Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Cyber Security, Quantum, Hacks, Fraud Alerts, Risks, InsurTech
Why Card Fraud Can Continue After You Cancel Your Cards
Payments | Jan 12, 2026
Image: Freepik/stockking
How Payment Networks Can Quietly Refresh Compromised Cards
On January 8, 2026, UK consumer watchdog Which? published an eye-opening article, "Why cancelling your card might not stop fraud"explaining why cancelling a compromised card doesn't always stop fraud. The article covers a real world case showing how replacement card details can continue moving through global payment systems, allowing fraudulent charges to resume even after a bank issues a new card. What stands out is that the issue has little to do with careless consumers or missed fraud alerts. It sits deeper, inside how modern card payment infrastructure is built to keep payments running.
How Fraud Can Continue After A Card Is Cancelled
Most global card networks run automatic card updater services. These systems exist to make sure legitimate payments don’t suddenly fail when a card expires or gets replaced.
If a cardholder has previously saved their card with a merchant, the card network can automatically send the replacement card details to that merchant. The cardholder doesn’t need to approve anything and doesn’t need to take any action. It just happens.
See: Rising Threats: The Global Impact of Push Payment Fraud
These services operate across Visa, Mastercard, and American Express. They help subscriptions and recurring payments keep working without interruption. The problem is that the same process can also allow fraud to continue if a criminal has already saved stolen card details inside an account they control. So even when the bank issues a replacement card, if the network automatically updates that account with the new card details, then the fraudulent charges/payments can continue (and likely will leaving consumers bewildered and in the lurch).
What Cardholders Are And Are Not Told
In practice, when an automatic card updater service refreshes stored card details, the update usually happens quietly between the card network, the issuing bank, and the merchant (it all runs in the background).
Cardholders are typically told that a replacement card has been issued. They aren’t clearly told that the new card number may be sent automatically to merchants where the old card was saved, including after fraud. They also aren’t told which merchants receive those updated details.
Some merchants may show a generic message such as “your payment details were updated,” but this varies by platform and is easy to miss. There isn't a standard alert explaining that replacement card credentials were transmitted automatically.
See: JPMorgan vs. Regulators Over Zelle Fraud Scams
Many consumers never realize that automatic updates exist at all. And in most cases, they don’t know the updates can continue after fraud unless someone stops them. Then it stands to reason that they also likely don’t know they can ask their bank to turn them off. Automation keeps running by default, while awareness and consent lag behind.
What Banks Can Do Today
The Which? article confirms that issuing banks can disable updater services or perform what fraud teams often describe as a full wipe. This stops replacement card details from being shared with any online accounts or digital wallets.
The catch is that this step isn’t automatic. In most cases, the customer has to know the option exists and ask for it. Once a consumer later adds their card back to trusted merchants, those accounts may again become eligible for automatic updates.
That means that the outcomes depend more on awareness than on risk.
Why It Matters and Recommendation
Fraud isn’t a routine card replacement; it’s a security failure, and the system doesn’t always treat it that way. Automatic updater services make sense when a card expires or gets damaged, but when fraud has already occurred, letting replacement credentials continue to move silently through the system creates avoidable risk. Requiring express consumer consent after fraud and making full wipe policies the default response would reduce repeat incidents and avoid putting the burden on consumers to navigate payment systems they can’t see.
See: Canada Launches First National Anti-Fraud Strategy
This situation is a good example of how invisible infrastructure decisions can cause real harm when transparency and control fall behind automation. Payments innovation can’t rely on convenience alone. Trust in digital finance depends on how clearly systems explain what’s happening and how decisively they contain risk once something goes wrong.
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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Photonic $180M Financing Puts Quantum In Focus in 2026
Quantum Financing | Jan 9, 2026
Image: Unsplash/Planet Volumes
A Major Canadian Quantum Financing Forces A Clearer Look At What Actually Matters in 2026
On January 6, 2026, Photonic $180M CAD financing led by UK based Planet First Partners brought large scale foreign capital into Canada’s quantum sector, with new Canadian institutional participation from RBC and Telus. At the same time, Ottawa launched Phase 1 of the Canadian Quantum Champions Program, committing up to $92M CAD across four companies, including Photonic, Xanadu, Nord Quantique, and Anyon Systems, as part of a $334.3M five year federal quantum investment announced in Budget 2025.
See: BTQ Technologies Announces Quantum Safe Bitcoin Demo
The timing suggests that Canada’s multi year quantum funding commitment may have helped lower perceived risk for both foreign investors and Canadian institutions, even though no direct causal link has been publicly stated. Public funding keeps core quantum builders anchored domestically, while private capital begins to treat leading teams as institutional grade businesses rather than long term research projects. As outlined in British Columbia Investment Management write-up who also participated in Photonic's round, when public and private capital move together at this scale, founders and global buyers take Canada more seriously.
Having said that, in 2026 what actually matters is not running quantum workloads, but preparing for the security, regulatory, and capital consequences that this level of quantum funding now creates.
Will Quantum Become A Major 2026 Story?
The strongest counterpoint does not come from skeptics. It comes from how enterprise leaders rank priorities. For example, the Gartner Top Technology Trends 2026 does not include quantum computing among its top ten themes. CIO agendas continue to focus on AI platforms, security posture, provenance, and geopolitical resilience. That does not dismiss quantum, but it does highlight a timing gap between capital commitment and operational adoption.
