NCFAs innovation and funding ecosystem

Category Archives: Fintech AI/ML, Data-driven

The Holt Xchange Kicks off 2021 Investment Program

Holt Xchange | Jan Arp | Oct 7, 2021

NCFA Fintech Confidential article on HOLT Xchange new - The Holt Xchange Kicks off 2021 Investment Program

During this year’s investment period, The Holt Xchange hyper-targeted 7 main verticals that deemed most promising: digital identity, regtech, insurtechs, cybersecurity, digital lending, wealthtech, and digital assets. As a result, this led to better targeted candidates and as such, a greater number of applications were a better fit for our investment program and Holt Ecosystem.

As a way to engage with fintechs in these verticals, Holt hosted the ‘Holt Invests’ Webinar Series featuring special Holt Advisors and alumni portfolio companies who are experts in this space. As such, we were able to engage in some engaging conversations as they shared first-hand insights on the current trend and opportunities.

The webinars consisted of the following:

  1. The I AM Webinar explored trends and opportunities found within RegTech & Digital ID industries. It’s clear that compliance costs are surging and expected to continue this trend. For instance in 2018, businesses spent $1.3 million on average to meet compliance requirements and were expected to put in an additional $1.8 million (IAAP). In Europe, GDPR played a large role in compliance related cost increases for business, with more expected to come. Given Canada is moving forward nationally with programs like Bill C and provincially, such as Quebec’s Bill 64, we expect compliance costs in Canada to further continue. Additionally, FAbout 25% of all financial services applications are abandoned due to friction in the Know Your Customer (KYC) process, in part because current Identity Verification (IDV) procedures fail users. Need for consumers to support. To better prepare for these proposed legislative changes (ie. among many others), as well as support KYC / AML process, this year we invested in following regtech companies:
    1. RequirementOne com: Supercharge compliance power users and their ecosystem as Apple did for the mobile phone user.
    2. DigiPli com: We're redefining how financial institutions onboard customers by bundling a SaaS-based, end-to-end onboarding tool with ongoing support from AML experts.

See:  Where the UK is heading with Smart Data and why Fintechs want a cross-sectoral access

  1. The I BORROW Webinar explored the opportunities and trends found within Digital Lending space. There continues to be an emergence of alternative lending options, pushing lenders to compete on price, demographics and ancillary product offerings. Additionally new offerings such as revenue base financing, and buy-now-pay-later, are received with greater comfort by investors and customers alike. As such, while looking into alternative financing options and recognizing the lack of options for first time buyers in a surging real-estate market, we invested in a new financing product of:
    1. FirstStep Financial ca: Opening the Door to Home Ownership. Digital Lending
  1. The I EARN Webinar explored the opportunities and trends within Digital Assets, Investment & WealthTech industries. For instance, A survey conducted by the Alternative Investment Management Association and SS&C found that out of 100 global hedge fund managers, 69% of the market leaders use alternative data to boost performance. Also considering property earning assets, the real estate market showed no sign of slowing, and real estate sector funding appeared to be making a comeback early in the year, with VC funding to proptech companies growing 29% to $2.4B for Q1’21. Given the need for better solutions in trading and real-estate, we invested in:
    1. CityFalcon com: Using Big Data, AI, and NLP, we democratize access to financial content, personalize it, add analytics, and deliver it in real-time in 50+ languages. Capital Markets
    2. Reitium com: REITIUM is a blockchain real estate marketplace where everyone can be an investor starting with $100. PropTech

See:  Tokenizing Assets and Unlocking Value on the Blockchain

  1. While not a webinar in itself, the theme of I TRANSFER emerged throughout the series, focusing on payments and banking. Payments remains the largest attraction for VC investment, whereby funding for payments companies tripled compared to the previous quarter, with over $6 billion in funding. The number of deals (114) increased by 50%, with 18 mega-rounds accounting for over 75% of the total funding. From a banking side, according to Accenture, over 50% of banking tasks are still manually performed. By using technology, banks in North America can save more than 70 billion USD through 2025. Not only can technology improve the bottom line for banks, but we are witnessing better customer centric designs to better tailor and serve  niche demographics and communities. As such, we invested in the following payment and niche banking companies:
    1. Payzel com: Forged out of frustration we are building the GE Capital for Innovative Industries like cannabis. Digital Payments
    2. Phaze io: A prepaid payouts API for fintechs. Digital Payments
    3. PeopleHedge com(MAYBE)

The Holt Xchange has just invested in 8 of the best fintechs that build solutions for our society’s greatest challenges. They kicked-off their Growth Acceleration Program and are already in the process of working closely with the portfolio companies and leveraging their global advisory network to help drive their business growth.

