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
Why BNPL Swedish giant Klarna has sights set on Canada
FP | | May 17, 2022
Swedish fintech leader Klarna Bank is planning to establish a product development and tech hub in Toronto as it looks to grow its “buy now, pay later” model in the increasingly competitive North American market. BNPL is already starting to take off in Canada and BNPL payments are projected to grow 63.5 per cent and reach $5.9 billion in 2022 (Source: Research and Markets).
Now, with more than 400,000 merchants on board and US$1.6 billion in net operating income, founder and chief executive officer Sebastian Siemiatkowski is looking to catch a ride on Toronto’s thriving tech scene and take advantage of the country’s shift into open banking.
See: Welcome to the third largest tech-hub in North America
Why Canada?
- Klarna initially set its sights on Canada in February, when it brought its “Pay in 4” (split payment) service to Canada in February and partnered with retailers such as Harry Rosen, Mejuri and Frank And Oak as well as hundreds of others.
- Building a tech hub with up to 500 people would give the company a startup feel as well as a foothold in the North American market.
- Being part of an ecosystem that helped startups such as Shopify Inc. thrive is another reason Klarna picked Toronto.
- Canada’s shift to open banking is one reason Siemiatkowski is optimistic about the opportunity here. The regulatory framework, due to launch next year, would give consumers the ability to share their banking data with other financial institutions or move their information between institutions.
“We compared it with all of U.S. and Canada and so forth and concluded that Toronto had a fantastic amount of talent, fantastic positioning, (and) a very business-friendly government,” he said.
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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Economist Webinar (May 24): Bank or Pay? Digital Competition in the Fintech Ecosystem
Economist | May 9, 2022
Covid-19 has been a trigger for digital acceleration in almost every industry. Technology has forced financial institutions—under mounting pressure from new competitors such as fintechs and large tech companies—to make or propose regulatory, operational and customer-centric changes. Bankers echoed that sentiment in a recent EIU survey, where they were most likely to name payment platforms such as PayPal, Alipay and Apple Pay as the non-traditional industry entrants that represented their biggest competition.
See: Economist Spotlight: Imagining a world without banks
While tech firms have clearly eroded some of banking’s traditional functions, what’s less clear is how bankers plan to respond. Are they altering offers, entering new lines of business, buying technology, lobbying regulators, partnering with potential competitors, or innovating their own technology? How fierce is the competition for talent between banks and tech giants?
On-line Webinar: (free registration)
Tuesday, May 24 at 10:00AM EDT
Questions we will address include:
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What challenges and obstacles do they face in innovating their systems and strategies?
- Does tech play a bigger role now for bank leadership or are they seeing tech more as a competitor than a partner in the post-covid world?
- What are the main areas where the banking industry is most concerned by digital competition?
- How can well-established financial institutions rethink their products and services and collaborate across the industry ecosystem to improve the customer experience?
See: 4 Digital Transformation Lessons that Banks Need to Learn from Covid-19
- What are the implications for the structure of the banking market?
- What factors should be considered when banks choose between buying or collaborating with fintechs? And what can financial institutions learn from fintechs and neobanks?
Register for this webinar --> 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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NEO Financial Surpasses 1 Million Customers, Closes CA$185M Series C at Unicorn Valuation
TechCrunch | Mary Ann Azevedo | May 5, 2022
Source: NEO Financial
Canadian digital bank Neo Financial has raised $145.2 million (CAN$185 million) after surpassing the 1 million customer mark, the company announced today.
Valar Ventures led the investment, which brings Neo’s total funding to $234.7 million (CAN $299 million) since its 2019 inception, and values the company at over $784.8 million. In Canadian dollars, this means that Neo has achieved unicorn status, or a valuation of over $1 billion. Also participating in the round were Tribe Capital, Altos Ventures, Blank Ventures, Gaingels, Maple VC and Knollwood Advisory.
See: Neo Financial Launches a Wealth Management Platform for Retail Investors – Neo Invest
Neo Financial offers a variety of products to its customers, including cash-back rewards and savings. It expanded into investing in April with a private wealth management product, and plans a mortgage offering for later this year as part of its effort to be a “one-stop shop for all financial services for Canadians and retailers.”
Indeed, the company says that its partnerships, which include Hudson’s Bay, The Home Depot, H&R Block, Boston Pizza, Goodfood and 7,000 other local and national retailers, have accelerated in the past year, “as retailers search for ways to modernize their loyalty programs and financial service offerings.”
