Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Category Archives: Fintech International
CEO Views on AI in Deals Amid Economic Shifts
AI | Sep 22, 2023
Image: Unsplash/Hunters Race
The world of deal-making is undergoing a significant transformation, driven by technological advancements and shifting economic landscapes.
A CEO's Perspective on the Economy
- The July 2023 EY CEO Outlook survey reveals that US CEOs are gearing up for what might be termed a "new normal" characterized by expensive capital and heightened volatility.
- A striking 97% of US CEOs are preparing for a potential economic downturn in their primary market.
- This cautious approach is not unfounded. The US, while showing signs of a possible "soft landing" due to factors like labor market resilience and moderating inflation, still presents uncertainties. CEOs are not banking on best-case scenarios but are instead fortifying their organizations for sustainable growth.
AI in Deal-Making - A Game Changer
- AI's role in this evolving landscape is undeniable. A significant 80% of US CEOs have either already integrated AI into their products and services or plan to do so within the next year. However, the application and benefits of AI vary.
See: Birth of the First AI-Generated Memecoin, AstroPepeX (APX)
- AI and ML have the potential to revolutionize the merger and acquisition process. They can make the due diligence process more efficient by analyzing vast amounts of data quickly. Tools like Robotic Process Automation (RPA) can automate data analysis, and AI tools offer predictive modelling capabilities.
- Interestingly, when asked about the use of AI in the transaction diligence process, 30% of US CEOs confirmed its application. However, a larger percentage (37%) are still in the initial stages. The emphasis seems to be on traditional business strategy principles, with a focus on value, capital structure, and corporate strategy.
- A recent Business Insider article shed light on the evolving role of junior bankers. Gone are the days of mundane tasks and grueling hours. With AI's intervention, junior bankers can now focus on critical thinking and strategy, as repetitive tasks become automated. Financial giants like Deutsche Bank are already harnessing the power of generative AI, enabling junior bankers to work more efficiently and focus on building analytical skills.
- But it's not just about automating tasks.
- Generative AI is revolutionizing strategic planning, financial reporting, and stakeholder engagement. It's fostering a more agile and responsive financial environment, allowing leaders to break free from traditional constraints.
- For fundraisers and deal-makers, this AI-driven transformation means:
- Faster decision-making, accurate market trend analysis, and enhanced stakeholder communication.
- The integration of AI tools can also lead to more personalized investor pitches, efficient document processing, and real-time risk assessment.
See: The AI Revolution in Wealth Management: Top 3 Innovations (and more)
- Concerns still need to be addressed properly:
- With AI processing large amounts of data, there are concerns about data breaches and privacy.
- While AI is valuable, it cannot replace human intuition and understanding.
- Heavy reliance on AI might lead to overlooking compliance requirements -> lack of governance.
- AI as an Investment: Implementing AI requires significant investment in technology and possibly personnel.
Into the Future
In an era marked by rapid technological evolution and economic unpredictability, CEOs are at the forefront of navigating uncharted waters.
While the tools of tomorrow promise efficiency and innovation, the human element remains irreplaceable. The fusion of AI's capabilities with human insight will undoubtedly chart the future of deal-making, setting the stage for a more agile, informed, and strategic financial world.
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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How to Safely and Securely Store Your Digital Files
Sep 22, 2023
Image: Unsplash/Viktor Talashuk
Gone are the days when you’d need huge filing cabinets and boxes of paperwork. These days, most people store documents and files through digital means, either saving them directly onto their device, using external storage or uploading them to the cloud. This is much easier and saves costs on paper, but is it safe?
While storing files on your computer is certainly easier, there are data security issues to consider. Not only that but having only digital copies of your documents could mean you run into issues if you ever lose your device or your storage becomes corrupted. However, there are ways you can safely store them and not have to worry.
Backing Up Data
One of the most important things you can do to ensure your digital files are safe is to back them up regularly. Whether you save all your files to the cloud, your device or an external storage unit, you should always back them up with at least one other copy in another location. This way, you prevent loss of data due to memory issues, lost devices or other problems.
If you do run into issues with memory, it’s not necessarily the end of the world. SD card data recovery has become a lot easier. However, making backups will still save you a lot of stress and worries should you ever have a problem. You can back up physical documents this way too, ensuring that you always have a copy ready if you need it.
