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
2024 FCAC: Better Financial Future Challenge
Challenge | Jan 12, 2024
Image by jcomp on Freepik
FCAC's 2024 Challenge: Building Better Financial Futures Challenge (Deadline April 30, 2024)
The Financial Consumer Agency of Canada (FCAC) has once again opened the doors to its prestigious "Building Better Financial Futures Challenge" for 2024. This challenge, a beacon of innovation and thought leadership in the financial sector, invites post-secondary students to contribute actionable, evidence-based solutions to financial challenges faced by vulnerable communities. The 2024 edition promises to build on the success of its predecessors, fostering a new wave of ideas and strategies to enhance financial literacy and inclusion across Canada.
Overview
The 2024 Building Better Financial Futures Challenge, hosted by the Financial Consumer Agency of Canada (FCAC), invites post-secondary students to engage in research and develop papers focusing on one of three priorities under the theme “Catalyze Action”. These priorities are:
- Enhance access to trustworthy and affordable financial help
- Use behavioural design to simplify financial decisions
- Strengthen consumer protection measures
Objectives - Participants are expected to
- Examine and synthesize existing research related to their chosen priority.
- Identify an actionable solution that addresses the priority and achieves one of its target outcomes.
- Describe how they would build evidence-based support for their proposed solution, including outlining experimental designs or pilot interventions to test the solution.
See: Artificial Intelligence in Banking (FCAC)
Eligibility and Submission Requirements
- Participants must be registered in a Canadian post-secondary institution (undergraduate or graduate program) at the time of submission.
- Submissions should be 8 to 10 pages long, in English or French.
- Students can participate individually or in teams of two.
- Submissions must conform to ethical standards and Government of Canada publishing requirements.
- The competition opens for submissions on September 1, 2023. The deadline for paper submissions is April 30, 2024.
- Papers should be submitted via the Research Paper Submission Form provided by FCAC. Email: competition@fcac-acfc.gc.ca
Judging Criteria
- Background research (30%)
- Research findings and proposed solution/testing (60%)
- Other factors like originality, primary research, practical significance, and expected contribution to knowledge (10%)
Opportunities for Winners
- Publication of work on Canada.ca.
- Opportunity to meet with FCAC staff and learn about the governmental publication process.
- Chance to serve as guest speakers and network with financial literacy stakeholders.
See: FCAC Survey Results: Understanding the Canadian Consumer’s Perspective on Open Banking
This challenge presents a unique opportunity for students to contribute to the field of financial literacy and consumer protection, with the potential for their work to be recognized and utilized by a broader audience.
Reflecting on 2023: A Year of Impactful Ideas
The selected papers from last year's challenge showcased a diverse range of ideas, all aimed at improving financial literacy and preparedness among various demographics in Canada.
Graduate Category Winners
- Top Paper: "Improving Financial Literacy Education for Canadian Youth in Remote Regions" by Stephanie Dean from Thompson Rivers University. This paper highlighted the need for professional development programs for high-school teachers in remote regions, focusing on financial concepts, products, and services.
- Runner-up: "Measuring Financial Literacy to Understand Preparedness for Retirement" by Ekaterina Kalantyrski from the University of Guelph. This insightful paper proposed a retirement-related financial literacy measure to help consumers better prepare for their retirement.
Undergraduate Category Winners
- "Pedagogical Solution to Financial Illiteracy in Canada" by Hannah Muriel Robb Burrows & Floor Nusselder from Queen’s University. This paper proposed a module-based financial application program for high school students, focusing on financial aid and scholarships to improve access to higher education.
- "23% and Counting, But Not ‘One Size Fits All’" by Avneet Bhabra from McGill University. This paper addressed the financial literacy needs of Canada's immigrants, proposing multilingual chatbots on banking websites and a goals-based financial literacy curriculum.
Last year's winners set a high bar for creativity and practicality. Their contributions not only addressed immediate financial challenges but also laid down pathways for long-term improvements in financial well-being and consumer protection.