I am very excited to work with this year’s portfolio investments, complemented with 500+ Advisors, and to have the backing of key partners like Fairstone, RBC, MNP, BDC and Montreal International.”  stated founding managing partner Jan Arp.

If you are interested to learn more about us, or meet our portfolio companies or Advisors highly suggest you attend our Fintech Show 2021 either remotely or in-person: Fintech Show 2021.

Read:  Tiger vs. SoftBank: Inside the investing playbooks that upended Silicon Valley

What’s Next for the Holt Xchange?  The Holt Fintech Show

  • When: Tue Nov 16, 2021
  • Where: Rialto Theatre (Montreal, QC)
  • Agenda:
    • 6 PM - 7 PM: Doors Open
    • 7 PM - 8:15 PM: Fintech Show
    • 8:15 PM - 9:00 PM : After Show
  • Tickets to register: https://bit.ly/3tdicJA

The world-famous Holt Fintech Show, in which our Holt 2021 Portfolio Companies will pitch their progress to date and share their next key milestones that the audience may want to get involved with, such as investing, partnerships, new clients, mentoring, etc.

This is a great networking opportunity for anyone looking to get more involved in the fintech ecosystem.

* If you can't make the in-person event, virtual options are available.

Join the LinkedIn event page here and remember to register a spot as spaces are limited!

 

About Holt XChange

Driving Canada’s Fintech leadership, The Holt Xchange is a global early-stage fintech fund headquartered in Montreal. Backed by Holdun, a 5th generation multi-family office, The Holt Xchange is focussed on building off of the legacy of Sir Herbert Holt. As the Holt family has done before, they are enabling Canada to take a technological lead in the next generation of financial services, known as Fintech. As Canada's most active seed fintech investor, Holt has spent the last year tracking over 10,000 early stage fintechs globally, soliciting the ones that presented a best match with their 500+ Advisor network, and then investing in the top 1% of applications globally, resulting in 35 investments to date.

 


NCFA Fintech Confidential Issue 4 250 - The Holt Xchange Kicks off 2021 Investment Program

This article is featured in NCFA's digital magazine, Fintech Confidential (Issue 4 Oct 2021). Click to read the latest thought leadership, insights and trends about Fintech in Canada:

Checkout NCFA's digital magazine, Fintech Confidential (Issue 4) --> here

 


NCFA Jan 2018 resize - The Holt Xchange Kicks off 2021 Investment Program 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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[Event, Oct 7, 2021]: Rising to the Challenge of New Global Realities

PPF | Sep 28, 2021

Rising to the Challenge of New Global Realities 1 - [Event, Oct 7, 2021]:  Rising to the Challenge of New Global RealitiesForging a new path for sustainable and inclusive prosperity in Canada

The reopening of the economy and the election of a new Parliament provides an opportunity for the country to address a series of long-standing and more recent societal challenges with the same determination as the pandemic itself. The following critical issues leave Canada no choice but to forge new routes to an improved future:

  • Accelerating technological change
  • The shifting nature of work
  • Rising demands for equality and inclusion
  • Disrupted immigration patterns
  • Climate-induced energy transformation
  • Emerging international rivalries

To this end, a working group of 12 members of Canada’s Senate undertook a study in late 2020 to examine where our nation should turn in developing the next wave of prosperity and how to ensure this success is shared by all. The Senate Prosperity Action Group heard presentations from more than 40 experts from across the economic and social spectrum, which will culminate in a report with recommended policy actions to be released in the weeks ahead.

The Public Policy Forum and Senate Speaker George J. Furey invite you to a special event featuring the Senate Prosperity Action Group and some of the most respected Canadian political leaders of the past half-century including John Manley, former Deputy Prime Minister of Canada, Frances Donald, Chief Economist, Manulife Financial, Tabatha Bull, President & CEO, Canadian Council for Aboriginal Business, Monique Leroux, Chair, Industry Strategy Council and Chris Ragan, Professor, McGill University and former Chair, Eco-Fiscal Commission. Our panelists will unpack the report and discuss how Canadian society can work together to achieve sustainable and inclusive prosperity. We also look forward to welcoming the Rt. Hon. Joe Clark and the Hon. Christy Clark for a fireside chat on Building Consensus which will be moderated by PPF President & CEO, Edward Greenspon.

