Quebec-based pension fund, la Caisse de depot, and financial co-operative, Desjardins Group, have set up a new technology investment fund, offering as much as $75mn to aid the growth and development of the Canadian financial technology (FinTech) sector.
The fund will particularly target companies that develop technology in the aid of investment, payment client acquisition and retention, data analysis, deposits and loans or insurance.
“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,” said Pierre Miron, Chief Operations and IT Officer at la Caisse.
“We strongly believe that this new fund will foster the development of new technology solutions that will significantly improve business processes and operational efficiency.”
Both sponsors will invest $50mn equally into the venture, with other institutional investors having shown interest in joining before the fund’s first closing.
In addition to funding, la Caisse and Desjardins will provide successful FinTech companies with relevant statistics, recognising the importance of data in accelerating product and technological developments.
“This new fund is very timely. Not even two weeks ago, the Brookfield Institute ranked Montréal in first place in Canada for its concentration of jobs in the high-tech sector,” said Guy Cormier, President and Chief Executive Officer of Desjardins Group.
“This support for FinTech will enable our financial sector companies to be world-class pioneers, particularly with regard to customer experience and competitiveness with the giants that are moving into our industry.”
The creation of the fund that is yet to be named was announced during the Canadian FinTech Forum held in Montreal.