Government timelines reinforce that gap for quantum computing itself. The US Defense Advanced Research Projects Agency frames its Quantum Benchmarking Initiative around proving whether any approach can reach utility scale quantum systems by 2033, defined as performance where value exceeds cost. For most buyers, that horizon places 2026 clearly in preparation mode rather than procurement for quantum compute workloads.
See: Google’s Willow Quantum Chip Breakthrough
Security planning, however, tells a different story. The Forrester 2026 technology and security outlook projects that quantum security spending will exceed 5% of total IT security budgets in 2026. That spending focuses on migration planning, cryptographic discovery, and inventory tools to prioritize high impact systems. This does not signal near term adoption of quantum computers. It shows that quantum already matters operationally through security readiness, compliance pressure, and budget allocation.
The above explains why quantum feels both early and urgent at the same time. Compute remains longer dated, but security and cryptography move first. In August 2024, NIST finalized post quantum cryptography standards with explicit guidance for organizations to begin transitioning, and Canada aligns with that direction through federal quantum safe cryptography guidance.
Concurrently, Canada’s quantum builders continue to clear independent validation gates. As of November 6, 2025, DARPA Quantum Benchmarking Stage B advances 11 companies globally. Canadian firms Photonic, Xanadu, and Nord Quantique have progressed to this stage, which may matter more than domestic promotion.
Fintech Implications
In 2026, the real risk is committing too early to cryptography, vendors, or long-term contracts that cannot adapt as post-quantum requirements take shape. The combination of the Photonic financing and the $334.3M federal commitment makes this risk harder to ignore, not because quantum computers arrive tomorrow, but because capital and policy are both pointing toward future regulatory expectations. Regulators and auditors do not need quantum machines to ask whether systems can migrate without breaking core functions.
See: Market Forces Pressuring Fintech Plans For 2026
In practical terms, quantum readiness in 2026 means crypto agility, understanding where cryptography sits across the stack, and pressure testing suppliers against post quantum encryption standards. This work costs far less than a rushed migration later and fits inside security and compliance budgets that already exist.
Outlook
The combination of a $180M CAD foreign led financing, $92M CAD in Phase 1 federal funding, and a $334.3M five year national quantum commitment puts Canada into a new category in 2026. Quantum still won't drive enterprise workloads in the near future, but for fintechs, banks, and infrastructure providers, the practical focus this year is crypto agility, supplier flexibility, and readiness for post quantum standards, not experimentation for its own sake.
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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CSA and CIRO Set Clear Rules for Finfluencers
Regulation | December 15, 2025
AI generated image
Canadian Regulators Clarify How Finfluencer Activity Triggers Securities Law
On December 11, 2025, the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) released new guidance for finfluencers, investment firms, and issuers on how securities laws apply to online investing activity (Download CSA and CIRO Staff Notice 31-369 13 page PDF). Social media now plays a real role in how Canadians make investment decisions, and regulators expect existing securities law to apply when online influence impacts behaviour. The guidance clarifies when creators must register, how disclosure must work in short-form content, what counts as advice or trading activity, and where firms and issuers remain responsible when they work with finfluencers. Keep reading to learn about the practical implications, including some use case examples covered in the report.
Why Regulators Are Tightening Expectations Now
Regulators are responding to what they see in the market today. Social media is no longer a side channel for financial education. It is where many investors first encounter investment ideas, products, and promotions, often without realizing when education turns into influence.
As NCFA previously reported, based on the CSA's 2024 Investor Index, 53% of Canadian investors now use social media as a source of investment information. Among younger investors aged 18 to 24, reliance on social platforms is even higher. Those investors face materially higher risk.
- 35% of surveyed investors report making a financial decision based on finfluencer content
- 12.2 times more likely to report being scammed on social media
- 2.3 times more likely to have experienced a significant investment loss, and
- 3.1 times less likely to work with a licensed financial advisor
The OSC also tests causation, not just correlation. In a controlled experiment involving 1,465 Canadians managing a simulated $10,000 portfolio, 38% of participants exposed to finfluencer style promotional posts purchased the promoted asset, compared with 8% in the control group. Exposure alone drives different investment choices, even without personalized advice.
Canadian securities regulators examined 87 finfluencers and 9 issuers and repeatedly found undisclosed compensation, promotional framing that functions as recommendations, and content drifting into advising or trading activity without registration.
The CSA and CIRO aren't introducing new rules. They are making it clear how existing securities law already applies when online content influences investment decisions. There's a clear message that Finfluencers should take seriously:
Labels and intent matter less than impact. What counts is how a reasonable investor experiences the content, not how the creator describes it.
When Finfluencers Need to Register
Finfluencers need to register when they provide investment advice or help facilitate securities trading for a business purpose, unless a specific exemption applies.
See: The Finfluencer Effect on Canadian Retail Investors
A business purpose doesn't require a formal firm, a full-time role, or a registered brand. Regulators look at how the activity actually operates. Repetition, promotion, compensation, solicitation, and continuity over time all matter. Paid courses, subscription communities, affiliate arrangements, and recurring sponsored content often meet this threshold.