Event:

Thursday October 7, 2021
1:00 p.m. - 4:00 p.m.

Register for this event --> here

Download the 66 page PDF report --> here


Related Report links:

A New North Star: Canadian Competitiveness in an Intangibles Economy

How to Build Canada’s Competitiveness Amidst the Rise of an Intangibles Economy and Greater Geopolitical Complexity

 


NCFA Jan 2018 resize - [Event, Oct 7, 2021]:  Rising to the Challenge of New Global Realities 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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TD Bank enters data access agreement with Envestnet Yodlee

Open Banking Expo | Ellie Duncan | Sep 22, 2021

data access - TD Bank enters data access agreement with Envestnet YodleeToronto-headquartered TD Bank and California-based Envestnet|Yodlee have signed a North American data access agreement that means the bank’s customers will be able to connect their financial information to the more than 1,400 third-party applications powered by the Envestnet|Yodlee financial data aggregation platform.

Under the agreement, should a customer request it, TD Bank will transfer the individual’s financial data to Envestnet | Yodlee through APIs, removing the need to share their banking login ID or password.

See:  Lack of open banking framework forcing Canadian consumers to choose between convenience and security, TD exec says

“We know that our customers are interacting with us through digital channels more than ever before and we are focused on helping meet their needs however they choose to bank,” Franklin Garrigues, VP, digital channels at TD added.

TD Bank has become the 13th US bank to sign such a data access agreement with Envestnet|Yodlee.

Continue to the full article --> here


NCFA Jan 2018 resize - TD Bank enters data access agreement with Envestnet Yodlee 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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Liquid Avatar Technologies Digital Wallet Enables Consumer Use of Secure Verifiable Credentials

Liquid Avatar Technologies | Cara Buckspan | Sep 23, 2021

liquid avatar technologies verifying credentials - Liquid Avatar Technologies Digital Wallet Enables Consumer Use of Secure Verifiable CredentialsToronto, Canada - TheNewswire - September 23, 2021 -Liquid Avatar Technologies Inc. (CNSX:LQID.CN)(OTC:LQAVF)(FRA:4T51) (“Liquid Avatar Technologies” or the “Company”), a global blockchain, digital identity and fintech solutions company today announces a significant update to the Liquid Avatar Verifiable Credential Ecosystem (“LAVCE”), which is theLiquid Avatar Wallet. This digital wallet will be part of the upcoming release of the Liquid Avatar Mobile App, available in the Apple App Store and on Google play, which is currently under review for release.

This downloadable digital walletenables consumers to use verifiable digital identity credentials anchored in blockchain technology that are resistant to fraud, highly secure, and privacy preserving.

Read:  UK Government: Next step in plans to govern use of digital identities revealed

The Liquid Avatar Wallet unlocks a new way of issuing, sharing, and verifying information, providing immediate benefits to businesses and organizations. Businesses of all sizes can now interact with customers in a way that provides the highest level of assurance that the information shared is valid, while also preserving privacy and preventing fraud. Use of the Liquid Avatar Wallet can mean that:

  • Identity and health verification can support social responsibility and the return to everyday activities.
  • Credit card fraud, which is an estimated $28 Billion dollar issue worldwide, can be mitigated significantly when purchases, both online and offline, are tied to an easy-to-verify proof of identity
  • Purchases that require proof of age can be authoritatively verified—and in a way where date of birth can be confirmed without disclosing personally identifiable information.
  • Travel, which under pandemic restrictions involves multiple documents and in-person verification, can be streamlined into a simple one-scan verification.
  • Passwords are no longer needed. All the old, cumbersome, and insecure ways of proving identity are unnecessary. Once a credential is issued by a trusted entity, it can be verified through a distributed blockchain network.

“One of the key benefits of the LAVCE and the Liquid Avatar Wallet that I feel very strongly about is that it increases value for all parties,” said David Lucatch, CEO—Liquid Avatar Technologies Inc.“

While we’ve all been keenly focused on health verifications, there is so much more that verifiable credentials and the Liquid Avatar Wallet can do.  Age verification is a critical issue for those that sell restricted products and failure to do so can lead to loss of opportunity to sell a variety of products and potentially loss of income and business. The potential risks of identity fraud are constant and can be costly. We’re making this kind of verification reliable, hassle free, and low cost. That’s step one. And if we then integrate verifiable credentials with point-of-sale systems, selling restricted items to underage customers could be effectively eliminated.”

