{"id":390,"date":"2018-06-13T03:33:00","date_gmt":"2018-06-13T03:33:00","guid":{"rendered":"https:\/\/fintechcadence.com\/2018\/06\/bdc-canadian-fintech-summit-20-banks-moving-towards-collaboration\/"},"modified":"2020-09-02T22:29:09","modified_gmt":"2020-09-02T22:29:09","slug":"bdc-canadian-fintech-summit-20-banks-moving-towards-collaboration","status":"publish","type":"post","link":"https:\/\/fintechcadence.com\/fr\/blog-posts\/bdc-canadian-fintech-summit-20-banks-moving-towards-collaboration\/","title":{"rendered":"BDC Canadian Fintech Summit 2.0: Banks Moving Towards Collaboration"},"content":{"rendered":"

Peter Misek, Partner BDC IT Venture Fund, opened the BDC Canadian Fintech Summit 2.0 held in Toronto on April 17th and 18th 2018, with a bold statement.<\/p>\n\n\n\n

He stated that Canada and the US are very much alike when it comes to startups they produce, so the scalability problem that everyone keeps talking about isn\u2019t really a problem. The real problem lies in the miniscule number of startups that Canada creates, including those in Fintech.<\/p>\n\n\n\n

This is not to say that things haven\u2019t gained momentum over the past few years. Montreal, Toronto and Vancouver are ranked among the top fintech hubs in the world. But on on a more granular level, of the 100 leading fintechs in the world, only 6 are Canadian.<\/p>\n\n\n\n

There are certain features particular to Canada that have kept it\u2019s fintech ecosystem behind the eight ball. It is among the few countries in the world that went unscathed during the 2008 Financial Crisis, primarily because of extremely stringent banking regulations.<\/p>\n\n\n\n

Consumers, therefore, have been quite satisfied with the the country\u2019s banking system. In other words, they didn\u2019t really want things to change. According to a report by EY<\/span><\/a>, Fintech adoption rate in Canada is close to 18%, almost 1\/5th of the adoption rate in China and half of that in most developed nations.<\/p>\n\n\n\n

But the new “pokemon generation” expects a lot more. Growing up with smart gadgets that put consumer experience at the center of everything, they expect their banking experience to be as simple as buying a song on their phone.<\/p>\n\n\n\n

On top of that, a bigger threat is looming on the horizon. Tech giants such as Amazon, Apple and Google have been playing around in the finance space for sometime now. At the end of the day, they have more data on payments and transactions than many Canadian Financial Institutions, which gives them a strong advantage over the incumbents.<\/p>\n\n\n\n

Moreover, these tech giants won\u2019t be entering the Canadian market 3, 5 or 10 years down the line, some of them are already here. Alipay set up shop in Canada a couple of months ago and is looking to provide savings and lendings services in Canada within the next 2 years. As any economics enthusiast would agree, these activities are the first step towards creating a legitimate full-fledged financial institution.<\/p>\n\n\n\n

All this is to say that the time when we think about Montreal vs Toronto or Toronto vs Vancouver  is over. What really matters is Canada vs Rest of the world. Banks and startups across Canada need to collaborate and innovate.<\/em><\/p>\n\n\n\n

Banks Working with Fintechs: Table Stakes?<\/strong><\/h3>\n\n\n\n

Indeed, many banks are stepping up. Approximately 82% of financial institutions are looking to collaborate with Fintech startups over the coming years.<\/p>\n\n\n\n

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