Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Enterprise, Scaleup
Cohere Picks Paris as New EMEA Hub For Enterprise AI
Canadian AI Growth | Sep 18, 2025
Image: Freepik
Paris Becomes Cohere's European Anchor, Challenging Enterprise AI Competitor Mistral
On September 15, 2025, Canadian Enterprise AI leader Cohere announced the official opening of a new Paris office to serve as its headquarters for Europe, the Middle East, and Africa (EMEA). The company expects to have 20 employees on the ground by the end of September and plans to double that number within a year. Roles include business and policy leads working alongside existing research, engineering, safety, and product teams.
See: Canada Invests $240M in Cohere for AI Data Centre
The expansion also introduces an incoming VP of EMEA, set to start October 1, and the appointment of Stéphanie Finck Piccin as Head of EMEA Public Policy after more than a decade of experience shaping technology policy at Salesforce.
Why France Was Chosen
Cohere’s CEO Aidan Gomez in Reuter's coverage (subscription required) described Europe as showing “renewed momentum” in AI adoption and said he was “super confident” in the strength of France’s ecosystem. He emphasized, France’s role as a centre for digital sovereignty, its supply of technical talent, business advantages, and its connection to regional markets made it the natural choice.
“Cohere is extremely well-positioned to meet the growing demand of sovereign and secure AI from businesses and governments, and we’re excited to have boots on the ground to better collaborate with our new and existing partners and customers in the region. We’re looking forward to contributing to France’s AI ecosystem and drawing from the pool of incredible local talent here as we grow.”
Infrastructure Tailwinds and Competitive Pressure
France is expanding its AI capacity through large scale infrastructure investment. In February 2025, Brookfield and Data4 announced a €20 billion program to expand AI infrastructure in France through 2030. The plan includes approx €15 billion for new data centres and the remainder for chip storage, connectivity, and renewable energy. Additional detail on the technical buildout was reported by DataCentreDynamics
See: Canada Risks Falling Behind as UK Lands AI Megadeals
While Cohere Brookfield’s investment program as a direct factor in its Paris HQ decision, but the timing and focus align. Sovereign compute and new energy-backed data centres reduce deployment risks for enterprise AI providers. By opening in Paris, Cohere positions itself close to these assets while strengthening its pitch to regulated sectors.
Cohere is in direct competition with Mistral who recently raised €1.7 billion at a valuation of €11.7 billion. Mistral has a head start as Europe’s homegrown AI unicorn and is also targeting large enterprises. Both companies target large enterprises with secure AI tools and local control of data. Mistral’s European roots give it credibility with regional buyers, while Cohere brings its Canadian foundation, global partner base, and enterprise focus into the market.
Cohere’s Paris leadership team is designed to influence policy as well as drive growth. With Finck Piccin leading public policy and a new VP of EMEA focused on partnerships, the company aims to work directly with regulators and governments overseeing AI rules. This positions Cohere to integrate secure AI systems into finance, insurance, and public services where compliance and auditability are critical.
Outlook
The key milestones will be whether Cohere meets its hiring goals, wins major European clients in banking, secures government endorsements, and forms partnerships tied to France's data sovereignty and infrastructure build out.
See: Canada’s Opportunity In Efficient Reasoning AI
If successful, the Paris hub could become a cornerstone for enterprise AI in EMEA and strengthen Canada’s position in the global AI race.
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 aa 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
 |  |  |
|---|---|---|
 |  |  |
Amazon Launches Always On Agentic AI for Sellers
Agentic AI Service | Sep 18, 2025
Image: Freepik AI
Amazon Sellers Gain Real-Time AI Support to Scale and Compete
On September 17, 2025, Amazon announced that it's adding always on agentic AI capabilities to its Seller Assistant tool. It'll first be available to U.S. sellers and then eventually roll out to other countries. Sellers will now have access to an AI partner that can monitor inventory, protect account health, handle compliance, build campaigns, adjust pricing, and generate growth strategies, all at no additional cost.
See: Amazon’s $4B Boost to Anthropic Strengthens AI Alliance
On the surface, this looks like one of the most significant advancements in how store sellers and entrepreneurs will now operate their Amazon e-commerce stores.
