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Canadian Bank Nova Scotia Boosts Competition with New FinTech Facility

Last Updated March 4, 2021 4:54 PM
Rebecca Campbell
Last Updated March 4, 2021 4:54 PM

Canada’s Bank of Nova Scotia has announced that it has opened a new FinTech space designed to develop blockchain and artificial intelligence in the hopes that it will push it ahead of competition in the industry.

In a report from Yahoo! Finance , Shawn Rose, Scotiabank’s executive vice president of digital banking, explained that the move was designed to support the bank’s intention of becoming a leader in FinTech. He adds that the move was also in response because of competition growing within the sector.

He said:

It’s accelerating, that competitive fear. We don’t want to lose a day. It’s critical. The people we hire, they need a place to establish these routines.

With similar spaces already established in Chile, Columbia, Mexico, and Peru, Scotiabank is attempting to diversify away from Canada, where growth has slowed in recent years, according to Yahoo! Finance.

FinTech Boost in Canada

Yet, a report from earlier this month found that FinTech funding is thriving within the Canadian nation despite slow funding in the U.S. market sector.

The report found last year funding in the sector in Canada it reached $137.7 million compared to $21.8 million five years ago, and $7.3 million in 2000. Thus demonstrating that the country is committed to pushing itself forward in the FinTech race.

Not only that, but the Bank of Canada announced last June that it sees the potential in FinTech as it realizes that it can help to ensure a smooth evolution of tomorrow’s financial system.

It is due to the nation’s FinTech boost that many believe it bodes well for the national bitcoin industry.

London’s Position Threatened

And yet, with the Brexit results confirming that the U.K. is to leave the EU, and quite possible the single market, many other countries are now taking advantage of the situation.

For them this presents the perfect opportunity to remove London for its current top spot in the FinTech race.

And one of those countries that will also be vying for top position will undoubtedly be Canada despite the fact that it has a long way to go before such an accomplishment can be achieved.

However, the fact that funding in the nation is at an all-time high and they have built a financial technology space aimed at further developing the field suggests that this is a nation that is keen to explore the sector more in its attempt to place Canada among the top countries within the field.

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