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
H1 2023 Fintech Investment Landscape: Top 10 Global Markets
Innovate Finance | Jul 4, 2023
Despite economic slowdowns and uncertainties, the FinTech sector continues to demonstrate resilience, attracting a total of $27.3 billion across 1,711 deals globally.
Select H1 2023 Global Fintech Investment Highlights
- Global Investment: The first six months of 2023 saw a total of $27.3 billion invested across 1,711 deals globally. However, this represents a 14% decline in global investment from H2 2022 to H1 2023, reflecting cautious investor sentiment due to economic slowdown and uncertainties.
- UK Investment: The UK FinTech sector faced challenges like high inflation and cash flow constraints, but it continues to attract significant capital. The UK remains a top destination for FinTech investment globally, second only to the United States. The UK received more investment in FinTech than all of the rest of Europe combined.
See: Marqeta 2023 State of Payments Report: Rise of P2P Payment and Embedded Financial Services, & Hybrid Future?
- Deal Size: Despite unfavorable economic conditions, the average deal size in the FinTech sector has been increasing consistently. In H1 2023, the average deal size stood at approximately $15.9 million, showcasing the sector's resilience and potential for further growth.
- Investment Stages: Later Stage VC attracted the bulk of capital, accounting for about 70% of the total compared to 54% for 2022 as a whole. Seed capital deals were the largest by number but only represented 6% of capital invested.
- Top Global Markets: The United States remains at the forefront with $15.6 billion invested across 663 deals. The UK holds the second place with $2.9 billion across 199 deals. For the first time, 4 of the Top 10 markets are from Asia.
- Female Founders: Only 10 female founded or co-founded companies completed venture deals in H1 2023, representing a very low 2.2% of venture investment in the UK.
- Looking Forward: Despite a decline in global investment, established FinTech companies continue to adapt and encourage innovation across key areas such as open banking, B2B solutions, ESG, pensions, and financial wellbeing. Generative AI has also piqued investor interest as a key driver of financial and business solutions.
Global Fintech Investment Markets: Top 10
| Rank | Country | Capital Invested H1 2023 | Deals H1 2023 | Average Deal Size H1 2023 | Capital Invested H1 2022 | % Change YoY |
|---|---|---|---|---|---|---|
| 1 | United States | $15.6B | 663 | $23.5M | $25.1B | ⬇ -37.8% |
| 2 | United Kingdom | $2.9B | 199 | $14.6M | $9.1B | ⬇ -68.1% |
| 3 | China | $1.7B | 35 | $48.6M | N/A | N/A |
| 4 | Singapore | $0.8B | 72 | $11.1M | $2.1B | ⬇ -61.9% |
| 5 | India | $0.6B | 83 | $7.2M | $3.9B | ⬇ -84.6% |
| 6 | France | $0.7B | 41 | $17.1M | $2.3B | ⬇ -69.6% |
| 7 | Germany | $0.5B | 33 | $16.2M | $2.4B | ⬇ -79.2% |
| 8 | Switzerland | $0.5B | 38 | $13.2M | N/A | N/A |
| 9 | South Korea | $0.4B | 38 | $10.3M | N/A | N/A |
| 10 | Canada | $0.3B | 47 | $6.4M | $0.8B | ⬇ -62.5% |
Source: Innovate Finance | H1 2023 | H1 2022
See: NatWest Group’s Vision for the Future of Open Banking and 3 Potential Ways Forward
Erik Mostenicky, Principal of Investment, FISV:
Whether retail or sophisticated institutional investors, there is a cautious anxiety still in the market given lack of taming of the inflation in certain western economies and historically highest interest rates since the GFC [global financial crisis].
Investment flows towards smaller fintechs as well as incumbent Asset Managers has slowed down across public market asset classes but also the alternative asset classes like PE/VC/Growth. …a normalisation will highly depend on the market response to the Central banks policies, and a recession could still turn the tables for the potential growth expectations of the market.
We will have more clarity over Q3 2023 whether we slip into several quarters of recession or recover.
In conclusion, the global FinTech sector continues to show resilience amidst economic slowdown and uncertainties. The sector is expected to evolve with opportunities for both established and emerging players. However, there is a need for improvement in areas like funding for diverse innovators.
View more --> 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
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Blakes: Cybersecurity Trends in Canada: A 2023 Perspective
Blakes | Jul 12, 2023
Blakes has launched its fourth annual Canadian Cybersecurity Trends Study, a comprehensive look at Canada's cybersecurity landscape.
