The fintech market in Canada has grown at a rapid pace over the past few years. Here are 12 fintech stocks on Canadian exchanges.
The saying “slow and steady wins the race” means “consistent, effective effort leads to success.” At the rate the Canadian fintech market is growing, the same interpretation could certainly be applied to the country.
Financial technology usage in Canada has more than doubled between 2017 and 2019, according to the Ernst & Young Global Fintech Adoption Index. Fintech adoption reached 50 percent in Canada, compared to 46 percent in the US and 67 percent in Hong Kong. Adoption rates are accelerating faster than anticipated, the report further notes, as 2017 figures for Canada stood at 18 percent.
In addition to the data supporting the maturation and growth of this market, data from Statista shows that the leading fintech in Canada is the digital payments sector. Digital payment transaction value has reached US$61.60 million to date in 2019.
According to a report from the Bank of Canada, fintech both has the ability to improve efficiencies in the financial services sector while also exposing additional vulnerabilities. The Federal Government of Canada published a review of open banking to assess the potential benefits, which includes a broader spectrum of products, as well as the possible security liabilities to Canadian citizens. Open banking is the authorization of third part institutions having access to financial transaction data. The report highlights the importance of maintaining Canada’s trustworthy and resilient financial industry.
As adoption is increasing, large financial institutions are integrating fintech into their business models. In July 2019, RBC (TSX:RY) acquired WayPay to improve its accounts payables processes. Earlier in 2019, TD Bank (TSX:TD) partnered with the fintech firm Amount to expand its digital lending platform.
“When we looked to expand our personal lending products with a digital offering, we prioritized finding a platform that could provide a simple, straightforward customer experience, which we found in Amount,” Mark Victoria, head of digital lending at TD Bank, said in a press release.
Privately-held Wealthsimple launched its own zero-commission trading platform in March. Prior to its launch, the company received C$65 million in financing from Power Financial (TSX:PWF). Wealthsimple CEO Michael Katchen told BNN Bloomberg that it may consider an initial public offering (IPO) in the next few years.
With that in mind, here are 12 fintech stocks trading on Canadian exchanges for investors looking to jump into this growing sector. The companies listed below are in alphabetical order and have market caps between C$10 million and C$500 million. All numbers and figures are current as of market close on July 18, 2019.
1. AnalytixInsight (TSXV:ALY)
Market cap: C$27.47 million; current share price: C$0.37
AnalytixInsight applies its machine-learning technology across a number of ventures. Its fintech project Capital Cube is a platform that applies artificial intelligence to analyze over 50,000 securities. Capital Cube provides fundamental research tools in addition to stock screeners for company insight and analytics.
In addition, AnalytixInsight has a 49 percent stake in fintech company MarketWall, which is jointly owned with Intesa Sanpaolo (MI:ISP), based in Italy, MarketWall provides quotes and research for securities trading.
2. DelphX Capital Markets (TSXV:DELX)
Market cap: C$12.11 million; current share price: C$0.15
Through its credit risk technology, DelphX is providing market liquidity by applying actuarial data and risk diffusing technology. Its platform allows its clients to engage in speculative opportunities through risk-hedging options such as covered put options and covered reference notes.
3. GoldMoney (TSX:XAU)
Market cap: C$173.13 million; current share price: C$2.24
GoldMoney is a slightly different fintech company in that its mission is to make gold and precious metals accessible to anyone. Its holding features allow users to buy, sell and hold physical gold, silver, platinum and palladium bullion online as well as spend or withdraw cash directly from the company’s Goldmoney Holding with the Goldmoney Mastercard prepaid card. Reserves can be held or exchanged in nine currencies, USD, GBP, CAD, EUR, CHF, JPY, NZD, HKD, and AUD, without having to pay foreign exchange fees.
The Goldmoney Holding is a custodial account with allocated, segregated and physically redeemable bullion, and it has low risks and costs.
4. Katipult Technology (TSXV:FUND)
Market cap: C$29.88 million; current share price: C$0.44
With over 85 clients, Katipult Technology provides a platform designed to streamline and improve administrative, communication and workflow processes for private placement offerings. Katipult is a fintech company that offers private placement software that is compliant and removes the onerous subscription process for onboarding investors. In addition, the company provides notifications for deal progression or any pertinent details relating to the private placement.
