Want To Onboard A Big 5 Canadian Bank: A Beginner’s Guide

When running a fintech, crypto, or payment service business in Canada, getting banked is essential. This is a challenging task, especially if you want to partner with a big 5 Canadian bank.

The task is difficult, but not impossible. That’s why we’ll breakdown the challenges of onboarding with a bank and how your company can improve its position to get banked by a big 5 Canadian bank.

Who Are the Big 5 Canadian Banks?

The big 5 Canadian banks refer to the largest national banks in the country, including:

Royal Bank of Canada (RBC)
Toronto-Dominion Bank (TD)
Bank of Nova Scotia (Scotiabank)
Bank of Montreal (BMO)
Canadian Imperial Bank of Commerce (CIBC)

The banks control the majority of Canada’s retail and commercial banking market. They are heavily regulated and strict about onboarding money service businesses (MSBs), payment service providers (PSPs), and more.

Can Your Fintech Get Banked by a Big 5 Canadian Bank?

Your fintech company can get banked by a big 5 Canadian bank if you meet the qualifying criteria. The task will be extremely difficult because MSBs and PSPs are perceived as high-risk clients.

However, getting banked by a big 5 Canadian bank is not impossible. Having the right legal support from a fintech law firm and extensive compliance programs can help you achieve this feat.

What Does a Big 5 Canadian Bank Look for When Onboarding Fintechs?

Despite the challenges, some fintechs do get banked by Canada’s Big 5. Success usually depends on meeting three main criteria:

High Revenue Potential
Strong Compliance Program and Infrastructure
Canadian Physical Presence

If you can show your business has a high transaction volume, rapid growth trajectory, and well-developed AML plus KYC compliance programs, your chances of getting banked increase.

Why Is It So Difficult for Fintechs to Get Banked by the Big 5 Canadian Bank?

Fintech businesses face difficulties in getting banked by the big 5 Canadian banks because of:

Perceived Risk Profile

Fintech businesses, especially those involving crypto services and PSPs are classified as high-risk by the big 5 Canadian banks. This is mainly due to:

The potential for money laundering and fraud
Rapidly evolving business models
Unclear or emerging regulations

Since your business is considered high-risk, banks will impose stricter scrutiny measures before onboarding. Sometimes, your MSB may be rejected from getting banked during the last stage.

Regulatory and Reputational Risk

The big 5 Canadian banks are among the most heavily scrutinized financial institutions in the nation. They must comply with:

AML/ATF rules under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
Guidance from FINTRAC, the Office of the Superintendent of Financial Institutions (OSFI), and provincial regulators

Any perceived lapse in due diligence can damage a bank’s regulatory standing and public trust.

Compliance Burden

Onboarding a high-risk client such as cheque cashers requires intensive compliance review:

Business model risk assessment
AML/KYC program audits
Ongoing transaction monitoring

This consumes time and resources, which many banks believe are not worth the effort for fintech companies. Unless your MSB provides a significant partnering opportunity for the big 5 Canadian banks, you’ll likely be rejected.

How To Improve Your Chances of Getting Banked by a Big 5 Canadian Bank?

Meeting regulatory compliance rules and setting up strict compliance policies can help you get banked more easily. Let’s look at the top steps you can take to improve your chances of getting banked by a big 5 Canadian bank:

Prepare a Bank-Grade Compliance Program

You must create a robust compliance program to get banked by any bank in Canada, not just the big 5. This should include:

Your full AML/ATF compliance policy
A current risk assessment approach
Screening protocols (e.g., sanctions, PEP, adverse media)
Independent audit reports

If you’re registered under the RPAA, banking partners will also look for a thorough risk management framework.

Networking Before Applying

Building relations is important when onboarding a specific bank. Whenever possible:

Attend fintech-bank meetups or conferences
Leverage introductions from law firms, VCs, or advisors
Start with smaller accounts and scale up

Networking will help you meet key players of the big 5 Canadian banks. Attending such events can also enhance your business credibility and reputation.

Work With Compliance Professionals

Working with compliance professionals is one of the most important steps of getting banked by a big Canadian 5 bank. Legal advisors such as Renno Co. & Fintech can:

Review your onboarding package
File your paperwork for getting banked
Coach you for compliance interviews
Provide templates and training materials
Liaise with banking partners directly

A reputable law firm can help you identify weaknesses in your compliance policies and develop a new program.

Consider a Dual-Banking Strategy

Even with the best compliance program in the world, there’s still a chance of getting rejected by a big 5 Canadian bank. A dual banking relations approach is a better idea for your business growth. You can start your journey by getting accounts with:

EMIs
Neobanks
Credit unions

Then pursuing a big 5 Canadian bank in parallel will enhance your chances of onboarding with them. Having previous experience of working with a bank will also prepare you for securing relations with a big 5 bank.

What Makes a Big 5 Canadian Bank Say No: Common Deal-Breakers

A big 5 Canadian bank is likely to reject your onboarding request if your MSB has:

Unclear business model (especially in crypto or DeFi)
No Canadian incorporation or substance
Missing or weak compliance documentation
History of prior account closures or compliance flags
Unwillingness to share ownership or beneficial control information

These common red flags lead to rejection of banking relations without any explanation. Your chances of applying again at the same institute also reduce.

Seeking help from a fintech law firm can help you make the best use of the single shot you get at partnering with a big 5 Canadian bank.

What If You Can’t Get Banked by a Big 5 Canadian Bank?

There’s no need to panic if you cannot get banked by a big 5 Canadian bank. Many successful MSBs, PSPs, and fintech companies also don’t have these banking partners.

Your fintech prospects will also not end if you don’t have a big 5 Canadian bank as your partner. You can opt for excellent alternatives such as:

Tier 2 Canadian banks
Credit unions and trust companies
EMIs and PSPs for cross-border operations

These institutions are more agile and better suited to startups and MSBs.

How Does Renno Co. & Fintech Help MSBs With Banking Relations

Our fintech law firm helps startups and regulated entities:

Build banking-ready compliance programs
Register as MSBs with FINTRAC and PSPs under the RPAA
Liaise with major Canadian banks and financial institutions
Structure international banking strategies that minimize risk

Whether you’re applying to BMO, RBC, or Scotiabank, we can help you prepare a credible, professional, and regulation-aligned onboarding file.

Let Us Help You Get Banked by a Big 5 Canadian Bank

Getting banked by a Big 5 Canadian bank as a fintech is not easy, but it’s far from impossible. If you’re serious about securing a top-tier banking partner, we can help you get there.