Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Entrepreneurs, Start-ups, Small Businesses
Is Google’s ‘Vibe Coding’ Ready for Fintech?
AI | Oct 27, 2025
Image: Introducing Vibe coding in Google AI Studio (Google Blog)
Fintechs Should Explore Vibe Coding Carefully to Balance Speed, Safety, and Compliance
On October 26, 2025, Google announcing the intro of vibe coding in Google AI Studio, a new tool that lets developers and creators use artificial intelligence to speed up software development using a mix of natural language and code. The feature is available on Google’s Gemini models, which can understand text, images, and data all at once. The idea behind vibe coding is almost like a magical pill. That is turn a detailed description of what you want to build into a working app or prototype in minutes instead of weeks.
See: Lovable Hits $100M in 8 Months With Code Vibing Model
For fintech innovators, startups and established financial institutions, it sounds like a major breakthrough given they are constantly under the gun to launch new digital services quickly to remain relevant and competitive. Vibe coding tools in theory, could make it easier to create the latest innovative solutions without hiring expensive engineering teams. But the same qualities that make it fast and flexible also raise difficult questions about privacy, data handling, and reliability when used inside regulated environments.
What Vibe Coding Means For Developers
Vibe coding was created for builders who want to experiment without having to code everything from scratch. Inside Google AI Studio, users can describe an idea and the system automatically produces the code and interface. It works for both experienced developers and business teams who may not have deep technical skills.
That accessibility and speed of 'idea-to-prototype' is what makes it so interesting for fintechs. A startup could create an interactive demo for investors or customers overnight. A mid-sized financial institution could use it to prototype internal compliance dashboards. Even regulators could use it to explore AI tools that help monitor market risks. The experience feels less like traditional coding and more like collaborating with a digital assistant that understands what you are trying to achieve.
The Security Question
Financial data is among the most sensitive information in any digital system. Google’s documentation for AI security on Google Cloud describes several layers of protection, including encryption, access control, and a zero data retention option that prevents user prompts or outputs from being stored for training. The company has also rolled out AI Protection service, which helps organizations monitor and control how their AI systems interact with code and data.
See: Mycroft Raises $3.5M for Agentic AI Compliance Officer
Those protections are encouraging, but they depend on how a company configures its environment. The free version of AI Studio likely won't include the same protections as enterprise deployments. Unless a fintech uses Google Cloud’s managed enterprise tools with clear data governance terms, prompts and logs could still be visible to Google’s systems. This means that even simple mistakes, such as entering customer information into a test prompt, could create compliance risks.
Canadian fintechs face additional expectations under PIPEDA, OSFI’s Cyber Risk Guidelines, and FINTRAC’s data-handling rules. Any platform that processes or even touches production data must comply with encryption standards, data residency, and audit requirements.
Tools like vibe coding should be treated as development sandboxes, not as live environments for real financial transactions or personal data.
What Can Go Wrong and Practical Steps
The biggest concern is not Google’s infrastructure but how the tool is used. A recent security study referenced by TechRadar found that almost half of AI-generated code samples contained security flaws.
In the trenches of a financial system, even small weakness could expose customer accounts or transaction records. Because vibe coding relies on natural language, a poorly written prompt could create vulnerabilities with unintended code or API access. Read about demos versus production
See: Google Signs EU AI Code Despite Competition Warnings
Fintechs should assume that every piece of AI code generated needs to be reviewed by a real human and pass full security testing before it's deployed. Teams should separate test environments from live systems and avoid entering any confidential or regulated data into AI development tools. Also, the same rules that apply to cloud security and 3rd party vendor management should also be applied here.
Before experimenting with vibe coding for fintechs and financial institutions, companies should confirm that their account includes enterprise security controls and written commitments on data storage, encryption, and model training exclusions.
Developers should be trained to understand prompt hygiene and privacy responsibilities. Firms should also document where and how AI tools are used in the software development process to maintain compliance with internal and external audits.
For Canadian firms, the above security practices should align with OSFI’s guidance on 3rd party technology risks, which emphasizes focus on resilience, accountability, and transparency in AI systems.
