Category Archives: Research

Banks’ Revenue Growth at Risk Due to Unprecedented Competitive Pressure Resulting from Digital Disruption, Accenture Study Finds

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BusinessWire release | Accenture | Oct 17, 2018

Digital-only banks, fintechs and big tech companies are quietly gaining customers, while incumbents struggle to make strategic investments in their digital future

NEW YORK & LONDON & HONG KONG--(BUSINESS WIRE)--New entrants to the banking market — including challenger banks, non-bank payments institutions and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks, according to new research from Accenture (NYSE:ACN).

“As the banking industry experiences radical change, driven by regulation, new entrants and demanding consumers, banks will need to reassess their assets, strengths and capabilities to determine if they are taking their business in the right direction”

Accenture analyzed more than 20,000 banking and payments institutions across seven markets to quantify the level of change and disruption in the global banking industry. The study found that the number of banking and payments institutions decreased by nearly 20 percent over a 12-year period — from 24,000 in 2005 to less than 19,300 in 2017. However, nearly one in six (17 percent) current institutions are what Accenture considers new entrants — i.e., companies entering the market after 2005. While few of these new players have raised alarm bells among traditional banks, the threat of reduced future revenue growth opportunities is real and growing.

Two new reports from Accenture quantify the level of disruption in the banking industry: “Beyond North Star Gazing” discusses how industry change is shaping the strategic priorities for banks, and “Star Shifting: Rapid Evolution Required” outlines what banks can do to take advantage of these changes to maintain customer relevance and ensure future revenue growth.

See:  The lending revolution: How digital credit is changing banks from the inside

“Most banks are struggling to find the right mix of investments in traditional and digital capabilities as they balance meeting the needs of digital customers with maintaining legacy systems that protect customer data,” said Alan McIntyre, a senior managing director at Accenture and head of its global Banking practice.

“Banks can’t simply digitally enable their business as usual and expect to be successful. So far, the conservative approach to digital investment has hindered banks’ ability to build new sources of growth, which is crucial to escaping the tightening squeeze of competition from digital attackers and deteriorating returns.”

Industry disruption

Many incumbent banks continue to dismiss the threat of new entrants, claiming that (1) new entrants are not creating new innovations, but rather dressing up traditional banking products; (2) significant revenue is not moving to new entrants; and (3) new entrants are not generating profits. However, the reports analyzed where revenue is shifting to new entrants and identifies examples of true innovation happening around the world that can no longer be dismissed. Accenture predicts that the shift in revenue to new entrants will continue and will start to have a material impact on incumbent banks’ profits.

See:  The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities

U.S.: Nineteen percent of financial institutions in the U.S. are new entrants and have captured 3.5 percent of total banking and payments revenues. Over the past dozen years, the number of financial institutions in the U.S. has decreased by nearly one-quarter, largely due to the financial crisis and subsequent regulatory hurdles imposed to obtain a banking license. These factors have made the U.S. a difficult market for new entrants and a stable environment for incumbents. More than half of new current accounts opened in the U.S. have been captured by three large banks that are making material investments in digital, while regional banks focus on cost reduction and struggle to grow their balance sheets.

“Ten years after the financial crisis, the banking industry is experiencing a level of competitive intensity and disruption that’s much greater than what’s been seen before,” said Julian Skan, a senior managing director at Accenture and global Banking lead, Accenture Strategy.

“With challenger banks and platform players reducing traditional banks’ competitiveness and the threat of a power shift looming, incumbent players can no longer rest on their laurels. Banks are mobilizing to take advantage of industry changes, leveraging digital technologies and ecosystem business models to cement their relevance with customers and regain revenue growth.”

UK: With regulation increasing competition in the financial services industry and reducing the dominance of established banks, 63 percent of players in the UK are new entrants. This is eye-popping compared with other markets and the 17 percent global average. New entrants have captured 14 percent of total banking revenues, with the clear majority (12 percent) going to non-bank payments institutions. While they have only taken around 14 percent of revenues, the reports suggest that they are taking over one third of new revenue indicating a higher level of disruption in the future. The reports also suggest that incumbent banks will therefore likely start to see a significant impact on revenues as leading challenger banks are surpassing the 1 million customer threshold and 15 fintechs have been granted full banking licenses.

Canada: Investors have backed new entrants in Canada with the intention of disrupting the banking industry. While nearly half (47 percent) of banking and payments institutions are new entrants, they have captured less than 2 percent of total banking and payments revenue, making Canada one of the least disrupted major banking markets.

See:  The state of Canadian FinTech in four charts

Europe: In Europe (including the UK), 20 percent of the banking and payments institutions are new entrants and have captured nearly 7 percent of total banking revenue — and one-third (33 percent) of all new revenue since 2005.

“As the banking industry experiences radical change, driven by regulation, new entrants and demanding consumers, banks will need to reassess their assets, strengths and capabilities to determine if they are taking their business in the right direction,” McIntyre said. “The future belongs to banks that can build new sources of growth, including finding opportunities beyond traditional financial services. They can’t afford to blindly follow the path they originally set out at the beginning of their digital journey. However, as the report clearly shows, there is no single answer and each bank needs to truly understand the market it is operating in before charting a path forward.”

Source:  view release

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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, 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

BusinessWire release | Accenture | Oct 17, 2018 Digital-only banks, fintechs and big tech companies are quietly gaining customers, while incumbents struggle to make strategic investments in their digital future NEW YORK & LONDON & HONG KONG--(BUSINESS WIRE)--New entrants to the banking market — including challenger banks, non-bank payments institutions and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks, according to new research from Accenture (NYSE:ACN). “As the banking industry experiences radical change, driven by regulation, new entrants and demanding consumers, banks will need to reassess their assets, strengths and capabilities to determine if they are taking their business in the right direction” Accenture analyzed more than 20,000 banking and payments institutions across seven markets to quantify the level of change and disruption in the global banking industry. The study found that the number of banking and payments institutions decreased by nearly 20 percent over a 12-year period — from 24,000 in 2005 to less than 19,300 in 2017. However, nearly one in six (17 percent) current institutions are what Accenture considers new entrants — i.e., companies entering the market after 2005. While few of these new players ...
Read More
Banks’ Revenue Growth at Risk Due to Unprecedented Competitive Pressure Resulting from Digital Disruption, Accenture Study Finds
Forbes | Michael del Castillo | Oct 18, 2018 The U.S. Securities and Exchange Commission is launching a portal for engaging with companies using blockchain, artificial intelligence and more. Available today, the new fintech hub, or FinHub for short, is designed to bring the SEC’s existing services to a single access point and provide an easier way for companies to communicate with the public. As startups building with blockchain increasingly come under the SEC’s attention, the new portal has the potential to streamline the process of building compliant platforms prior to launch. The SEC’s FinHub will be led by Valerie A. Szczepanik, senior advisor for digital assets and innovation and associate director in the SEC’s Division of Corporation Finance. “We’ve been doing these things for years,” Szczepanik told Forbes. “This is going to bring it all together.” The FinHub will be staffed by representatives from the SEC’s divisions and offices who have expertise and involvement in fintech-related issues. See:  Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens In addition to asking questions of the SEC, those who use the site will be able to request meetings. To increase engagement, a binary code “Easter egg” ...
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SEC Launches Fintech Hub To Engage With Cryptocurrency Startups And More
Gowling WLG | Shaela W. Rae | October 17 2018 Black market. Dark web. Illicit. Underground market. Illegitimate. Illegal. Organized crime. All words used to describe the illegal cannabis industry, until October 17, 2018 that is. Once it is legal to buy, possess or use cannabis for recreational purposes the discussion around the use of cannabis and how to procure it changes from hushed words in a corner to an open conversation in public. But is the public ready to embrace a substance that has been seen as illegitimate and "bad" for so long? If the experience in the US can be relied upon, the answer is "yes". According to investment bank Cowen & Co., the cannabis industry is expected to reach sales of approximately US$75-billion by 2030, up from US$6-billion in 2016, as the drug is more socially accepted. In the US today cannabis is illegal on a federal level as it is classified as a Schedule 1 narcotic, but cannabis is legal in 30 states for medicinal purposes, and in 9 states and Washington, DC, for recreational use for adults over the age of 21. See:  Canabis Company True Leaf Raises $14 Million in Cross Border US – ...
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Cannabis & blockchain: Bad romance or a perfect match?
International Monetary Fund | Release | Oct 11, 2018 The International Monetary Fund and the World Bank Group today launched the Bali Fintech Agenda, a set of 12 policy elements aimed at helping member countries to harness the benefits and opportunities of rapid advances in financial technology that are transforming the provision of banking services, while at the same time managing the inherent risks. The Agenda proposes a framework of high-level issues that countries should consider in their own domestic policy discussions and aims to guide staff from the two institutions in their own work and dialogue with national authorities. The 12 elements (see table) were distilled from members’ own experiences and cover topics relating broadly to enabling fintech; ensuring financial sector resilience; addressing risks; and promoting international cooperation. “There are an estimated 1.7 billion adults in the world without access to financial services,” said IMF Managing Director Christine Lagarde. “Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks. We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not ...
Read More
The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Investment Executive | James Langton | Oct 12, 2018 Money laundering and tax evasion are key concerns Canadian policy-makers initially took a hands-off approach to cryptoassets. Now, in the wake of a bitcoin boom-and-bust and continuing growth in the cryptoassets market, policy-makers are taking a second look at the emerging phenomenon. In 2015, the Standing Senate Committee on Banking, Trade and Commerce issued one of Canada’s first reports examining the emerging cryptocurrency industry; that report recommends that policy-makers keep an eye on the space. Since then, the cryptoassets market has continued to grow. According to a report from the Bank of Canada (BoC), the global market capitalization for cryptoassets “grew rapidly” in 2017 and the daily transaction volume now is more than 75 times higher than it was in early 2017 – i.e., more than $25 billion a day. At this point, the BoC report states, traditional financial services institutions don’t have much, if any, direct exposure to cryptoassets, but the report cautions that these institutions could become exposed due to their clients’ trading in cryptoassets or through exchange trading in crypto-based derivatives. “Cryptoasset markets are evolving quickly and could have financial stability implications in the future if their size ...
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Exploring cryptoasset regulation
NCFA Canada | Oct 13, 2018 Ep13-Oct 13:  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First About this episode:   On this episode, NCFA show host Manseeb Khan sits down with Ali Pourdad the CEO of Progressa who recently closed out an $84 million dollar round. They talk about P2P loans, loan services operating within the blockchain and why being people first business matters. Enjoy! (see Transcript) Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest:  ALI POURDAD, Co-founder and CEO, Progressa (LinkedIn) Bio:  Ali Pourdad has been CEO of Progressa since its inception in 2013. Under his leadership the Company has raised over $40 million of investor capital and invested over $2.0 million dollars in its proprietary "Powered by Progressa" decision engine for Canadian Enterprise partners looking to enhance collections strategy in a positive way. The company has grown to over 110 employees in Vancouver and Toronto. Ali has decisively positioned Progressa for its next generation of growth by recently executing on several initiatives, including creating one of Canada's most popular Exempt Market Bond Offerings and securing an $11.4 million Series A financing . Prior to co-founding Progressa, Ali worked in both corporate restructuring and audit & assurance, ...
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FINTECH FRIDAY$ (EP.13-Oct 12):  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First with Ali Pourdad, Co-founder and CEO Progressa
Beam Platform | Alec Gordon | Aug 24, 2018 THE PROBLEM The tech industry has gotten a rude awakening this year. Following a few high profile instances of data misuse, European Union has struck down the law and put everyone who sells into Europe (or deals with anyone who does) on notice. Since introduction, GDPR was meant to show both corporations and their users that better clarity around data collection/preservation is the necessary step forward, one that will lead to a fairer digital society, and ultimately benefit all those involved. And in order to do that, the companies themselves must take matters into their own hands by building new tools to let data flow back to the user. The customers demand it, and equally deserve to have control over their digital footprint. In the end this is an EU bill with global ramifications, and we should all be paying attention. By now you most of you have gotten dozens of emails on “updates to privacy policy” and other notices of forthcoming compliance. This is a welcome reminder that it is you, the user, who’s the focal point GDPR. After decades of computer and telephone use, the companies with whom we ...
Read More
Data is a 2-way street in a post-GDPR world
Competition Bureau | Oct 10, 2018 Speech Remarks by Interim Commissioner of Competition Matthew Boswell Global Series 2018 October 10, 2018 Ottawa, Ontario Thank you. I’m pleased to be here to speak with you today. Thank you Makan, for your thoughts on these important issues. They are particularly relevant to businesses, the legal community, academia and governments around the world and to all of you who are gathered here today. Every day we see the world evolving at a rapid pace, thanks to innovation.  Development of new technologies, ways of doing business and the creation of new products have the potential to open up new areas of science, medicine and technology. Small steps lead to bigger steps.  And here in Canada, we have to be ready for both the challenges and opportunities that this is bringing to all of us. Let’s understand what we are up against. Every year, innovation in the top industrialized countries is tracked by leading authorities on the subject. And here’s what they report about Canada in 2018. On the plus side, Canada performs better than some others in four big areas: Human Capital and Research, Institutions, Infrastructure, and Market Sophistication. See:  Canada’s ‘innovation economy’ has ...
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Advancing Competition in a Changing Marketplace
Crowdfund Insider | Cali Haan | Oct 9, 2018 Vancouver-based cryptocurrency exchange QuadrigaCX has been defending itself in court for the release of $28 million dollars in customer funds frozen by the Canadian Imperial Bank of Commerce (CIBC) since January, the Globe and Mail reports. According to court documents filed by CIBC in the Canadian province of Ontario, the action to freeze the accounts was taken because the bank says, “it was unable to determine who owns the funds,” and would like the court to take possession of the money and distribute it to either QuadrigaCX, their payments processor Custodian Inc, or to the 388 affected Quadriga customers, the Globe and Mail writes. Entrepreneurs in the relatively new crypto sector industries complained for some time about bank non-cooperation. See:  International Anti-Money Laundering Standards for Crypto Expected in October The cryptocurrency press in South America has reported on numerous account closures by banks against crypto exchanges on the continent, some of which are now being contested in courts by, among others, exchanges like Walltime in Brazil. Sources within the Toronto crypto entrepreneur scene say they have suffered persistent problems with getting their businesses banked in the city- even at credit unions- and have ...
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CIBC Has Frozen $28 Million of Vancouver Crypto Exchange’s Funds Since January
Crunchbase News | Alex Wilhelm | October 8, 2018 Meet Nubank, a fintech shop out of Brazil that just raised $180 million from Tencent at a valuation of $4 billion. Forget the fact that the round is half secondary. It’s an enormous transaction, and in more normal times, it would cause a big stir. However, the capital event highlights something notable about Tencent: the China-based company’s investment cadence is staggering. Tencent is disbursing cash at a far faster rate than Alibaba, another Chinese tech shop that isn’t famous for parsimony. Tencent’s Early Christmas Tencent has been on a check-cutting bing recently, getting through eight investing rounds in September. Those ranged from a $1.5 billion deal with Lianjia (real estate services), a $450 million round for MissFresh E-Commerce (mobile grocery sales), to the comparatively staid $90 million Series B for WeShare (fintech something or other). October is looking similarly hot. Tencent is at four deals so far, and the month isn’t even half done. Here’s the list: October 1. Miniso’s 1 billion rmb Series A. October 4. Voyager Innovation’s $175 million private equity round. October 5. Bilibili’s $317.6 million post-IPO equity event. October 8. Nubank’s $180 million Series F (half secondary). Regarding Nubank, TechCrunch’s Jon Shieber has the ...
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Nubank Investment Underscores Tencent’s Quick Investing Pace

