Banking in the modern day often doesn’t involve actually going to a branch. Most Canadians would cringe at the mere thought of setting foot into a branch and waiting in line for a teller to pay a bill or take out a loan. While banks maintain their merit in the financial ecosystem, Canadian fintechs like tap-to-pay apps, international transfer platforms, and online investment tools have elevated everyday banking and disrupted traditional financial services.
Fintechs have outdone traditional banks by removing friction from all sorts of routine tasks. Managing money is now something you can do right from your smartphone, whenever and wherever you are. Their offerings are specific and built around real-life needs, rather than one-size-fits-all solutions.
Changing the Way Canadians Manage Money
For decades, managing money was a real chore. It involved spending a chunk of your day making your way to a bank branch, skirting around limited business hours, filling out paper forms, and waiting an entire day to perform the simplest transaction. Checking your balance involved a trip to the ATM, sending money internationally came with hefty fees, and resolving payment errors was nothing short of a nightmare.
Then, fintech companies stepped in to save the day—or rather, to rewrite the rules of how we handle money. Technology played a hand in making all sorts of services and industries more efficient, including financial services. Every fintech business has a bold agenda, whether helping people invest smarter or making cross-border transfers more affordable. And they could manage their money on vacation, in bed, or anywhere they found themselves at that very moment.
The Tap-and-Go Lifestyle
Many of us don’t think twice before tapping our cards on a reader, but the technology behind it involves multiple players and layers. Card networks like Visa, device makers, banks, and fintech companies all play a role in the broader system. For example, digital wallets like Koho pair tap-to-pay functionality with rewards and insights, making the tap more than just a transaction. Payment processors like Stripe enable fast and secure payments for subscriptions and e-commerce for merchants to accommodate their customers. Some fintech businesses work behind the scenes, creating those innovations in security that help protect consumer data and prevent fraud. While other essential players contribute to the system, Canadian fintechs have helped people embrace tap-to-pay technology on a large scale.
Smarter and Safer Online Payments
Nearly every aspect of daily life in Canada happens online. Shopping, ordering food delivery, booking appointments, applying for loans, gaming, and filing taxes are a few of the everyday tasks made easier thanks to safe online payments. Especially in high-risk spaces, like payment processing in online casinos or on unfamiliar e-commerce sites, the security that fintechs promise is incredibly valuable.
In the iGaming space, for example, we’ve got the Canadian payment solution Gigadat. Using the familiar online banking partner, Interac, Gigadat is a Canadian payment solution that facilitates an easy and safe transaction through its in-house security software, Gigadat Secure. It’s so reliable and easy to use because you don’t need to create an account. Instead, you can use your Canadian bank account to confirm payment requests. These benefits make for the perfect payment experience in a previously low-trust industry.
Breaking Down International Financial Borders
It’s one thing to send money locally with peer-to-peer tools, but sending funds across countries and in different currencies has historically been much more complicated. Plagued by high fees, unfair currency conversions, and slow transfer times, Canadians may have actively avoided international transfers in the past. Innovative fintech platforms have changed that, competing with banks to provide streamlined cross-border payments that are substantially more transparent, affordable, and speedy.
Those who have family in other countries, run an international business, or just want to support an overseas business can now move money like they would locally—no more jumping through hoops. Fintech companies like Wise and Payoneer don’t just simplify transfers but even let users open, use, and transfer between multi-currency accounts.
Financial Tools Built Into Everyday Apps
With the robust digital financial ecosystem we have today, banking isn’t done in separate apps and websites anymore. Financial tools are becoming integrated right into the apps Canadians use on a daily basis, and sometimes without us even realizing it. It’s a concept called embedded finance, where you no longer need to switch between platforms. Instead, financial services are built directly into the apps you already use. A great example of this is instant checkout options with digital wallets or buy-now-pay-later options or ride-sharing platforms like Uber that allow you to split fares and pay within the app.
Fintechs are largely responsible for building all the infrastructure that makes these things possible. And because money management feels a lot more like a natural part of everyday life, banking has become less of a formal chore and a more intuitive part of our routine.
The Fintech Future of Banking
Over the last few years, traditional banking and fintechs have taken different routes in how they serve Canadians. While there’s no denying the legacy and stability of traditional banking, fintechs have found ample opportunity to appease the digital-first generation. The more Canadian society relies on technology, the greater the space for fintechs to keep up and shape those modern habits. With technology advancing rapidly, who knows what will come out of the financial space in the next few years and decades? If the road we’re going down is a preview of what’s to come, we’re bound to see even smarter and faster banking ahead.
