Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Consultation | Sep 25, 2023
Image: Unsplash/Alexander Grey
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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Digital Public Infrastructure | Sep 11, 2023
The G20's philosophy, "Vasudhaiva Kutumbakam," which translates to "One Earth, One Family, One Future," underscores a commitment to equitable growth and a shared destiny for all.
Despite the growth of digital financial services (DFS), approximately 1.4 billion adults worldwide still lack financial inclusion. A significant portion of this number resides in seven emerging markets and developing economies. Furthermore, there exists a vast financing gap for micro, small, and medium-sized enterprises (MSMEs). This gap is especially prominent for women-owned MSMEs, which account for an estimated $1.9 trillion of the unmet financing needs.
DPIs are essentially technological infrastructures that offer interoperable, open, and accessible digital platforms for public and private services. Examples include digital identification systems, payment platforms, and data exchange systems.
These infrastructures play a critical role in enhancing financial inclusion, spurring private and public innovation, and driving productivity gains.
These systems provide critical public and private services that can drive significant societal impact. From Brazil's Open Finance framework, which aids in data sharing and product offerings, to India's Account Aggregator Framework that strengthens data infrastructure through electronic consent, DPIs are redefining the way financial services operate. Other countries like the Philippines and the UAE have also initiated strategies to integrate open finance systems and collaborate on data-driven innovations.
DPIs can accelerate the DFS landscape, bridging existing financial inclusion gaps. By fostering innovation, lowering transaction costs, and enhancing user experiences, DPIs can catalyze rapid advancements in financial inclusion and productivity. The report highlights use cases in areas like account opening, government-to-person payments, international remittances, and MSME finance to demonstrate DPI's potential.
However, while DPIs hold transformative power, they also introduce new challenges and risks, such as operational, regulatory, and financial consumer protection risks. Effective governance and management are vital to ensure that DPIs bring about the intended benefits without exacerbating these potential risks.
The G20's policy recommendations revolve around five key dimensions:
These guidelines provide a roadmap for authorities worldwide, urging them to leverage DPIs to achieve broader financial inclusion tailored to their unique national contexts.
The transformative potential of DPIs in reshaping the financial sector is undeniable. They can bridge gaps, enhance efficiency, and pave the way for a more inclusive financial future. Yet, careful consideration and mitigation of associated risks are crucial to harness their full benefits.
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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ESG | Sep 5, 2023
Image: Unsplash/Thomas Kelley
In the ever-evolving landscape of technology, energy consumption has become a pivotal concern. As AI's demand surges, mirroring Bitcoin's energy-intensive history, it's crucial to understand and adapt.
The global fascination with artificial intelligence is undeniable. However, this burgeoning interest comes with a hefty price – a strain on our electricity grids. As AI's popularity parallels Bitcoin's trajectory, the energy implications become even more significant. Bitcoin, with its massive energy appetite, offers a roadmap for AI's energy journey.
Nvidia Corp's skyrocketing data-center revenue is a testament to AI's growing demand. Applications like ChatGPT are just the tip of the iceberg. However, the energy demands of such advancements, exemplified by Nvidia's GH200 Grace Hopper Superchip, are a cause for concern. This power-hungry component, drawing up to 1,000 watts, is a stark reminder of the energy challenges ahead.
Training AI models isn't just about data and algorithms; it's also about energy. Take BLOOM from HuggingFace, for instance. This model's training required a staggering 24.7 metric tons of CO2, a figure that doubles when considering the entire system's network connections and idle time. Such statistics underscore the urgent need for sustainable AI training methodologies.
Beyond training, AI's energy consumption continues. As highlighted by Amazon.com Inc., 90% of AI's energy costs arise during its operational phase. The energy required for inferencing, or implementing data, is believed to be tenfold that of the initial training phase. Such figures emphasize the long-term energy implications of AI systems.
Bitcoin, despite its energy challenges, has showcased the potential of renewable energy. Cold regions abundant in renewable energy, like Iceland, have emerged as hubs for Bitcoin operations. Such models present a viable blueprint for AI's energy future, emphasizing the importance of sustainable energy sources.
As we stand at the cusp of an AI revolution, it's imperative to prioritize sustainability. By learning from Bitcoin's energy journey, we can ensure that AI's growth is both innovative and environmentally responsible.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Digital Banking | Aug 30, 2023
Source: Totem website
In the vast landscape of fintech, where innovation is the norm, few stories resonate as deeply as that of Amber Buker and her groundbreaking venture, Totem. As financial institutions and investors scour the market for the next big thing, Totem stands out not just for its technological prowess but for its mission: bridging the financial divide for Native Americans.
Amber Buker, a proud member of the Choctaw Nation, knows firsthand the challenges faced by Native Americans in accessing financial services. From personal hurdles in buying a home to witnessing the broader community's struggles, Amber's journey is one of resilience and determination. Her experiences sowed the seeds for Totem, a neobank with a heart and a purpose.
Founded in 2022, Totem quickly made waves in the fintech world, raising over $2.4 million in venture funding. But for Amber, the numbers were just one side of the story. The real victory lay in launching the Totem app, a beacon of financial empowerment for Native Americans. With features like a debit card, mobile wallet, and direct deposit system, the app is more than just a banking platform; it's a statement that financial inclusivity is a right, not a privilege.
Recognizing the power of partnerships, the neobank has forged ties with various tribal nations where tribes benefit from a share of Totem’s revenues, and Totem gains invaluable insights into the unique financial needs of the Native American community.
One of Totem's standout initiatives is its discussions about a payments proof of concept. This would allow ACH payments to be sent directly into Totem accounts, ensuring seamless and fee-free transactions for users. In a world where big banks often overlook the underserved, Totem's commitment to providing FDIC-insured accounts without hidden fees is a breath of fresh air.
Amber and her team at Totem are challenging the status quo by addressing issues like the digital divide and the vast distances many Native Americans have to travel to access financial services, Totem is redefining what it means to be a community-based neobank. Their outreach extends beyond reservations, catering to the 70% of Native Americans living off them. In doing so, Totem is sending a clear message: financial empowerment should know no boundaries.
For financial institutions and investors, the story of Amber Buker and Totem is a clarion call. It's an invitation to look beyond profit margins and recognize the transformative potential of fintechs that prioritize social impact. As the fintech landscape evolves, stories like Totem's will undoubtedly shape its future. Amber Buker's vision, rooted in personal experience and fueled by a passion for change, serves as a beacon for all those looking to make a difference in the world 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 a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Impact Investing | Aug 23, 2023
Image: Unsplash/John Cameron
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Report | Aug 23, 2023
Image: McKinsey report, State of Diversity in Global Private Markets 2022
1. Institutional Investors are increasingly asking for and receiving diversity data from private equity (PE) firms during their fundraising processes.
2. Chief investment officers (CIOs) of leading IIs have indicated a preference to allocate more capital to PE firms with more diverse teams.
3. Standardization of Diversity Metrics
4. Broadening the Scope of Diversity
Yes, it does make sense for institutional investors to focus on these areas for several reasons:
In conclusion, it's not only a moral imperative but also a strategic one for institutional investors to act as catalysts for change in promoting diversity within the private equity industry. The landscape of private equity is undergoing a significant transformation, with diversity at its core. As institutional investors wield their influence, they not only champion a moral cause but also pave the way for a more inclusive, innovative, and successful future in private equity. The journey towards diversity is both a challenge and an opportunity, and with the combined efforts of all stakeholders, the industry is poised for positive change.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
Support NCFA by Following us on Twitter!Follow @NCFACanada |