Population
39M
Online population
36.7M
Currency
CAD
Population - 39M
At the start of 2024, 81.9% of Canada’s population lived in urban centres, while 18.1% lived in rural areas.
Internet penetration - 94.3%
There were 36.7M internet users in Canada at the start of 2024.
According to Tracxn, as of July 2023, there were almost 3K FinTech firms operating in Canada. Investment in Canadian FinTechs slowed significantly again last year as the number of deals dropped by more than half and values fell nearly 30%, finds KPMG’s latest global Pulse of FinTech report. The Canadian results mirror declining investment globally, which saw deals fall 65% and values plummet 73%.
<aside> 💡 There are some key takeaways from the Quebec FinTech Report 2023:
Investment in Canadian FinTechs dropped to $920M across 109 total deals in 2023, down from $1.2B invested across 208 deals in 2022, according to KPMG’s Pulse of FinTech H2’23. The report includes venture capital, private equity and mergers and acquisitions data compiled by PitchBook.
Canada ranks among the bottom five developed countries for adoption of digital banking, digital B2B services, and fintech solutions. Only 13% of Canadian banking consumers use FinTechs.
Innovation in a market is tied to the availability of talent, which in turn is bolstered by the quality of education. On this basis, Canada is set to support a thriving FinTech ecosystem. It boasts an excellent educational system that produces a high percentage of STEM graduates relative to the population. The nation’s digital skills are growing quickly, too. In 2022, Calgary, Toronto, and Vancouver saw digital skills growth of 6.3%.
<aside> 🦘 The Canadian government has pledged to establish open banking legislation by the end of 2024. In the latest federal budget, officials detailed a two-part legislation strategy due to be implemented in 2024. This will set the parameters for the open, or 'consumer-driven', banking sector. The new framework will include six key components: governance, scope, accreditation, common rules, national security, and technical standards. The Financial Consumer Agency of Canada (FCAC) will play a vital role in this process, having been allocated a budget of C$1M for the fiscal year 2024-2025 to supervise and enforce the new regulations.
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There are a total of 81 banks operating in Canada including 35 domestic banks (Schedule I banks), 15 foreign banks, 27 foreign bank branches — full service, (Schedule II and III banks), and 4 lending branches of foreign banks. Canada has one of the most accessible banking systems in the world – more than 99% of Canadian adults have an account with a financial institution. As for October 2023 Banks contribute approximately 3.6% (or almost $70B) to Canada’s GDP.