The Fintech sector in Canada has seen steady expansion in recent years. We thought of sharing some interesting facts on the most recent technological and financial innovations that are happening all around. Let's get a peek into the Top 5 Canadian Fintech startups to watch from 2023 and the highlights.
Best 5 Canadian Fintech Startups to Watch in 2023
What is an FinTech Company?
The term FinTech is a blend of the words Financial Technology and Financial Technology. Every industry around the globe is adopting automation to speed up and enhance their processes and products. Similar to the financial services industry has taken advantage of the use of technology and automation to invent to speed up, improve efficiency, and make it easier for the process of using their products and services.
Fintech began to emerge during the 20th century. Fintech was born in the 21st century, when technology was applied to finance services in order to ease the business process. But, it has also been seen, it has become more customer-focused in the present.
Examples of Fintech include mobile banking as well as robot-advisory, cryptocurrencies, digital wallets, e-lending, etc.
Startups from Canada A Review
Today, Canada is touted as the Silicon Valley of the north since it has developed its startup culture in a meticulous manner. A start-up is essentially an organization or firm that is still in its early stage of operations. It is funded by family, friends venture capitalists, banks and loans. A healthy startup environment is essential in a country to ensure competitive markets that are healthy and creates employment opportunities. It helps in the development of new ideas, increases productivity etc.
Canada has created a thriving startup culture through diverse programs, including Digital Media Zone, NextAI, Venture Capital Action Plan, Comminitech, Startup Canada and many more. Federal government in Canada has helped in this by providing taxes incentives, grants incentives, loans, and Star-up visas.
| Description | KOHO | KOHO Premium | KOHO Joint |
| Fees for Keeping Accounts | $0 | Amount of $84 (or $9 per calendar month) | $0 |
| Cashback deals | 0.5 percent of all purchases | 0.5 percent on all purchases, and 2.2% on food, transportation and dining out. | 0.5 percent of all purchases |
| Other attributes | Roundups | No foreign exchange conversion fees | Finances shared |
| Secure your card | Roundups | Roundups | |
| Virtual card | Financial coaching | Alerts when your partner makes a purchase | |
| Price match | Savings shared | ||
| 1 international ATM withdrawal per month |
Best Fintech Startups in Canada 2023
Here's a list of most well-known and rapidly growing fintech startups that are thriving in Canada. Canadian landscape.
1. KOHO Financial
KOHO was established as a fintech firm that is aiming to provide more efficient financial solutions for Canadians. It is possible to open a an individual and joint account through KOHO. The account offers it with an annual interest fee of 1.2 percent with unlimited e-transfers as well as that there is no minimum amount. Similar to bank deposits the funds you deposit in KOHO are secured by CDIC. KOHO is essentially an alternative to banks checking account, but at a lower cost and with attractive features.
Koho is a full-service spend and savings account, also has pre-paid credit card, refillable Mastercard as well as an app that is integrated. The Koho debit-style card is frequently called a virtual credit cards and is loaded with cashback offers and other options.
2. Payfirma
Payfirma is an Canada company that processes payments which is designed to help customers in making payments at any time at any location, anytime. With Payfirma you can pay online as well as at the card machine, mobile, and at e-commerce stores. It is a system for invoicing that automates invoices that allow the bill to be issued as a link to the payment will be paid and can be also tracked.
With the Integrations API You can connect your shopping cart, hosted payment page or eCommerce platform by using the open API and start accepting payments from your online environments. It is possible to set up direct debits for bills that are recurring. The information provided to the business is secure in the cloud platforms.
3. Wealthsimple
Wealthsimple is a fintech company that provides a trading account manual, robo-advisory cryptocurrency forex trading, tax filing and a cash account. However, Wealthsimple is a renowned trading platform, it is best recognized for its no-trading commission. We are advised to watch for Wealthsimple in 2023 since it was the first non-banking and no-credit union business to receive an approval on the 18 18 October 2022. It will have gain access to real-time rail payment via Bank of Canada. Bank of Canada.
Real Time Rail Payment System is set to revolutionize the process of making payments in Canada and is designed to allow users to transfer and receive cash and other payments in a matter of seconds all day, every day of the year. While being fast but also focusing on the security of funds. Through access to RTR and RTR, we can expect Wealthsimple to develop and introduce new services and products in 2023.
4. Mogo
Mogo is an online platform for lending that was created in 2003 to provide an alternative for banks. It isn't an actual bank, but rather an FINTRAC licensed and publicly traded business that is listed on the Toronto Stock Exchange. We have listed below the services provided by Mogo:
- Free credit score is based upon Equifax bureau.
- Mortgages that are fixed and variable. To be eligible for a loan, you have to be over your age limit, reside in of Canada or be a creditor with a score of 540, and have an annual salary of at least $13,000 and have a steady job.
- Mogo Crypto is a cryptocurrency exchange service. Mogo Crypto, you can buy bitcoins and trade them.
- Mogo Card is an unpaid credit card that has a an maximum credit balance of $10,000. It's an Visa platinum credit card.
- Mogo Money
- Mogo Protect offers fraud protection.
5. Trulioo
As automation has increased across all industries the process of identity verification has become an essential step in opening any bank account to prevent fraud. Trulioo is headquartered in Vancouver and was established in the year 2011 by Stephen Ufford and Tanis Jorge. The company is an electronic identification and address verification company which was initially used in the past by Google, Facebook and Linkedin. But it is also employed by financial services firms, wealth management companies companies that deal in brokerage, as well as remittance firms as well as payment processing companies and banks today.
In contrast to other fintech start-ups that enhance the customer experience, Trulioo enhances the business processes. It makes it easier for customers to be onboard, and helps in ensuring compliance with Anti-Money laundering and Know Your Customer regulations, which reduces risks and boosts confidence.
It has features such as identification confirmation, AML watchlist and screening ID validation as well as face recognition and liveliness detection, as well as business verification. It makes use of more than 400 data sources from all over the globe, an in-depth customer service team, 24 hours a day customer assistance, advanced analytics and customized reports.
Canadian Fintech Start-ups
Fintech start-ups boost the economy, create a more democratic environment and reduce time cost, and help make the financial services accessible to everyone. But it is crucial to keep in mind that privacy must be of the utmost priority in fintech industry in order to minimize risk of cyber-attacks.
It is essential to follow the proper procedures to safeguard individuals against any threats to security of money. This is what the newest fintech gurus are working on! They want to offer a safe and secure digital experience for users. What do you consider?
Conclusion
In conclusion, these 5 Canadian fintech startups are leading the way in disrupting the financial industry with their innovative technologies and services. Whether it's providing affordable investment management, real-time access to financial information, or alternative banking solutions, these startups are making it easier for Canadians to manage their finances and reach their financial goals. As the fintech industry continues to evolve, these companies will no doubt play a major role in shaping the future of finance. It will be exciting to see what new and innovative solutions they bring to the table in the coming years.
Do you know of any other Fintech firms that we should include on our list? Contact us with your unique Fintech Story and get featured on our list of the Top Emerging and Top Canadian Fintech startups.