The guidance is explicit that finfluencers cannot avoid registration by saying their content is not advice. Disclaimers do not change how regulators assess the activity.
What Counts as Advice and Trading Activity
Investment advice includes opinions about the merits of investing in a specific business or security, as well as recommendations to buy or sell. The guidance notes that even promotional language or emojis that imply opportunity can be interpreted as recommendations.
Trading activity is defined broadly. It includes not only executing trades, but any act done in furtherance of a trade. The guidance specifically points to copycat trading enablement, such as linking followers who pay a subscription fee to replicate trades in a self-directed account. These lines are crossed more often than many creators realize.
The General Advice Exemption Is Limited
Some finfluencers rely on the general advice exemption when providing broad and non-personalized commentary, however the regulator's guidance makes clear that this exemption is narrow and conditional.
If a finfluencer relies on it, they must clearly disclose any financial or other interest in the securities discussed. Financial or other interest is interpreted broadly and includes indirect incentives, compensation arrangements, and related party interests.
See: Bridging Canada’s Advice Gap with Global Insights
The exemption does not apply to trading activity. This distinction becomes critical when education is paired with transaction pathways.
What Proper Disclosure Looks Like in Practice
Disclosure needs to be clear, prominent, and specific enough for an audience to understand the security involved, the incentive, who paid it, and who received it.
The guidance is direct about what fails. Statements like “I may have a financial interest” are not enough. Disclosure also fails when it is buried at the end of a video, hidden behind extra clicks, or written in a way viewers are unlikely to notice.
A simple acid test applies. If a viewer has to look for the disclosure, it likely does not meet expectations.
Examples of Creators, Firms Crossing the Line
The example scenarios below highlight when creators drift into regulated activity without intending to. These aren't rare cases but common growth paths.
In one example, a creator starts with general investing education. That activity stays outside registration. When the creator adds buy and sell signals in a paid course, the activity becomes advising. When the creator begins answering personalized questions through comments and direct messages, charges fees, and scales tailored advice, registration becomes necessary or the activity needs to stop.
See: Lena Dunham’s SBF Film & Finance Pop Culture
In a second example, a crypto-focused creator promotes a token without compensation. When that creator later joins an airdrop program tied to promotional tasks, the activity becomes compensated promotion. Disclosure obligations arise immediately and need to stay current. Linking to trading platforms and receiving payments from followers or platforms can also push the activity into trading facilitation.
In a third example, a creator promotes issuer securities for payment but hides the sponsorship because disclosure reduces engagement. Disclosure is buried behind “show more” links. Regulators treat this as a breach and move to enforcement. Not knowing the rules does not change the outcome.
What Firms Need to Do Before Working With Finfluencers
Registered firms that work with finfluencers are expected to govern those relationships. That includes due diligence, written agreements, training, ongoing monitoring, and corrective action when content becomes misleading or non-compliant.
Order-execution-only dealers face added sensitivity. Because they cannot provide advice, regulators caution against indirectly enabling recommendations or registerable activity through referral arrangements, hosted content, outbound links, or copycat trading features.
For fintech platforms, this brings compliance into product design. Referral flows, creator landing pages, and trading enablement features all carry regulatory weight.
What Issuers Remain Responsible For
When issuers work with finfluencers, social media content counts as public disclosure. Issuers remain responsible for statements made on their behalf.
Regulators expect issuers to ensure content stays factual, balanced, consistent with filed disclosure, and clear about paid relationships. Issuers need to provide guidance and controls rather than leaving disclosure discipline to third parties.
See: The Finfluencer Effect on Canadian Retail Investors
Promotional shortcuts can surface later during diligence and capital raising.
How AI and Digital Influencers Are Treated
Securities law applies regardless of whether content is created by a human, a digital avatar, or an AI system. Anyone deploying AI to generate investment related content remains responsible for that content as if they created it themselves.
For platforms experimenting with automated education or AI powered engagement, note that technology does not reduce accountability.
Why This Matters
Finfluencer activity now sits firmly inside the regulatory perimeter. Data shows that influence impacts behaviour, and behaviour drives investment decisions. This new guidance gives founders, platforms, creators and issuers clarity. Teams that design content, monetization, referral flows, and product features with these expectations in mind can move faster with fewer surprises.
Read: New CFR Review Highlights Gaps Fintechs Must Close
Teams that treat finfluencer activity as casual marketing often discover where the line sits only after they cross it. That is the practical message regulators are sending, and it is one the market needs to take seriously now.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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The Complete Checklist for Hiring an External Auditor for Your Company’s Annual Audit
December 15, 2025
Image: Freepik/DC Studio
Hiring an external auditor is a major responsibility for any company—whether you're a fast-growing startup, a mid-size business, or a mature organization. The quality of your annual audit depends heavily on the auditor you choose. A strong external auditor brings credibility, compliance, and confidence. The wrong choice leads to delays, confusion, higher costs, and audit findings that could have been avoided.
To make the selection process easier, here is a complete checklist to help you hire the right external auditor, understand the documents involved, and know exactly what to expect throughout the process.