Conclusion
In conclusion, the Building Better Financial Futures Challenge is not just about finding winners; it's about nurturing ideas that can shape a more financially inclusive and literate society. As we look forward to the innovative submissions of 2024, NCFA Canada remains dedicated to supporting and celebrating the efforts of these bright minds.
See: Financial Empowerment: Navigating Debt and Wellness in FLM 2023
Their contributions are crucial in paving the way towards a financially literate and inclusive Canada, where every individual has the knowledge, skills, and confidence to make responsible financial decisions.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Global Competition Review: Key FDI Trends
Foreign Direct Investment | Jan 5, 2024
Image: CGR FDI Trends 3rd Edition
Growing Importance and Complexity of FDI
Global Competition Review recently published their annual global overview of Key FDI Trends called "Foreign Direct Investment Regulation Guide - Third Edition" edited by Veronica Roberts provides a comprehensive look at the evolving landscape of foreign direct investment (FDI) regulation.
FDI regulation has become increasingly significant in recent years, especially in the context of unstable economic conditions. Despite high FDI flows, there is a trend towards greater protectionism and stricter enforcement due to heightened geopolitical tensions and the need to keep strategic industries onshore.
Increased Scrutiny in Cross-border M&A
There is a shift towards stricter scrutiny in policy frameworks for screening inward foreign investment, especially in strategic sectors, directly impacts fintech and alternative finance. This is evident in several high-profile deals that have been blocked, unwound, or abandoned due to FDI regulatory concerns. This trend underscores the importance of early identification of potential FDI screening issues in transaction planning.
See: China Intensifies Cracksdown on Tether in Forex Trading
FDI screening authorities are becoming more active, both in terms of the number of notifications received and in monitoring non-notified transactions. This increased activity can impact M&A activity, as mandatory filing obligations may dissuade some investors.
Evolving Concept of National Security
The scope of sectors and technologies considered under the concept of national security in FDI regulation has broadened. It now includes critical infrastructure, communications assets, advanced technology, and data. The rise in protectionist policies, partly accelerated by the COVID-19 pandemic, could influence the flow of capital in alternative finance. While this might foster domestic investments, it could also limit the scope for international fundraising and partnerships, challenging the growth of global crowdfunding platforms and peer-to-peer lending services.
See: OSFI’s Evolving Focus on Integrity & Security
The broadening of the national security concept makes it difficult for investors to confidently assess the risk of government intervention under FDI rules. However, some guidance is available, such as the US President's Executive Order issued in September 2022, which provides a framework for evaluating transactions.
Technological innovations in fintech and blockchain are often at the forefront of FDI discussions. The dual-use nature of these technologies, serving both economic and potential military applications, places them under intense scrutiny. Companies in these sectors must be prepared to address security concerns to attract foreign investments.
Stay Informed and Agile
Businesses in fintech, blockchain, and alternative finance must stay abreast of regulatory changes globally. This involves not only compliance but also active engagement in policy discussions to shape a favorable regulatory environment.
Diversifying investment sources can mitigate risks associated with geopolitical tensions and economic nationalism. Exploring new markets and investor bases can provide stability and growth opportunities.
See: Regulating AI in Canada: The Proposed AI and Data Act (Bill C-27)
Data is king. Robust data security and privacy measures can make fintech and blockchain ventures more attractive to cautious investors.
Forming alliances with domestic and international partners can help navigate the complex FDI environment. This approach can facilitate knowledge exchange, regulatory compliance, and access to broader markets.
Conclusion
The "Foreign Direct Investment Regulation Guide - Third Edition," edited by Veronica Roberts, offers an essential exploration of the increasingly complex world of FDI. In today's environment, marked by heightened geopolitical tensions and economic uncertainties, FDI regulation plays a pivotal role, especially in sectors like fintech, blockchain, cryptocurrency, and alternative finance.
