Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Research
Mastercard Announces Cybersecurity Winners and 6 New Start Path Participants
Cybersecurity | May 13, 2024
Image: Freepik/upklyak
Congratulations to Mastercard UNB Cybersecurity Scholarship Winners
The University of New Brunswick (UNB) has proudly announced the winners of the Mastercard Cybersecurity Scholarship, Vaishnavi Shanmugam and Erika Thea Ajes. This prestigious award grants each recipient $25,000 to support their studies in UNB's Master of Applied Cybersecurity and the Research-Intensive Cyber Knowledge Studies programs, emphasizing the importance of advancing cybersecurity education and research.
See: The State of Cybersecurity in The Fintech Industry
The Mastercard Cybersecurity Scholarship is an investment in the future of digital security. Both recipients are involved in forward-thinking cybersecurity projects at UNB, with Shanmugam focusing on network security enhanced by machine learning, and Thea Ajes specializing in developing robust software against cyber threats. Their work is expected to contribute significantly to the evolving landscape of fintech security, offering fresh insights into protecting digital assets and infrastructures.
Vaishnavi Shanmugam:
"Being a mom to a one-year-old daughter while navigating my studies is a challenging journey. UNB, CIC and Mastercard have recognized my hard work and awarded me this scholarship. This support extends beyond financial assistance; it has significantly reduced the burden of my education loan and given me the time to focus more on my studies.”
Erika Thea Ajes:
“I was amazed when I got the news, especially since it was my first time applying for a scholarship. The news lifted a weight off my shoulders and brought immense relief to my family back in the Philippines. I’m looking forward to the RICKS training program with CIC and Mastercard, and I can’t fully express my gratitude and excitement for this opportunity.”
See: Canadian Fintech VoPay and Mastercard Partner to Move Money
The Mastercard Cybersecurity Scholarship not only alleviates the financial burden for its recipients but also enriches the fintech ecosystem by nurturing innovators like Shanmugam and Thea Ajes. Congratulations to the scholarship winners, and kudos to Mastercard for their commitment to empowering the next generation of cybersecurity experts.
Mastercard Announces 6 New Startups Participating in Startup Path Program
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Trends in Reg CF for Minority and Women Founders
Regulation Crowdfunding Report | May 9, 2024
Image: SEC, Office of the Advocate for Small Business Capital Formation
Regulation Crowdfunding is Shaping Opportunities for Minority and Women Entrepreneurs
The Securities and Exchange Commission (SEC), Office of the Advocate for Small Business Capital Formation (OASB) published a report by researcher Melody Cheng called "Women and Minority-owned Businesses in Regulation Crowdfunding' showcasing the increasing trend of how Regulation Crowdfunding (Reg CF) is reshaping the demographics of access capital, moving away from traditional venture capital and angel investment avenues.
- From 2016 to 2022, the proportion of women entrepreneurs participating in Reg CF increased from 17.3% to 22.5%. Similarly, there was a notable decrease in the proportion of White entrepreneurs from 83.4% to 73.0%, while the proportions of Asian, Black, and Hispanic entrepreneurs all saw increases.
See: Fintech Fridays EP62: The Future of Investment Crowdfunding: Innovations, Data, and Opportunities
- Data suggests that women and minorities have a higher success rate securing funding via Reg CF compared to traditional funding sources like venture capitalists and angel investors, indicating a more accessible and potentially less biased funding avenue.
- Reg CF's relatively low offering cap and streamlined process make it an ideal platform for startups and smaller businesses that might not have the collateral or business history required by traditional lenders.
- While there is positive momentum, challenges remain in terms of broader education about crowdfunding processes and the need for ongoing support to ensure these businesses can scale and sustain growth.
Policy Recommendations
The policy recommendations from the SEC report on minority and women activity under Reg CF include strategies aimed at boosting participation and providing ongoing support for these groups of entrepreneurs.
- The report suggests that the government could play a vital role by offering financial support programs such as grants or loans to firms that invest in or acquire startups led by diverse teams. This financial support would help these businesses scale and achieve sustainable growth.
- Encouraging strategic partnerships that could lead to strategic alliances or acquisitions is another recommended policy. These relationships could provide critical networking and mentorship opportunities, and potentially pave the way for successful exits for minority and women-led startups.
