Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Voices
What the 2025 Throne Speech Means for Fintech and Growth
Innovation | May 17, 2025
Image: 2025 Throne Speech, Building Canada Strong
Building Canada Strong: Throne Speech Establishes Path for Innovation and Canada's Economy, Sovereignty, and National Unity
Today, on May 27, 2025, King Charles III delivered Canada’s Speech from the Throne in person for the first time since 1957. It's a symbolic speech that outlined a comprehensive and forward looking agenda with national priorities of productivity, sovereignty, security, and innovation. It sets the tone for the 45th Parliament, emphasizing the need to "build the strongest economy in the G7" and to act with urgency in a world that is "a more dangerous and uncertain place than at any point since the Second World War." Download the speech from the Throne (PDF format).
“An opportunity for Canada to embark on the largest transformation of its economy since the Second World War.”
For the National Crowdfunding & Fintech Association of Canada (NCFA), the speech is highly relevant as it recognized the role of technology, capital, and small businesses and innovators in strengthening Canada's resilience and leadership.
On Internal Trade, Infrastructure, and Innovation
Among the speech's most impactful economic promises:
See: The Crisis Canada and Fintech Can’t Afford to Waste
- Legislation to remove all remaining federal barriers to internal trade and labour mobility by Canada Day. These frictions cost the economy (and as a result tax payers) up to $200 billion per year.
- Create of a Major Federal Project Office to reduce project approval times from five to two years, while aligning infrastructure expansion with Indigenous consultation and environmental standards.
- A new plan called, "One Project, One Review" to work with provinces and territories so that major national projects only go through one streamlined approval process so projects can get approved and built quicker.
"By removing these barriers... we will unleash a new era of growth... It will enable Canada to become the world's leading energy superpower... and hub for science and innovation."
For fintechs, this means fewer roadblocks when expanding across provinces. Instead of trying to figure out the patchwork of rules and approvals (remember three versions of equity crowdfunding when it first rolled out?), it could become faster and easier to launch and scale services coast to coast. This policy change can make a real difference for founders of scaling companies.
New Focus on Housing, Investment, and Market Access
Create Build Canada Homes, a new housing sector built around modular and prefabricated construction, and providing financing for developers of affordable homes.
See: The Intersection of Fintech and Real Estate: How Innovation is Rebuilding the Foundation of Property Transactions
- GST reductions for homes under $1.5 million
- Municipal development charges at 50% for all multi-unit housing
- Measures to double housing starts and grow a new housing industry using Canadian labour, tech, and lumber
"The Government will... invest in the growth of the prefabricated and modular housing industry."
This will help open up new doors for fintechs building tools for mortgage access, construction financing, digital real estate platforms, and tenant services. Housing isn’t just about buildings. It’s also about people, families, and community, and fintech will be essential to making it all work faster and more affordable than before (at least that's the promise and opportunity/challenge facing us all).
National Security and ReArm Europe
The speech confirms Canada’s intention to join the ReArm Europe initiative to strategically align with EU partners to invest in transatlantic security and reduce reliance on U.S. military supply chains.
"The Government will protect Canada's sovereignty by rebuilding, rearming, and reinvesting in the Canadian Armed Forces... joining ReArm Europe."
This was a clear assertion of independence in the face of recent U.S. trade tariffs and annexation rhetoric from President Donald Trump.
U.S. Ambassador to Canada Pete Hoekstra, speaking before the throne speech, commented:
"If there's a message in there, there's easier ways to send messages. Just give me a call. Carney can call the president at any time."
See: Trump’s April 2025 Tariffs and What They Mean for Canada
Prime Minister Mark Carney, during a separate meeting, made Canada’s position unambiguous:
“It’s not for sale. It won’t be for sale. Ever.”
There are significant fintech implications around today's security which includes cybersecurity, fraud protection, and digital infrastructure to name a few. For fintechs working on compliance, identity verification, and borderless payment systems, Canada's new defense approach may boost demand for more secure, scalable tech. Not just in government systems but also for startups and businesses that need to keep their customer data safe of any threats and meet rising expectations for trust and transparency.
