Global fintech and funding innovation ecosystem

Category Archives: Fintech Opinions

Canadian Loyalty to Financial Institution Reveal ‘Soft Satisfaction’ 62% Open to Change

Survey Insights | April 9, 2024

Freepik gpointstudio women using tablet in coffee shop - Canadian Loyalty to Financial Institution Reveal 'Soft Satisfaction' 62% Open to Change

Image: Freepik/gpointstudio

How digital transformation is influencing Canadian loyalty to financial institutions

The digital age is transforming the landscape of financial services, compelling Canadian financial institutions to reassess their strategies for maintaining customer loyalty. A recent survey by Abacus Data, conducted with 3,550 Canadians, shows the evolving relationship between Canadians and their financial service providers. With the imminent implementation of open banking legislation, this article looks at the current state of financial institution loyalty in Canada, offering insights into consumer behavior, preferences, and potential industry shifts.

How Consumers Look at Loyalty to a Financial Institution

Consumer loyalty to financial institutions refers to a customer's continued preference for and engagement with a specific bank or financial service provider over others. This loyalty can stem from various factors, including satisfaction with the institution's products and services, the perceived value these services offer, the quality of customer service, and the level of trust the consumer places in the institution. Loyalty is not just about a reluctance to switch to another provider; it often involves a deeper emotional connection, where the customer feels a sense of allegiance or commitment to their financial institution.

See:  Open Banking Insights: Decoding Canada’s Financial Future

According to the survey results, the top reasons for 'remaining with a financial institution' are:

  • 51% Long standing relationship
  • 46% Convenient branch / ATM locations
  • 44% Satisfactory customer experience
  • 42% Familiarity with Bank's online and mobile platform

Let's break it down further and look at the key dimensions typically characterize consumer loyalty in the context of financial institutions:

  • Trust is a foundational element where customers believe their financial institution acts in their best interest, keeps their money safe, and maintains confidentiality.
  • The contentment or satisfaction experienced or perceived from the institution meeting or exceeding customer expectations in terms of products, services, and customer support.
  • The convenience or ease of accessing and using the institution's services, including branch locations, online banking, and mobile apps, which can significantly influence loyalty.
  • Personalization of services and communications to individual needs and preferences, making customers feel valued and understood.
  • The frequency of engagement and communication between the institution and the customer, including feedback mechanisms, responsiveness to inquiries, and the overall customer service experience.
  • Loyalty programs designed to reward customers for their continued business, such as points, lower fees, or higher interest rates on savings accounts, which can enhance the perceived value of staying with an institution.

See:  Open Banking: Revolutionizing Financial Data Sharing

Loyal customers are likely to use more of an institution's products and services, recommend the institution to others, and are less sensitive to price changes. In the competitive financial services sector, fostering consumer loyalty is crucial for retaining customers and achieving long-term success.

Are Canadians Satisfied with their Bank?

According to the survey results, most Canadians—about 7 out of 10—say they're happy with their main bank. Also, 77% are happy with how easily they can access their accounts and do banking online, and 69% like the products and services their bank offers.  However digging into the details shows that people aren't exactly satisfied with their full experience:

  • Only about half or 52% of the people feel like their bank really values them as a customer
  • Only half  or 51% think their bank is looking out for their best interests when it suggests products or advice
  • People also have mixed feelings about whether the fees they pay are fair for what they get

See:  CBDCs in Canada and Impact Drivers on Banking Choices

This points out a problem: It shows there's a big difference between what customers hope for and what they actually get from their banks, especially when it comes to personal attention. Banks need to focus more on making their customers happy, building trust, and making them feel valued. If they don't, they might lose these customers to competitors, especially as more choices become available in the banking world.

How about their willingness to switch?

The hassle associated with switching providers is a significant barrier, cited by 35% of Canadians. This includes the inconvenience of transferring direct deposits and updating account information, indicating a need for streamlined processes to facilitate customer mobility.

