How Can FinTech Make Banking Better for Canadians?

Official title: Draft market study on technologyled innovation in the Canadian financial services sector

Closed Policy & Studies Economy & Jobs Finance & Consumer Technology & Digital
The Competition Bureau studied whether new financial technology companies face unfair barriers when trying to compete with big banks. They looked at mobile payments, online lending, and robo-advisors. The goal? Figure out what's stopping Canadians from getting cheaper, more innovative financial services.

Why This Matters

Ever wonder why Canadian banking apps feel behind the times? This study looked at why. FinTech could mean lower fees, faster payments, and more choices for your money. But Canada lags behind other countries in adoption. If you've ever been frustrated by bank fees or slow transfers, this affects you.

What Could Change

The Bureau recommended changes to help FinTech companies compete with traditional banks. This could mean easier access to payment systems for startups, updated regulations that don't favour incumbents, and clearer rules for online lending and robo-advisors. Ultimately, more competition could drive down fees and improve services.

Key Issues

  • What barriers prevent FinTech companies from entering and growing in Canada?
  • Should startups get easier access to payment clearing and settlement systems?
  • Are current regulations unintentionally protecting big banks from competition?
  • How can regulations keep pace with rapid technological change in financial services?

What Happened

The Competition Bureau conducted over 130 interviews with 118 stakeholders and received 20 written submissions during this consultation. The study examined barriers facing FinTech in payments, lending, and investment advice sectors, and developed recommendations for policymakers to reduce barriers to competition and innovation.

Key Documents