Why This Matters
As AI systems evolve and mature, the future points to a day where developers (or any visionary that can type a prompt) can build software solutions via conversations rather than code (the ultimate communicative wrapper).
See: Google Veo 3 Brings New Tools for Fintech Teams
But for companies that handle financial or personal data with real obligations, governance and risk management should be on high alert. If used responsibly and with greater advancements, vibe coding could lower the cost of innovation, help startups scale faster, and give established institutions more agility in how they design financial services. Want some inspiration? Check out Google's AI Studio app gallery.
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
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NCFA Canada and TheBlock Partner to Build a Global Bridge for Tokenization
NCFA Canada | Oct 27, 2025
Toronto, Canada and Dubai, UAE – October 27, 2025 – The National Crowdfunding & Fintech Association of Canada (NCFA), a non-profit fintech network, and TheBlock, a Dubai-based virtual asset hub, today announced a strategic partnership to expand cross-border collaboration, education, and adoption of tokenized real-world assets (RWA).
Expanding Global Access to Tokenization
This partnership creates a bridge between Canada’s fintech and investor community and Dubai’s growing hub for tokenized assets. By combining NCFA’s network of entrepreneurs, investors, regulators, and industry leaders with TheBlock’s expertise in tokenization and capital markets, the collaboration will help firms explore opportunities in RWA, broaden investor participation, and better understand global adoption trends.
Craig Asano, NCFA’s founder and CEO:
“Education and collaboration are central to this initiative. By working with TheBlock, we can help firms explore tokenization use cases, engage more effectively with international investors, and build confidence in this fast-evolving market.”
Farbod Sadeghian, CEO of TheBlock, added:
“Our mission is to open global pathways for firms and innovators to participate in tokenization. By Canada’s fintech ecosystem to international markets where adoption is advancing quickly, we’re creating practical opportunities for companies to explore, experiment, and grow.”
A Shared Purpose
As tokenization and real-world assets power digital finance, education and global collaboration are critical to ensure firms, investors, and policymakers are equipped for the transition. NCFA and TheBlock will co-develop initiatives such as joint knowledge programs, workshops, and ecosystem-building events to support this evolution.
About NCFA Canada
The National Crowdfunding & Fintech Association of Canada (NCFA) is a non-profit fintech ecosystem that supports and amplifies fintech, alternative, digital, and AI-driven finance globally. NCFA provides education, market intelligence, advocacy, networking, and funding opportunities to entrepreneurs, investors, regulators, and innovators.
About TheBlock
TheBlock is a Dubai-based virtual asset hub focused on tokenization, capital readiness, advisory, and ecosystem building. With a mission to connect global markets and foster adoption of real-world assets through tokenization, TheBlock provides education, programs, and services to companies, investors, and innovators shaping the future of finance.
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
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AI’s Hidden Costs in Replacing Junior Workers
AI | Oct 22, 2025
Image: Freepik/rawpixel.com
Data Reveals Hidden Cost of Early Automation Savings
On October 13 2025, the Economist ran a story 'Can AI replace junior workers?' that analyzed a total of 300,000 companies and found that firms adopting AI hired 7.7% fewer junior employees over six quarters compared with non adopters. These research findings came from a Harvard SSRN study by Seyed Hosseini and Guy Lichtinger, who tracked the introduction of AI integrator roles across a subset of 10,600 of these firms. They found that while senior hiring remained flat, most declines came from reduced job postings rather than layoffs.
In a different study by the Yale Budget Lab review, 'Evaluating the impact of AI on the labour market', found that since 2022 the overall mix of jobs hasn’t changed much yet. Their data also revealed that AI’s effects are starting to appear inside companies now but they haven't yet shown up in national reports.
Where AI Hiring Slowdowns Are Emerging
In Canada, the same early signs are visible. The Future Skills Centre found in 2025 that about half of Canadian workers hold jobs with high AI exposure, and that postings for automatable roles have fallen since 2022. (see: Right Brain Left Brain AI Brain). Statistics Canada’s September 2025 update showed youth unemployment at 14.7%, the highest rate since 2010 excluding pandemic years.
