December 15, 2017 09:45
Photo : Freepik
The competition Bureau has published its market study on the technological innovations in the canadian financial services sector.
The report indicates barriers to growth and the adoption of fintech in Canada and provides recommendations to help regulators make the promotion of innovations in financial technology. The Office said that its proposals aim to foster competition and innovation in the ways in which Canadians pay for their goods and services, obtain loans for themselves and their company, and receive financial advice.
Disregard on the part of investors
Some of the specific barriers to their brokerage and investment advice primarily relate to the robots-advisers. The Office says that, while investors use them because they represent a competitive offer, it is possible that costs are poorly understood. Furthermore, the Bureau noted that the cost of the actual set-up of new accounts and the transfer of assets may discourage investors.
Similarly, it is possible that the robots-advisers do not deliver the true online experience that consumers expect, since the signature and the electronic forms are not accepted in any industry.
The regulatory requirements put a brake
The Office adds that the digital environment adds a difficulty to have a constructive discussion to obtain the necessary information to ensure that the investments offered are appropriate for the risk tolerance and the investment objectives of a client.
In addition, hiring representatives from councils and registered agent service to participate in the decision-making in the portfolio and to accept the legal documents in the event of a dispute may increase the operating cost and prevents the development of automated solutions.
Modernize laws and regulations
The report recommends modernizing laws and regulations to encourage the entry and the adoption of new technologies, while maintaining the confidence of consumers and their security in this sector is in constant change.
«The technologies financial have the potential to drastically change the way Canadians access to products and financial services and how they use them. The innovative technologies incorporated by the new companies entering the financial services sector promises to increase the range, improve the convenience and reduce prices for consumers and businesses, » says John Pecman, commissioner of competition, in the report.