See: CCA Report: Investment Crowdfunding 2024: Key Insights
- Addressing educational gaps is crucial. This involves providing training and resources that prepare women and minority entrepreneurs to effectively utilize Reg CF. These initiatives would cover everything from understanding the legal requirements to mastering the financial management skills necessary for running a successful crowdfunding campaign.
- The report calls for robust pre-funding and post-funding support structures. This could include mentorship programs, technical assistance, and continuous advisory services to ensure the long-term viability of funded projects.
- Cultivating an inclusive culture within the investment community is essential. This means encouraging more diversity among investors and adjusting investment criteria that might disproportionately disadvantage certain groups.
- Achieving a more inclusive and equitable entrepreneurial ecosystem requires the combined efforts of policymakers, crowdfunding platforms, traditional investors, and other stakeholders in the entrepreneurial community.
See: The Real Story of Access to Capital
These recommendations are intended to remove barriers and enhance the ability of minority and women entrepreneurs to access and benefit from crowdfunding opportunities, thus promoting a more inclusive entrepreneurial ecosystem.
Closing
As policymakers and industry stakeholders continue to refine these platforms, the potential for fostering a more equitable business environment looks promising.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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37% Globally to Use Local Payment Methods by 2028
Payments | May 7, 2024
Image: Boku 2024 Global Ecommerce Report
Local Payment Methods to Reach 58% of All Ecommerce Transaction Payment Value Globally by 2028
The 2024 Boku Global Ecommerce Report, produced in collaboration with Juniper Research, offers a detailed analysis of the rapidly evolving landscape of global ecommerce and payment systems drawing from extensive data across 37 major markets to provide insights into the current trends and future directions of the payments industry.
See: Process Flow Comparison: How VISA Works When Swiping a Credit Card at a Merchant’s Shop VS Digital Wallet
Traditional credit card usage like Visa and Mastercard are facing significant headwinds due to the rapid adoption of local payment methods that cater more closely to regional consumer behaviors and needs. These methods often offer greater security, lower fees, and are better integrated into mobile and digital user experiences. Furthermore, regulatory initiatives aimed at reducing foreign dependency in financial transactions are compelling markets to adopt and promote local payment infrastructures.
- Traditional global card networks like Visa and Mastercard are losing share at checkout points to various local and regional payment methods. These include digital wallets, direct account-to-account (A2A) payments, and buy now, pay later (BNPL) offerings. The transition reflects consumer preference for payment solutions that are tailored to local needs and offer added security and convenience.
- Account-to-Account (A2A) payments are growing significantly due to their cost-effectiveness and speed over traditional bank transfers. They're becoming a preferred method, especially in regions where digital wallets and mobile money solutions are prevalent. This trend is expected to continue as these solutions integrate more seamlessly with other financial services.
- BNPL schemes are increasingly popular as they offer consumers a way to manage cash flow better without immediate financial burden. This method is attractive in both developed and emerging markets, with ecommerce platforms and merchants quickly adopting BNPL to increase their appeal and customer base. While not as pervasive as in regions like Europe or Asia, there is growing interest in BNPL solutions among Canadian consumers. This interest is driven by the flexibility these services offer, allowing consumers to manage their budgeting more effectively without immediate financial strain.
See: Canada’s Payment Landscape 2009-2022 – BoC
- In regions like Asia-Pacific, super apps that integrate various services including payments, shopping, social media, and more, are reshaping consumer expectations and behavior. These platforms are enhancing the stickiness of digital wallets and are central to the digital payment ecosystems in their respective markets. See: China’s CBDC: Offline Digital Yuan Payments via Super SIM Cards
- Governments and regulators are playing a crucial role in shaping the payment landscapes by fostering the development of local payment infrastructures that reduce dependency on international card networks and enhance national economic sovereignty. These efforts are leading to the introduction of new standards and protocols for payments, and a reduction in costs, further encouraging innovation in local payment methods.
Implications
- Canadian businesses and merchants must adapt their payment strategies to include a variety of payment options that cater to local preferences and regulatory requirements, ensuring they remain competitive and relevant while maintaining security and user experience.
- Staying abreast of regulatory changes and engaging with policymakers can help businesses anticipate and adapt to changes in the payment landscape, ensuring compliance and leveraging regulatory support for innovation.