Proactively Supports Sales, Compliance and Growth 24/7
The previous Seller Assistant primarily answered questions but the new agentic AI capable Seller Assistant powered by Amazon Bedrock can reason, plan, and act with seller permission. It analyzes sales patterns, prepares shipment recommendations, and flags slow moving inventory before fees are charged. Sellers can ask when to send products ahead of seasonal demand and receive a full inventory plan within moments, optimized for both cost and delivery speed.
The new Seller Assistant tool continuously scans account metrics for potential issues and proactively protects the health of a seller's account. It can identify listings that might violate new regulations or highlight customer service trends that could impact performance. Sellers receive a clear explanation of risks along with options to fix them, and if approved, Seller Assistant implements the resolution before problems escalate. Verified examples in the announcement include warnings for regulated products such as pesticides where documentation is required, with step by step guidance provided.
See: Amazon and Walmart Exploring Merchant-Led Stablecoins
Seller Assistant now helps growth. It studies sales data to suggest new product categories, expansion opportunities, and seasonal promotion strategies. During peak events like Prime Day, it can build complete growth plans that coordinate promotions, inventory adjustments, and ad campaigns, leaving sellers free to focus on product innovation and customer relationships.
Expanding into new product categories can come with complicated compliance requirements. Seller Assistant now automatically checks listings for missing certifications such as UL and guides sellers through the documentation process. The tool reduces the time sellers spend on paperwork and helps them enter markets more efficiently, as a result.
AI Driven Advertising With Creative Studio
Advertising is also being transformed. Through Creative Studio, sellers can generate professional ads using conversational prompts. One seller building a Father’s Day campaign for smart bird feeders saw a 338% increase in click through rate, 89% new to brand purchases, and a 121% return on ad spend when using the AI tool to design Sponsored Video ads.
By analyzing shopping trends alongside product data, the system delivers creative options that are fast, targeted, and backed by transparent reasoning.
Risks and Responsible Use for Sellers
Despite the amazing new features and benefits, companies must remain aware of potential risks when adopting agentic AI. Sellers remain legally accountable for compliance, advertising, and customer obligations. Amazon’s tool may act with permission, but ultimate responsibility rests with the business owner.
See: Agentic AI in Banking From Pilots to Real Impact
To reduce risk exposure, sellers should follow some practical steps:
- Always review AI recommendations before approving actions
- Confirm compliance guidance with official regulatory sources and keep records of what the AI flagged and how you responded
- Review all AI generated ads to make sure claims are accurate and legally sound
- Safeguard customer and business data in line with privacy laws such as CASL, GDPR and CCPA
- Continue to monitor account health independently, train teams on when to escalate issues, and stay updated on Amazon’s terms of service
- Approach AI as support and not an immediate substitute
Outlook
Amazon Sellers have sold over $2.5 trillion or more than 60% of Amazon store sales to date. With new agentic AI capabilities, Amazon is raising the bar once again, providing startups and established brands with a proactive partner that helps them scale more efficiently. As the rollout expand globally, the AI system will only continue to get better and smarter, and more capable at keeping pace with the complexities of modern digital commerce.
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 aa 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
| | |
|---|---|---|
| | |
The Future of Web Hosting in Canada: Trends Every Business Owner Should Know
Sep 18, 2025
Image: Freepik
In today’s digital-first world, your website is often the first impression customers have of your business. Fortunately, having expertise in web design to make a website for your business. Whether you operate a local café in Ottawa or an eCommerce store serving customers nationwide, reliable web hosting is essential. But the web hosting industry is evolving quickly, and Canadian business owners need to understand where it’s headed to stay ahead.
Here are the key trends shaping the future of web hosting in Canada and what they mean for your business.
1. Cloud Hosting Becomes the Norm
Traditional shared hosting is giving way to cloud-based infrastructure, offering greater scalability and performance. With cloud hosting, resources are spread across multiple servers, reducing downtime and increasing site speed — something every Canadian business can benefit from.
- Why it matters: Faster, more reliable websites improve customer experience and boost SEO rankings.
2. Green Hosting Gains Momentum
Canada is one of the world’s leaders in sustainability, and web hosting is following the same trend. Green hosting uses renewable energy to power servers, appealing to eco-conscious businesses and customers.
- Why it matters: Adopting green hosting not only reduces your carbon footprint but also builds trust with environmentally aware consumers.
3. Security and Data Privacy Take Center Stage
With strict privacy regulations such as PIPEDA (Personal Information Protection and Electronic Documents Act), Canadian businesses must prioritize secure hosting. Expect to see enhanced encryption, DDoS protection, and built-in compliance features become standard offerings.
