The Canadian Competition Bureau launched a market study into technology‑led innovation in the Canadian financial services (FinTech) sector today.
FinTech companies are using technology to change the way that Canadians consume financial services, such as making payments or transfers, investing and borrowing funds. At the touch of a screen on your tablet or smartphone, FinTech innovation can reduce costs and facilitate direct transactions without the need for intermediaries. These innovations provide more choice by unbundling existing products and services and introducing new ones: they can result in more efficient services, lower fees and greater savings for Canadians.
The FinTech sector is evolving rapidly as new products and services are being unveiled and the number of start‑ups entering the industry grows. FinTech has the potential to disrupt the financial services sector, spur innovation and generate benefits for individuals and companies across Canada.
The Bureau’s market study will focus on how innovation is affecting the way consumers and businesses use financial products and services. The study will explore the competitive impact that FinTech is having on the industry, barriers to entry faced by companies, and whether there is a need for regulatory reform to promote greater competition while maintaining consumer confidence in the sector.
In 2014, the financial services sector accounted for approximately 10% of Canada’s gross domestic product. The banking sector alone employs over 280,000 Canadians. The study will examine peer‑to‑peer banking, e‑wallets, mobile wallets, mobile payments, crowdfunding and online‑based financial advisory services. As part of its mandate, the Bureau participates in a wide range of activities to promote and advocate the benefits of a competitive marketplace.
Greater competition leads to innovation that can result in lower prices and increased choice for consumers.
Interested stakeholders are invited to make a submission to the Bureau.