Rebuild Trust in Immigration and Celebrating Canada's Uniqueness
The Canadian Government will cap temporary foreign workers and international students at 5% of the population by 2027 to restore trust in immigration while still attracting top talent.
See: How Fintechs Are Tackling Financial Inclusion in Canada
The speech also reinforced protections for Indigenous rights, the French language, and Quebec culture, declaring:
"The French language and the Quebec culture are at the heart of the Canadian identity."
For fintechs focused on serving newcomers whether through digital banking, remittances, or providing other financial tools, this change will impact user growth. At the same time it offers an opportunity to design better tools for Canadians returning from abroad, and to focus on higher-skilled immigration pathways that better align with long term economic priorities (and less on a shotgun approach).
Fiscal Discipline and Investment Mobilization
Government operating spending will be capped at 2% annual growth. Waste will be cut and duplication eliminated, which will allow more capital to be diverted to companies and economic growth initiatives. Technology will be used to help improve public sector productivity.
"Spend less so Canadians can invest more."
See: Canada’s Productivity Depends on Intangible Tech Adoption
For fintech innovators, this means new tech and tools will be used more than ever to make the government more productive and efficient. So, whether you're in regtech, payments, or digital ID, there's opportunity to help the public sector modernize, cut costs, and serve Canadians better.
Outlook
A comprehensive Throne Speech in the face of geopolitical tension, population pressures like aging and rapid growth in certain regions, and growing economic pressure. For NCFA's community of fintech and innovation stakeholders, the policies announced will create new opportunities for a country that is in need of an renewal and/or overhaul.
“The Crown... stands proudly as a symbol of Canada today, in all her richness and dynamism.”
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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Strategy Buys More BTC as Canadian Crypto ETFs Grow
Bitcoin | May 27, 2025
Image: Freepik
Strategy Acquires 4,020 New Bitcoin as Canadian Crypto ETFs Gain Strength
On May 26, 2025 via press release, billionaire Michael Saylor's company, now rebranded as Strategy, announced the acquisition of an additional 4,020 Bitcoins between May 19 and May 25 for the total price of approx $427.1 million, showing growing corporate and institutional demand and confidence in digital assets.
See: National Bank Doubling Down on MicroStrategy’s Bitcoin Boom
This latest purchase brings Strategy's total bitcoin holdings to 580,250 BTC, bought at an average price of $69,979 per coin, and aligns with recent federal policy shifts, including the U.S. governments 2025 creation of a Strategic Bitcoin Reserve.
BTC vs Strategy Performance Comparison
According to Portfolioslab where you can compare returns, Strategy's stock (formerly MSTR) has outperformed Bitcoin over the past year, with a 1 year return of +119.31% versus Bitcoin's +59.13%. However, Bitcoin maintains a higher 10-year annualized return at 84.59% compared to Strategy’s 35.83%. Strategy’s higher volatility and risk metrics reflect its leveraged exposure to Bitcoin.
As of May 27, 2025, the Crypto Fear and Greed Index stands at 74 (Greed), indicating positive investor sentiment and the potential for price corrections if optimism overheats.
AI and Enterprise Innovation
On May 7, 2025, at Strategy World 2025, the company introduced several new AI and data tools aimed at helping businesses manage and use their data more effectively. These included Strategy Mosaic™, which helps companies organize and control data across different platforms like Tableau and Google Sheets, and Auto 2.0, a faster, more intelligent AI engine built to handle both structured and unstructured data through chat-like conversations.
See: What Bitcoin Pizza Day 2025 Still Teaches Us 15 Years Later
Strategy also launched Strategy One Standard Edition, a version of its platform for smaller organizations that want advanced analytics without a large IT setup. Chief Technology Officer Ponna Arumugam said their new AI system is built to learn, adapt, and scale as businesses grow. Full press release here, with livestream access on YouTube.