- Why it matters: Data breaches can harm your brand and lead to hefty fines. A secure host keeps your business protected.
4. Local Hosting for Better Performance
As Canadian internet users expect lightning-fast websites, more businesses are choosing hosts with data centers located in Canada. Local hosting reduces latency and ensures faster load times for Canadian customers.
- Why it matters: A site that loads in seconds improves customer satisfaction and increases conversions.
5. AI-Powered Hosting Management
Artificial Intelligence (AI) is making its way into hosting, helping to automate performance monitoring, detect threats in real time, and even predict resource usage.
- Why it matters: Business owners with limited technical knowledge can rely on AI-driven tools for smarter, more efficient website management.
6. Bilingual and Multilingual Support
In a country where English and French are both official languages, hosting providers are beginning to offer better support for bilingual websites. From templates to SEO tools, this feature will be essential for businesses looking to reach both language audiences.
- Why it matters: Expanding your reach to both English and French speakers can double your market potential.
7. Integrated Website Builders with Hosting
Another trend in Canada is the rise of all-in-one hosting solutions that include website building tools. Instead of relying on developers, business owners can use drag-and-drop editors and pre-designed templates to build professional websites in hours. These integrated builders make it possible to manage everything — from design to hosting — in one place.
- Why it matters: Small businesses save time, cut costs, and avoid the complexity of coding, making website creation more accessible than ever.
8. Affordable Scalability for Small Businesses
As more Canadians shop online, even small businesses need the ability to scale quickly. Future hosting packages will focus on affordable scalability, allowing owners to upgrade storage, bandwidth, or features without migrating to a new platform.
- Why it matters: You can start small and grow your online presence as your business expands.
Final Thoughts
The future of web hosting in Canada is clear: it’s faster, greener, more secure, and more business-friendly. With cloud infrastructure, sustainability, stronger privacy protections, and built-in website building tools, business owners no longer need to choose between affordability and professionalism.
See: New AI Minister Prioritizes Growth Over Rules
Your hosting provider isn’t just keeping your website online — it’s shaping how your business grows in the digital era. Staying ahead of these trends will give you a strong advantage in Canada’s rapidly evolving online market.
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 aa 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
| | |
|---|---|---|
| | |
AI Psychosis Threatens Trust in Innovation
Mental Health | Sep 17, 2025
Image: Freepik/Rawpixel.com
Rise of 'AI Psychosis' Cases in Canada, Sound Mental Health Alarm
On September 17, 2025, CBC news published a sobering story of the growing number of Canadians who have reported mental health crises linked to prolonged conversations with AI chatbots. Some are describing these cases as a type of artificial intelligence induced psychosis. NCFA is covering this article in hopes to provide Canadian mental health resources to support those struggling with AI related mental health issues.
Everyone is at risk who interacts with AI for prolonged periods of use. If you think you are immune, think again. The B.C. Psychosis Program warns that chatbots can reinforce delusional thinking rather than challenge it. Community-led Canadian efforts are building support resources and ethics workstreams.
See: The Silent Mental Health Crisis: Leadership Burnout
Toronto developer Anthony Tan believed he was living inside a simulation and was hospitalized after weeks without sleep. He later launched the AI Mental Health Project to support those struggling with similar issues.
Allan Brooks of Ontario spent over 300 hours with ChatGPT, convinced he had discovered a breakthrough mathematical theory. When his delusion collapsed, he co-founded the Human Line Project, which now connects more than 125 people with similar experiences.
Global Evidence and Widening Mental Health Risk
International reporting shows similar risks. Parents testified to Congress about teen suicides after chatbot interactions, as covered by CBS reporting. OpenAI has announced age verification plans following a lawsuit involving a 16 year old.
Research indicates a tendency for language models to mirror user beliefs. Researchers at Anthropic published a study, 'Towards Understanding Sycophancy in Language Models" (see Anthropic's research summary).
Recommendations for Safety and Innovation
Data driven evidence shows that chatbots often agree with users, even when it ignites harmful thinking. To prevent this, financial AI tools should be designed to test ideas against reality, point users to verified and transparent external information, and clearly signal when content is speculative.
Fintech firms also need to be transparent about safety. They should publish regular audits that show how their systems respond to emotionally sensitive conversations and what safeguards are in place.