One of the survey's critical insights is the identification of the hassle associated with switching providers is a significant barrier, cited by 35% of Canadians. This includes the inconvenience of transferring direct deposits and updating account information, indicating a need for streamlined processes to facilitate customer mobility.  Some of the other top barriers to switching that were cited include:

  • 35% too much of a hassle / time consuming
  • 21% difficulty in transferring payments/deposits
  • 21% loyalty with current institution
  • 20% concerns about penalties or fees/fines for switching

As a follow-up question, consumers were asked about their willingness to switch if the process were more streamlined (aka Open Banking) and a total of 62% said that they would be open to switching.

Abacus data willingness to switch if the process were streamlined - Canadian Loyalty to Financial Institution Reveal 'Soft Satisfaction' 62% Open to Change

Image: Abacus Data survey

Keeping Customers Happy in the Digital Era

Key findings reveal a marked readiness among younger demographics to consider alternative financial services, hindered primarily by the perceived hassle and administrative burdens associated with switching providers.  Notably, many Canadians base their choice of financial institution on convenience and reputation rather than the financial benefits or service quality offered. This decision-making pattern suggests a market ripe for disruption, where open banking could catalyze a shift towards more informed and value-driven consumer choices.

See:  BoE Report: Open Banking Boosts Productivity, Competition

Key stakeholders can immediately focus on improving their offerings such as:

  • FinTechs and banks should streamline online onboarding, making it easier for consumers to switch or open new accounts, possibly through a unified digital ID system. This could significantly reduce the administrative hassle associated with switching providers.
  • Leveraging data analytics and the power of artificial intelligence, institutions can offer personalized financial products and services. Tailored solutions could attract those who may not have considered switching due to a lack of compelling alternatives.
  • Educational initiatives to improve financial literacy can help consumers make informed decisions based on more than just convenience or familial ties. This is particularly relevant for younger demographics who show openness to change.
  • Focus on improving the overall customer experience, from digital interfaces to customer service responsiveness. Satisfied customers are more likely to remain loyal despite the allure of alternatives.

How Canada's Open Banking Regulations Complement Current Consumer Trends

Open banking regulations are expected to streamline the process of sharing financial information between institutions with consumer consent, thus minimizing barriers. This facilitation could encourage more Canadians to consider alternative providers if the process is perceived as less cumbersome and time-consuming.

See:  Can Canada Harvest the Next Wave of Productivity Growth?

By allowing third-party developers to access financial data through APIs—with consumer consent—it promises a new era of financial services characterized by increased competition, productivity, consumer choice and personalized offerings.

1. Enhance Competition and Consumer Choice

The survey's revelation of a significant openness among Canadians to switch financial institutions aligns perfectly with open banking's ethos. By facilitating easier data sharing and simplifying the transition between providers, open banking is poised to lower the barriers highlighted in the survey, potentially ushering in a wave of consumers ready to explore alternative financial services.

2. Drive Financial Innovation

Open banking's emphasis on data sharing and consumer empowerment could directly address the survey findings that highlight a preference for convenience over financial benefits. It offers Fintechs and traditional banks an unparalleled opportunity to innovate, providing consumers with solutions that offer real value, from personalized financial products to comprehensive management tools that enhance financial literacy and decision-making.

3. Address Barriers to Switching

The administrative hassle associated with switching financial providers—a significant barrier identified in the survey—could be mitigated through open banking regulations.

See:  Feds Promise Open Banking Laws in 2024 and to Broaden Access to Payments Canada

Streamlined processes for sharing financial information between institutions could encourage more Canadians to consider their options, making the financial landscape more dynamic and competitive.

4. Impact on Banks, Fintechs, and the Economy

For traditional banks, the survey and open banking present both a challenge to retain customers and an opportunity to innovate. Fintechs, on the other hand, stand to benefit significantly, as open banking levels the playing field, allowing them to offer new services that directly address consumer needs and preferences.  The broader implications for productivity and the economy are equally promising. Enhanced competition and innovation in the financial sector can lead to more efficient services, potentially lowering costs for consumers and businesses alike. This efficiency can contribute to economic growth by freeing up resources for investment in other sectors.