Canadian Crypto ETFs on the Rise
At the same time, Canadian crypto ETFs are gaining momentum with investors who are seeking regulated exposure to crypto, given global volatility and policy shifts. Canadian-listed ETFs continue to expand, led by the Purpose Bitcoin ETF (BTCC) with C$993.5 million in AUM and the Fidelity Advantage Bitcoin ETF (FBTC) with C$1.257 billion. Investors benefit from secure, regulated access to cryptocurrencies without needing to manage private wallets.
| ETF Name | Ticker | AUM (CAD) | Management Fee | Notes |
| Purpose Bitcoin ETF | BTCC | C$993.5M | 1.5% | First physically settled BTC ETF |
| CI Galaxy Bitcoin ETF | BTCX.B | C$781.9M | 0.4% | Low-fee Bitcoin exposure |
| Fidelity Advantage Bitcoin ETF | FBTC | C$1.257B | 0.4% | Cost-effective BTC ETF |
| 3iQ CoinShares Bitcoin ETF | BTCQ | C$361.6M | 1.0% | BTC price tracking exposure |
| CI Galaxy Ethereum ETF | ETHX.B | C$461.9M | 0.4% | Ethereum exposure |
| Evolve Bitcoin ETF | EBIT | C$254.5M | 0.75% | Uses CME Bitcoin Reference Rate |
| Purpose Ether ETF | ETHH | C$130.7M | 1.0% | Physically settled ETH ETF |
| Purpose Bitcoin Yield ETF | BTCY | C$126.5M | 1.1% | Covered call strategy for BTC |
| Evolve Cryptocurrencies ETF | ETC | C$61.35M | 0.75% | Mixed BTC and ETH exposure |
| 3iQ Ether Staking ETF | ETHQ | C$49.6M | 1.0% | ETH price and staking exposure |
See: GENIUS Act Advances as Bitcoin Hits Record High
Outlook
Strategy's latest addition to it's deepening BTC position, and the growth of Canadian crypto ETFs highlight the fact that crypto is constantly becoming more institutionalized. Canada’s proactive regulatory stance continues to make it a hub for compliant crypto investment products.
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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Where the Gaps Are: Fintech Insights from FCA Data
Fintech Data Research and Strategy | May 25, 2025
Image created by AI, Personas based on real data from 2024 Financial Lives, FCA
FCA Financial Lives 2024 Survey Data Reveals 4 Personas with Real Needs
Four FCA personas reveal where fintech innovation must go next
On May 16, 2025, the Financial Conduct Authority (FCA) published one of the richest datasets ever on UK consumer financial behaviour, resilience, and preferences called, "Financial Lives 2024 survey". It's an annual snapshot taken ever 2-3 years and offers valuable benchmarks and insights into how financial institutions, fintechs and financial engineers can translate this data into strategy.
There are 18 excel sheets with various tabs covering survey responses for almost 1300 survey questions pertaining to a wide range of topics such as attitudes and product/service ownership of payments, retail banking, consumer investments, general insurance and protection, mortgages, credits and loans, assets and debts, cash savings, advice/guidance and pension. There's also tracker data tables for comparing and analyzing changes over time across 2017, 2020, 2020 and 2024 surveys.
See: UK vs. Canada: A Tale of Two Different Crypto Consumers
Drawing directly from the FCA 2024 Financial Lives survey results, we created 4 personas that reveal who is underserved, gaps in the ecosystem, and where fintechs, banks, and credit unions should consider focusing on to rebuild trust and relevance.
Meet Amira (28) - The Struggling Young Borrower
Amira is a young adult struggling with inconsistent income from various gigs, rising living costs, and a heavy reliance on credit. She is digitally active but financially stretched and uncertain as to who she can trust. Survey data shows:
- 61% of people aged 25–34 use BNPL or revolving credit, often to cover essentials
- 33% lack £100 in savings
- 14% trust score in finance (below 5/10)
See: How Fintechs Are Tackling Financial Inclusion in Canada
Fintechs should build real-time tools that show all credit and BNPL use in one place, including spending limits, that help users like Amira avoid taking on more debt than they can handle. Adding clear, user-led budgeting flows into existing BNPL workflows can help bridge shortfalls and help build trust with transparency.
