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
Maximize Your ROI: How Financing the Perfect CRM Can Transform Your Business
May 21, 2025
Image: Freepik/zaozaa09
In today’s business, customer relationships are of utmost importance. Indeed, the proper choice of CRM (Customer Relationship Management) can make a difference. It assists in analyzing leads, selling effectively, and increasing clients’ satisfaction. But here’s the catch: top-tier CRMs can be pricey. And that is the reason for financing.
Are you aware that 91% of organizations with over 10 employees now use CRM systems in the United States? And it’s paying off. Businesses using CRM software see an average of $8.71 in benefits for every dollar invested. However, many small—to mid-sized companies are reluctant to incorporate cloud computing strategies due to the initial associated costs.
What if you didn’t have to break the bank to find the right CRM? Today, more than ever, funding solutions exist to facilitate the acquisition of a tool that expands a company’s horizons. It is expected that in 2025, even more companies from the USA will use CRM that includes AI features to grow their business.
Bringing a suitable example, in 2024, Magnolia Payday Loans achieved remarkable growth, increasing their business by an impressive 67% thanks to the strategic adoption of Customer Relationship Management (CRM) systems. By implementing CRM, Magnolia Payday Loans streamlined customer interactions, improved service personalization, and improved overall efficiency. The system allowed them to understand better customer needs, track loan applications, and offer tailored solutions.
Reading this article, you will understand how to optimize your ROI and how financing the right CRM can revolutionize your business. Whether you’re a start-up or in the growth phase, the time comes to see how good financial management today will pay off in the future. Let’s get started.
How Does CRM Help Business Growth?
CRM (Customer Relationship Management) is a powerful tool for business growth. It helps companies manage interactions with current and potential customers. Here’s how CRM can boost your business:
Better Customer Understanding
CRM stores all customer data in one place. You can track your customers' likes, buying habits, and needs. With this info, you can personalize your offers and improve customer experience.
Improved Customer Relationships
CRM helps you stay in touch with clients by tracking their preferences and interactions. Regular follow-ups, personalized emails, and timely responses make customers feel valued.
Increased Sales
CRM helps streamline sales processes. It allows you to identify high-value leads and prioritize them. With all sales data at your fingertips, sales teams can close deals faster and more effectively.
Better Communication
With CRM, teams can share customer information across departments. This ensures everyone is on the same page and knows the customer's journey, whether in marketing, sales, or support.
Efficient Marketing Campaigns
CRM helps you segment customers based on their interests and behavior. This makes it easier to run targeted marketing campaigns that are more likely to convert.
Automated Tasks
CRM tools can automate repetitive tasks like sending follow-up emails or scheduling meetings. This saves time and allows employees to focus on more important tasks.
Data-Driven Decisions
CRM gives you insights through reports and analytics. These can help you spot trends, measure performance, and make informed decisions to improve strategies.
Customer Retention
Keeping existing customers is cheaper than gaining new ones. CRM helps improve customer satisfaction by addressing issues quickly and maintaining strong relationships.
Improved Collaboration
A good CRM facilitates team collaboration. It allows employees from different departments to work together smoothly and provides a seamless customer experience.
Scalability
As your business grows, CRM grows with you. You can add new features, integrate other tools, and scale your customer management system to fit your needs.
The Cost of CRM Implementation: Statistics of 2024
Depending on company size, implementing CRM costs a company, on average, between $25,000 and $500,000 for purchasing the software and the basic setup. Small businesses must part with anything between $10,000 and $50,000, while big companies could spend even more.
The primary costs include software acquisition, product modification, user education, and maintenance. They indicate that the additional customization of a CRM system for business requirements would take an additional $20,000 – 50,000. The next cost is human resources training – you should budget between $1,000 to $5,000 per worker.
The other major expense is data migration. Shifting existing data to the new CRM system can cost as much as $5,000 to $30,000.
