Canadian Banks Partner Up With Fintech Companies

Canadian Banks Partner Up With Fintech Companies

Friday, April 3, 2020 11:07 am


Canadian Prime Minister Justin Trudeau

 

Today, as technology ties people closer together, good-spirited collaboration becomes a more crucial tool in fostering growth, no matter what industry it is.

Canada’s Fintech Ecosystem Desirable for Foreign Companies

Research conducted by CB insights gave way to the creation of the Canadian Fintech Market Map. This map illustrates the diverse markets and companies dominating Canada’s fintech space. It reveals the current structure of Canada’s fintech ecosystem, making it the perfect resource for foreign companies looking to navigate through the current landscape.

Canada’s fintech industry’s success is entirely related to the decisions of government. The fintech industry has seen the rise since the digital charter went into full power. With the help of digital charter, online gaming companies were allowed to install financial technologies. Online casinos implemented financial systems that allowed users to choose different options. The synergy of financial technologies and the gambling sector has allowed gamers to play online casino games with real money and Bitcoin. Installing financial technologies on digital casinos changed the industry for good. Gamers feel safer when there are few options for transactions. Secure payments are very important, especially when it comes to international users. Various payment options that are offered from fin-tech companies help gamers to choose convenient platforms. iGaming is all about pleasure and enjoyment, while transactions and managing funds on casino websites should not be additional hustle and headache for gamers. Canada’s decision to allow more financial technologies on iGaming platforms has a positive impact on the development of both industries.  That could be a good example for Canadian banks to partner with fintech companies and give more options to citizens.

In a nutshell, Canada has created a fintech community that is driven by innovation and collaboration. Through its current roster of fintech companies, foreign corporations looking to enter Canada’s fintech ecosystem can easily determine where they can fit within the space. The idea of expanding to Canada becomes all the more attractive thanks to the talented and skilled professionals, and the top-notch resources offered by both the Canadian Government and the fintech industry

Fintech Companies and Canadian Banks Come Together Despite Past Misunderstandings

There has been a longstanding rivalry between Canadian banks and fintech companies. The traditional training and exposure of banking institutions may have given them a more conservative approach in terms of financial services. It can be challenging to see eye-to-eye with an entity that operates based on technology and data-driven insights.

However, with the emergence of a robust digital economy, comes new technologies suited for every industry. All over the world, countries are adopting fintech as a means to disrupt current markets and create new ones.

The Global Fintech Adoption Index 2019 (GFAI 2019) declares China and India with the highest adoption rates, both at 87 percent. Canada, on the other hand, holds the 23rd spot, with a below-average adoption rate of 50 percent.

The GFAI 2019 also shows that the majority of fintech users are aware of a variety of services offered in the fintech space. These services are categorized as money transfers and payments, budgeting and financial planning, savings and investments, borrowing, and insurance.

Information presented by the GFAI 2019 provides valuable information on how Canada can move past its current adoption rate ranking. Concerning this, Canadian banks are now putting an end to the rivalry. They are making strides in financing and partnering with fintech companies in delivering innovative services and products that could change the way banking and finance are done.

Canadian banks are now seeing the value of fintech. They are opening their institutions as accelerators and incubators that could bring forth new talents, concepts, and ideas, facilitating the quick delivery of technological innovations to the market.

Biggest Fintech Industry Deal for a New Startup – $100 million raised

Wealthsimple, a Toronto-based online investment manager of Power Financial Corp, recently raised a whopping $100 million during one of the biggest investment rounds conducted by the fintech company.

The sole company that made the deal possible was Allianz X, a multimillion investing and global insurance company known for managing trillions in assets.

Wealthsimple says the generous capital given by their Germany-based investor will be used in the development of new products and the improvement of the company’s B2B platform that catered to financial advisers and institutions.

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