Using Encryption
Encryption helps keep your data secure, preventing it from being misused if it falls into the wrong hands. Whether you’re looking to protect personal and private information, financial records or client data, you should always use encryption to prevent unauthorised users from accessing it. Although it sounds complex, encrypting your files has never been easier.
There are lots of data protection tools that do it for you, and all you need to do is safely store the password or mnemonic phrases. You can use encryption to secure the local files on your computer, tablet or phone, and it’s possible to set it up on external hard drives and USB drives too. If you’re using a cloud data system, ensure that it encrypts your files for an added layer of protection.
Be Aware of Privacy
When using the web, it’s easy to get carried away sharing information and giving apps and programs access to our files. If you’re worried about data security and protecting your digital documents, you should also be concerned about online privacy. This is especially true when you’re using free services, which often make their money by collecting data on users and selling it to ad companies.
You can stay safe and keep your documents secure by being more mindful of which apps and services you use. Check what kind of permissions you’ve given to applications on your devices, and ensure you’re not giving away all of your data. Always read through the full terms and conditions of any service you use too.
Secure Your Internet Connection
Using your device on an insecure network may result in your data being accessible to other people, which is definitely something you want to avoid. You should secure your home WiFi network and generally avoid using open networks. However, you can still use an open network safely if you know how to create an encrypted tunnel between your device and the hotspot.
While it’s rare to face attacks through WiFi networks, it’s best not to take the risk, especially if you’re worried about personal documents. As long as you use a secure connection, you should be able to safely and securely protect all your files without having to worry about losing them.
Why Data Security is Important
Data security means protecting your data from unauthorised usage. Whether it’s your personal data or you run a business that collects customer data, it’s incredibly important to secure it safely. Failing to secure it could mean your personal banking information and identity are at risk of being misused. If you run a business and fail to take data security seriously, you could face major fines.
In the modern world, cyber attacks have become more frequent as criminals look to profit from digital technology. If left unsecured, your personal data could be sold or ransomed for money. Even if you might think your personal data isn’t very interesting, you never know how it may be used against you if it falls into the wrong hands.
See: Small Businesses Incur Greatest Loss of Cyber Attacks | 67% Suffer Repeat Attacks Within 12 Months
You can secure your data correctly by focusing on physical, network and system security. This means having special measures in place to restrict physical and online access to your files. You can use stronger passwords, encryption and firewalls to improve security.
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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Birth of the First AI-Generated Memecoin, AstroPepeX (APX)
Crypto | Sep 22, 2023
Image: Unsplash/KS KYUNG
The cryptocurrency landscape is no stranger to innovation, and the latest entrant is a testament to that. The birth of AstroPepeX (APX).
An anonymous Ethereum developer has recently unveiled a unique approach to creating digital tokens: using artificial intelligence. The developer, known by the Twitter handle @CroissantEth, has combined OpenAI’s ChatGPT API with a custom script, enabling the chatbot to autonomously create an ERC-20 tokenthat's rapidly gaining traction across various DeFi and centralized exchanges.
The developer's AI tool doesn't just create any token; it crafts an ERC-20 token using Open Zeppelin standards. Open Zeppelin is a renowned open-source framework for constructing secure smart contracts. These contracts are written in Solidity, Ethereum's programming language. The AI determines the token's name and other parameters based on values provided by GPT in the code's constructor. The first public token launched using this tool is AstroPepeX (APX).
See: Fund Tokenization: Fractional Issuance, Streamlined Redemption, and Servicing Benefits
Launched on September 20, 2023, APX has seen an impressive ascent. Impressively, within just 24 hours of its introduction, AstroPepeX accumulated a staggering $12.9 million in trading volume. The token's name wasn't arbitrarily chosen. ChatGPT generates names based on real data from the top ten thousand tokens traded on Uniswap. It then cross-references these names with market-cap data from CoinMarketCap and CoinGecko. Some of the bot's test runs produced coins with names like "Inuverse" and "QuantumPepe", hinting at popular memecoins and concepts like Dogecoin and the metaverse.
Etherscan data indicates that over 2,400 individuals now hold APX, with more than 20,700 transactions recorded.
AI's Creative Touch and Rapid Adoption
The developer, Croissant, shared insights with Decrypt, revealing the AI's surprising creativity. "The number of Pepe generations were quite funny, and it was super cool to see where GPT actually input real creativity in the data," he remarked. He further explained that while some token specifics, such as token supply, can be directly configured, others are left to ChatGPT's imagination. After determining a name and description for the coin, ChatGPT collaborates with DALL-E, another OpenAI tool, to design a fitting icon for the token.
