Canadian fintech continues to soar as open banking comes to fruition

After seemingly endless deliberations, the Canadian open banking system is finally implemented; a huge win for the already highly successful fintechs that call Canada home.

After circumventing laws that blocked access to the data fintechs need to innovate, Canada’s Department of Finance appointed Abraham Tachjian as head of open banking last week, in another legitimate case. step towards the integration of open banking within their former financial institutions.

This is in addition to the major impact of Canadian fintech both in Canada and abroad. Canadian companies in lending, payments, banking and crypto are among the most successful and innovative companies in the world, although they have not been able to leverage banking services open in their innovation strategies in Canada thus far.

In a statement from the Canadian government, Randy Boissonnault, Minister of Tourism and Associate Minister of Finance, made general comments on the implementation of the new system by open banking.

“Canadians deserve a banking system that is open, secure, regulated, efficient and protects their personal information,” said Boissonnault. “This is an important next step in the process of implementing the recommendations of the Advisory Committee, to bring stakeholders together to design and implement the fundamental elements of an open banking system that benefits both to Canadians and businesses.

As the laws are put in place, Canadian fintech continues to soar. According to a recent LinkedIn post by Tal Schwartz, Senior Project Manager at Noomis Solutions and formerly of the Lenders Association of Canada, Canadian banks and fintech continue to lead the way globally.

In all areas of finance, Canadian companies seem to have their name at the top of the list. Corporate card companies like Jeeves now own over $2 billion, Canadian venture capital firm Portage Ventures is one of the largest in the world with $4 billion in assets.

Online equity trading platform Questrade Financial Group has started offering mortgages. Their competitor Wealthsimple, another Canadian equity trading platform, also said mortgage lending was underway alongside a strong surge in lending.

In the United States, the Canadian giant TD Bank became the 6th largest bank in the United States with the recent acquisitions of First Horizon Bank at the end of February.

Besides the success of the companies themselves, one sign that the Canadian fintech space is doing well is the desire to reconnect in person. The CLA Lending Leaders Summit was recently announced for mid-November, a gathering of a Canadian finance sector whose future was in doubt after pandemic-induced restrictions on their industry. unbanked journalists will be present at the event.

Last modification : April 5, 2022