Download the 2023 Canadian FinTech Lending Study

Executive Summary for Lenders (from 2022 research):

The Smarter Loans Fintech Lending Canada Study 2022 provides an in-depth analysis of the fintech lending landscape in Canada, including key trends, challenges, and opportunities. Based on a survey of over 1,500 borrowers and more than 70 lenders, as well as interviews with industry experts, the report offers valuable insights into the use of fintech lending by borrowers and the strategies employed by lenders to manage risk and drive growth.

The study shows that fintech lending continues to grow in popularity in Canada, with more borrowers turning to online platforms for their financing needs. The research shows that fintech lending is widely used by borrowers for both personal and business purposes, with small and medium-sized businesses being a key target market for fintech lenders. The report also highlights the importance of advanced analytics and machine learning in the fintech lending industry, enabling lenders to assess creditworthiness and manage risk more effectively.

Despite the growth of fintech lending, the report notes that the industry faces several challenges, including regulatory uncertainty and the need to build trust with borrowers who may be unfamiliar with online lending platforms. However, fintech lenders are finding ways to overcome these challenges by partnering with traditional banks or other financial institutions to expand their reach and provide a broader range of services to borrowers.

Overall, the study suggests that the fintech lending industry in Canada is well-positioned for continued growth in the coming years, driven by the ongoing demand for fast, flexible, and accessible financing solutions from businesses and individuals.

Key Insights (from 2022 Study):

• Fintech lending is becoming an increasingly important part of the Canadian lending landscape, with more borrowers turning to online platforms for their financing needs.

• While personal loans remain a popular form of fintech lending, much of fintech lending activity is focused on business loans, particularly for small and medium-sized businesses.

• The use of advanced analytics and machine learning is becoming increasingly important in the fintech lending industry, enabling lenders to assess creditworthiness and manage risk more effectively.

• Fintech lenders are focused on providing loans to underserved segments of the market, such as small business owners or those with poor credit scores.

• Fintech lenders are able to provide faster and more streamlined loan application processes, allowing borrowers to access funds more quickly.

• Interest rates on fintech loans are generally higher than those on traditional bank loans, reflecting the higher risk associated with lending to non-traditional borrowers.

• Fintech lenders are often able to offer more flexible loan terms and repayment options than traditional banks, allowing borrowers to customize their loans to better meet their needs.

• Regulatory uncertainty remains a challenge for the fintech lending industry in Canada, with many lenders calling for greater clarity on regulatory requirements.

• Fintech lenders are finding ways to overcome challenges by partnering with traditional banks or other financial institutions to expand their reach and provide a broader range of services to borrowers.

• The fintech lending industry in Canada is expected to continue to grow in the coming years, driven by the ongoing demand for fast, flexible, and accessible financing solutions from businesses and individuals.