Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Category Archives: Research
EY 2024 Financial Sector Report: Navigating New Norms
Dec 4, 2023
EY's 2024 Strategic Guidance for Financial Firms Focusing on Compliance, Digital Transformation, and Operational Resilience
EY has published it's annual 2024 Global financial services regulatory outlook report highlighting the challenges and unprecedented opportunities for firms ready to adapt and excel in this dynamic environment.
As we approach 2024, markets are increasingly shaped by complex regulations, digital innovation, and a heightened focus on sustainability and consumer protection.
Report Overview
- Stay abreast of prudential developments, resolution, and recovery processes. Given the dynamic market conditions, it's crucial to be well-prepared for regulatory changes and heightened supervisory focus.
- Take a holistic approach to address a range of critical areas including consumer impact, environmental, social, and governance (ESG) factors, digital assets, the digitalization of finance, artificial intelligence (AI) integration, financial crime, and operational resilience. This comprehensive approach is key to staying competitive and compliant.
See: OSC/EY Report: AI in Fintech Use Cases
- Proactively develop a strategy for ongoing engagement with regulatory bodies, especially regarding new prudential developments. Understanding and anticipating regulatory shifts can position your firm for more effective compliance and strategic planning.
- Strengthen your firm’s capabilities in crisis management, ensuring that capital and liquidity standards are met. This will not only comply with regulatory requirements but also build trust with stakeholders.
- As digital transformation accelerates, establish strong governance frameworks to manage risks associated with digitalization and AI. This will maximize the benefits of these technologies while minimizing potential risks.
- Recognize the growing importance of digital assets and develop strategies that account for varying maturity levels and regulatory landscapes across jurisdictions.
- Integrate ESG factors into your business strategy, governance, and risk management. This includes setting clear targets and supporting sustainability disclosures, which are increasingly important to investors and regulators.
- Adapt to regulatory shifts that emphasize consumer protection in product offerings, pricing, and overall impact. This involves understanding the implications of new products and services and exploring alternative marketing channels.
See: PayPal’s Blockchain Vision As New Financial Rail
- Utilize technology to combat financial crime and fraud. It’s vital to have robust systems for monitoring, detection, and compliance.
- Learn from recent bank failures and other financial crises to strengthen your firm’s risk oversight and resilience governance. Operational resilience should be viewed as a strategic imperative, not just a compliance requirement.
- The economic outlook and regulatory environment are both uncertain and complex. Companies and investors need to stay informed about regulatory changes and adapt their business models accordingly. This involves a firm-wide commitment to setting priorities and tailoring business models to focus on people, processes, data, and technology.
EY's 2024 outlook presents a comprehensive roadmap for financial institutions, emphasizing the need for proactive regulatory engagement, digital agility, and robust operational frameworks.
Download the 28 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Stanford Economist Declares ‘End of the Office Era’
Remote Work | Dec 4, 2023
Image by Freepik
Stanford University economist Nick Bloom declares that the "return to the office is dead," marking a significant shift in the U.S. labor market.
A recent CNBC article highlights the persistence of remote work as a permanent fixture in the post-pandemic world. During the early days of the COVID-19 pandemic, 61.5% of paid workdays were from home. This number decreased through 2022 but stabilized around 28% in 2023, still significantly higher than the pre-pandemic level of 7%.
See: Game-changer for Remote Work? Introducing the AR Laptop by Spacetop
Key Insights
- The percentage of work-from-home days has plateaued in 2023, indicating a new normal in the labor market.
- Remote work offers advantages like no commute, flexible schedules, and cost savings, equating to an 8% pay raise for employees and reduced expenses for employers. So benefits for everyone or a classic win-win?
- About 47% of employees capable of remote work were engaged in a hybrid model as of October 2023, blending in-office and remote work suggesting that hybrid arrangements will likely prevail.
- The strong job market since early 2021 has given employees leverage to seek better work arrangements, reinforcing the remote work trend.
- Long-term trends suggest an increase in remote work beyond 2025, driven by technological improvements and younger, more adaptable business leaders.
Why It's Important
The shift towards remote and hybrid work models is more than a temporary response to the pandemic; it's a fundamental change in how businesses operate and employees work. This evolution has massive implications for everything from corporate real estate and urban planning to employee well-being and productivity.
See: Debunking the Work/Life Balance Myth with Scott Galloway
For companies, embracing this change can mean access to a broader talent pool, reduced overhead costs, and improved employee retention. For workers, it offers unprecedented flexibility and work-life balance. Understanding and adapting to this shift is crucial for businesses and professionals aiming to thrive in the evolving landscape of work.
Has the return to the office chant plateaued?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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BoC Update on The Digital Canadian Dollar Initiative
Canadian Digital Dollar | Nov 29, 2023
Image by katemangostar on Freepik
Bank of Canada Publishes Stakeholder Feedback on The Canadian Digital Dollar Initiative
Since 2020, the Bank of Canada has actively engaged with Canadians and stakeholders to gather insights on the digital Canadian dollar. This has included diverse discussions with the financial sector, focus groups, civil society groups, and an online public questionnaire. The Bank of Canada's report, "A Digital Canadian Dollar: What we heard 2020–23 and what comes next", provides a feedback lens across several themes.