Surveying in 2024, 60% of companies replied that they realized their costs of implementing the CRM tool were higher than they initially anticipated. Again, 75% of the cost notes that it enhances customer relations, and 50% report an upturn in sales during the first half year.
How Can Financing Help Businesses Implement a CRM System?
Financing can be a game changer for businesses implementing a CRM system. A good CRM (Customer Relationship Management) system helps you organize customer data, track sales, and improve communication. However, CRM systems can be expensive, especially for small businesses. This is where financing comes in.
Instead of paying upfront for the entire system, businesses can get a loan or choose a payment plan. This spreads out the cost over time, making it easier to manage cash flow. Financing lets businesses get the CRM they need without breaking the bank.
For many companies, financing also means access to better systems. With the right loan, businesses can afford a CRM with advanced features that might have been out of reach. This can help with sales automation, marketing tools, and customer service management, essential for growing a business.
Another advantage is that financing options often have low interest rates, making the investment more affordable in the long run. Some companies also offer special deals, like deferred payments or no interest for the first few months, making starting even easier.
In short, financing allows businesses to invest in a CRM system now and pay later. This helps improve efficiency, enhance customer relationships, and ultimately grow the business without the stress of upfront costs.
Tips on Maximizing ROI After CRM Implementation
Here are some tips to maximize ROI after CRM implementation:
- Train Your Team Well. Ensuring that your team understands how to use the CRM is very important. Provide seminars and assistance because they need to maximize its usage.
- Use Automation. Automation eliminates the need for repetitive calls, emails, and entries, making work faster and avoiding the need for corrections.
- Monitor Your Customers. The CRM can also capture customer behavior and preferences. This helps add a human touch to service delivery and increases customer loyalty.
- Ensure Your Data is Anytime Current. Your customers’ information is valuable and needs to be clean and up-to-date. This way, you always use the correct information, and regular updates apply to this process.
- Measure Success. Having goals and objectives for planning, monitoring, and evaluating the implementation practices. CRM business metrics should include sales and customer satisfaction, measured through CRM analytics.
- Encourage Feedback. Poll your team and customers about how the CRM is serving them. This feedback should enhance your processes.
Monitor Your Success of a CRM Investment
Financing the right CRM system is a strategic investment that can significantly boost your business's efficiency, customer engagement, and overall profitability. By carefully selecting a CRM that aligns with your specific needs, you can streamline operations, enhance customer satisfaction, and maximize your return on investment. However, the success of your CRM investment doesn’t stop at implementation.
See: Canada’s Productivity Depends on Intangible Tech Adoption
It's crucial to monitor and measure its impact continually. Regularly assess key metrics such as customer retention rates, sales performance, and user adoption to gauge the effectiveness of your CRM. Additionally, collecting feedback from your team and customers will provide valuable insights into areas for improvement, ensuring that your CRM evolves with your business. By tracking your CRM’s performance consistently, you can ensure it continues to drive growth and deliver tangible results.
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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What Gen Z and Millennials Expect From Fintech
Report | May 20, 2025
Image: Deloitte 2025 Gen Z and Millennial Survey
Gen Z and Millennials Are Rewriting the Fintech Rulebook
The 14th edition of the annual 2025 Deloitte Global Gen Z and Millennial Survey provides a global snapshot of generational attitudes towards work, money, technology and values, offering fintech founders, banks, credit unions, and policymakers core insights into what's driving the new economy and markets.
By 2030, Gen Z and millennials will represent nearly 75% of the global workforce. These generations are not just using financial technologies. They are building it, and reverse engineering what problems they should solve while establishing new expectations for how financial service tools operate.
See: A Fintech Survival Guide to Understanding Gen Z Finance
The self-administered online survey data was collected from October 25 and December 24, 2024, gathering responses from a total of 23,482 respondents including 14,751 Gen Zs (born 1995 - 2006) and 8,731 millennials (born 1983 - 1994) across 44 countries, including regions such as North America, Latin America, Western Europe, Eastern Europe, the Middle East, Africa, and Asia-Pacific.
