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
Banks and API Ecosystem Strategies
CCG | Kate Drew | May 11, 2023
According to CSI’s 2023 Banking Priorities Survey, the number one strategy banks are pursuing when it comes to their open API ecosystems is offering third-party products/services to customers.
Three key take-aways:
1. Banks Prioritize Third-Party Offerings: According to the CSI's 2023 Banking Priorities Survey, banks are increasingly focusing on offering third-party products/services through their open API ecosystems. This best-of-breed approach enables them to provide solutions tailored to specific functions or use cases, rather than solely relying on a single vendor. This strategy helps banks to differentiate themselves in a highly competitive market.
See: McKinsey: Reshaping Retail Banks for the Digital Battlefield
2. Potential Missed Opportunities: Despite the push towards third-party offerings, banks may be neglecting other important aspects of API strategy. Data shows that only 21% of banks are embedding their data, products, and services into third-party workflows, and only 16% are offering APIs for third parties to access their data. As open banking regulations are likely to increase, banks might be missing out on important opportunities by not broadening their API strategies.
3. Importance of a Holistic Strategy: It's crucial for banks to develop a comprehensive and long-term strategy when approaching API ecosystems. While it's positive that 66% of US banking leaders are including an interoperability layer or API gateway in their modernization strategy, forethought and planning are key. Without a well-thought-out strategy, there's a risk of building solutions that may not fully utilize the potential of API ecosystems, leading to missed opportunities and potential inefficiencies.
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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
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OSFI Stakeholder Engagement: Help Shape the Future of Finance
OSFI | May 11, 2023
Image: Unsplash/David Hofmann
Digital Innovation Open Door
- We will be hosting a series of stakeholder engagement opportunities. This initiative will allow industry and the Office of the Superintendent of Financial Institutions to have open discussions on digital innovation topics.
- Uncover fintech innovations: Whether you work for an established entity or start-up, a corporation, association, a regulatory authority or anything in between, we want you to take part in our Digital Innovation Open Door. We’re interested in discussions to advance our regulatory and supervisory functions. This initiative offers you the opportunity to provide insight that could potentially help shape the future of finance regulation in Canada. If you have a potential viable concept, we may invite you to test your product in our “digital innovation sandbox”. Here are a few examples of organizations we’d like to engage with in this initiative:
- Academia
- FinTech/BigTech
- Corporations working in the digital innovation space
- Federally regulated financial institutions
- Industry associations
- Regulatory authorities
See: Speech by OSFI Superintendent Peter Routledge: Looming risks and long-term resilience
- We have a particular interest in the following topics:
- Artificial intelligence
- BigTech
- Cryptoassets
- Custody
- Distributed ledger technology
- FinTech
- Open finance
- Quantum computing in financial services
- Risk management of machine learning in third parties
- Sandbox
- Smart contracts
- Tokenization of assets
- How to register: Register here!
- When you register, please provide as much detail as possible, as this will allow us to bring the appropriate subject matter experts to those meetings. We’re planning to start meetings on June 14, 2023, dependent on the number of expressions of interest received. We’ll host this initiative virtually.
View the original announcement --> 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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BCG and QED Investors Global Report: Reimagining the Future of Finance 2023
Boston Consulting Group | May 3, 2023
Despite a swift ascent in the industry, fintechs experienced an average market value loss exceeding 50% in 2022—an apparent short-term adjustment in a generally upward long-term trend, with the sector's core growth factors remaining unaltered.
- The vast and highly profitable financial services industry faces challenges in innovation and customer experience, while over half the global population is unbanked or underbanked, and technology constantly unveils new possibilities.
- Fintech, currently at a 2% share of global financial revenues, is projected to hit $1.5 trillion by 2030, making up nearly 25% of global banking valuations. The largest growth market will be Asia-Pacific, followed by North America, with Europe, Latin America, and Africa also experiencing substantial progress due to favorable regulations and the absence of legacy infrastructures.
