Are you interested in gathering information about the Best Fintech Companies in Canada? Here we shall be highlighting the most popular and fast growing Canadian fintech startups.
Canada has some of the best fintech companies amongst the fintech unicorns across the globe. That is because Canada is home to some of the top-notch and upcoming fintech companies. The country has startups and established companies operating across every single fintech subcategory.
Although Canada does not receive the same kudos for innovation and technological development as the United States, the Canadian fintech industry has been expanding with hundreds of new startups supported by record levels of investment.
About the Canadian FinTech Sector
The Canadian FinTech sector has been experiencing consistent growth since 2017, and its investments doubled in 2018. According to statistics, there were 241 fintech deals in 2019, bringing in $2.7 billion of investment. The industry had a setback during the pandemic but has experienced a strong recovery in the first quarter of 2021. The pandemic expanded many technology-backed business practices because financial institutions now rely more heavily on Fintechs.
Additionally, investors are now supporting early-stage smaller fintech companies solving pandemic-induced challenges. Their total investment has surpassed the figure recorded in 2020 by 15%.
Over the years, Canada has seen an enormous increase in fintech investments. While for some companies, expansion plans have been slowed temporarily by the COVID-19 pandemic, for others, the quarantines and digitalization have provided an unprecedented tailwind. To save you time searching, we have filtered hundreds of Canadian financial technology companies providing innovative financial solutions for customers.
Top 5 Fintech Companies in Canada
Let’s have a look at some of the leading companies in the Canadian fintech sector:
1. KOHO Financial
KOHO Financial was founded in 2014 by Daniel Eberhard, Jonathan Bixby, Joshua Bixby, and Mike Benna. Headquartered in Toronto with funding received of over $50 Million. The fintech company offers its users another way to spend their money with an application-based banking platform that aims to simplify the financial products available to everyone.
The platform helps users complete their day-to-day banking operations. It offers tools such as goals, cash flow projections, group spending, spending insights, and classifications. These enable users to manage their expenditures and banking operations whenever they want to.
Users use their regular bank account to fund their KOHO account and spend the money through KOHO prepaid cards to get their rewards. The platform provides two types of cards to choose from, a popular regular card and a premium option. The premium card earns users 2% cash back on groceries, transportation, and eating and drinking. Furthermore, the KOHO Financial app works seamlessly with Apple Pay and Google Pay.
CB Insights released the annual list of the 250 most promising private fintech companies in the world. Guess what? KOHO was the only Canadian contender to have made in this fintech list.
2. Borrowell
Borrowell was established in 2014 by Andrew Graham and Eva Wong. It is headquartered in Toronto with a $72.2 Million investment by Silicon Valley Bank, DMZ, Gaingels, Hedgewood, White Star Capital, Clocktower Technology Ventures, Portag3 Ventures, RFI, Freycinet Ventures, and others. Borrowell developed a simple, safe and convenient way to connect borrowers and lenders. It makes financial steadiness possible for everyone.
Borrowell also provides free access to your credit score, weekly credit monitoring, and score improvement ideas, making the app a great resource for people looking to improve their credit to get approved for a loan. It has provided over 1.5 million Canadians with ​free credit scores​, automated ​credit coaching​ tools, and AI-driven financial product recommendations based on their credit profile. The best part is that Borrowell is free and does not charge consumers for its services.
3. Neo Financial
Neo Financial is a technology and financial company founded in 2019 by Andrew Chau and Kris Read. The company received funding of CA$ 50M through Investors like FJ Labs, Inovia Capital, Thomvest Ventures, Valar Ventures, and others. Neo Financial aims to build a better financial experience for all Canadians by providing spending, savings, and rewards programs to its users. The company partnered with leading financial institutions to give their users a safe and secure way to spend and save.
Neo Financial does this by offering a credit card with significant rewards. The credit card is issued by ATB Financial and supported by the Mastercard network. They also provide a savings account that offers a competitive 1.30% APY in interest, higher than a traditional bank. The Neo Savings account is provided by Concentra Bank, a CDIC member institution. It is also eligible for CDIC deposit protection.
4. Hardbacon
Hardbacon was co-founded in 2017 by current CEO Julien Brault as a one-stop shop for all your financial decisions and tools. The app helps Canadians make better financial decisions by providing the tools, information, and insight to navigate their finances. It can also be connected to your bank accounts, credit cards, and investment accounts. These allow you to gain a complete picture of your finances.
Hardbacon works as a planning app where you can add financial goals and turn your ambitions into realities. It also works as a budgeting app that allows you to track how and where you spend your money. Additionally as an investment tracking app that provides premium financial data on mutual funds, ETFs and stocks, portfolio analysis, and stock market alerts. Lastly, as a savings app with special comparison tools for financial products.
The app also has online calculators that help you make smarter financial decisions on everything. These include paying off debt, planning for retirement, and the life insurance you need.
5. FundThrough
FundThrough is a fintech startup that helps small business owners solve their cash flow challenges. They achieve this by offering loans to small companies that sell to bigger businesses. That is, they pay business owners in cash while waiting for their customers to pay. Then collect a 2.5% fee after the invoice is paid. FundThrough technology also enables it to approve new clients in minutes and provide its clients with the cash they need quickly.
Also, there are no commitments or long-term obligations. These cut out the 40-day average waiting period for businesses by 97%.
Are you Interested in stock investing, not to miss out the Best Online Stock Brokers in Canada
Best Fintech Companies in Canada
Over the years, there are many top Canadian fintech companies, increasing the growth of the financial technology sector in the country. The country also recorded 241 fintech deals in 2019, bringing in more than $2 billion of investment. This has provided an excellent opportunity to develop, test, and showcase new technologies in Canada.
If you are interested in working in such fintech companies or participating then Canada hosts some of the best fintech meetups. Lots of prominent gatherings are organized to cheer the fintech enthusiast, investors and even entrepreneurs.
Are you a small business or even a bigger one? You may like learning about Best Business Accounts in Canada and Best Accounting Software for Small Business
Do you know about any other fast growing fintech company in Canada? Do you wish to be a part of this Best Fintech Companies list? Send us an email with details about your finance cum technology startup. We will review it and your unique idea might become a part of our top fintech companies collection.