The study is divided into four sections, each focusing on a different aspect of cybersecurity, including incident trends, mandatory breach reporting, cybersecurity litigation, and incident preparedness.
A few key takeaways from the report include:
- Ransomware attacks remain the most common type of cybersecurity incident, representing nearly 70% of all incidents. These attacks are also often the costliest, both financially and operationally.
- Two-thirds of organizations targeted by ransomware attacks ultimately paid a ransom, up from 56% the previous year. The median ransom paid was CAD 546,000, a 170% increase over the last two years.
See: 10 Fintech Trends that Will Shape the Financial Industry in 2023
- Software vulnerabilities were the root cause of 45% of observed incidents, underscoring the importance of promptly patching known vulnerabilities as a critical security measure.
- Attackers were able to access data in 77% of cases, up from 69% the previous year, and exfiltrated data in 68% of cases, up from 51% the previous year.
- Despite the increasing sophistication of attacks, if a ransom was paid, attackers followed through with their commitment to provide decryption or evidence of data deletion in 100% of cases.
View more and download the report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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BIS Publishes Report Highlighting the Key Elements and Risks of the Crypto Ecosystem
Report | July 11, 2023
The Bank for International Settlements' report provides an in-depth analysis of the crypto ecosystem, highlighting its key elements, inherent structural flaws, and associated risks, while discussing potential strategies to address these challenges.
- The Bank for International Settlements (BIS) submitted a 30 page comprehensive 'Crypto Ecosystem' report to the G20 Finance Ministers and Central Bank Governors in July 2023. The report delves into the intricate workings of the crypto ecosystem, highlighting its key components such as Bitcoin, blockchain technology, stablecoins, and decentralized finance (DeFi). It also underscores the inherent structural flaws and risks associated with the crypto ecosystem, including fragmentation, congestion, and the need for borrowing credibility from sovereign money.
Structural Flaws and Risks
- The crypto ecosystem suffers from inherent limitations of permissionless blockchains that lead to fragmentation of the system, accompanied by congestion and high fees.
- The BIS explains that the limitations are not technological but rather stem from incentive structures.
- Validators must be incentivized through sufficiently high monetary rewards to report truthfully and sustain the system of decentralized consensus. This leads to congestion and high fees, making crypto-based payment systems comparatively slow and expensive.
- Despite the original ethos of decentralization, crypto and DeFi often feature substantial de facto centralization, which introduces various pain points. A prime example concerns stablecoins, which piggyback on the credibility of the central bank’s unit of account and may pose risks to monetary sovereignty.
- The report identifies several risks within the crypto ecosystem, including risks to market integrity, consumer protection, and privacy.
- It also highlights risks specific to DeFi arising from the interconnectedness with the traditional financial system.
- For instance, DeFi activities almost exclusively involve exchanging one stablecoin or crypto coin for another, and do not finance activity in the real economy. This self-referential system is mostly used for speculation in coins, posing substantial risks to investors, especially retail investors.
See: BIS Publishes Report on Options to Address Crypto Risks: Ban, Contain, Regulate, Or?
Addressing the Risks
- While it doesn't provide specific solutions, it implies that regulatory oversight and consumer protection measures could be part of the approach.
- The report also identifies data gaps that currently hinder monitoring of the crypto ecosystem. It suggests that addressing these data gaps would be crucial for understanding and managing the risks associated with crypto.
Conclusion
The BIS concludes that despite some elements of genuine innovation, the inherent structural flaws of the crypto ecosystem make it unsuitable to play a constructive role in the monetary system.
Download the 30 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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Navigating the End of Jobs: 2023 Human Capital Trends (From a Financial Services Perspective)
Report | Jul 10, 2023
Image: Deloitte
The Deloitte 2023 Human Capital Trends report highlights the need for a skills-based approach to work, the importance of technology in augmenting human capabilities, the negotiation of workforce data, the necessity of leadership in a boundaryless world, the push for equitable outcomes, and the advancement of human sustainability in the financial services industry.
Survey participants
Approximately 10,000 professionals from global business and HR organizations across 105 countries. Among these respondents, 15% were from the Financial Services industry, providing a total of 1,130 responses. The sector distribution within the Financial Services industry was:
- 29% from Banking & Capital Markets
- 22% from Investment Management
- 28% from Real Estate
- 21% from Insurance
Image: Deloitte
Top 6 Trends
- Navigating the End of Jobs:
- The report suggests a shift from traditional job-based structures to a skills-based approach. This approach allows work to be done beyond traditional job boundaries, empowering workers and helping organizations adapt quickly to changes in the industry.
