Rojin Nair, Advisor
June 1st, 2021
At Incyub8 Inc, Rojin is focusing on nurturing and guiding various national and international start-[...]
Category Archives: Digital, NEO and Open Banking
Digital Identity Should Be A Big Business For Banks
Forbes | | Sep 16, 2021
I got an e-mail to remind me to pay my credit card bill, so I went to log in to pay it. The browser filled in my username, I entered the missing digits from my PIN and I opened 1Password to get the password and typed it in, but it was rejected.
I thought maybe I typed it wrong, so I typed it again. Nope. So I clicked on “lost password” and got taken to another page where I had to enter all sorts of personal details, including my credit limit. Catch 22. I need the credit limit to reset the password but I don’t know what my credit limit is without the password.
I give up on the web and open the app on the phone. It lets me log in without having to remember a password, so I select pay. My credit card provider likes a heritage approach to payments, so instead of an xPay option it presents me with a web screen from the 1990s and I have to get out my debit card and type in the details.
See: Top 7 Steps for Preventing Loan Application Fraud
I then get redirected to my bank app and I have to enter my PIN number, OK the transaction, enter my PIN number again (I don’t know why) and then get a message saying that the transaction has been declined.
Oh well. That’s 2021 for you.
What should have happened, of course, is that I go to my credit card provider, enter my username, authenticate the log in from my bank app using my fingerprint. Then I select pay, approve the transaction from my bank app and go about my business.
Change. Yes.
There has been a change in the environment around digital identity over the past year. The coronavirus catastrophe has required many individuals, companies and organisations, who never had to do business online before, to shift to the new normal in double-quick time. This has in turn meant that the ability to create digital identities, to bind those identities to real-world legal entities and to use those digital identities to support online persona with the necessary collection of credentials to enable online transactions has become central to business and government. There has also been a change of attitude toward the business of identity and the perception of digital identity as a fundamental rather than as a “nice to have”.
See: Fintech & Cybersecurity: Key Risks and Solutions
Now, however, while we may be no nearer calculating the costs of having a digital identity infrastructure we now have some very accurate figures for the costs of not having a digital identity infrastructure. This is because the escalation of fraud through the pandemic has been staggering.
Why Banks?
Why do I single out the banking industry? Well, in the past two years, 37% of American consumers have been victims of application fraud and slightly more have experienced account takeovers. Since financial institutions are on the front line, surely we should look to them for some co-ordinated action to bring the problem back under control? Where is the “bank identity”? The “financial services passport”? The “money monicker” or whatever we choose to label it?
Many countries already have some form of bank ID. Norway, for example, where the pandemic experience was utterly different from that of the USA or the UK. In Norway, the Ministry of Finance and stakeholders delivered the SME loan guarantee scheme within three weeks and the first loan was granted and on account one hour after the scheme was authorised. The pandemic compensation scheme was similarly developed within three weeks. They were able to do this because they decided to create wholly digital schemes to process applications and deliver automated payments.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada For more information about FFCON21: BREAKING BARRIERS, on-demand videos and ways to participate |
Another global tech giant, Stripe, is opening an office in Toronto and hiring
Blog TO | Lauren O'Neil | Sep 28, 2021
One of the most highly-valued startups in the world just announced a "major expansion of its presence into Canada," joining the likes of Google, Amazon, Netflix, Reddit, TikTok, DoorDash, Uber, Pinterest, Wayfair and dozens of other tech giants in opening a downtown Toronto office.
Stripe announced on Tuesday that it expects to sign a lease for office space in downtown Toronto sometime over the next few months, though a location has yet to be revealed.
See: Stripe commits $8M to six new carbon removal companies
The goal is to tap into the city's vast pool of local engineering, product and sales talent, as well as to bring more services to its Canadian customers, of which there are many.
"Stripe is hiring for roles in engineering, product, and sales in Toronto. This team complements Stripe's increasingly distributed engineering workforce — including in Dublin and its London fintech office."
While not as much of a household name as startups-turned-tech giants like Uber or TikTok, Stripe is an incredibly fast-growing company with backing from the likes of heavyweight venture capitalists including Elon Musk and Peter Thiel.