Neo has also expanded beyond just offering personalized loyalty card programs and into launching co-branded card programs, “buy now, pay later” options (BNPL), point of sale installment financing and subscription-based loyalty services for both online and brick and mortar retailers.
See: Fintech Card Space is Growing: Brim Financial, Float, Caary Capital, Jeeves, Neo Financial
In an interview with TechCrunch, Neo co-founder and CEO Andrew Chau shared:
[him] and his co-founders Jeff Adamson, Chris Simair and Kris Read started Neo to challenge the Big Five banks that own some 90% of the country’s market share. Notably, it only went live in January of 2021, so it has managed to surpass 1 million customers in a relatively short period of time. We’ve built all our financial infrastructure, our banking core, from scratch. And that really provided us with this advantage to quickly innovate and drive a ton of product velocity.
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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Billionaire Plaid co-founder launches new nationally chartered banking venture
CoverageR | Avi Ben-Hutta | Apr 21, 2022
Today, after three years of building, Plaid's co-founder and former-CTO/President, William Hockey, announces Column, a nationally chartered bank “built from the ground up” for developers and anyone creating new financial products.
“I’ve spent time with (literally) thousands of companies building in financial services and it is painfully obvious that the biggest bottleneck to their growth and innovation is the underlying banks they rely on. Financial services needs to be consumer, developer and internet first; however, in order to do this it needs a new backbone.” – William Hockey.
Column describes itself as the developer infrastructure bank, helping new financial companies avoid “expensive middleware providers” that power legacy sponsor banks. The company says that it built its own core, ledger, and data model to power unique use cases at any scale. Column offers a range of products including bank accounts, ACH, card programs, and lending. According to its site, it powers startups such as Brex, Plaid, Point, and others.
See: Why Apple Acquired An ‘Open Banking’ Fintech
To get their hands on a bank charter, Column bought Northern California National Bank, a community bank with one physical branch in Chico, California for approximately $50 million.
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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Lending Loop Launches ‘Loop Card’ for Small Business Cross-border Transactions
Betakit | | Apr 21, 2022
Lending Loop has launched Loop to provide a wider range of financial services for e-commerce businesses. The company’s first product is a corporate card specifically for cross-border transactions. The card allows companies to purchase in multiple currencies without fees. It also provides an extended repayment grace period, and credit limits based on sales rather than personal assets, which is often the case when entrepreneurs look to access corporate cards through banks.
In pivoting from lending to a broader financial services play, Loop has entered an increasingly competitive market. In the United States, well-capitalized players like Brex, Ramp, and Jeeves have created corporate cards tailored to startups. And in Canada where the market is still fairly bare, up and comer Float has attracted more than 1,000 customers in the last year alone.
See: Fintech Card Space is Growing: Brim Financial, Float, Caary Capital, Jeeves, Neo Financial
However, Pastoll is adamant that Loop’s product is different from the others, specifically targeting Canadian-based e-commerce businesses that are doing business internationally.
“Our product is specifically built for this customer segment that is doing business cross border,” said Pastoll. “And we’re understanding the two key things: working capital and needing to move money seamlessly and cost-effectively around the world. Those are like core tenants that are important to e-commerce businesses.”
Businesses can spend and make payments in CAD, USD, GBP and EUR currencies without foreign exchange rate conversions and fees. The Loop Card also provides 55 days of interest-free spending, which the startup argues is the longest interest-free period in the industry. For businesses involved in freight shipping from canada to us, such features can be particularly beneficial in managing cross-border transactions efficiently.
See: Fintech Fridays EP46: Making Business Borderless: International Payments and Partnerships
“The reason we’re offering that value prop is because we listened to e-commerce founders and heard, ‘I need the ability to basically push my expenses down the road so I can grow my business,’” said Pastoll.
Continue to the full article --> here
View the Lending Loop press release --> 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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Neo Financial Launches a Wealth Management Platform for Retail Investors – Neo Invest
NEO Financial | Release | Apr 6, 2022
WINNIPEG, Manitoba & CALGARY, Alberta--(BUSINESS WIRE)--Neo Financial announced today that they are expanding their product line from spending, savings, and rewards, to reimagining investing with the addition of Neo Invest. Neo Invest will offer Canadians the first fully digital, actively managed investment experience that provides access to sophisticated investment solutions that the average retail investor would not typically have access to.