Demand for AI capability is climbing fast though. PwC’s 2025 AI Jobs Barometer found that job postings requiring AI skills made up 1.8% of all listings in Canada in 2024, the highest level recorded. Globally, PwC reported that workers with AI skills now earn a 56% wage premium. Lightcast data confirmed that postings asking for generative AI skills grew from 55 in January 2021 to nearly 10,000 by May 2025.
Early AI Savings Are Creating Hidden Costs
In 2023, IBM announced a hiring pause for administrative positions likely to be automated, estimating that about 7,800 jobs could eventually be replaced. Two years later by 2025, IBM’s chief executive said that hundreds of jobs had already been automated but new programming and sales roles were added to manage and improve AI systems (read: costs). These new positions required higher pay and technical skill, meaning that overall labour costs rose even as headcount stayed about the same.
PwC’s 2025 report described 4x increase in productivity but increased sending on advanced human oversight due to the specialized staff required to operate and oversee (rather than removing human involvement completely).
Mid Tier Graduates Face the First AI Hiring Crunch
The first jobs being cut are entry level analytical roles that once helped graduates learn on the job and grow into future innovators. Without those opportunities, companies risk gaps in the talent pipeline that sustains innovation and good governance.
Among those entry level roles, mid-tier graduates are being hit hardest. They aren't highly specialized enough to keep, and not low enough cost to retain. Data from Harvard and Yale show the same pattern now appearing in Canada’s banking and software sectors, where AI can handle document review and code debugging but not creative or complex work.
See: OpenAI Launches AI Jobs Platform to Rival LinkedIn
Canada’s rate of AI adoption is still lower than in the United States, but the same pressures are starting to appear. Companies that don’t build structured training and mentoring around AI now will likely face skill shortages and higher rehiring costs later.
Takeaways
1. Automation saves first but costs later
Harvard data show a 7.7% drop in junior hiring at companies that adopt AI. IBM’s experience confirms that after automating 7,800 jobs, it had to rehire more expensive employees for oversight and compliance work.
2. Canada’s entry talent pipeline is shrinking
Youth unemployment has reached 14.7%, the highest since 2010 outside the pandemic. The first jobs being reduced are early analytical roles that once gave graduates the training and judgment to move into leadership positions.
3. Mid-tier graduates face the toughest impact
Among the junior jobs being lost, graduates from mid-tier universities are at the most risk. Their work is often routine enough to automate but not low-cost enough to retain, leaving a growing gap in Canada’s talent base.
See: Which Fintech Processes Are Most Ready for Agentic AI
4. AI skills bring the biggest rewards
PwC found that employees with AI skills earn 56% more on average, but only 1.8% of job postings in Canada mention these skills. Fintechs that start training programs now can close that gap and strengthen their competitive edge.
Summary
AI is changing how companies build their workforce, not just how they cut costs. The data show that when junior jobs disappear, the long-term cost is a weaker talent pipeline and higher spending to rebuild skills later. Investing in AI training, early-career development, and responsible oversight will pay off later in productivity and help drive competitiveness.
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
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Fintech Charters and Challenger Banks Driving Competition
Fintech Competition | Oct 21, 2025
Image: Freepik/kues1
New Data Show How Proportionate Licensing and Capital Models Boost SME Credit and Competition
On October 8 2025, QED Investors and Oliver Wyman released Seizing the Bank Charter Moment (37 page PDF), tracking that fintechs filed more than 20 charter applications in 2025 (3x the number in 2023). The analysis found that obtaining a charter reduced funding costs by 150 to 300 basis points and improved net interest margins by 2 to 4%, driven by access to insured deposits and direct payment rails.
Also, on October 16 2025, Innovate Finance published Challenger Banks: A British Success Story (28 page PDF) confirming that UK challengers now hold about 25% of SME business current accounts and provide 60% of SME lending, up from under 5% seven years earlier.
