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
Vass Bednar: Canada’s Glaring Banking Protections Gap and Implications for Consumers and Fintechs
Regulatory Insight | Aug 7, 2023
In an op-ed by Vass Bednar, a glaring gap in banking protections for Canadians was highlighted, with potential adverse implications for consumers and the fintech industry.
Inconsistent Consumer Protections
- The financial sector currently has inconsistent consumer protection across the provinces, creating a complex and vulnerable framework that is not equipped to handle the evolving financial landscape.
- Changing landscape vs traditional Bank Act: The financial sector has traditionally been regulated under the Bank Act, which was sufficient when only licensed banks provided all financial or bank-like activity. However, the emergence of numerous complementary players in the financial sector, including fintech companies, has complicated this regulatory landscape.
See: FCAC Survey Results: Understanding the Canadian Consumer’s Perspective on Open Banking
- One of the key issues is the liability associated with Interac Corp.’s e-transfer system. Over the past five years, the gap in consumer protection has become more problematic due to the rise in cybercrime and the sophistication of digital scams. Consumers are often left to independently recover funds that they may have sent through Interac, creating a significant burden.
- The current consumer protection legislation, which is handled by the provinces and territories, extends to many non-bank players in payments. However, the federal government's Retail Payment Activities Act does not include explicit consumer protection clauses, possibly to avoid infringing on the provinces' jurisdiction. This has resulted in a fragmented governance framework that relies on a mishmash of commercial contracts and laws.
House of Cards to Fraud and Scams
- This gap in consumer protection has serious implications. It weakens the foundation of our financial system and exposes consumers to potential financial losses due to fraud and scams.
- Furthermore, it hampers the ability to capture transparent information about instances of fraud and scams, which is crucial for improving cybersecurity, public education, and other protective measures.
Critical Issue to be Addressed
- The link between digital payments and platform governance also underscores the need for a comprehensive approach to financial reform. As Canada moves towards modernizing its banking system, including the launch of an open banking framework, improvement of the payment system, and realization of a digital currency, it is crucial to address the consumer protection gap.
- In conclusion, the banking protections gap in Canada poses significant challenges for consumers and the fintech industry. It is imperative for policymakers to address this issue and establish a robust and consistent framework for consumer protection in the financial sector. This will not only safeguard consumers but also contribute to the stability and integrity of Canada's financial systems.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Meta Files New Patent: Voice ID Data for User Authentication…Progress or Privacy Concern?
Patent | Aug 3, 2023
Image: Pixabay/Mohamed hassan
Meta, formerly known as Facebook, is taking a significant step towards enhancing user security and personalization. The company has recently filed a patent entitled "User Identification with Voiceprints on Online Social Networks."
This article will explore the details of this patent and what it means for users and advertisers along with a look at privacy and other concerns.
- Voice ID Authentication and Security
- Meta's new patent aims to record and analyze users' voices to determine a unique digital voiceprint. This voiceprint can be used for authentication, providing a higher level of security over traditional password-based login. Users will have the option to opt-in or opt-out of this feature, ensuring privacy and control.
See: Meta Agrees to $725 Million Class Action Settlement in Cambridge Analytical Scandal
- Personalized Content Experience:
- The patent also describes a process where the social-networking system may detect multiple people speaking and identify them based on their voiceprints. This identification can lead to customized content, including advertisements, news feeds, and suggestions, personalized to match the interests of the identified users.
- Integration with AR and Wearables
- Meta's current Ray Ban Stories glasses already respond to voice commands. The new patent likely relates to the expanded use of voice for the next generation of wearables, including AR glasses.
- It could be more about shared interests in augmented reality, based on friends' activities and locations.
Concerns Over Meta Listening to User Conversations
- "Always Listening" Myth? For years, there have been rumours that Facebook (now Meta) listens to private conversations to serve targeted ads. While Meta has consistently denied this claim, the new patent has reignited these concerns.
See: Unveiling the Massive Taxpayer Privacy Breach: Senators Demand DOJ Probe
- What if the system picks up random voices in the background or misidentification? Could this lead to unrelated ads or content being displayed? The effectiveness and accuracy of this technology will be crucial to its success. For example, if you use voice ID at a concert, and the mic picks up a passerby, you might end up receiving unrelated ads. The accuracy and effectiveness of this technology will be vital to prevent such mishaps.
- Even though the patent specifies that users can opt-in or opt-out, the potential for misuse or accidental identification cannot be ignored.
Progress or Privacy Concern?
Meta's new patent for gathering Voice ID data is an innovative approach to user authentication and content personalization. It promises enhanced security and a more tailored user experience. However, the potential challenges and privacy concerns cannot be overlooked.
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 Hard Part of Building a Fintech Startup: A Conversation with Cato Pastoll, CEO and Co-Founder of Loop
Podcast | Jul 31, 2023
Image: Bank on loop
"The Hard Part" podcast with host, Evan McCann sits down with Cato Pastoll, the CEO and Co-Founder of Loop, for this discussion.