Gen Z and Millennial Fintech Trends
1. Financial insecurity is a top priority
Young workers are very anxious about money.
- 48% of Gen Zs and 46% of millennials say they do not feel financially secure
- 52% of both groups live paycheck to paycheck, and over 33% struggle with basic monthly expenses
- 41% of Gen Zs and 44% of millennials are unsure whether they’ll be able to retire with financial comfort
See: Fintech Trends & Predictions Across Generations in 2025
These data points highlight the need for fintech products go well beyond basic budgeting dashboards. Gen Z and millennials need fintech tools to help them achieve financial resilience, such as income stabilization or smoothing, flexible savings tools, automated rent/bill buffers, and fair access to emergency funds. Financial service providers that can help reduce voltaility, and not just optimize credit scores, have an opportunity to earn trust and loyalty.
2. GenAI is already embedded in how they work and think
Adoption of generative AI tools is already a daily routine for young professionals.
- 57% of Gen Zs and 56% of millennials use GenAI tools in their daily work
- About 30% of each group use AI most or all of the time
- 74% of Gen Zs and 77% of millennials believe AI will significantly change how they work within the next year
These users are engaging with and building fintech products through an AI-first lens. They expect tools to respond in natural language, deliver almost instant relevant insights without friction, and adapt quickly. Static interfaces and dated workflows will lose ground quickly.
See: Why No Code AI Agents Matter for Fintech in Canada
Fintech platforms in particular need to integrate GenAI not just in the back-end system but into product design and customer experience because these cohorts are fluent in AI which is quickly becoming the standard in how they source, think and consume.
3. They prioritize purpose and values over promotion and perks
Gen Z and millennials care less about climbing corporate ladders and more about doing work that aligns with their values.
- Only 6% of Gen Zs say their main career goal is to reach a leadership role
- 44% of Gen Zs and 45% of millennials have left jobs that lacked purpose
- 41% of Gen Zs and 40% of millennials have rejected employers due to ethical or values misalignment
For fintech employers, this creates both risk and opportunity. A strong mission with aligned values can attract high performers but the opposite will scare talent away quickly. To attract and retain the next generation of fintech talent, companies must offer more than good compensation. They need clear values, meaningful impact, and room for personal growth.
4. Education paths are diversifying, and skills matter more than credentials
Formal degrees are no longer the default path into the fintech sector.
- 31% of Gen Zs and 32% of millennials chose not to pursue higher education.
- 70% of Gen Zs and 59% of millennials are building career skills at least once a week.
- The majority are doing this on their own time, outside of work hours.
See: Should Fintechs Design for People or AI Agents?
There's more acceptance and shift now towards non-traditional education from bootcamps and peer networks to self-teaching, which has huge implications for hiring, funding, and human capital development. This means founders, operators and technical resources, may not originate from familiar backgrounds. Fintech leaders and investors need to adapt recruitment and due diligence models to focus more on traction, experience, and skills - and not just degrees.
5. Customer values are driving what products get built and used
Environmental and ethical values are a key part of how decisions are made.
- 65% of Gen Zs and 63% of millennials say they are willing to pay more for environmentally sustainable services
- 23% of Gen Zs and 22% of millennials have researched a company’s environmental practices before accepting a job offer
- Almost 50% say they’ve left or declined work that didn’t match their personal ethics
See: Consumer Trust and Trends in US Digital Banking
Social and environmental alignment is becoming a core user expectation, not a brand differentiator. Fintechs must design for transparency and shared impact from day one.
