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
SEC Rescinds SAB 121, Allowing Banks to Custody Bitcoin
Crypto Regulation | Jan 24, 2025
Bye Bye SAB 21 -- Hello SAB 122, Banks Can Now Securely Custody Cryptocurrency Assets
On January 23, 2025, the U.S. Securities and Exchange Commission (SEC) cancelled the controversial Staff Accounting Bulletin No. 121 (SAB 121) and replaced it with an updated SAB 122. This move addresses the concerns about the accounting treatment of digital assets, opening the door and making it easier for banks, fintech companies, and crypto custodians to legally provide cryptocurrency custody services.
Key Insights
- The problem with SAB 21 is that it required all financial institutions such as banks, fintech firms, and crypto custodians to record customer crypto assets as liabilities on their balance sheets, inflating the financial and operating risks (of doing business with crypto). This accounting treatment discouraged banks from offering custody services for crypto because it inflated their liabilities making their financial positions look risky, impacting regulatory compliance.
- Now with the new SAB 122, financial institutions can now report their services more accurately without inflating liabilities by following well known accounting Financial Accounting Standards Board (FASB) rules in the U.S. or similar international standard.
See: Trump Signs New Order for Crypto Rules, Bans CBDCs, Eyes Asset Reserve
- The updated bulletin reminds entities to maintain clear and detailed disclosures that allow investors to understand obligations related to the company's responsibilities to safeguard crypto assets, such as detailing operations, potential risks, and management practices.
- The rescission is to be applied retrospectively, starting from December 15, 2024 with options for early adoption.
SEC Commissioner Hester Peirce Reaction on X:
"Bye, bye SAB 121! It’s not been fun" -
Why it Matters
The rescission of SAB 121 further highlights the regulatory pivot currently evolving on digital assets and their imminent role in mainstream finance and broader financial landscape. It could attract billions of dollars in institutional investments into crypto markets, further bridging the gap between traditional versus digital finance while boosting innovation and the credibility of cryptocurrencies.
See: SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
This development could set a precedent for other jurisdictions to follow. As regulatory clarity improves, crypto market potential as a core piece of the global financial ecosystem grows stronger.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Musk Challenges Funding for Trump’s AI Stargate Initiative
AI Infrastructure | Jan 22, 2025
Image: Freepik/Racool studio
Musk Claims Trump’s Stargate AI Backers Lack $500 Billion for Initiative
As reported by CNN on January 21, 2025, President Donald Trump in collaboration with OpenAI CEO Sam Altman, Oracle CTO Larry Ellison, and SoftBank CEO Masavoshi Son announced a $500 billion AI infrastructure initiative called Stargate Project, which aims to establish the United States as a global leader in artificial intelligence infrastructure. It's one of the most ambitious AI infrastructure investments in history with plans to spend $500B over four years to build advanced data centers and systems.
Musk's Criticism and Reactions
Shortly after the announcement, no other than one of Trump's closest advisors, Elon Musk, criticized the project stating that the primary backer, SoftBank, has well under $10B secured:
Elon Musk, wrote on X:
“They don’t actually have the money. SoftBank has well under $10B secured. I have that on good authority.”
See: Trump’s Inauguration Marks New Chapter for Tech Giants
Sam Altman quickly responded to Musk:
“wrong, as you surely know. want to come visit the first site already under way? this is great for the country. i realize what is great for the country isn’t always what’s optimal for your companies, but in your new role i hope you’ll mostly put (America) first.”
Karoline Leavitt, White House press secretary:
“President Trump is very excited about this infrastructure announcement in the field of AI, which is obviously growing, and something the United States of America needs to capitalize on, because our adversaries, such as China, are very advanced in this field. So, the American people should take President Trump and those CEOs’ words for it -– these investments are coming to our great country, and American jobs are coming along with them.”
Musk Just Protecting His Interests?