The findings from Abacus Data illustrate a 'turning point' for the Canadian financial services sector. As consumer expectations evolve, so too must the strategies of financial institutions. The emerging trend of openness to alternative providers, particularly among younger demographics, signals a shift towards a more dynamic and competitive banking landscape.

See:  Open Banking Regulation in the U.S. Strikes a Chord

Traditional banks and emerging Fintech firms must navigate these changes by fostering strong customer relationships, enhancing digital offerings, and simplifying the switching process. Doing so not only secures customer loyalty but also positions these institutions to thrive in the era of open banking.

NCFA Jan 2018 resize - Canadian Loyalty to Financial Institution Reveal 'Soft Satisfaction' 62% Open to ChangeThe 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:

Latest news - Canadian Loyalty to Financial Institution Reveal 'Soft Satisfaction' 62% Open to ChangeFF Logo 400 v3 - Canadian Loyalty to Financial Institution Reveal 'Soft Satisfaction' 62% Open to Changecommunity social impact - Canadian Loyalty to Financial Institution Reveal 'Soft Satisfaction' 62% Open to Change

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - Canadian Loyalty to Financial Institution Reveal 'Soft Satisfaction' 62% Open to Change


Fintech Fridays EP62: The Future of Investment Crowdfunding: Innovations, Data, and Opportunities

About NCFA Canada | Craig Asano | Apr 5, 2024

EP62 Sherwood Neiss Banner - Fintech Fridays EP62:  The Future of Investment Crowdfunding: Innovations, Data, and Opportunities

EP62 Sherwood 'Woodie' Neiss

Apr 5, 2024: NCFA's Fintech Fridays podcast episode 62

The Future of Investment Crowdfunding: Innovations, Data, and Opportunities

Featured Guest: 

SHERWOOD 'WOODIE' NEISS, Principal, Crowdfund Capital Advisors (LinkedIn)

Mr. Neiss, based in the US, is at the forefront of the investment crowdfunding industry, from issuance to data analysis, to secondary trading and liquidity.  He co-authored the "Crowdfunding Exemption Framework," which became the basis of Title III of the U.S. JOBS Act to legalize equity and lending-based crowdfunding.  He co-founded Crowdfund Capital Advisors ("CCA"), a consulting firm serving certain governments and multi-lateral organizations, including the Inter-American Development Bank, the World Bank, governments of Chile, Malaysia, Israel, and the UAE.  He is also a co-founder of GUARDD, the EDGAR of financial disclosures for private companies, and is a General Partner of D3VC; a Venture firm focused on diversified investing among investment crowdfunding issuers.  He is the chief architect of the CCLEAR Regulation Crowdfunding Database, which tracks and monitors online security transactions for investors, regulators, platforms, and the media.  Before crowdfunding, Mr. Neiss co-founded FLAVORx, Inc., acted as its chief financial officer, and won Ernst & Young's Entrepreneur of the Year award, as well as the Inc. 500 award three years in a row.  He's also a long standing advisor at NCFA.

About Crowdfund Capital Advisors

Crowdfund Capital Advisors (CCA) is a crowdfunding advisory, implementation and education firm founded by Jason Best and Sherwood Neiss, the leaders of the securities-based crowdfunding movement. CCA provides comprehensive advisory solutions to both public and private institutions.


About this episode

In this enlightening episode of Fintech Fridays, Season 4, Episode 62, host Craig Asano, founder and CEO of NCFA Canada, sits down with the distinguished Sherwood 'Woodie' Neiss, a pioneer in the investment crowdfunding industry and an advisor to NCFA. Together, they delve into the evolution of investment crowdfunding, its impact on startups and investors alike, and the potential for future growth. Woodie shares his journey, from the inception of crowdfunding regulations to leading the charge with data-driven insights and AI technology in investment strategies. Listeners will gain an insider's perspective on the latest developments, the significance of data in shaping the industry, and the role of technology in advancing investment opportunities. Whether you're an investor, entrepreneur, or fintech enthusiast, this episode offers a comprehensive look into the dynamic world of investment crowdfunding, revealing how it's reshaping the landscape of finance and opening new doors for innovation and growth. Enjoy!!