 

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Navigating the New Realities of Global Trade

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McKinsey&Company | By Tari Ellis, Alan FitzGerald, Nadia Terfous, and Yassir Zouaoui | Apr 2018

The long-term future of global trade will be reshaped by technological shifts and changes in international trade policy.

During the two decades before the 2008 global financial crisis, the world economy seemed to be on an irreversible course of ever-deepening globalization. Global trade expanded nearly eightfold in the 1990s and 2000s and doubled as a share of global gross domestic product (GDP). However, governments and companies around the world are now facing new uncertainties concerning the future growth of trade. While the volume and throughput of goods and services trade have continued to grow in the aftermath of the crisis (reaching historic highs in 2017), the value of these flows has declined over the last two years. As a share of GDP, trade has fallen from about 30 percent in 2009 to 2014 to about 27 percent in 2016, and it is not expected to grow in the coming years based on the forecast from the World Trade Organization. These trends and forecasts are raising questions about the future role of trade as an engine of global economic growth.

The long-term future of trade will be shaped by great global changes, including rapid urbanization, the rise of a consuming middle class in emerging economies, geopolitical complexities, and the evolution of international financial flows. However, two trends stand out with respect to the degree of uncertainty surrounding their future impact—these include ongoing technological shifts and a changing international-trade-policy climate.

See:  FINTECH FRIDAY$ (EP.11-Sep 28): How Amazon Bank is Dominating and Risks of a Digital Bifurcated World

Changing technologies will continue to have a profound effect on the pace and composition of trade growth. At the moment, while established technologies, such as bar codes and containerization, may have already achieved most of their amplifying potential, a range of relatively new technologies, including 3-D printing, automation, and e-commerce platforms are beginning to come online and promise to have equal, if not greater, transformative effects on trade.

Another key source of uncertainty is the evolving global policy environment. With the Brexit referendum in the United Kingdom and a similar dampening of popular sentiment toward globalization in other Western countries, a clear horizon of ever-growing international integration seems now behind us. Meanwhile, the enthusiasm for deeper trade ties is accelerating in many emerging economies. China and other emerging-market countries are looking to drive ambitious new trade-cooperation initiatives that could “carry the torch” even if the pace of West-driven liberalization efforts decelerates.

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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, 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