Many believe that Musk's concerns simply mirror how Stargate could threaten his own ventures (in other words, it's somewhat personal). Musk and OpenAI CEO Sam Altman also have a history of competitive friction with Musk suing OpenAI over abandoning its non profit roots for commercial aspirations. Musk probably see's OpenAI's growing influence at the White House, signalling the broader challenges of aligning private sector interests with national technical goals.
Strategic Goals of the Stargate Project
One of the key goals of the project is to expand AI infrastructure by constructing new data centers with cutting edge tech for training AI models. The first phase is a 10 building site in Abilene, Texas, with each facility's footprint measuring 500,000 square feet. In total, there are plans to expand to 20 buildings across multiple locations across the U.S.
See: AI Leaders and White House Discuss Energy Infrastructure
The project is expected to generate hundreds of thousands jobs in construction, tech, and related industries and drive re-industrialization in the U.S. via strategic investments in technology, reinforcing America's position as global AI leader amidst growing competition from players like China. This includes the capabilities to protect and enhance critical national security interests.
Financial Backing
Financial backers of the project in phase 1 include OpenAI, SoftBank, Oracle, and MGX who are starting with a $100 billion investment. As reported on QZ and CNN, the funding amounts below are being circulated:
- SoftBank has $24.3 billion in cash on its balance sheet and is ready to take on additional debt
- MGX (Abu Dhabi-based investor) says it has $100 billion in capital commitments
- Oracle has $11 billion in cash on its balance sheet
- OpenAI recently raised $10 billion from venture capital
- Microsoft has $80 billion investment allocated to cloud infrastructure with CEO Satya Nadella saying "All I know is I’m good for my $80 billion.”
Implications for Canada
As the U.S. plows ahead with its AI infrastructure development projects, Canada must consider the importance of investing in its own AI infrastructure and capabilities to maintain global competitiveness. On December 5, 2024, the Canadian government launched a CAD $2 billion Canadian Sovereign AI Compute Strategy to strengthen Canada's position that allocates CAD $700 million to develop and expand new data centers in Canada to support innovation and research, CAD $1 billion towards building soverign supercomputing infrastructure, and CAD $300 million to provide computing resources to small and medium sized enterprises to help commercialize AI projects.
See: OpenAI’s U.S. Economic Blueprint and Takeaways for Canada
While Canada’s CAD $2 billion investment is significant, compared with the U.S.’s $500 billion Stargate initiative, it's a drop in a leaky bucket. Having said that, Canada has punched above its weight accounting for about 10% of the world's top AI researchers with AI Pioneer Geoffrey Hinton recently winning the 2024 Nobel Prize in Physics. The funding gap highlights the importance of Canada's need for securing strong private sector partnerships and focusing on sustainability and maintaining a leadership position in responsible AI development.
Conclusion
AI is the future of global competitiveness. As global leaders invest heavily in AI infrastructure, Canada must accelerate its own initiatives and funding to compete while maintaining committed to ethical and inclusive AI development.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Trump’s Inauguration Marks New Chapter for Tech Giants
Trump | Jan 21, 2025
Image: Freepik AI/ibrandify
Amidst Global Scrutiny, Trump's Inauguration Signals New Era of Collaboration with Tech Giants
Yesterday, President-elect Donald Trump was inaugurated as the 47th President of the United States, marking a turning point for the tech industry. Leaders from some of the world’s most influential technology companies have been meeting, contributing funds, and jockeying for support from Donald Trump and his Republican administration during the run-up to the event, which showcased a laundry list of big tech CEOs in attendance such as X's Elon Musk, Amazon's Jeff Bezos, Google's Sundar Pichai, Apple's Tim Cook, Microsoft's Satya Nadella and TikTok's Shou Zi Chew to name a few. This alignment is due to Donald Trump's shift towards innovation friendly policies, an easing of regulatory constraints, and partnerships that align government priorities with tech growth and business opportunities.
From Critic to Ally
Trump's first term's administration was combative against several tech giants, pushing antitrust lawsuits and bans on platforms like TikTok due to national security concerns. However, leading up to his inauguration he promised to 'save' TikTok by delaying its national ban, which was celebrated by its 170 million American users. Shou Zi Chew, CEO of TikTok praised Trump's efforts: “We are grateful for the president’s commitment to finding a solution that keeps TikTok available for our users in the United States.”
