In response to the Competition Bureau's Public Consultation, The Canadian Lending Association (CLA) has issued a response for the Bureau to consider in its recommendation. It highlighted 2 main areas for the Bureau to consider in its recommendations:
- Harmonized Regulation - the CLA recommends that regulators continue to work to harmonize regulation across both the Federal and Provincial levels in an effort to keep barriers to entry low for new entrants. Intuitively, one can understand that complex and fragmented regulations is more harmful to new entrants and can work to keep them out of the market and inhibit innovation in the country.
- Clear and Unified Policy - the CLA recommends that policymakers identify a Fintech policy lead for Canada across the levels of government to guide and facilitate Fintech development in the country. This individual will be a single point to advise on relevant regulation and keep Fintechs focused on consumer needs as opposed to complex regulations.
For those unaware of the the study conducted by the Bureau, it essentially studied 3 main areas: Payments and payment systems, Lending, and Investment dealing and advice to draw conclusions and form recommendations for financial sector policymakers, regulators, industry participants, subject matter experts, and consumers.
In order to encourage innovation and competition within Canada, it is imperative that governing bodies work together to collectively understand the current state, align on a unified approach, and develop goals for the future of the country in this space. Canada is definitely ahead of the game with respect to AI in the Montreal hub, however, there are leaps and bounds being made worldwide for wide Fintech adoption with the advent of regulatory sandboxes, Fintech specific innovation centers, and increased consumer trust & adoption. I'll be following this!
CLA Responds to the Competition Bureau’s FinTech Public Consultation - Canadian Lenders Association
CLA Responds to the Competition Bureau’s FinTech Public Consultation Toronto, Canada, November 20, 2017 – Canadian Lenders Association (CLA) responds to the Competition Bureau’s public consultation […]
Join in on the conversation with Aqsa Zubair when you subscribe to Future of Financial Services.