- The increasing popularity of BNPL and digital wallets presents new opportunities for financial services providers to develop and offer new products that meet changing consumer demands. Experian to Include Apple’s BNPL Data in Credit Reports
See: JPMorgan’s New Programmable Payments in Blockchain | “Crypto’s Back”, Stripe to Support On-Chain USDC Payments
- As payment technologies evolve, there is a need for consumer education to ensure that users understand the benefits and potential risks associated with new payment methods.
Conclusion
Overall, the 2024 Boku Global Ecommerce Report serves as a crucial resource for understanding the dynamics of the global payments industry, offering valuable insights for businesses looking to navigate the complexities of modern ecommerce environments. Visit NCFA's fintech industry reports and research page for more
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Global VC Hotspots: A Look at Top Growth Cities
Report | May 6, 2024
Image: Pitchbook Top VC Cities Overall by Development and Growth score (Q3 2017 to Q2 2023)
Calgary Among Pitchbook's 'Growth' Top 20 Global VC Ecosystem Rankings (Last 5 Years)
The latest PitchBook Analyst Note, "Global VC Ecosystem Rankings,"ranks cities on two main scores providing insights for investors and founders looking at emerging and developed VC landscapes. These scores are derived from proprietary data, considering factors such as deal value, exit value, and fund count. Development scores reflect the size and maturity of the ecosystems, emphasizing regions with extensive capital activities and high-value exits. Growth scores, on the other hand, assess the rate of change in these activities, highlighting emerging areas that could promise higher returns.
Top 10 Cities by Overall Score (Q3-2017 to Q2-2023)
See: AI Metamorphosis in Venture Capital
Here's the Global VC list of the top 20 cities ranked by Overall Score per Pitchbook proprietary data.
- North America 40%
- Asia 40%
- Europe 20%
| Location | Region | Development Score | Growth Score | Overall Score |
|---|---|---|---|---|
| San Francisco | North America | 89.4 | 18.9 | 68.3 |
| New York | North America | 75.8 | 44.9 | 66.5 |
| Shanghai | Asia | 71.7 | 41.8 | 62.7 |
| Los Angeles | North America | 70.8 | 34.4 | 59.9 |
| London | Europe | 63.2 | 49.9 | 59.2 |
| Beijing | Asia | 74.9 | 18.7 | 58.0 |
| Boston | North America | 70.4 | 28.9 | 58.0 |
| Berlin | Europe | 51.8 | 71.8 | 57.8 |
| Shenzhen | Asia | 61.2 | 43.4 | 55.9 |
| Seoul | Asia | 59.0 | 47.2 | 55.5 |
Top 20 Cities by Growth Score (Q3-2017 to Q2-2023)
Now, here's a look at the Global VC list of the top 20 cities ranked by Growth Score which is based on several factors, including:
See: CVCA Publishes ‘The 50’, 3rd Guide to Canada’s VC Ecosystem
| City | Region | Deal Count | Exit Value (Billion $) | Exit Count | Fund Value (Billion $) | Fund Count | Growth Score |
|---|---|---|---|---|---|---|---|
| Dubai | Middle East | 815 | 3.7 | 35 | 1.5 | 20 | 72.8 |
| Detroit | North America | 694 | 3.7 | 63 | 1.1 | 34 | 72.5 |
| Berlin | Europe | 2,293 | 13.4 | 256 | 8.8 | 85 | 71.8 |
| Raleigh | North America | 1,016 | 6.5 | 85 | 1.6 | 32 | 71.3 |
| Houston | North America | 934 | 4.4 | 88 | 1.2 | 41 | 70.3 |
| Nanjing | Asia | 1,289 | 14.7 | 31 | 12.9 | 171 | 69.6 |
| Madrid | Europe | 987 | 0.3 | 69 | 1.9 | 39 | 69.5 |
| Milan | Europe | 679 | 0.7 | 70 | 1.6 | 37 | 69.3 |
| Tallinn | Europe | 559 | 0.2 | 20 | 0.4 | 10 | 67.1 |
| Vienna | Europe | 490 | 1.3 | 42 | 0.7 | 15 | 66.4 |
| Istanbul | Europe | 681 | 2.9 | 26 | 0.3 | 16 | 66.0 |
| Calgary | North America | 422 | 0.4 | 22 | 0.1 | 7 | 65.4 |
| Changsha | Asia | 378 | 10.1 | 23 | 3.4 | 45 | 65.1 |
| Gurgaon | Asia | 516 | 0.8 | 31 | 0.2 | 5 | 63.8 |
| Indianapolis | North America | 540 | 0.6 | 47 | 0.3 | 20 | 62.5 |
| Miami | North America | 1,975 | 10.6 | 116 | 5.7 | 109 | 60.5 |
| Philadelphia | North America | 2,367 | 10.9 | 172 | 2.2 | 54 | 58.1 |
| Sao Paulo | South America | 1,532 | 37.3 | 145 | 3.4 | 75 | 57.7 |