See: Kevin O’Leary’s TikTok Bid – Privacy and Innovation
Another glaring example that the administration is keen on fostering tech partnerships to boost innovation is the appointment of Elon Musk to run DOGE (The Department of Government Efficiency). DOGE is not only a hat-tip to the cryptocurrency by the same ticker symbol, but faced with massive national debt, Trump's approach to cost reduction and streamlining outdated bureaucratic processes with (not just) new technologies but also tech thinking and execution.
Different Story Globally
As the U.S. administration pivots to collaborative relationships with big tech, policymakers and regulators globally are ramping up scrutiny across a range of issues from data privacy, antitrust concerns, content moderation, and ethical implications of artificial intelligence.
The European Union's Digital Markets Act (DMA) and Digital Services Act (DSA) are designed against monopolistic practices and require more openness about how algorithms make decisions. Several high profile antitrust cases. For example, the EU charged Apple with breaching the DMA forcing it to pay €13 billion in taxes to Ireland. The EU also fined Google for abusing its dominance in comparative shopping practices, fining them €2.4 billion.
See: Canada Sues Google Over Anti-Competitive Ad Practices
In India, the government is rolling out strict data localization laws and content moderation policies to curb everything from national security to a growing comfortableness about foreign tech firms influencing of domestic politics and culture.
China has taken an even tougher stance by cracking down on its own tech giants, including Alibaba and Tencent. The Chinese government is also introducing stricter data governance rules and control over the digital economy, seeking to align tech innovation with national priorities.
In Canada, the government introduced of the Online News Act (Bill C-18) requiring tech giants like Google and Meta to compensate Canadian news outlets for using their content, creating a lot of friction. While Google complied and committed to annual payments to a collective fund managed by the media sector, Meta decided to block news content on Facebook and Instagram in Canada instead, leading to a significant 90% drop on Canadian news publisher's facebook pages since implementing the ban.
Outlook
Striking the right balance will be key over the next four years. On one hand, governments must address public concerns about data privacy, misinformation and monopolistic practices. On the other hand, there's a strong need to collaborate with tech to advance economic growth and innovation.
See: Canada and Trump Risk Index What Fintechs Need to Know
Big tech is sandwiched between these priorities and will need to adapt to local requirements in each country they operate in without compromising their global visions. For financial technology companies and investors, the next four years will be full of opportunities and complexities, as aligning with government priorities becomes an essential ingredient for success.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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SEC Files Appeal Brief as XRP Hits Record High
Crypto Enforcement | Jan 17, 2025
Image: Freepik/wayhomestudio
SEC Appeals Ripple's XRP Classification As XRP Price Touches All Time High
With just a handful of days remaining in Gary Gensler's job as Chair of the U.S. Securities Commission (SEC), the legal saga between SEC vs Ripple Labs over the classification of XRP continues. On January 15, the SEC filed an appeal to try and overturn the 2023 ruling that XRP is not a security when sold to retail investors. The appeal reopens the debate whether XRP sales to retail investors meets the criteria for investment contracts under the Howey Test, arguing that XRP investors expected profits from Ripple's efforts.
See: Trump Picks SEC Chair, Shakes Up Crypto and Oversight
Stuart Alderoty, Ripple’s Chief Legal Officer:
As expected, the SEC’s appeal brief is a rehash of already failed arguments –and likely to be abandoned by the next administration. We’ll respond formally in due time. For now, know this: the SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and… https://t.co/3ZxO64Fs8C
— Stuart Alderoty (@s_alderoty) January 16, 2025
Market Reaction
The market's response to the idea that the 'SEC's appeal brief is simply a rehash of already failed arguments', pushed XRP's price upwards to $3.38, just shy of it's all time high price of $3.40, reached on Jan 6, 2018 per Coingecko. Analysts and traders are quite optimistic around the potential outcome of the legal case, and are speculating about XRP exchange-traded-funds and the coin being included in national bitcoin/crypto reserves that would further boost demand for XRP. On social media, reactions were mixed with memes and commentary with many seeing the SEC's appeal as redundant while others remained cautious.