BusinessWire release | Accenture | Oct 17, 2018 Digital-only banks, fintechs and big tech companies are quietly gaining customers, while incumbents struggle to make strategic investments in their digital future NEW YORK & LONDON & HONG KONG--(BUSINESS WIRE)--New entrants to the banking market — including challenger banks, non-bank payments institutions and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks, according to new research from Accenture (NYSE:ACN). “As the banking industry experiences radical change, driven by regulation, new entrants and demanding consumers, banks will need to reassess their assets, strengths and capabilities to determine if they are taking their business in the right direction” Accenture analyzed more than 20,000 banking and payments institutions across seven markets to quantify the level of change and disruption in the global banking industry. The study found that the number of banking and payments institutions decreased by nearly 20 percent over a 12-year period — from 24,000 in 2005 to less than 19,300 in 2017. However, nearly one in six (17 percent) current institutions are what Accenture considers new entrants — i.e., companies entering the market after 2005. While few of these new players ...
Read More
Banks’ Revenue Growth at Risk Due to Unprecedented Competitive Pressure Resulting from Digital Disruption, Accenture Study Finds
Forbes | Michael del Castillo | Oct 18, 2018 The U.S. Securities and Exchange Commission is launching a portal for engaging with companies using blockchain, artificial intelligence and more. Available today, the new fintech hub, or FinHub for short, is designed to bring the SEC’s existing services to a single access point and provide an easier way for companies to communicate with the public. As startups building with blockchain increasingly come under the SEC’s attention, the new portal has the potential to streamline the process of building compliant platforms prior to launch. The SEC’s FinHub will be led by Valerie A. Szczepanik, senior advisor for digital assets and innovation and associate director in the SEC’s Division of Corporation Finance. “We’ve been doing these things for years,” Szczepanik told Forbes. “This is going to bring it all together.” The FinHub will be staffed by representatives from the SEC’s divisions and offices who have expertise and involvement in fintech-related issues. See:  Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens In addition to asking questions of the SEC, those who use the site will be able to request meetings. To increase engagement, a binary code “Easter egg” ...
Read More
SEC Launches Fintech Hub To Engage With Cryptocurrency Startups And More
Gowling WLG | Shaela W. Rae | October 17 2018 Black market. Dark web. Illicit. Underground market. Illegitimate. Illegal. Organized crime. All words used to describe the illegal cannabis industry, until October 17, 2018 that is. Once it is legal to buy, possess or use cannabis for recreational purposes the discussion around the use of cannabis and how to procure it changes from hushed words in a corner to an open conversation in public. But is the public ready to embrace a substance that has been seen as illegitimate and "bad" for so long? If the experience in the US can be relied upon, the answer is "yes". According to investment bank Cowen & Co., the cannabis industry is expected to reach sales of approximately US$75-billion by 2030, up from US$6-billion in 2016, as the drug is more socially accepted. In the US today cannabis is illegal on a federal level as it is classified as a Schedule 1 narcotic, but cannabis is legal in 30 states for medicinal purposes, and in 9 states and Washington, DC, for recreational use for adults over the age of 21. See:  Canabis Company True Leaf Raises $14 Million in Cross Border US – ...
Read More
Cannabis & blockchain: Bad romance or a perfect match?
International Monetary Fund | Release | Oct 11, 2018 The International Monetary Fund and the World Bank Group today launched the Bali Fintech Agenda, a set of 12 policy elements aimed at helping member countries to harness the benefits and opportunities of rapid advances in financial technology that are transforming the provision of banking services, while at the same time managing the inherent risks. The Agenda proposes a framework of high-level issues that countries should consider in their own domestic policy discussions and aims to guide staff from the two institutions in their own work and dialogue with national authorities. The 12 elements (see table) were distilled from members’ own experiences and cover topics relating broadly to enabling fintech; ensuring financial sector resilience; addressing risks; and promoting international cooperation. “There are an estimated 1.7 billion adults in the world without access to financial services,” said IMF Managing Director Christine Lagarde. “Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks. We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not ...
Read More
The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Investment Executive | James Langton | Oct 12, 2018 Money laundering and tax evasion are key concerns Canadian policy-makers initially took a hands-off approach to cryptoassets. Now, in the wake of a bitcoin boom-and-bust and continuing growth in the cryptoassets market, policy-makers are taking a second look at the emerging phenomenon. In 2015, the Standing Senate Committee on Banking, Trade and Commerce issued one of Canada’s first reports examining the emerging cryptocurrency industry; that report recommends that policy-makers keep an eye on the space. Since then, the cryptoassets market has continued to grow. According to a report from the Bank of Canada (BoC), the global market capitalization for cryptoassets “grew rapidly” in 2017 and the daily transaction volume now is more than 75 times higher than it was in early 2017 – i.e., more than $25 billion a day. At this point, the BoC report states, traditional financial services institutions don’t have much, if any, direct exposure to cryptoassets, but the report cautions that these institutions could become exposed due to their clients’ trading in cryptoassets or through exchange trading in crypto-based derivatives. “Cryptoasset markets are evolving quickly and could have financial stability implications in the future if their size ...
Read More
Exploring cryptoasset regulation
NCFA Canada | Oct 13, 2018 Ep13-Oct 13:  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First About this episode:   On this episode, NCFA show host Manseeb Khan sits down with Ali Pourdad the CEO of Progressa who recently closed out an $84 million dollar round. They talk about P2P loans, loan services operating within the blockchain and why being people first business matters. Enjoy! (see Transcript) Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest:  ALI POURDAD, Co-founder and CEO, Progressa (LinkedIn) Bio:  Ali Pourdad has been CEO of Progressa since its inception in 2013. Under his leadership the Company has raised over $40 million of investor capital and invested over $2.0 million dollars in its proprietary "Powered by Progressa" decision engine for Canadian Enterprise partners looking to enhance collections strategy in a positive way. The company has grown to over 110 employees in Vancouver and Toronto. Ali has decisively positioned Progressa for its next generation of growth by recently executing on several initiatives, including creating one of Canada's most popular Exempt Market Bond Offerings and securing an $11.4 million Series A financing . Prior to co-founding Progressa, Ali worked in both corporate restructuring and audit & assurance, ...
Read More
FINTECH FRIDAY$ (EP.13-Oct 12):  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First with Ali Pourdad, Co-founder and CEO Progressa
Beam Platform | Alec Gordon | Aug 24, 2018 THE PROBLEM The tech industry has gotten a rude awakening this year. Following a few high profile instances of data misuse, European Union has struck down the law and put everyone who sells into Europe (or deals with anyone who does) on notice. Since introduction, GDPR was meant to show both corporations and their users that better clarity around data collection/preservation is the necessary step forward, one that will lead to a fairer digital society, and ultimately benefit all those involved. And in order to do that, the companies themselves must take matters into their own hands by building new tools to let data flow back to the user. The customers demand it, and equally deserve to have control over their digital footprint. In the end this is an EU bill with global ramifications, and we should all be paying attention. By now you most of you have gotten dozens of emails on “updates to privacy policy” and other notices of forthcoming compliance. This is a welcome reminder that it is you, the user, who’s the focal point GDPR. After decades of computer and telephone use, the companies with whom we ...
Read More
Data is a 2-way street in a post-GDPR world
Competition Bureau | Oct 10, 2018 Speech Remarks by Interim Commissioner of Competition Matthew Boswell Global Series 2018 October 10, 2018 Ottawa, Ontario Thank you. I’m pleased to be here to speak with you today. Thank you Makan, for your thoughts on these important issues. They are particularly relevant to businesses, the legal community, academia and governments around the world and to all of you who are gathered here today. Every day we see the world evolving at a rapid pace, thanks to innovation.  Development of new technologies, ways of doing business and the creation of new products have the potential to open up new areas of science, medicine and technology. Small steps lead to bigger steps.  And here in Canada, we have to be ready for both the challenges and opportunities that this is bringing to all of us. Let’s understand what we are up against. Every year, innovation in the top industrialized countries is tracked by leading authorities on the subject. And here’s what they report about Canada in 2018. On the plus side, Canada performs better than some others in four big areas: Human Capital and Research, Institutions, Infrastructure, and Market Sophistication. See:  Canada’s ‘innovation economy’ has ...
Read More
Advancing Competition in a Changing Marketplace
Crowdfund Insider | Cali Haan | Oct 9, 2018 Vancouver-based cryptocurrency exchange QuadrigaCX has been defending itself in court for the release of $28 million dollars in customer funds frozen by the Canadian Imperial Bank of Commerce (CIBC) since January, the Globe and Mail reports. According to court documents filed by CIBC in the Canadian province of Ontario, the action to freeze the accounts was taken because the bank says, “it was unable to determine who owns the funds,” and would like the court to take possession of the money and distribute it to either QuadrigaCX, their payments processor Custodian Inc, or to the 388 affected Quadriga customers, the Globe and Mail writes. Entrepreneurs in the relatively new crypto sector industries complained for some time about bank non-cooperation. See:  International Anti-Money Laundering Standards for Crypto Expected in October The cryptocurrency press in South America has reported on numerous account closures by banks against crypto exchanges on the continent, some of which are now being contested in courts by, among others, exchanges like Walltime in Brazil. Sources within the Toronto crypto entrepreneur scene say they have suffered persistent problems with getting their businesses banked in the city- even at credit unions- and have ...
Read More
CIBC Has Frozen $28 Million of Vancouver Crypto Exchange’s Funds Since January
Crunchbase News | Alex Wilhelm | October 8, 2018 Meet Nubank, a fintech shop out of Brazil that just raised $180 million from Tencent at a valuation of $4 billion. Forget the fact that the round is half secondary. It’s an enormous transaction, and in more normal times, it would cause a big stir. However, the capital event highlights something notable about Tencent: the China-based company’s investment cadence is staggering. Tencent is disbursing cash at a far faster rate than Alibaba, another Chinese tech shop that isn’t famous for parsimony. Tencent’s Early Christmas Tencent has been on a check-cutting bing recently, getting through eight investing rounds in September. Those ranged from a $1.5 billion deal with Lianjia (real estate services), a $450 million round for MissFresh E-Commerce (mobile grocery sales), to the comparatively staid $90 million Series B for WeShare (fintech something or other). October is looking similarly hot. Tencent is at four deals so far, and the month isn’t even half done. Here’s the list: October 1. Miniso’s 1 billion rmb Series A. October 4. Voyager Innovation’s $175 million private equity round. October 5. Bilibili’s $317.6 million post-IPO equity event. October 8. Nubank’s $180 million Series F (half secondary). Regarding Nubank, TechCrunch’s Jon Shieber has the ...
Read More
Nubank Investment Underscores Tencent’s Quick Investing Pace

 

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Online Giving Trends Show Consistent Growth in the US Since Donation Crowdfunding Debuted in 2012

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Non-profit Source | Resource page

Online Giving Grew 12.1% in 2017

  • Online giving has seen consistent year over year growth:
    • 2012: $19.2 billion
    • 2013: $21.2 billion
    • 2014: $24.1 billion
    • 2015: $25.8 billion
    • 2016: $27.8 billion
    • 2017: $31 billion
  • $128 dollars is the average online donation amount.
  • $326 dollars is the average annual donation total for recurring donors.
  • 67% of nonprofits across the globe are set up to accept online donations.
  • Mobile accounted for 40% of all visitors, tablets for 10%, and desktop users made up the other 50%.
  • Every sector tracked saw at least 15% online revenue growth, with particularly large gains for Environmental (34%) and Rights (37%) nonprofits.

See:  Crowdvetting for crowdfunding? How donation sites get to the truth behind campaigns

25% of the US population are Millennials and 84% of them give to Charity

  • Millennials are 25.9% of US population.  11% of total US giving comes from Millennials
  • 84% of Millennials give to charity, donating an annual average of $481 across 3.3 organizations.
  • Millennials are most likely to contribute to work sponsored initiatives, donate via mobile and watch online videos before making a gift.
  • $9,237.55 is the average amount a nonprofit crowdfunding campaign raises.
  • The average donation size to a crowdfunding campaign is $66.
  • 62% of donors who give to crowdfunding campaigns are new to crowdfunding.
  • Campaign owners raise 3X more if they update supporters every 5 days.
  • Crowdfunding campaigns with personal videos raise 150% than those that don’t have videos.

Continue to see more statistics --> 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, 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