1. Know Why You Need an External Auditor
Before you begin searching, clarify your reasons for hiring an auditor. Common reasons include:
- Statutory compliance requirements
- Investor expectations
- Loan or banking requirements
- Preparing for fundraising or acquisition
- Strengthening financial transparency
Understanding your purpose helps you choose an auditor with the right level of expertise.
2. Documents You Need Ready Before Hiring
External auditors will request documentation before quoting, planning, or starting the audit. Preparing these in advance saves time and makes the evaluation process smoother.
Financial Documents
- Trial balance
- General ledger
- Chart of accounts
- Previous year’s audited financial statements
- Bank statements and reconciliations
- Accounts receivable and payable reports
- Sales and purchase registers
- Expense reports
- Cash-flow statements
Corporate Documents
- Incorporation certificate
- Board resolutions
- Shareholding structure and cap table
- Contracts with customers and vendors
- Loan agreements or debt documents
Operational Documents
- Inventory records
- Payroll summaries
- Fixed asset register
- Internal control policies (if available)
Having these ready demonstrates professionalism and speeds up the auditor selection process.
3. Evaluate External Auditors Using These Criteria
Choosing an auditor is not about selecting the cheapest quote—it’s about finding the right fit for your business.
a. Industry Experience
Does the auditor understand your business model?
For example:
- SaaS revenue recognition differs from e-commerce
- Manufacturing inventory systems require specialized expertise
Industry experience reduces questions, misunderstandings, and delays.
b. Audit Firm Size & Capacity
Ask yourself:
- Do they have enough staff for timely completion?
- Will your company receive senior-level attention?
- Do they work with companies of similar size and complexity?
Choose a firm that matches your stage of growth.
c. Qualification & Accreditation
Ensure the auditors are certified:
- CA (India)
- CPA or ACCA (International)
These qualifications ensure professional standards and ethical compliance.
d. Communication Style
A responsive, clear communicator will make your audit experience much smoother.
Watch for:
- Prompt replies
- Clear explanations
- Proactive updates
If they’re slow during the proposal stage, they’ll be worse during the audit.
e. Technology & Tools
A modern audit firm should use:
- Data analytics
- Cloud file-sharing
- Automated workflows
- Digital audit software
This reduces paperwork and speeds up results.
f. Independence
External auditors must remain independent.
Avoid any firm that also handles:
- Financial decision-making
- Internal controls design
- Certain consulting functions
Independence protects credibility.
4. Questions to Ask Before Hiring an Auditor
Use these questions to evaluate the firm’s capability:
Audit Process & Planning
- What is your typical audit timeline?
- How do you handle planning and risk assessment?
- What documentation do you require upfront?
Team Structure
- Who will be leading the audit?
- How experienced are the team members?
- Will there be continuity year-over-year?
Fees
- What is included in your quoted fee?
- Are there any additional charges for extra work?
- How do you handle changes in scope?
Experience
- Do you have clients in the same industry?
- Can you share references or case studies?
Technology
- How do you ensure data security?
- Which tools do you use for audit testing?
These questions help you assess both capability and professionalism.
5. What to Expect Once the Audit Begins
A good auditor follows a structured and transparent approach.
a. Audit Planning & Kick-Off
The auditor will:
- Discuss timelines
- Assess business risks
- Understand your processes
- Request initial documentation
This sets the tone for the audit.
b. Fieldwork & Testing
During fieldwork, auditors will:
- Verify transactions
- Perform sample testing
- Review internal controls
- Match records with supporting documents
- Analyze financial trends
Expect frequent communication and clarifications.
c. Query Resolution
The auditor will raise questions or notes where:
- Documentation is missing
- Numbers don’t tie up
- Controls appear weak
Responding promptly keeps the audit on track.
e. Audit Report Preparation
Once testing is complete, the auditor prepares:
- Draft audit report
- Management letter (if issues are found)
Your team reviews and finalizes the documents before signing.
f. Final Sign-Off
After all issues are resolved, the auditor issues the final audited financial statements—ready for filing, investors, or lenders.
6. Red Flags During Auditor Selection
Be cautious if:
- The firm quotes extremely low fees (often signals poor quality)
- They avoid discussing audit methodology
- They refuse to share references
- Communication is slow or unclear
- They lack industry experience
- They seem overly eager to agree with everything
See: New CFR Review Highlights Gaps Fintechs Must Close
A thorough vetting process protects your business from future problems.
7. Timeline Expectations
A standard annual audit typically takes:
Planning: 1–2 weeks
Fieldwork: 2–4 weeks
Finalization: 1–2 weeks
However, delays occur if documents are missing or systems are disorganized—another reason to prepare early.
Conclusion
Hiring an external auditor is not just a compliance checkbox—it's a strategic step toward stronger financial reporting, better governance, and improved investor trust. With the right preparation, documentation, and evaluation process, you can choose an auditor who understands your business, communicates well, and completes your audit efficiently.
Use this complete checklist to guide your selection process and ensure your company’s annual audit is smooth, timely, and accurate.
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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Canadian Fintech Tuhk Raises US$6M Seed Round
Funding | December 8, 2025
Image: Freepik/rawpixel.com
Tuhk Building Global Collaboration Network for Payment Fraud Prevention
On December 8 2025, Canadian payment fraud fintech Tuhk announced a US$6 million seed round led by FINTOP (US), with particiation from Lloyds Banking Group (UK), and Capital One Ventures (US), to transform fragmented information into a shared intelligence network that improves approval rates, reduces disputes, and strengthens real time decisioning for financial institutions and merchants.