| Lyon | Europe | 338 | 0.2 | 23 | 0.2 | 5 | 57.2 |
| St. Louis | North America | 389 | 1.5 | 42 | 1.1 | 27 | 56.9 |
Regional Breakdown of Top 20 Growth Cities
- North America: 8 cities (40%)
- Europe: 7 cities (35%)
- Asia: 3 cities (15%)
- Middle East: 1 city (5%)
- South America: 1 city (5%)
Conclusion
According to Pitchbook, these rankings highlight the cities that are spearheading innovation and growth, making them pivotal arenas for venture capital investment and startup development in the coming years.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canadian Entrepreneurs Voice Concerns Over 2024 Budget
Survey | May 3, 2024
Image: MaRS Canada's Budget 2024, Founders Perspective Capital Gains Tax
Canadian Founders Voice Concerns and Call for Supportive Policies in Wake of Budget 2024
The release of Canada's Budget 2024 has ignited strong reactions from the nation's entrepreneurial sector, particularly regarding changes in capital gains tax and the broader implications for startup growth and innovation. In response, a comprehensive survey conducted by MaRS, Invest Ottawa, and Communitech has brought forward the perspectives of over 150 founders and CEOs, revealing a community eager for change and supportive policies that can bolster Canada's status as a competitive tech hub.
New Tax Policies Will Stifle Innovation and Investment
One of the standout concerns from the survey is the modification to capital gains tax, which many respondents believe could stifle the entrepreneurial spirit that drives innovation. Nearly 60% of the founders expressed that the new tax policies would deter innovation and investment, with 21.9% fearing it would hamper job creation and talent recruitment.
See: Canada’s Capital Gains Tax Changes Sparks Economic Debate
The sentiment is that these changes may force many to look outside Canada for better incentives, with a significant number contemplating moving their operations to more favorable environments like the United States.
“I expect less Canadian investors [in my company] with most new investors being from the U.S. This will slowly lead to ownership change in the corporation. Furthermore, Company investments will mostly be in the USA.”
“My focus will be on non-Canadian [capital] sources and therefore moving will more likely be necessary.”
“All my subsequent business will be built outside of Canada.”
“After 11 years of very hard work… I'm done with being treated like a greedy bastard instead of a creator of high paying jobs.”
See: Small Step Forward As Feds Publish Straw-man Open Banking Framework
The Need for a Nurturing Ecosystem
Image: MaRSk/Communitech/Invest Ottawa: Budget 2024 Founder perspective, What would help entrepreneurs
The survey results underscore a critical need for a more nurturing business environment in Canada. Entrepreneurs are calling for policies that not only support innovation from a financial aspect but also through reduced bureaucratic hurdles and enhanced government procurement processes that favor home-grown companies. Suggestions from the community include:
- Aligning Canadian tax policies more closely with those of the U.S., especially the Qualified Small Business Stock (QSBS) system, to create a more favorable investment climate.
- Implementing tax credits to incentivize investments in Canadian innovation and extending favorable capital gains tax rates to all tech industry workers, not just executives.
- Reducing bureaucratic barriers and simplifying the government procurement process to better support startups ('first customer').
See: CCA Report: Investment Crowdfunding 2024: Key Insights
Despite the challenges, Canadian entrepreneurs remain committed to fostering economic growth and job creation. However, they emphasize the necessity for the government to partner effectively with the private sector to create conditions that can sustain the growth of tech companies in Canada. This includes considering the broader economic goals of the nation and integrating entrepreneurial needs into policy making effectively.
