Of particular note to the National Bank analysts were comments executives at TD and CIBC made about partnerships forged with outside “fintech” companies that are innovating in traditional business lines such as payments.“Why, we asked ourselves, is the boring but profitable Canadian oligopoly inviting third parties into their most valuable, profitable business line?” the analysts wrote. “Simply put, we think they are worried … worried that innovators will nip away at, and ultimately fleece, their Golden Geese.”The report noted the personal and commercial franchises of the Canadian banks have been largely insulated from competition in the past, due to their individual and combined market share and regulations that have made it difficult for foreign players to enter via acquisition.The most imminent threat from the fintech firms is to the payments operations of the Canadian banks’ domestic personal and commercial banking franchises, the report suggests.

Those nipping at the heels of Canada’s dominant banks may not be of the magnitude of a Microsoft, which, the report points out, benefitted greatly from being invited to the table with IBM, but the National Bank analysts say they “do think the Canadian Big Six banks face a material threat to their most profitable business line.”The report concluded that the big banks will be forced to confront and combat the fintech firms over the long term.“In other words,” the analysts wrote, “this threat is clear, present, intensifying and has staying power – one or two simple alliances will not neutralize it.”Canada Goose Inc, a maker of luxury winter down jackets, is interviewing banks to help prepare for an initial public offering (IPO) that could value the company at as much as $2 billion, sources familiar with the matter said on Friday.

An IPO of Toronto-based Canada Goose would demonstrate the explosive growth the company has experienced, following its transition from selling jackets primarily to adventurers on expeditions to shoppers in more than 50 countries, eager to pay $1,000 for warm, high-end coats.Canada Goose could not be immediately be reached for comment. Its majority owner, private equity firm Bain Capital LLC, declined comment.