Join hosts Tedd Huff and Colton Pond in this episode of “Accrued” a Fintech Confidential series presented by LoanPro, where they chat with Tal Schwartz, a top fintech writer and advisor from Canada. Tal shares his expertise on the Canadian fintech market, covering a range of interesting topics.

Tal talks about the differences between the Canadian and US fintech scenes. For example, Canada has unique regional differences, multiple languages, and different financial rules in each province. He explains how these factors make launching fintech products in Canada a bit tricky.

One of the key points Tal discusses is the lack of a formal open banking system in Canada. While other markets have clear rules that encourage banks to share data, Canada is still catching up. However, there is hope that changes will come soon, which could boost innovation in the sector.

Tal also highlights some exciting fintech companies in Canada, like Arbor and Yield Exchange. These companies are making waves with their fresh ideas and approaches. He mentions how business banking and B2B services are areas to watch for growth and new ideas.

The episode also touches on the limited number of sponsor banks in Canada, which affects the growth of banking as a service. Tal explains how this limitation restricts competition and slows down progress.

Mergers and acquisitions are another hot topic. Tal shares insights on recent big deals, like the merger between Fairstone and Home Trust, and Finance It’s acquisition of Simply Group. These moves are changing the landscape of financial services in Canada.

For those looking to expand into Canada, Tal offers valuable advice. He suggests understanding regional differences, identifying underserved markets, and knowing the major players. He also discusses how Canadian fintechs can benefit from organizations like Export Development Canada and C100 when expanding into the US.

Towards the end, the conversation shifts to future trends. Tal talks about the role of AI in fintech, particularly in customer service and underwriting. He notes the importance of regulation to prevent misleading marketing in this area.

Overall, this episode provides a comprehensive look at the Canadian fintech landscape, highlighting challenges, opportunities, and key players. Whether you’re a fintech enthusiast or a professional in the industry, there’s plenty to learn from Tal’s insights.

Don’t forget to subscribe, like, and visit fintechconfidential.com for more updates!

Watch on YouTube

Key Highlights

Discover the Surprising Challenges of Canadian Fintech

In this episode, learn about the unique hurdles faced by fintech companies in Canada. From regional differences to language barriers, discover why launching fintech products in Canada can be more complicated than you might think.

Open Banking: Why Canada is Falling Behind

Find out why Canada struggles with open banking compared to other countries. Learn about the impact of not having clear rules and how it affects fintech growth in the country.

Meet the Future Stars of Canadian Fintech

Explore some of the most exciting up-and-coming fintech companies in Canada. See why these businesses are set to become major players in the industry and what makes them stand out.

The Hidden Impact of Limited Sponsor Banks

Learn how the small number of sponsor banks in Canada is affecting the growth of fintech. Discover the challenges and what it means for competition in the industry.

Big Changes in Canadian Fintech: Mergers and Acquisitions

Get the inside scoop on recent major mergers and acquisitions in the Canadian fintech world. Understand how these deals are reshaping the financial services landscape.

The Growth of Business Banking in Canada

See how business banking is evolving in Canada and why it's a hot area for fintech growth. Find out which companies are leading the way in this space.

How Regulatory Delays Hurt Canadian Fintech

Understand the impact of slow regulatory changes on the Canadian fintech market. Learn why delays in policies like open banking are a big deal for the industry.

AI's Role in Canadian Fintech

Discover how AI is being used in Canada's fintech sector. From customer service to underwriting, see how artificial intelligence is changing the game.

Why Canadian Fintechs Are Eyeing the US Market

Find out why many Canadian fintech companies are looking to expand into the US. Learn about the challenges and opportunities they face when crossing the border.

Top Tips for Expanding into Canada

Get practical advice for fintech companies planning to enter the Canadian market. Learn about the key factors to consider and how to approach this unique market.

Five Major Takeaways

1️⃣ Understand Regional Differences Before Launching

Before entering the Canadian fintech market, it's crucial to understand the regional differences. Each province has its own regulations and financial infrastructure. Tailor your strategy to these local specifics for a better chance of success.

2️⃣ Prepare for Language Barriers

In Canada, multiple languages are spoken, with French being dominant in Quebec. Ensure your fintech product and marketing materials are available in both English and French to reach a broader audience and comply with local laws.

3️⃣ Focus on Business Banking Opportunities

Business banking is a growing sector in Canadian fintech. Consider developing products and services that cater to B2B financial needs. This area shows a lot of potential for growth and can set your company apart.

4️⃣ Monitor Regulatory Changes

Stay updated on regulatory changes in the Canadian fintech market. Rules around open banking and interest rate caps can have significant impacts on your business. Keeping an eye on these changes helps you adapt quickly and stay compliant.

5️⃣ Leverage AI for Better Customer Service

Artificial intelligence is becoming an important tool in Canadian fintech. Use AI to improve customer service, underwriting, and collections. This technology can help you provide a better user experience and streamline your operations.