Loop is a company that offers tailor-made products including CAD/USD corporate cards, interest-free spending, corporate-level purchasing power, no-fee global payments, accessible growth capital, and real US dollar accounts to help businesses grow.
They delve into the journey of Loop, starting from its pivot from Lending Loop to what it is today. They explore why word of mouth has become one of their fastest growth channels and why caring about your customer is the ultimate flywheel for any business, and also discuss the changes needed in our banking regulations to foster a more conducive environment for businesses.
See: Process Flow Comparison: How VISA Works When Swiping a Credit Card at a Merchant’s Shop VS Digital Wallet
So, whether you're an entrepreneur, a business enthusiast, or someone interested in the dynamics of the financial industry, this episode is packed with insights that you wouldn't want to miss. Tune in and let's dive into the hard part of building and growing a business with Cato Pastoll.
Loop's new website: bankonloop.com
Connect with Cato Pastoll: Linkedin
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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Experts Urge for AI Regulation: How is Canada Responding?
AI Regulation | Jul 31, 2023
As AI technology advances rapidly, experts urge for regulation. How is Canada responding?
Urgent Call for Regulation
AI pioneers and industry leaders, including CEOs of OpenAI and Google Deepmind, have issued warnings about the rapid development of AI technology. They have called for a global priority to mitigate the risk of extinction from AI, alongside other societal-scale risks such as pandemics and nuclear war.
See: Human Rights and Artificial Intelligence Governance
Canada has been part of the effort to draft a voluntary code of conduct for the AI industry, led by the United States and the European Union. Innovation Minister François-Philippe Champagne has been directly involved with his EU and US counterparts on this matter. Furthermore, a group of MPs and Senators are spending the summer meeting with those involved in AI to understand the issues better.
Top 5 Risks and Concerns
1. Data Privacy and Security
Without regulation, there's a risk that AI systems could misuse or mishandle consumer data, leading to breaches of privacy and potential identity theft. Businesses could also suffer from data breaches, leading to loss of customer trust and potential legal repercussions.
2. Bias and Discrimination
AI systems can unintentionally perpetuate and amplify societal biases if they're trained on biased data. This could lead to unfair outcomes in areas like hiring, lending, and law enforcement, affecting both consumers and businesses.
3. Lack of Transparency and Accountability
AI algorithms can be complex and opaque, making it difficult for consumers to understand how decisions about them are being made. This lack of transparency can also make it hard to hold businesses accountable for the actions of their AI systems.
4. Job Displacement
AI has the potential to automate many jobs, leading to displacement of workers. While new jobs may be created, the transition could be difficult for many workers and businesses.
5. Market Concentration
Without regulation, a few large tech companies could dominate the AI market, stifling competition and innovation. This could lead to higher prices and fewer choices for consumers, and make it harder for other businesses to compete.
See: Balancing AI Innovation and Intellectual Property Rights: Key Insights from the U.S. Senate Subcommittee Hearing
Canada's Legislative Response
The Canadian government is working on the Artificial Intelligence and Data Act (AIDA), which would introduce new obligations for "high impact" AI systems. However, the legislation is broad and leaves many specifics undefined until regulations are adopted. There have been calls for the government to prioritize this bill and ensure it is agile enough to address the rapid changes in AI technology.
See: How AI is Shaping the Future of Financial Services in Canada
Conclusion
As AI technology continues to evolve at a rapid pace, the need for regulation becomes increasingly urgent. Canada, as a significant player in the AI field, has a crucial role in shaping these regulations. The country's actions in the coming months, particularly regarding the Artificial Intelligence and Data Act, will be pivotal in setting a precedent for AI governance.
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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Experimentation: The Key to Building an Exponential Organization
Innovation | Jul 31, 2023
Image: Unsplash/Artem Podrez
In the rapidly evolving business landscape, adaptability and innovation are crucial. One of the most important aspects of this is building a culture of experimentation in your organization.
If you don't already subscribe to Peter Diamandis' blog, you're seriously missing key food for innovators.
Experimentation is the means by which Exponential Organizations (ExOs) make data-driven decisions. Each experiment creates a set of learnings that can be used to improve a product, service, and/or process, or test a new product or service. As emphasized by Jeff Holden, a renowned innovator and past XPRIZE board member, it's important to design your company as a potent experimental engine from the beginning.
The Power of Experimentation: Key Lessons
- A to B, then to C: Focus on getting from point A to point B. Once you’re at B, then you can see point C and plot a course toward it. This is also known as the MVP or Minimum Viable Product.
- Imagination and Experimentation, not Expertise and Experience: An ExO acknowledges that expertise alone is not sufficient and that relentless experimentation is essential for progress.
- Secrecy: Unless experimentation is the default policy throughout an organization, secrecy is critical when conducting experiments.
See: McKinsey: Tech Trends 2023 That Every Fintech, Bank, or Financial Service Provider Must Consider
- A Culture of Learning: Creating a culture that encourages taking risks is vital for unleashing the full potential of experimentation within an organization.