Bank Charters in United States Regaining Momentum
The report found that fintechs with a bank charter earn an average return on equity of 14 to 16%, compared with 9 to 10% for those still operating as non-banks. The analysis outlined three main ways fintechs can hold a charter: (1) Full national bank charter; (2) Industrial loan company model that allows more flexibility for parent investors; and (3) Limited-purpose charter that does not take deposits but still falls under direct supervision.
The report shows that about 20 new applications had been filed by fintechs and new entrants, at the time of publishing. The Financial Technology Association said this renewal of new fintech charter bank activity can help increase competition. FDIC officials noted that the total number of US banks has fallen from roughly 8,500 in 2008 to 4,500 today, strengthening the case to restore market entry options.
For growing fintechs, the economic break-even point for considering the bank charter pathway is around $5 billion in assets and a return on equity above 12%. Meaning beyond that level, the cost savings from having a charter more than offset the added compliance and capital requirements. Even with about $50 to $100 million in new capital requirements and $8 to $12 million in yearly compliance costs, the charter still provides a net advantage.
See: Ripple Seeks US Bank Charter for Stablecoin Expansion
As an aside, the lower cost of capital for chartered banks comes from structure, not size. Non-banks depend on wholesale funding or partner-bank arrangements that add about 1.5 to 3% to their cost of money because these funds are not insured. And chartered banks fund mainly through insured deposits, giving them a built-in advantage even after paying for regulatory oversight.
United Kingdom Competition Via Proportionate Rules
Innovate Finance report shows that challenger and specialist banks increased their small business lending to £110 billion in 2024 (about $140 billion CAD), which is 4.5% higher than the year before. The British Business Bank reports that these banks now provide about 60% of all lending to UK small and medium-sized enterprises (SMEs), a significant achievement.
However, the report warns that upcoming rules under Basel 3.1 and the Small Domestic Deposit Taker (SDDT) regime could make it harder for smaller banks to lend. They estimate that the new rules could reduce small business lending by up to £44 billion, which they describe as a potential tax on growth. Their Think Challenger proposal calls for more balanced regulation so that smaller, well-managed banks can continue to support small firms and customers while staying safe and sound.
See: UK Open Banking Update and Road to Open Finance
This UK's experience offers clear lessons for Canada; that clear and fair (proportionate) rules can encourage innovation and competition while maintaining trust and stability in the system.
For larger banks, the benefits of collaboration are also visible. Institutions that work with challenger banks or fintechs on digital credit and data analytics see 10 to 15% faster deposit growth compared with those that compete alone.
Canada Has A Narrow Window to Modernize
In July 2025, the federal government began consulting on how to update the country’s deposit insurance system. Open banking including accreditation rules are expected to appear in the fall budget. The Retail Payment Activities Act (RPAA) is now fully in effect, bringing both domestic and international payment firms under the supervision of the Bank of Canada. Together these steps strengthen oversight but do not yet create a path for fintechs to operate as full banks.
For policymakers, both reports referenced in this article are evidence that fair and proportionate rules for capital and licensing help increase competition and small business lending without creating extra risk. Canada could adopt a tiered model where smaller fintech lenders meet simpler capital and reporting standards based on their size and activities, while full deposit-taking banks continue to meet the higher bar.
Canada doesn't yet have a charter pathway for fintechs or smaller non-bank lenders. Introducing a proportionate licensing framework with a transparent and time-bound review process would improve predictability, attract investment, and show that Canada is open to fintech banking innovation.
See: How Competition Powers Canada’s Economic Growth
For fintech founders, timing, a level playing field and the ability to innovate and compete without structural barriers now matters. For investors, the valuation gap is becoming clear. In the US, fintech banks with charters trade at about 1.6 times book value, compared with 1.1 times for similar lenders without charters. A well-defined Canadian charter model could close that gap and attract more long-term domestic investment into fintech banking.
Conclusion
The simple truth is when proportionate rules are clear and scaled to risk, competition improves, credit costs go down, and innovation thrives. The UK and US results show that proportionate regulation produces measurable gains in lending and economic resilience. Canada now has a short window in 2025 to enable domestic fintechs a fair chance to grow and succeed at home.
