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Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Digital, NEO, Open Banking, Open Finance
Empowering the Next Iteration of Consumer Finance
Medium, JC Bahr-de Stefano | Mar 31, 2023
Building the next decade of consumer finance
- Last week in Las Vegas, I had the great pleasure of moderating a panel at Fintech Meetup re: building the next decade of consumer finance by leveraging real-time data and cash flow forecasting. I wanted to share some of the key insights shared during the session by our amazing panelists, Jose Bethancourt (Co-Founder of Method Financial), Ema Rouf (Co-Founder of Pave.dev), and Zane Salim (Co-Founder of Atlas)!
See: CFPB Issues a Request For Information on “Data brokers”
- 1/ Alternative data augments FICO across the entire credit spectrum — this is about FICO+ NOT replacing FICO.
- The problem of credit invisibility in the US is growing, with an estimated 28 million adult Americans credit invisible and 21 million unscorable. To make decisions about these consumers and offer them financial services and products, alternative data, such as income and employment, can be used. This data can also help lenders make better risk-weighted decisions for many segments of users, not just credit invisible ones, and is particularly important during periods of economic stress.
- 2/ Real time data powers better products and outcomes by enabling greater access and improving the quality of risk management.
- Credit bureaus can take up to 45 days to report data, so lenders may not have the most up-to-date information on a borrower's behavior. Atlas, a payroll-powered credit card, uses real-time data to monitor users' financial health and adjust credit limits, allowing for better risk management and loss prevention.
- 3/ The movement to make alternative data mainstream has to happen outside of the credit bureaus.
- Credit reports do not provide a complete view of a consumer's debt obligations as there is a lot of data that is not furnished to the credit bureaus, including most BNPL loans. However, companies like Method collect data from over 60k institutions to provide lenders with a more comprehensive view of a person's debt obligations, combining data from credit bureaus with financial institutions' core banking systems.
See: Canada’s Open Banking Journey: Interview with Abe Karar, Chief Product Officer, Fintech Galaxy
- 4/ Recent innovation in infrastructure has made this data far more accessible than it has been in the past.
- Recent advancements in infrastructure and tools have made it easier to access and enrich the data. Companies such as Method and Pave are providing infrastructure that helps fintechs and banks adopt and use this data, leading to accelerated adoption.
- 5/ Mature lenders don’t want scores, they want raw data or attributes.
- Understanding the data is crucial for them to explain it to originating banks or capital providers, and the use of attribute generation can speed up model development. Pave is an example of a company offering transaction cleaning, enrichment, and their own attributes toolbox for lenders to use in their proprietary models.
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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FinTech Executives Disappointed with Budget 2023’s Lack of Open Banking Update, Raising Doubts on Delivery Timeline
Betakit | | Mar 29, 2023
Image: FFCON21 Panel on consumer credit
Working groups resume April 14th, but open banking lead departs in September
- Canadian FinTech CEO Andrew Graham is tired of waiting for open banking to become a reality in Canada. He’s not alone. More than half a year after Borrowell launched an offering that allows Canadians to use their rent payments to build their credit score, Graham said it has seen significant challenges — ones that a formalized open banking system could resolve.
- Borrowell’s Rent Advantage program, announced in July 2022, allows users to report their monthly rent payments, using data from their bank accounts, to Equifax Canada, the country’s largest consumer credit bureau. Without a formal open banking system in place to dictate a standard API—a secure way for FinTech startups and other third parties to access users’ financial data—Borrowell has had to rely instead on screen scraping.
- With one large bank, which Graham declined to name, the company is seeing a 75 percent failure rate. And over time, he said, using screen scraping for bank account connections tends to stop working: more than 40 percent of the company’s Rent Advantage users have to reconnect their account each month.
See: FFCON21 Panel: Inclusive Banking and Affordable Credit
- Late: But despite the open banking advisory committee’s call for the federal government to move aggressively to implement the first phase of the system by January 2023, and the Liberal Party’s 2021 election promise to implement a made-in-Canada model “no later than the beginning of 2023,” the system remains delayed. The federal budget, tabled yesterday, didn’t include a mention of the future system.
- A delayed timeline only underscores Tachjian’s 18-month secondment from PwC, which is set to end in September. The finance department confirmed to BetaKit in September 2022 that Tachjian plans to return to the private sector at the end of his term.