See: U.S. Seed Fundraising Insights and Trends
The guide underscores the growing importance of understanding and navigating the expanded scope of national security within FDI regulation, which now encompasses a wide range of sectors and technologies. For businesses operating in fintech and blockchain, this means grappling with dual-use technologies (civilian and military) and ensuring robust data security to attract foreign investments.
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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CIC Launch Delayed Impacting Innovation Funding Landscape
Innovation News | Dec 20, 2023
Image by photoroyalty on Freepik
Canada Delays Innovation Funding and Launch of the Canada Innovation Corp (CIC)
The Canadian government's decision to delay the launch of the Canada Innovation Corp (CIC) until potentially after the 2025 federal election has cast uncertainty over the nation's innovation funding landscape. This move, coupled with challenges in other key funding agencies, underscores the complexities in Canada's approach to fostering innovation and economic growth.
What you need to know
- The CIC, initially set to commence operations in 2023, has been postponed to no later than 2026-27, potentially extending beyond the next federal election.
- The agency was to receive $2.6 billion over four years, aimed at enhancing innovation and productivity across Canadian businesses.
- The government plans to undertake a strategic review the Scientific Research and Experimental Development program, which provides about $3 billion annually in tax credits.
See: Canada’s Ranks 15th on WIPO 2023 Innovation Index
- Also, after a legislative review, the government intends to implement recommended changes to the Business Development Bank of Canada. The assessment determined that the Business Development Bank of Canada (BDC) needs to reassess its approach to risk, especially in relation to supporting equity-deserving groups, regions and sectors that are typically underserved, and new businesses. This recommendation comes in response to feedback from multiple stakeholders who have raised concerns about the BDC's excessive caution, which has resulted in restricted funding opportunities for small and medium-sized enterprises.
Benjamin Bergen, president of the Council of Canadian Innovators:
"Nearly two years later we now hear that it will be delayed by a further two years, and in reality, it is unlikely to ever be fully established in the way we had hoped."
See: C.D.Howe Report: Canada’s Weak Business Investment Threatens Prosperity
Meanwhile at Sustainable Development Technology Canada
Sustainable Development Technology Canada (SDTC), a key funder of green technology, is facing challenges. Operations have been suspended amid investigations into conflict-of-interest breaches and inappropriate funding. This situation has caused concern among cleantech executives about the sector's ability to raise capital. The future of SDTC remains uncertain, with potential restructuring or closure being debated.
Why It's Important
The delay in launching the CIC and the ongoing challenges within other funding bodies like SDTC highlight significant hurdles in Canada's innovation strategy. These developments not only affect current innovation projects but also have long-term implications for Canada's global competitiveness and economic prosperity in an increasingly innovation-driven world.
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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SEC Publishes Accredited Investor Definition Review
Accredited Investors | Dec 19, 2023
Image by freepic.diller on Freepik
The Securities and Exchange Commission (SEC) has just published a comprehensive report reviewing the definition of an 'Accredited Investor'
This development is of great interest to the financial community, including Canadian investors and market participants.
Current Definition
- An Accredited Investor is currently defined as an individual with an annual income over $200,000, or a net worth exceeding $1 million, excluding their primary residence.
- For married couples, the threshold is $300,000. These investors play a crucial role in private securities markets, particularly in Reg D offerings, which represent a significant portion of the financial market.
- The SEC made minor expansions to the definition, including the inclusion of certain professional certifications, like the Series 7. However, the definition remains largely restrictive, limiting the majority of the U.S. population from participating in these investment opportunities.
Potential Changes on the Horizon
- The SEC's report does not conclude with definitive changes but signals an ongoing review for potential updates.
- A notable consideration is the removal of retirement accounts from the net worth calculation for Accredited Investor status. This change could reduce the number of households qualifying as Accredited from 16.44 million to 11.6 million, underlining concerns about investor sophistication in Reg D offerings.
- The report also touches on the sophistication qualification, a topic of debate among investors and legislators. However, the SEC's stance appears dismissive of this route, despite its potential to democratize investment opportunities.
