A new KPMG report looking at global FinTech activity in Q4 2017 found that AI is becoming a “pivotal technology” for FinTech innovation in Canada and the US.
“Canada continues to make strides to become a global player in AI, driven by Canadian government support and the presence of strong AI innovators at several Canadian universities,” the report reads.
According to the report, FinTech investment in Canada declined in Q4 2017, though annual investment totals reached a record high, even before counting a massive outlier deal in Q2 2017:
The report says that while Canada lags in FinTech adoption compared to the US, its adoption rate is still accelerating rapidly. US investors are also increasingly paying more attention to Canada because of Canada’s stable economy and low exchange rate.
The report also noted the strong government support for FinTech in Canada, noting that blockchain-focused companies were the main benefactors of regulatory bodies’ sandbox initiatives to work with startups.
“Canada is a hotbed for FinTech innovation, with increasingly solid FinTech hubs, a number of world-class FinTech innovators and strong governmental support,” said John Armstrong, KPMG’s national industry leader of financial services in Canada. “Canadian banks are also deeply engaged with FinTech players and constantly thinking about how they can deploy FinTech within their organizations. It’s no surprise PE and VC firms south of the border are looking to Canada for deal opportunities.”
Access the full report here.