Duration:  45 mins


Episode Jump Links:

00:00 Episode introduction

03:22 Meet Sherwood 'Woodie' Neiss

04:55 Investment crowdfunding and its evolution

06:34 Genesis of, AI driven venture fund, and GUARDD

11:40 RegCF data access, reports, algorithms

13:47 Current state of U.S. Regulation Crowdfunding 2024

15:00 Impact of Crowdunding, innovation, job creation, economic stimulus ($6.8 billion)

16:15 Value creation, circular impact and velocity

18:50 JOBS Act 4.0, RegCF regulatory improvements

21:25 Investment Crowdfunding vs Angel-VC-seed/pitchbook

22:00 RegCF attracting more mature issuers and investors, removing FUD

23:38 RegCF diverse and inclusive, 41.7% offerings from women or minority

26:00 RegCF is scaling towards $1 billion annually

29:18 Platform dynamics and opportunities

31:28 Global expansion and tokenization

35:30 AI and technology's impact on RegCF markets

37:12 How to get started in industry, job insights and opportunities

40:05 Rapid fire questions

42:25 How to get in touch with Woodie

43:41 Episode close


Subscribe and tune in each Friday to check out the latest movers and shakers in fintech. Listen to more podcasts here:

Season 1 | Season 2 | Season 3 | Season 4 | and weekly newsletter


Fintech Friday Transcript of Episode 62:

SHERWOOD 'WOODIE' NEISS, Principal, Crowdfund Capital Advisors

Intro: Welcome to fintech Friday's a weekly podcast brought to you by the National Crowdfunding and Fintech Association of Canada and partners. Covering all things fintech, blockchain, AI and alternative finance.


Craig Asano: Hello everyone. My name is Craig Asano, the founder and CEO of NCFA Canada, welcoming you to another episode of Fintech Fridays. This is season four, episode 62 of NCFA's weekly podcast together with partners, where we uncover the latest and greatest and sit down with fintech founders, investors and talk about innovations, the developments, news and in today's instance, the latest and greatest in Investment Crowdfunding in 2024. Today we have an incredible guest. He's been on here before, so don't be shocked if you recognize Mr. Sherwood Neiss, aka 'Woodie'. So I'm going to from this point on, refer to him as Woodie. It's a very affectionate, nickname, but he's based in the US, he's also an NCFA Advisor, but I cannot think of someone better who's at the forefront of investment crowdfunding industry and has been so since its inception. So they're involved, and Woodie particularly, with data analysis right from Stem to stern of all aspects of crowdfunding. And they specialize in investment crowdfunding, secondary trading, liquidity, all the latest, topics. So, a long time ago, uh, we even had, for those of you who might actually have been there, Woodie, we flew him up. He came out to Vanfunding conference in Vancouver, talked about, uh, what he was doing at that time. Fast forward many years into the future, we have the privilege of looking at the data.  Everything's data driven, a lot more insightful. There was a lot of unknowns, I wouldn't say, looking back, a tremendous amount of risk. But we're very excited to dig in to the latest data of what's happening in investment crowdfunding and also cover off the future. So, just very quickly, because, we do have a hard stop at 45 minutes for this podcast today. And I just want to say that Woodie has been an author. He's been a global speaker. He's launched a variety of crowdfunding related brands, and we're going to give him an opportunity to talk a little bit about, Crowdfund Capital Advisors. What's going on there? He's the co-founder of a company called GUARDD. So we'll let him talk about that later. He's got CCClear or all the regulation crowdfunding data project on the go and all the data pipelines and partnerships with all the various data sources, as well as his background. He was always, even pre-crowdfunding, he had won awards. He's Ernst and Young's entrepreneur of the year award. I bet you you don't hear that as as often as you do crowdfunding these days, Woodie. But he was a triple (3 years in a row) Inc 500 recipient as well. So, Woodie, I just want to welcome you back to the show. Thanks for agreeing to sit down to share your knowledge and experience with us.