See: Meta AI Rules Trigger Calls for Stricter Oversight
Industry can also demonstrate leadership by creating a code of ethics that directly addresses mental health risks. This voluntary framework should include independent reviews and compliance checks, building on the kind of work already happening through community groups like the Human Line Project.
Regulators however should avoid blanket restrictions that could slow innovation. Instead, oversight should be based on the level of psychological and financial risk, ensuring protections are strong where they need to be while leaving room for responsible growth.
Closing Thought
As fintech platforms increasingly adopt AI for customer service and advice, trust remains critical, and if broken adoption will slow and regulatory scrutiny will intensify affecting the competitiveness and growth outlook.
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 aa 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
| | |
|---|---|---|
| | |
Canada Risks Falling Behind as UK Lands AI Megadeals
AI Infrastructure | Sep 17, 2025
Image: Freepik
Billions Flow Into UK AI via US Tech Deals, While Canada Relies On Domestic Investment
On 16 September 2025, the UK US Tech Prosperity Deal was announced at £31 billion, coinciding with President Donald Trump’s state visit where the UK rolled out a royal reception, and the leaders framed the partnership as a new era in digital and industrial cooperation. The deal involves unprecedented commitments from American tech giants:
- Microsoft pledged $30 billion USD (~£22 billion) for UK AI infrastructure, its largest investment outside the United States, which includes £15 billion (~$19 billion USD) for new data centres and Britain’s largest planned supercomputer in Essex. CEO Satya Nadella Microsoft CEO described the partnership by saying, “Our commitment to that partnership is stronger than ever.”
See: SEC Chair Backs Crypto Super Apps and AI Finance at OECD
- Nvidia announced a £500 million (~$650 million USD) equity investment in UK firm NScale and a broader £11 billion (~$14–15 billion USD) package, including 120,000 GPUs, with 70% allocated to computing and networking and 30% to land, power, and data centre structures. Jensen Huang declared, “This is the week that I declare the UK will be an AI superpower.”
- Google committed £5 billion (~$6.7 billion USD) to research and infrastructure, while OpenAI joined Nvidia, Arm, and Nscale to launch Stargate UK in Northumberland, a project expected to generate 5,000 jobs
- CoreWeave pledged £1.5 billion (~$2 billion USD) to boost national compute capacity
Why the UK Attracted Foreign AI Investment
The UK positioned AI as a national mission. On 9 September 2025, ministers reported that UK AI firms had already attracted £2.9 billion (~$3.9 billion USD) in investment over the prior year, signalling momentum ahead of Trump's state visit.
Government officials emphasized sovereign compute, ensuring that the infrastructure to train and deploy frontier AI models exists domestically. They linked the deal to broader reforms including streamlined planning approvals for data centres, accelerated clean energy delivery, and the designation of new AI Growth Zones in regions such as Northumberland.
See: Canada’s Opportunity In Efficient Reasoning AI
Taken together, the policy mix signalled to global investors that Britain was serious about matching research excellence with infrastructure capacity, backed by visible political commitment.
Incentives and Concessions in the Tech Prosperity Deal
The government stressed that the agreement did not include scrapping the 2% Digital Services Tax, which generates £800 million (~$1.1 billion USD) annually, and did not provide blanket copyright concessions.
Others noted that the broader UK-US discussions included trade measures beyond AI. For example, analysis highlighted a quota allowing 100,000 UK cars into the United States annually at a reduced 10% tariff.
While not officially part of the AI deal, the above measures reinforced the perception that Britain was tying technology, industry, and trade policy together in a comprehensive partnership.
Canada’s Position and Domestic Investments
Canada continues to lead in AI research through world class institutes in Toronto, Montreal, and Edmonton. The federal Pan-Canadian AI Strategy was renewed in 2024 with $2 billion CAD (≈£1.2 billion, ~$1.5 billion USD) to strengthen science and commercialization.
Domestic players are also committing significant sums. Telus pledged more than C$70 billion (~£41 billion, ~$52 billion USD) over several years to expand data centres and digital infrastructure. It's a plus but Canada has not attracted comparable foreign megadeals in AI infrastructure.
Structural challenges include slower permitting processes, uncertainty in clean energy delivery for high requirement data centres, and the absence of high profile government 'priming the pump' signalling openness to international megadeals.