The crypto community has quickly embraced AstroPepeX. Prominent exchanges like Poloniex, Bitget, MEXC, LBank, and select DeFi platforms now list APX for trading. Poloniex, in particular, was swift to promote the token's listing, highlighting the buzz around APX.
Safety and Security
To ensure the integrity of the process, Croissant designed his tool to revoke ownership of any contract generated by ChatGPT immediately. Additionally, all token supply is added to Uniswap liquidity upon creation, accompanied by 2 Ether (ETH).
See: From Meme to Movie: GameStop’s Unprecedented Stock Surge ‘Dumb Money’
While AstroPepeX has garnered significant attention, CroissantETH has clarified that there isn't an official Telegram group for the token. An unofficial group with around 1,500 members exists, but APX's creator emphasizes transparency and the importance of official communication channels.
Onslaught of New Memecoins?
With such a promising start, APX is undoubtedly a token to watch in the dynamic world of digital assets.
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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Creative Tips To Master Your Sales Pipeline
Sep 22, 2023
Image: Unsplash/Campaign Creators
Mastering your sales pipeline is much like conducting an orchestra; it requires harmony, precision, and creativity. A well-managed sales pipeline can be the difference between surpassing your sales targets or falling short. While there are many traditional methods to manage and optimize a sales pipeline, sometimes it takes a sprinkle of creativity to truly make it sing.
In this article, we will take you on a journey to explore some unique and creative tips to master your sales pipeline, ensuring you hit the right notes every time. You can also consider the SEO services India to optimize your sales. Here are some tips to master your sales pipeline.
Identify your best leads first:
The first step in mastering your sales pipeline is to identify which leads are most likely to convert into customers. Utilize data from your previous campaigns and track customer behavior metrics like open and click rates on your emails or website visits to understand better where the best opportunities lie.
Another way to identify the best leads is to use predictive analytics. Predictive analytics helps you understand which customer segments are most likely to turn into profitable customers, allowing you to prioritize and focus your efforts on the right leads. Once you've identified the best leads, you can begin working on optimizing your sales pipeline.
Avoid dead leads:
Whether you sell digital marketing packages or you're an IT services business, your sales pipeline should be free of any dead leads. Dead leads are a complete waste of resources and can hurt your bottom line.
It is essential to review your sales pipeline regularly and weed out any dead leads that haven't responded or interacted with you in the past few weeks. This will ensure that every lead in your pipeline is valid and worth pursuing.
Look for hints like open and click-through rates on emails to understand if the lead is actively engaging with your content. If they have yet to respond to any of your outreach efforts, it's time to move them out of the pipeline. It's better to stop wasting time on leads that are not likely to convert.
Improve your follow-up game:
The key to success in sales is consistency and follow-up. Ensure that you are regularly staying in touch with all of your leads in the pipeline. A great way to stay on top of things is by setting up automated emails, SMS messages, or calls. This will ensure that all leads get a response at regular intervals, no matter how busy your schedule may be.
Customers are busy, and the amount of digital information they get per day or even per hour is overwhelming. It's important to follow up consistently so that your leads remember who you are and what product or service you provide.
Pro tip: Add a personal touch by sending a handwritten thank-you note along with the automated emails. This will help build trust and familiarity with potential customers. Automating the follow-up process will help you stay on top of things without having to dedicate too much time and energy.
Utilize prospecting tools:
Technology has made it easier than ever for sales reps to manage their pipelines efficiently. Making use of prospecting tools can automate and streamline the process and make it more efficient.
Tools like Salesforce, HubSpot, and Pardot can help simplify the sales process. They provide features like segmentation, tracking, lead scoring, automated emails, and more that will make it easier to manage leads in your pipeline. This way, you can keep track of who is interested in what product or service and follow up with them accordingly.
The biggest benefit of using these tools is that you get real-time insights into your prospects and leads. This will help you make better decisions about which leads to focus on and how best to move them down the sales pipeline.
Keep track of pipeline metrics:
Keeping track of your pipeline metrics allows you to identify and address any problems or areas for improvement. This will help you improve your sales process and increase the chances of closing more deals.
