Footprint of FinTechs in the Canadian Mortgage Market

This report highlights the importance of new financial technology (“FinTech”) products and firms in the financial services industry. It identifies areas of opportunity and threats that key stakeholders could consider to find:

• operational efficiencies
• improve services
• contribute to financial stability

FinTech firms have exponentially increased in number over the past decade in Canada. There is not a clear consensus in the industry with respect to what “FinTech” means. The definition used for this research is where any business is applying disruptive technologies to enable innovation within the mortgage life cycle.

They offer a number of opportunities and risks to the Canadian mortgage market. These should be further explored by policy-makers and lenders to enhance the supply of housing and seek innovative options to house Canadians. This, without jeopardizing the stability of our financial system.

Regulators may benefits from being actively involved to:

• ensure FinTech firms are ready to face potential new international entrants.
• respond to the potential market demand push on technological innovation likely coming from COVID19.

Author:

CMHC

Document Type:

PDF

Date Published:

November 5, 2020