Canadian Mid-Sized Banks Face Struggles Amid Big Bank Consolidations

Challengers like EQ Bank and Wealthsimple grow but are likely to be absorbed by larger institutions, experts say.

Wealthsimple and EQ Bank are gaining traction with innovative, low-cost offerings, doubling their assets in recent years.
The recent acquisitions of HSBC Canada by RBC and Canadian Western Bank by National Bank highlight ongoing consolidation in the sector.
Experts predict that mid-sized banks are more likely to be bought out rather than disrupt the dominance of Canada's Big Six banks.
Canadians face higher banking fees compared to other countries due to limited competition and regulatory differences.
Smaller banks struggle with higher operational costs, stability perceptions, and limited economies of scale, making market share gains difficult.