See: Brookfield Invests €20 billion in France’s AI Infrastructure
Another barrier is geographic location. U.S. hyperscalers can serve Canadian markets directly from data centres located just across the border, avoiding regulatory delays and high Canadian energy costs. This weakens Canada’s case for domestic megadeals, as firms see little urgency to build new infrastructure within Canada if American facilities can already reach Canadian customers efficiently.
NCFA has cautioned that without pairing research excellence with infrastructure investment and supportive policy, Canada risks eroding its leadership.
Why This Divergence Matters
The UK secured global AI megadeals by aligning industrial policy, trade leverage, and regional development with diplomatic visibility. This multi-pronged approach reassured US tech giants that their investments would be politically and commercially supported. Canada needs to translate research prestige into large scale international infrastructure commitments and risks losing ground in the AI race unless it combines science with infrastructure and policy.
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 aa 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
| | |
|---|---|---|
| | |
S&P Blocks Strategy’s Inclusion Sending Message to Boards
Crypto | Sep 16, 2025
Image: Freepik/drobotdean
S&P’s Rejection Shows Bitcoin Treasuries Face Barriers to Index Entry (and Automatic Passive Flows)
As reported by MarketWatch, the S&P Dow Jones Indices announced its quarterly rebalance and chose not to add Strategy Inc. (formerly, MicroStrategy) to the S&P 500.
Strategy Inc is the largest corporate holder of bitcoin with more than 630,000 BTC, equal to over 3% of the total supply, and met all the published criteria on market capitalization, liquidity, and profitability, but was essentially excluded by the powers of committee discretion. JPMorgan analysts said this exclusion is a warning shot to company boards that bitcoin heavy treasuries may face barriers to benchmark inclusion, limiting access to the large automatic flows of index tracking funds.
See: GameStop Joins Growing List of Bitcoin Treasury Holders
In response, Strategy’s executive chair Michael Saylor posted an image showing that its shares have outperformed the S&P 500 and Bitcoin with the caption “Thinking about the S&P right now ….” He also told Barron’s, “Every quarter, we make new believers. I think that will continue for the foreseeable future.”
Thinking about the S&P right now… pic.twitter.com/Y5nPc9XT4l
— Michael Saylor (@saylor) September 6, 2025
Exclusion from the S&P Raises the Cost of Capital
The S&P 500 is the most tracked equity index in the world. Entry usually lowers a company’s funding costs while expanding its investor base. Trillions of dollars are passively allocated to its members. While the methodology spells out eligibility rules, the committee reserves the right to apply judgment.
Inclusion in the S&P 500 forces trillions of dollars of index tracking funds to buy a company’s stock, creating large automatic inflows that lower funding costs and deepen liquidity. Exclusion means those compulsory passive flows never materialize.
See: Strategy Buys More BTC as Canadian Crypto ETFs Grow
Strategy built its bitcoin position through repeated equity offerings, which turned its stock into a leveraged proxy for bitcoin. That model is now constrained. At the same time, Nasdaq (where Strategy MSTR is currently listed) requires shareholder approval for certain crypto related financing steps, which increases governance complexity and slows decision making.
Together these barriers raise the cost and difficulty of growing corporate bitcoin reserves through treasury strategies. Boards now face a choice of maintaining a bitcoin identity with limited access to mainstream capital markets, or rebalance treasury policies to preserve index eligibility and liquidity.
Some Companies May Prefer Bitcoin ETF Exposure
Some investors may prefer exposure through ETFs rather than dealing with dilution or volatility inside an operating company. Equity research coverage and institutional ownership might reduce if analysts see a company as primarily a bitcoin vehicle rather than an operating business.
Exchange traded funds present a clear alternative. Canada approved spot bitcoin ETFs in 2021 and the United States followed in 2024. ETFs hold bitcoin directly in custody and issue units that trade on exchanges, offering regulated and liquid exposure. ETF fees are typically between 0.2% and 1.0%, relatively modest compared to the governance and financing costs of treasury strategies.
See: Trump Media and Crypto.com Launch Cronos Treasury Firm
However, corporate treasuries allow boards to control timing and scale, use equity issuance to accelerate exposure, and attract investors who prefer equity proxies for bitcoin. Yet these benefits are balanced by costs that now include index exclusion, shareholder approval requirements, and stock valuations that swing with bitcoin more than business fundamentals.
