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How is Fintech Affecting Canada’s Financial Services?

Published On: December 22, 2020

Whether you have earned your FRM certification or financial planner certification, or you are in the middle of a Canadian securities course or certified financial planner course, it is important to stay on top of the latest developments in the financial industry. Financial services are constantly growing and evolving, and even the smallest changes can affect the entire industry.

It should come as no surprise that fintech is one of the biggest change factors in the financial services industry right now. Technology impacts every industry in unique ways and the financial services industry is no exception. The fintech sector has made changes on both the global and national levels. We are going to explore some of the ways fintech has affected Canada’s financial services industry.

What is Fintech?

Before we get into how fintech affects the financial services industry, it’s important to understand what fintech is. Simply put, fintech is short for financial technology. The term covers a broad variety of companies and applications from start-up companies using technology to offer new and existing financial services, to tech companies who provide digital payment tools.

Fintech Companies and Big Banks in Canada

According to PwC Canada, the fintech sector in Canada is highly unique due to how Canadians perceive big banks. Canadian consumers are highly trusted in Canada, which leads many fintech start-up companies to explore collaboration options with these big banks. These collaborations allow start-up companies to gain access to a big bank’s large customer-bases and established customer relationships. In contrast, many other markets have seen a rise in “Challenger Banks,” banks that rely on new technologies to compete directly with big banks.

The Digital User Experience

Whether they’re challenging existing financial institutions or working alongside them, fintech companies are focused on providing the best user experience through their platforms. Fintech is constantly innovating and adapting, finding new ways to utilize data and reinvent their infrastructure to improve their customer’s experience.

Fintech relies heavily on data and, in Canada, the banks hold some of the most valuable data. Gaining access to critical data is another reason why fintech companies seek to align themselves with large financial institutions in Canada.


As more and more processes get automated in every industry, there’s always the question of when your own job will become fully automated. Luckily for financial planners, that time is not yet, but so-called “robo-planners” are able to provide unbiased financial planning advice through an online platform. These automated financial planners are able to offer a more affordable financial planning option for individuals who might not be able to afford a professional financial planner otherwise.

Of course, robo-planners are not capable of dealing with every single financial scenario. A certified financial planner will be able to offer guidance on complex financial situations, whereas a robo-planner is more suited to straightforward financial planning situations. Financial planners can also work with their automated counterparts to capture more leads, offer more comprehensive services, and expedite certain financial planning processes. Itis unlikely that automated financial planners will ever fully replace their human counterparts, but their growing use in the industry is sure to lead to more exciting opportunities and developments.

Stay Relevant in Finance

Keeping up with the latest financial services trends and knowledge can be a daunting task. One of the best ways to ensure you’re staying relevant is to stay educated. Ashton College’s financial services courses will help you learn new skills and work towards important certifications to advance your financial services career. Register now for one of our upcoming courses and stay at the forefront of the financial services industry.


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