Financial technology is an industry that matters to a lot of banks. Not everyone will see the merit of right away, though. In Canada, both Desjardins Group and la Caisse have created a fintech investment fund. The goal is to pump at least $50m into startups and existing project. A remarkable venture, considering Canada is slightly behind the curve in terms of financial innovation.
It is good to see this new Montreal-based fund come to fruition. Fintech is a booming industry and there are plenty of opportunities to explore. However, one needs a dedicated fund with plenty of financial backing to do so successfully. This is where la Caisse and Desjardins come into the picture. With both companies contributing $25m each to the fund, things will move pretty quickly.
A New Canadian Fintech Fund Worth $50m
It is expected several unnamed investors will join the program as well. No official names or number of participants have been announced at this time. We do know the goal is to bring new investors aboard before the year 2017 comes to an end. A very ambitious goal for this fintech fund, that much is certain. Then again, we need some proper investments in Canadian financial technology firms sooner rather than later.
La Caisse chief operations and IT officer Pierre Miron states:
“With its high concentration of talent in information technology and the robustness of its financial industry, all the pieces are in place for Québec to see the emergence of a first-rate fintech industry.”
As one would expect, the goal is to target local firms first and foremost. Anyone focusing on technology related to payments, investments, retention, and client acquisitions is of great interest. Surprisingly enough, it does not appear this new fund will invest in blockchain startups right now. That is a bit of a surprise, although it remains to be seen if this situation changes.
Header image courtesy of Shutterstock