Fintech Executive under Chatham house rule at Northwind event:
“This is a political will issue in my view. … If open banking was a real priority, we would already have it,” the executive said. “January 2023 was the target in the advisory committee report. But ultimately these are not things the Minister of Finance seems to really prioritize.”
See: NCFA Open Banking Future Outlook with Senator Colin Deacon and Mahi Sall
Finance Canada says:
Tachjian’s “focus continues to be on the work required to support the government in its commitment to presenting a read-only model of open banking in 2023.” The official said open banking working groups — which have focused on accreditation for participants, privacy, liability, and security standards for the system — will resume meeting on April 14.
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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Digital Bank, WealthONE, Fined by FINTRAC
Investment Executive | James Langton | March 6, 2023
WealthONE paid $676,500 penalty amid compliance lapses
- Toronto-based digital bank WealthOne Bank of Canada has been sanctioned for compliance violations by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
- The federal agency announced that it imposed a $676,500 monetary penalty on the bank after finding various compliance shortcomings, including failing to develop certain policies, record-keeping failures and failing to submit suspicion transaction reports.
- In a release, FINTRAC said that the penalty has been paid, and noted that the violations aren’t related to money laundering or terrorist financing offences.
- WealthONE said that the deficiencies were uncovered in a routine compliance exam in June last year.
View WealthONE's response to FINTRAC --> here
Paul Leonard, president and CEO of WealthONE:
The bank works closely with regulators and has an ongoing program for enhancing and strengthening our compliance programs. Any issues identified are immediately addressed, including those identified by FINTRAC. To be clear, this has nothing to do with money laundering and any allegation that the bank, or anyone who works here, may be involved in money laundering is completely unfounded.
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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NCFA’s Annual Flagship Fintech and Funding Conference and Expo to Host Immersive 5 Week Hybrid Program
IBN Media Partner Release | March 8, 2023
TORONTO, March 07, 2023 (GLOBE NEWSWIRE) -- via CryptoCurrencyWire -- The National Crowdfunding & Fintech Association (“NCFA”), a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members across Canada, announced that it will host the 8th Annual Fintech & Financing Conference and Expo (“FFCON23: REGEN”) in a hybrid format every Tuesday afternoon from March 14 to April 4, 2023.
FFCON23 WEEK1: March 14
Expert Digital Finance Innovation Speakers
All Speakers | Program | Pitching | Partners | Tickets
The hybrid conference will conclude with an in-person event on May 31st, 2023, in the bustling city of Toronto, which offers an ideal location as a leading hub for disruptive technologies and financial innovation, and is well-known for its thriving startups and highly educated workforce. The remaining sessions will be conducted in a friendly, business-oriented and cybersecure digital environment.
Now running in its eighth year, FFCON23: REGEN brings together marquee market players, established thought leaders and industry experts with a view to propel Canadian fintech businesses forward, explore emerging opportunities, exchange strategies on negotiating headwinds and to strengthen the national and cross-border fintech ecosystem.
The event offers a once in a year opportunity that can be truly transformative for businesses by facilitating meaningful conversations with experts from fintech, open banking, blockchain, digital assets, web3, metaverse, decentralized finance, virtual commerce, capital markets innovation, payments, wealthtech, regtech, crypto, emerging tech and alternative finance sectors. FFCON23: REGEN will leverage deep domain know-how in regenerative finance and thinking to benefit investors, business owners and broader stakeholders.
Vote: Checkout and vote for your favourite FFCON Fintech Draft Shortlist Companies
Attendees will be immersed in the accelerating fintech landscape over once-a-week but deeply interconnected sessions in March and April 2023. Budding entrepreneurs, investors, financial institutions, government officials and major financial stakeholders will engage in lively debates and insightful knowledge-exchange activities to drive the ideas of the future and shape deeper collaboration between industry peers. Sessions will delve deep into a wide spectrum of the hottest multidisciplinary themes, including fintech, embedded finance, AI/ML, ReFi, DeFi, GreenFi, GameFi, crypto, DAOs, alternative assets and funding sources, lending, cyber security, decentralization and privacy, digital identity and payments.