- Powering Human Impact with Technology:
- The relationship between intelligent technology and workers has evolved significantly. Technologies are emerging that don't just substitute or supplement workers but help them improve—augmenting humans to become better humans and teams to become better teams.
- Negotiating Workforce, Workplace, and Work Data:
- Organizations and workers vie for control of worker, workforce, and workplace data when they should focus on mutual benefits. This is particularly important in light of increasing data privacy concerns and regulatory requirements in Financial Services.
- Leading in a Boundaryless World:
- To thrive, Financial Services leaders must evolve in tandem with their organizations and adopt a new set of fundamentals to mobilize workers and teams to achieve new outcomes.
- Taking Bold Action for Equitable Outcomes:
- Diversity, equity, and inclusion (DEI) progress has traditionally been measured using activities and effort, with little consideration for actual outcomes. DEI actions should aim at achieving equitable outcomes in the marketplace and workforce while boosting an organization’s innovation, competitiveness, and long-term business success.
- Advancing the Human Element of Sustainability:
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Human sustainability rises to the forefront of organizations’ sustainability strategies in Financial Services as the industry seeks to promote sustainable investments and address climate change risks.
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Takeaway
The report underscores the importance of embracing change, fostering a culture of resilience, and investing in workforce transformation to stay competitive in the dynamic global market. For businesses looking to thrive in this new era, the report's findings offer a roadmap. It's time to reimagine the future of work, redefine the role of leadership, and reinvent HR for a more human focus.
See: How will Web3 impact the future of work?
In the face of rapid technological advancements and shifting workforce expectations, the call to action is clear: Embrace the human element in your business strategy. Invest in your people, foster a culture of resilience and adaptability, and leverage technology to enhance, not replace, human capabilities. The future of work is here, and it's human.
Download the 28 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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Central Bank Digital Currencies on the Rise: 15 Retail CBDCs by 2030
Global CBDC Innovation | July 10, 2023
As the digital revolution continues to reshape the global economy, central banks worldwide are increasingly exploring the potential of Central Bank Digital Currencies (CBDCs) to enhance payment safety, efficiency, and monetary policy.
Over 130 Central Banks are Working on CBDCs
- In the rapidly evolving digital economy, central banks globally are turning their attention to Central Bank Digital Currencies (CBDCs).
- A recent survey by the Bank for International Settlements (BIS) reveals a significant uptick in CBDC-related activities, with 93% of the 86 surveyed central banks engaged in some form of CBDC work.
- The development of retail CBDCs, aimed at the general public, is outpacing that of wholesale CBDCs, intended for financial institutions despite significant privacy and security concerns.
- By 2030, we could witness up to 15 retail and nine wholesale CBDCs in circulation.
See: OpEd: Draft U.S. Bill on Stablecoins Highlight Differences with CBDCs
Motivations and Design
- The primary drivers behind CBDC issuance are enhancing payment safety and domestic payment efficiency. Central banks, particularly those from emerging markets, are actively exploring CBDCs to address specific needs in their regions.
- However, the potential implications of CBDCs on monetary policy and financial stability remain a focal point of research.
- While many central banks are still undecided about issuing CBDCs, they are investing heavily in understanding these potential impacts.
- When it comes to CBDC design, central banks are exploring various options, including account-based or token-based CBDCs, and the possibility of interest-bearing CBDCs.
The survey also highlights an increasing trend of collaboration among central banks and international organizations, sharing experiences and knowledge about CBDCs while the IMF is currently working on a global CBDC platform. This cooperation is key to navigating the complex landscape of digital currencies and ensuring the stability and efficiency of future financial systems.
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
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NatWest Group’s Vision for the Future of Open Banking and 3 Potential Ways Forward
Open Banking Report | Jul 4, 2023
Image: NatWest commissioned report
NatWest report on open banking's untapped potential and pathways forward
- Despite Open Banking's launch in 2018 and its use by over 7 million businesses and consumers, it has only reached about 10% of consumers and SMEs. Traditional payment methods still significantly overshadow Open Banking payments. The report by Oxera, commissioned by NatWest Group, highlights the economic obstacles that are hindering the broader adoption of Open Banking and the development of innovative use cases beyond the regulatory mandate.