Outlook
Fintech companies and financial institutions must design and deliver intelligent products with purpose and transparency that meet the moment of Gen Z and millennials who are under financial stress, fluent in AI, and prioritize values and ethics. The opportunity is to not just help these generations but to earn their trust and grow with them to create the next iteration of smart, modern, and purposeful 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 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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CSA Expands LIFE Exemption to Boost Public Capital Raising
Capital Raising | May 19, 2025
Image: Freepik/rawpixel.com
CSA Expands Capital Raising Options for Listed Issuers, Challenging Traditional Channels
On May 14, 2025, the Canadian Securities Administrators (CSA) announced that listed companies (public issuers) can now up to a maximum of $50 million over 12 months, directly from the public without a prospectus or dealer involved. This allows listed companies to bypass both the exempt and traditional public markets by opening up a new direct-to-retail financing path that will impact how early stage public companies raise funds in Canada.
So as of today, listed companies on Canadian exchanges can use the LIFE exemption (amended within National Instrument 45-106 Prospectus Exemptions) to raise the greater of $25 million or 20% of their market capitalization, up to a maximum of $50 million within a 12-month period. This is an increase of 5 times the previous $10 million cap.
LIFE allows any investor including accredited, institutional and retail now too, to participate in these direct to public offerings, and is the first capital raising exemption in Canada that allows deals that are exempt from prosectus requirements to be made available to the general public by listed companies.
See: CSA’s 2024 Investor Index. What Fintechs Need to Know
Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission:
“This change reflects our ongoing work to support the Canadian capital markets to make it more efficient and cost-effective for companies to raise capital and grow in Canada. We are committed to a Canadian regulatory environment that is responsive to the changing needs of market participants, while upholding strong investor protections.”
How LIFE Disrupts Traditional Capital Formation
Although the LIFE exemption launched in 2022, the $10 million funding cap restricted its uptake which left most small-cap issuers to continue to rely on private placements or brokered prospectus offerings. The May 2025 expansion now gives public companies in sectors like tech, mining or cleantech, the option to use LIFE as a faster, cheaper alternative to dealer-broker facilitated capital raises.
See: Equity Crowdfunding Breaks Records in Canada
These public companies will no longer be required to go through investment dealer syndicates or use the public exchange order book to issue securities. Instead, LIFE now allows them to offer subscriptions directly to investors with shares becoming freely tradable shortly after issuance.
New Service Model Opportunities
These LIFE exemption changes could trigger the emergence of new service models. Equity crowdfunding platforms like FrontFundr and Equivesto, which traditionally serve private companies, could evolve to support LIFE offerings by listed issuers through digital subscription tools, onboarding workflows, and marketing campaigns.
Legaltech startups are automating regulatory filings, while investor relations and compliance firms are helping issuers engage retail audiences across digital channels. For both investment crowdfunding firms and traditional dealers, the challenge is the same, which is to adapt to a decentralizing capital raising environment or risk losing relevance. Companies that offer retail services, pre-during-post engagement will be well positioned to nurture and capture this emerging deal flow.
Implications for Stakeholders
Public issuers will potentially benefit from faster and cheaper access to capital. Retail investors will now have access to public placements, which were once reserved for investment syndicate insiders. Dealers will face growing pressure to redefine their role. Exchanges will likely see reduced transparency during capital formation cycles. Regulators will need to incorporate more regulatory tech (RegTech) tools to improve oversight as direct to retail exposure grows.
See: How Fintechs Are Unlocking Value in Private Markets 2024
When the original LIFE exemption launched, some investor protection advocates were concerned about unsophisticated investors (aka retail investors) would be at greater risk without dealer due diligence or a prospectus, such as an increase in pump and dump schemes, and price inefficiencies.
Outlook
The expanded LIFE exemption democratizes early stage investment for public issuer but it also removes traditional safeguards (ie., gatekeepers). Whether or not this reform improves market participation or weakens investor confidence will depend on how well stakeholders adapt to their new reality. With numerous of modernized fintech, legaltech, and wealthtech platforms existing today, the future of digital-first public financing (dealer optional) could very well be led by an army of retail investors who have been locked out of high growth placement opportunities for too long.
