Fintech firms are battling banks—and the banks are winning + MORE May 17th

OTTAWA – Technology is making buying things easier, but credit counsellors want you to remember that paying for them is still as difficult as ever.
Jeff Schwartz, executive director of Consolidated Credit Counseling Services of Canada, says the ease with which consumers can buy things these days could spell trouble for those who have difficulty controlling their spending.
“It is allowing many consumers to avoid the harsh reality of what is going on inside their bank account or even inside their wallet,” he said.
With the expansion of Apple Pay this week, Canadians added yet another way to quickly pay for their purchases without even opening their wallets.
3 easy ways to track spending and start saving »
The addition of the big Canadian banks to the service adds to the already numerous ways shoppers have, including Interac Flash, MasterCard Tap & Go, Visa payWave, and American Contactless Payments, to pay for things quickly.
Schwartz said the physical aspect of pulling out your wallet and taking the cash out to make a purchase is very different from using a phone…

(Illustration by Iker Ayestaran)
Mogo Finance Technology Inc. happily bills itself as the Uber of banking. The Vancouver-based company’s online platform instantly assesses a borrower’s creditworthiness and issues short- and long-term loans. Mogo (TSX: GO) is part of a wave of so-called fintech companies that see themselves as disrupters of the stodgy old banks. Armed with a better understanding of mobile technology, free from costly branch networks and focused intensely on the user experience, these online firms are muscling in on the lucrative business of providing loans, mortgages and portfolio management services to the public. If fintech is indeed supposed to grab market share from the incumbents, it should represent a good investment opportunity.
How Canadian startups are changing the way we bank
So far, however, public markets have been less than impressed, particularly with online lenders such as Mogo. Lenders comprise just one corner of the fintech universe, and only a small number are publicly traded, but their track record to date has been dreadful…

In recent years, there has been a lot of backlash against banks. While the backlash has been a little bigger with our neighbours down south, there have still been plenty of people here in Canada looking for a place to keep their money that isn’t associated with big banks.
One of the options you have is to choose a credit union. Credit unions are different from banks, and some even think they are superior to banks. If you are looking for an alternative to banks, a credit union might be a good choice. Plus, as an added perk, many credit unions offer lower car loan and mortgage rates than you will see at banks.
What is a Credit Union?
In the early 20th century, it was hard for “regular” working folks to get access to banks. Many tradespeople, teachers, and others struggled to build relationships with banks. Some decided to pool their resources to some degree. Credit unions are cooperative financial institutions that are owned by their members. It’s possible for you to sit on the board of your local credit union, and attend meetings and vote…