Decline in Productivity and Entrepreneurship
From coast to coast, Canadian insolvencies are up. In Ontario for example, corporate insolvencies are up 221% year over year. The survey also touches on the broader economic impact of declining entrepreneurship, highlighting the correlation with Canada's falling productivity rates and standard of living. The data shows a clear decline in the number of self-employed Canadians with employees since 2000, indicating a lessening appeal of entrepreneurship in the current economic and policy environment.
Image: MaRS/Communitech/Invest Ottawa: Budget 2024 Founder perspective - Insolvencies Up, Total Self Employed down
Conclusion
It's clear that times are tough but especially for Canadian founders and entrepreneurs. For Canada to maintain and enhance its competitiveness on the global stage, supportive, clear, and beneficial policies are essential for economic growth, value capture and the survival of vibrant entrepreneurial ecosystem.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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2024 Sees Diverging Paths for Dividends and Wages
Economics and Finance | May 2, 2024
Image: Freepik/teravector
Global Dividend Growth Outpaces Wage Increases
Recent studies reveal a stark divergence between the growth of dividends and wages worldwide. An Oxfam study highlights that over the past three years, dividends grew 14 times faster than wages across 31 major economies. This widening gap underscores a deepening economic disparity, with shareholders benefiting significantly more than employees from corporate profits. This trend is not only indicative of the economic landscape but also serves as a critical entry point into discussing why companies issue dividends and what this means for investors and fintechs.
- The index encompasses the top 1,200 global companies, accounting for 90% of the world's dividend payments. According to the report, between 2020 and 2023, dividend distributions surged by 45%, totaling $195 billion across 31 countries, while wage growth remained modest at only 3%.
See: Seedrs to Offer Investors Venture Capital Trusts
- In the UK, dividends rose by 13% from 2020 to 2023 after adjusting for inflation, while wages remained stagnant. This highlights a specific instance of broader global trends where shareholder gains vastly outpace those of employees.
- Research from the Common Wealth thinktank indicates that over a 30-year period in the UK, dividends grew 5.5 times faster than wages annually on average. If wages had kept pace, workers would be significantly better off annually.
Long-Term Economic Implications
The long-term economic implications of dividends outpacing wage growth could be significant for countries in this situation:
- A continuous lag in wage growth relative to dividends could reduce overall consumer spending power. Since wages are a primary source of income for most people, stagnant wages can limit consumption, impacting sectors reliant on domestic spending.
- Enhanced dividend payouts primarily benefit those who own stocks, typically the wealthier segments of society. As dividends grow faster than wages, wealth disparities may widen, leading to increased economic inequality. This can have broad social consequences, including diminished social cohesion and increased political pressure for redistributive policies.
See: R/Note: Tokenized VC Dividends on Avalanche
- Over time, significant disparities in income growth can lead to economic instability. If the majority of the population sees little improvement in living standards, it could lead to decreased economic participation, lower productivity growth, and potentially more volatile economic cycles.
How Does the Capital Gains Tax Increase Factor Into This?
The recent changes to the capital gains tax in the 2024 federal budget could potentially influence long-term economic impacts, especially in contexts where dividends continue to outpace wage growth. The new rules will increase the capital gains inclusion rate from 50% to 66.67%, starting from June 25, 2024. This adjustment means that a larger portion of capital gains will be subject to taxation, potentially reducing the attractiveness of investments that are prone to generating significant capital gains.
- For businesses and investors, this might slow down investment strategies that heavily rely on capital gains, potentially impacting how companies distribute profits and thus affecting dividend growth over time. Additionally, the changes are projected to generate substantial tax revenues ($19.4 billion over five years), suggesting a significant impact on national economic policy and funding.
See: Canada’s Capital Gains Tax Changes Sparks Economic Debate
- Higher taxes on capital gains could/will discourage investment and reduce the disposable income of investors, possibly leading to reduced consumer spending. This, in turn, could affect overall economic stability, particularly if dividends and corporate profits continue to grow at rates significantly higher than wages.
What Do These Trends Mean for For Fintechs and Investors?
- Investors need to evaluate such dividend increases critically, understanding whether these increases are sustainable and what they say about the company’s long-term growth prospects. Increased dividends can improve the yield on their investment but might also mean the company is not investing in future growth.
- Investors who want to advocate against Canada's proposed new capital gains tax rules may be interested in supporting the Council of Canadian Innovator's Open Letter: Prosperity for Every Generation. Learn more about the pros and cons of Canada's newly proposed Capital Gains Tax in the 2024 federal budget.