BusinessWire release | Accenture | Oct 17, 2018 Digital-only banks, fintechs and big tech companies are quietly gaining customers, while incumbents struggle to make strategic investments in their digital future NEW YORK & LONDON & HONG KONG--(BUSINESS WIRE)--New entrants to the banking market — including challenger banks, non-bank payments institutions and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks, according to new research from Accenture (NYSE:ACN). “As the banking industry experiences radical change, driven by regulation, new entrants and demanding consumers, banks will need to reassess their assets, strengths and capabilities to determine if they are taking their business in the right direction” Accenture analyzed more than 20,000 banking and payments institutions across seven markets to quantify the level of change and disruption in the global banking industry. The study found that the number of banking and payments institutions decreased by nearly 20 percent over a 12-year period — from 24,000 in 2005 to less than 19,300 in 2017. However, nearly one in six (17 percent) current institutions are what Accenture considers new entrants — i.e., companies entering the market after 2005. While few of these new players ...
Read More
Banks’ Revenue Growth at Risk Due to Unprecedented Competitive Pressure Resulting from Digital Disruption, Accenture Study Finds
Forbes | Michael del Castillo | Oct 18, 2018 The U.S. Securities and Exchange Commission is launching a portal for engaging with companies using blockchain, artificial intelligence and more. Available today, the new fintech hub, or FinHub for short, is designed to bring the SEC’s existing services to a single access point and provide an easier way for companies to communicate with the public. As startups building with blockchain increasingly come under the SEC’s attention, the new portal has the potential to streamline the process of building compliant platforms prior to launch. The SEC’s FinHub will be led by Valerie A. Szczepanik, senior advisor for digital assets and innovation and associate director in the SEC’s Division of Corporation Finance. “We’ve been doing these things for years,” Szczepanik told Forbes. “This is going to bring it all together.” The FinHub will be staffed by representatives from the SEC’s divisions and offices who have expertise and involvement in fintech-related issues. See:  Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens In addition to asking questions of the SEC, those who use the site will be able to request meetings. To increase engagement, a binary code “Easter egg” ...
Read More
SEC Launches Fintech Hub To Engage With Cryptocurrency Startups And More
Gowling WLG | Shaela W. Rae | October 17 2018 Black market. Dark web. Illicit. Underground market. Illegitimate. Illegal. Organized crime. All words used to describe the illegal cannabis industry, until October 17, 2018 that is. Once it is legal to buy, possess or use cannabis for recreational purposes the discussion around the use of cannabis and how to procure it changes from hushed words in a corner to an open conversation in public. But is the public ready to embrace a substance that has been seen as illegitimate and "bad" for so long? If the experience in the US can be relied upon, the answer is "yes". According to investment bank Cowen & Co., the cannabis industry is expected to reach sales of approximately US$75-billion by 2030, up from US$6-billion in 2016, as the drug is more socially accepted. In the US today cannabis is illegal on a federal level as it is classified as a Schedule 1 narcotic, but cannabis is legal in 30 states for medicinal purposes, and in 9 states and Washington, DC, for recreational use for adults over the age of 21. See:  Canabis Company True Leaf Raises $14 Million in Cross Border US – ...
Read More
Cannabis & blockchain: Bad romance or a perfect match?
International Monetary Fund | Release | Oct 11, 2018 The International Monetary Fund and the World Bank Group today launched the Bali Fintech Agenda, a set of 12 policy elements aimed at helping member countries to harness the benefits and opportunities of rapid advances in financial technology that are transforming the provision of banking services, while at the same time managing the inherent risks. The Agenda proposes a framework of high-level issues that countries should consider in their own domestic policy discussions and aims to guide staff from the two institutions in their own work and dialogue with national authorities. The 12 elements (see table) were distilled from members’ own experiences and cover topics relating broadly to enabling fintech; ensuring financial sector resilience; addressing risks; and promoting international cooperation. “There are an estimated 1.7 billion adults in the world without access to financial services,” said IMF Managing Director Christine Lagarde. “Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks. We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not ...
Read More
The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Investment Executive | James Langton | Oct 12, 2018 Money laundering and tax evasion are key concerns Canadian policy-makers initially took a hands-off approach to cryptoassets. Now, in the wake of a bitcoin boom-and-bust and continuing growth in the cryptoassets market, policy-makers are taking a second look at the emerging phenomenon. In 2015, the Standing Senate Committee on Banking, Trade and Commerce issued one of Canada’s first reports examining the emerging cryptocurrency industry; that report recommends that policy-makers keep an eye on the space. Since then, the cryptoassets market has continued to grow. According to a report from the Bank of Canada (BoC), the global market capitalization for cryptoassets “grew rapidly” in 2017 and the daily transaction volume now is more than 75 times higher than it was in early 2017 – i.e., more than $25 billion a day. At this point, the BoC report states, traditional financial services institutions don’t have much, if any, direct exposure to cryptoassets, but the report cautions that these institutions could become exposed due to their clients’ trading in cryptoassets or through exchange trading in crypto-based derivatives. “Cryptoasset markets are evolving quickly and could have financial stability implications in the future if their size ...
Read More
Exploring cryptoasset regulation
NCFA Canada | Oct 13, 2018 Ep13-Oct 13:  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First About this episode:   On this episode, NCFA show host Manseeb Khan sits down with Ali Pourdad the CEO of Progressa who recently closed out an $84 million dollar round. They talk about P2P loans, loan services operating within the blockchain and why being people first business matters. Enjoy! (see Transcript) Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest:  ALI POURDAD, Co-founder and CEO, Progressa (LinkedIn) Bio:  Ali Pourdad has been CEO of Progressa since its inception in 2013. Under his leadership the Company has raised over $40 million of investor capital and invested over $2.0 million dollars in its proprietary "Powered by Progressa" decision engine for Canadian Enterprise partners looking to enhance collections strategy in a positive way. The company has grown to over 110 employees in Vancouver and Toronto. Ali has decisively positioned Progressa for its next generation of growth by recently executing on several initiatives, including creating one of Canada's most popular Exempt Market Bond Offerings and securing an $11.4 million Series A financing . Prior to co-founding Progressa, Ali worked in both corporate restructuring and audit & assurance, ...
Read More
FINTECH FRIDAY$ (EP.13-Oct 12):  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First with Ali Pourdad, Co-founder and CEO Progressa
Beam Platform | Alec Gordon | Aug 24, 2018 THE PROBLEM The tech industry has gotten a rude awakening this year. Following a few high profile instances of data misuse, European Union has struck down the law and put everyone who sells into Europe (or deals with anyone who does) on notice. Since introduction, GDPR was meant to show both corporations and their users that better clarity around data collection/preservation is the necessary step forward, one that will lead to a fairer digital society, and ultimately benefit all those involved. And in order to do that, the companies themselves must take matters into their own hands by building new tools to let data flow back to the user. The customers demand it, and equally deserve to have control over their digital footprint. In the end this is an EU bill with global ramifications, and we should all be paying attention. By now you most of you have gotten dozens of emails on “updates to privacy policy” and other notices of forthcoming compliance. This is a welcome reminder that it is you, the user, who’s the focal point GDPR. After decades of computer and telephone use, the companies with whom we ...
Read More
Data is a 2-way street in a post-GDPR world
Competition Bureau | Oct 10, 2018 Speech Remarks by Interim Commissioner of Competition Matthew Boswell Global Series 2018 October 10, 2018 Ottawa, Ontario Thank you. I’m pleased to be here to speak with you today. Thank you Makan, for your thoughts on these important issues. They are particularly relevant to businesses, the legal community, academia and governments around the world and to all of you who are gathered here today. Every day we see the world evolving at a rapid pace, thanks to innovation.  Development of new technologies, ways of doing business and the creation of new products have the potential to open up new areas of science, medicine and technology. Small steps lead to bigger steps.  And here in Canada, we have to be ready for both the challenges and opportunities that this is bringing to all of us. Let’s understand what we are up against. Every year, innovation in the top industrialized countries is tracked by leading authorities on the subject. And here’s what they report about Canada in 2018. On the plus side, Canada performs better than some others in four big areas: Human Capital and Research, Institutions, Infrastructure, and Market Sophistication. See:  Canada’s ‘innovation economy’ has ...
Read More
Advancing Competition in a Changing Marketplace
Crowdfund Insider | Cali Haan | Oct 9, 2018 Vancouver-based cryptocurrency exchange QuadrigaCX has been defending itself in court for the release of $28 million dollars in customer funds frozen by the Canadian Imperial Bank of Commerce (CIBC) since January, the Globe and Mail reports. According to court documents filed by CIBC in the Canadian province of Ontario, the action to freeze the accounts was taken because the bank says, “it was unable to determine who owns the funds,” and would like the court to take possession of the money and distribute it to either QuadrigaCX, their payments processor Custodian Inc, or to the 388 affected Quadriga customers, the Globe and Mail writes. Entrepreneurs in the relatively new crypto sector industries complained for some time about bank non-cooperation. See:  International Anti-Money Laundering Standards for Crypto Expected in October The cryptocurrency press in South America has reported on numerous account closures by banks against crypto exchanges on the continent, some of which are now being contested in courts by, among others, exchanges like Walltime in Brazil. Sources within the Toronto crypto entrepreneur scene say they have suffered persistent problems with getting their businesses banked in the city- even at credit unions- and have ...
Read More
CIBC Has Frozen $28 Million of Vancouver Crypto Exchange’s Funds Since January
Crunchbase News | Alex Wilhelm | October 8, 2018 Meet Nubank, a fintech shop out of Brazil that just raised $180 million from Tencent at a valuation of $4 billion. Forget the fact that the round is half secondary. It’s an enormous transaction, and in more normal times, it would cause a big stir. However, the capital event highlights something notable about Tencent: the China-based company’s investment cadence is staggering. Tencent is disbursing cash at a far faster rate than Alibaba, another Chinese tech shop that isn’t famous for parsimony. Tencent’s Early Christmas Tencent has been on a check-cutting bing recently, getting through eight investing rounds in September. Those ranged from a $1.5 billion deal with Lianjia (real estate services), a $450 million round for MissFresh E-Commerce (mobile grocery sales), to the comparatively staid $90 million Series B for WeShare (fintech something or other). October is looking similarly hot. Tencent is at four deals so far, and the month isn’t even half done. Here’s the list: October 1. Miniso’s 1 billion rmb Series A. October 4. Voyager Innovation’s $175 million private equity round. October 5. Bilibili’s $317.6 million post-IPO equity event. October 8. Nubank’s $180 million Series F (half secondary). Regarding Nubank, TechCrunch’s Jon Shieber has the ...
Read More
Nubank Investment Underscores Tencent’s Quick Investing Pace

 

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The state of Canadian FinTech in four charts

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Betakit | | Sep 24, 2018

Last year, we released the first edition of Ferst Capital Partners’ FinTech Map, plotting all FinTechs serving Canadians by vertical and growth stage. We received a lot of great feedback and were proud to see our work referenced by both investors and regulators.

Today, we are releasing an updated version, along with some other telling charts on the overall state of FinTech in Canada. There is a lot of data packed into these charts (426 companies were analyzed), so we encourage you to grab a cup of coffee and take your time as you go through them. We have included several of our own takeaways below each diagram but, with plenty of ways to slice the data, you will undoubtedly develop many of your own.

As a result of this exercise, we found two recurring themes worth highlighting. The first one is obvious to all of us tracking the space, while the second may be more subtle.

If we want home-grown companies to lead the next wave of financial services in Canada, both regulators and investors will need to play their part.

The more obvious theme is that the cryptocurrency and blockchain vertical has seen the most action in Canadian FinTech over the last 12 months. To put some data around this, we have seen 21 net new companies enter the space over the last year (net new refers to new companies minus dissolved ones). This is more than double the activity of the next two most active verticals, lending and insurance, which both saw nine net new startups enter the space.

See:  Fintech Reports and Research

We have also tracked seven net new cryptocurrency and blockchain startups entering the expansion stage, again leading the pack amongst all verticals. This indicates that companies are not only entering this vertical at a rapid pace, but they have been relatively successful in gaining traction. While several forces are at play here, the lack of regulation plays an important role: it tends to take these companies less time to get to market than other FinTechs given there are fewer regulatory hurdles to overcome. Likewise, it also seems to take these companies far less time to achieve international expansion than other FinTechs given the lack of regulatory hurdles away from home.

The second, less obvious theme is how B2B (business-to-business) startups have achieved a significantly higher success rate than B2C (business-to-consumer) startups. Even though B2B startups make up 54 percent of all Canadian FinTechs, they add up to 75 percent of all startups we tracked in the expansion stage. On the other hand, B2C companies make up 35 percent of all FinTechs but only 18 percent of all startups in the expansion stage. These are significant differences.