Key Feedback Themes
- There's a shared interest in accessibility and financial inclusion ensuring that the digital dollar caters to underserved communities, with a focus on making it accessible without stringent identification requirements. This approach aims to bridge gaps in current digital payment offerings and promote universal access.
- Stakeholders emphasized the importance and concerns of privacy, advocating for a digital currency that offers the anonymity of banknotes. The public expressed strong reservations about sharing personal information and the potential overreach of privacy laws.
See: Bank of Canada Publishes Staff Paper on ‘Unmet Payment Needs and CBDCs
- The importance of maintaining access to physical currency was highlighted, with suggestions to mandate merchant acceptance of banknotes to support marginalized communities.
- The need for robust cybersecurity measures was a common concern, with varying levels of confidence in the Bank's ability to provide such security. The idea of a digital dollar functioning without an internet connection was also discussed for practical resilience and inclusivity.
- Financial institutions such as banks and credit unions expressed the need for more detailed information to understand the potential impact on their business models and financial stability. Concerns were raised about the digital dollar replacing bank deposits and accelerating bank runs during crises.
The decision to introduce a digital dollar will ultimately be made by Canadians through their representatives in Parliament, with a focus on balancing privacy, accessibility, and financial stability. The Bank is exploring various models and technologies to support a potential digital dollar, ensuring readiness for the future digital economy.
See: BoC: Redefining Financial Inclusion for CBDCs
Looking Forward
While the path forward involves complex considerations and diverse stakeholder interests, the final decision, however, rests with Canadians and their representatives, ensuring that any future digital currency aligns with the nation's values and needs.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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OECD 2023: Key Insights on Open Finance Policies
Open Finance Report | Nov 23, 2023
'Open Finance' is at the forefront of financial innovation, promising to redefine how we interact with financial data.
The recent OECD report on "Open Finance Policy Considerations" offers a comprehensive analysis of this paradigm shift, highlighting its potential benefits, inherent risks, and the critical considerations for successful implementation.
What is Open Finance
Open Finance extends the principles of Open Banking with broader access to and sharing of financial data beyond mere payment information. This expansion paves the way for improved financial products and services, fostering an environment of customer empowerment, innovation, and heightened competition. The consumer, now at the center, gains unprecedented control and choice over their financial data, enabling personalized financial solutions tailored to individual needs.
With Great Data Comes Great Responsibility
The OECD report underscores significant concerns regarding security and privacy in Open Finance. A notable percentage of respondents in a European Commission survey expressed apprehensions about the risks associated with granting service providers access to their data. This highlights a crucial aspect of Open Finance – the need for robust consent mechanisms and transparent data sharing practices.
See: 3 examples of what open finance can do right now
The success of Open Finance hinges on user uptake, which in turn is dependent on the trust consumers place in these new frameworks. Aligning with the G20/OECD High-Level Principles on Financial Consumer Protection, Open Finance must ensure adequate consumer protection and trust-building measures. Moreover, achieving interoperability across sectors and geographies is vital for the seamless exchange and utilization of financial data.
Policy Considerations
- Embracing technology neutrality ensures that the same rules apply across the board, irrespective of the technological means.
- The implementation of comprehensive privacy and data protection safeguards is non-negotiable, as these are the bedrock of consumer trust and the overall efficacy of Open Finance systems.
- Clear role definitions, in line with data protection regulations, are essential to maintain clarity and accountability within the ecosystem.
See: Open data for finance as an emerging source of GDP growth
Conclusion
The report emphasizes the need for careful consideration of various factors in implementing Open Finance, including customer trust, data protection, interoperability, and policy frameworks that support innovation while safeguarding consumer interests.
Download the 48 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
Canada’s Ranks 15th on WIPO 2023 Innovation Index
Innovation | Nov 20, 2023
Designed by Freepik
The Most Innovative Countries in 2023 on Visual Capitalist
The 2023 Global Innovation Index by the World Intellectual Property Organization, which includes 190 UN member states and some non-members.. The innovation index uses seven pillars and 80 indicators to assess a country's innovative strength. These pillars include Knowledge & Tech Outputs, Human Capital & Research, Business Sophistication, Market Sophistication, Creative Outputs, Infrastructure, and Institutions.
