LEADING THE WAY IN THE FINTECH SPACE
While fintech may have started as a Silicon Valley buzzword only reaching the dictionary in 2018 , it has fast become an integral part of front and backend operations for a diverse range of firms that handle money . In essence , the term refers to any business that uses technology to improve or streamline financial services and processes . Now standing at the intersection of finance , Artificial Intelligence ( AI ) and data , the global fintech market is predicted to reach a total value of US $ 324 billion by 2025 .
With the effects of the pandemic driving strong growth in almost all digital financial services , the Canadian market presents an exciting opportunity for the fintech sector . As growing companies need cash , new venture capital firms are appearing throughout Canada to service these needs . It is often the ability to attract investment , and fast , that can dictate the winners in any start-up race .
There are many examples of these venture capital firms pushing innovation throughout Canada ’ s fintech hubs . For instance , Radical Venture , a CAD $ 471m ( US $ 381million ) fund with investments in Torontobased financial software companies Sensibill and Drop , aims to support start-ups that it sees as possessing exponential disruptive potential . Or , on the corporate side , Montréalbased Desjardins Capital announced the launch of a $ 45million fintechspecific fund to better ground the institution and its members in the digital ecosystem . As these types of venture capital course through Canada ’ s economic hubs , emerging F & I arenas are thriving . So , let us take a closer look at some of the players pushing forward this innovative revolution , and look at the hubs that are the ecosystem for their success .
Calgary
Calgary is known to many for the famous Calgary Stampede , but its rapid development as a fintech hub is catching eyes in the F & I space . Calgary Economic Development explains the city ’ s appeal to fintech firms as largely “ due to the concentration of capital-intensive companies , high-deal velocity , large deal size , foreign investments and individual wealth .” Accenture supports the claim , pointing to the region ’ s well-rounded base of technology talent as a pull factor . Although Calgary has one of the lower concentrations of digital workers compared to other Canadian cities , it has among the highest overall percentage of technology employment , buoyed by the pool of engineering talent working in the resources industry .
Major sector leaders include ZayZoon , a fintech company that
As venture capital courses through Canada ’ s economic hubs , emerging F & I arenas are thriving enables employees to instantly access their wages on-demand . The company ’ s products and technology deliver improved productivity , employee retention and recruitment . ZayZoon is also a champion of corporate social responsibility and financial wellness programmes .
Meanwhile , Symen , founded in 2016 , aims to scientifically transform the debt recovery industry by combining behavioural science with data-driven insights to empower customers to resolve past due bills . Clients include service providers , financial institutions , and utilities that use its technology to digitally interact with their at-risk customers .
Calgary ’ s reputation as a supporter of start-ups received a major boost when Morgan Stanley paid more than $ 1.1 billion for Solium Capital , a company that provides technology and services to support stock-based incentive plans . Its 3,000 corporate clients employ one million workers . Morgan Stanley stated that Solium ’ s connection to younger workers through the start-up economy was a key driver for the purchase .
Vancouver
British Columbia is another growing market and currently home to over 120 fintech companies . Building on a 2016 analysis from the Conference Board of Canada , which identified Vancouver as a stand-out centre for wealth management activities , the city ’ s key strengths include facilitating foreign direct investment , trade finance and settlement , and retail and corporate banking .
In recent years , the city has regularly been rated one of the top five globally to live in by Mercer , and has continued to attract the big players such as MasterCard , which opened its sixth global technology centre in the city in 2020 . In addition , Amazon and Microsoft have announced significant expansions in
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