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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Brutal Kidnappings Target French Crypto Figures
Crypto | May 16, 2025
Image: Freepik/Wirestock
Wave of Crypto Kidnappings Shakes France’s Fintech Sector and Global Reputation
A series of violent kidnappings has rocked France’s crypto sector, prompting emergency government action and raising global concern about the country’s safety for fintech entrepreneurs. On May 13, 2025, masked men tried to abduct the pregnant daughter of Pierre Noizat, co-founder of French Bitcoin exchange Paymium, along with her toddler. The attack took place on a busy street in Paris and was captured on video. The victims screams drew help from passer-byes including a shopkeeper who threw a fire extinguisher at the attackers white van, ultimately stopping the abduction. The woman’s husband was also beaten during the struggle. Although the kidnapping was botched, it was the third high profile incident involving French crypto figures in less than 6 months.
See: Anatomy of Rising Deepfake Scams in Crypto and Fintech
Earlier in May, the father of a Paris-based crypto entrepreneur was abducted while walking his dog. His kidnappers severed a finger and sent the video to his son while demanding a ransom between €5 million and €7 million. The man was rescued three days later, and according to reports, at least five suspects were arrested.
On January 21, 2025, David Balland, co-founder of Ledger, and his partner were kidnapped at their home in central France. Balland was also violently attacked during his captivity and was later found with one finger missing.
A National Emergency for Crypto Safety
French Interior Minister Bruno Retailleau called an emergency meeting with fintech and crypto leaders on May 16, 2025. He promised stronger cross-border enforcement, police support for targeted families, and security checks at the homes of crypto executives.
Eric Larchevêque, Co-founder Ledger’s co-founder:
"In last 12 months saw 50 attacks around the world targeting people involved in cryptocurrency. Of those, 14 were in France. There’s a real problem.”
See: $4.3M in Crypto Scams Triggers Operation Avalanche
Security experts blame a mix of high crypto visibility, blockchain transparency, and weak personal data privacy. Many French founders still live locally and have families in public roles. Some have posted wallet addresses or wealth milestones online and inadvertently turning themselves into targets.
Global Fintech Perception at Risk
France has worked hard to attract and support crypto innovation, welcoming startups under its MiCA licensing regime and positioning Paris as a global hub for Web3 development. But these crimes are now threatening to reverse that progress, and according to Sifted, multiple companies have already started relocating key staff and executives abroad due to physical security risks.
The crypto community is now pushing for digital identity protection tools, anonymized ownership registries, and encrypted communication channels for founders and executives. Some are turning to private security firms and changing daily routines to avoid patterns.
Conclusion
The violet kidnappings is a reputational crisis for France's innovation economy and a wake-up call to high profile fintech and crypto founders globally. The French government, must now prove that it can protect its most promising entrepreneurs before the damage is long reaching.
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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Canada’s Competition Plan Is Getting More Serious
Competition | May 15, 2025
Image: Competition Bureau 2025 2026 Annual Plan
Canada's Competition Watchdog is Upping Its Response to Rising Costs, Weak Productivity, and Digital Market Dominance
On May 15, 2025 the Competition Bureau released its 2025 to 2026 plan and they intend to move earlier, faster, and deeper into markets that matter to Canadians, such as grocery pricing, housing, banking, telcom, artificial intelligence, and environmental claims. Instead of reacting after harm is done, the Bureau plans to use the new, more modernized, legal tools at its disposal to focus on affordability, digital power, and slow innovation.
Cracking Down on Hidden Fees and Market Power
With expanded powers from recent updates to the Competition Act, investigators can act more quickly and use more data to build stronger cases to tackle problems like drip pricing and greenwashing. They can target areas where high market concentration makes life less affordable, working to prevent harmful behaviour before it becomes a crisis.