Sherwood 'Woodie' Neiss: Hey, it's great to be here, Craig. It's just funny story, if you remember, I was late for the event in Vancouver because I had told the immigration people that I was here in Canada to legalize crowdfunding, and so they detained me. And then they they wanted to know everything that I was doing. And I was just like, maybe I used the wrong word, and so I, showed up to your event like ten minutes late but it made for a funny story when I got on stage.


Craig Asano: Yeah, it was very uncomfortable. I remember I was sitting there at the podium. You were the keynote speaker, and I just had to cover off ten minutes. That's okay. We've been there and done that. but, as just someone who's so involved with the space, very few OGs I guess we can say, that can sit down. Actually, both you and I and reminisce about old times. We always say it that we'd like to do sort of an episode that's just storytelling What it was like and more shoot from whatever is on the mind but today we're a little bit more focused because we want to cover off the report. We want to dig into the data, find out what's going on. But to kick things off, like we always do with with the format of the podcast here, we just give the speakers an opportunity to talk about, how you got involved with the sector that we're covering.   Today it's all about investment crowdfunding. What was that journey for you? What were the motivations? And maybe you can kick it off with a very high level definition from your perspective, the guru, what is investment crowdfunding and what are you doing with all these other projects you got on the go?


Sherwood 'Woodie' Neiss:  Investment crowdfunding is really Kickstarter, Indiegogo, but with securities regulations attached to it. So instead of people giving money to people with good ideas, people are investing money in people that have great business ideas. And in exchange for that, you're getting either an equity instrument or you're loaning money, so it's a debt instrument. This industry really started in 2016 here in the United States. It was something that, of course, accredited investors could be doing prior to this. It couldn't happen online but what we did in the Jobs Act of 2012 was to open the door to both retail investors as well as general solicitation. So now we enable these funding platforms that look like Kickstarter and Indiegogo, but are now regulated by the SEC and overseen by FINRA here in the United States to actually be a matching service. And so people with great ideas can list their businesses up there to raise capital. Investors can look at these deals. There's all these disclosures related to it. That's what we sort of capture information on 125 data points on every single company, and we've been doing that since 2016. We write this annual state of the investment crowdfunding industry report. It's only 150 pages long this year. So you could see, like in the first year when it was eight pages long, the industry's only grown just a tiny bit since then. No, it's grown tremendously and I think actually one of the things that might be helpful in this conversation is maybe if I share some of the slides, related to that as well.


Craig Asano: Yeah, absolutely. Did you want to talk about what you're doing I'm kind of interested to hear a little bit about the D3VC and the definition that I got for that project. It's all around AI venture and it's on top of the investment crowdfunding industry. So what's going on there?


