Should Canada Remove Barriers to Financial Technology Innovation?

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 why Canadians lag behind other countries in using financial technology apps and services. They found regulatory barriers are holding back innovation in payments, lending, and investment advice. This report recommends changes to help new competitors challenge big banks.

Why This Matters

Ever wonder why Canadian banking apps feel behind the times? This study looked at why. If you've tried peer-to-peer payment apps, robo-advisors, or online lending platforms, you've encountered FinTech. The Bureau found Canada's adoption rate is half the global average. Removing barriers could mean more choices, lower fees, and better digital services for everyday banking.

What Could Change

Regulations could be updated to let new financial technology companies compete more easily with traditional banks. Payment systems might open up to more participants. Rules around online lending and robo-advisors could be streamlined. The goal is lower prices and more innovation in how Canadians pay, borrow, and invest.

Key Issues

  • What barriers prevent financial technology companies from entering the Canadian market?
  • Should regulations be updated to encourage competition in payments, lending, and investment advice?
  • How can Canada catch up to other countries in financial technology adoption?

What Happened

The consultation took place between November 6 and November 20, 2017. The Bureau conducted more than 130 interviews with 118 stakeholders and received 20 written submissions from incumbent financial institutions, FinTech start-ups, and industry and consumer associations. A one-day workshop was held in February 2017 with FinTech stakeholders.

Key Documents