A surge in venture capital investments, steady growth, and disruption within the Canada tech scene signify positive things. Digital innovation is happening in various industries and fintech is the undisputed leader. Silicon Valley companies are already running from the US as they got the new spot. Canada, especially Toronto is named the new hub for fintech start-ups. Financial technologies are set to change the way we receive, send and use money online. So, fintech start-ups may have the biggest influence on our daily life in a few years.
Traditional financial institutions and fintech startups are putting competition aside to collaborate for the sake of delivering innovations to the market faster and more effectively.
The government has also opened itself up to providing support and funding to tech startups, as well as enforcing programs and regulations to protect and boost the current tech resources of the country.
Government’s decision that changed the ecosystem
Canada’s road to fintech success was not easy. The country’s government worked hard to created a very solid and secure ecosystem for giant start-ups. After the first wave of fintech start-ups, the Canadian government allowed digital casinos to implement new financial technologies. Gamers were eager to send and receive gaming transactions instantly. That decision became the game-changer as online casinos of Canada have seen the big growth after a few years. Installing new financial technologies allowed online casinos to receive and send funds in different currencies including Bitcoin and other cryptos. Allowing crypto and digital currencies started a new era of Bitcoin casinos in Canada. Flash forward in 2020, Canada has the best online casinos focused on Bitcoin, Ripple, and crypto in general. Getting along with fintech trends, the Canadian casino industry has benefited a lot. Throughout the year, the revenue of casino companies reached a peak of prediction.
Canada with Most influential Fintech Startups in the 21st Century
To date, Canada’s digital ecosystem is a thriving space boosted even more by today’s fintech startups. Because fintech is changing the market and creating more relevant and current services, it is attracting those who find value in the digital economy, and even those who are unfamiliar to it.
The fintech industry’s explosive growth and impressive performance in recent years have created a significant impact in traditional financial sectors, thus affecting the norm of both young and old consumers when it comes to customer experience.
Fintech’s multigenerational effect shows its value and just how vast its reach is. Its appeal to people, regardless of age, gender, and even credit experience, makes Canada’s fintech businesses immensely influential and game-changing all over the world.
Data from the Digital Finance Institute revealed the top fintech companies dominating the current landscape. The list includes well-known startups like Shopify, Mogo, Wealthsimple, Snap Financial, and 56 others with sub-verticals representing insurance, payments and finance, blockchain, and capital markets.
Shopify; A Successful Product of Canadian Fintech
Shopify, a fintech company, now known all over the world, is a multi-channel company focused on providing digital services for merchants and entrepreneurs looking to jumpstart, grow, and manage their businesses online.
Recently, the e-commerce company’s stock value reached record-breaking numbers. More than 45 percent growth in revenue was seen compared to their performance in the past year. This growth stems from the company’s increase in revenue, amounting to almost $505 million in three months during 2019’s last quarter.
After their explosive success, they are now gearing up to establish a more significant presence in Canada, with plans to hire at least 1000 people this year. The expansion will require the employment of mobile and web developers, product designers, product managers, and backend developers.
Toronto Possibly the Most Ideal City for Fintech Hub
According to the latest study, Toronto currently has the largest fintech ecosystem in Canada. This bit of information highlights Toronto as the ideal fintech hub in the whole country. Since 43 percent of Canada’s entire fintech population comes from the region, it has the capacity and workforce to accommodate more innovation and disruption, making it an attractive space for other startups, as well as local and international investors.