Canada: The Canadian FinTech Sector Has The Potential To Be A World Leader

The FinTech sector in Canada has seen significant growth in recent years and has the potential to grow further as collaborations between FinTechs and regulated financial institutions continue, new and improved regulations are adopted, and a growing number of young tech superstars focus their energies on developing technology applications for financial services in Canada and the world.

Canada is home to a number of financial hubs, including Toronto which is considered a leading international hub. It also has some of the world's top technological talent and the Government of Canada has taken steps to facilitate the relocation of international talent to Canada. Canadians have long been early and enthusiastic adopters of new financial-services technology. From the first automated tellers to mobile payment systems, we have always embraced innovative ways to bank and invest.

Canadian financial institutions have so far welcomed innovative technologies and have collaborated with FinTech firms to improve efficiencies and product offerings.

According to a PwC 2017 Global FinTech Report, the number of financial institution-FinTech partnerships in Canada is much higher than in most other countries. 62 per cent of Canadian financial institutions declared they are actively involved in partnerships with FinTechs and 88 per cent said they would increase partnerships going forward. 

While the FinTech Adoption Index found that Canada lags behind the global average FinTech adoption rate of 33 percent a recent report of the Global Risk Institute in Financial Services titled An Overview of Fintech in Canada found that adoption of FinTech in Canada has reached the Early Majority Adoption phase and is expected to continue to grow.

"Adoption of FinTech in Canada has reached the Early Majority Adoption phase and is expected to continue to grow."

How Do Maximize Our Competitive Advantage?

In some respects, FinTech has been around longer than most people realize. For decades, Canada's big banks have used technology to accelerate workflows, reduce costs and improve the customer experience.

What's new is the speed at which ground-breaking technologies are coming online. Machine learning, artificial intelligence, big data — they're reshaping an entire industry. If we're to achieve out full potential, we need to take a number of steps.

To begin with, we need to ensure that access to private capital and our public markets are sufficiently robust enough to support the development of Canadian companies throughout the development cycle. It is not enough to fund successfully the early stage development of FinTechs. We need to be sure that they have sufficient access to capital to grow into global enterprises where their mind and management remains in Canada.  Governments in Canada have an important role in creating a policy environment that facilitates capital formation for FinTechs, including from individual investors, and institutional investors, including pension funds.

In addition, there is no doubt that many of the federal, provincial and territorial regulatory regimes that touch FinTech ecosystems can be improved. We need to be sure that regulations that were designed for an earlier time are appropriate for an increasingly digital economy. It is important to note that Governments are actively working on regulatory reform projects, including reform of federal financial institution and payments legislation that will facilitate activity by both FinTechs and financial institutions. In addition, Canadian securities regulators are beginning to take steps to clarify the circumstances in which digital currencies can be launched and developed in Canada, without the requirement to comply with securities laws of general application. 

Along with an update domestic regulatory environment, the FinTech sector in Canada will benefit from comprehensive global regulatory standards. Work in that area is getting underway, but until global standards are established, we will need to work hard to encourage FinTech developers to continue to use Canada as their base for global expansion and success.

The FinTech brain drain
Canada's complicated regulatory environment has already driven some innovators and entrepreneurs outside the country. Case in point, Vitalik Buterin. This Thiel Fellowship winner and University of Waterloo dropout is the inventor Ethereum, the blockchain-based operating system and distributed computing platform. Since its invention in 2014, Ethereum has become the foundational software for many FinTech applications. On the surface, this is a true made-in-Canada success story. But the Ethereum team soon shifted operations to Switzerland to take advantage of that country's friendlier regulatory environment.

Reasons for Optimism

With the right leadership, Canada can be at the forefront of the new FinTech economy. This country is home to brilliant technology developers who are creating game-changing financial-services products for a global market.

Canadians have long excelled in the commercializing the risky resource sector. We have every reason to believe that a similar attitude toward extracting the opportunities offered in the emerging FinTech space will become an ever increasing reality in Canada. 

"With the right leadership, Canada can be at the forefront of the new FinTech economy."

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Sign Up
Gain free access to lawyers expertise from more than 250 countries.
Email Address
Company Name
Confirm Password
Mondaq Newsalert
Select Topics
Select Regions
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions