It also stopped US expansion efforts after selling its US book of business to Betterment in 2021, and sold its Wealthsimple adviser to Purpose Advisor Solutions as it focused on Canadian consumers.
The company's valuation has also come down from the highs. Power Corp., across several divisions together had an equity interest of 55.1% as of June 30, said the fair value of its holding was $1.5 billion. That's down from $2.1 billion in 2021.
But the company still has an uphill climb from growing globally, whether it's wealth management, trading and trading or its banking business, Katchen said.
It comes as Wealthsimple grows to position itself as a full-service alternative to big banks, including improving its banking services last year, which helped lead to a $20bn increase in the bank's net income.
“We're very happy with the overall product offering,” said Katchen.
Product expansion to include mortgages, credit and insurance
Wealthsimple, which also offers tax services after buying Simpletax in 2019, launched a mortgage earlier this year and is planning other advance loan products and insurance expansion, he said.
All this is part of the company's efforts to compete with the big banks, having more than a billion dollars in assets under management.
While Katchen originally said he'd like to reach that goal within the first 15 years, he's now aiming for a less ambitious timeline within 20 years of co-founding Wealthsimple.
Source link