Brad Garlinghouse, Ripple CEO on X here:
"If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn't protected investors and instead has damaged the credibility and reputation of the SEC."
See: Gensler’s Final Salvo as SEC Targets Unicoin in Crypto Clash
Paul Atkins, Appointed SEC chair and Former SEC Commissioner on FT:
"The SEC's approach to digital assets needs a comprehensive reevaluation to foster innovation while ensuring investor protection."
Why It Matters
The SEC’s appeal and subsequent XRP price jump highlight the importance of this case for the future of crypto. If Ripple wins, it could set a global standard for how digital assets are classified, providing more regulatory clarity and freedom to innovate.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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2024 Global Fintech Funding Insights for Investors & Founders
Fintech Report | Jan 16, 2025
Image: State of Fintech 2024 (CB Insights)
'State of Fintech 2024' Funding, Deals and Innovations for Growth in 2025
CB Insights published it's annual 'State of Fintech 2024 - Global Recap' report (whopping 200 page PDF) with the top line being global financial technology funding dropped 20% year-over-year to USD $33.7 billion. Certain sectors continue to shine with innovations in payments, blockchain and embedded finance showing robustness for 2025. This article presents key trends and takeaways for fintechs and investors to digest.
Key Global Funding Trends in 2024
Global fintech funding in 2024 dropped 20% year-over-year to USD $33.7 billion (deal volume also shrank 17%). It was a sobering year with macroeconomic headwinds in the air from volatile interest rates, cautious investment landscape, and geopolitical instability.
The payments sector led and captured 40% of total funding as embedded finance and B2B solutions enjoyed growth, as companies of all stripes looked to integrate financial services.
See: Fintech Trends & Predictions Across Generations in 2025
Enterprise adoption and tokenization drove blockchain funding to $6.5 billion globally, as more use cases emerge beyond speculative trading of cryptocurrencies.
Unicorns were rare sightings with only two (2) new fintech unicorns rearing their head in Q4, 2024, for a total cumulative count of 326 unicorns to date. Many established unicorns continued to thrive.
M&A activity increased 6% year-over-year with 664 exits including Stripe's $1.1 billion acquisition of Bridge.
Regionally, the U.S continued to dominate its position as the largest fintech market raising $3.9 billion in Q4.
Latin America was the fastest growing market fuelled by financial inclusion initiatives, raising $1.1 billion in Q4 alone.
Despite the global funding drop, one silver lining was the focus on quality over quantity (and then backing up the truck), driving a 33% increase in the median deal size to $4 million, primarily allocated to late stage firms with clear growth trajectories. While seasoned investors dominated activity, newer investors pulled back.
Investor Perspective
Although 2024 was largely a challenging environment, key late stage opportunities particularly in payments and blockchain firms such as Stripe’s $1.1B acquisition of Bridge and Zepz’s $267M Series F. Notably, embedded finance attracted over $14 billion globally, as non-financial platform businesses looked to integrate financial services as a new source of revenue.
See: Wealth Management Insights for Fintechs and Investors
- Total global fintech funding fell to $33.7 billion (20% decline yoy)
- Embedded finance boosted payments funding to $14 billion globally
- Total blockchain funding $6.5 billion
- Median deal size increased 33% (yoy) to $4 million
- Focus on later stage companies with strong business models and proven scalability in high growth sectors like blockchain infrastructure and cross-border payments
Founder Perspective
Fintech funding was more scarce in 2024. Global deal volumes shrank 17% but median deal sizes increased 33% to $4 million year-over-year. Not surprisingly, founders who aligned their models with hot trends like AI personalization tools and embedded finance had more success in securing funding.
