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
OSC Launches IdeaHub to Foster Discussions to Elevate Ontario’s Capital Markets
OSC Innovation Office | Jun 22, 2023
Image: OSC Innovation Office
The Ontario Securities Commission (OSC) has launched a new public participation platform known as the OSC IdeaHub, an interactive platform to foster innovative discussions and gather ideas to improve Ontario's capital markets.
- OSC IdeaHub:
- It underlines the OSC's commitment to modernizing regulations and nurturing economic growth by inviting public input on various topics. The direct implication here is that the OSC is opening up to a more inclusive and participatory approach to regulation. This could lead to more balanced and effective regulations that consider a diverse range of stakeholder perspectives.
- Focus on Innovation: The OSC IdeaHub is piloting with a limited number of categories and questions, with a specific focus on 'Machine-Readable Regulation' and 'Capital Markets Testing'.
- This suggests a forward-thinking approach towards regulation, potentially leading to more efficient compliance and reporting. It could also indicate a potential shift in how regulations are designed and implemented, moving towards data-driven and technology-enabled regulatory practices.
See: OSC Publishes TestLab 2022 Report: Exploring Innovations in RegTech with Participate Solutions
- Multi-Channel Feedback:
- Besides the IdeaHub, the OSC also provides avenues for support and feedback through its Contact Centre, Whistleblower Program, and Public Consultations.
- This multi-faceted approach demonstrates OSC's dedication to transparency and engagement with its stakeholders. It also serves as a reminder that the OSC is a resource and advocate for both market participants and investors, providing a variety of services to address concerns, answer questions, and receive input.
Checkout the IdeaHub (beta) --> 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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Unveiling the CBDC Human Rights Tracker at the Oslo Freedom Forum
Cointelegraph | Derek Andersen | Jun 14, 2023
Image: CBDC Tracker
The Human Rights Foundation (HRF), a pro-Bitcoin nonprofit, has initiated an 8-month fellowship to develop a Central Bank Digital Currency (CBDC) tracker.
- This online tool will track the progress of CBDCs globally and will highlight potential risks to civil liberties, especially in authoritarian regimes.
- This project results from concerns that CBDCs, by creating a direct link between citizens and central banks, could open the door to human rights concerns. The tool will be interactive, allowing visitors to explore the progress and potential civil liberties risks of CBDCs in each country.
- The CBDC tracker project is an outcome of a fellowship granted to policy analysts from the Cato Institute and other researchers.
- The tool will be used as a resource for policymakers, journalists, and activists worldwide.
- The project fellows are tasked with the development and management of the tool, with all content being approved by HRF's policy team. The tool will continue to be updated on a quarterly basis even after the completion of the fellowship, to keep track of the evolving landscape of CBDCs.
See: Digital Canadian Dollar: The Required Steps for Canada
- As of June 2023, the CBDC tracker website has announced that a new resource dedicated to tracking CBDC development and its relation to violations of civil liberties and human rights will be unveiled in November 2023. This indicates the ongoing development and future expansion of the tracker's capabilities.
The first phase of the @HRF CBDC Tracker is now live!
Just announced at the Oslo Freedom Forum, the full resource will be unveiled at the end of the year.
For now, check out the landing page (phase 1) here: https://t.co/OrZ2fNfy7l pic.twitter.com/FHB9DWXDqs
— Nick Anthony (@EconWithNick) June 13, 2023
View the article --> 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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The AI Feedback Loop: Researchers Warn of ‘Model Collapse’
VentureBeat | Carl Franzen | Jun 12, 2023
Researchers from the UK and Canada have found that as AI-generated content proliferates on the internet, AI models that train on this content develop irreversible defects.
- Rapid Deterioration of Quality:
- As AI models train on content generated by other AI models, they tend to lose touch with the original human-created data distribution.