Tuhk is planning an imminent launch in the United Kingdom, the United States, and Canada and is offering an early access program while it refines its product ahead of the broader rollout, which you can confirm on the Tuhk early access page.
See: Rising Threats: The Global Impact of Push Payment Fraud
Andre Edelbrock, Tuhk Co-Founder and CEO:
"This funding round represents an important milestone for Tuhk, and we are grateful for the support from partners like Lloyds Banking Group, Capital One Ventures, and FINTOP. With these resources, we look forward to expanding the platform's reach and delivering practical, scalable solutions that strengthen the global payments ecosystem."
Investors Back Large Global Fraud Problem
Cybersecurity Ventures projects global cybercrime losses at US$10.5 trillion in 2025. This projection appears in the cybercrime cost estimate report. The figure includes financial loss from fraud, digital attacks, and misuse across global markets.
The scale of the projected loss shows the size of the problem that payment systems, banks, merchants, and financial platforms must work collaboratively to address in real-time, rather than isolated tools.
Launch Expertise And Leadership
The release says Tuhk’s founding team includes veterans of Ethoca and NuData Security, two Canadian companies that helped define collaboration based fraud intelligence before Mastercard acquired NuData Security in 2017 and then acquired Ethoca in 2019.
Tuhk builds on this experience as it prepares for a full commercial launch in early 2026. The company named Andre Edelbrock as CEO and appointed Stewart McIntosh as Chief Revenue Officer to lead global commercial strategy.
Outlook
Tuhk's US$6 million funding will go a long way as the company prepares to show financial institutions and merchants that by working together in sharing real-time shared fraud intelligence, improves approval accuracy, reduces misuse, and strengthens fraud outcomes for institutions that manage rising digital payment volumes.
Read: How Fintech Teams Move From Tools To Agents
Lloyds Banking Group framed the direction clearly saying that “collaboration is the only way we combat the increasing global threat of fraud and stop it from happening in the first place.”
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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Market Forces Pressuring Fintech Plans For 2026
Strategic Planning | Nov 28, 2025
Image: Freepik/rawpixel.com
Fintech Considerations For 2026 Strategy
2026 is approaching and fintechs are entering the new year with clear signals on how capital is being deployed, how financial institutions are investing in automation and AI driven capabilities and which policies will shape financial infrastructure. Markets place a higher premium on efficiency, governance and resilience as financial institutions modernize data access and digital settlement. Retail investor participation also expanded as equity crowdfunding set new records in Canada, strengthening another channel of capital formation.
See: United States Genesis Mission And Canada’s Competitiveness
United States tariffs and interest rate expectations continue to influence capital costs and enterprise demand across North America. Singapore FinTech Festival 2025 recently wrapped and outlined what global leaders expect over the next decade. This article provides an overview of how these forces intersect and will impact 2026 conditions, helping fintechs define runway, product plans and investor alignment for the year ahead.
Capital Planning End of 2025
Global investors concentrated capital into fewer fintech companies through 2025. KPMG tracked $44.7B across 2,216 global fintech deals and reported stronger momentum in digital assets and AI powered platforms. The global fintech funding review for 2025 notes uneven performance across payments and infrastructure and continued strength in digital asset investment. AI influence extends across every funding stage and drives the clearest premium in investor behaviour.
Canadian fintechs raised about $1.62B across 60 deals. KPMG data reported by Lexpert shows a steep decline from record 2024 levels as investors became more selective and disciplined. KPMG’s H1 2025 report confirms the trend toward fewer large cheques and more careful deployment.
CVCA reported $2.9B across 254 Canadian VC deals with average cheque sizes near $11.4M. The VC deployment across Canada in H1 2025 reported that early stages represented more than half of deal count but only 10% of dollars. NCFA’s seed review shows AI companies raising about $24M across 12 early stage rounds and fintech attracting about $9M across pre-seed and seed combined in the seed investing trends in H1 2025.
Canadian founders also turned to retail investors through regulated equity crowdfunding channels. FrontFundr, a leading Canadian investment crowdfunding platform, enjoyed a banner year raising CAD $68.3M across 66 campaigns in 2024 with 4,226 individual investments, its strongest year on record. This growth in community capital raising speaks volumes that diversified sources of early stage capital can complement VC allocations during selective cycles. For fintechs, retail participation can help extend runway, validate demand and reduce dependence on a small number of institutional investors.
AI remains the strongest source of valuation strength across the fintech sector. NCFA’s analysis shows that AI fintechs attract a 242 valuation premium compared with non AI peers. This tells fintechs that investors reward automation, accuracy and data advantage even during slower deployment cycles. AI's impact will continue to drive product development strategy, unit economics and growth planning for 2026.
Canada Moving On Open Banking, Payments, Stablecoins, While Pausing Climate Disclosure
Open banking moves into implementation. Budget 2025 commits to a consumer driven banking framework that designates the Bank of Canada as the supervisor for accredited participants and sets rules for data access, liability, security and technical standards. The consumer driven banking framework in Budget 2025 changes data mobility from one off arrangements to regulated data rails. These data rails also support AI adoption because models require secure access to high quality data. Fintechs that prepare for accredited access and safe data workflows will gain an advantage as institutions deploy AI into risk, compliance and customer operations.