Sherwood 'Woodie' Neiss: So, we wrote the law. We wrote the dummies guide to investment crowdfunding. We wrote the world Bank report. We traveled to 43 countries around the world. When the industry launched in 2016, we launched the database that we call CClear, and that collects the information on every company that's raising money online. That data in the beginning, was just so we could track what was happening in the industry, with all these offerings, because there's only a certain amount of information that the SEC collects and so we wanted to expand upon that. Have things like what industry are you in, what valuation are you does the company have if they're doing multiple rounds of financing online, that really becomes a valuable information. As this data set grew, we realized a few things. So we were just sitting in front of our computers every day looking at the new companies coming in, and we're thinking, wow, you know, fascinating company. You know, team that's got great experience. They've clearly done this before. They've raised VC capital. I would invest in them. with 8000 companies that are doing this, it gets to be a little overwhelming. So which ones do you decide to invest in? And with the beauty about machine learning and artificial intelligence and these large language models that we're seeing today is you can take data and you can feed it into these algorithms, and you can train these algorithms to look for signals depending on what you're doing.  In our case, I sat down with three PhDs that are in data science, and I said, listen, I want you to take the data that we have, and I want to develop an algorithm that compares the companies in the data set that have graduated either out of it or gone on for follow on rounds of financing at a higher valuation to companies that are coming into the data set. So when they come in, I want to look at all the data that we have on them to see if there's signals that match those companies that have gone on for great things and if there are those signals there, then we want to have that, algorithm feed us up a weekly report that tells us which companies we should apply a human layer of diligence to. Because algorithms are great when they're looking at data, but that's very quantitative. It's very black and white. What we are trying to do is use take the data, let's take the human element out of that.  A machine can do all that. You tell us which ones we should look at, and then we'll do our own human layer of diligence around it. So D3VC is an AI driven venture fund where we've taken all our data and we use it to look for deals on a weekly basis that we should be doing diligencing. And it's really fascinating. I mean, the companies that are in the data set are not startups that are unproven. These are early stage companies that have proven business models. They've got patents pending on a lot of their technology. A lot of them are at first revenue and so they're looking for money now to scale. And this is a great place to sort of play in and invest in because, if you're in this early stage investment arena, you know that early stage investment far outperforms late stage investment. I think it's 19.1% to 11.7% or something like that. So there's a there's a great delta there to get in at an early stage. So we're trying to apply AI to what we're doing with this investment thesis. That's D3VC. So the other flip side of this is, is when do I get out of these investments. You know, do I have to sit on this investment until the company has an exit, a sale, a merger, an IPO? And within the regulation that we have here in the United States, we put a 12 month holding period on these securities, after which they can be freely transferable.  Now, the problem at that point is you just can't sell it to anyone. You actually have to go through a process, and you usually list it on what we call an alternative trading system. But in order for these securities to trade on an ATS, they have to comply with state securities laws as opposed to federal securities laws. And the state securities laws require that companies do ongoing disclosures so that investors, when they're looking at a company to buy or sell that stock, they have all the information, the most recent information on them. And so GUARDD is a company, a fintech company that we built to actually collect current information on companies that want to sell their securities on these ATS's so that they can comply with state securities laws that freely allow these securities to trade in all 50 states here in the United States. So we're at this sort of, you know, convergence of data, liquidity and venture capital. And all three of them coalesce under Crowdfund Capital Advisors.


Craig Asano: That's awesome. So if any of our listeners like investing in investment crowdfunding companies, can they access the intelligence that's coming out of the D3VC fund, and do they just get in contact with you there?


Sherwood 'Woodie' Neiss: Yeah. So it's a venture fund, so like any venture fund people are investing into the fund as an LP, and so that's a typical fund structure. So you know, we talk to people all the time that are interested in that. But people can also access the information that we produce through CCLEAR through a lot of what you're seeing behind me, which are reports that we publish, we have a daily, uh, a weekly tear sheet, which is free for anyone to get that shows percentage changes and what's happening in the marketplace. We have the biweekly report that really digs into what what's happening over a two week period and compares that. You can see what's happening in terms of investors investment sentiment, deal flow. So it's high level and then we've got a monthly report that really digs into like the top ten offerings. You've got an industry breakout there where we dig into software industry and show the trends over the past 12 months in that industry or sector and we've done that for restaurants. We've done it for beverages, we've done it for health care. So that's another report that people can subscribe to. And then I think the coolest thing that we have, which is a direct correlation to D3VC is our capital pulse ratings report, and so each week that comes out with the top 15 offerings that our algorithm says that we should look at, it's not necessarily the ones that we will be investing in because like I said, we do our human layer of diligence. But it's a great tool for people that are interested in just seeing, you know, you've got an algorithm that's already looking at this. Maybe I can use that to help my investment decision.


Craig Asano: Fantastic. Well, I think this is a perfect segue to actually crack open that report in terms of slides and have a look at what kind of data we're tracking and, you know, get some insights in the trends. And if we have a specific question, we'll maybe just pause you here and there, but we'll spend a little time going through at a high level what your, your take on some of the key slides and where you think it's headed.


Sherwood 'Woodie' Neiss: Okay. Um, I think you see the whole slide thing right now. Yeah.


Craig Asano: Got the whole slide and, yeah.