- Fintech companies can leverage these trends to offer enhanced analytical tools, provide real-time dividend tracking, and create investment products that cater to income-seeking investors. Additionally, understanding dividend trends can help fintechs forecast market movements and advise their users accordingly.
5 Ways DAOs Can Streamline Dividend Management
A Decentralized Autonomous Organization (DAO) might offer several advantages for a company looking to consistently increase or manage dividends over time, especially in terms of governance, stakeholder engagement, and financial management.
- In a DAO, decisions are made democratically through a collective voting process where stakeholders (governance rights holders) vote on proposals, including those regarding dividend policies. This democratized structure can ensure that the decision to increase (or decrease) dividends aligns with the majority of stakeholders' interests, potentially leading to more consistent and sustainable dividend policies.
- DAOs can potentially increase stakeholder engagement by providing a transparent and direct way for investors to influence company policies, including dividend strategies. This might lead to greater investor satisfaction and loyalty, as stakeholders feel more directly involved in the company's financial decisions.
See: Wyoming Passes the DUNA Act, A Legal Framework for DAOs
- DAOs operate based on smart contracts that automatically execute agreed-upon actions when certain conditions are met. For dividend distribution, a DAO could automate and streamline the process, ensuring that dividend increases are executed precisely as voted on, reducing administrative overhead and the risk of errors or manipulation.
- The use of blockchain technology in DAOs provides an immutable record of all transactions and decisions, including those related to dividends. This transparency can increase trust among investors, as they can easily verify that dividends are being managed and distributed as promised.
- The agility of a DAO in decision-making might allow it to adapt more quickly to changing market conditions that affect dividend payouts. Rapid consensus through voting can enable quicker strategic shifts compared to traditional corporate structures, potentially maximizing dividend outputs in favorable conditions.
Outlook
As dividends continue to outpace wage growth, understanding the implications for economic stability and equity is crucial. By leveraging a DAO structure, a company might find it more feasible to implement and maintain a progressive dividend policy that aligns with the interests of a diverse group of stakeholders, ensuring the company's long-term financial health and attractiveness to investors.
See: Canada’s Lagging AI Adoption Needs to Accelerate to Compete
This structure could be particularly advantageous for companies in rapidly evolving industries or those seeking to engage a broad base of international investors.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Three Generations Discuss AI Concerns, Hopes, and the Future
AI Conversations | May 1, 2024
Image: Deloitte: Canada's AI imperative, Overcoming Risks, Building Trust
Discussing New Perspectives on AI Risks
Below is a hypothetical conversation at family gathering where a grandparent, a parent, and a teenage child end up discussing the rapid advancements in artificial intelligence after digesting a thought-provoking report by OmniaAI, Deloitte's AI practice titled 'Canada's AI Imperative: Overcoming Risks, Building Trust".
The research survey was conducted by the Ontario Data Authority and was carried out using an online platform. Participants included over 1,000 Canadian citizens from across Canada, and 2,500 businesses globally. The demographics were diverse, with the survey ensuring a mix of gender, age, and regional representation to reflect the Canadian population.
AI Conversation at a Family Gathering
Grandparent (G): "Back in my day, we used to worry about computers taking over. Now, it seems like AI is everywhere. Isn't it a bit risky giving so much control to these machines?"
Parent (P): "It’s not all black and white. Yes, there are risks like privacy concerns and job displacements. But think about the efficiency and capabilities AI is bringing into sectors like healthcare and education. It’s transforming how we live and work."
Child (C): "I read about how AI can actually help reduce biases in hiring processes at school. Isn’t it cool how it can analyze data without the usual human prejudices?"
G: "But can it really replace human judgment? There are things like empathy and ethical considerations. How does AI understand the nuances of human emotions or moral decisions?"
See: NIST Insights: GenAI Risk Management Framework
P: "That's a valid concern. There's a lot of debate about whether AI should make decisions in areas affecting human lives directly, like in law or healthcare. The idea is to use AI to assist, not to replace."
C: "And what about creativity? I saw an AI that can paint pictures and even write music. Doesn’t that scare you? It’s like it’s not just about tasks anymore; it's getting into what makes us human."
P: "It’s fascinating but also a bit unsettling. It challenges our notions of what is uniquely human. This is why there’s a huge push for creating ethical guidelines for AI development."