Pushing Government to Rethink the Rules
The Bureau is already pushing governments across the country to remove rules that hold back competition. They encourage use of its Competition Assessment Toolkit, which is designed to help policymakers identify and fix outdated regulations.
See: Will Competition Reforms Boost Fintech? Inside the Fight
The Bureau will also launch a new market study this year and expand its work on emerging issues like algorithmic pricing and data portability. They will also make compliance easier for small businesses with tools like the Compliance Hub and Compliance Bootcamp. Promoting competition is now mandatory, and part of how the Canadian government can help grow the economy and protect consumers.
Modernizing the Bureau
To support all of the changes, the Bureau is hiring staff with digital skills, updating its systems to manage large volumes of data securely, and training teams to use AI and new enforcement tools. There is also a revitalized focus on diversity, mental health, bilingualism, and accessible leadership training. The Bureau plans to work more closely with domestic and international partners, and play a key role during Canada’s G7 presidency.
Competition Matters
This year’s plan shows that Canada is taking competition more seriously. It's not just about enforcement anymore; it's about using smarter tools, faster action, and better policy to lower costs and open up markets.
See: UK Banking Competition Remedies, Lessons for Fintech Growth
For fintechs and startups, this creates a chance to grow in a market environment that rewards fair play and transparency. And to incumbent players relying on hidden fees or dominant behaviour, the pressure is rising to adapt.
Learn more: download the 7 page PDF '2025-2026 Annual Plan: Strengthening Competition in a Changing 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 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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Fintechs Face Rising SaaS Security Risks, JPMorgan CISO
Cybersecurity | May 14, 2025
Image: Freepik/DC Studio
Third-party Integration Flaws Are Exposing Fintechs to Spreading Attacks
Patrick Opet, JPMorgan Chase’s Chief Information Security Officer, has dropped a rare public warning that the modern SaaS (Software-as-a-service) model is enabling cyberattacks and embedding systemic risk into the global economy. His message is that the security architecture is breaking down, and software providers are not doing enough to fix it. Below are some urgent quotes from his discourse and why they matter for Canadian fintechs, investors, and regulators.
5 Select Quotes From Opet's Letter
1. “SaaS has become the default... embedding concentration risk into global critical infrastructure.”
Many fintechs are using the same core SaaS vendors for payments, data, and automation, exposing them to a single point of failure. If one of these vendors is compromised, the effects can spread fast like wild fire on a dry summer's night. For fintech startups, the risks may be inherited without full visibility.
See: India Biometric Data Breach Highlights Cybersecurity Risks
2. “Over the past three years, our third-party providers experienced a number of incidents... requiring us to act swiftly and decisively.”
Canadian fintechs with lean security teams need contingency plans for third party supplier compromise and must monitoring vendor behaviour or risk the full wrath of a serious attack that will disrupt operations, result in data theft or leakage, fraud and financial loss, regulatory and legal exposure, reputational damage and even cascading or 'fourth party' risks. Even a global bank must isolate vendors during incidents. Read OSFI's Guidance here: Third-Party Risk Management Guideline.
3. “Fierce competition among software providers has driven prioritization of rapid feature development over robust security.”
Security is often sacrificed for speed. Fintechs should require vendors to provide (1) strong and secure default settings, (2) regular third-party audits, and proof or evidence of strong internal security programs such as SOC 2 Type II or ISO/IEC 27001 certification.
See: Perplexity’s Security Flaws A Red Flag for Industry
4. “Modern integration patterns dismantle essential boundaries... relying on overly simplified interactions between third-party services and firms’ sensitive internal resources.”
OAuth tokens and API integrations are often misused, allowing third and unwanted parties to access internal systems. Without strong segmentation and logging, attackers can move quickly once access is gained. Microsoft Threat Intelligence recently confirmed state actors are now targeting common SaaS apps to infiltrate customers.
5. “The most effective way to begin change is to reject these integration models without better solutions.”