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
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Bank of Canada’s PSP Registry Goes Live Under RPAA
RPAA | Oct 21, 2025
Image: Freepik
Bank of Canada Registry Highlights Canada-led Retail Payments Fintech Ecosystem Under RPAA Oversight
On October 2025, the Bank of Canada (BoC) launched the first public Registry of Payment Service Providers (PSPs), a key milestone under the Retail Payment Activities Act (RPAA). The registry lists all PSPs formally registered to operate under the new retail payments framework. The database is updated regularly and can be accessed via the Bank’s official site at the PSP Registry.
The BoC also published an active list of PSP applicants currently under review, available at the applicants under review page. These applicants are subject to preliminary oversight requirements but are only required to meet full reporting obligations once registration is finalized.
Early Landscape of Registered Providers
According to the registry’s initial snapshot, a total of 320 PSPs have been registered to date. Of these, 259 (80.9%) are headquartered in Canada, while 43 (13.4%) are based in the United States, and 9 (2.8%) in the United Kingdom. The remainder represent smaller international participation from Singapore, Ireland, Brazil, Latvia, the Philippines, Switzerland, Belgium, and South Korea.
See: CMA Lessons on Competition and Growth for Canada
This mix shows that the RPAA’s first tranche of providers is mostly domestic, reflecting the strength of Canada’s homegrown fintech payments sector while integrating a limited number of major international players. The balance of local and foreign PSPs also highlights the regulatory gateway now established for cross-border payment innovation.
Combined Registry and Applicant Overview
The combined data from the Bank of Canada’s PSP Registry and the applicants under review provides a broader picture of participation under the Retail Payment Activities Act, and deeper insight of the provider demand and distribution.
Canada continues to lead with the majority of registrations followed by the United States and the United Kingdom. This balance reflects both the maturity of domestic fintech operations and growing international engagement with Canada’s payments oversight framework.
See: Canada’s Payments Innovation Push Gains Speed
The table data below summarized by country shows how Canada accounts for roughly 84% of all PSP entities registered or in review, while international applicants from the United States, the United Kingdom, and other jurisdictions signal increasing cross-border participation.
| Head office country | Registered PSPs | Applicants Under Review | Total PSP Entities | Share (%) |
| Canada | 259 | 1095 | 1354 | 84.26 |
| United States of America (the) | 43 | 105 | 148 | 9.21 |
| United Kingdom of Great Britain and Northern Ireland (the) | 9 | 30 | 39 | 2.43 |
| Singapore | 2 | 7 | 9 | 0.56 |
| Hong Kong | 0 | 7 | 7 | 0.44 |
| Latvia | 1 | 3 | 4 | 0.25 |
| United Arab Emirates (the) | 0 | 4 | 4 | 0.25 |
| Estonia | 0 | 3 | 3 | 0.19 |
| Lithuania | 0 | 3 | 3 | 0.19 |
| Spain | 0 | 3 | 3 | 0.19 |
| Nigeria | 0 | 2 | 2 | 0.12 |
| Cyprus | 0 | 2 | 2 | 0.12 |
| Isle of Man | 0 | 2 | 2 | 0.12 |
| Australia | 0 | 2 | 2 | 0.12 |
| Korea (the Republic of) | 1 | 0 | 1 | 0.06 |
| Poland | 0 | 1 | 1 | 0.06 |
| Yemen | 0 | 1 | 1 | 0.06 |
| Sweden | 0 | 1 | 1 | 0.06 |
| San Marino | 0 | 1 | 1 | 0.06 |
| Czechia | 0 | 1 | 1 | 0.06 |
| Netherlands (Kingdom of the) | 0 | 1 | 1 | 0.06 |
| Luxembourg | 0 | 1 | 1 | 0.06 |
| Malta | 0 | 1 | 1 | 0.06 |
| Malaysia | 0 | 1 | 1 | 0.06 |
| Kazakhstan | 0 | 1 | 1 | 0.06 |
| Israel | 0 | 1 | 1 | 0.06 |
| China | 0 | 1 | 1 | 0.06 |
| Belgium | 1 | 0 | 1 | 0.06 |
| India | 0 | 1 | 1 | 0.06 |
| Saint Vincent and the Grenadines | 0 | 1 | 1 | 0.06 |
| Japan | 0 | 1 | 1 | 0.06 |
| Denmark | 0 | 1 | 1 | 0.06 |
| Mauritius | 0 | 1 | 1 | 0.06 |
| Gibraltar | 0 | 1 | 1 | 0.06 |
| Ireland | 1 | 0 | 1 | 0.06 |
| Brazil | 1 | 0 | 1 | 0.06 |
| Philippines (the) | 1 | 0 | 1 | 0.06 |
| Switzerland | 1 | 0 | 1 | 0.06 |
| Cayman Islands (the) | 0 | 1 | 1 | 0.06 |
Regulatory Alignment and Payments Canada Integration
Registered PSPs are now under supervisory assessment by the Bank of Canada and must comply with RPAA requirements on operational risk management, safeguarding of end-user funds, and reporting. Additional guidance and summary documents are available under the Bank’s retail payments supervision.
