A Few Fintech Trends in Canada We’re Noticing This Fall

The air is crisp, the leaves are falling, and we suddenly want the hot blazing sun back. It’s autumn in Canada!

This week, Fintech.ca reflects on some of the latest news that’s impacting the trajectory of financial technology across the nation.

Fintech = Growth Engine

The tech sector has been rocky these past couple years (let’s be honest; it’s always been a volatile field). But innovation in financial technology continues to be a major driver of growth among Canadian upstarts.

The prime example of the moment is Calgary’s Neo Financial, whose staggering three-year revenue growth of over 38,000% recently rendered it the fastest-growing company in Canada.

Challenging the Big Banks

Competition for banking customers is fiercer than ever as Canada’s longstanding “Big Five” incumbents must today edge out hundreds of feisty rivals.

While most rivals are puny in size by comparison, some fintechs are rising to the occasion with steady market growth. Among them are Vancouver’s KOHO, which just raised a bunch of capital to become our next big bank, and also Toronto’s Wealthsimple, which has accomplished a tremendous amount since launching 10 years ago—and maintains serious ambition moving forward.

Geographical Diversity

Toronto has long been Canada’s epicentre for finance, so it should arrive as no surprise the fact that most Canadian fintech is also based in that region. Yet innovation can spark from anything, anywhere, anytime, and that’s exactly what we’re observing this year.

Uncovering the fastest-growing fintechs in Canada took us from Calgary and Edmonton to Montreal and Ottawa. (Vancouver is also no slouch.)

A.I. – a Unique Edge, or the New Standard?

At the risk of sounding like a broken record, we cannot understate the presence of artificial intelligence in fintech. Some recent examples (of hundreds): Toronto’s Ecomtent, Ottawa’s Bloks.app, Toronto’s Loop, Winnipeg’s Conquest Planning, and Toronto’s Propel. Anecdotally, we reckon it’s among the fields most aggressively adopting the technology, although that’s quite a race to call.

Regardless, it will be interesting to observe whether A.I. becomes a truly differentiating factor for fintechs who develop it or use it best, or whether the technology simply becomes the new standard baseline off which to craft product and services. Something to ponder over your next pumpkin spice latte.