See:  6 lessons on online privacy and digital authentication

Liquid Avatar’s Wallet and credential ecosystem was built with technical assistance from Indico.tech, a global leader in decentralized Trusted Data Ecosystem development, and with the same data privacy principles and technical standards as the Province of Ontario’s plan for Digital Identity and following a similar roadmap. This means that the Liquid Avatar Wallet will be interoperable with other identity credentials built using the same guidelines. The Company as a member of the Digital Identification and Authentication Council of Canada (DIACC) is also on a path following the guidelines set out by the Pan-Canadian Trust Framework for digital identity.

“The ingenious thing about this technology is that it is custom built for a world where there are exemptions to everything,” said Lucatch  “We can automate and rapidly update the most complex government or commercial requirements without placing any burden on the user. These are the keys to the future—flexibility and simplicity.

We are hopeful that the chaos of Covid will eventually dissipate, but we are moving to a world where a user’s data privacy and consent is part of everyday life. This technology delivers simple, flexible solutions on all fronts.”

To encourage future adoption, Liquid Avatar Technologies will offer a software development kit (SDK) for both iOS and Android that can be embedded in, and power different apps, for use with corporate and government portals, and other solutions to make it possible for all types of organizations to support digital wallets and verifiable credentials easily and effectively.

For more information, or to book a demonstration of the technology and how the LAVCE can assist your organization to support your reopening, health care objectives and other digital identity and verifiable credentials initiatives, please contact Liquid Avatar Technologies.

View original release --> here


NCFA Jan 2018 resize - Liquid Avatar Technologies Digital Wallet Enables Consumer Use of Secure Verifiable Credentials 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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Why is AI required for the future of mortgage lending?

FundMore.ai | Chris Grimes | Sep 20, 2021

Why AI is required for the future of mortgage lending - Why is AI required for the future of mortgage lending?

The Mortgage Tsunami!

Mortgage lending in 2020 (and beyond) is set to break previous records. An estimated volume of over $4 trillion of new mortgages will be signed across North America. This increase in mortgage volume is accompanied by massive growth in refinancing, which is estimated to reach $2.4 trillion, more than twice the total of last year.

Considering the sheer volume of mortgage transactions, a vast amount of data is collected on the borrowers with each passing year. Mortgage lenders, no matter how big or small, need to harness the power of this data to make reliable predictions on the borrowers’ future behaviour.

Mortgage lenders rely on data to underwrite their loans, check eligibility, and detect fraud. The problem today is that it takes a significant amount of manual labour to extract data from paperwork. This lengthens the process and makes it costly.

What role can AI play in pivoting the future of the mortgage industry?

One of the main issues with traditional mortgage processing is its delayed response. Despite providing details up-front, a borrower must wait weeks for an approval. Analyzing customer responses and identifying the difficulties faced across different stages will help lenders streamline their application and approval process.

See:  Here is why InsurTech is heating up as an investment category

Roughly 40% of lenders are already using AI in some capacity within their organization. We can expect automated underwriting systems to predict the probability of default for individual borrowers. The detailed review processes for loan approvals can be compressed into hours, facilitating a better decision-making process for lenders and other parties (such as insurance providers).

Future AI programs will utilize data points and indicators outside the mortgage application process (such as social media activity, geo-location, browsing patterns, and other online behaviours) to assist in lending decisions.

Streamlining and improving lending practices

AI helps financial technology (fintech) lenders underwrite loans faster than their traditional counterparts, as revealed in a 2018 study conducted by the Federal Reserve Bank of New York. While most fintech firms don't disclose the exact process, the following is what it may resemble.

Machine learning allows lenders to capture and analyze vast amounts of accurate data and channel it through automated work processes. It also helps lenders identify discrepancies in data, assess loan quality and detect aberrations throughout the loan origination & due diligence process. This allows underwriters to minimize time spent on each file and invest more energy in managing exceptional cases.

See:  How Fintech is Changing the Mortgage Industry

In the case of missing data, an automated system communicates directly with the borrowers, collecting the necessary information. The system may require human input, but as machine learning gets better trained by larger datasets, it will become more accurate. In short, machine learning will automate tasks that were once performed by their human counterparts.