See: How Competition Powers Canada’s Economic Growth
The registry’s release coincides with the expansion of Payments Canada membership eligibility, effective September 29, 2025. Under this change, registered and supervised PSPs are now eligible to join Payments Canada, alongside credit union locals and clearing system operators overseen by the Bank. The update outlined in the Statement by the Minister of Finance, connects the RPAA framework with Canada’s broader payment system modernization goals.
The live PSP registry is a major step towards a transparent and accountable retail payments system designed to enhance trust and innovation. With a majority of Canadian fintechs now operating under Bank of Canada oversight.
Competitiveness Outlook
As Senior Deputy Governor Carolyn Rogers noted in her recent remarks before the Canadian Club Toronto, competition is a critical force in improving productivity and efficiency across the economy.
While the new registry helps level the playing field by providing a formal pathway for smaller fintechs to operate alongside larger incumbents in a regulated environment, there is limited number of PSPs currently registered under the Retail Payment Activities Act raises questions about Canada’s ability to compete globally in payments innovation. With only 259 Canadian payment providers currently registered, the framework captures a small fraction of the fintech firms operating in the country.
Larger and more established companies are the most likely to meet the Bank of Canada’s supervision requirements, while smaller fintechs face higher barriers to entry. These include detailed operational risk controls, safeguarding of end-user funds, and ongoing reporting costs that can be more challenging to address for early stage businesses.
See: Regulating for Growth by Understanding Innovation
In other markets such as the United Kingdom and the European Union, regulators use tiered systems that allow smaller firms to start with lighter oversight and scale up as they grow. Canada does not yet have this flexibility with the RPAA a single registration and supervision framework for all payment service providers (PSPs). Without an adjustment, the current model could reduce competition and slow the growth of homegrown payment innovators, as global players expand into the Canadian market.
The Bank of Canada’s framework seems stable and transparent but expanding participation over time will be key to ensuring the RPAA supports Canada’s fintech competitiveness.
Outlook
As more PSPs complete the review process, the registry will expand and evolve, providing clearer insight into Canada’s payments ecosystem. For fintech stakeholders, this signals that full RPAA implementation is moving from policy design to operational reality.
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
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Why Policy Scenarios Now Matter for Fintech Strategy
Fintech Risks | Oct 20, 2025
Image: Freepik/Rawpixel.com
Tiff Macklem Fireside Implies Fintechs Must Plan For Multiple Policy Outcomes as Trade and Inflation Risks Rise
On October 16, 2025, Bank of Canada (BoC) Governor Tiff Macklem joined Adam Posen at the Peterson Institute for International Economics (PIIE) in Washington for a public conversation about Canada’s economic outlook and global trade. Macklem said new tariffs, slower trade, and changing supply chains are impacting the Canadian economy.
As a result, he explained that the BoC is now using several possible economic paths instead of one fixed forecast because global uncertainty has become constant. The new approach was outlined in the Bank’s July 2025 Monetary Policy Report and compares what could happen if tariffs stay the same, ease, or rise, and indicates the impact of each option on inflation, output, and interest rates.