Image: DALL-E
G: "How do we make sure these machines do what’s right? Who decides what’s ethical?"
P: "There are international committees and guidelines, like the EU’s regulations on AI, aiming to set standards on these issues. The goal is to manage AI’s development responsibly."
C: "But people are still scared of change. Some of my friends think AI is going to take all the jobs."
P: "It's about adaptation. The same was said about computers and the Internet. Jobs do change, new ones will arise, and education will adapt to prepare us for future jobs."
G: "It seems like a lot of trust to put in technology. How do we keep up?"
P: "Through education and awareness. Learning about AI and staying informed can help demystify it and integrate it more smoothly into society."
See: AI and Children’s Privacy and Consent
C: "Maybe AI could even help us learn faster! There could be AI teachers tailored to each student's learning style."
P: "Exactly, the potential is limitless, but so is the need for cautious optimism. Balancing innovation with ethical considerations is key."
💡 Perspectives and Takeaways
What Matters More in the Age of AI? Privacy or Convenience
While privacy concerns are prevalent, with many expressing distrust towards how businesses handle their data, there is a contradictory behavior where the same individuals willingly share their data for the convenience of tailored services. This dichotomy suggests that while privacy is valued, the benefits of convenience often lead individuals to compromise on their privacy expectations.
See: Double-Edge Sword of AI’s Impact on Workforce Experience
The interviews indicated a sense of resignation among some participants, who feel that their privacy is already compromised to such an extent that additional sharing does not make a significant difference. However, there is also a call for stricter data privacy regulations to safeguard individual information, highlighting an ongoing tension between the desire for personalized services and the need for privacy protections.
What Can Artificial Intelligence Really Do?
Many acknowledge that AI can significantly enhance efficiency and reduce human error, particularly in routine and data-intensive tasks. However, there is skepticism about AI's ability to take over roles that require deep human connection or complex emotional intelligence, such as in personal caregiving or creative arts.
Interviewees expressed concerns about AI's potential to exceed human intelligence in certain areas, raising fears about control and the ethical implications of such advancements. The potential for AI to make autonomous decisions that could impact human lives has led to calls for clear accountability mechanisms and ethical guidelines to be integrated from the early stages of AI development.
See: How Fintechs Can Integrate AI for Efficiency Gains
The conversation around AI's capabilities is also intertwined with fears of job displacement and the broader implications for societal roles and values, highlighting the need for a balanced approach to integrating AI into various aspects of life.
Is It Just a Technological Challenge? Exploring Bias in AI
Bias is not solely an AI problem; it's a broader issue that affects both human and machine decision-making. While AI systems can indeed replicate or amplify existing biases present in their training data, humans also have inherent biases that can influence their judgments. The interviewees recognized that AI could help mitigate some forms of human bias, but they also expressed concerns about AI’s inability to incorporate human qualities like empathy and contextual understanding into its decision-making processes.
AI has the potential to either counteract or exacerbate biases depending on how it is programmed and the data it uses. The ethical development of AI, therefore, must consider how to minimize bias and ensure fairness in AI outputs, acknowledging that bias can never be entirely eliminated—whether in humans or in machines.
Should Governments or Businesses Take Charge of AI Leadership?
The report discusses varying opinions on who should lead in the realm of AI development and governance. There is a tension between the desire for strong governmental leadership and concerns that governments may be too slow or ill-equipped to manage the fast-paced advancements in AI technology. Conversely, while businesses are seen as more agile and capable of rapid innovation, there is skepticism about their ability to prioritize ethical considerations over profit.
See: Trudeau Announces $2.4 Billion AI Funding Package
Interviewees expressed a need for a collaborative approach where both government and businesses play significant roles. They suggested that businesses, as the developers and primary users of AI technologies, have moral obligations to act as stewards of these technologies. However, there is also a crucial role for governments in regulating and guiding AI development to ensure public interests are safeguarded.
Closing Thought
It's pretty clear that AI's journey to date into our communities, businesses, and personal lives is filled with contradictions and challenges. From privacy concerns to ethical dilemmas, the conversations between the grandparent, parent, and child show the nuanced perspectives that different generations bring to the table and the need to take a balanced approach that respects both human values and technological progress.
Download the 40 page PDF report --> here
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