• The last quarter of 2022 saw an uptick in Canadian FinTech deal activity reaching 59 deals, a 40% increase from the previous quarter. This brought total FinTech transactions for the year to 208. FinTech investment in Q4 also increased reaching $530m, a 90% increase from Q3 although overall FinTech investment in the country dropped in 2022 to $2.9bn, a 27% reduction from 2021.
• TouchBistro, an All-in-One Restaurant Management System that offers a point-of-sale system for restaurants, was the largest FinTech deal in Q4 2022 raising $110m in their latest Private Equity funding round led by Francisco Partners. The funds will be used by TouchBistro to accelerate the company’s growth initiatives, including expanding product offerings, core services, and strategic acquisitions as it continues to meet the evolving needs of its customers.
• The Canadian federal government is expected to roll out an open banking system by early 2023, with working groups under way in summer 2022. Supporters claim this system will give Canadians access to a wider range of financial products and services, which include: making it easier to switch financial institutions, reducing fees on transactions and making the financial system more equitable for marginalized Canadians. That includes the millions of consumers without a bank account or who aren’t adequately served by mainstream financial services. The Canadian Prepaid Payments Organization (CPPO) estimated 10 to 20 percent of Canadians are either unbanked or underbanked in 2021. Data collected by Mambu stated that 57% of Canadians see data sharing as their biggest concern with open banking and 42% believe that it is a dangerous use of data sharing.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2023 FinTech Global