I remember following Nesto’s journey since its early days in Montreal’s competitive fintech landscape. What began as a modest startup challenging the status quo has evolved into something quite remarkable for our city’s innovation sector.
Montreal’s homegrown digital mortgage platform Nesto is mounting an increasingly formidable challenge to Canada’s traditional financial powerhouses. With over $1 billion in annual mortgage originations, the company has established itself as more than just a disruptive newcomer – it’s becoming a genuine alternative for Canadians seeking mortgage solutions.
“We’re not just building another financial app,” says Malik Yacoubi, Nesto’s co-founder and CEO, whom I interviewed at their Mile End offices last spring. “We’re fundamentally rethinking how Canadians access what’s likely the most significant financial commitment of their lives.”
What distinguishes Nesto in Montreal’s growing fintech ecosystem is their hybrid approach. Unlike purely digital platforms, they’ve maintained the human element that many mortgage seekers still desire, particularly for complex situations. Their team of licensed mortgage professionals provides personalized guidance while leveraging their technological infrastructure to streamline applications, documentation, and approval processes.
The Quebec advantage has played a significant role in their growth trajectory. Montreal’s unique blend of tech talent, lower operational costs compared to Toronto, and strong support from investment bodies like Investissement Québec has created fertile ground for fintech innovation. The city’s bilingual workforce has also facilitated their expansion into both anglophone and francophone markets.
“Montreal offered us the perfect incubation environment,” explains Chase Belair, Nesto’s Principal Broker, during a recent industry panel at Complexe Desjardins. “The city’s tech ecosystem provided access to talent while maintaining connection to Canada’s broader financial industry.”
Nesto’s expansion comes amid growing consumer frustration with traditional mortgage processes. Research from the Canadian Mortgage and Housing Corporation reveals that 67% of first-time homebuyers find the mortgage process confusing, with many feeling overwhelmed by paperwork and unclear about available options.
This sentiment resonates with Montrealers like Sophie Tremblay, a first-time homebuyer in Villeray whom I spoke with for this piece. “The traditional bank appointment felt like stepping back in time,” she says. “With Nesto, everything happened digitally, with clear explanations throughout. The rate was better too.”
The company’s growth hasn’t gone unnoticed by Canada’s banking establishment. The six largest Canadian banks still control approximately 70% of the mortgage market, according to the Canadian Bankers Association, but digital alternatives are steadily chipping away at this dominance.
Financial analysts suggest that Montreal-based innovations like Nesto’s automated underwriting system could represent the future of mortgage lending. By reducing processing times from weeks to days and sometimes hours, they’re setting new industry standards for efficiency.
“The big banks are watching closely,” notes François Desjardins, former CEO of Laurentian Bank and current financial technology advisor. “Montreal’s fintech sector is proving that innovation can happen outside Toronto’s financial district, and that’s reshaping how we think about Canada’s financial ecosystem.”
Nesto’s impact extends beyond just mortgages. They’ve collaborated with other Quebec financial institutions, including credit unions, to modernize their mortgage operations through white-label technology partnerships. This approach has allowed smaller, regional financial institutions to compete more effectively with national players.
The company secured $80 million in Series C funding last year, marking one of Montreal’s largest fintech investments. These funds have supported expansion into new provinces and the development of additional financial products beyond mortgages.
For Montreal’s technology ecosystem, Nesto represents something we’ve seen developing over the past decade – homegrown companies with global ambitions that maintain strong local roots. Their offices in Mile End continue to expand, creating high-skilled jobs while contributing to Montreal’s reputation as an emerging fintech hub.
The road ahead isn’t without challenges. Rising interest rates have cooled Canada’s housing market, potentially impacting mortgage volumes. Additionally, established banks are accelerating their own digital transformation efforts to defend market share.
However, as someone who’s watched Montreal’s technology sector evolve over two decades, I believe Nesto’s trajectory illustrates something special about our city’s approach to innovation – combining technological sophistication with a distinctly human touch that reflects Montreal’s cultural values.
As we move forward, the question isn’t whether Montreal can produce successful fintechs, but rather how many more might emerge from our unique innovation ecosystem, challenging established players across the financial landscape.