Links:

Canadian Fintech Newsletter

Website: https://canadianfintech.substack.com/about

LinkedIn: https://www.linkedin.com/in/talbschwartz/

Fintech Confidential

YouTube: https://fintechconfidential.com/watch

Podcast: https://fintechconfidential.com/listen

Notifications: https://fintechconfidential.com/access

LinkedIn: https://www.linkedin.com/company/fintechconfidential

Twitter: https://twitter.com/FTconfidential

Instagram: https://www.instagram.com/fintechconfidential

Facebook: https://www.facebook.com/fintechconfidential

Supporters

LoanPro: As default rates continue to rise and margins compress in lending, financial organizations are searching for solutions that combine operational efficiency with innovation. Look no further, as LoanPro allows lenders to enhance their origination, servicing, collections, and payments using the foundation of a modern lending core. Check out loanpro.io/demo to learn how 600+ financial organizations have modernized their tech stack with LoanPro.

CheckAlt: a game-changer in the financial world: ClearingWorks. Simplify your financial management with a one-stop solution for all your AR needs and with a single login. Intrigued? Visit https://clearingworks.com to schedule your demo today.

MPC the Digital Commerce Event: Why MPC24? As a leader in the fintech space, whether you're a C-suite executive, a technologist, a startup innovator, or a government official, MPC24 offers an unparalleled opportunity to engage with the latest trends, technologies and thought leaders shaping the future of money. Register now and Save https://mpcevent.com/register-now-payment/

Skyflow, the leading data privacy platform trusted by top financial institutions. Protect your customers' data with Skyflow's innovative solutions. Get started at www.skyflowsecure.com

Under: Transform Your Merchant Applications with Under. The Under platform revolutionizes the way ISOs handle merchant applications, offering a seamless transition to digital forms. Say goodbye to outdated processes and hello to efficiency. Discover the future of financial applications at https://under.io/ftc

HAWK:AI - A game-changing approach to compliance. With real-time monitoring, adaptive learning, and advanced AI, it cuts false positives, simplifying your compliance efforts. Upgrade your surveillance with ease. Visit https://gethawkai.com for more intelligent, more effective compliance.

Time Stamps:

00:11 Meet Tal Schwartz: Canada's Fintech Expert

00:11 Meet Tal Schwartz

01:27 AI in Financial Services

02:57 Deep Dive into Canadian Fintech with Tal Schwartz

03:31 Tal Schwartz's Background and Contributions

04:59 Challenges in Canadian FinTech

06:13 The Complexity of Canadian Financial Regulations

08:22 Innovative Trends in Canadian FinTech

09:08 Spotlight on Emerging Canadian Fintechs

10:06 Growth Dynamics in Canadian FinTech

11:27 Challenges in Sponsor Banking

15:48 Clearingworks.com

16:35 Open Banking and Regulatory Landscape in Canada

19:51 Investment Climate in Canadian FinTech

21:19 Mergers and Acquisitions in Canadian Fintech

27:33 Expanding Fintech from Canada to the U.S.

35:39 Future Trends and AI in FinTech

37:50 AI in Canadian Financial Services

40:57 Disclaimer and Final Thoughts

This is a Production of Diamond D3, Media

ABOUT:

Tal Schwartz: Tal Schwartz is the founder of Canadian Fintech and a leading authority in the Canadian financial technology sector. With extensive experience advising Canadian regulators, banks, and fintech companies on financial products and policy, Schwartz brings a wealth of knowledge and insight to the industry. Currently, he serves as a Senior Product Manager at Nomis and previously held the position of Head of Policy and Research for the Canadian Lenders Association.

In addition to his professional endeavors, Schwartz is the author of the widely-read Canadian Fintech newsletter, which offers deep analysis and timely updates on the industry. He is also committed to community service, serving as Chairman of Mount Sinai Hospital's 'Future Sinai' Board and sitting on the board of ACCESS Community Capital Fund, where he aids in providing low-interest loans to new immigrants. A graduate of McGill University, Schwartz is an OnDeck Fellow and a recipient of the prestigious World Summit Award.

Canadian FIntech: Canadian Fintech is a leading source of timely and insightful information on the Canadian financial technology landscape. With over 8,000 subscribers, we are the go-to resource for anyone interested in the latest developments in fintech across Canada. We provide comprehensive coverage of which Canadian fintech companies are raising funds, launching innovative products, and acquiring competitors, ensuring our readers stay informed about the most important industry movements.

Our content is designed to be quick and digestible. In less than three minutes, readers can get a clear understanding of the major themes and trends in Canadian lending, payments, banking, and insurance. Additionally, we offer straightforward answers to complex questions about Canadian fintech, making intricate topics accessible and easy to understand.

Hosts: 

Tedd Huff: Tedd Huff is the Founder of Voalyre and DD3 Media, professional services and advisory firms focused on global payments and marketing. He is also a host and producer of Fintech Confidential.

Over the past 24 years, he has contributed to FinTech startups as an Advisory Board Member, Co-Founder, and Chief Experience Officer, providing strategic and tactical direction for Global Payments OpenEdge, Heartland Payments, Nuvei, and TSYS, among others, focusing on growth while delivering innovation, process improvements and user experience-driven value to simplify the complexity of payments.

Colton Pond: Colton Pond is a seasoned marketing executive with a strong fintech and financial services background. In his latest role, Colton is the CMO for LoanPro's API-first lending platform, aiming to meet the increasing market demands. His track record includes a significant tenure at Truv, where he led the marketing team to achieve a 300% growth in year-over-year revenue. Colton has also held key marketing and sales positions at MX, Lucid, and HealthEquity, demonstrating his ability to drive success and innovation within the fintech sector.

Diamond D3, Media: A media creation, management, and production company delivering engaging content globally