John Landry of the Peoples Group says the future of finance in Canada will be built on an ecosystem.
In Canada, several institutions control the financial services infrastructure, rails and regulations. This structure gave us the stability we have today, but it stifled growth and innovation by limiting consumer choice. Canada's financial foundation is something we should be proud of. Its stability—consisting of well-regulated institutions, stringent capital requirements, and a prudent approach to risk—has allowed us to weather the 2008 crisis, the pandemic, and recent geopolitical shifts relatively unscathed.
This is also one of the reasons why we are now paying the price for the slow pace of change.
Our once innovative financial sector, home to the world's first ATMs and pioneers of debit and wire transfers, is starting to fall behind. Real-time payments remain a promise, not a reality.
Financial innovation in Canada has stalled, and the longer we delay, the less we will grow.
Stability through progress
For emerging fintechs and startups, the barriers are high: slow adoption, unclear regulations and limited access to core banking functions.
As a result, companies like Zum Rails, a Canadian FinTech company founded in Montreal, have successfully expanded in the US thanks to a more flexible regulatory environment and flexible banking ecosystem. After raising C$10.5 million in a Series A round in 2024, CEO Miles Schwartz moved the company to Miami in September 2024 to lead its U.S. expansion. He cited a “larger, more competitive FinTech environment and banks eager to innovate” as key advantages the U.S. offers over Canada's more centralized banking system, which is dominated by five big banks. These factors made scaling to unicorn status much more feasible in the US market.
As an executive in the technology sector, I believe fintech companies deserve banking partners who are disciplined, transparent and focused on the long term.
Those who exist to provide regulated banking infrastructure and access to railroads without channel conflict. We don't try to control relationships with consumers; we're here to support innovators who are doing things differently, often in areas that the big players have overlooked.
This includes challenger banks, payments startups, wealth and insurance companies, to name a few. What they all have in common is the need for a partner who understands innovation and compliance and can help balance the two.
Canada's regulatory system is based on principles: we are given general restrictions, but not necessarily a detailed map.
We need to engage regulators proactively, not reactively. We are eager to hear what is allowed: we need to ask, clarify and collaborate. This is how we have earned trust and maintained strong, compliance-oriented relationships.
What needs to be changed
If we want to build a more modern, competitive financial system in Canada, we can start by accelerating payments modernization, continuing to expand access to infrastructure, correcting regulatory ambiguity, enabling open banking, and promoting greater collaboration between banks, fintechs and regulators.
Much of this acceleration is coming from the government, which is encouraging. see the next phase of open banking legislation included in the upcoming federal budget.. It is critical that industry players work with the government to maintain momentum and catch up with Canada in the global market.
Fintech is not a fringe issue. This is essential infrastructure, and our economy cannot afford to continue treating it like an experiment.
It's not just about faster payments or better apps; it's about creating a financial system that reflects the way all people live and work today. It's about giving consumers more choice, increasing business productivity and supporting Canadian innovation so they can thrive right here at home.
Bottom line
The future of finance in Canada won't be built by one big bank or one shiny app. It will be built on an ecosystem that encourages and values ​​collaboration over competition, flexibility over bureaucracy and results above the headlines.
We are proud to play our part in this system. We pride ourselves on working with innovators. And we're committed to moving this conversation forward because Canada shouldn't be caught up.
The idea is simple: empower the next wave of established financial institutions in Canada and do this by creating the infrastructure, partnerships and trust mechanisms that allow them (the traditional players) to grow without losing what got them to where they are now (stability and security). We don't innovate just to shake things up, we create a space where banks and credit unions can feel confident trying something new and stay connected to the real needs of Canadians.
The future of finance is not about breaking what works, but about expanding it so we can provide the innovative and scalable financial products Canadians need to succeed in a digital world.
John Landry is President and CEO of Peoples Group with 28 years of international financial services leadership experience in the banking sectors of the United States, Canada, Australia and Europe. Founded in 1985, Peoples Group is a trusted Canadian financial institution that works alongside challenger banks, fintech companies, brokers and merchants to create a more vibrant and competitive financial ecosystem.