We believe with the right funding and the right network, B2C FinTechs can be very successful in this country as they have elsewhere.

While all FinTechs face common challenges, including the difficulty of forming partnerships with incumbents and heavy customer acquisition costs, these challenges appear to be exacerbated when going direct-to-consumer. As a result, several of the FinTech-focused funds in this country tend to favor B2B companies, which now makes funding a bigger challenge for B2C companies.

Investors will look at these numbers as validation for their B2B-focused strategies, while B2C entrepreneurs will argue that they need more capital support to be successful. Is it the chicken or the egg?

See:  $57.9B deployed into fintech so far this year, Canada one to watch

Despite these results, at Ferst Capital we have maintained our focus on B2C FinTech. We believe with the right funding and the right network, B2C FinTechs can be very successful in this country as they have elsewhere. Moreso, our mission is to help improve financial services for Canadians and we believe that, when looking at FinTech on a global scale, the B2C companies like Revolut, Credit Karma, Lending Club, Wealthsimple, and Mylo are the ones that have made the most impact in advancing how consumers interact with their money.

Continue to the full article --> here

FCP FinTech Map - Sept 2018 by on Scribd


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, 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

BusinessWire release | Accenture | Oct 17, 2018 Digital-only banks, fintechs and big tech companies are quietly gaining customers, while incumbents struggle to make strategic investments in their digital future NEW YORK & LONDON & HONG KONG--(BUSINESS WIRE)--New entrants to the banking market — including challenger banks, non-bank payments institutions and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks, according to new research from Accenture (NYSE:ACN). “As the banking industry experiences radical change, driven by regulation, new entrants and demanding consumers, banks will need to reassess their assets, strengths and capabilities to determine if they are taking their business in the right direction” Accenture analyzed more than 20,000 banking and payments institutions across seven markets to quantify the level of change and disruption in the global banking industry. The study found that the number of banking and payments institutions decreased by nearly 20 percent over a 12-year period — from 24,000 in 2005 to less than 19,300 in 2017. However, nearly one in six (17 percent) current institutions are what Accenture considers new entrants — i.e., companies entering the market after 2005. While few of these new players ...
Read More
Banks’ Revenue Growth at Risk Due to Unprecedented Competitive Pressure Resulting from Digital Disruption, Accenture Study Finds
Forbes | Michael del Castillo | Oct 18, 2018 The U.S. Securities and Exchange Commission is launching a portal for engaging with companies using blockchain, artificial intelligence and more. Available today, the new fintech hub, or FinHub for short, is designed to bring the SEC’s existing services to a single access point and provide an easier way for companies to communicate with the public. As startups building with blockchain increasingly come under the SEC’s attention, the new portal has the potential to streamline the process of building compliant platforms prior to launch. The SEC’s FinHub will be led by Valerie A. Szczepanik, senior advisor for digital assets and innovation and associate director in the SEC’s Division of Corporation Finance. “We’ve been doing these things for years,” Szczepanik told Forbes. “This is going to bring it all together.” The FinHub will be staffed by representatives from the SEC’s divisions and offices who have expertise and involvement in fintech-related issues. See:  Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens In addition to asking questions of the SEC, those who use the site will be able to request meetings. To increase engagement, a binary code “Easter egg” ...
Read More
SEC Launches Fintech Hub To Engage With Cryptocurrency Startups And More
Gowling WLG | Shaela W. Rae | October 17 2018 Black market. Dark web. Illicit. Underground market. Illegitimate. Illegal. Organized crime. All words used to describe the illegal cannabis industry, until October 17, 2018 that is. Once it is legal to buy, possess or use cannabis for recreational purposes the discussion around the use of cannabis and how to procure it changes from hushed words in a corner to an open conversation in public. But is the public ready to embrace a substance that has been seen as illegitimate and "bad" for so long? If the experience in the US can be relied upon, the answer is "yes". According to investment bank Cowen & Co., the cannabis industry is expected to reach sales of approximately US$75-billion by 2030, up from US$6-billion in 2016, as the drug is more socially accepted. In the US today cannabis is illegal on a federal level as it is classified as a Schedule 1 narcotic, but cannabis is legal in 30 states for medicinal purposes, and in 9 states and Washington, DC, for recreational use for adults over the age of 21. See:  Canabis Company True Leaf Raises $14 Million in Cross Border US – ...
Read More
Cannabis & blockchain: Bad romance or a perfect match?
International Monetary Fund | Release | Oct 11, 2018 The International Monetary Fund and the World Bank Group today launched the Bali Fintech Agenda, a set of 12 policy elements aimed at helping member countries to harness the benefits and opportunities of rapid advances in financial technology that are transforming the provision of banking services, while at the same time managing the inherent risks. The Agenda proposes a framework of high-level issues that countries should consider in their own domestic policy discussions and aims to guide staff from the two institutions in their own work and dialogue with national authorities. The 12 elements (see table) were distilled from members’ own experiences and cover topics relating broadly to enabling fintech; ensuring financial sector resilience; addressing risks; and promoting international cooperation. “There are an estimated 1.7 billion adults in the world without access to financial services,” said IMF Managing Director Christine Lagarde. “Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks. We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not ...
Read More
The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Investment Executive | James Langton | Oct 12, 2018 Money laundering and tax evasion are key concerns Canadian policy-makers initially took a hands-off approach to cryptoassets. Now, in the wake of a bitcoin boom-and-bust and continuing growth in the cryptoassets market, policy-makers are taking a second look at the emerging phenomenon. In 2015, the Standing Senate Committee on Banking, Trade and Commerce issued one of Canada’s first reports examining the emerging cryptocurrency industry; that report recommends that policy-makers keep an eye on the space. Since then, the cryptoassets market has continued to grow. According to a report from the Bank of Canada (BoC), the global market capitalization for cryptoassets “grew rapidly” in 2017 and the daily transaction volume now is more than 75 times higher than it was in early 2017 – i.e., more than $25 billion a day. At this point, the BoC report states, traditional financial services institutions don’t have much, if any, direct exposure to cryptoassets, but the report cautions that these institutions could become exposed due to their clients’ trading in cryptoassets or through exchange trading in crypto-based derivatives. “Cryptoasset markets are evolving quickly and could have financial stability implications in the future if their size ...
Read More
Exploring cryptoasset regulation
NCFA Canada | Oct 13, 2018 Ep13-Oct 13:  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First About this episode:   On this episode, NCFA show host Manseeb Khan sits down with Ali Pourdad the CEO of Progressa who recently closed out an $84 million dollar round. They talk about P2P loans, loan services operating within the blockchain and why being people first business matters. Enjoy! (see Transcript) Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest:  ALI POURDAD, Co-founder and CEO, Progressa (LinkedIn) Bio:  Ali Pourdad has been CEO of Progressa since its inception in 2013. Under his leadership the Company has raised over $40 million of investor capital and invested over $2.0 million dollars in its proprietary "Powered by Progressa" decision engine for Canadian Enterprise partners looking to enhance collections strategy in a positive way. The company has grown to over 110 employees in Vancouver and Toronto. Ali has decisively positioned Progressa for its next generation of growth by recently executing on several initiatives, including creating one of Canada's most popular Exempt Market Bond Offerings and securing an $11.4 million Series A financing . Prior to co-founding Progressa, Ali worked in both corporate restructuring and audit & assurance, ...
Read More
FINTECH FRIDAY$ (EP.13-Oct 12):  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First with Ali Pourdad, Co-founder and CEO Progressa
Beam Platform | Alec Gordon | Aug 24, 2018 THE PROBLEM The tech industry has gotten a rude awakening this year. Following a few high profile instances of data misuse, European Union has struck down the law and put everyone who sells into Europe (or deals with anyone who does) on notice. Since introduction, GDPR was meant to show both corporations and their users that better clarity around data collection/preservation is the necessary step forward, one that will lead to a fairer digital society, and ultimately benefit all those involved. And in order to do that, the companies themselves must take matters into their own hands by building new tools to let data flow back to the user. The customers demand it, and equally deserve to have control over their digital footprint. In the end this is an EU bill with global ramifications, and we should all be paying attention. By now you most of you have gotten dozens of emails on “updates to privacy policy” and other notices of forthcoming compliance. This is a welcome reminder that it is you, the user, who’s the focal point GDPR. After decades of computer and telephone use, the companies with whom we ...
Read More
Data is a 2-way street in a post-GDPR world
Competition Bureau | Oct 10, 2018 Speech Remarks by Interim Commissioner of Competition Matthew Boswell Global Series 2018 October 10, 2018 Ottawa, Ontario Thank you. I’m pleased to be here to speak with you today. Thank you Makan, for your thoughts on these important issues. They are particularly relevant to businesses, the legal community, academia and governments around the world and to all of you who are gathered here today. Every day we see the world evolving at a rapid pace, thanks to innovation.  Development of new technologies, ways of doing business and the creation of new products have the potential to open up new areas of science, medicine and technology. Small steps lead to bigger steps.  And here in Canada, we have to be ready for both the challenges and opportunities that this is bringing to all of us. Let’s understand what we are up against. Every year, innovation in the top industrialized countries is tracked by leading authorities on the subject. And here’s what they report about Canada in 2018. On the plus side, Canada performs better than some others in four big areas: Human Capital and Research, Institutions, Infrastructure, and Market Sophistication. See:  Canada’s ‘innovation economy’ has ...
Read More
Advancing Competition in a Changing Marketplace
Crowdfund Insider | Cali Haan | Oct 9, 2018 Vancouver-based cryptocurrency exchange QuadrigaCX has been defending itself in court for the release of $28 million dollars in customer funds frozen by the Canadian Imperial Bank of Commerce (CIBC) since January, the Globe and Mail reports. According to court documents filed by CIBC in the Canadian province of Ontario, the action to freeze the accounts was taken because the bank says, “it was unable to determine who owns the funds,” and would like the court to take possession of the money and distribute it to either QuadrigaCX, their payments processor Custodian Inc, or to the 388 affected Quadriga customers, the Globe and Mail writes. Entrepreneurs in the relatively new crypto sector industries complained for some time about bank non-cooperation. See:  International Anti-Money Laundering Standards for Crypto Expected in October The cryptocurrency press in South America has reported on numerous account closures by banks against crypto exchanges on the continent, some of which are now being contested in courts by, among others, exchanges like Walltime in Brazil. Sources within the Toronto crypto entrepreneur scene say they have suffered persistent problems with getting their businesses banked in the city- even at credit unions- and have ...
Read More
CIBC Has Frozen $28 Million of Vancouver Crypto Exchange’s Funds Since January
Crunchbase News | Alex Wilhelm | October 8, 2018 Meet Nubank, a fintech shop out of Brazil that just raised $180 million from Tencent at a valuation of $4 billion. Forget the fact that the round is half secondary. It’s an enormous transaction, and in more normal times, it would cause a big stir. However, the capital event highlights something notable about Tencent: the China-based company’s investment cadence is staggering. Tencent is disbursing cash at a far faster rate than Alibaba, another Chinese tech shop that isn’t famous for parsimony. Tencent’s Early Christmas Tencent has been on a check-cutting bing recently, getting through eight investing rounds in September. Those ranged from a $1.5 billion deal with Lianjia (real estate services), a $450 million round for MissFresh E-Commerce (mobile grocery sales), to the comparatively staid $90 million Series B for WeShare (fintech something or other). October is looking similarly hot. Tencent is at four deals so far, and the month isn’t even half done. Here’s the list: October 1. Miniso’s 1 billion rmb Series A. October 4. Voyager Innovation’s $175 million private equity round. October 5. Bilibili’s $317.6 million post-IPO equity event. October 8. Nubank’s $180 million Series F (half secondary). Regarding Nubank, TechCrunch’s Jon Shieber has the ...
Read More
Nubank Investment Underscores Tencent’s Quick Investing Pace