You can measure things like conversion rate, close rate, average deal size, customer churn rate, and number of leads in each stage of the funnel, as well as how long they have been in each stage.
Analyzing these metrics regularly will provide you with valuable insights into your sales process and help you improve it over time. This way, you can maximize the efficiency of your pipeline and close more deals.
Moreover, what KPIs you should track will depend on the type of product or service you're selling. So, make sure to select and measure the KPIs that are most relevant to your business.
Develop relationships with prospects:
Developing a personal relationship with prospects is one of the key elements of success in sales. Building relationships requires time, effort, and trust. When you understand your prospects' needs and are genuinely interested in helping them, they feel more comfortable with you and are more likely to make a purchase. This is why relationship-building should be an integral part of your sales process.
Start by gaining knowledge about who your prospects are—their goals, challenges, interests, etc. Make sure to be polite, professional, and friendly when interacting with them. Keep in touch with prospects through emails or phone calls and make an effort to follow up regularly. Building relationships will not only help you close deals faster but also increase customer loyalty over time.
Provide value:
Sales is no longer about simply selling products—it's about providing value. Prospects are looking for partners who can help them achieve their goals and solve their problems.
So, focus on how you can provide value to your prospects by offering high-quality products, top-notch customer support, and excellent education resources. Show the prospects that you're genuine in wanting to help them succeed, and they will be more likely to make a purchase.
See: Yahoo Acquiring Commonstock to Revolutionize Its Financial Community
To summarize, always keep in mind that your goal is to provide value to your prospects and help them achieve their goals. That's what will make them decide to become loyal customers. With the above tips, you can master your sales pipeline and skyrocket your business.
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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The UK’s PRA Commitment to International Competitiveness and Growth
Regulatory Insights | Sep 21, 2023
Image: Vicky Saporta, Executive Director, Prudential Policy Directorate at the Bank of England
A recent speech by Victoria Saporta at the Bank of England conference sheds light on the Prudential Regulation Authority's (PRA) vision and its commitment to bolstering the UK's position as a global financial hub focusing on international competitiveness and growth.
- Victoria Saporta, Executive Director, Prudential Policy highlighted the PRA's new secondary objective, which emphasizes facilitating the UK economy's international competitiveness and growth over the medium to long term. This objective aligns with international standards, ensuring that the UK remains a key player on the global stage.
- The PRA's approach to this objective isn't entirely new. They initiated a conversation about a year ago with a Discussion Paper that outlined their policy approach. Saporta's speech in February further solidified the PRA's stance, proposing regulatory foundations that would guide their approach.
Three Pillars of Competitiveness and Growth
See: Canada’s Competition Problem: 7 Reasons
Saporta outlined three main foundations that the PRA believes are crucial for harnessing the UK’s strengths:
- Trust: A strong emphasis on maintaining trust in the PRA and the UK's prudential framework.
- Effective Processes: The need for streamlined regulatory processes and proactive engagement.
- Responsiveness: A commitment to addressing UK-specific risks and opportunities head-on.
A pilot survey conducted by the PRA provided valuable feedback from stakeholders. A whopping 93% of respondents expressed trust in the PRA’s framework, and a similar percentage appreciated the PRA's stable and predictable regulatory environment.
Operational efficiency stands as a key area of focus for the PRA. The authority is taking steps to enhance transparency, with initiatives like more frequent reporting on regulatory transactions.
What Can Canadian Regulators Learn?
Canadian regulators, like their counterparts worldwide, are constantly seeking ways to enhance their regulatory frameworks, ensure financial stability, and foster economic growth. Drawing from the insights of Victoria Saporta's speech at the Bank of England conference and the PRA's approach, here are a few select lessons Canadian regulators can learn:
See: NCFA Response to FINTRAC’s ‘Knee Jerk’ Regulations Requiring Donation Crowdfunding Platforms to Register and Comply with AML/ATF Legislation
1. Embrace a Clear Vision with Defined Objectives
The PRA's new secondary objective emphasizes facilitating international competitiveness and growth. Canadian regulators can similarly define clear, actionable objectives that align with both domestic needs and global standards. These should be S.M.A.R.T goals with measurable outcomes with performance updates being regularly communicated to industry and the public in a transparent and timely manner.
2. Streamline Regulatory Processes and Agility
Operational efficiency is crucial for a responsive regulatory environment. By simplifying processes, adopting technology, and ensuring transparency, Canadian regulators can make it easier for institutions to comply with regulations and for consumers to understand their rights.