Canada’s Four Challenges in a Divided World
Macklem described four forces that will impact the next 10 years for Canada:
1. Trade now clusters around three main hubs led by the United States, China, and the European Union. The United States still dominates world finance even as investors question its safe haven status, and other countries like Singpore pushing above their weight.
See: Data Shows Tariffs Are Threatening Early Stage Innovation
2. Global trade and money flows are becoming uneven again (a recurring structural issue). Some regions keep running big surpluses while others, including North America, rely more on borrowing. Macklem said this growing imbalance adds risk to the global financial system and limits how much small economies like Canada can control their outcomes.
3. He said higher tariffs and unpredictable policy weaken demand, raise costs, and reduce the efficiency of supply.
4. Canada is feeling these pressures through weaker exports, slower investment, and lower productivity growth, outcomes that no interest rate decision can reverse.
From One Forecast to Several Possible Futures
Traditional forecasts assume one view of the world. Macklem explained that the Bank now works with three possible paths. One assumes current tariffs remain. One assumes tensions ease. One assumes further escalation.
See: Stephen Poloz’s Plan to Fix Canada’s Economy
The aim is to keep inflation expectations stable while helping households and businesses adjust to uncertainty. For fintechs and lenders, strategic business planning must now be built around several credible economic futures too, and not rely on a single base case. Funding, pricing, and credit policies should be tested against each path to stay resilient no matter which reality unfolds.
Trade Uncertainty and Financial Risk
Macklem explained that new tariffs and complex rules are adding cost and delay at the Canada–U.S. border, disrupting supply chains. Firms that once relied on integrated supply chains now need new suppliers, new routes, and stricter compliance to maintain trade eligibility. That adds cost and delays that ripple across sectors. Even service firms are affected through their clients and vendors.
For fintechs offering trade finance, payments, or working capital products, this environment creates opportunity but also exposure to new risks. There is demand for tools that make international transactions faster and more transparent, but also new risks tied to client sectors under pressure.
Competitiveness Through Productivity and Reform
The Governor stressed that raising productivity is now essential. He pointed to faster project approvals, fewer internal trade barriers, and stronger transport links as priorities to open new pathways.
See: Canada’s Public Sector Costs and Productivity Gap
The Bank’s recent reports say that fixing long-term barriers in the economy like slow project approvals or weak competition can improve growth more than changing interest rates (aka, monetary policy).
Fintechs can build solutions that help reduce administrative frictions, such as digital identity and onboarding tools can eliminate duplication between provinces. Compliance automation and regulatory technology can shorten approval times. Procurement platforms can help smaller firms reach national customers. These are examples of direct responses to the barriers that Macklem said must be addressed.
Neutral Rate, Cost of Capital, and Planning
Macklem also spoke about the neutral interest rate which is the level that keeps inflation stable without stimulating or slowing the economy. He said it may not align between Canada and the United States because productivity growth and fiscal policies differ. That divergence affects long term funding costs and the flow of investment capital.
See: How Competition Powers Canada’s Economic Growth
For fintechs that borrow in U.S. dollars or rely on foreign investors, funding costs and access to cash can change even if central banks don’t move rates. The safest approach is to plan for different interest rate outcomes instead of assuming Canada and the U.S. will always move together.
Digital Money and the Priority of Trust
When asked about digital assets, Macklem said the Bank’s work on stablecoins and a possible central bank digital currency focuses on preserving trust and value. The principle of the singleness of money means that one Canadian dollar must hold the same worth everywhere, whether in cash or digital form.
Stablecoin systems must avoid runs and guarantee convertibility. For fintech developers and innovators, it means creating systems that work within the regulated financial system, not outside. The most promising area is making international payments faster, cheaper, and clearer, while ensuring every digital dollar is fully backed and can always be redeemed.
Why Case Planning Matters For Fintech
Uncertainty is no longer an exception but a normal condition for business and policy. Every possible trade path changes inflation, growth, and the cost of capital. Fintech founders, investors, and lenders must build this thinking into their models and operations. That includes ready plans for each scenario, triggers for risk adjustments, and playbooks for client support when tariffs or rates move unexpectedly.