 

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Whitepaper Provides Information About Cryptocommodities As The Basis For A Stable Cryptocurrency

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Incipient Industries | Steven Dryall | Sep 19, 2018

Incipient Industries Releases Whitepaper Describing How Cryptocommodities  Are Created and Used As The Basis For A Stable Cryptocurrency

Toronto, ON, Canada, September 17, 2018 - Incipient Industries Inc. announces the release of the definitive whitepaper on the subject of cryptocommodities. Following years of development combined with the dissemination of information related to cryptocurrency viability and asset- based cryptocurrencies, an actual description of how to deploy a cryptocommodity  is now available. This is a first in the burgeoning cryptocurrency industry and represents a significant step towards a stabilized digital economy.

The cryptocurrency industry is still developing and discovering ways to integrate with traditional financial systems or to replace them altogether. The introduction of cryptocoomodities into the cryptosphere creates a new category of opportunities for pioneers in the space. For those seeking a solution to a stable cryptocurrency, this is the best path to success.

See:  3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith

“This is a perfect use case for cryptocurrency and also follows the Three Pillars of a Viable Cryptocurrency framework.” says Steven Dryall, CEO of Incipient Industries, who has pioneered several key concepts of the emerging digital economy.  According to the whitepaper, cryptocommodities are an essential part of a complete digital economy;

"The functional decentralized equivalent of all financial tools do not exist. Lack of these instruments is a significant contributor to the overall volatility of cryptocurrency markets. Solutions to fill these gaps are needed to forge a viable, global digital economy.”

The next stages for Incipient Industries, after the publication of the whitepaper, include the deployment of cryptocommodities and proving use cases for a carefully selected cluster of digital assets. These deployments will follow methods that are both compliant and viable. A significant influx of cryptocommodities projects that are not initiated by Incipient Industries are also expected to enter the market following the publication of the whitepaper.

The whitepaper is available for download at the Incipient Industries website as well as other platforms where Incipient Industries has a presence.

White paper intro:

The purpose of this document is to explain the implementation and purpose of a cryptocommodity.  This document will explain what a cryptocommodity  is and outline the necessary considerations for a functional ecosystem. The ecosystem is intended to support a single type of cryptocommodity  using a predefined underlying resource. This ecosystem is designed to be replicable to enable expansion and reusability for other underlying resource quantities and types.  Regulatory or legal structure is beyond the scope of this document. Elements of a cryptocommodity  implementation will likely reach beyond a single territory so regulatory and legal structures are based on the jurisdiction of the deployment logistics.  This document is intended to be “resource-neutral”, meaning that knowing the nature of the underlying resource used in the creation of the cryptocommodity  is not required for understanding the information presented.  This document is “platform-neutral”  with regard to technology solutions. The technology platform options are specific to deployment logistics and are not necessary for understanding the information presented.  The examples provided contain elements that are interchangeable. Parts that are specific to cryptocurrency deployment are also replicable and potentially interchangeable.

Download the 12pg whitepaper (PDF) --> here

###

About Incipient Industries Inc.:

Incipient Industries is a company based in Toronto, Ontario, Canada. Incipient Industries has been involved with many pioneering cryptocurrency initiatives and continues to create innovative solutions for the cryptocurrency industry. The company website is http://incipient.ca.  Steven Dryall is the CEO of Incipient Industries and Co-founder of Nikola Tesla Unite Ltd. He is also co-author of The WealthTECH Book, published by Wiley, and a lecturer for The FinTECH Circle Institute. He can be followed on Twitter at @SDryall

 

 


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, blockchain and 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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Beam Platform | Alec Gordon | Aug 24, 2018 THE PROBLEM The tech industry has gotten a rude awakening this year. Following a few high profile instances of data misuse, European Union has struck down the law and put everyone who sells into Europe (or deals with anyone who does) on notice. Since introduction, GDPR was meant to show both corporations and their users that better clarity around data collection/preservation is the necessary step forward, one that will lead to a fairer digital society, and ultimately benefit all those involved. And in order to do that, the companies themselves must take matters into their own hands by building new tools to let data flow back to the user. The customers demand it, and equally deserve to have control over their digital footprint. In the end this is an EU bill with global ramifications, and we should all be paying attention. By now you most of you have gotten dozens of emails on “updates to privacy policy” and other notices of forthcoming compliance. This is a welcome reminder that it is you, the user, who’s the focal point GDPR. After decades of computer and telephone use, the companies with whom we ...
Read More
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Competition Bureau | Oct 10, 2018 Speech Remarks by Interim Commissioner of Competition Matthew Boswell Global Series 2018 October 10, 2018 Ottawa, Ontario Thank you. I’m pleased to be here to speak with you today. Thank you Makan, for your thoughts on these important issues. They are particularly relevant to businesses, the legal community, academia and governments around the world and to all of you who are gathered here today. Every day we see the world evolving at a rapid pace, thanks to innovation.  Development of new technologies, ways of doing business and the creation of new products have the potential to open up new areas of science, medicine and technology. Small steps lead to bigger steps.  And here in Canada, we have to be ready for both the challenges and opportunities that this is bringing to all of us. Let’s understand what we are up against. Every year, innovation in the top industrialized countries is tracked by leading authorities on the subject. And here’s what they report about Canada in 2018. On the plus side, Canada performs better than some others in four big areas: Human Capital and Research, Institutions, Infrastructure, and Market Sophistication. See:  Canada’s ‘innovation economy’ has ...
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Crowdfund Insider | Cali Haan | Oct 9, 2018 Vancouver-based cryptocurrency exchange QuadrigaCX has been defending itself in court for the release of $28 million dollars in customer funds frozen by the Canadian Imperial Bank of Commerce (CIBC) since January, the Globe and Mail reports. According to court documents filed by CIBC in the Canadian province of Ontario, the action to freeze the accounts was taken because the bank says, “it was unable to determine who owns the funds,” and would like the court to take possession of the money and distribute it to either QuadrigaCX, their payments processor Custodian Inc, or to the 388 affected Quadriga customers, the Globe and Mail writes. Entrepreneurs in the relatively new crypto sector industries complained for some time about bank non-cooperation. See:  International Anti-Money Laundering Standards for Crypto Expected in October The cryptocurrency press in South America has reported on numerous account closures by banks against crypto exchanges on the continent, some of which are now being contested in courts by, among others, exchanges like Walltime in Brazil. Sources within the Toronto crypto entrepreneur scene say they have suffered persistent problems with getting their businesses banked in the city- even at credit unions- and have ...
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Nubank Investment Underscores Tencent’s Quick Investing Pace

 

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Autonomous Next Report: Crypto Utopia (and Global Temperature Map at a Glance)

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Autonomous NEXT | mid-year 2018 Report

Overview

Over $20 billion has been raised by Crypto projects through Initial Coin Offerings since the start of 2017. That’s $18 billion more than a year ago, when we released our first primer on the space, Token Mania. So what has this Cambrian Explosion brought to financial services? In this analysis, Autonomous tracks the complex themes developing within the crypto economy, separating underlying technology progress and institutionalization from the bubbly noise.

Additionally, global law firm Latham & Watkins offers its views on current global regulatory approaches to crypto assets, as well as common tax considerations.

See: 

We are excited to share with you our latest keystone analysis, called “Crypto Utopia”, which seeks to explore the crypto landscape over the past year and deep-dive into the status quo for crypto funds, ICOs, and the regulation that governs them. We highlight the difficult path from ICO to a successful large-cap liquid coin, touching on how the financial industry is working to build tokens into an asset class, which would place the current nascent $300 billion of market cap as part of the $10 trillion in global Alternative investments, and eventually as part of the $500 trillion representing all securities and assets.

Key Takeaways

  • 2018 YTD has seen $12 billion in ICO funding, vs $7 billion for last year, but nearly half of that funding is EOS ($4.2 billion) and Telegram ($1.7 billion) hiding emerging weakness in the ICO system.
  • The path from ICO to a successful large-cap liquid coin is difficult, and is often exposed to scams and fraud which constitute as much as 20% of project white papers, phishing and hacking responsible for the theft of 15% of all crypto assets by market cap, and over 50% of ICO projects have failed to raise funds or are no longer operational.
  • Over 300 crypto funds have formed to invest in crypto assets, and control around AUM of $7.5-10 billion; however, assets are highly concentrated with a few entities, and the operating future for funds of less than $25 million is likely to be difficult
  • The financial industry is working to build tokens into an asset class, with developments across custody, institutional exchanges, decentralized exchanges, traditional financial products (e.g., Bitcoin futures) and Security Tokens
  • A variety of third parties – from legal to corporate advisory to exchanges – have formed in the ICO space to monetize solutions around these needs, driving the all-in price of an ICO process to $1-5 million, which is in turn passed on to investors through unreasonable valuations
  • We highlight emerging token taxonomies in the space, and propose a unified framework that incorporates public and private blockchains; and in conjunction with Latham & Watkins, we survey the regulatory and legal environment for crypto offerings across the world