Fintechs should expect accreditation activity, testing and early stage integrations as technical standards move toward production readiness through 2026.
Retail Payment supervision is operational and supports future access to real time settlement. Under the Retail Payment Activities Act, the Bank of Canada supervises payment service providers to ensure operational resilience and safeguarding of client funds. This oversight creates the regulatory foundation required for participation in core payment systems. Payments Canada continues development of the Real Time Rail (expected Q2 2026), while the Bank’s commentary on cashing in on payments innovation explains how regulation strengthens competition and prepares the foundation for modernized settlement. It also sets the operational standards that AI systems must meet for real time fraud detection, liquidity monitoring and compliance automation. Fintechs should plan for higher compliance expectations in 2026 and a clearer pathway into national payment systems once real time settlement becomes available.
See: Canada Open Banking Commercialization Roadmap
Stablecoin regulation advances. Canada released the first draft of its federal stablecoin legislation which sets out rules for high quality reserves, custody, redemption, disclosures and prudential oversight. NCFA’s summary of the first draft of the Stablecoin Act outlines a government framework that brings fiat backed stablecoins into a supervised environment. As tokenized settlement expands, AI will move deeper into treasury, reconciliation, fraud control and settlement routing. Fintechs that design early AI enabled settlement workflows will operate more efficiently under these rules. Fintechs involved in digital money, cross border payments or tokenized settlement should expect stronger regulatory clarity across 2026.
Climate and sustainability disclosure remains paused. CSA halted its mandatory climate disclosure rule in April 2025 and signalled the pause will continue. Although the rule is on hold, enterprise buyers and investors still assess climate and transition risk data during diligence. The CSA climate disclosure update notes that existing materiality rules and OSFI Guideline B-15 still apply through 2026. AI plays a growing role in climate analytics and transition planning, which means fintechs that use AI for risk scoring and scenario work will offer enterprise buyers more actionable intelligence during diligence. Fintechs should assume voluntary disclosure is expected even without a formal mandate.
Competitiveness pressure remains. Bank of Canada leadership warns that slow progress on open data, payment modernization and digital infrastructure affects productivity and innovation. Reuters coverage of the warning on over regulation and competitiveness highlights the need to accelerate foundational reforms. AI impacts that competitiveness gap because institutions deploy AI into fraud detection, lending, treasury and customer workflows. Fintechs that use AI with strong governance will operate more efficiently, support regulated environments and scale faster when data access and payment rails modernize.
For fintechs, these signals point to regulated data access, modern payments and digital assets becoming the highest value infrastructure themes for 2026..
United States Tariffs, Rates And Capital Conditions
Fintechs operating in the North American economy are being impacted by United States tariffs, rate decisions and political volatility. United States imposed tariffs cut Canada’s projected GDP growth to about 1.4% in 2025 and 1.6% in 2026, according to IMF linked projections. These estimates reflect weaker demand and reduced investment appetite across export dependent sectors. Fintechs should treat tariffs as a structural constraint for 2026, not a short term shock.
Markets now expect the Federal Reserve to cut rates in December. Polymarket shows an 87% chance of a 25 point rate cut, based on more than $183M in trading volume, which reflects strong real time sentiment. Economists still expect only small rate cuts through 2026, with United States growth around 2% and inflation near 2.6%. Fintechs may receive some cost of capital relief but investors will continue to expect efficient spending, strong revenue performance and clear evidence of product viability at today’s cost structure.
See: Canada Expanding Economic Ties With UAE India And Africa
Canadian monetary authorities modeled the tariff impact and warned that trade friction could reduce investment by about 12% and lower output by almost 3% over two years. The Bank’s scenario work on tariffs and structural change supports planning for lower investment and slower recovery.
Fintechs should prepare for slower enterprise procurement cycles and more selective purchasing behavior.
Globally Expect Slower Trade, Fragmented Rules And AI Pressure
Global growth projections dropped to about 2.8% in 2025 as tariffs spread and trade tensions widened. Export Development Canada’s global economic outlook for 2025 and 2026 forecasts Canadian growth around 0.8% in 2025 and 1.1% in 2026. Fintechs should expect slower demand, higher operating costs and more uncertainty across key trading regions.
An MIT study released in 2025 shows that about 12% of United States jobs could be automated using current AI tools today. As AI pressure intensifies it drives enterprise demand for automation, cost control and compliance. It also accelerates talent scarcity and raises expectations for governance and model transparency across financial services.
Global regulatory fragmentation expands. The EU AI Act, United Kingdom digital regulation, Singapore AI governance frameworks and China data sovereignty rules all diverge. If fintechs want to scale internationally in 2026, they must build modular compliance, auditability and data governance into core architecture.
What SFF 2025 Says About 2026 And Beyond
SFF 2025 provided a clear view into the next cycle of fintech infrastructure and the capabilities that institutions expect. The SFF 2025 blueprint for the next decade of finance placed AI, tokenized settlement, quantum readiness and talent at the centre of global financial transformation for the coming years.