See: House Passes Bills to Broaden ‘Accredited Investor’ Definition
- A significant section of the document is dedicated to the idea of adjusting income and wealth thresholds for inflation, contemplating whether this should be applied retroactively from the time the definition was initially set or implemented from the current period onwards.
- State regulators have expressed concerns that the current definition is too inclusive, failing to account for inflation and including assets that may not reflect an investor's ability to bear investment risks. The North American Securities Administrators Association (NASAA) has recommended excluding assets in defined contribution plans from the net worth calculation and adjusting the thresholds for inflation.
- Marcia Dawood, Chair of The Angel Capital Association (ACA) raised concerns that the proposed indexing would exclude about 50% of angels from participating in the US. Additionally, the ACA noted that, based on their experience, instances of fraud in this sector are minimal to nonexistent.
The SEC's Approach and Public Sentiment
Although the SEC is calling for public feedback, there is skepticism about the influence of public opinion on the final decision. For example, entities like the SEC Small Business Capital Formation Advisory Committee (SBCFAC) have repeatedly urged the Commission to broaden the definition, yet their recommendations have often been disregarded.
See: AOIP Advocates for Enhanced Capital Formation and Investment Opportunities for SMEs
The current SEC leadership appears to favor a more regulated approach, potentially increasing the barriers to participating in private offerings. This stance contrasts with the public's desire for more inclusive investment opportunities.
Outlook
This review, amidst debates over investor sophistication and market inclusivity, reflects a cautious regulatory approach that may heighten barriers to private market participation. Key considerations include the possible exclusion of retirement accounts in net worth assessments and adjustments of income and wealth thresholds for inflation. The outcome of this review will be crucial for investors and market participants, balancing the need for protection with the desire for broader investment opportunities.
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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Montreal’s Notman House (OSMO Foundation) in Crisis
Montreal Ecosystem | Dec 18, 2023
Image: Unsplash Jametlene/Reskp
The OSMO Foundation, responsible for Notman House, is grappling with $323,000 unpaid mortgage fees, owed to the Business Development Bank of Canada (BDC) and Investissement Québec (IQ)
As first reported by Le Devoire, and then Betakit, the Notman House, a cornerstone of Montreal's startup ecosystem, housed in a historic 187-year-old building, faces a dire situation and potential sale.
Since its inception in 2011 by Real Ventures and the OSMO Foundation, the only hub of its kind in Montreal, Notman House has been more than just a building; it has been a vibrant hub for tech startups, offering co-working and event spaces, and fostering collaboration and innovation.
See: Canada’s Ranks 15th on WIPO 2023 Innovation Index
Despite initial support from federal, provincial, and municipal governments, along with private donors, the foundation has struggled with financial burden. The situation worsened with the onset of the pandemic and the accompanying economic pressures, leading to a loss of major sponsors and increased financial strain. The future of Notman House now hangs in the balance.
Philippe Telio, Startupfest founder and OSMO board member:
“It’s not like the financial hill is so large that it’s impossible to imagine that somebody could come in and step in and save this. So in that sense, yes, it’s very possible that an individual or a group of individuals can come together and figure out how to solve the financial issues.”
See: Fintech Cadence receives $400,000 government grant to help Québec Fintechs build and scale
The situation is made more complex by the emergence of a new initiative, Ax-C, set to open in December 2024 with substantial $48 million government backing. Ax-C aims to fulfill a similar role to Notman House but with institutional ties to the École de technologie supérieure (ÉTS), which Notman lacks.
Outlook
The potential sale of Notman House raises concerns about the continuity and preservation of Montreal's tech ecosystem. Notman has been a symbol of organic, community-driven entrepreneurship, uniquely positioned outside the downtown financial district, making it more accessible and integral to the city's startup culture.
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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OpenAI’s Converge 2 Startup Funding and ByteDance Controversy
AI | Dec 17, 2023
Image by Freepik
OpenAI's innovative funding program for AI startups and the controversy surrounding ByteDance's use of GPT models.
