Fintechs Canada is calling on the Competition Bureau to use its market study on small and medium-sized enterprise (SME) financing to recommend reforms that would strengthen competition and improve access to credit for Canadian businesses.
In its submission, the association says Canada’s SME financing market is less competitive than those in peer jurisdictions, with structural barriers that continue to favour traditional lending models. As new business models and underwriting approaches emerge, it argues that these barriers are making it harder for innovative lenders to compete and serve underserved businesses, including micro-businesses and firms with non-traditional revenue patterns.
“The Competition Bureau’s market study addresses a critical question for Canada’s economic future: whether SMEs can access the competitive financing they need to invest, grow, and contribute to productivity,” said Adriana Vega, executive director of Fintechs Canada.
Fintechs Canada supports the Bureau’s market study and has recommended that it:
- examine access to government-backed SME financing programs to ensure fair participation across lenders
- advocate for competition mandates for financial regulators
- support the timely implementation of open banking to improve SME financing
- review bank chartering and supervision to identify barriers to entry
- assess how payment system delays affect SME cash flow and financing needs
The association says these reforms would help create a more competitive SME financing market without compromising financial stability or consumer protection. “Promoting competitive neutrality across lender types will encourage entry, expansion, and innovation in SME financing,” the submission says.
To read the full submission, click here.