The early regulatory approval of spot bitcoin ETFs in Canada gave investors a first mover's advantage, and a clear and credible option for digital asset exposure at a time when corporate treasuries were still the main vehicle in other markets.
Since then, Canadian companies including miners and digital asset firms such as Hut 8 and BIGG Digital Assets have also pursued bitcoin treasury strategies. This means Canada now has both treasuries and ETFs operating side by side, and it is expected that additional pathways to digital asset investments will emerge over time as regulations evolve.
Outlook
The S&P committee will meet again this December to review index composition. That update could determine whether Strategy’s exclusion is temporary or a longer standing policy. Regardless of the outcome, the September rejection may already be impacting board room decisions affecting the balance between treasury exposure versus ETFs. ETFs offer a regulator approved and stable pathway for investor demand, while treasuries provide control and branding but now carry higher financing and governance costs.
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 aa 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
| | |
|---|---|---|
| | |
Agentic AI in Banking From Pilots to Real Impact
AI Research Report | Sep 15, 2025
Image: Banking Use of Agentic AI (Figue 1, MIT Insights Survey 2025)
70% of Bankers are Using Agentic AI and Only Those With Governance, Trust, and Skills Will Win
A recent MIT Technology Review Insights survey of 250 global banking executives found that 70% of banks already use agentic AI, with 16% running live deployments and 52% in pilots. For Canadian financial institutions and fintechs, the race is on with global competitors embedding AI solutions into compliance, fraud prevention, and customer service at scale.
Banks Turn to Agentic AI for Fraud Detection and Security
Fraud detection and IT security are setting the pace. More than half of executives report that agentic AI is already highly capable in fraud detection (56%) and security (51%), with efficiency gains and customer experience improvements each cited by 41%. These use cases are significant because fraud losses are rising and regulators are upping their game on cyber resilience.
See: RBC and Cohere Partner on ‘North for Banking’ AI Platform
Practical applications include mortgage underwriting, small business lending, collections, dispute resolution, and know-your-customer KYC compliance. By using agentic agents together with expert human oversight, banks are compressing decision times from weeks to days and freeing time for employees to focus on higher value work.
As HSBC’s Ian Glasner puts it, “Think of agentic AI as like an intern helping you get all of the more simplistic tasks done, but the human is still there to oversee and take the final decision.”
Governance, Skills, and Data Remain Adoption Hurdles
Image: MIT Insights Banking Survey 2025 (Figure 6 Challenges, Agentic AI)
The survey also suggests that adoption challenges are growing, top three barriers include: 1. Governance, risk, and compliance (63%), 2. Shortage of technology skills (58%), and 3. Poor data quality and integration (54%).
To overcome, Canadian banks and fintechs should focus on resolving weak data linkages across silos and the shortage of AI ready talent needed to scale responsibly.
See: Retail Banking Platforms and VC Trends 2025
Trust compounds the issue. An EY study found that only 42% of consumers trust financial institutions to manage AI in their best interest, while 30% say they do not trust them at all. That leaves a net trust level of just 12%. In Canada, regulators are focused on consumer protection, and fintechs that build trust into their AI systems could gain an edge.
How DBS and HSBC Set Benchmarks for Agentic AI Governance
Leading institutions are building playbooks worth watching. DBS Bank in Singapore applies its PURE framework (Purposeful, unsurprising, respectful, and easy) to explain all customer facing AI systems. If performance metrics breach preset limits, a kill switch halts the system in real time. As DBS’s Nimish Panchmatia warns, “Agentic AI is a continuous journey. If done properly, there’s significant value at the end of it. But you have to persevere.”
HSBC maintains a detailed inventory of AI systems tied to business owners, risk classifications, and model documentation to create a governance baseline across 200,000 employees in more than 50 markets.
See: H1 2025 Global Fintech Funding Slows, Some Sectors Firing
For Canadian banks and fintechs, these approaches show the value of aligning governance and technical innovation before scaling widely.
Outlook
Banks in Asia, Europe, and the U.S. are experimenting with AI at pace, and many are moving from pilots to enterprise adoption. For Canada, efficiency and risk controls are only part of the story. The real differentiator will be who earns the confidence of consumers while scaling responsibly. Agile fintechs can seize this opening. Unlike large banks weighed down by legacy systems and regulatory complexity, fintechs can design AI solutions that are transparent, accountable, and 'trust first' from the start.
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 aa 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
| | |
|---|---|---|
| | |
