The world is growing and the technical advancements in each sector are doing a lot to promote the efficiency and capability of different sectors. New technologies are revolutionizing the small tasks and changing the fundaments. And as a result of this, many industries and sectors have reported growth and development for the better.
The financial market is no exception to these technological advancements. It too hasn’t remained untouched by the technical changes. Because of this, a new wave of FinTech products and firms has been introduced. They offer increase automation and accessibility along with cost savings. Hence, this is a positive move.
But unlike countries like The US and UK that are appearing as FinTech leaders, there are some other countries like Canada too, whose financial sectors are posing some challenges to the development of this sector. Nonetheless, the FinTech sector has not been deterred. In fact, in Canada too it has started appearing as a major hub.
Now if you are interested in knowing more about how FinTech is operating in Canada, then maybe read this overview to find some answers?
FinTech in Canada
Canada presents a unique set of challenges and opportunities for the FinTech sector. This is because unlike the other countries, in Canada the people have an inherent and deep trust in the experience of their banks. Hence, the FinTech sector is seeking an opportunity in this country to partner-up with banks while also competing against them.
What is on our side?
Today the customer experience has become a very important factor for the financial services organizations and people have high expectations. Now in this field, the FinTech businesses usually have an upper hand over their traditional counterparts. This is because-
- FinTech businesses are agile and they are constantly innovating and improving. Unlike traditional banks, they are not chained by the legacy infrastructure and hence they are getting innovating and better.
- FinTech sector also understands the importance of customer satisfaction and the huge role that it plays in the success of a business. Hence, they are prioritizing the user interface which can be easily used.
- Plus, by collaborating with banks the FinTech businesses are also getting a chance to tap into the banks’ decades-long customer-bank relations. Hence, they are being saved from the extra legwork to create a customer base.
What are the challenges?
FinTech sector might be performing well, but It is not all smooth sail. This is because-
- The Fintech companies like the larger institutions have a slower sales cycle. As a result, they have to start with a much stronger position as compared to other sectors.
- Large projects require a big developer team which means big investments. But the financial institutions have got both the capability and the motivation to make this work. And once the partnership with FinTech is formed, it lasts long term.
So, all in all, yes it can’t be denied that the FinTech sector is facing some challenges but it also can’t be ignored that they are doing really good in transforming these challenges into opportunities!