See: Former Governor of the BOE, Mark Carney, joins Stripe board
The platform, which has dual headquarters in San Francisco and Dublin, describes itself as a "technology company that builds economic infrastructure for the internet," effectively makes payment processing software for e-commerce.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada For more information about FFCON21: BREAKING BARRIERS, on-demand videos and ways to participate |
[Event, Oct 7, 2021]: Rising to the Challenge of New Global Realities
PPF | Sep 28, 2021
![Rising to the Challenge of New Global Realities 1 - [Event, Oct 7, 2021]: Rising to the Challenge of New Global Realities](https://1hvltd3evinm3tpd022grx7s-wpengine.netdna-ssl.com/wp-content/uploads/2021/09/Rising-to-the-Challenge-of-New-Global-Realities-1.jpg "[Event, Oct 7, 2021]: Rising to the Challenge of New Global Realities")
Forging a new path for sustainable and inclusive prosperity in Canada
The reopening of the economy and the election of a new Parliament provides an opportunity for the country to address a series of long-standing and more recent societal challenges with the same determination as the pandemic itself. The following critical issues leave Canada no choice but to forge new routes to an improved future:
- Accelerating technological change
- The shifting nature of work
- Rising demands for equality and inclusion
- Disrupted immigration patterns
- Climate-induced energy transformation
- Emerging international rivalries
To this end, a working group of 12 members of Canada’s Senate undertook a study in late 2020 to examine where our nation should turn in developing the next wave of prosperity and how to ensure this success is shared by all. The Senate Prosperity Action Group heard presentations from more than 40 experts from across the economic and social spectrum, which will culminate in a report with recommended policy actions to be released in the weeks ahead.
The Public Policy Forum and Senate Speaker George J. Furey invite you to a special event featuring the Senate Prosperity Action Group and some of the most respected Canadian political leaders of the past half-century including John Manley, former Deputy Prime Minister of Canada, Frances Donald, Chief Economist, Manulife Financial, Tabatha Bull, President & CEO, Canadian Council for Aboriginal Business, Monique Leroux, Chair, Industry Strategy Council and Chris Ragan, Professor, McGill University and former Chair, Eco-Fiscal Commission. Our panelists will unpack the report and discuss how Canadian society can work together to achieve sustainable and inclusive prosperity. We also look forward to welcoming the Rt. Hon. Joe Clark and the Hon. Christy Clark for a fireside chat on Building Consensus which will be moderated by PPF President & CEO, Edward Greenspon.
Event:
Thursday October 7, 2021
1:00 p.m. - 4:00 p.m.
Register for this event --> here
Download the 66 page PDF report --> here
Related Report links:
A New North Star: Canadian Competitiveness in an Intangibles Economy
How to Build Canada’s Competitiveness Amidst the Rise of an Intangibles Economy and Greater Geopolitical Complexity
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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Support NCFA by Following us on Twitter!Follow @NCFACanada For more information about FFCON21: BREAKING BARRIERS, on-demand videos and ways to participate |
TD Bank enters data access agreement with Envestnet Yodlee
Open Banking Expo | Ellie Duncan | Sep 22, 2021
Toronto-headquartered TD Bank and California-based Envestnet|Yodlee have signed a North American data access agreement that means the bank’s customers will be able to connect their financial information to the more than 1,400 third-party applications powered by the Envestnet|Yodlee financial data aggregation platform.
Under the agreement, should a customer request it, TD Bank will transfer the individual’s financial data to Envestnet | Yodlee through APIs, removing the need to share their banking login ID or password.
See: Lack of open banking framework forcing Canadian consumers to choose between convenience and security, TD exec says
“We know that our customers are interacting with us through digital channels more than ever before and we are focused on helping meet their needs however they choose to bank,” Franklin Garrigues, VP, digital channels at TD added.
TD Bank has become the 13th US bank to sign such a data access agreement with Envestnet|Yodlee.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
Support NCFA by Following us on Twitter!Follow @NCFACanada For more information about FFCON21: BREAKING BARRIERS, on-demand videos and ways to participate |
Canada’s Library of Parliament Report: A Comparison of Open Banking Recommendations
Senator Colin Deacon | Sep 27, 2021
On June 19th, 2019, the Senate Standing Committee on Banking, Trade and Commerce (Senate Banking Committee) released the report, Open Banking: What it Means for You, Following the release of this report, Senators Colin Deacon and Howard Wetston continued to invest a considerable amount of time advancing the issue of open banking. Their ongoing efforts reflect the Senate Banking Committee’s unanimous view that Canada should urgently develop and implement an open banking framework.
More than two years later, on August 4th, 2021, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, released the Advisory Committee on Open Banking (Advisory Committee)’s April 2021 Final Report.
See: FFCON21 On-Demand with Seanator Colin Deacon: Inclusive Banking and Affordable Credit
Following a request from Senator Wetston, recent chair of the Senate Banking Committee, the Library of Parliament completed a side-by-side comparison between the 10 recommendations made by the Senate Banking Committee and the 34 recommendations made by the Advisory Committee.
The comparison identified that the Advisory Committee’s report contains additional, more detailed recommendations than those outlined in the Senate Banking Committee’s report, but that they did not differ in terms of direction or intent. It is reasonable to conclude that additional insight was garnered due to the Advisory Committee’s second round of consultations, the rapidly accelerating global experience in open banking, and the increasing attention to the topic in Canada.
Continue to the full article --> here
Download the 9 page PDF report: 'A Comparison of Open Banking Recommendations' --> 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
| | |
Support NCFA by Following us on Twitter!Follow @NCFACanada For more information about FFCON21: BREAKING BARRIERS, on-demand videos and ways to participate |
Securing Invoice Factoring As A Small-Business Owner, Expectations vs Reality
Forbes | | Sep 10, 2021
Payson Johnston is the CEO and Co-Founder of invoice finance marketplace Crowdz, helping SMEs get paid faster and access working capital.
