Table of Contents
With the financial services industry swiftly transitioning to the digital medium, fintech companies are establishing modern financing methods to facilitate more convenient transactions. Being a global fintech leader, Canada hosts 1,200 fintech companies, making it a powerhouse in the fintech industry.
Fintech companies in Canada are renowned for revolutionizing how people pay for goods and services. Hence, digital payments have the highest market share in the country’s fintech industry. In terms of market insights, the fintech market’s Digital Investment segment is projected to have a transaction value of $3.89 billion. The Canadian government has also shown its support to this thriving market through the Fintech Growth Fund and the Canadian Fintech Summit.
Canada in the Fintech Industry
Canada has made great contributions to the industry’s global growth, such as the inclusion of contactless payment solutions in financial transactions. Contactless payment takes form in mobile payments and Near Field Communication (NFC), allowing seamless payments through mobile devices with the utmost security and convenience.
Another significant contribution is Canada’s investment in blockchain technology. Canada is home to world-renowned blockchain companies like Ethereum, Blockstream, and Bitfury. Due to the industry’s potential, the government established a friendly regulatory environment supporting innovation and growth within the blockchain sector.
Toronto, Vancouver, and Montreal are considered fintech hotspots in Canada. According to the Findexable Global Fintech Rankings, Toronto alone is home to 400 fintech companies, making it the second-best fintech ecosystem in the world. Meanwhile, Vancouver has a dense pool of fintech startups totaling 352 as of 2023 and flourishing from its proximity to the Asia-Pacific region. Montreal has 150 fintech companies, with the city leaning towards integrating artificial intelligence and machine learning into its current systems.
Notable Fintech Companies and Startups in Canada
Listed below are some notable companies that dominate Canada’s fintech market today:
Founded in 2014, Wealthsimple is one of the most successful fintech companies in Canada. It has raised over $1 billion in revenue, drawing in and retaining over one million loyal clients worldwide. Today, the company offers diverse fintech solutions such as cash management, investing, pension, and trading.
One of its notable innovations is Wealthsimple Trade, a commission-free trading platform that enables traders to trade stock and exchange-traded funds (ETFs). You can access Wealthsimple’s digital platform through its mobile application or web platform to avail of various features like automatic rebalancing, goal setting, and tax-loss harvesting.
With 350,000 loyal users, Koho has become one of the most promising fintech companies in Canada since its founding in 2014. It offers competitive exchange rates and no-fee online banking as it aims to be an affordable alternative to traditional banking services. As a forerunner in innovative digital banking, Koho has earned different accolades, like the Nasdaq FinTech Innovation Award in 2015 and the Top 10 Startups in Canada last 2021.
Koho’s official app allows users to earn cashback on purchasing transactions, create personalized buffets, and open a free checking account. Its best feature is the prepaid Koho Visa card, which can be loaded through credit cards or bank accounts, and used for payments to earn cashback points.
Headquartered in Toronto, Paybright is a game changer in Canada’s fintech industry that offers installment payment solutions. Paybright works with e-commerce platforms and retailers to help consumers split their payments into manageable chunks. It also offers flexible payment methods, such as deferred payments and subscription billing, along with a digital platform that features advanced fraud prevention tools to protect customers’ privacy.
Since its launch in 2009, Paybright has partnered with more than 7,000 merchants and earned CAD $2 billion. In 2020, Paybright expanded its operations beyond Canada and partnered with retailers from America. It has since been known as one of the fastest fintech companies in Canada and North America, garnering several industry awards like the Deloitte Technology Fast 50 and Fast 500 awards.
Borrowell is a credit management services provider based in Canada. It started in 2014 and grew to become an industry leader in the area. Borrowell’s key products and services are credit score monitoring, personal loans, credit cards, financial education, and mortgage services. With these offerings, Borrowell aims to help its users make informed decisions with their finances and achieve their financial goals.
Borrowell partnered with Equifax, one of Canada’s trusted leading credit bureaus, to ensure it has adequate credit and anti-identity theft monitoring in place. Borrowell’s loan amount can go as high as CAD 50,000 with affordable interest rates. Today, Borrowell has become a trusted online lending company with over two million users onboard and earned notable awards as one of the top 500 fintech companies in the world by KPMG.
Sensibill focuses on digital receipt management to help its users track their spending, categorize expenses, and streamline tax filing. With the aid of AI and machine learning, Sensibill’s technology can give personalized spending insights to its users. Its digital platform can also be integrated into existing mobile banking apps.
In 2021, Sensibill was awarded the Best Personal Finance Innovation Award during the Fintech Breakthrough Awards. With over 1 billion receipts and high user satisfaction, Sensibill has expanded beyond Canada into the UK and the US. It has 60 million users worldwide, including the clients of its partner financial institutions.
Canada as a Fintech Powerhouse
In 2023, it is projected that digital investment will be the biggest segment of Canada’s fintech industry, valued at US$3.89 billion. This shows that the fintech industry in Canada is poised for continued growth in the coming years.
Wealthsimple, Koho, Paybright, Borrowell, and Sensibill are only five of Canada’s 1,200 active fintech companies. With the growing demand for personalized financial services worldwide and the advent of artificial intelligence and machine learning, the industry will continue to evolve and expand, making Canada an indisputable global leader in this field.