See: M&A Opportunity as Fintech Valuations Drop
- AI is becoming an essential tool in fintech. Use cases are growing in lending and wealth management
- Blockchain funding expected to exceed $8 billion globally in 2025
- Embedded finance revenue is projected to exceed $140 billion in 2025 (growth potential)
- Cross border payments is forecasting 20% growth in 2025 due to global commerce
- Notable deals in 2024 - Public securing $105 million, and Zest AI raising $200 million Series H
- Founders should align their offerings with global trends and build partnerships with established players while focusing on scalability and gaining investor trust
2024 Fintech Funding in Canada
In 2024, a total of $300 million was raised across 14 deals in key sectors such as blockchain, digital banking and payments. Canada accounted for a modest 0.9% share of global fintech funding but its focus on niche sectors like blockchain and payments make it stand out. A few notable deals include:
- Neo Financial raised USD $80 million in a Series D round
- Blockstream secured USD $152 million through a convertible note
- PiP World attracted USD $10 million in seed funding
- Canadian fintechs are uniquely positioned to capitalize on AI automation in wealthtech and insurtech sectors. Collaboration with U.S. and European markets could expand Canada's influence in 2025
Closing Outlook
While fintech in 2024 was a reflective year, fintech in 2025 offers some big opportunities in blockchain, AI, and cross-border payments. Embedded finance will continue to expand to new industries, creating new ways for customers to engage. Create scalable ideas, form smart partnerships and stay ahead of key trends in this fast changing market. Learn more, download the full 200 page report from CB Insights.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Zuckerberg to Replace Mid-Level Engineers by 2025
AI | Jan 14, 2025
Image: Freepik/DC Studio
Mark Zuckerberg Announced the Ability to Automate Mid-level Engineering Roles at Meta by 2025
Job automation has been going on for decades but Mark Zuckerberg just doubled down on an episode of Joe Rogan's Experience podcast when he announced plans to automate mid-level engineering roles at Meta some time in 2025. Of course if Meta is doing this then so will all the other companies working on AI will too. That is, AI systems will autonomously soon write code that could become operational, they would effectively update and maintain it too.
🚨 Mark Zuckerberg on the Joe Rogan podcast
in 2025, AI systems at Meta and other companies will be capable of writing code like mid-level engineers.
at first, it's costly, but the systems will become more efficient as time passes.
eventually, AI engineers will build most of… pic.twitter.com/iJtJqgXm19
— Haider. (@slow_developer) January 10, 2025
The dominoes are starting to fall, raising near term practical questions about the future of work and its impact on human employees. Some countries like the UK and Canada with declining growth and aging populations are looking to AI to increase productivity. Companies are starting to launch their own AI agents like Salesforce's Agentforce to innovate and boost growth/productivity while reducing operational costs. Or Moody's who have integrated AI as 'digital colleagues' through a multi-agent system whose AI agents automate processes such as financial risk analysis, PESTLE assessments, and credit evaluations saving them a ton of time while freeing up human decision-makers to focus on strategic initiatives.
Some Financial Jobs at Risk from AI
AI's ability to replace or completely transform traditional jobs goes far beyond coding. In the financial sector, many roles rely on repetitive, data-driven tasks which are of course at high risk.
See: AI, Funding Shifts and Regulatory Hurdles in Fintech 2024
We asked AI to help predict and rank the financial jobs that it thinks AI will replace, when it will replace it and it's impact on an 'evolved human role' in the broader task. The results are in the table below.
