Fintech to Dominate Canada’s Main Economic Sectors Within Five Years
Vancouver, BC – The rapid pace of growth for fintech in Canada should be a warning to all corporate leaders according to Cody Green, founder and Co-CEO of Vancouver-based fintech Canada Drives. Fresh off of being ranked as Canada’s fastest growing company in the 2016 PROFIT 500 index, Green is predicting the dawn of a new age for financing and investment across the country.
“Fintech has evolved from small transactions and basic lending to a driving force behind the flow of capital in Canada,” says Green. “The era of rigidity in macro Canadian commerce is over.”
A recent released PwC report found that 83 per cent of financial service executives surveyed believe that one quarter to one third of their business is at risk of being lost to fintech start-ups.
Although once considered as untouchable, global banks and financial institutions are re-evaluating their business models because of the emergence of techpreneurs who are scaling fintech to a level where they can compete around the world.
While the growth of fintech has largely been confined to consumer-facing products and services, disruption is beginning to occur within the B2B transactions that fuel global economies.
As an example, with international banking under far tighter controls and regulations, fintech is beginning to take a lead in providing greater automation for former manual tasks, more seamless transparency and access at all ends of the transactional spectrum, and real-time analytics that are ensuring greater compliance and security. Similarly, e-commerce is prompting fintech to become completely integrated into the logistics that allow for same-day product deliveries in major centres across the world.
Rather than replacing big banks and financial institutions, however, fintechs are now being seen as valuable partners in improving service quality in all areas of financing, says Green.
“Our industry represents a wake-up call for those who for years failed to see the potential applications of technology beyond retail banking and payment facilitation,” adds Green. “Bay Street and Wall Street leaders are beginning to understand that with the alternative financing options that fintech offers, there is great potential to collaborate to improve efficiency, whether for billion dollar deals or in the day to day interactions with consumers.”
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