Canada is home to several financial hubs including some of the world’s top technological talent. There has been significant growth in the FinTech sector in Canada as of late with potential for even more advancement.
With much optimism, Canada will continue to welcome new innovative technologies as well as improve efficiencies and product offerings.
Considering the abundance of cutting-edge technologies that are being introduced, such as AI, machine learning and big data, the FinTech industry is likely to see a substantial change in the coming years.
Believe it or not, the FinTech industry has already been significantly impacting Canada for years. Whether it be automated tellers or mobile payment systems, we have already been implementing technology to reduce expenses, improve workflows, and enhance customer service.
There has been a consistent collaboration between FinTechs and financial institutions to grow and improve financial services in Canada.
According to a PwC report in 2017, Canada has among the highest financial institution-FinTech partnerships in the world with 62% of institutions already in business with FinTechs.
On top of that, 88% of these financial institutions want to increase their relationship with FinTechs to seek further growth and benefits.
Currently, the adoption of FinTech in Canada has reached the Early Majority Adoption phase and will continue to see growth in the coming years.
That being said, the FinTech Adoption index found that Canada only has a FinTech adoption rate of 33%, which is lower than the global average. There are some downfalls regarding the FinTech sector in Canada, such as the complex regulatory environment, that can sometimes work against innovators and entrepreneurs.
For example, Vitalik Buterin, inventor of Ethereum, moved his company to Switzerland to operate under more lenient regulations. Ethereum, a blockchain-based distributed computing platform, has now become the foundational software for numerous FinTech applications.
It was the complicated regulatory environment that deterred Buterin from fully launching and expanding his business in Canada. This country is home to numerous innovators creating game-changing financial services and we want to do our best to not drive them away.
Moving forward, the rapid introduction of game-changing technologies will assist Canada in reaching its full potential and maximize our competitive advantage.
There are several steps to be completed in order to fully maximize our potential with the largest being modifications to our domestic and global regulatory environments.
With respects to Canada’s federal, provincial and territorial regulations, we want to ensure they encourage a digital economy and move away from regulations designed for earlier times.
The government is already working on regulation reform projects that will enable and support the activities of FinTechs and financial institutions.
From a global point of view, standards that can be applied comprehensively on an international level need to be established. Although these have not yet been implemented, Canada will be able to serve as the international base for global expansion.
All in all, with the appropriate steps taken, Canada has the potential to be a world leader in the FinTech industry. Whether it be the numerous financial hubs or the top technological talent, there is a great base and environment to build on moving forward. Canada has developed into a great home for the FinTech sector and encourages continuous innovation and advancement.
For companies in the FinTech sector or those simply partaking in innovative activities, contact EVAMAX today to discover the entitled benefits and funding you are missing out on.