Finance is divided into several segments namely; payments, infrastructure, consumer credit, small and medium enterprises (SME’s), loans, and insurance products. All these segments are in the process of making technological changes to cope with the increased competition and desire by consumers to receive better services.
Financial Technology in Canada
According to, Franck Peltier financial technology entails companies that offer banking and financial services to consumers incorporating innovative and at times revolutionary technological solutions.
Benefits of Financial Technology
One of the benefits is access to financial services can now be availed to low-income households who could previously not be reached. Technology has ensured that more people can be reached by financial services than before when only a few could be served. Therefore, Fintech promotes equity all over the world. Commercial technology has led to increased security of customers’ data through the use of biometric data and encryption of messages. The enhanced security has in return given people confidence to use financial services. The second one is the conveniences that come with using financial technology because consumers can now make use of their Smartphones and tablets to access financial services from wherever they are. The businesses offering financial services can, therefore, provide most of their services online to satisfy the need of consumers to manage their finances without having to walk into the banking halls. Thirdly, the type of technology being applied by financial institutions has also enhanced financial services by easing the process of issuing invoices and collection of payments. In return, customer relations have been improved meaning more business for the commercial providers.
Improvements in Financial Technology in Canada
In 2018, Canada has experienced a shift in their financial technology thanks to cloud computing, peer to peer networks, and mobile phones. Newer technologies such as blockchain and artificial intelligence have also enhanced Fintech. The changes have enabled startup companies to join the financial field while at the same time seeing to it that the existing companies in Canada improve their services. The USA and UK have been leading when it comes to financial technologies mainly because their governments offer monetary incentives to allow innovations. However, Canada has also been trying to improve her financial technology field over the years. Bank of Montreal, Royal Bank of Canada, National Bank of Canada, Canadian Imperial Bank of Commerce, the Bank of Nova Scotia and Toronto Dominion Bank are the “big six” that are expected to lead in financial technology so that they can influence the bankers to change their financial habits. Canadians have been found to be reluctant in adopting the financial technology, but if the “big six” lead the way, the masses are likely to follow suit. Ontario and Toronto are some of the largest financial technology hubs in the world. Canadian universities are also known to produce top talent in technology. It, therefore, means, if the financial institutions work together with the available talent, the country will be leading in financial technology in the coming years.