Converge 2
Through its Startup Fund, OpenAI is offering a $1 million funding boost to selected startups, along with exclusive informational and educational resources. This program, known as "Converge 2" is the second iteration following the successful inaugural session in December 2022.
Converge 2 is a six-week program, offering a blend of remote and in-person interactions in San Francisco, running from March 11, 2024, to April 19, 2024 and requiring a time commitment of approximately 4-6 hours per week. The program includes tech talks, office hours, social events, and interactions with leading AI practitioners and startup founders.
The application process is straightforward, requiring minimal information about the applicants and their ideas. Importantly, OpenAI does not mandate the use of its APIs for products like GPT-3.5/4, ChatGPT Plus, Codex, or DALL-E. This approach underscores OpenAI's commitment to fostering a diverse range of AI innovations, not limited to its own technological ecosystem.
See: Sam Altman Reinstated as OpenAI CEO After Workforce and Investors Revolt
The program is designed for exceptional engineers, designers, researchers, and product builders using AI to reimagine the world, focusing on exploring opportunities and challenges in cutting-edge AI development. OpenAI encourages founders from all backgrounds, disciplines, and experience levels to apply, especially highlighting interest in founders from underrepresented backgrounds and those based outside the United States.
The ByteDance Controversy
In a contrasting development, OpenAI recently suspended the account of ByteDance, the parent company of TikTok, after it was found to be using GPT-generated data to train its own AI model in China. This move came as a response to ByteDance's violation of OpenAI's developer license, which stipulates adherence to specific usage policies. (See the future of AI policy in China)
ByteDance's actions also raise questions about the responsible use of AI technologies and the importance of adhering to licensing agreements, especially when it comes to developing competing models.
See: EU’s Landmark AI Regulation Deal
Outlook
The above contrasting narratives offer valuable insights into the current state of AI development. On one hand, OpenAI's Converge 2 program supports innovation and nurturing diverse and innovative AI startups. On the other, the ByteDance incident underscores the need for ethical governance and responsible use of AI technologies.
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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‘Mugshot Edition’ Trump NFTs Blending Politics, Memorabilia and Digital Assets
NFTs | Dec 15, 2023
Image: Unsplash/Library of Congress
In a move that blurs the lines between politics, memorabilia, and the burgeoning world of digital assets, former U.S. President Donald Trump has launched a the 'Mugshot Edition' Suit NFT Collection
- On offer, 100,000 digital collectible cards, minted on polygon, called the "Mugshot Edition" are being sold by NFT INT, the official licensee of the Trump name and image for digital trading cards.
See: El Salvador Update: ‘Volcano Bonds’, Bitcoin City, Crypto Visa Program
- Each card is being sold for $99, however for customers who purchase the entire set of 47 cards for $4,653, they will also receive a physical collectible card in the mail including 1 piece (of 2024 pieces) of the infamous blue suit and red tie Trump wore when the now famous 'mugshot' photo was taken. This innovative approach to NFTs combines physical memorabilia with digital ownership, a concept that is relatively new in the world of digital assets.
Trump announcing that if you buy all 47 of his new ‘Mug Shot Edition’ digital cards for $4,653, you will get an autographed piece of the suit he wore when he was arrested. pic.twitter.com/zpuoYCF6dS
— Ron Filipkowski (@RonFilipkowski) December 12, 2023
Reaction
The launch of Trump's "Mugshot" NFTs has stirred up prices for his previous NFTs, indicating a significant market reaction. This move has been seen as an attempt by the former president to profit from his recent legal scandals, tapping into the burgeoning crypto market. The collection has sparked a range of reactions, from enthusiasm among collectors and Trump supporters to skepticism and criticism from others.
See: LA-Based Entertainment Company, Impact Theory, Faces SEC Charges Over Unregistered NFT Securities Offering
You can check out the trump collection market value and NFT price at nftpricefloor. As the world of NFTs continues to expand, it will be interesting to see how other public figures and historical events are immortalized in this digital format.
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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