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The adoption of FinTech is accelerating in Canada



26 July, 2017 09:45

Photo : Freepik

Between 2015 and 2017, the adoption rate of FinTech in Canada has increased from 8 % to 18 %, according to the latest index ofEY. It is, however, one of the lowest rates in the world, the traditional financial services holding good in Canada. In fact, only 18 % of canadian consumers surveyed have resorted to at least two services of FinTech over the last six months, compared to 33 % globally.

«Canadians tend to know more about the options of FinTech that are available to them that two years ago, and this trend will continue,» says Sébastien René, partner and advisory Services leader in information technology EY to Quebec. In regards to the banks and companies of FinTech, we observe the transformation of a mindset of competition into a desire for collaboration. It is increasingly clear that by working together to achieve a common goal rather than compete against, they will be able to innovate more and faster. «

A better knowledge of the FinTech

The trend revealed by EY shows that the traditional banks and the companies of the FinTech feel both the pressure to develop financial services products that are simpler, more transparent and more focused on the customers.

EY also notes that the first reason Canadians have not yet used the FinTech is likely because they do not know them. But this situation could change. According to the most recent survey of EY, 22 % of respondents say that they have never heard of FinTech — or a lot less than the 49 % who said the same thing two years earlier. EY expects that the knowledge of the FinTech increases rapidly, which will increase the rate of adoption future to 34 %.

Partnerships between FinTech and banks

The second reason evoked to explain the low use of FinTech is simply that the respondents prefer to make a call to a service provider traditional to meet their needs. Because of this attachment to the traditional players, FinTech will have to redouble their efforts to establish their brand and carve out a niche in this competitive market.

«Given the strength of the Canadian banking sector, we see many partnerships between FinTech and banks,» says Sébastien René. The banks are looking for ways simpler and quicker to improve their capabilities in digital, for clients and in the office. At the same time, FinTech in Canada are seeking to reach a greater number of customers and need more resources to improve their offers. «

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