AI moved into production across onboarding, monitoring, underwriting and support. Financial institutions showed mature applications that reduce fraud, improve accuracy and accelerate customer workflows. Tokenized finance advanced as central banks and major institutions tested tokenized settlement assets, wholesale CBDCs and regulated stablecoins. These experiments are clear move from demos towards infrastructure design.
See: How Fintech Teams Move From Tools To Agents
Quantum readiness entered strategic planning as banks prepared for post quantum cryptography and assessed their high value data inventory.
Talent emerged as one of the most constrained resources, with strong demand for cybersecurity, data and AI capabilities.
2026 will reward fintechs that integrate AI into their core stack, design products that support tokenized workflows, build quantum safe readiness and hire for digital infrastructure skills that support resilience and scale.
2026 Fintech Planning Insights
| Canada Policy Shifts That Drive 2026 Strategy | ||
|---|---|---|
| Open Banking Readiness | Canada moves to regulated data rails with accreditation and Bank of Canada oversight. | Build accredited data access readiness now. This creates a major advantage when banks and credit unions adopt regulated data sharing in 2026 and gives fintechs a lead when institutional partners demand safe integration. |
| Payment Supervision Alignment | Retail Payment Activities Act supervision is active and PSPs prepare for Real Time Rail participation. | Raise operational standards to meet supervision requirements. This clears the path for Real Time Rail access when available and strengthens partnership credibility with banks that expect higher resilience from PSPs. |
| Stablecoin Compliance Design | Canada released the first draft of the Stablecoin Act with rules for reserves, custody and redemption. | Design compliance into digital money products now. This avoids costly retrofits when rules finalize and positions fintechs for early participation in tokenized settlement experiments that banks support across 2026. |
| Transition And Climate Disclosure | CSA paused mandatory climate disclosure but investors still expect transition data in diligence. | Maintain credible voluntary disclosure. This reduces diligence friction with investors and large institutions that rank climate and transition data as core risk inputs even without a mandate. |
| Capital Conditions For Canadian Fintechs | ||
| Runway Discipline | Canadian funding normalizes with more selective deployment and fewer large rounds. | Plan 18 to 24 months of runway. This protects valuations and gives Canadian fintechs flexibility during slower deployment cycles and longer diligence timelines. |
| Revenue Quality First | Investors reward revenue durability as rates in the United States and Canada change slowly. | Increase margins, retention and customer lifetime value. This strengthens funding outcomes and signals that the business performs at today cost of capital. |
| Diversified Capital Routes | Equity crowdfunding reached record levels with rising retail participation in Canada. | Use investment crowdfunding to extend runway and validate market demand. This reduces reliance on a small number of venture investors and supports growth during selective funding cycles. |
| AI As The Primary Driver Of Competitiveness | ||
| AI As Core Infrastructure | SFF 2025 showed AI runs onboarding, risk, fraud and support in production. | Automate core work and improve accuracy. This reduces cost, raises product reliability and strengthens enterprise trust when selling into Canadian banks and credit unions. Remember, AI fintechs receive a valuation premium because automation and accuracy improve economics at every growth stage. |
| Model Governance Strength | Institutions expect clear model behaviour and explainability before integration. | Document lineage and monitoring with precision. This increases procurement success and accelerates enterprise adoption when institutions face rising AI governance requirements. |
| AI Driven Efficiency | Canadian enterprises invest in automation as budgets remain tight. | Replace manual workflows with AI to lower operating cost. This strengthens margins during slower growth and improves investor confidence. |
| Tokenized Settlement And Security Readiness | ||
| Tokenized Settlement Readiness | Banks and central banks test tokenized deposits and wholesale CBDCs. | Design workflows that support tokenized settlement. This prepares Canadian fintechs for early pilot participation when infrastructure tests expand in 2026. |
| Quantum Safe Architecture | Institutions begin planning for post quantum encryption. | Inventory sensitive data and adopt cryptographic agility. This protects long term assets and reduces future migration cost for Canadian fintechs selling into regulated environments. |
| Trade, Tariffs And Canadian Procurement Conditions | ||
| Adjusted Sales Cycles | Tariffs reduce Canadian investment and slow enterprise buying. | Extend sales cycle assumptions and build conservative forecasts. This improves cash planning and prevents burn surprises when procurement slows across regulated sectors. |
| Cost And Risk Value Propositions | Global growth slows and Canadian enterprises protect budgets. | Lead with measurable savings and risk reduction. This increases purchase probability in cost constrained environments and improves sales success during slow demand cycles. |
Why It Matters For 2026
As the close of 2025 nears, fintechs operate in a world where capital rewards evidence first, and where AI driven performance gains receive premium valuation only when they improve accuracy, automation or margins. Fintech policy advancement in Canada moves forward on open banking, payments and stablecoins and these developments create new regulated rails to build on. Tariffs, interest rates and slower global growth increase the need for financial discipline and durable revenue streams. Retail investors also became more active in 2025 as equity crowdfunding set new records, giving Canadian fintechs another way to raise capital when venture funding is more selective. SFF 2025 highlighted the technologies that will shape financial infrastructure for the next decade.
See: AI Immerses Youth Today And The Real Question Of Protection
Fintechs that align their strategy with the forces that matter, including AI, regulated data access, modern payments, tokenized settlement and stronger governance, will be better positioned to raise capital, win enterprise partnerships and scale through uncertainty.