Canada ranked 15th overall with a score of 53.8.
| Rank | Country | Score |
|---|---|---|
| 1 | 🇨🇭 Switzerland | 67.6 |
| 2 | 🇸🇪 Sweden | 64.2 |
| 3 | 🇺🇸 U.S. | 63.5 |
| 4 | 🇬🇧 UK | 62.4 |
| 5 | 🇸🇬 Singapore | 61.5 |
| 6 | 🇫🇮 Finland | 61.2 |
| 7 | 🇳🇱 Netherlands | 60.4 |
| 8 | 🇩🇪 Germany | 58.8 |
| 9 | 🇩🇰 Denmark | 58.7 |
| 10 | 🇰🇷 South Korea | 58.6 |
| 11 | 🇫🇷 France | 56.0 |
| 12 | 🇨🇳 China | 55.3 |
| 13 | 🇯🇵 Japan | 54.6 |
| 14 | 🇮🇱 Israel | 54.3 |
| 15 | 🇨🇦 Canada | 53.8 |
Top Innovative Countries
Switzerland leads the ranking for the 13th consecutive year, with a score of 67.6. It is followed by Sweden (64.2), the United States (63.5), the United Kingdom (62.4), and Singapore (61.5). These rankings reflect a combination of factors such as patent applications, high-tech exports, research talent, and entrepreneurship culture.
See: Firm Size and Innovation: A Double-Edged Sword
- Switzerland's top ranking is attributed to its business policies and scale of patent applications, along with world-class research institutions and skilled workforce.
- Sweden, ranking second, excels in business sophistication, knowledge-intensive employment, and researchers per capita.
- The United States, in third place, scores high in venture capital received, global corporate R&D investors, and total unicorn value.
- Singapore is the highest-ranked Asian country, known for its government effectiveness, venture capital, and business stability.
- Brazil (49th) and Mauritius (57th) lead in Latin America and Sub-Saharan Africa, respectively.
Image: Visual Capitalist
See the full list of rankings --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
Moody’s Analytics on Stablecoin Depegging
Stablecoins | Nov 14, 2023
Image: Unsplash/CoinWire Japan
Moody's Analytics reports 609 instances of large fiat-backed depeggings so far in 2023, launches digital asset monitor tracking system
In 2023, the cryptocurrency market has witnessed a significant number of depegging events among large-cap stablecoins. Depegging refers to the fluctuation of stablecoin prices by more than three percent in a day against their fiat pegs, highlighting the volatile nature of these digital assets.
Stablecoins play a crucial role in the cryptocurrency markets, accounting for about 10 percent of the crypto market and most on-chain activity. However, their instability, as evidenced by frequent depegging events, poses significant risks. These events can cause market panic, as seen in May 2022 when TerraUSD's peg against the USD shattered, leading to substantial losses in the crypto market.
Moody's Launches Digital Asset Monitor
In response to the growing need for risk assessment tools in the volatile stablecoin market, Moody's Analytics has launched the AI-enabled Digital Asset Monitor (DAM). This tool is designed to predict the probability of a stablecoin depegging from a fiat currency within a 24-hour time horizon. The launch version of DAM tracks 25 fiat-backed stablecoins, including Tether, USDC, and PayPal Coin, which represent over 92% of the total stablecoin market capitalization.
See: UK’s Future Crypto and Stablecoin Regulation
Moody's DAM provides real-time insights into various aspects of stablecoins, including market and liquidity dynamics, the stability of the issuer, the custodians holding the stablecoin's assets, and the quality of these reserves. The tool combines off-chain and on-chain risk factors, leveraging Moody's expertise in global integrated risk assessment.
The Future
Despite the challenges posed by depegging events, the stablecoin market continues to grow and evolve. With tools like Moody's DAM and increased transparency in the sector, there is potential for greater stability and reliability in stablecoins.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
Dive into the Future with Ninepoint’s ‘Web3 Explained’ Series
Web3 | Nov 9, 2023
Are you ready to embark on a journey through the intricate and fascinating world of Web3?
Ninepoint Partners has just the ticket for you with their freshly launched Web3 Explained series, now available on YouTube, X, and LinkedIn. This 12-episode educational treasure trove is your gateway to understanding the revolutionary concepts shaping our digital future.
See: Blockchain Coalition Report: The State of Web3 in the U.S. – State by State Analysis
Hosted by the insightful Alex Tapscott, each episode delves into the key components of Web3, from the complexities of digital assets and the intricacies of decentralized finance (DeFi) to the creative explosion in non-fungible tokens (NFTs) and the boundless possibilities of the Metaverse.
Web3 Explained Video Series
Episode 1: The Internet is Entering a New Era
Episode 2: What is Web3?
Episode 3: What went wrong in Web2?
Episode 4: Four Principles for a Better Web
Episode 5: Tokens: The Native Asset Class of Web3
Episode 6: The Ninepoint Web3 Innovators Fund
Episode 7: Web3 and the Enterprise
Episode 8: Web3 and Financial Services
Episode 9: Entering a New Digital Age
Episode 10: Understanding Web3 in a Historical Context
Episode 11: Giving the Metaverse a ‘Second Life’
Episode 12: Web3 and the ‘Virtual You’
In a world where the digital landscape is constantly evolving, staying informed is a necessity. Here's the Trailer:
Explore the Series Now
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