For most enterprising Americans, running a small business isn’t a walk in the park, especially during a pandemic. With the fundamentals of how we conduct business changing seemingly every week, hardworking SMEs have adapted with new strategies to stay afloat, from bodegas and family restaurants introducing online shopping to dance studios offering remote classes.
With banks tightening lending criteria and government stimulus incentives requiring mountains of paperwork, SME owners have looked to alternative financing methods to fuel their most critical growth cycles and reach new milestones, from expanding product lines to growing their team.
See: ASC and FCAA adopt new prospectus exemption to support small business capital raising
Alternative financing options like invoice finance (or receivables finance) have emerged as a boon throughout the pandemic, despite existing in various forms, similar to factoring, for decades. Lower barriers to entry and reduced overheads have led to the proliferation of easy-access options and platforms, meaning private funding for communities is increasing as more investors and organizations realize their bottom line can support communities and drive returns.
As a leader in this space, I’ve witnessed some common misconceptions, or expectations, that make it unclear how invoice financing offers an alternative option to secure financing. Invoice financing isn’t new, but it has become more popular, particularly during the pandemic, because this method generally allows businesses to exchange unpaid invoices for instant cash, which is then repaid when the original invoice is settled by the customer.
Expectation: I need a high credit score or an established business to access finance.
Reality: So what happens if your business is young, hasn’t previously needed credit, or is deemed “riskier” by discriminatory lenders? Though there are many plausible reasons a responsible business may have a credit score in its infancy, it automatically rules out their lending options, right?
Read: The Intersection of Small Business, Tech and Our Financial Ecosystem is More Important Than Ever
Not quite. Invoice financing fast-tracks money you’re already owed, so the risk factor is reduced for the funder and makes highly leveraged credit lines redundant.
Some providers are also developing new risk assessment models to improve equitable access to finance. Businesses with timely repayment habits or creating positive impacts in their communities are incentivized with better rates. Further, initiatives like the Facebook Invoice Fast Track program specifically focus on improving access to finance for diverse and minority-owned businesses with the commitment of buying $100 million in outstanding invoices.
Expectation: Invoice finance is the last resort for failing companies.
Reality: Alternative finance providers have historically been seen as the final hope for businesses with nowhere else to turn other than high-interest, non-bank providers to bail them out. But the tables have turned. With the proliferation of fintech disruptors and the contracting risk appetite of banks, alternative finance options have become a tool for companies who need access to instant and reliable sources of working capital.
Within five years, 45% of businesses shutter, and for startups, this rate is worse, with over 90 percent eventually biting the dust. A study from U.S. Bank revealed for 82%, the biggest reason for failure is cash flow mismanagement.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
Support NCFA by Following us on Twitter!Follow @NCFACanada For more information about FFCON21: BREAKING BARRIERS, on-demand videos and ways to participate |
On the Brink Podcast: George Selgin of the Cato Institute on Stablecoins, Bitcoin and Free Banking
On the Brink Podcast | Aug 2, 2021
George Selgin, director of the Center of Monetary Alternatives at the Cato Institute joins the show to discuss Bitcoin, Free Banking, and stablecoins. In this episode:
- Why George refers to Bitcoin as a synthetic commodity money
- Why George was excited by the possibility for synthetic commodity money
- What conditions would have to hold for Bitcoin to be considered money
- Why money is a spectrum rather than binary
- Are stablecoins prone to bank runs?
- Is Tether’s melange of underlying collateral sufficient?
- How should stablecoins be regulated?
- Why are regulators looking into stablecoins today?
See:
FCA Chair Charles Randall Discusses Crypto, Stablecoins and Digital Asset Regulation
More regulation coming: SEC Chairman signals stablecoins and other tokens could fall under its rules on security-based swaps
Minister Freeland releases final report with 34 recommendations on Open Banking from the Advisory committee
- Comparing stablecoins to Money Market Mutual Funds
- Why money market funds broke the buck in 08
- Are stablecoins as systemic as money market funds?
- George’s objections to Gorton and Zhang’s paper on free banking and stablecoins
- George’s definition of free banking
- Was the 1830s-60s period in the U.S. a period of genuine free banking?
- The actual causes of bank failures in the pre-Civil War period
- Why ‘unit banking’ was so fragile
- What lessons can be taken from Canada’s experience with free banking in that era
- Why the history of Free Banking is a red herring in the stablecoin debate
- George’s recommendations for a primer on free banking
- George’s reflections on Hal Finney’s reference to his work
- Why bank failures are often the consequence of regulation
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
| | |
Support NCFA by Following us on Twitter!Follow @NCFACanada For more information about FFCON21: BREAKING BARRIERS, on-demand videos and ways to participate |