As a tech and channel agnostic event, attendees will have the rare opportunity to interact with the who’s who of Canadian fintech and funding all under one umbrella, and build a robust educational foundation by learning directly from pioneers and industry veterans across the latest financial technologies, investment approaches, emerging regulations and best practices.
At the heart of proceedings, the event will feature a packed-roster of over 50 renowned speakers such as James Wallace, Chairman, DIGTL; Alex Tapscott, Co-founder, Author, VC, Blockchain Research Institute; King Leung, Head of Fintech, Invest Hong Kong; Sharon Karuga Kinyanjui, EMEA Director, Europe, Middle East & Africa, WorldRemit; Pam Draper, President & CEO, Bitvo; and Shidan Gouran, Executive Chairman, Bluesphere Ventures.
Highly engaging sessions will be presented through a variety of precisely catered formats, including open discussions, deep dives, inspiring keynotes, expert interviews, intimate fireside chats, wide-ranging debates, and dedicated breakout streams.
With each format optimized for business efficiency and durable rapport-building, attendees will be privy to key insights and real-time strategies to strengthen the intrinsic value of their businesses, absorb lessons from innovative ventures and participate in prime networking events with myriad stakeholders. This forum will also facilitate the launching and scaling-up of fintechs, as well as exploration of strategies to future-proof businesses in turbulent economic conditions.
See: Canada’s Open Banking Journey: Taking inspiration from Australia’s Consumer Data Right with Kate O’Rourke, Treasury’s First Assistant Secretary for the CDR
Inspired by sports league drafts, the annual FFCON Fintech Draft will provide a unique platform for growth-oriented fintech startups and scaleups to be reviewed by expert scouts, while offering senior management with invaluable exposure to investors, media, prospective buyers and partners, as well as the chance to win exciting prizes.
Via tailored e-booths, participating companies will also showcase state-of-the-art product and service innovations to an audience of highly connected and industry-savvy attendees. The event offers a great low-cost exhibitor opportunity to drive recognition, connect with potential investors, collaborate with prospective mentors or even identify that next key employee who will prove pivotal to growth.
FFCON23: REGEN is a must-attend event that will pave the way to craft new ventures, drive growth and leave attendees inspired to take the next big step. By networking with Toronto’s foremost investors and business people, attendees will foster lasting relationships with key stakeholders and explore potential synergies to commercialize the next great fintech and funding ventures. The event series is at the cutting-edge of promoting vital industry education and high-powered networking. Each event presents limitless learning and partnership opportunities with diverse parties, including specialist investors, key influencers, well-established industry networks, exciting startup founders, leading regulatory bodies and influential economic development agencies.
To register and explore different ticket options, visit https://fintechandfunding.com/tickets/
To view the detailed agenda, visit https://fintechandfunding.com/ffcon23_program/
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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Banking-As-A-Service Is Under Fire
Forbes | Sarah Kocianski | Feb 27, 2023
Image: Unsplash/David Dvořáček
Banking-as-a-Service was a major beneficiary of the recent fintech investment boom, but as we move through 2023 it’s an area facing increasing challenges.
- BaaS In The US: is the provision of core banking services to third parties by a company holding a full banking licence. Well-known examples include Cross River Bank, The Bancorp, and Sutton Bank.
- These banks sit behind customer-facing fintechs, such as Stripe, Chime and Kabbage, and handle key operations like loan agreements and holding customer deposits. Crucially by doing the latter, they offer customer protection in the form of FDIC insurance.
- Another key point to note about the US system is that, for now, the third parties offering the services directly to customers do not have to be regulated in order to do so.
- often these companies serve non-financial companies, enabling them to “embed” finance into other propositions — Square issuing debit cards to customers is one such example, Uber offering them to drivers is another.
See: Top 10 Trends Reshaping Banking for 2023
- Regulatory scrutiny is here: Regulators present the biggest challenge for BaaS companies in the US. One, the Office of the Comptroller of the Currency (OCC), started taking a renewed interest in the fintech industry as a whole in 2022, and BaaS, or rather “fintech-bank partnerships” have been singled out for particular scrutiny.
- Last year the OCC had taken action against Blue Ridge Bank which had grown its deposit base rapidly through 2020 and 2021 by offering its services to increasing numbers of customer-facing fintechs but had failed to maintain proper governance. The parties came to an agreement, more details of which can be found here, but suffice to say, the OCC found numerous areas for improvement and Blue Ridge has a lot of work to do.
