The Competition Bureau is undertaking a study of the state of financial technology (fintech) in Canada that aims to ensure that regulation doesn’t end up stifling the sector’s development.
The federal agency announced on Thursday that it has launched a market study into the emerging fintech sector that aims to examine how innovation is affecting the way consumers and businesses use financial products and services. The study will also look at the competitive impact of fintech on the financial services sector, barriers to entry, and whether there needs to be regulatory reform to enhance competition.
“The fintech market study that I am launching today will provide guidance to the Bureau and regulators, to nurture an environment that allows Canada’s fintech companies to innovate, grow and compete globally,” said John Pecman, Canada’s Commissioner of Competition, in a statement.
The study will look at peer‑to‑peer banking, e‑wallets, mobile wallets, mobile payments, crowdfunding and online‑based financial advisory services such as “robo-advisors.” It will not cover Blockchain technology, crypto-currencies, or the insurance sector.
The Competition Bureau aims to publish a report on the results of the research in the spring of 2017. In the meantime, it is calling for preliminary input from both the fintech sector and the financial services sector on the study by June 30.