With many Canadians reported to not have enough savings to live comfortably throughout their retirement, creating opportunities for individuals to grow their wealth that are simple and accessible has become increasingly desirable. Neo Invest provides access to private wealth management, starting with as little as a $1 investment.
See: Tink Survey Report 2021: Open banking spending, investments and use cases
Banks and wealth management services in Canada often require individuals to have a net worth greater than $1M for these services, even though in 2019 the median annual income of Canadians was $37,800.
“We’re launching Neo Invest to democratize investing for all Canadians with a product that is simple to use and provides access to sophisticated investment solutions that most wealth managers don’t offer,” says Andrew Chau, Co-Founder and CEO of Neo Financial. “Historically, Canadians only have the option to invest through antiquated big bank products like mutual funds with high and hidden fees, online robo advisors offering basic products that only match the market and its volatility, and expensive private wealth managers that are not accessible to the average investor. With Neo Invest, we’re unlocking better investment opportunities and making investing possible for everyone.”
See: Fintech Card Space is Growing: Brim Financial, Float, Caary Capital, Jeeves, Neo Financial
Through Neo Invests partnership with OneVest, customers will get access to:
- Actively managed and institutional-style portfolios, managed by professional money managers that take advantage of changing market conditions with the objective of better returns with lower risk
- Access to alternative investments such as cryptocurrencies, real estate, infrastructure, hedge fund-like strategies, and more
- Ability to start investing with as little as $1 and get a complete, fully diversified portfolio
- Customized portfolios that are built and managed to a user’s unique goals, timelines, and risk comfort
- Automated investing that allows users to automatically schedule investments and direct deposits from other bank accounts
Neo Invest is available through the Neo website and mobile app, and can be funded through Neo’s recently relaunched Neo Money account, an everyday account that pays 1.3%* interest, or through direct deposit from another financial institution.
View the original release --> 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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FDATA and Paytechs: Canadian Consumer and Small Business Attitudes Towards Financial Services and Open Banking
FDATA NA and Paytechs of Canada | Steve Boms and Alex Vronces | Apr 4, 2022
April 4, 2022, Toronto and Washington, DC: More than half of Canadians feel stress when interacting with Canada’s financial services sector and believe they would benefit from increased competition and transparency in the financial services market, according to a landmark survey commissioned by FDATA North America and Paytechs of Canada. The findings indicate this is especially true among women, young people, and new Canadians. Among the biggest sources of dissatisfaction are high fees and a lack of choice.
See: New Mastercard Study: Majority of Canadian Consumers Embrace Open Banking
The findings are derived from two surveys conducted by Pollara Strategic Insights. One was of a randomly-selected sample of 2,001 Canadians 18 years of age or older. The other was of a randomly-selected sample of 600 Canadian small business owners. In each, respondents were asked about their experiences with Canada’s financial services sector.
Key Findings:
- About half of Canadians (52%) and small business owners (51%) feel stress when interacting with the financial services sector. Those who operate larger small businesses (10+ employees) are significantly more stressed (72%). Moreover, the majority (54%) of these larger small business owners feel the amount of time they spend dealing with the financial services sector is getting in the way of them actually running and growing their business, twice the overall level among small business owners (26%). Immigrant small business owners are more likely to be stressed by their interactions with the sector.
- Over two-thirds of Canadians believe more competition in the financial services sector would lead to a greater choice in products (70%) and lower financial services fees (67%). Moreover, small business owners are over four times more likely to agree than disagree with the sentiment that Canadian small businesses would benefit from increased competition in the financial services sector (64% vs. 14%).
See: Ipsos Survey: Most Canadians Say (88%) We Need More Competition
- Among specific changes tested, Canadians are most likely to feel they would personally benefit from easier ways to “shop around” to get the best possible rate (75% would benefit), easier ways to transfer money quickly and securely (73%), and tools that help make personalized investment decisions (69%).
- Among specific changes tested, small business owners are most likely to feel they would benefit from easier ways to “shop around” to get the best possible rate (73% would benefit), better ways to transfer funds between different accounts (68%), and alternatives to credit cards with lower interchange fees for merchants (62%).
- There is widespread agreement among the users of Non-Bank FinTech Apps that they are easy to use (91%), have lower fees (82%), and help save money (73%).
Continue to the original release --> here
Download the 29 page PDF survey results --> 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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