- Big Companies Can Also Experiment: Large, mature organizations often face challenges when it comes to adopting a culture of experimentation. However, some multinational corporations have recognized the value of running experiments in smaller markets to mitigate these challenges and test ideas more efficiently.
- Living on the Edge: By constantly experimenting, organizations stay closer to market realities.
Insights into Building a Culture of Experimentation
- Appoint a “head of experiments” to educate and prompt continuous experimentation
- Award teams that run experiments and learn, whether they succeed or fail
- Elevate the experimentation conversation to your regular staff meeting
- Encourage your management team to ask great questions
- Offer an incentive or series of prizes
Jeff Bezos, Amazon Founder:
“Our success at Amazon is a function of the number of experiments we run per year, per month, per day.”
🧪🧬🔬
In conclusion, experimentation is a tool of transformative potential. It goes beyond mere testing and trial and error—it’s about cultivating a mindset of discovery, driving innovation, enhancing performance, and embracing the unknown. If you’re not experimenting, then you’re an incremental organization and not an ExO.
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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Gary Gensler Speech to the National Press Club: “AI: The Most Transformative Technology of Our Time”
SEC Speech | Jul 18, 2023
In his speech before the National Press Club on July 17, Gary Gensler, the Chair of the Securities and Exchange Commission, discusses the transformative power of artificial intelligence (AI) and its implications for various sectors, particularly finance. He also raises concerns about the explainability and fairness of AI models, as well as the potential risks to financial stability posed by the dominance of a small number of AI platforms.
Select Quotes
"AI, though, is much broader. I believe it’s the most transformative technology of our time, on par with the internet and mass production of automobiles."
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- Gensler discusses the significant impact of AI, comparing its transformative power to that of the internet and the mass production of automobiles. He highlights how AI has already been adopted in various sectors, including finance, where it's used for call centers, account openings, compliance programs, trading algorithms, sentiment analysis, and more.
- He also mentions the rapid changes AI has brought to the field of robo-advisers and brokerage apps, emphasizing the breadth and depth of AI's influence.
See: FCA’s Emerging Regulatory Strategy for Big Tech and Artificial Intelligence
"AI models’ decisions and outcomes often are unexplainable... AI also may make it more difficult to ensure for fairness. The outcomes of its predictive algorithms may be based on data reflecting historical biases as well as latent features that may inadvertently be proxies for protected characteristics."
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- He raises concerns about the explainability and fairness of AI models. He points out that the complex, nonlinear, and dynamic nature of AI models can make their decisions difficult to interpret.
- He also warns about the potential for AI to perpetuate historical biases and discrimination, as AI models may use data reflecting these biases or use latent features that act as proxies for protected characteristics.
"The possibility of one or even a small number of AI platforms dominating raises issues with regard to financial stability... AI may heighten financial fragility as it could promote herding with individual actors making similar decisions because they are getting the same signal from a base model or data aggregator."
See: How Can We Improve Fighting Financial Crime With Artificial Intelligence?
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- He suggests that this could lead to financial fragility due to herding behavior, where individual actors make similar decisions based on the same signals from a base model or data aggregator.
- He also mentions the potential for AI to exacerbate the inherent network interconnectedness of the global financial system, which could pose additional risks to financial stability.
Read the full speech --> 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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FCA’s Emerging Regulatory Strategy for Big Tech and Artificial Intelligence
FCA | Jul 12, 2023
Insights from FCA Chief Executive, Nikhil Rathi, speech delivered at the Economist Impact, Finance transformed: exploring the intersection of finance 2.0 and web3, London
FCA's Regulatory Approach to AI
- The FCA plans to open an AI sandbox for firms wanting to test the latest innovations.
- Big Tech's role as gatekeepers of data in financial services will be under increased scrutiny.
- Will regulate firms designated as Critical Third Parties, which underpin financial services and can impact stability and confidence in markets.
See: The Use and Regulation of Artificial Intelligence: When AI Meets Consumer Duty
- Considering the risks that Big Tech may pose to operational resilience in payments, retail services, and financial infrastructure. It is also concerned about the potential for Big Tech to manipulate consumer behavioral biases.
- The FCA is questioning where accountability should sit – with users, with the firms, or with the AI developers. It is also considering what should be offered in terms of compensation or redress if customers lose out due to AI going wrong.
AI Innovation and Collaboration
- They are examining the explainability of AI models and the potential problems around data bias.
- Sees many opportunities for AI, including boosting productivity, improving financial models, tackling the advice gap, hyper-personalizing products and services, and tackling fraud and money laundering more quickly and accurately.
- The FCA is investing in its regtech horizon scanning and synthetic data capabilities, and has established a Digital Sandbox to support Fintech and other innovations.
See: How AI is Shaping the Future of Financial Services in Canada
- Existing frameworks in place to address many of the issues that come with AI, such as the Consumer Duty and the Senior Managers & Certification Regime.
- The FCA is open to innovation and testing the boundaries before deciding whether and what new regulations are needed. It aims to support economic growth and international competitiveness, and is ready to lead and help make the UK the global home of AI regulation and safety.
Read the full speech --> 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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