5. MOBI724 Global Solutions (TSXV:MOS)
Market cap: C$16.32 million; current share price: C$0.07
Our next best fintech stocks company is MOBI724 Global Solutions, a company that provides digital incentives such as card-linked offers as well as digital marketing, including mobile payment, loyalty programs and data analytics.
Mobi724’s solutions allow its users — be they card issuers, banks or retailers — to create, manage, deliver, track and measure incentive campaigns all around the world.
6. Mogo Finance Technology (TSX:MOGO)
Market cap: C$95.08 million; current share price: C$4.04
Mogo Finance Technology is focused on assisting its customers with getting control of their financing. Users can sign up for a MogoAccount to access free credit score monitoring, the Mogo Prepaid Visa card and personal loans.
As of July 2019, Mogo has provided services to over 800,000 members, up from 500,000 members in November 2017.
7. NamSys (TSXV:CTZ)
Market cap: C$23.47 million; current share price: C$0.86
NamSys is in the business of developing and producing currency inventory management and control systems for financial institutions, retailers, currency carriers, casino and transit operators and a number of government agencies.
Namsys’ Currency Controller is a cash vault management and logistics system that manages a range of cash processing for banks and cash-in-transit providers, while its Cirreon platform includes bank integration, reconciliation and multi-vendor support.
8. Peak Positioning Technologies (CSE:PKK)
Market cap: C$20.28 million; current share price: C$0.03
Peak Positioning Technologies operates three subsidiaries that provide a bridge to Asian markets. Through Asia Synergy Technologies, it has developed a platform that enables investors to order a wide array of industrial products. The platform, called Gold River, also provides financing capacities for users to place orders.
Its commercial lending platform, Cubeler, is run through a separate subsidiary; through it, property data is analyzed and matched with corresponding credit lenders that are registered on the Cubeler platform. Cubeler then connects users that fit each other’s credit and lending criteria.
9. Points International (TSX:PTO)
Market cap: C$217.82 million; current share price: C$15.73
Points International is an ecommerce loyalty rewards program that connects consumers with retailers, loyalty partners and product partners. Customer engagement is driven through providing loyalty rewards through various transactions. For example, the company offers wallet rewards that are extended onto client companies’ existing platforms, on which users are linked with a number of currencies that offer rewards.
10. RESAAS Services (TSXV:RSS)
Market cap: C$13.82 million; current share price: C$0.24
RESAAS is a network of over 460,000 real estate agents, brokers and members that is designed to improve real estate referrals and listings. The RESAAS platform facilitates deals while providing education and a suite of tools to reduce time and improve efficiencies for the real estate market.
In July, the company launched its AgentFirst application, providing real-time listing features for brokers. “RESAAS has dedicated itself to creating a transparent, compliant and real-time platform for all licensed real estate agents, regardless of which brokerage they choose to hang their licenses with,” Tom Rossiter, CEO of RESSAS, said in a press release.
11. VersaPay (TSXV:VPY)
Market cap: C$77.58 million; current share price: C$1.79
VersaPay operates through segments that include VersaPay Solutions and Point of Sale Merchant Services. The VersaPay Solutions segment focuses on electronic invoice presentment with ARC Software and develops value added payment technologies, including PayPort and VersaPay Gateway.
The company’s VersaPay ARC product is its leading solution and streamlines accounts receivable with a centralized platform and customers for invoicing, collaboration and payments.
12. Voleo Trading Systems (TSXV:TRAD)
Market cap: C$15.06 million; current share price: C$0.14
Our final company on the Canadian fintech companies list is a fintech app. Voleo Trading Systems is a platform for investment clubs. Providing a simplified onboarding process, Voleo is a social app that enables individuals to begin investing, build a portfolio and create a watchlist. In addition to offering a stock trading simulator, Voleo assists users with tax reporting on their club investments.
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This is an update to an article originally published in 2017.
Securities Disclosure: I Dorothy Neufeld hold no direct investment interest in any company mentioned in this article.