Meet Stella (66) - The Silent Conservative Saver
Stella is an older consumer who likes to avoid debt, prefers analog channels, and feels underserved by digitally native services. She values trust and simplicity highly and struggles to access new tools. Survey data shows:
- 72% of older adults avoid credit
- 63% prefer paper or phone contact
- 66% do not understand ESG or digital pension tools
See: CSA Pauses Climate and Diversity Disclosure Rules
Financial institutions should consider creating hybrid formats that combine print materials with digital access points, such as QR codes linking to audio summaries. ESG and pension tools can be made more accessible with phone helplines and in-branch tutorials to help consumers who lack confidence to gain confidence and fill in comprehension gaps.
Meet Rohan (42) - The Resilient Digital Builder
Rohan is a confident, digitally native, and actively manages savings, investments, and often finds himself switching providers to maximize value. He expects clarity, ESG transparency, and integrated experiences.
- 89% of this group use investment or money management apps
- 75% save monthly
- High openness to switching, low confidence in ESG clarity
Rohan needs a unified dashboard that lets him integrate his finances across pension, savings, and ESG investments. Fintechs can lead here by offering smart comparison tools that verify impact metrics, automate vendor switching, and offer ESG guidance within the same experience.
Meet John (50) - The Overloaded Urban Middle
John is a middle-aged adult that is juggling aging kids, debt, complex commitments, and low financial resilience. He is time-poor, questions everything, and is stuck with outdated, fragmented financial tools. The survey shows:
- 81% report low financial resilience
- 31% have 4+ unsecured debts
- 45% avoid switching due to complexity and mistrust
Institutions must prioritize credit and debt consolidation tools for this segment by offering personalized paths and support towards financial recovery. Embedding phone or online chat support into their digital journeys can help reduce friction, while demonstrating quick wins to build confidence and encourage engagement.
Fintech Product Design and Strategy Matrix
We've come up with the following table that matches the 4 personas with specific fintech strategies tailored to their behaviours, needs, and gaps, all based on the FCA's 2024 financial lives data, and to support product design, channel strategy, and business model decisions.
See: Fintech Trends & Predictions Across Generations in 2025
| Persona | Product Opportunity | Channel Strategy | Business Model Insight | Ecosystem Gap |
| Amira – Young Borrower | BNPL budgeting + affordability | Mobile-first, embedded in BNPL apps | Freemium with affiliate links to trusted debt tools | Risk-aware BNPL integrations |
| Stella – Conservative Saver | Print-to-digital ESG education | Branches, phone, community agents | Subscription or pay-per-use legacy planning tools | Print-digital pension guidance |
| Rohan – Digital Builder | ESG + switch optimizer dashboard | Self-serve, in-app investing hubs | B2C SaaS with optional robo-advice tier | ESG decision confidence |
| John – Overloaded Middle | Modular savings + credit coach | Web app + human phone fallback | Hybrid subscription + nonprofit partnership model | Blended digital advice models |
Why It Matters
Each of the 4 personas created actually represents thousands of real individuals and their financial lives in 2024, caught between fragmented services and changing financial needs.
See: G20’s Vision for Financial Inclusion through Digital Public Infrastructure
The profiles above are designed to help fintechs and institutions develop a targeted roadmap based on clearly defined, data-driven groups with targeted solutions, to help provide responsible and more inclusively designed financial products/services for underserved groups in need. A similar survey in Canada would probably produce similar results.
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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Ethereum Targets $1 Trillion in Security Upgrades
Crypto Security | May 16, 2025
Image from Ethereum 1TS announcement
Ethereum Launches $1 Trillion Security Push to Protect Global On-Chain Assets
On May 14, 2025, the Ethereum Foundation anounced a $1 Trillion Dollar Security (1TS) Initiative, a long term project to strengthen the security of the entire Ethereum ecosystem to support a future where trillions of dollars in value could move on-chain. The reality is that security isn't just a technical issue. It is the single biggest barrier to mainstream adoption of Web3, and Ethereum knows it.
