Sector data has found that FinTech funding in Canada reached an all-time high last year in twenty years despite slow funding in the U.S. FinTech market.

According to PitchBook, which is used by the U.S.-based National Venture Capital Association, funding in the sector in Canada reached $137.7 million last year compared to $21.8 million five years ago and just $7.3 million in 2000, reports Reuters.

Last June, the Bank of Canada announced that it sees the potential in FinTech as it can help to ensure a smooth evolution to tomorrow’s financial system.

Speaking to Payments Canada in Calgary, Alberta, Carolyn Wilkins, the Bank of Canada’s senior deputy governor, said that blockchain technology could help reduce the time it takes to clear and settle syndicated loans and save up to $20 billion a year in back-office expenses.

Canada’s FinTech prominence also helps to pave the way for bitcoin in the country.

An interview with CCN.com in October with Gerald Cotten, CEO of Canadian Bitcoin exchange Quadriga, said that the FinTech industry is doing a great job at pushing Canada among the top countries. Not only that, but the fact that the Bank of Canada has developed its own digital currency, the CAD-Coin, demonstrates that it’s keen to stay up with competition for its consumers.

FinTech on the Rise in Canada

According to figures from Thomson Reuters [PDF], venture capital investment activity in Canadian companies continued at a rapid race in the first three quarters of 2016. From January to September a total of $2.5 billion was invested in 446 deals.

In dollar terms, this represented the best first nine months of any calendar year since 2001, while the number of deals done was the most since 2005.

And yet, while the nation is improving its position in the FinTech race, it still falls behind other nations.

Reuters states that while funding in the U.S. sector has slowed, 2016 still saw investments reach $4.27 billion.

Slow Growth in Other Nations

It’s reported that a decline in investments in the U.K., which fell by around 25 percent, was down to the Brexit results, while the U.S., which dropped by 30 percent, was due to the U.S. election.

Canada, however, appears to have avoided any potential turbulence. Even though its market is considerably smaller than that of the U.K., the U.S. or Singapore, it has great infrastructure for companies to establish themselves within its FinTech sector.

With the commencement of 2017, the industry in Canada is expected to continue its upward trend further establishing itself as a likely contender in the FinTech race.

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