- Mistakes in generated data compound rapidly, leading to a significant deterioration in the quality and accuracy of the AI models’ output. This can lead to erroneous and monotonous responses. This phenomenon is termed ‘model collapse,’ where the AI models over time fail to understand the true underlying data distribution and misperceive reality due to compounding mistakes in the generated data.
See: How to Unlock Google’s Generative AI Search Feature
- Distortion of Minority Data:
- AI models tend to overfit popular data and misrepresent less popular data.
- In successive training cycles, the characteristics of minority data are progressively distorted and eventually lost.
- This could have serious implications, including potential discrimination based on gender, ethnicity, or other sensitive attributes.
- Increasing Value of Human-Created Content:
- The researchers posit that human-generated content will become increasingly valuable, especially as a source of pristine training data for AI.
- In a future filled with AI-generated content, ensuring that AI models have access to human-created data will be essential for maintaining their integrity and performance.
View the full article --> 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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Firm Size and Innovation: A Double-Edged Sword
New Things Under the Sun | Matt Clancy | Jun 2, 2023
Image: Unsplash/Kaleidico
Recent studies highlight that as firms grow in size, their R&D expenditures rise proportionally with sales, but they tend to produce fewer groundbreaking innovations per R&D dollar spent.
- Large firms, often termed "superfirms", are more focused on incremental innovations, primarily aimed at improving existing products and services.
Read: To Support Disruptive Technologies, Take Bigness Seriously
Implications:
- For Investors:
- Opt for a balanced portfolio, including stocks from both small firms, which might produce high-impact innovations, and large firms, which offer stability through incremental innovations.
- Monitor R&D efficiency; a larger R&D budget doesn’t always translate to groundbreaking innovation.
- For Startups:
- Leverage agility and small size for high-impact innovations, which can be an edge over large competitors.
- Consider partnerships or alliances with large firms to access resources without compromising the innovative culture.
- For Government Policy Makers:
- Incentivize small and medium enterprises (SMEs) through subsidies, tax reliefs or grants to foster high-impact innovation.
- Encourage collaboration between large firms and SMEs for a synergetic effect on innovation.
- Establish frameworks for intellectual property rights that protect smaller players without stifling innovation.
View the source --> here
#InnovationEfficiency, #FirmSize, #RnDExpenditure, #IncrementalInnovation, #Superfirms, #InvestmentStrategy, #GovernmentPolicies, #Startups, #HighImpactInnovation, #Collaboration, #IntellectualProperty
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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Visa Survey: Insights into Consumer Preferences for Open Banking
Visa Navigate | Jun 13, 2023
Visa’s study highlights the pivotal role of value proposition and consent management in consumer adoption of open banking services, shaped by preferences and distinct consumer personas.
- A study by Visa underlines the importance of two pillars, value proposition and consent management, in fostering a strong relationship between financial service providers and consumers within the open banking landscape.
- As providers prioritize these areas, open banking-driven services are likely to be more accepted, leading to increased consumer comfort and trust, lower costs, higher revenues, and mitigated risks.
- The research identified three consumer personas – "Cautious and Careful," "Steady Forward," and "Full Speed Ahead," aiding businesses to develop personalized solutions.
Select Consumer Preferences - Read the full report
- Consumer Comfort is Key: Comfort levels improve when consumers receive open banking-powered services in exchange for authorized access. This promotes trust and increases customer interactions, propelling the adoption of such services.
See: Will Open Banking Launch in Canada This Year?
- Desired Benefits:
- Consumers are more willing to share their data with third parties when certain benefits are offered.
- These include sending and receiving money digitally (65%)
- Viewing finances in a single app (50%), and
- Personalized products and services (46%).
- Expanded access to credit & financing is also favored but at a lower rate (31%).
- Consumers are more willing to share their data with third parties when certain benefits are offered.
- Communications:
- Consumers prefer different methods to be informed about how their data is shared and used by third parties.
