Last week, Fintechs Canada called on the government to manage emerging risks in the payments ecosystem and launch a review to better understand the state of competition in Canada’s banking sector.
The federal government recently launched a consultation on upholding the integrity of Canada’s financial sector. With the federal financial sector legislative framework up for review anyway, the government is asking Canadians to share their perspectives on the structure of the financial sector, risks to national security, and consumer protection, among other things.
The association, which is the unified voice of Canadian fintech, called on the government to better understand how the structure of the sector may be undermining the interests of Canadians. Reporting the findings from research Fintechs Canada commissioned from McMaster University, the association recommended the government launch a review of how to promote responsible competition and innovation in the financial sector.
Right now, Canada has many financial sector regulators. None of their mandates is to ensure that the sector is sufficiently competitive and, thereby, responsive to the interests of consumers. What’s more, due to the federal and provincial divide of powers, there are financial services organizations that are not overseen by any federal financial sector regulator.
Fintechs Canada also called on the government to better manage the risk of certain types of fraud. Around the world where there are real-time payment systems, fraud is on the rise and can undermine trust in the integrity of national payment systems.
For the association’s full submission, click here.
