IDC Innovators are emerging vendors with revenue <$100 million that have demonstrated either a groundbreaking business model or an innovative new technology — or both. This IDC Innovators study profiles five fintech-enabled lending solution providers: Borrowell, Financeit, Flexiti, Merchant Advance Capital, and Sqirl Capital. Lending processes in Canada are undergoing transformation from processes used by major banks to more cost-effective and faster processes offered by a growing number of fintech-based service providers utilizing online and mobile devices to receive and manage loan applications. Fintech lenders in Canada are focusing on smaller consumer and business loans that major banks cannot handle profitably today with their current processes.
"Fintech lenders will need to be vigilant as major banks have the ability to quickly introduce electronic loan application processes when they find ways to make it profitable," says Robert Smythe, research associate, IDC Financial Insights.