3. Engage with Stakeholders
The PRA's pilot survey is a testament to the importance of stakeholder feedback. Canadian regulators can benefit from regular engagement with industry participants, consumers, and other stakeholders to gather insights and refine their approach.
4. Collaborate Across Regulatory Bodies
Financial regulation often involves multiple agencies and bodies. By fostering collaboration and coordination among these entities, Canadian regulators can ensure a holistic and consistent approach to financial oversight rather than create political headwinds or inefficiencies.
Conclusion
Victoria Saporta's enlightening speech at the Bank of England conference underscores the PRA's unwavering commitment to fortifying the UK's stature in the global financial arena. By emphasizing trust, operational efficiency, and responsiveness, the PRA sets a gold standard for regulatory frameworks. The insights gleaned offer invaluable lessons, not just for the UK but for global counterparts like Canada.
See: March 1, 2019: NCFA Submission to the Ontario Securities Commission on Regulatory Burden
As the financial landscape continues to evolve, the principles of clear vision, streamlined processes, engage with stakeholders, and inter-agency collaboration remain paramount. These guiding tenets, as highlighted by Saporta, serve as a beacon for regulators worldwide, ensuring that financial systems are robust, transparent, and in tune with the needs of the times.
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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Solid World, KlimaDAO, and SCB Group Unite for a Sustainable Future
Carbon Markets | Sep 21, 2023
Solid World, KlimaDAO, and SCB Group announce partnership to deploy prepaid carbon liquidity using blockchain technology, enhancing efficiency and transparency in the carbon market.
With global climate challenges on the rise, there's a pressing demand for clear, efficient, and adaptable carbon market strategies. The new alliance between KlimaDAO, SCB Group, and Solid World highlights the next phase in carbon market dynamics, shedding light on the potential impact and direction of this collaboration.
- KlimaDAO is at the forefront of blockchain-based carbon credit solutions, dedicated to fostering a sustainable future. With a vision to revolutionize the carbon market, KlimaDAO provides cutting-edge market infrastructure, ensuring transparency and efficiency in carbon trading.
- Solid World (an NCFA Industry Partner) offers innovative infrastructure solutions pioneering the next generation of carbon market platforms. Solid World's infrastructure stands out for its ability to create a liquid market for prepaid carbon credits that are yet to be issued. This is a game-changer for the Voluntary Carbon Markets, offering predictability of funding and reducing payback times for project developers. The introduction of the CRISP framework further augments the confidence in such projects. The new prepaid credit pool has launched with 54,050 tonnes of carbon and over $1M in total liquidity.
FFCON23 Solid World Presentation: Harnessing the Power of DeFi to Tackle Climate Change: A New Era of Sustainable Finance
- SCB Group is a global leader in the carbon market and committed to driving positive change through sustainable projects. With a deep-rooted belief in the power of distributed ledger technology, SCB Group collaborates with partners like Solid World and KlimaDAO to nurture a more sustainable world and advance the collective goal of a low-carbon future.
Gold Standard Certified Projects
- One of the highlights of this partnership is the sourcing of prepaid credits from The Gold Standard certified project. Such projects not only ensure the provision of high-quality carbon credits but also contribute to sustainable development goals.
- The focus on providing Improved Cookstoves for Rohingya Refugees in Bangladesh is a prime example of combining humanitarian efforts with environmental conservation.
Shared Vision
- Andrew Bonneau of KlimaDAO expressed enthusiasm about the collaboration, highlighting the shared vision of all three entities. They aim to harness technology to foster a dynamic, innovative, and scalable climate finance market.
- Stenver Jerkku, CEO of Solid World, emphasized the goal of bringing clarity and transparency to carbon markets, envisioning a future where clear commodity prices catalyze significant change.
See: Solid World Unveils CRISP: Risk Assessment Framework and Tool For Carbon Forwards
- Kevin McGeeney, CEO of SCB Group, shared his personal experience visiting the refugee camps in Bangladesh, witnessing the positive impact of improved cookstoves on the Rohingya community. He believes in the potential of distributed ledger technology to support the Voluntary Carbon Market and envisions a sustainable world.
