Fueling Fintechs: The Hidden Opportunity for Canadian Banks

Building strategic fintech and sponsor banking partnerships is the hidden engine driving the next generation of Canadian financial services and digital payment apps. While many legacy institutions view startups as a competitive threat, the most successful banks are pivoting toward a model where they provide the underlying infrastructure for card issuing and embedded finance. This session reveals how a collaborative approach allows banks to monetize their balance sheets and regulatory compliance while fintechs focus on delivering superior, high-velocity user experiences.

The technical complexity of maintaining strategic fintech and sponsor banking partnerships involves navigating a web of anti-money laundering requirements, real-time ledger management, and tiered risk frameworks. Industry experts in this panel discuss the shift toward Banking-as-a-Service models where the sponsor bank acts as the licensed entity while the fintech manages the front-end brand. For Canadian institutions, this represents a massive opportunity to capture volume in segments like gig economy payouts and niche corporate spending that were previously difficult to serve through traditional retail channels.

Furthermore, developing strategic fintech and sponsor banking partnerships requires a robust technological bridge that can handle the scale of modern digital transactions. The dialogue emphasizes that the most resilient partnerships are built on transparency and integrated compliance monitoring systems. As the Canadian market matures, the move toward strategic fintech and sponsor banking partnerships is becoming the standard for any bank looking to unlock high-growth revenue streams without the overhead of customer acquisition for every individual account.

This session provides critical insights into the following areas:

• The operational requirements for banks to support high-volume fintech card issuing.
• Managing regulatory risk and compliance within a shared banking infrastructure.
• Evaluating the long-term ROI of sponsor banking versus traditional retail competition.

Watch the full panel discussion to understand how to design and execute strategic fintech and sponsor banking partnerships that drive market growth.