The company sold its US and UK operations to concentrate on the Canadian market for the foreseeable future
Wealthsimple CEO Michael Katchen discussed the company's potential plans for the future, including an initial public offering (IPO) and a focus on Canadian growth, in an interview with BNN Bloomberg.
Despite Canada's banking sector's consolidation, Katchen confirmed Wealthsimple's commitment to remaining independent and dismissed the likelihood of an acquisition by one of Canada's major banks.
“We are pretty committed to the independent path,” Katchen said, adding that the company aims to build “Canada’s leading financial institution in the years ahead.”
While a merger or acquisition isn't on the horizon, Katchen acknowledged that an IPO could be possible in the future. “That’s very much in the cards for us ... it’s not a focus for us right now, but I think that’s absolutely a path that we’ll be on,” he said.
Wealthsimple now manages over $50bn in assets from more than three million Canadian users, with nearly half of those assets deposited in the past year alone.
Katchen credited the company’s growth to its scale and its commitment to leveraging technology to automate back-office operations, allowing the company to pass on savings to its clients.
However, Wealthsimple's expansion into the United States and the UK in 2017 proved challenging. Katchen reflected on those efforts, saying, "It’s hard to do too many things at once, especially as a new business." In 2021, the company sold its US and UK operations to concentrate on its Canadian business.
When asked about future expansion plans, Katchen stated that while the company's ambitions extend beyond Canada, the focus for now will remain on the Canadian market.
Katchen also expressed concern about the future for the next generation of Canadians, particularly due to productivity issues and the state of entrepreneurship in the country. He emphasised the need for Canada to diversify its economy and encourage more innovation.
“I’m a deeply proud Canadian who is always worried about the future of Canada,” Katchen said. “We have some incredible operators and founders down the pipeline ... and we need more of it.”