Continue to the full download --> here


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

BusinessWire release | Accenture | Oct 17, 2018 Digital-only banks, fintechs and big tech companies are quietly gaining customers, while incumbents struggle to make strategic investments in their digital future NEW YORK & LONDON & HONG KONG--(BUSINESS WIRE)--New entrants to the banking market — including challenger banks, non-bank payments institutions and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks, according to new research from Accenture (NYSE:ACN). “As the banking industry experiences radical change, driven by regulation, new entrants and demanding consumers, banks will need to reassess their assets, strengths and capabilities to determine if they are taking their business in the right direction” Accenture analyzed more than 20,000 banking and payments institutions across seven markets to quantify the level of change and disruption in the global banking industry. The study found that the number of banking and payments institutions decreased by nearly 20 percent over a 12-year period — from 24,000 in 2005 to less than 19,300 in 2017. However, nearly one in six (17 percent) current institutions are what Accenture considers new entrants — i.e., companies entering the market after 2005. While few of these new players ...
Read More
Banks’ Revenue Growth at Risk Due to Unprecedented Competitive Pressure Resulting from Digital Disruption, Accenture Study Finds
Forbes | Michael del Castillo | Oct 18, 2018 The U.S. Securities and Exchange Commission is launching a portal for engaging with companies using blockchain, artificial intelligence and more. Available today, the new fintech hub, or FinHub for short, is designed to bring the SEC’s existing services to a single access point and provide an easier way for companies to communicate with the public. As startups building with blockchain increasingly come under the SEC’s attention, the new portal has the potential to streamline the process of building compliant platforms prior to launch. The SEC’s FinHub will be led by Valerie A. Szczepanik, senior advisor for digital assets and innovation and associate director in the SEC’s Division of Corporation Finance. “We’ve been doing these things for years,” Szczepanik told Forbes. “This is going to bring it all together.” The FinHub will be staffed by representatives from the SEC’s divisions and offices who have expertise and involvement in fintech-related issues. See:  Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens In addition to asking questions of the SEC, those who use the site will be able to request meetings. To increase engagement, a binary code “Easter egg” ...
Read More
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Gowling WLG | Shaela W. Rae | October 17 2018 Black market. Dark web. Illicit. Underground market. Illegitimate. Illegal. Organized crime. All words used to describe the illegal cannabis industry, until October 17, 2018 that is. Once it is legal to buy, possess or use cannabis for recreational purposes the discussion around the use of cannabis and how to procure it changes from hushed words in a corner to an open conversation in public. But is the public ready to embrace a substance that has been seen as illegitimate and "bad" for so long? If the experience in the US can be relied upon, the answer is "yes". According to investment bank Cowen & Co., the cannabis industry is expected to reach sales of approximately US$75-billion by 2030, up from US$6-billion in 2016, as the drug is more socially accepted. In the US today cannabis is illegal on a federal level as it is classified as a Schedule 1 narcotic, but cannabis is legal in 30 states for medicinal purposes, and in 9 states and Washington, DC, for recreational use for adults over the age of 21. See:  Canabis Company True Leaf Raises $14 Million in Cross Border US – ...
Read More
Cannabis & blockchain: Bad romance or a perfect match?
International Monetary Fund | Release | Oct 11, 2018 The International Monetary Fund and the World Bank Group today launched the Bali Fintech Agenda, a set of 12 policy elements aimed at helping member countries to harness the benefits and opportunities of rapid advances in financial technology that are transforming the provision of banking services, while at the same time managing the inherent risks. The Agenda proposes a framework of high-level issues that countries should consider in their own domestic policy discussions and aims to guide staff from the two institutions in their own work and dialogue with national authorities. The 12 elements (see table) were distilled from members’ own experiences and cover topics relating broadly to enabling fintech; ensuring financial sector resilience; addressing risks; and promoting international cooperation. “There are an estimated 1.7 billion adults in the world without access to financial services,” said IMF Managing Director Christine Lagarde. “Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks. We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not ...
Read More
The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Investment Executive | James Langton | Oct 12, 2018 Money laundering and tax evasion are key concerns Canadian policy-makers initially took a hands-off approach to cryptoassets. Now, in the wake of a bitcoin boom-and-bust and continuing growth in the cryptoassets market, policy-makers are taking a second look at the emerging phenomenon. In 2015, the Standing Senate Committee on Banking, Trade and Commerce issued one of Canada’s first reports examining the emerging cryptocurrency industry; that report recommends that policy-makers keep an eye on the space. Since then, the cryptoassets market has continued to grow. According to a report from the Bank of Canada (BoC), the global market capitalization for cryptoassets “grew rapidly” in 2017 and the daily transaction volume now is more than 75 times higher than it was in early 2017 – i.e., more than $25 billion a day. At this point, the BoC report states, traditional financial services institutions don’t have much, if any, direct exposure to cryptoassets, but the report cautions that these institutions could become exposed due to their clients’ trading in cryptoassets or through exchange trading in crypto-based derivatives. “Cryptoasset markets are evolving quickly and could have financial stability implications in the future if their size ...
Read More
Exploring cryptoasset regulation
NCFA Canada | Oct 13, 2018 Ep13-Oct 13:  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First About this episode:   On this episode, NCFA show host Manseeb Khan sits down with Ali Pourdad the CEO of Progressa who recently closed out an $84 million dollar round. They talk about P2P loans, loan services operating within the blockchain and why being people first business matters. Enjoy! (see Transcript) Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest:  ALI POURDAD, Co-founder and CEO, Progressa (LinkedIn) Bio:  Ali Pourdad has been CEO of Progressa since its inception in 2013. Under his leadership the Company has raised over $40 million of investor capital and invested over $2.0 million dollars in its proprietary "Powered by Progressa" decision engine for Canadian Enterprise partners looking to enhance collections strategy in a positive way. The company has grown to over 110 employees in Vancouver and Toronto. Ali has decisively positioned Progressa for its next generation of growth by recently executing on several initiatives, including creating one of Canada's most popular Exempt Market Bond Offerings and securing an $11.4 million Series A financing . Prior to co-founding Progressa, Ali worked in both corporate restructuring and audit & assurance, ...
Read More
FINTECH FRIDAY$ (EP.13-Oct 12):  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First with Ali Pourdad, Co-founder and CEO Progressa
Beam Platform | Alec Gordon | Aug 24, 2018 THE PROBLEM The tech industry has gotten a rude awakening this year. Following a few high profile instances of data misuse, European Union has struck down the law and put everyone who sells into Europe (or deals with anyone who does) on notice. Since introduction, GDPR was meant to show both corporations and their users that better clarity around data collection/preservation is the necessary step forward, one that will lead to a fairer digital society, and ultimately benefit all those involved. And in order to do that, the companies themselves must take matters into their own hands by building new tools to let data flow back to the user. The customers demand it, and equally deserve to have control over their digital footprint. In the end this is an EU bill with global ramifications, and we should all be paying attention. By now you most of you have gotten dozens of emails on “updates to privacy policy” and other notices of forthcoming compliance. This is a welcome reminder that it is you, the user, who’s the focal point GDPR. After decades of computer and telephone use, the companies with whom we ...
Read More
Data is a 2-way street in a post-GDPR world
Competition Bureau | Oct 10, 2018 Speech Remarks by Interim Commissioner of Competition Matthew Boswell Global Series 2018 October 10, 2018 Ottawa, Ontario Thank you. I’m pleased to be here to speak with you today. Thank you Makan, for your thoughts on these important issues. They are particularly relevant to businesses, the legal community, academia and governments around the world and to all of you who are gathered here today. Every day we see the world evolving at a rapid pace, thanks to innovation.  Development of new technologies, ways of doing business and the creation of new products have the potential to open up new areas of science, medicine and technology. Small steps lead to bigger steps.  And here in Canada, we have to be ready for both the challenges and opportunities that this is bringing to all of us. Let’s understand what we are up against. Every year, innovation in the top industrialized countries is tracked by leading authorities on the subject. And here’s what they report about Canada in 2018. On the plus side, Canada performs better than some others in four big areas: Human Capital and Research, Institutions, Infrastructure, and Market Sophistication. See:  Canada’s ‘innovation economy’ has ...
Read More
Advancing Competition in a Changing Marketplace
Crowdfund Insider | Cali Haan | Oct 9, 2018 Vancouver-based cryptocurrency exchange QuadrigaCX has been defending itself in court for the release of $28 million dollars in customer funds frozen by the Canadian Imperial Bank of Commerce (CIBC) since January, the Globe and Mail reports. According to court documents filed by CIBC in the Canadian province of Ontario, the action to freeze the accounts was taken because the bank says, “it was unable to determine who owns the funds,” and would like the court to take possession of the money and distribute it to either QuadrigaCX, their payments processor Custodian Inc, or to the 388 affected Quadriga customers, the Globe and Mail writes. Entrepreneurs in the relatively new crypto sector industries complained for some time about bank non-cooperation. See:  International Anti-Money Laundering Standards for Crypto Expected in October The cryptocurrency press in South America has reported on numerous account closures by banks against crypto exchanges on the continent, some of which are now being contested in courts by, among others, exchanges like Walltime in Brazil. Sources within the Toronto crypto entrepreneur scene say they have suffered persistent problems with getting their businesses banked in the city- even at credit unions- and have ...
Read More
CIBC Has Frozen $28 Million of Vancouver Crypto Exchange’s Funds Since January
Crunchbase News | Alex Wilhelm | October 8, 2018 Meet Nubank, a fintech shop out of Brazil that just raised $180 million from Tencent at a valuation of $4 billion. Forget the fact that the round is half secondary. It’s an enormous transaction, and in more normal times, it would cause a big stir. However, the capital event highlights something notable about Tencent: the China-based company’s investment cadence is staggering. Tencent is disbursing cash at a far faster rate than Alibaba, another Chinese tech shop that isn’t famous for parsimony. Tencent’s Early Christmas Tencent has been on a check-cutting bing recently, getting through eight investing rounds in September. Those ranged from a $1.5 billion deal with Lianjia (real estate services), a $450 million round for MissFresh E-Commerce (mobile grocery sales), to the comparatively staid $90 million Series B for WeShare (fintech something or other). October is looking similarly hot. Tencent is at four deals so far, and the month isn’t even half done. Here’s the list: October 1. Miniso’s 1 billion rmb Series A. October 4. Voyager Innovation’s $175 million private equity round. October 5. Bilibili’s $317.6 million post-IPO equity event. October 8. Nubank’s $180 million Series F (half secondary). Regarding Nubank, TechCrunch’s Jon Shieber has the ...
Read More
Nubank Investment Underscores Tencent’s Quick Investing Pace

 

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Fintech Reports and Research

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Aug-2018:  Pulse of Fintech 2018 (KPMG)
May-2018:  Regulating disruption (Mowat Centre)
Apr-2018:  Navigating the New Realities of Global Trade (McKinsey&Company)
Feb-2018:  Asean Fintech Census 2018 (EY)
Oct-2017:  The Value of Fintech (KPMG commissioned by City of London)
Sep-2017:  The Global FinTech Report: Q3 2017 (CB Insights)
Mar-2017:  Blockchain and Financial Inclusion (Chamber of Digital Commerce)
Feb-2017:  How blockchain technology could change our lives (European Parliament)

