Canada's sixth-largest bank expands its education savings footprint, adding 436,000 RESP beneficiaries and $6 billion in managed assets
National Bank of Canada has entered into a definitive agreement to acquire Embark Student Corp., one of Canada's largest direct-to-consumer Registered Education Savings Plan (RESP) providers, in a deal valued at approximately $226 million.
The announcement signals a strategic push by the Montreal-based big six bank into the education savings market - a space that financial advisors and wealth planners increasingly flag as underserved.
Embark, headquartered in Toronto, manages RESPs for approximately 436,000 beneficiaries nationwide and holds more than $6 billion in assets under management. The acquisition is expected to strengthen National Bank's wealth management offering for advisors serving young families looking to maximise government grants alongside longer-term financial planning.
What the deal means for clients
For existing Embark customers, there will be no immediate disruption. Embark's daily operations will continue as usual, with government grant applications, RESP fund investment, and digital account management all maintained without interruption.
Nancy Paquet, Executive Vice-President, Wealth Management at National Bank of Canada, said the deal is "strongly aligned with our savings and investment advisory strategy," combining Embark's digital capabilities with the bank's existing strengths to deliver a "best-in-class education savings experience."
Andrew Lo, CEO and President of Embark Student Corp., said the partnership reflects a shared commitment to making RESP access broader. "Joining forces with National Bank accelerates our mission to make education savings accessible to every Canadian parent," Lo said in a statement.
Structure and timeline
The transaction will be implemented via a plan of arrangement under the Canada Business Corporations Act, subject to approval by the Ontario Superior Court of Justice. Closing of the acquisition is expected by mid-fiscal 2027, subject to court and regulatory approvals.
Embark Student Foundation - a not-for-profit organisation and Embark's sole shareholder - will transfer its RESP undertaking to Embark at closing, retaining its promoter role for a transitional period until that responsibility moves to Embark in mid-2027, pending required governmental approvals.
The acquisition is expected to reduce National Bank's Common Equity Tier 1 ratio by approximately 10 basis points upon closing.
For advisors, the deal is worth watching. The RESP market remains a key planning touchpoint for Canadian wealth managers - particularly as rising post-secondary costs push education savings higher on client priority lists.
National Bank's entry at scale, backed by Embark's established digital platform and national brand, could shift expectations around what bank-led RESP solutions look like. For background on how advisors approach RESP products and education savings planning for clients Wealth Professional has previously covered the category in depth.