See: Fintechs Face Rising SaaS Security Risks, JPMorgan CISO
Today, Ethereum is responsible for more than 50 percent of all total value locked (TVL) in decentralized finance platforms, already securing over $400 billion in on-chain assets. However a rise of exploits and protocol breaches unveil how fragile Ethereum's infrastructure actually is so the 1TS project aims to reinforce it.
How Big Is the Security Problem?
In 2024, hackers stole over $1.8 billion across crypto platforms with Ethereum-based DeFi applications accounting for more than half of the total losses. Despite improvements in protocol security, new vulnerabilities continue to be exploited at scale, such as:
- $290 million at PlayDapp lost after attackers exploited access controls to mint unauthorized tokens
- $97 million stolen at Muchables by a rogue developer through a smart contract backdoor
- $80 million at Orbit Chain was drained from an Ethereum bridge used for cross-chain transfers
- $55 million at Radiant Capital was lost through an access control flaw in Ethereum-based lending contracts
Notably the above figures don't include the growing number of targeted phishing campaigns, wallet drainers, and socially engineered scams that increasingly use AI to impersonate trusted actors and to slay 'pig butchering'. Collectively, these exploits show that Ethereum's security environment still has a way to go. For many prospective users and certainly institutions, the constant threat of permanent asset loss is a significant barrier to adoption and long term trust.
Goals and Leadership of 1TS
1. Map the risk. The Ethereum Foundation is conducting a full-stack vulnerability analysis, including risks in wallets, smart contract tooling, L2 infrastructure, consensus layer code, and even DNS and internet infrastructure.
2. Fund what matters. 1TS will identify the highest priority attack surfaces and fund long term solutions. These could include upgrades to client software, fuzz testing, formal verification, or developer tooling that requires and enforces safer default settings.
See: Spot Ethereum ETFs Debut in the U.S. (Without Staking)
3. Communicate clearly. The final goal is to make Ethereum’s security infrastructure easier to understand, and to establish transparent benchmarks and metrics that will allow users, enterprises, and governments to compare the safety of Ethereum’s ecosystem to other financial systems.
The 1TS initiative is being led by Fredrik Svantes, Ethereum Protocol Security Lead, and Josh Stark, part of the Ethereum Foundation’s core leadership. They are joined by several other well known people from the security ecosystem, all bringing deep experience in incident response, smart contract audits, and secure protocol design.
What to Get Involved?
The Ethereum Foundation is opening the initiative to input from the community. Anyone can share suggestions, flag concerns, or apply to collaborate by completing this form or to discuss, reach out to the team directly by email at trilliondollarsecurity@ethereum.org.
Outlook
If Ethereum wants to be the financial base layer for billions of people, it needs a security model at least as robust as global banking systems. The Trillion Dollar Security Initiative is welcomed and necessary to get to the next step. It is about showing regulators, institutions, and the public that Ethereum and all the companies and transactions that feed off of the ecosystem can scale safely.
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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Canada’s Competition Plan Is Getting More Serious
Competition | May 15, 2025
Image: Competition Bureau 2025 2026 Annual Plan
Canada's Competition Watchdog is Upping Its Response to Rising Costs, Weak Productivity, and Digital Market Dominance
On May 15, 2025 the Competition Bureau released its 2025 to 2026 plan and they intend to move earlier, faster, and deeper into markets that matter to Canadians, such as grocery pricing, housing, banking, telcom, artificial intelligence, and environmental claims. Instead of reacting after harm is done, the Bureau plans to use the new, more modernized, legal tools at its disposal to focus on affordability, digital power, and slow innovation.
Cracking Down on Hidden Fees and Market Power
With expanded powers from recent updates to the Competition Act, investigators can act more quickly and use more data to build stronger cases to tackle problems like drip pricing and greenwashing. They can target areas where high market concentration makes life less affordable, working to prevent harmful behaviour before it becomes a crisis.
