Investment into Canada’s financial technology sector clocked in at US$2.4 billion across 113 deals in 2025, according to data collected by PitchBook.
These numbers—down from a record high in 2024–were powered largely by three major deals: A US$898 million private equity buyout of Converge Technology Solutions by H.I.G. Capital; Wealthsimple’s US$536 million equity raise; and Ripple’s US$200 million acquisition of Rail.
Dubie Cunningham, a partner in KPMG Canada’s Banking and Capital Markets Practice specializing in fintech, says that the investment activity of 2025 suggests investors are seeking mature and stable Canadian fintechs with strong customer penetration and scalable platforms.
It’s a trend she anticipates continuing.
“The investment appetite for Canadian fintechs will continue to grow in 2026,” Cunningham argues, “as investors prioritize quality, scale and strategic fit, signalling a market that is maturing and aligning more closely with long-term value creation.”
Traditional institutions are facing more competition than ever as “challenger banks” continue to gain steam, she adds.
“Canada’s challenger bank market is poised for momentum in 2026 as newer entrants launch more competitive products, improve customer experiences and strike new partnerships,” Cunningham posits.
The rollout of Canada’s open banking framework later this year “will also serve as a catalyst for more investment in the sector,” she said.
Broken down by vertical, artificial intelligence fintechs received the most funding deals (29), followed closely by crypto and blockchain innovators (26).
Cybersecurity and wealth-tech firms, meanwhile, garnered just two deals each.
“We’re seeing a rapid acceleration of investor interest in AI-focused fintechs, driven by the sector’s ability to unlock efficiencies and create new value through automation and advanced analytics,” remarked Kareem Sadek, who functions as National Technology Risk Services Leader for KPMG Canada.
As financial institutions “modernize their operating models, they’re looking for scalable AI solutions that don’t just streamline processes, but fundamentally reshape how decisions are made,” Sadek stated.
With “stronger data governance practices and rapidly maturing regulatory guidance, investors now have greater confidence that AI fintechs can deliver transformative impact in a controlled and responsible way, and that will accelerate investment in AI,” he commented.
Sadek also predicts that, as Canada’s “new stablecoin regime starts taking shape in 2026, we expect a significant uptick in investor interest across the digital asset ecosystem.”
Clear standards for stablecoin issuance and reserve management “reduce regulatory ambiguity and open the door for broader adoption of blockchain-based payments, tokenized assets, and other enterprise grade digital asset solutions,” according to Sadek.
“With enhanced regulatory certainty, digital assets are positioned to become a bigger part of investors’ fintech portfolios,” he believes.
In terms of stages, investments were relatively balanced across seed, early-stage, and late-stage firms.
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