Canada’s fintech sector is finally getting some of the things they’ve wanted for years. But is it too little, too late?
Driving the news: We’re only halfway through the week and there has already been a lot of news that fintechs should be paying attention to:
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The Bank of Canada issued a report saying a digital currency would likely be necessary in a future where physical cash is economically irrelevant.
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Interac is planning a big investment into its operations and updating its services, including its half of the work on Real-Time Rail (RTR), a system that would process payments instantly and embed data that allows for more innovative services.
- Industry Minister Francois-Philippe Champagne encouraged the Competition Bureau to take a closer look at Big Tech’s dominance in mobile wallets, following the lead of regulators in the U.K. and EU.
Why it matters: There is movement on three of the four biggest headaches for Canada’s fintech sector, which has lamented the lack of systems, regulations, and competition that have spurred innovation in other countries.
- The fourth is open banking. The legislative framework for open banking passed last month with the spring budget, but the Department of Finance is looking at late 2025 or early 2026 for it to actually go live.
- Like open banking, RTR has also faced massive delays, being pushed to 2026 from its initial planned launch in 2019.
What they’re saying: Those working in the fintech sector are optimistic that these things are finally getting attention, but worry that the damage might already be done.
- “We’re just starting to wrap our minds around what innovators in the early 2000s were doing. By the time we’re done, what innovators are doing now may create new problems that make these policy initiatives obsolete,” says Alex Vronces, executive director at Fintechs Canada.
- Andrew Dale, SVP of operations financial products is more skeptical, since Canada’s few major banks must cooperate to implement open banking and RTR, leaving SMBs at a disadvantage.
Zoom out: Andrew Graham, co-founder and CEO of Borrowell, adds that the sluggish movement on these projects adds to the idea that Canada is challenging for financial innovation, making it harder for fintechs to raise capital.