Pushing Government to Rethink the Rules
The Bureau is already pushing governments across the country to remove rules that hold back competition. They encourage use of its Competition Assessment Toolkit, which is designed to help policymakers identify and fix outdated regulations.
See: Will Competition Reforms Boost Fintech? Inside the Fight
The Bureau will also launch a new market study this year and expand its work on emerging issues like algorithmic pricing and data portability. They will also make compliance easier for small businesses with tools like the Compliance Hub and Compliance Bootcamp. Promoting competition is now mandatory, and part of how the Canadian government can help grow the economy and protect consumers.
Modernizing the Bureau
To support all of the changes, the Bureau is hiring staff with digital skills, updating its systems to manage large volumes of data securely, and training teams to use AI and new enforcement tools. There is also a revitalized focus on diversity, mental health, bilingualism, and accessible leadership training. The Bureau plans to work more closely with domestic and international partners, and play a key role during Canada’s G7 presidency.
Competition Matters
This year’s plan shows that Canada is taking competition more seriously. It's not just about enforcement anymore; it's about using smarter tools, faster action, and better policy to lower costs and open up markets.
See: UK Banking Competition Remedies, Lessons for Fintech Growth
For fintechs and startups, this creates a chance to grow in a market environment that rewards fair play and transparency. And to incumbent players relying on hidden fees or dominant behaviour, the pressure is rising to adapt.
Learn more: download the 7 page PDF '2025-2026 Annual Plan: Strengthening Competition in a Changing Economy'
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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Fintechs Face Rising SaaS Security Risks, JPMorgan CISO
Cybersecurity | May 14, 2025
Image: Freepik/DC Studio
Third-party Integration Flaws Are Exposing Fintechs to Spreading Attacks
Patrick Opet, JPMorgan Chase’s Chief Information Security Officer, has dropped a rare public warning that the modern SaaS (Software-as-a-service) model is enabling cyberattacks and embedding systemic risk into the global economy. His message is that the security architecture is breaking down, and software providers are not doing enough to fix it. Below are some urgent quotes from his discourse and why they matter for Canadian fintechs, investors, and regulators.
5 Select Quotes From Opet's Letter
1. “SaaS has become the default... embedding concentration risk into global critical infrastructure.”
Many fintechs are using the same core SaaS vendors for payments, data, and automation, exposing them to a single point of failure. If one of these vendors is compromised, the effects can spread fast like wild fire on a dry summer's night. For fintech startups, the risks may be inherited without full visibility.
See: India Biometric Data Breach Highlights Cybersecurity Risks
2. “Over the past three years, our third-party providers experienced a number of incidents... requiring us to act swiftly and decisively.”
Canadian fintechs with lean security teams need contingency plans for third party supplier compromise and must monitoring vendor behaviour or risk the full wrath of a serious attack that will disrupt operations, result in data theft or leakage, fraud and financial loss, regulatory and legal exposure, reputational damage and even cascading or 'fourth party' risks. Even a global bank must isolate vendors during incidents. Read OSFI's Guidance here: Third-Party Risk Management Guideline.
3. “Fierce competition among software providers has driven prioritization of rapid feature development over robust security.”
Security is often sacrificed for speed. Fintechs should require vendors to provide (1) strong and secure default settings, (2) regular third-party audits, and proof or evidence of strong internal security programs such as SOC 2 Type II or ISO/IEC 27001 certification.
See: Perplexity’s Security Flaws A Red Flag for Industry
4. “Modern integration patterns dismantle essential boundaries... relying on overly simplified interactions between third-party services and firms’ sensitive internal resources.”
OAuth tokens and API integrations are often misused, allowing third and unwanted parties to access internal systems. Without strong segmentation and logging, attackers can move quickly once access is gained. Microsoft Threat Intelligence recently confirmed state actors are now targeting common SaaS apps to infiltrate customers.
5. “The most effective way to begin change is to reject these integration models without better solutions.”
