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Canadian Fintech Market Showed Substantial Growth in 2019

April 27, 2020
By Bob Crawford

Fewer startups were financed in 2019 than in 2018, from 281 in 2018 to 241 in 2019. Plus, the total funding of 2019 was $1.7 million in comparison to $1.9 million in 2019. However, in 2019 a bigger part of deals were startups at early stages. Besides less funding for startups in general, fintech (financial tech) companies got noticeably more funding in 2019 ($241 million) than the year before ($133 million).

The 2019 Canadian Fintech Market Map

All startups mentioned are venture-capital-backed, with $1 million and more in equity-funding, with the potential of growth. Ontario has the biggest number of startups, with 40 fintech companies. The term “fintech” encompasses either a company focusing on the services to the financial services industry or technology companies that create, distribute, and administer financial products themselves. Each company only provides one of these services. A company is categorized according to the primary service that it provides.

Massive Usage of Fintech on Digital Platforms in Canada

Canada is one of the largest users of fintech options through digital platforms. Many million-dollar startups offering new-age financial technologies are based in Toronto or Montreal. Even online business in-country are helping fintech developers implement their achievements in the digital world.

Canadian iGaming space was the first to offer a wide range of fintech options to players. Gamers are very sensitive when it comes to managing funds. They want to have fun, bet their luck and have an unforgettable time, that’s why a wide range of fin-tech options are needed. Players have to be sure that gaming funds are easily manageable. Top casino online platforms in Canada have installed a wide range of financial technologies and leveled up the competition on a global market.

Diversifying fintech options are very important for Canadians. Receiving funds through different platforms with different currencies may have an impact on the value of CAD. online casino and gambling platforms were first to help local fintech companies to easily install and practice. The big boom happened when Canadian banks saw a successful case regarding the iGaming platforms and decided to join the fintech movement. As of now, local influential banks are using fin-tech platforms to make international transactions faster and smooth. 

What Industries Strive for in Fintech Implementation

  • Accounting and expense management – the companies listed under this subcategory provide their services for accounting and tax, expense management, and bookkeeping businesses.
  • Blockchain and crypto – companies provide blockchain technology to financial service businesses or provide blockchain technology, services, and financial products to end-users. Only companies that trade, store and/or use the cryptocurrencies are in this subcategory.
  • Capital markets – companies leverage technology connected to securities issuance, trading, and clearance and settlement processes to capital markets industries or end-users. 
  • Digital banking and financial infrastructure – the companies provide ready-made licensed software product developed by one company and rebranded by another one to the banking industries or provide financial infrastructure technologies and banking software to end-users.  
  • HR, payroll, and benefits – companies provide technology to employers for human resources, payroll, and benefits processes, or provide similar services to the end-users.
  • Insurance – companies provide technology to the insurance agencies or directly to end-users.
  • Payment, billing and money transfer – companies provide services to enable business-to-business, business-to-consumer, peer-to-peer payments or merchants and financial industries or directly to end-users. Also, personal finance companies help consumers to save money, track accounts and invest.

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