High-value datasets can be "sliced and diced" to obtain critical insights into current operations, design and implement workflow improvements, and eliminate potential problems related to lending practices.

Intelligent capture technology will also allow mortgage lenders to address one of the most critical challenges: high staffing costs. With advanced AI tools, streamlined processes and staff efficiencies can substantially decrease the cost of loans while delivering a more satisfactory borrower experience. In the foreseeable future, sophisticated AI programs will facilitate automation of the decision-making process throughout the loan's lifecycle.

What does this mean for the future of mortgage lending?

A personalized and superior customer experience! In addition to achieving operational efficiency, mortgage lenders will become consumer-friendly.

Several financial institutions (traditional and fintech) are using AI to enhance customer experience. Using the right datasets, it is possible to create an application form that can respond intelligently to clients, adapting to previous answers.

Read:  What Industries Use Blockchain the Most?

AI modelling can help predict which potential clients should receive more attention from their marketing team in order to close the sale. This helps boost revenues and brings down the cost per unit. Focusing on stronger opportunities allows for targeted resource allocation and eventually produces greater results at lower costs. The savings achieved through these efforts can be passed on to clients in the form of lower rates, which in turn can help lenders increase their market share.

While AI has made substantial progress in the past decade, current technology is merely scratching the surface of innovation in the mortgage lending industry. The ongoing race to advance the AI-driven mortgage lending process is a big win for fintech, lenders and consumers.

Authored by:

Chris Grimes, CEO & Co-Founder of FundMore.ai has over 15 years of experience in the mortgage and lending space. Seeing an opportunity to automate many of the tasks within his company LoanDesk.ca, he realized that he could build a great aggregation tool that leveraged artificial intelligence and provide a full end-to-end lending platform.


Fintech Confidential issue 3 cover 1 - Why is AI required for the future of mortgage lending?

This article appears as a featured article in NCFA's digital magazine, Fintech Confidential. Click to read the latest thought leadership, insights and trends about Fintech in Canada:

Checkout NCFA's digital magazine, Fintech Confidential (Issue 3) --> here

 

 


NCFA Jan 2018 resize - Why is AI required for the future of mortgage lending? 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

 

Where the UK is heading with Smart Data and why Fintechs want a cross-sectoral access

Innovate Finance | Rolf Merchant | Sep 7, 2021

SMART DATA - Where the UK is heading with Smart Data and why Fintechs want a cross-sectoral accessData is a hugely valuable currency in the financial services world. In sufficient quantities and with the knowhow to analyse and interpret it, data provides a tremendous amount of knowledge for financial services companies. The old tenet “knowledge is power” could justifiably be updated to “data is power” for 21st century finance.

What is Smart Data? 

Smart Data is the secure sharing of customer data with authorised third-party providers upon the customer’s request.

These providers then use this data to provide innovative services for the consumer or business user, such as automatic switching or better account management.

Data sharing could unlock a huge number of benefits for consumers and businesses alike.

Read:  Kalifa review of UK Fintech report

We might see the creation of an entire “data economy”, where consumers are more informed and empowered because of the data they can access, and where businesses can make use of shared data to create and improve products and services that target real needs and desires. This is why FinTech companies are so interested in the Smart Data initiative.

Next steps for Smart Data

We were particularly interested to read the report in June from the UK government’s Smart Data working group, Next steps for Smart Data. It was encouraging to see a reaffirmation of the value of financial services-specific initiatives such as Open Banking and Open Finance.

The report detailed a number of the brilliant uses of Open Banking by FinTech companies – including by some of our own members like Yapily, Yolt and Monzo – showing the power of shared data in action.

It was even more promising to read practical proposals for cross-sector coordination. It’s worth referring to the Kalifa Review, which listed taking a “cross-sectoral approach” as the number one recommendation for Smart Data.

See:  Will the Law Keep Up with Smart Contracts in 2021?