Canadian fintechs should ensure procurement policies require secure integration design, advanced authorization models, and greater transparency from vendors. Startups should reference the Canadian Center for Cybersecurity Top 10 IT Security Actions for implementation guidance.
What This Means for Canadian Fintechs
SaaS brought convenience and speed but also concentrated risk across fintech infrastructure. For smaller Canadian firms who often lack internal security engineering, the consequences of a poorly or unsecured SaaS integration can be severe. This warning should not be ignored.
See: New Cyber Threats Financial Service Firms Need to Know
Fintech leaders should:
- Audit all third-party SaaS integrations especially those with read or write access to sensitive systems. The CSA's Staff Notice 33-321 offers baseline expectations for registrants
- Require vendors to support multi-factor authentication, token expiration, and role-based access controls
- Push for data residency transparency and vendor dependency disclosures, including fourth-party services
- Include security breach notification clauses in service agreements
- Explore secure options such as customer-managed encryption keys, confidential computing, and bring your own cloud models
Final Thought
OSFI and the CSA have made it clear that third party oversight is now a priority, so fintechs can expect questions on cybersecurity controls and operational resilience during regular reviews. SaaS is here to stay but without stronger default security and safer integrations and oversight, it'll remain a growing liability.
See: Can Cloned Voices Crack Bank Security? Need to Know
Fintech startups and scale-ups cannot rely on vendors to lead. Security must be a shared responsibility across the ecosystem, and it begins with better architecture, more transparency, and smarter procurement.
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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Canada’s Productivity Depends on Intangible Tech Adoption
Economy | May 13, 2025
Image: Freepik
Canada Needs a National Strategy to Support Tech Adoption and Plug SR&ED and CDAP Gaps
Canada has a productivity problem. According to a 2023 OECD Productivity Dashboard report, Canada's GDP per hour worked is about 22 percent below the U.S. level and continues to trail other advanced economies. One key reason is the slow adoption of advanced digital tools, especially in sectors where Canada underperforms in productivity. These tools are not heavy machines or physical infrastructure. They are intangible technologies like software platforms, AI systems, proprietary data tools, and fintech infrastructure.
See: Reversing Canada’s Digital Economy Productivity Decline
While the federal government spends billions on innovation, most programs incentivize and reward the invention, not implementation. This leaves many small businesses without the supports the need to adopt new technologies that already exist. To improve Canada's productivity, we need a strategy that supports the adoption of intangible tech across sectors, regions, and company types and sizes.
The Adoption Gap Should Not Be Ignored
Canada’s largest innovation and tax incentive program is the Scientific Research and Experimental Development (SR&ED) that invests $3.9 billion annually in over 16,000 companies (largely SMEs) with federal and provincial tax relief, according to this government of Canada consultation paper. However SR&ED focuses on experimental development so it excludes most real world tech use cases, such as a company that wants to implement a fintech platform, automate business processes using AI, or strengthen its cybersecurity infrastructure.
See: Canada’s AI Competition Report Faces Big Tech Challenges
Although these investments would improve efficiency, reduce risk, and increase competitiveness, they are not considered 'innovation' under the current SR&ED criteria. It creates a large policy gap where most of Canada's economy relies on services and the businesses who run them depend on intangible tools like software and data systems but they get little help to actually implement the tools for use.
A 2024 report from Statistics Canada confirms that despite strong innovation capacity, Canada’s productivity growth has been trending downward since 2000, largely due to weak capital investment in 'non-residential capital or intangibles. Investment in intellectual property products in Canada has declined relative to GDP. Investment per worker in 2022 was nearly 20 percent below 2014 levels. The impact of not investing in patents, data systems, and other non physical assets that drive modern growth is workers have less access to modern tools, infrastructure and technology to work efficiently.
