Here are some of the stories that caught our eye this week:
Fintech news! RBC investing major cash in an in-house innovation lab
The asset management division of RBC is launching a new innovation hub dedicated to enhancing digital capabilities, and developing tools to provide better solutions for investors and advisors.
Home Capital searching for a new CEO
After last week’s news that Warren Buffett’s Berkshire Hathaway was coming in to back Home Capital with a major deal that could see the investor taking up to 38% stake in exchange for a $247 million total investment, the mortgage lender is coming close to selecting a new CEO.
In the meantime, the Toronto Stock Exchange has given conditional approval for the initial $153.2 million investment, which would have BH acquire 16 million Home Capital shares.
All eyes on the Bank of Canada’s July 12 rate announcement
Over the last year or so, analysts have predicted we wouldn’t see a change to the overnight rate until 2018. Recent comments by the Bank of Canada reps now have experts saying we have a 75% chance of a rate hike on July 12th.
BoC Governor Stephen Poloz has already been speaking to economic recovery in Canada, and today the BoC released their quarterly Business Outlook Survey. The poll shows business sentiments at their highest since 2011. Also on Friday, StatsCan released a report showing Canada’s economy has expanded by 3.3% in the past year. These reports continue to fuel the conversation around a hike next month.
What happens to donations in a cashless society?
A survey by The Canada Project shows credit and debit card were more popular than cash: two in five Canadians rely on credit cards, and just 17% say they prefer physical cash. Additionally, 2% of respondents said they go mobile on their phones before touching their wallets.
This is causing some concern among retailers about the cost of offering technology to allow these forms of payment, as well as charitable organizations like The Salvation Army who are now seeking alternative options like electronic readers or QR codes to reach donation goals.
- Buffett’s Berkshire Hathaway Invests in Home Capital
- 5 Takeaways From Ratehub.ca’s Canada150: The Future of Fintech Panel
- 10 Facts About Money in Canada You Probably Didn’t Know