TORONTO, ON–The FinTech lending industry in Canada continued to evolve this year in a number of significant ways. While many of these changes were initiated by the pandemic, others continue along trends that have been developing over a number of years.
According to Smarter Loans’ State of Fintech Lending in Canada 2020 Study, which gathered the feedback of 2,597 Canadian FinTech lending customers, there is a fast-growing demand for digital accessibility of financial products in Canada.
As Canadians stayed home longer, adoption of FinTech products has accelerated dramatically. 71 percent of respondents indicated that they now manage more of their finances online than 12 months ago.
The research study also reveals that while FinTech adoption in some industries is further along than others, there is a general growing willingness in the market for digital financial products. These include (but not limited to) personal loans and commercial financing, credit and mortgages, everyday banking such as chequing and savings accounts, insurance, (including life, home, auto and business insurance), investing, and international money transfers.
Some of the other highlights from the study include:
–Overall rating for the Canadian lending industry is 3.3/5, down from 3.4/5 in 2019.
–Online search continues to dominate as the primary method of discovery and research of various financial products.
–People feel more informed about financial products in 2020 compared to 2019 and 2018.
–Time to funding is within 1-2 days for small consumer loans, but much longer for commercial loans and mortgages.
–Women more likely to spend longer than men researching and doing more due diligence when approaching financial products online.
–Significant differences in customer experience and satisfaction between different provinces and age groups.