Shopify, Canadian fintechs join big banks in putting aside more money for bad loans.

Canadian fintech companies, including Shopify, Lightspeed, Goeasy, Propel Holdings, and Mogo, are experiencing an increase in bad loans and are setting aside more money to cover them. These companies have seen significant growth in their lending businesses, but their bad debts have also grown. Non-bank lenders, such as these fintech firms, are expanding access to capital but also adding new risks to the financial system. While the risk is currently relatively small for the companies analyzed, there are concerns about the lack of regulation and standardized approach to managing credit risk in the fintech industry. [Extracted from the article]