.............A critical question raised at the inaugural Canada Financial Affiliate Marketing Forum (FAMF) in Toronto
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| Source:Fintel Connect LinkedIn |
Canada’s innovation and economic resilience are being tested in an era of rapid global transformation, according to Michael Dobner, Partner and National Leader of PwC Canada’s Economics & Policy Practice, who spoke at the inaugural Canada Financial Affiliate Marketing Forum (FAMF) held in Toronto on Tuesday, 7th October, 2025
Delivering the keynote address, Michael Dobner warned that Canada risks falling further behind its global peers if it fails to make decisive moves in technology adoption, productivity, and trade diversification.
“Canada’s low productivity and lagging innovation suggest that our ability to diversify into other markets is limited,” Dobner said. “In the short to medium term, Canada will likely need to deepen its alignment with U.S. interests to safeguard its economy and secure its position in North America.”
Dobner placed Canada’s situation within the broader context of global power shifts, noting that the ongoing rivalry between the United States and China for technological and economic supremacy poses new strategic challenges for Canada.
He cautioned that upcoming CUSMA (Canada-United States-Mexico Agreement) renegotiations could open the financial services (FS) sector to stronger U.S. competition, intensifying pressure on Canadian firms to innovate and adapt.
A PwC survey conducted by Dobner and his team, involving nearly 500 executives in the financial services industry, revealed growing unease about the sector’s future readiness:
• 73 per cent of respondents said their current revenue streams are not “future-proof” for the next decade.
• 90 per cent said global capital allocation patterns are shifting faster than most firms can adjust.
• 78 per cent expect their business strategies to be significantly affected within two years due to changing capital flows.
In addition, Canada is projected by the OECD to have the lowest real per capita GDP growth among advanced economies from 2020 to 2030, and again from 2030 to 2060. This continues a trend of weak economic performance, as Canada already lagged behind most peers from 2007 to 2020.
The core issue is low productivity growth, not hours worked. Canada’s output per hour worked (labour productivity) is projected to be the weakest among peer nations, undermining future living standards.
Dobner highlighted that global financial markets are facing a “storm” driven by technological disruption, populism, and worsening public finances. “The digital revolution and the rise of populist movements are likely to be the biggest disruptors of the global financial system,” he said.
He urged Canadian stakeholders to explore focused growth areas such as insurance and real estate, where specialised expertise and scalability can yield greater returns.
The FAMF Forum brought together top leaders across Canada’s financial ecosystem, including banks, fintech innovators and affiliate marketers to explore the rapidly changing dynamics of partner marketing, compliance, influencer engagement, and next-generation customer acquisition.
While Canada continues to rank high globally in artificial intelligence (AI) and quantum technology, placing 8th and 7th respectively, industry observers say the country continues to struggle with commercialising and scaling innovation.
Without serious reform, younger Canadians face a future of stagnant real incomes and a relative decline in living standards.
Dobner emphasised that without a clear national direction, Canada’s mid-tier position in innovation may not be sustainable.
“Canada must decide whether to align more closely with its largest economic partner, the United States, or carve out a new strategy that ensures long-term competitiveness,” he said.
The decisions we make now will define the country’s economic future for generations.
As global economic forces reshape the financial landscape, analysts agree that innovation, technology adoption, and strategic policy alignment will be critical for Canada to remain competitive and secure its place in the world economy
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