CAMP, Fintechs Canada draw up blueprint for a more competitive banking sector

To strengthen competition in Canada’s financial sector, the federal government must implement consumer-driven banking and then think bigger, according to a report by Fintechs Canada and the Canadian Anti-Monopoly Project (CAMP). The two organizations recently collaborated to produce a joint submission to the Department of Finance’s consultation on strengthening competition in the financial sector.

“False is the idea that there is always a trade-off between financial sector stability and competition… The major reason that financial crises have not materialized in Canada is Canada’s approach to supervising financial institutions, not deliberate choices by the government to suppress competition.”

Covering a wide range of policy tools, the report recommends

  • Giving financial sector regulators mandates to promote competition
  • Creating a college of regulators to improve regulatory coordination and harmonization
  • Modernizing Canada’s approach to granting bank licenses
  • Expanding access to and promoting fair and level pricing of critical payments infrastructure
  • Completing the implementation of consumer-driven banking
  • Strengthening merger control in the banking sector, and
  • Regularly reviewing the state of competition in the financial sector

“We believe Canada needs a long-range, comprehensive policy agenda— constituting a whole-of-government approach—to promoting competition in the financial sector without compromising its stability,” the report concludes.

CAMP is a think tank dedicated to addressing the issues caused by monopoly power in Canada. CAMP produces research and advocates for policy proposals to make Canada’s economy more fair, free, and democratic.

Fintechs Canada is an industry association of Canada’s most innovative financial technology companies. Collectively serving millions of Canadians on a daily basis, the association’s membership includes Canada’s fintech market leaders, global fintech companies, fintech-friendly financial institutions, and the technology companies that power the credit union space, among others.

Click here to read the full report.