Innovate Finance agrees with the working group’s four key principles to inform the design of cross-sector coordination and collaboration, as detailed in the Next steps for Smart Data report. These four principles are:

  • Sectors working together – bringing together all bodies leading sectoral delivery of Smart Data with industry and government to enable coordination.
  • Develop the Smart Data ecosystem – sharing information and drawing on shared expertise to tackle common challenges and support cross-sector innovation.
  • Enable interoperability – to address barriers to competition and realise Smart Data benefits for consumers and businesses.
  • Inform the ongoing development of the Smart Data framework – ensuring the ecosystem remains responsive to changing user attitudes and technological developments will be important. Pooling research and findings to develop a cross-sector picture of adoption, attitudes and capabilities will provide an opportunity to identify and consider emerging opportunities and challenges.

What does FinTech want from a cross-sectoral approach?

The Kalifa Review listed specific concerns of the FinTech community relating to Smart Data, including smaller firms not having sufficient access to data to develop innovative products and to compete with established firms with large customer bases and data sets. There is a real need for any cross-sectoral approach to take into account the interests of FinTech startups and scaleups.

Read:  FCA Speech: Levelling the playing field – innovation in the service of consumers and the market

The Kalifa Review stressed the need for the government to facilitate (or, where appropriate, mandate) the sharing of data not just within sectors (such as Open Banking), but also between sectors. It added that a cross-sector approach must bring ​​firms that hold very significant amounts of data, such as large technology companies, into the fold.

Continue to the full article --> here


NCFA Jan 2018 resize - Where the UK is heading with Smart Data and why Fintechs want a cross-sectoral access 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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Gen Z: the end of status quo banking?

WALO | Rim Charkani | Aug 31, 2021

WALO financial education - Gen Z: the end of status quo banking?Canadians are notoriously loyal to their financial institution (FI). Only 3% of them jump ship every year because switching costs act as a silent yet strong deterrent in banking. Imagine having to transfer all your recurring payments and deposits to a new chequing account. Fears of complications set in, and you resign yourself to the status quo.

While family and friends are still determining factors when choosing a lifelong financial service provider, relying on a history of apathy simply will not cut it nowadays. Establishing a meaningful relationship based on true added value is thus critical for FIs to capture and retain Generation Z's attention.

SAME SAME, BUT DIFFERENT

In some ways, Gen Z is no different than previous cohorts. They want their money to be safe and make better financial decisions. Surprisingly, they also value things like branch proximity and greater trust levels associated with well-established FIs.

Yet, Gen Z members are a different breed evolving in new technological times. Word of mouth defines brand adoption for products that need to be social, digital, educational, and offer value over time. If a relevant added value is not there, this tech-savvy, mobile-first generation will go somewhere else.

A GAP TO BE FILLED

Current technological shifts have created a void - some Gen Zers get cell phones before 10 years old and are active on social media by the time they are 12. Yet, a lot of them do not have payment cards or bank accounts until they are 18.

See:  Fintech Startup WALO Goes Live With A Gamified Financial Literacy App for Kids and Parents

That does not mean that teens will abstain from mobile banking during those years. It just means that, in an era where hard cash is no longer king and online shopping is a must, traditional banking methods have failed them.

CONNECT EARLY

Financial habits are set as early as seven years old, which often coincides when parents start giving an allowance. Remarkably, a lot of big banks have overlooked the impact Gen Z will have on their line of business. If FIs do not connect during this current window of opportunity, someone else will.

“As fintech and big tech players expand their payment functionality, banks will need to be invested in teen banking — or risk being left behind.” Morgan Stanley Research

In Canada, we can just look to Europe for a glimpse into the future. Open banking, neobanks, consumer-friendly legislation and services like the UK's Current Account Switch Service will eventually come to Canada.

And if there is one lesson to be learned, it is that embracing those changes is crucial. FIs who were adequately prepared are thriving in this new environment. By doing nothing, Canada is at risk of becoming a net importer of financial technology for teens.

BE RELEVANT

In the end, it all comes down to being relevant for tomorrow’s mass customers, Generation Z, right NOW.

Gen Z’s appetite for new payment products and experiences is a no-brainer. There are clear signs that their demands for alternative cashless, context-relevant and rewarding mobile experiences are unmet.

This technologically savvy cohort represents a massive opportunity for FIs willing to provide products tailored to their needs. Those FIs looking for ways to drive meaningful mobile engagement for Gen Z can rely on Fintechs such as WALO.

An early value-added relationship between the youth and FIs will pave the way for loyal and lucrative lifelong relationships.

 

Learn more about Rim and the WALO mission on NCFA's Fintech Fridays podcast:


NCFA Jan 2018 resize - Gen Z: the end of status quo banking? 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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