- The majority prefer within the app (75%)
- Followed by email (53%)
- Text alerts (26%)
- Bank portals (20%)
- Consumers prefer different methods to be informed about how their data is shared and used by third parties.
See: “Open banking” May Cause Deposit Outflows, Warns U.S. Regulator
- Three Consumer Personas:
- Visa's survey reveals three distinct consumer personas - Cautious and Careful, Steady Forward, and Full Speed Ahead.
- Understanding these personas could help financial institutions and fintechs tailor their approach to cater to varying customer demands for open banking services.
Download the 21 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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Regulating AI in Canada: The Proposed AI and Data Act (Bill C-27)
Canadian Bar Review | Teresa Scassa | May 25, 2023
Canada's Bill C-27, The Digital Charter Implementation Act, features a proposed Artificial Intelligence and Data Act (AIDA).
- Canada’s Bill C-27, The Digital Charter Implementation Act, includes a proposed Artificial Intelligence and Data Act (AIDA). If passed, the AIDA would establish a series of obligations regarding the use of anonymized data in AI systems; the design, development and making available for use of AI systems generally; and the design, development and making available for use of high-impact AI systems.
- The bill is challenging to fully understand, as many of these obligations are left to be fleshed out in regulations, including even the definition of the “high impact” AI, to which the AIDA will apply. Oversight of the regime will be the responsibility of the Minister of Industry, who is also responsible for supporting the growth of the AI industry in Canada.
See: OSFI and GRI report: AI in Finance Needs Safeguards, Explainability Key For Trust
- The AIDA is introduced amidst a rapidly changing AI landscape and international governance initiatives from the European Union and the United States, and aims to be both 'agile' and a form of risk regulation. The scope of the AIDA and its shaping constraints, including AI's cross-sectoral nature, Canada’s constitutional division of powers, and the tendency to separately address public and private sector actors, are analyzed.
- The paper points to the necessity for further consultation and engagement to properly regulate AI in Canada, highlighting the challenges in regulating AI and the context and constraints that have shaped the AIDA.
Continue to the full article --> here
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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Revolutionizing Anti-Money Laundering: Insights from Project Aurora
BIS | May 31, 2023
Image: BIS, Project Aurora
Discover how AI, data, and cross-border collaboration are shaking up the battle against financial crimes.
- Proof of Concept Completion and Advancements:
- The BIS Innovation Hub's Nordic Centre has successfully wrapped up Project Aurora, a proof of concept aimed at combating money laundering.
- By leveraging a synthetic data set representing real-world domestic and international payments data, advanced privacy-enhancing technologies, AI, and enhanced cooperation across entities and borders, the project showcased the transformative potential of these technologies in anti-money laundering (AML) efforts. Enhanced tools for data analysis helped identify suspicious patterns, moving beyond the limitations of current systems that often operate in silos.
- AML efforts have a significant financial burden on institutions, with costs rising by about $60 billion to roughly $274 billion between 2020 and 2022. Despite these efforts, a majority of laundered money remains undetected, indicating that existing methods are inadequate.
- Project Aurora offers a more effective and potentially cost-efficient approach, focusing on behavioral-based analysis, a stark contrast to the prevailing rules-based approach.
Read: Opinion: The Financial Surveillance System May Be Less a Tool for Crime Prevention than a Means of Bureaucratic Ass Covering
- Implications and Future Steps:
- Project Aurora has demonstrated that technology, coupled with robust public-private collaboration, can form a potent tool against money laundering. The project suggests that employing these advanced technologies and methods could revolutionize the fight against money laundering, enhancing detection rates, and reducing the financial burden on institutions.
- However, these technologies alone cannot fully eradicate money laundering. To optimize their potential, they should be bolstered by a supportive legal and regulatory framework, as well as robust cooperation between all entities in the financial ecosystem. The realization of such a collaborative, tech-driven approach could mark a major breakthrough in curbing financial crimes.
Continue to the full article --> here
Download the 103 page Project Aurora report PDF --> 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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