See: The Crisis Canada and Fintech Can’t Afford to Waste
The firms that incorporate this discipline and governance will not only manage volatility better but also build trust with investors and customers who highly value predictability in uncertain times.
Outlook
It's time for Canada to demonstrate adaptability, and treat uncertainty as a given design factor instead of a sudden surprise. Canada’s financial ecosystem, from established lenders to digital innovators, must treat uncertainty as a normal part of planning. Fintechs that adopt scenario planning, streamline processes, and improve real economy efficiency can help Canada compete globally even as the trading system fragments.
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
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Canada Launches First National Anti-Fraud Strategy
Anti-Fraud | Oct 20, 2025
Image: Freepik
Ahead of Budget 2025, Canada Unveils a National Anti-Fraud Strategy and New Financial Crimes Agency
On October 20 2025, the Department of Finance Canada released plans for a National Anti-Fraud Strategy that will be introduced through Budget 2025. The initiative is designed to combat growing financial fraud, scams, and economic abuse that affects millions of Canadians every year.
According to the Canadian Anti-Fraud Centre, Canadians lost $645 million to fraud in 2024 (almost a 300% increase since 2020), noting only 5-10% of scams are ever reported. The government says the new strategy aims to reverse that trend through prevention, data sharing, and stronger oversight across financial and digital channels.
Honourable Gary Anandasangaree, Minister of Public Safety:
“Today’s financial criminals make use of every modern tool at their disposal to try to defraud Canadians. Our government’s new Strategy is tackling head-on the threat posed by these fraudsters. A stand-alone Agency to fight financial crime is critical to maintaining confidence in our financial system, and keeping people, and their money, safe.”
Planned Rule Changes and New Enforcement Agency
As an early step, Budget 2025 will propose amendments to the Bank Act that would require banks to:
See: When Fraud Controls Freeze Millions of Bank Accounts
- Establish policies to detect and prevent consumer-targeted fraud
- Obtain express consent before enabling account transfer or payment features that could be exploited by scammers
- Allow customers to adjust transaction limits and disable unwanted account capabilities
- Collect and report fraud data to the Financial Consumer Agency of Canada
The changes are expected to strengthen consumer control and protection, especially for seniors, newcomers, and other vulnerable groups.
The government also intends to create a new Financial Crimes Agency by spring 2026. This federal agency would lead investigations into money laundering, organized crime, and online fraud, bringing together financial, legal, and law enforcement expertise to recover illicit funds. Rules to formally establish the agency is expected in 2026 after consultation with the Ministers of Justice and Public Safety.
Addressing Economic Abuse
The government will also work with banks and stakeholders to develop a voluntary Code of Conduct for the Prevention of Economic Abuse. The code will set clear expectations for how financial institutions identify and respond to economic abuse, a type of financial control and coercion that often targets women and seniors. Work will be guided by principles of victim focused support, collaboration, and financial empowerment.
See: Stingray Security Wins ScamShield Challenge
Banks (perhaps with the help of financial technology providers) will play a key role as front-line institutions that can detect early signs of financial control or distress and provide safe guidance for clients to regain independence.
Implications for Canada’s Fintech Ecosystem
For fintech companies, the emerging anti-fraud legislation means there's a strong focus on consumer trust and financial resilience. Stricter fraud controls for banks will also apply to their fintech partners through compliance expectations and data standards.
Fintech firms that build strong fraud detection and digital ID tools will have an advantage, finding it easier to work with banks while everyone benefits from a safer financial system. Companies that are transparent, secure, and possess strong governance will earn public and institutional trust.
See: Anatomy of Rising Deepfake Scams in Crypto and Fintech
The creation of a Financial Crimes Agency also opens new opportunities for collaboration between the public and private sectors on cyber risk, data sharing, and proceeds of crime recovery.
Conclusion
While the full framework, funding, and timeline details will be presented at Budget 2025, protecting Canadians from financial fraud is a national priority, raising the minimum bar for a trusted digital economy.
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
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