Looking Forward
The partnership between KlimaDAO, SCB Group, and Solid World is more than just a business collaboration. It represents a confluence of technology, sustainability, and humanitarian efforts. As the carbon market continues to evolve, such partnerships will play a crucial role in shaping its future, ensuring that it remains robust, transparent, and aligned with the global goal of combating climate 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, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Bank Consortium to Launch “Paze” to Challenge Big Tech’s Fintech Dominance
Mobile Wallet | Sep 20, 2023
Image: Paze website
Major American banks like JPMorgan Chase, Bank of America, and Wells Fargo are gearing up to launch "Paze", a mobile wallet that will connect directly to the credit and debit card accounts of 150 million customers.
The rise of mobile wallets and digital payment solutions by tech companies has been meteoric. Apple Pay, for instance, has seen its user base grow from 60 million to over 500 million in just five years. Such numbers are not just impressive; they're a clarion call for banks to innovate or risk being sidelined.
See: Bank CEOs Defend P2P Payments Network Zelle in Senate Hearing Over Consumer Fraud Handling
As banks are increasingly leaning towards partnerships with fintechs, there are rising concerns from regulators. They are wary of the potential risks these collaborations might introduce, especially in terms of customer data and security.
Paze - Collaboration Over Competition
Paze is not just another mobile wallet. It's a strategic initiative by giants such as JPMorgan Chase, Bank of America, and Wells Fargo. Designed to connect directly to the credit and debit card accounts of a whopping 150 million customers, Paze aims to be the go-to mobile wallet for the masses.
The launch of Paze highlights a significant shift in the banking industry's approach. Gone are the days when banks believed they could individually take on Big Tech and emerging fintech startups. The focus now is on partnerships and collaborations.
Operated by Early Warning Services, the same consortium group behind the successful payments app Zelle, Paze is a testament to the collaborative spirit of traditional banks. It signifies a shift in strategy, where banks are pooling resources to defend their turf against the encroaching Big Tech.
Early Warning announced the recruitment of Cameron Fowler, a top executive from the Canadian bank BMO Financial Group, as its next chief executive. Fowler is expected to join the company in October.
Challenges Ahead
While the optimism around Paze is palpable, the road ahead is not without challenges. The consortium will need to navigate these regulatory waters carefully, ensuring that Paze is not just innovative but also secure and compliant.
See: Will Top of Digital Wallets Threaten Traditional Credit Card Markets?
For Paze to be a game-changer, it needs to offer direct connectivity to customers' bank accounts. This direct connection could give Paze an edge over competitors like Apple Pay, which doesn't hold any funds. However, details about the full functionality of Paze or whether users will be able to access their account information through the app are not yet disclosed.
The mobile wallet space is becoming increasingly competitive, and while Paze is a significant initiative by major banks, it will face competition from several other payment innovations such as:
- Apple Pay Later: In March, Apple announced a new "buy now, pay later" product called Apple Pay Later. Unlike traditional financing, Apple plans to fund this service with its own money rather than using bank financing.
- Elon Musk’s X (formerly known as Twitter): This platform aims to offer banking services to its vast user base, further intensifying the competition.
- Venmo: Owned by PayPal since 2013, Venmo is a popular peer-to-peer payment app. While its payment volume is smaller compared to Zelle, its brand recognition and user-friendly features make it a notable competitor.
- Government Initiatives: Governments worldwide are also looking into creating their own digital payment solutions. Such as FedNow in the US and the Central Bank Digital Currencies (CBDCs) are being explored by various countries as a way to modernize the financial system and provide a state-backed digital currency.
- Other Big Tech Initiatives: Other tech giants like Google with Google Pay and Facebook with Facebook Pay are also making strides in the digital payment landscape.
- International: Globally, there are significant players like Alipay and WeChat Pay in China (enables foreign users), which dominate the mobile payment landscape in their regions.
Looking Ahead
The fintech landscape is undergoing rapid transformation, with both traditional banks and tech giants vying for dominance. As Paze emerges as a collaborative effort by major banks to reclaim their space, it signifies a broader trend of strategic alliances in the face of Big Tech's encroachment.
See: [Brookings Event, Oct 6, 2023]: Payments in America for a Digital Century
However, with continuous innovations, regulatory challenges, and evolving consumer preferences, the future of digital payments remains dynamic and unpredictable. Institutions that prioritize adaptability, user-centricity, and cross-industry collaborations will likely lead the next wave of fintech evolution.
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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