Canadian fintechs should ensure procurement policies require secure integration design, advanced authorization models, and greater transparency from vendors. Startups should reference the Canadian Center for Cybersecurity Top 10 IT Security Actions for implementation guidance.
What This Means for Canadian Fintechs
SaaS brought convenience and speed but also concentrated risk across fintech infrastructure. For smaller Canadian firms who often lack internal security engineering, the consequences of a poorly or unsecured SaaS integration can be severe. This warning should not be ignored.
See: New Cyber Threats Financial Service Firms Need to Know
Fintech leaders should:
- Audit all third-party SaaS integrations especially those with read or write access to sensitive systems. The CSA's Staff Notice 33-321 offers baseline expectations for registrants
- Require vendors to support multi-factor authentication, token expiration, and role-based access controls
- Push for data residency transparency and vendor dependency disclosures, including fourth-party services
- Include security breach notification clauses in service agreements
- Explore secure options such as customer-managed encryption keys, confidential computing, and bring your own cloud models
Final Thought
OSFI and the CSA have made it clear that third party oversight is now a priority, so fintechs can expect questions on cybersecurity controls and operational resilience during regular reviews. SaaS is here to stay but without stronger default security and safer integrations and oversight, it'll remain a growing liability.
See: Can Cloned Voices Crack Bank Security? Need to Know
Fintech startups and scale-ups cannot rely on vendors to lead. Security must be a shared responsibility across the ecosystem, and it begins with better architecture, more transparency, and smarter procurement.
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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Why Wealth Managers Shouldn’t Miss Consensus 2025
Consensus Toronto | May 9, 2025
Toronto Becomes a Power Hub for Digital Asset Wealth Strategy at Consensus May 15
The financial world is changing fast, and Consensus 2025 Toronto is where proactive, leading advisors will be. On May 15, CoinDesk is hosting Wealth Management Day as part of its flagship conference at the Metro Toronto Convention Centre. It's a dedicated one day program specifically for professional wealth managers and financial advisors who want to understand how digital assets, tokenization, AI, and macro forces are changing investment portfolios now and in the future.
Approved advisors will receive a complimentary Platinum Pass, for full 3-day access to Consensus 2025 from May 14–16, including all general programming, high-level networking, and private meetings with industry leaders.
Expect Real Strategy, Not Hype
Wealth Management Day offers a full morning of advisor focused content followed by roundtable networking in the afternoon. Topics include:
- The evolving role of Bitcoin and crypto in traditional portfolios
- Market outlooks from leading macroeconomists
- Tokenization of real world assets and its use in client products
- Regulatory signals that impact what you can and can't recommend
- Practical tools to future-proof client strategies
Speakers come from leading firms like Coinbase, T. Rowe Price, Evolve ETFs, CMCC Global, and Cambrian Asset Management. Government regulators and fintech founders will also join for candid conversations about what's happening today, what's coming next, and what advisors need to prepare for.
See: Consensus 2025 Toronto | Spotlight on Canadian Speakers
Below are just a few of the speakers presenting on Wealth Management Day at Consensus on May 15:
- John D’Agostino, Head of Strategy, Coinbase
- Blue Macellari, Head of Digital Assets, T. Rowe Price
- Elliot Johnson, CIO, Evolve ETFs
- Dr. Ryan Clements, Alberta Securities Commission
- Claire Van Wyk-Allan, Head of Canada, AIMA
- Michael Bucella, Managing Partner, Neoclassic Capital
- and many others across wealth, fintech, and policy.
Closing Thought
Globally and in Canada too, investors are looking for advisors who can offer informed, compliant, and proactive strategies and advice. Wealth Management Day is where crypto and the investment ecosystem intersect, from startups to global firms, regulators to entrepreneurs.
See: Join NCFA at Consensus 2025 Toronto May 14-16
For advisors, Wealth Management Day is a low risk, high reward way to plug in, and it’s free for those who qualify.
"With ETFs and tokenized funds on the rise, advisors who ignore digital assets risk being left behind, not by the technology but by their clients who want to drive the future. "
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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