 


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, 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

BusinessWire release | Accenture | Oct 17, 2018 Digital-only banks, fintechs and big tech companies are quietly gaining customers, while incumbents struggle to make strategic investments in their digital future NEW YORK & LONDON & HONG KONG--(BUSINESS WIRE)--New entrants to the banking market — including challenger banks, non-bank payments institutions and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks, according to new research from Accenture (NYSE:ACN). “As the banking industry experiences radical change, driven by regulation, new entrants and demanding consumers, banks will need to reassess their assets, strengths and capabilities to determine if they are taking their business in the right direction” Accenture analyzed more than 20,000 banking and payments institutions across seven markets to quantify the level of change and disruption in the global banking industry. The study found that the number of banking and payments institutions decreased by nearly 20 percent over a 12-year period — from 24,000 in 2005 to less than 19,300 in 2017. However, nearly one in six (17 percent) current institutions are what Accenture considers new entrants — i.e., companies entering the market after 2005. While few of these new players ...
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Banks’ Revenue Growth at Risk Due to Unprecedented Competitive Pressure Resulting from Digital Disruption, Accenture Study Finds
Forbes | Michael del Castillo | Oct 18, 2018 The U.S. Securities and Exchange Commission is launching a portal for engaging with companies using blockchain, artificial intelligence and more. Available today, the new fintech hub, or FinHub for short, is designed to bring the SEC’s existing services to a single access point and provide an easier way for companies to communicate with the public. As startups building with blockchain increasingly come under the SEC’s attention, the new portal has the potential to streamline the process of building compliant platforms prior to launch. The SEC’s FinHub will be led by Valerie A. Szczepanik, senior advisor for digital assets and innovation and associate director in the SEC’s Division of Corporation Finance. “We’ve been doing these things for years,” Szczepanik told Forbes. “This is going to bring it all together.” The FinHub will be staffed by representatives from the SEC’s divisions and offices who have expertise and involvement in fintech-related issues. See:  Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens In addition to asking questions of the SEC, those who use the site will be able to request meetings. To increase engagement, a binary code “Easter egg” ...
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SEC Launches Fintech Hub To Engage With Cryptocurrency Startups And More
Gowling WLG | Shaela W. Rae | October 17 2018 Black market. Dark web. Illicit. Underground market. Illegitimate. Illegal. Organized crime. All words used to describe the illegal cannabis industry, until October 17, 2018 that is. Once it is legal to buy, possess or use cannabis for recreational purposes the discussion around the use of cannabis and how to procure it changes from hushed words in a corner to an open conversation in public. But is the public ready to embrace a substance that has been seen as illegitimate and "bad" for so long? If the experience in the US can be relied upon, the answer is "yes". According to investment bank Cowen & Co., the cannabis industry is expected to reach sales of approximately US$75-billion by 2030, up from US$6-billion in 2016, as the drug is more socially accepted. In the US today cannabis is illegal on a federal level as it is classified as a Schedule 1 narcotic, but cannabis is legal in 30 states for medicinal purposes, and in 9 states and Washington, DC, for recreational use for adults over the age of 21. See:  Canabis Company True Leaf Raises $14 Million in Cross Border US – ...
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Cannabis & blockchain: Bad romance or a perfect match?
International Monetary Fund | Release | Oct 11, 2018 The International Monetary Fund and the World Bank Group today launched the Bali Fintech Agenda, a set of 12 policy elements aimed at helping member countries to harness the benefits and opportunities of rapid advances in financial technology that are transforming the provision of banking services, while at the same time managing the inherent risks. The Agenda proposes a framework of high-level issues that countries should consider in their own domestic policy discussions and aims to guide staff from the two institutions in their own work and dialogue with national authorities. The 12 elements (see table) were distilled from members’ own experiences and cover topics relating broadly to enabling fintech; ensuring financial sector resilience; addressing risks; and promoting international cooperation. “There are an estimated 1.7 billion adults in the world without access to financial services,” said IMF Managing Director Christine Lagarde. “Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks. We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not ...
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The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Investment Executive | James Langton | Oct 12, 2018 Money laundering and tax evasion are key concerns Canadian policy-makers initially took a hands-off approach to cryptoassets. Now, in the wake of a bitcoin boom-and-bust and continuing growth in the cryptoassets market, policy-makers are taking a second look at the emerging phenomenon. In 2015, the Standing Senate Committee on Banking, Trade and Commerce issued one of Canada’s first reports examining the emerging cryptocurrency industry; that report recommends that policy-makers keep an eye on the space. Since then, the cryptoassets market has continued to grow. According to a report from the Bank of Canada (BoC), the global market capitalization for cryptoassets “grew rapidly” in 2017 and the daily transaction volume now is more than 75 times higher than it was in early 2017 – i.e., more than $25 billion a day. At this point, the BoC report states, traditional financial services institutions don’t have much, if any, direct exposure to cryptoassets, but the report cautions that these institutions could become exposed due to their clients’ trading in cryptoassets or through exchange trading in crypto-based derivatives. “Cryptoasset markets are evolving quickly and could have financial stability implications in the future if their size ...
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Exploring cryptoasset regulation
NCFA Canada | Oct 13, 2018 Ep13-Oct 13:  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First About this episode:   On this episode, NCFA show host Manseeb Khan sits down with Ali Pourdad the CEO of Progressa who recently closed out an $84 million dollar round. They talk about P2P loans, loan services operating within the blockchain and why being people first business matters. Enjoy! (see Transcript) Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest:  ALI POURDAD, Co-founder and CEO, Progressa (LinkedIn) Bio:  Ali Pourdad has been CEO of Progressa since its inception in 2013. Under his leadership the Company has raised over $40 million of investor capital and invested over $2.0 million dollars in its proprietary "Powered by Progressa" decision engine for Canadian Enterprise partners looking to enhance collections strategy in a positive way. The company has grown to over 110 employees in Vancouver and Toronto. Ali has decisively positioned Progressa for its next generation of growth by recently executing on several initiatives, including creating one of Canada's most popular Exempt Market Bond Offerings and securing an $11.4 million Series A financing . Prior to co-founding Progressa, Ali worked in both corporate restructuring and audit & assurance, ...
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FINTECH FRIDAY$ (EP.13-Oct 12):  Road to Fintech IPO:  Capital Networks, Scalable Solutions, Putting People First with Ali Pourdad, Co-founder and CEO Progressa
Beam Platform | Alec Gordon | Aug 24, 2018 THE PROBLEM The tech industry has gotten a rude awakening this year. Following a few high profile instances of data misuse, European Union has struck down the law and put everyone who sells into Europe (or deals with anyone who does) on notice. Since introduction, GDPR was meant to show both corporations and their users that better clarity around data collection/preservation is the necessary step forward, one that will lead to a fairer digital society, and ultimately benefit all those involved. And in order to do that, the companies themselves must take matters into their own hands by building new tools to let data flow back to the user. The customers demand it, and equally deserve to have control over their digital footprint. In the end this is an EU bill with global ramifications, and we should all be paying attention. By now you most of you have gotten dozens of emails on “updates to privacy policy” and other notices of forthcoming compliance. This is a welcome reminder that it is you, the user, who’s the focal point GDPR. After decades of computer and telephone use, the companies with whom we ...
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Data is a 2-way street in a post-GDPR world
Competition Bureau | Oct 10, 2018 Speech Remarks by Interim Commissioner of Competition Matthew Boswell Global Series 2018 October 10, 2018 Ottawa, Ontario Thank you. I’m pleased to be here to speak with you today. Thank you Makan, for your thoughts on these important issues. They are particularly relevant to businesses, the legal community, academia and governments around the world and to all of you who are gathered here today. Every day we see the world evolving at a rapid pace, thanks to innovation.  Development of new technologies, ways of doing business and the creation of new products have the potential to open up new areas of science, medicine and technology. Small steps lead to bigger steps.  And here in Canada, we have to be ready for both the challenges and opportunities that this is bringing to all of us. Let’s understand what we are up against. Every year, innovation in the top industrialized countries is tracked by leading authorities on the subject. And here’s what they report about Canada in 2018. On the plus side, Canada performs better than some others in four big areas: Human Capital and Research, Institutions, Infrastructure, and Market Sophistication. See:  Canada’s ‘innovation economy’ has ...
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Advancing Competition in a Changing Marketplace
Crowdfund Insider | Cali Haan | Oct 9, 2018 Vancouver-based cryptocurrency exchange QuadrigaCX has been defending itself in court for the release of $28 million dollars in customer funds frozen by the Canadian Imperial Bank of Commerce (CIBC) since January, the Globe and Mail reports. According to court documents filed by CIBC in the Canadian province of Ontario, the action to freeze the accounts was taken because the bank says, “it was unable to determine who owns the funds,” and would like the court to take possession of the money and distribute it to either QuadrigaCX, their payments processor Custodian Inc, or to the 388 affected Quadriga customers, the Globe and Mail writes. Entrepreneurs in the relatively new crypto sector industries complained for some time about bank non-cooperation. See:  International Anti-Money Laundering Standards for Crypto Expected in October The cryptocurrency press in South America has reported on numerous account closures by banks against crypto exchanges on the continent, some of which are now being contested in courts by, among others, exchanges like Walltime in Brazil. Sources within the Toronto crypto entrepreneur scene say they have suffered persistent problems with getting their businesses banked in the city- even at credit unions- and have ...
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CIBC Has Frozen $28 Million of Vancouver Crypto Exchange’s Funds Since January
Crunchbase News | Alex Wilhelm | October 8, 2018 Meet Nubank, a fintech shop out of Brazil that just raised $180 million from Tencent at a valuation of $4 billion. Forget the fact that the round is half secondary. It’s an enormous transaction, and in more normal times, it would cause a big stir. However, the capital event highlights something notable about Tencent: the China-based company’s investment cadence is staggering. Tencent is disbursing cash at a far faster rate than Alibaba, another Chinese tech shop that isn’t famous for parsimony. Tencent’s Early Christmas Tencent has been on a check-cutting bing recently, getting through eight investing rounds in September. Those ranged from a $1.5 billion deal with Lianjia (real estate services), a $450 million round for MissFresh E-Commerce (mobile grocery sales), to the comparatively staid $90 million Series B for WeShare (fintech something or other). October is looking similarly hot. Tencent is at four deals so far, and the month isn’t even half done. Here’s the list: October 1. Miniso’s 1 billion rmb Series A. October 4. Voyager Innovation’s $175 million private equity round. October 5. Bilibili’s $317.6 million post-IPO equity event. October 8. Nubank’s $180 million Series F (half secondary). Regarding Nubank, TechCrunch’s Jon Shieber has the ...
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Nubank Investment Underscores Tencent’s Quick Investing Pace

 

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