In order to meet the needs and expectations of a newer generation of customers, fintech companies, banks, and regulators have to collaborate closely on developing and revising banking rules.
Adam Nanjee, Head of Financial Technology at MaRS Discovery District, has spoken about what consumers are looking for, and how MaRS is taking the lead on connecting entrepreneurs with banks to drive a new ecosystem.
Why Fintech Can’t Go It Alone
Fintech, short for financial technology, covers everything from investing apps and digital wallets to the software banks use behind the scenes. In most industries, a startup with a better product can simply launch it and take customers. In finance, that’s much harder.
Money is heavily regulated, for good reasons: people need to know their savings are safe, and lenders and payment companies have to follow rules on privacy, fraud and money laundering. A startup that wants to hold deposits, move money or give investment advice usually needs a licence, a partner bank, or both. That’s why Nanjee’s point about cooperation matters. In Canada, a small number of big banks hold most customer relationships, so for many fintech founders the realistic path is to work with them rather than around them.
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MaRS and the Toronto Fintech Scene
MaRS Discovery District, in downtown Toronto, sits at the centre of that effort. It describes itself as “Canada’s anchor innovation hub,” and offers startups and scale-ups commercialization support along with connections to capital, customers and talent. In 2016, Nanjee’s job was to make those connections in financial services, putting early-stage companies in front of the banks that could become their customers, partners or investors.
Regulators started meeting startups halfway too. The Ontario Securities Commission now runs an Innovation Office that aims to support “responsible innovation” by “promoting greater collaboration among innovators, regulators, and market participants.” That’s very close to the three-way cooperation Nanjee describes.
Open Banking: The Rules Catch Up
The biggest rule change for Canadian fintech since this article was first published is open banking, which Ottawa now calls consumer-driven banking. The idea is simple: you should be able to safely share your own banking data with another financial company, such as a budgeting app or a lender, without handing over your banking password.
Canada moved slowly. The Department of Finance first said it would examine open banking in a 2017 consultation paper, and Finance Minister Bill Morneau launched an Advisory Committee on Open Banking on September 26, 2018. A public consultation followed in January 2019. The government released policy statements on consumer-driven banking in 2023 and again in its 2024 Fall Economic Statement, which aimed for implementation in 2026.
That long timeline is a good illustration of Nanjee’s message. Open banking only works if banks, fintech companies and regulators agree on the technical standards, the privacy protections and who is liable when something goes wrong. None of the three can do it alone.
What Happened to Canadian Fintech
Despite the slow rules, Toronto produced some large fintech companies after 2016. The clearest example is Wealthsimple, founded in Toronto in 2014 as an investing app. In October 2025, it announced an equity round of up to CAD $750 million at a post-money valuation of CAD $10 billion, and said it had reached $100 billion in assets under administration, double the figure a year earlier.
Wealthsimple’s growth shows both sides of the cooperation story. It competes directly with the banks for customers, but it has also relied on large financial institutions as investors, including Power Corporation of Canada and IGM Financial, which both took part in that 2025 round.
What It Means for Fintech Founders
The practical lesson from 2016 still holds. In finance, regulation shapes the product as much as the technology does, so it pays to understand the rules early and to talk to regulators before launch, not after.
Partnerships with incumbents aren’t a sign of weakness either. Banks bring trust, licences and distribution that a startup would take years to build. The founders who do best tend to treat the big institutions as possible customers and partners, not only as competitors, which is exactly the kind of matchmaking hubs like MaRS set out to do.
Frequently Asked Questions
Why do fintech companies need to cooperate with banks and regulators?
Finance is heavily regulated, so a startup that wants to hold deposits, move money or give investment advice usually needs a licence, a partner bank, or both. Adam Nanjee of MaRS argued that fintechs, banks and regulators have to work together on banking rules.
What role did MaRS Discovery District play in fintech?
MaRS, which calls itself Canada's anchor innovation hub, connected early-stage fintech companies with banks that could become their customers, partners or investors. Adam Nanjee was its Head of Financial Technology in 2016.
What is open banking in Canada?
Open banking, which the federal government calls consumer-driven banking, lets people safely share their own banking data with other financial companies. Ottawa launched an advisory committee in 2018 and its 2024 Fall Economic Statement aimed for implementation in 2026.
How have regulators worked with fintech startups?
The Ontario Securities Commission runs an Innovation Office that aims to promote greater collaboration among innovators, regulators and market participants.
Which Toronto fintech company grew the most after 2016?
Wealthsimple, founded in Toronto in 2014, announced an equity round of up to CAD $750 million at a CAD $10 billion valuation in October 2025, and said it had reached $100 billion in assets under administration.