| # | Financial Job | Tasks Performed | AI Replacing 25% by | AI Replacing 50% by | Max AI Adoption by (% & Year) | Evolved Human Role |
|---|---|---|---|---|---|---|
| 1 | Customer Service Reps | Resolving client inquiries and account management | 2024 | 2028 | 80% by 2035 | Managing complex queries, providing empathy and judgment |
| 2 | Bank Tellers & Clerks | Handling deposits, withdrawals, and customer service | 2025 | 2030 | 75% by 2035 | Focusing on personalized customer relationships |
| 3 | Insurance Underwriters | Risk assessment and premium calculation | 2025 | 2030 | 90% by 2035 | Overseeing edge cases and refining AI decision models |
| 4 | Loan Officers | Evaluating creditworthiness and loan approvals | 2026 | 2030 | 85% by 2035 | Managing exceptions and building client trust |
| 5 | Trading Desk Operators | Executing trades and monitoring markets | 2025 | 2029 | 95% by 2035 | Strategic decision-making and managing high-stakes trades |
| 6 | Accountants & Auditors | Preparing financial reports and auditing | 2026 | 2031 | 85% by 2035 | Conducting complex audits and interpreting nuanced results |
| 7 | Fraud Analysts | Fraud detection and transaction monitoring | 2026 | 2031 | 90% by 2035 | Investigating sophisticated fraud patterns |
| 8 | Compliance Officers | Ensuring regulatory compliance | 2027 | 2032 | 80% by 2035 | Interpreting regulatory changes and handling unique cases |
| 9 | Financial Analysts | Data analysis, forecasting, and reporting | 2027 | 2032 | 85% by 2035 | Providing strategic insights and interpreting AI findings |
| 10 | Financial Advisors | Portfolio management and investment advice | 2028 | 2033 | 70% by 2035 | Building personal client relationships and complex planning |
Preparing for the new Digital Workforce and Human Collaboration
As artificial intelligence because more and more integrated into core business operations, fintech companies need to rethink strategies and prepare for a blends AI with human capabilities. Success will depend on setting clear objectives, embedding ethical practices, and fostering collaboration to create what can be called a 'bionic fintech' era, an integrated partnership with human creativity and AI's precision and speed.
1. Define Your AI Priorities (where AI delivers the biggest win)
Fintechs must evaluate their business models and identify the processes and services that will benefit the most from AI integration. For example, payment processors can use AI to improve fraud detection and optimize transaction speeds while wealth tech platforms could use AI to deliver personalized financial advice and enhance customer service.
See: How Real-Time Agentic AI Will Boost Fintechs
By clearly defining these priorities, companies can ensure their AI investments are aligned with meaningful goals and provide measurable value over time.
2. Start Small but Dream Big! Scale AI Without the Risk
Implementing AI doesn't have to be a huge gamble. Start by launching a strategic yet small pilot project in a high priority area such as compliance automation or risk assessment where potential solutions can be tested and refined before wider deployment. Platforms such as AWS AI/ML Solutions or Google Cloud AI can provide the tools needed to experiment. Then expand AI capabilities as new processes prove successful, reducing the risk of large-scale failures.
3. Commit to Responsible AI (given that AI needs a moral compass)
A trustworthy AI system can only be built on an ethical foundation. Companies must prioritize transparency, accountability, and compliance with regulations to build AI systems that are trusted with confidence. Frameworks like the UK's Data Ethics Framework can serve as a guide to help fintechs avoid bias/risks and develop AI systems that are both effective and socially responsible.
4. Redefine Human Superpowers and Prepare Team for Success
Make sure people understand that while AI is great at handling repetitive, data heavy tasks, humans are necessary for creativity, empathy, and ethical oversight. As AI eventually takes over routine tasks, humans can manage these systems, tweak strategies, and work on complicated challenges that machines can't resolve. Human ingenuity is sill at the top of the food chain (for now anyways)!
See: Musk Says Human Data for AI Training is Depleted
Companies must provide the necessary up-skilling and training programs on AI, data literacy, and problem-solving to teach employees how to effectively work with AI systems and generate high value outputs. Given the right tools and training, employees should be able to trouble shoot exceptions and better understand nuanced findings. Creating an environment that encourages learning and adaptability ensures employees remain relevant and capable in this changing landscape.
5. Integrate AI into Workplace Culture
AI needs to become part of the new culture, so it needs to be welcomed and be part of the team. Fintechs should define clear roles for AI systems and have them complement human roles. Recognizing AI and celebrating milestones can actually help employees see AI more as a partner than a threat, which builds up trust and collaboration instead of animosity.