- More regulators: It’s worth noting that the OCC only has purview over nationally licenced (chartered) banks, while many BaaS providers are licenced at a state level. That said, these banks have their own federal regulators, which, while not in thrall to the OCC, are still likely to be turning an eye to such a segment that’s grown so quickly and which is responsible for such a large volume of consumer funds. The Consumer Financial Protection Board (CFPB) has also made its thoughts on BaaS known for example, having creatively found a way to bring nonbank companies into its remit back in April 2022.
- The result will likely be increased complexity and slowed growth for the segment as BaaS providers become more choosy and have to dedicate greater resources to partnership oversight. There will be fewer new customer facing brands and banks looking to BaaS as a quick way to boost deposits.
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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Chinese Retail Banks Scored 55% Net Promoter Score. Here’s What They Are Working On Next
Bain & Company | Frankie Leung, Scully Cui, and Lei Zhang | Jan 19, 2023
Image: Bain & Company
In mainland China, the retail banking industry is shifting toward quality growth over quantity.
- Retail banking is on the rebound now—but in an entirely new set of market conditions. Today’s banks are combating stronger competition, tighter compliance controls, and headwinds from volatile macroeconomic conditions.
- Bain & Company surveyed 1,800 retail banking consumers in mainland China from August to September 2022.
- Mainland customers are happy with their primary financial institutions. Net Promoter Score percentages are strong and steadily increasing. In 2022, approximately 55% of retail banking customers in mainland China said they would recommend (or “promote”) their primary bank.
See: FCA review finds evidence of growing competition in retail banking
- What Chinese customers want to take their digital banking experiences to the next level:
- Omnichannel: Mobile and online banking are the most frequently used channels among the retail banking consumers we surveyed. Consumers interact with their bank via mobile app about 15 times per quarter, which is five times more often than they visit a physical branch. Mobile banking also has the highest correlation to positive overall customer experience.
- Physical branch experience can convert customers into net promoters: Branch interactions stand out because they often occur during complex or emotionally charged episodes. Customers say they prefer in-person assistance with mortgages, wealth management, and large cash transactions—“moments of truth” that can make or break their sentiment toward the bank.
- Super app functionality: On average, customers are happy with their banks’ mobile apps, but they want more features. They want more functionality, plus access to rewards and lifestyle services. They also want mobile apps to be intuitive
- Customers want human and digital wealth management services: Digital channels are used for most wealth management interactions, but customers aren’t ready to give up human services altogether. Physical branches and customer hotlines are still essential for parts of the journey and for certain customer segments.
See: Inflection point:Seven transformative shifts in US retail banking
- How can banks become more customer-centric:
- Create segment based customer insights and propositions
- Create a seamless customer journey
- Optimize human and digital engagements
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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Top 10 Trends Reshaping Banking for 2023
Accenture | Michael Abbott | Jan 10, 2023
A combination of well-established forces and recent developments is reshaping banking.
- Overview: In the absence of that revenue stream, banks shifted their focus from the totality of customers’ financial needs to isolated products that continued to generate fees. At the same time, fintech innovators burst onto the scene, awash with cheap capital and valuing scale over financial returns. Now that positive rates have returned, the constellation of banking products is drifting into a more familiar and predictable orbit.
- Rising rates catalyze product innovation: It will come in the form of offerings similar to that of Amazon Prime.
- 2023 will see a renewed focus on branches: Without in-person interaction most banks have struggled to maintain close relationships.
- Demistifying the metaverse: Just as mobile did, the metaverse is opening a new world of possibilities. It won’t be without risk—but banks were invented to manage risk.
- Culture and Talent: Talent will make ever-increasing demands on banks’ leadership. If it isn’t given its due, it will become a burning platform.
See: Will Open Banking Launch in Canada This Year?
- Risk everywhere: As new risks emerge, banks that focus on helping customers solve their problems, rather than on collections, will outperform their peers.
- Data becomes a product: potential to transform the foundations of banking.
- From fintech disruptor to enabler: Incumbents are poised to reassert themselves as the “rightful owners of banking”—if they can find fintech-like offerings at reasonable prices.
- Green gets real and seeks common ground
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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