Investment in Canadian fintech increased in 2016 while slowing in the US and UK; data from Thomson Reuters says investment in Canadian fintech reached $197.41 million, an increase of 74% from 2015; in comparison, fintech investment in the US was down 30% and fintech investment in the UK was down approximately 25%; the Canadian market is much smaller than the US and UK however its infrastructure and ecosystem are growing; political changes were also less of a factor for Canada in 2016 while the US election and UK Brexit vote created uncertainty for investors. Source
Canada reported significant growth in online and marketplace lending in 2016; fintech growth in the country was also substantial with Canada reporting a 74% increase in fintech investment; a blog post from Aspire gives a roundup of online and marketplace lending activity in 2016 which included many partnerships and equity rounds; also provides predictions for the market in 2017; among its seven predictions are more bank partnerships and increased institutional investment. Source
Canadian robo advisor WealthBar now manages over CAD$100 million (USD$75.93 million) in assets under management; the firm was launched in 2014; it currently offers online onboarding, investment management, financial planning and an individual advisor; its services have also expanded to private investment portfolios and registered retirement savings plans. Source
Diagram has raised $25 million (USD$19.13 million) for a new fintech venture capital fund that will be led by Paul Desmarais III; Paul Desmarais is part of Quebec's Desmarais family which has built a $7 billion (USD$5.36 billion) fortune through investment in the insurance business; the new fund's initial fundraising effort has come from Portag3 Ventures LP and over 50 individual angel investors; the fund will invest in a variety of Canadian fintech companies. Source
Wealthsimple is a Canadian firm backed by Montreal-based Power Financial and they are looking to launch their robo advisory solution to US clients soon; in accordance with US securities law, Wealthsimple received approval to operate as an investment advisor by the SEC in October 2016; there is no account minimums for their product and the first $10,000 invested will be fee free, anything above $10,000 will be subject to a management fee of 0.5%. Source
Bank of Nova Scotia, Canada's third largest bank, also known as Scotiabank, has announced a $1 billion investment in digital technology over the next three years; the initiative will focus on bringing more digital technology solutions to clients who are making fewer transactions in branches; 45% of the firm's investment will be focused on foreign markets including Mexico, Peru, Colombia and Chile; it will also be investing in new facilities for blockchain and artificial intelligence development; the firm expects the investment to help reduce costs and improve future profitability. Source
The UK Financial Conduct Authority and Ontario Securities Commission will now partner on fintech innovation; an agreement between the two agencies will help facilitate expansion for financial technology companies; both agencies will support cross-border business growth and will also share information on trends and regulatory proceedings. Source
Partnership will add 700,000 small businesses from the Vendasta network to the LoyaltyCapital® Network; the Vendasta network includes representation from 1800 media properties and 8000 sales professionals; Vendasta businesses will now have the opportunity to obtain better access to credit financing through the LoyaltyCapital customized multi-lender platform focused on providing credit for businesses with high customer loyalty in their communities. Source
Canadian online lender LendingArch is building out its financing capabilities with the launch of a new solution for medical expenses; the company seeks to provide financing solutions for debt consolidation, home improvement and other areas of personal growth; the medical expenses product will broaden the firm's scope and help support consumers in managing out of pocket medical expenses; customers can access the loan solution individually or at a clinic location; the platform's loans allow for immediate payment to clinics and offer financing terms ranging from 12 months to three years. Source
A husband and wife from Sri Lanka were arrested in Canada for fraud and money laundering; the couple reportedly used fraudulent checks and synthetic identities for fraudulent charges and purchases; both are charged with fraud of CAD5,000 ($3,729) and possession of proceeds obtained of over CAD5,000 ($3,729); the fraudulent charges are an example of the emergence of sophisticated synthetic identities that are more difficult to be detected by fraud prevention systems. Source