CDAP Only Helps With Basic Tools
The federal government launched the Canada Digital Adoption Program (CDAP) in 2022 to support digital adoption broadly, and announced $4 billion program spend over several years, aiming to help 160,000 businesses improve their capabilities. As of March 2025, Innovation, Science and Economic Development Canada (ISED) reports that CDAP reached 71,000 businesses with the program disbursing $1.2 billion in grants, loans, and wage subsidies.
CDAP has two streams:
- $2,400 micro-grant for e-commerce called 'Grow Your Business Online'
- $15,000 for digital adoption plans to 'Boost Your Business Technology', and up to $100,000 in zero interest loan via BDC
While CDAP has been helpful, its impact is limited to basic tech upgrades like website redesign, point of sale systems, and customer relationship management tools.
CDAP doesn't cover more advanced intangibles like integrating AI systems, embedding fintech solutions or cloud-based tools that help manage financial and operational risks.
See: Canada’s Innovation Paradox – Strong Start, Missing Impact
CDAP is also a temporary program (new applications are not currently being accepted).
There's also no permanent policy structure to support long term tech adoption across sectors, and as a result does not fill the policy gap created by SR&ED. It's worth mentioning that non-profits like NCFA does not qualify for CDAP unfortunately.
Canadian Government Should Accelerate Intangible Tech Adoption
OECD 2021 evidence from peer economies is clear. When governments support the adoption of intangible technologies, they get strong returns in productivity, exports, economic resilience, and a wider diffusion across sectors amplifies the benefits. Canada is a service driven economy with IP-rich capacity, so helping companies to adopt and use the tools that already exist is just as important as helping invent new technologies. Canada needs a national strategy that supports intangible tech deployment/adoption as a core driver of innovation and productivity. Below are some thought starters:
1. Create a Tech Adoption Credit for Intangibles
Introduce a refundable tax credit to help companies adopt advanced intangible tools. Eligible costs should include things like software licensing, cloud migration, AI implementation, fintech integration, training, and cybersecurity.
2. Modernize SR&ED to Support Deployment
Update SR&ED rules so that it recognizes process innovation and platform integration as eligible activities. This would help firms who solve real problems through adaptation and deployment, not just invention.
See: National Plan to Unlock Growth and Innovation
3. Use Public Procurement to Drive Market Demand
The federal government should act as an early adopter and buyer of Canadian fintech, AI, blockchain, and other advanced intangible technologies. This would boost firms and provide a path to scale while establishing best practice use cases that reduce adoption risk.
4. Build Talent and Support Infrastructure
Canada should fund training and educational programs, microcredentials, and regional adoption hubs (not just public ones) to help companies integrate intangible technologies into their operations. These supports are especially important outside major urban centres.
What Other Countries Are Doing
Other countries are already moving faster to close the adoption gap:
- Germany offers digital adoption grants through the Digital Jetzt program, supporting both technology and training. Over €3 billion has been committed to help SMEs adopt advanced software and integrate platforms into daily operations.
- South Korea launched the Digital New Deal, that will invest $44.8 billion USD by 2025 to help SMEs implement data platforms, AI, and cybersecurity tools.
See: Resources for Canadian Resiliency and Competitiveness
- Singapore provides targeted funding through its SME Go Digital program. It supports deployment of intangible assets like SaaS platforms and builds industry specific adoption roadmaps.
- United Kingdom launched a Technology Adoption Review to identify and address barriers businesses face in adopting digital and AI tools. The UK also funds adoption through programs like smart grants, knowledge asset grant fund, and scale-up innovation loans.
The above government examples are just a few of many where they are funding not just discovery but actively paying to accelerate the digital adoption because they know it improves productivity, economic robustness and growth, and creates long term national competitiveness.
Conclusion
Canada has the tools, talent, and innovation ecosystem to compete globally but risks continued productivity decline without targeted support for adopting intangible technologies. The Canadian government at all levels must close the adoption gap by creating permanent policy supports and investments, modernize outdated incentives like SR&ED, and recognize the deployment and adoption of intangibles as critical economic infrastructure.
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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