- The next fintech era is anticipated to be dominated by B2B (targeting small businesses) and B2B2X (B2B for all users) solutions, as global SMEs face a staggering $5 trillion in unmet credit needs annually.
- B2B2X, including embedded finance, accounts for 25% of fintech revenues and will play an increasingly important role in addressing the growing demand for innovative financial services.
- As traditional players struggle to keep up, spread businesses such as lending platforms and neobanks face challenges in developed markets, where they must secure stable, low-cost deposit sources to reduce capital costs, potentially by obtaining banking licenses.
See: Some Exciting Fintech Stats (2023-2025)
- All stakeholders should seize this opportunity:
- Regulators should proactively pioneer policies fostering a cooperative, secure, and inclusive financial landscape, possibly through intermediate financial licenses (e.g., UK's e-money license) and digital public infrastructure (e.g., India's UPI).
- Traditional players should collaborate with fintechs to expedite digital transformation and satisfy consumer demands.
- For fintechs, the current "fintech winter" presents a prime opportunity for aggressive strategies, while maintaining fiscal discipline. As the sector undergoes a valuation correction, some investors seize the chance to establish long-term footholds in fintech.
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Download the 44 page PDF report --> now
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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NFX: Hot List of 75 Emerging AI Startups (Seed, Series A)
NFX | April 27, 2023
Image: NFX
The hottest up & comers in generative AI. Early-stage companies showing leading indicators of future greatness. Curated by NFX.
- After we open-sourced our Generative AI market map a few months ago, we went to work analyzing this network for early indicators of future greatness. It is going to produce the next generation of unicorns, at a faster rate and at lower cost than any other startups before them.
See: It’s in all of our Interests to Understand How Artificial Intelligence is Transforming our World
- Meet the top 75 early-stage generative AI companies that have the potential for massive growth. To identify these companies, we looked for leading indicators of success such as the amount of funding raised, key investor status, proximity to AI centers of excellence, and buzz generated from factors such as virality, traction, and word-of-mouth recommendations.
- We focused on companies at the Seed and Series A stage and made our final selections based on in-network reputation, taking into account recommendations and regard from peers and experts in our network.
- They represent the next generation of AI companies with notable momentum, making them worth following closely.
Continue to the full article --> here
Open the AI Hot 75 google doc --> 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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Survey Results: Unlocking Green Growth Opportunities for Retail Banks
McKinsey | William Edwards, Ritesh Jain, Marie-Claude Nadeau, Charlotte Soehner, and Daniel Stephens | Apr 21, 2023
Image: McKinsey & Company
A recent survey by McKinsey shows there is a meaningful and growing appetite among American consumers for climate-linked financial products
- BUT consumers need further education and advice to make informed buying decisions, and providers need to differentiate themselves from the pack. Generic environmental, social, and governance (ESG) offers will not be enough to win in this changing landscape. Will financial institutions provide the education consumers require and the differentiated offerings needed to win this space?
See: Mark Carney’s Climate Alliance Provides Billions for New Fossil Fuel Projects
- 1. Demand for green financial products is both strong and broad—and is not limited to a niche segment
- Nearly 40 percent of US consumers report interest in enrolling in a climate-linked financial product (Exhibit 1).
- Of the interested consumers, the majority see this as a potentially major change in behavior and two in three would allocate more than 40 percent of their savings or monthly credit card spending to a green retail banking product.
- Green banking products are attractive to consumers across income levels and community types
- Interest appears consistent across levels of household savings
- 2. Green offerings are a business opportunity for financial institutions, not a concession
- Research shows that consumers are willing to pay more for climate-linked financial products if they create measurable or demonstrable impact.
- For example, up to 40% of consumers said they would choose a green savings account with a 20% lower annual percentage yield (APY) than a traditional savings account.
- 25% of consumers said they would take an account with a 60% lower APY. This trend also applies to climate-linked investments that offer specific, actionable products that connect to both an investment thesis and a thesis of societal benefit.
