The Operating Edge

March 2025

The Canadian financial sector continues to navigate significant transformation across banks and insurance companies, driven by a dynamic interplay of innovation, regulation, and market demands. Talent evolution, the rise of AI, heightened regulatory oversight, and the need for operational transformation are all converging to reshape the landscape.

At its core, the sector is grappling with profound talent shifts — marked by tighter labour markets, evolving workplace expectations, and the continued impacts of workforce retirements. The ability to attract, retain, and empower skilled professionals remains a cornerstone of success as firms address resource constraints and adapt to changing business realities.

Meanwhile, the rise of AI and data-driven processes offers both enormous potential and rising complexity. Financial institutions are not only leveraging these tools to streamline operations but are also addressing emerging risks around data governance, cybersecurity, and stakeholder trust. The focus is increasingly on getting data “right” — ensuring integrity, timeliness, and accessibility to support downstream impacts while mitigating the growing threats posed by financially motivated and state-sponsored bad actors.

On the regulatory front, Canadian banks and insurers face an evolving landscape, with the introduction of international standards such as IFRS S1 and S2 and localized reporting frameworks like Total Cost Reporting (CRM3). These changes demand enhanced transparency and alignment with global best practices, pushing organizations to rethink their strategies and compliance frameworks.

This report sheds light on these critical themes and examines how Canadian financial institutions are positioning themselves for the future. It is a privilege to contribute to this dialogue and to share insights that help illuminate the opportunities and challenges ahead.

For more information, read our report.