See: How AI is Revolutionizing Fintech
Companies should create an environment that encourages learning and adaptability. Innovation thrives on partnerships. By working with AI startups, academic institutions, and industry groups, fintechs can tap into new technologies and ideas. These collaborations can create a culture of experimentation, helping organizations to embrace innovative solutions that keep them ahead of their competition.
6. Create a Feedback Loop for Continuous Improvement
Do not just let AI systems operate on autopilot. Establish real-time tracking metrics, such as cost savings, efficiency improvements, and customer satisfaction to monitor for high quality outputs, ethics, and adapt to changing needs. Conduct regular audits including by third parties to keep AI aligned with your priorities and business goals to ensure longer term effectiveness.
Outlook
Meta just announced plans to cut about 5% of its workforce targeting under performing employees, as part of a continual effort to improve efficiency in the age of AI.Both companies and employees should prepare for major changes that AI will bring. Meta's setting the stage to replace mid-level engineers by 2025, will you be ready?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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RBC and Cohere Partner on ‘North for Banking’ AI Platform
AI Banking | Jan 9, 2025
Image courtesy of Freepik AI
RBC Teams Up with Cohere to Lead AI Innovation in Financial Services
Today, the Royal Bank of Canada (RBC) announced a partnership with Toronto-based AI powerhouse, Cohere, to develop an innovative AI platform for the banking sector called 'North for Banking' that prioritizes security, efficiency, and innovation. The platform will incorporate RBC's proprietary models and internal data systems and use Cohere's enterprise AI expertise to set a new standard specifically designed for the financial industry.
Ivan Zhang, Co-founder of Cohere:
"North for Banking will be an end-to-end AI solution that financial industry firms can seamlessly integrate to increase workforce productivity and operational efficiency. By prioritizing security and data privacy protections, companies can have peace of mind as they deploy it internally at scale."
See: Canuck Startups Cohere and Clio Secure Major Funding Rounds
Dr. Foteini Agrafioti, Senior VP of RBC Borealis and CSO at RBC:
"RBC is on a path to redefine what a bank is capable of, and AI will play an important role in our future success,"
RBC’s Decade of AI Leadership
RBC isn’t new to AI, and in fact, has been at the forefront of AI to make banking smarter and more efficient for the better part of a decade. In 2016, RBC launched an AI research institute Borealis AI to advance AI in finance, which has been key to launching a number of AI tools that are making a big impact on clients and internal operations today.
For example, RBC's mobile app launched NOMI, an AI tool that provides personalized financial insights to help customers by tracking spending, automating budgeting, suggesting savings opportunities, and forecasting future cash flow. Since launching in 2017, NOMI has saved clients over $4.5 billion.
Then in 2020, RBC launched a trading platform called Aiden that adapts in real time and uses AI to optimize trade execution pricing, reducing slippage and improving trading outcomes for clients.
Also in 2020, RBC partnered with tech firms Red Hat and NVIDIA to develop a cloud-based AI computing platform that improves RBCs ability to scale research and deploy machine learning applications and AI services efficiently across the bank.
AI also plays a huge role daily in responding to customer questions in a streamlined and accurate way.
Implications and Why This Matters
RBC's collaboration with Cohere will most certainly catch the attention of its competitors, putting industry on notice and spurring more capital investment and innovation. Other major Canadian banks, such as TD, Soctia and BMO are likely to accelerate their own AI initiatives to keep pace, either through their own AI industry collaborations or building internally. Smaller financial institutions and credit unions may look to strike partnerships with larger players or fintech firms to integrate similar capabilities.
See: OECD-FSB Discuss New AI Trends in Finance
Also, it's conceivable that the North for Banking platform could eventually be licensed to other financial institutions, adding a new revenue stream while advancing adoption and industry standards. For fintech companies, the platform could potentially serve as a hub that they can tap into to develop specialized applications in areas like decentralized finance or green finance.
Outlook
This is one to watch at large, as the platform rolls out over the next several months to boost productivity, improve security, and deliver new customer experiences. RBC's commitment to AI innovation is already paying off.
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