See: Payments Canada Delays Launch of Real-Time Rails Again (without a timeline)
The report identifies several key obstacles that are currently hindering the wider adoption of Open Banking
- Lack of Commercial Incentives: There is a lack of commercial incentives for banks and other financial institutions to develop or enhance APIs (Application Programming Interfaces) that facilitate Open Banking. This lack of incentive is slowing down the development and implementation of Open Banking solutions.
- Misalignment Among Banks: There is a lack of alignment among ASPSPs (Account Servicing Payment Service Providers – i.e., banks) on the benefits and potential of Open Banking. This misalignment can lead to inconsistent approaches and strategies, hindering the overall progress of Open Banking adoption.
- Managing Trade-offs: There are significant challenges around managing trade-offs within the Open Banking ecosystem, particularly in relation to security and convenience. For example, while Open Banking can offer increased convenience through seamless integration of financial services, it also raises concerns about data security and privacy. Balancing these aspects is a major challenge.
- Limited Scope of Use Cases: The current regulatory mandate for Open Banking may limit the scope of potential use cases. This limitation could be preventing the development of innovative applications that could drive wider adoption of Open Banking.
- Traditional Payment Dominance: Open Banking payments are currently dwarfed by more traditional payment options like cards or direct debits. This dominance of traditional payment methods may be slowing the adoption of Open Banking payment solutions.
See: Visa Survey: Insights into Consumer Preferences for Open Banking
Three possible routes to move forward
- Mandate Banks to Offer a Wider Range of Use Cases: This solution involves expanding the scope of Open Banking and requiring banks to provide the necessary data via APIs for free. This could stimulate the development of new use cases and applications, thereby driving wider adoption of Open Banking.
- Commercialized APIs: This approach encourages banks to expand Open Banking use cases through Premium APIs. By allowing banks to commercialize their APIs, they may have more incentive to develop and enhance their Open Banking solutions, which could lead to increased adoption.
- A Multi-Party System: The third solution proposed by the report is to enable multi-party systems to emerge that have a commercial incentive to grow the Open Banking ecosystem. This involves designing new, flexible frameworks for industry collaboration. By fostering a cooperative environment where various parties have a stake in the success of Open Banking, this could drive innovation and adoption.
The report notes that different routes may be optimal for different Open Banking use cases, and some may benefit from hybrid approaches. For example, mandating the development of an API, but leaving its commercialization to the banks themselves, or to a multi-party system.
Claire Melling, Head of Bank of APIs at NatWest Group:
“This report makes it clear that banks, fintechs and regulators need to work together to design new, flexible frameworks and commercial incentives that will support a far wider range of Open Banking use cases. By acting on the recommendations in this report, we can enable Open Banking to reach its full potential and, ultimately, deliver new and enhanced propositions that will improve customer choice and experience.”
Download the 44 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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APIs and the Evolution of Digital Platforms: Towards a Three-Sided Market
Citi | Jun 16, 2023
Image: Citi
Embracing the three-sided market model, where financial institutions integrate with digital platforms alongside buyers and sellers, can unlock new network effects, accelerate economic growth, and enhance customer engagement in the digital economy.
- The report introduces the concept of a "three-sided market" where financial institutions are integrated into digital platforms alongside buyers and sellers. This model enhances the platform's value proposition by providing financial services such as payments, foreign exchange, and credit within the platform itself.
- Integration of Financial Services into Platforms:
- The report discusses various ways platforms have integrated financial services, including partnering with established financial institutions, creating regulated subsidiaries, or leaving the provision of financial services to external third parties.
- The report identifies Open Banking, Embedded Finance, and Decentralized Finance (DeFi) as potential catalysts for the emergence of three-sided marketplaces.
- Opportunities for Fintechs:
- They could also collaborate with platforms to create unique value propositions, such as exclusive discounts or rewards, to drive customer engagement and loyalty.
- They could also develop solutions that help platforms integrate financial services more efficiently and could play a key role in facilitating the transition.
See: FIS Dives Deeper into Embedded Finance with Bond Acquisition
- Opportunities for Banks:
- Banks could see this as an opportunity to maintain customer engagement and expand their services in the digital economy. By becoming integral components of these platforms, banks could tap into new customer bases and participate more actively in the digital economy.
- Banks could explore partnerships with platforms or consider developing their own platforms. They could also consider how to leverage their existing customer relationships and trust to provide services within these platforms.
- Implication for Regulators:
- Regulators need to consider the implications of this new business model, particularly in terms of ensuring fair competition, data privacy, and security. They may need to update regulations to accommodate these new business dynamics and ensure consumer protection.
View more --> here
Download the 20 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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