people. Admittedly, SIT’s strategy amounted to lower revenue in the early days (we started in 1988), but laid a solid business foundation and encouraged strict financial discipline. The strategy has worked. SIT has never been healthier, financially, and continues to grow at a healthy rate.
It has been said that successful customers are the ultimate litmus test for any banking software system. SIT has plenty of successful customers. What SIT is most proud of, however, is that a number of our customers changed their strategies along the way. As such, they required new banking functionality. Portfolio Plus, with it’s Plug-In BankingTM architecture, allowed them to plug in new functionality when they needed to. It allowed them to adapt to a new strategy or opportunity.
Portfolio Plus includes modules for loans, term deposits, investments, retail banking, point-of-sale (POS), ATM, web banking, accounting, and more. Need to integrate with other banking systems? No problem. You can always utilize the advanced XML and messaging capabilities of Portfolio Plus to ensure you can bring your legacy systems into the future.
Questions? We have answers.
This page was created and/or refreshed on May 29, 2017 @ 15:55:40
by Strategic Information Technology (SIT) Ltd., Stouffville, Ontario, Canada
The page subject is: Starting a Bank or Financial Institution in Canada