August 8, 2018 09:45
Photo : Freepik
The number of investments in companies of financial technology canada (fintech) almost reaches the threshold of total transactions for the year 2017 in full, the report says The Pulse of Fintech firm KPMG International. In fact, for the first six months of the year, 53 transactions were concluded, while there were 66 last year.
John Armstrong, a leading national financial services for the canadian subsidiary of KPMG explains that the changes announced in the federal budget for 2018 and the update of the regulatory framework for financial services ” contribute obviously to the intensification of activities in the canadian sector of fintech “.
Amount less than the amount of the investment
Although the number of transactions in 2018 is on track to exceed that by 2017, the total sum of investments is not equivalent. The investments in fintech in the form of venture capital and mergers and acquisitions amounted to us $ 263 million (US$ MILLION) for the first half of 2018, while the second half of 2017, 510 MILLION US$ have been invested.
“The sharp increase in the number of transactions, however, indicates that buyers are in a hurry to adopt new technology. The canadian hubs of financial technology are developing rapidly, while large financial institutions have become aware of the need to invest in this field to meet the changing needs of their customers, ” adds Mr Armstrong.
The changes in Canada are attractive
KPMG asserts that the modernization of the payments and the promise of a banking system open are in part responsible for the attraction of investors to the country.
“The government’s initiatives should lead to a growth of fintech in canada. The initiative of modernization of the payments and the updating of the Law on banks will create tremendous opportunities for players in the payments environment and the banking system open. Even if these initiatives are still in progress, investors are aware that changes are coming and are positioning themselves accordingly, ” says Mr Armstrong.
The fact that Canada is a leader in the field of artificial intelligence has also been a determining factor, since the topic remains a priority for investors, according to KPMG. The specialists in artificial intelligence, Toronto, Montreal and Edmonton are good, while the goal of investors and financial services companies is to automate certain processes, ” says Mr Armstrong.