In recent years, the Canadian fintech ecosystem has experienced considerable growth. Anchored on this promising bit of information, Canada is hopeful to witness new collaborations, especially between fintech companies and institutions from the traditional finance sector. Along with Canada, Nigeria has implemented fintech traits in the traditional economy. It’s no hidden fact that most African countries depend on traditional business sectors. According to the latest statistics, Nigerian fintech companies raised more than 2 billion dollars since 2012. Nigerian fintech service can reach only 40% of Nigerians, citizens who are connected to the internet. The country still has to go a long way and it’s a positive sign that Nigeria’s fintech industry is following the proven footprints of Canada.
Greenlight from the Canadian government to fintech companies
Canada is very popular because of liberal decisions. The government gave the green light to the digital economy as they have created a roadmap for a few decades ahead. Along with the digital economy, fintech is a very important space. Fintech industry growth started back in 2012 when the government asked gaming websites to implement different financial technologies. Casino websites successfully installed financial technologies on their platforms. That decision turned out to be successful because different financial technologies attracted the attention of international gamers. Logic is simple – gamers have to feel comfortable playing on a particular platform. Gamers want to play games and managing funds is secondary. People who love playing do not have to think about managing funds, slow or unsecured international transactions. In the last decade, the Internet has opened the door to many global users for Canadian casinos while the best of them implemented the latest financial technologies and offered international users a secure platform. After the first wave, both sectors: digital gaming and fintech have seen undisputed growth.
Canada’s Fintech Eco-system Set to Grow in 2020
A recent collaborative study by Accenture, McMillan, and the Toronto Financial Services Alliance delved into Canada’s ranking and position in the fintech space. It also tackled the areas that needed improvement in this aspect.
Currently, Canada has a 50% adoption rate of Fintech solutions (40% in Nigeria). This piece data places the nation in the 23rd spot out of 27 countries trying to disrupt the finance sector.
In addition, there is a high concentration of fintech companies in the Kitchener-Waterloo and Toronto areas emphasizing the region’s potential in aiding the expansion and growth of Canada’s burgeoning fintech ecosystem.
Another factor set to grow Canada’s fintech ecosystem is the Federal Government’s support. Funding extended by the Canadian government will be able to sustain research and development, and at the same time, show the world just how essential the fintech industry is in securing Canada’s future.
The only thing left is for Canada to establish a fintech hub competitive enough to be on par with countries like the United States, the United Kingdom, and Singapore. All these places have built and developed a location dedicated to exploring and growing fintech solutions.
Toronto, a Potential Fintech Industry Hub
Kitchener – Waterloo, and Toronto, also known as the Toronto region, is an important area with the potential to become Canada’s fintech industry hub.
The region, already an established area booming with buildings and infrastructure, is home to a solid foundation of well-known financial institutions, the best research facilities, and a diverse talent pool. It is a location that boasts of low operating costs and an environment conducive for disruption and innovation.
These resources can be leveraged by both the Canadian Government and fintech industry players to transform Toronto into an even more attractive space. Developing Toronto into a culture-based fintech hub can inspire fintech investors and companies to come together and work towards boosting Canada’s changing fintech ecosystem.
More importantly, this kind of change will significantly benefit the whole Canadian economy. Building on the existing talent and available resources, the nation will be able to elevate Canada into becoming a fintech giant in the coming years.
Banks Now Acknowledge the Power of the Fintech Ecosystem
The Canadian Bankers Association expressed its firm commitment to pursuing technological innovations. In line with this, they have decided to assume a more active role in fintech developments, by supporting and nourishing both in-house undertakings and external collaborations.