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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AI Immerses Youth Today And The Real Question Of Protection
AI and Mental Health | Nov 27, 2025
AI generated image
OpenAI Rejects Blame In Teen Suicide Case As Debate Grows
Youth's lives are now immersed with AI at every turn. That reality was in sharp focus on November 26, 2025 when OpenAI denied wrongdoing in the death of sixteen year old Adam Raine, who died by suicide earlier this year. The family’s lawsuit alleges that months of increasingly personal conversations with ChatGPT influenced the teen during a period of vulnerability, while OpenAI rejects any link between the system and the tragedy. New reporting shows how those conversations developed over time and why the case is now drawing widespread attention.
Matthew Raine (Adam's father), told United States senators as he described those conversations:
“What began as a homework helper gradually turned itself into a confidant and then a suicide coach,”
This case is one of seven active lawsuits involving generative AI and vulnerable users across North America. NCFA raised similar concerns in earlier reporting on another teen chatbot tragedy. This new case unfolds as AI already significantly impacts how young people study, socialize, seek emotional support and enter the workforce. It raises a broader question about protection that goes beyond content filters or bans.
What The Data Shows About Youth And AI Support
A national study published in JAMA Network Open reports that 13.1% of adolescents and young adults use generative AI chatbots for mental health advice when they feel sad, angry or nervous. Most describe the advice as helpful. This finding shows how AI now plays a measurable role in emotional coping, based on survey results on youth emotional-support chatbot use.
A recent national survey from Common Sense Media finds that 72% of teens aged thirteen to seventeen have tried AI companions. Many use these tools for advice or personal communications highlighting how quickly AI tools have entered emotional and social spaces once held by peers or family. This comes from new data on widespread teen use of AI companions.
Educators and clinicians also report clear blind spots. A comprehensive review of AI mental health tools notes that chatbots can miss signs linked to psychosis, eating disorders and trauma, while new research has evidence that AI chatbots may reinforce mental-health stigma. NCFA previously reported on early evidence of AI psychosis and trust risks. Together these findings suggest that AI tools may feel supportive while still lacking the judgment needed during moments of real crisis.
Why Teens Turn To AI When Options Run Thin
Many young people turn to AI tools because other options feel out of reach. AI tools feel private, immediate and nonjudgmental, according to survey findings on why teens choose AI companions (NB: 75% of teens have tried AI companions).
In the United States most adolescents with major depressive episodes don't receive treatment in a given year, according to national data on adolescent depression care gaps.
In Canada, evidence points to similar gaps with thousands of children and youth waiting months for counselling and therapy across the country. In Ontario alone about 28,000 children and youth waited for mental health services in 2020, as captured in this research Kids Can’t Wait report on youth mental-health wait lists. National tracking also finds long waits for community mental health counselling, with delays varying widely by region, based on pan-Canadian data on counselling wait times.
AI And The First Rung Of The Career Ladder
AI now plays a growing role in how young people start their working lives. Recent findings from the Stanford Digital Economy Lab shows that young career workers between 22-25 years old in AI exposed fields saw a 13% drop in employment after late 2022.
Further, according to survey results from the World Economic Forum on the global employer outlook, 40% of companies expect to cut roles where AI can handle routine tasks.
See NCFA’s earlier piece on AI’s hidden costs for junior workers that shows how automation reduces coaching, early learning and long term stability even when it speeds up short term tasks. For Gen Z this means AI can help them work faster while also reducing the number of early roles that once offered training, support and a safe place to learn.
Where Protection Often Falls Short
In mental health, AI comforts but still misses red flags.
In everyday digital life, governance and content policies struggle to match the pace of rapid model and features updates.
See: Grok Leak Triggers Global AI Privacy Alarm
In early careers, automation reduces entry pathways and increases pressure on young workers to master new tools without adequate support.
These challenges do not create a single fix. They show how youth exposure grows faster than the systems meant to guide and protect them.
How Fintech Firms Can Respond Without Slowing Innovation
Fintech companies and their apps and models are at the center of these changes. Young customers rely on savings apps, credit tools, digital wallets and investment platforms that now embed automated insights and AI guidance. Fintech teams can use design principles that support innovation while adding real protections for young users.
Clear explanations help young customers understand how AI insights form and what limits apply.
Human review in unusual or high stakes interactions prevents automated decisions from pushing users toward unsafe financial choices.
Independent testing of models that guide credit thresholds, advice or spending prompts reveals bias or unrealistic patterns.
These measures strengthen reliability without slowing responsible development and help firms serve younger users with confidence.
Why It Matters
As the Raine case continues through the courts. Judges will weigh logs, warnings and design choices. Whatever the outcome, the broader reality is already visible. Youth live in a world where AI companions, homework helpers, work tools and financial apps appear on the same devices. Research shows that these tools offer support while also creating gaps that health, education and employment systems have not yet addressed.
Read: Three Generations Discuss AI Concerns, Hopes, and the Future
The real question of protection is not whether AI should disappear from youth life. It is how schools, mental health services, employers, regulators and product teams work together so young people can use AI to build stronger futures instead of carrying its risks alone.
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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