- Research shows that consumers are willing to pay more for climate-linked financial products if they create measurable or demonstrable impact.
- 3. Consumers are eager for advice and support from their financial partners
- Banks are well positioned to fill this gap, as two-thirds of consumers prefer to partner with their bank for financing a solar panel purchase rather than directly with a solar panel installation company.
- Consumers trust banks for their perceived expertise, trustworthiness, existing relationships, and because sustainable decisions are also investment decisions that require financial analysis.
FFCON23 Expert perspectives on Carbon markets: Revolutionizing Finance for a Sustainable Future
- 4. Consumers need to be educated—they may not yet have strong perspectives about which green offerings best suit their needs
- Consumer understanding of climate-linked financial products is low, and financial institutions will need to educate them on the value proposition of their offerings. In a survey, consumer responses to four different value propositions associated with a green savings account were almost evenly split, indicating a lack of understanding. The same phenomenon repeated itself with respect to investment products.
Continue to 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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FT Partners: Q1 Fintech Insights and Research
FT Partners | April 21, 2023
Image: FT Partners
Executive Summary:
FT Partners' data, analytics, and insights on FinTech stem from our deep domain knowledge and the Firm's proprietary database, which has been meticulously and methodically compiled. The FT Partners Research Team assembles and curates this information through primary research and it represents years of focus and diligence. We believe this report provides the most complete set of global FinTech transactions, trends, and insights, and we are proud to release this information to our clients, partners, friends, and the FinTech sector globally.
- While still feeling the prolonged impact from high inflation and rising interest rates, turbulence in the banking industry added another wrinkle to the FinTech deal activity environment in Q1 2023.
- Despite the turmoil and ongoing challenges in the market, Q1 2023 private FinTech company financing volume rose 53% sequentially to $17.7 billion, up from $11.6 billion in Q4 2022, and broke a string of three consecutive quarters of declines.
- Stripe's $6.5 billion Series I round – the second largest FinTech funding round ever – accounted for more than one third of the total financing volume in the quarter.
- Very few US-based consumer FinTech brands raised money in Q1, with the majority of capital going to B2B and FinTech infrastructure or back-office-focused businesses across a variety of FinTech sectors
- Outside of North America, some large direct-to-consumer companies announced significant capital raises.
See: Liquid Avatar Technologies Opens Its Series A Financing in Aftermath Islands Metaverse and Receives Lead Share Purchase Agreement
- The actual number of financing rounds also picked up sequentially in Q1 2023 (794 deals) compared to Q4 2022 (681 deals), but still remained below the heightened activity levels reached in 2021 and early 2022.
- The uptick in deals was primarily led by a steadier stream of early-stage and smaller-sized deals with 46% of all financing rounds in the quarter raising less than $5 million.
- With very few large deals, M&A volume in Q1 only reached $9.2 billion, the lowest level since Q2 2020 ($9.1 billion), when the world was reeling from COVID-19 shutdowns.
View the 127 page 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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Citi Report: Blockchain’s Next Billion Users: Money, Tokens, Games
Citi | March 30, 2023
Image: Citi
Billions in Adoption, Trillions in Value
- The report discusses the potential for blockchain and tokenization to be a disruptive innovation that transforms various industries, including finance, gaming, and social media. Although blockchain has not yet reached mass adoption, the authors believe that an inflection point is approaching, which will be driven by the adoption of central bank digital currencies and tokenized assets.
See: 10 Most Innovative Companies in 2023: Blockchain, Crypto, Metaverse, Web3
- The authors suggest that successful adoption will occur when blockchain has a billion-plus users who do not even realize they are using the technology. However, to achieve this, blockchain needs the help of technology enablers and regulatory considerations. Although mass adoption could still be six to eight years away, momentum on adoption has positively shifted as governments, large institutions, and corporations have moved from investigating the benefits of tokenization to trials and proofs of concept.
Continue to the full article --> here
Download the 162 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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