Fintech—Canada has been adopting financial technology services at a slower pace than most of its international peers, in part because of the strict regulation that Canadian financial firms are subject to. However, the possibility of more relaxed regulation in the future and Canada’s innovation potential imply that the future for fintech is bright.
Loans—Factors such as higher interest rates, slower job growth, and trade uncertainty will lead to a slowdown in consumer and corporate loans, key sources of income for many banks.
Changing Workforce—Products such as mobile banking and automated advisory services are still on the rise. While these are displacing many lower-wage positions in the sector and putting upward pressure on industry wages, productivity has continued to improve as a result.