Sherwood 'Woodie' Neiss: All right. So again this um, this trends report, it was it's 200 slides long. Anyone can download it. Um, that QR code will take you right to where you can download those 200 slides related to the 150 page report. It's completely free. This is an abbreviated version of it. I am just going to quickly fly through a few things on it that are of, I think, of interest, Just the highlights and this is as of December 31st, 2023, there were 6800 issuers that ran 8000 plus offerings. So that means issuers are running multiple rounds online. We're seeing that more and more, which means that people are finding investment crowdfunding to be a viable means to access capital. And right now, of course, you know, we're almost the end of March. We're over 7000 issuers. We've got 8300 deals taking place. So you can see that that compounded annual growth rate at the bottom there, that 59% is really what's happening. This industry is not slowing down. It is just getting traction. Whether you're looking at it from the number of deals, the capital that's flowing in or the number of checks that are being written. Now, again, we only focus on what's happening in the United States. So the data that you're looking at really just shows you how this is democratizing access across the United States. With 1800 cities that have been funded, we've had 2.2 billion. It's over 2.3 billion now as of March, invested into these companies that have been successful with investment crowdfunding. There's been over 2 million investors that have written checks and these companies are creating jobs and they're pumping money into local economies all across the nation. Those are two critical things that governments, local governments, state governments, federal governments should be focused on. Because if you're looking at how you can stimulate not just entrepreneurship, innovation, but jobs and economic stimulus, this is a great way to do it by promoting, investment into startups and small businesses. These companies, for the most part, when they raise capital, hire people, okay. A lot of it goes into hiring people. A lot of it goes into scaling a business. That's why so many jobs have been created. But it's not just direct jobs. It's indirect jobs that companies use because they have to have service providers come in and help them with their business. These companies are, you know, they take in money, but they've got a whole expense expense lines on their PNL statement. And those expense lines are really money that's being pumped back into these local communities, and that's really important because that money circulates in these local communities. Right now, it's about $6.8 billion annually. So you can see we're having a sizable impact on what's happening. We think, granted, our economy's tremendously huge, but $6.8 billion is nothing to sneeze at.  The other final thing on this slide that's really important to point out is these companies start at an early valuation, a very low valuation typically, and then they grow and as they hit their milestones, they can raise money at a higher valuation. So the latest valuation related to these companies that are raising money online is $75.6 billion. So what does that mean? It means that when these companies do have their exits, someone's going to get rich because that $75.6 billion is tied up, but it will be returned to investors. So we love that sort of part of the story. The other thing about this is the industry started here in 2016. So we're in our seventh year of it. If you look at venture investing, they have a 7 to 10 year horizon because that's usually when the exits start to happen. That's what we're seeing here in the United States. And so we're starting to see these companies being acquired, go public. And that's where these returns are starting to happen for investors. So we've got the 2016 vintage starting to have their exits. We're going to start seeing the 2017 and 2018 coming up. And remember I told you there's more deals happening. You know, we started with just a few deals in 2016. So you can see the velocity of the exits will be rapidly increasing over the next few years as well.


Craig Asano: That's fantastic. Before you go on to the next slide, just go back for a second. How supportive has the US government been to investment crowdfunding and what are they doing? Are they funding education? Are the economic development agencies involved with promoting investment crowdfunding as a source of job creation, everybody. Just looking at these numbers, I'm just interested to hear your perspective on in 2024 or maybe 2023-24, in current times, how involved is the government in promoting crowdfunding?


Sherwood 'Woodie' Neiss:  Not at all.


Craig Asano: Not at all. Okay, so that's an interesting response because through the media we've seen the original Jobs Act and we've seen an evolution of sorts. And we catch wind of the Jobs act is evolving. They're constantly tweaking the rules. And now we got a Jobs Act I think it's called 4.0 Can you provide your perspective on how that might impact investment crowdfunding markets, maybe not the, or are they more around the laws?


Sherwood 'Woodie' Neiss:  So currently in front of Congress, there's a bill that passed the House called H.R. 2977. And a part of it is includes improvements to regulated investment crowdfunding that would increase the cap from 5 million up to 10 million. Also have fixed some things in there that, were part of that created problems like funding portals could be liable for material misstatements but in fact, if, you know, funding portal is just a listing agent, they're not doing diligence on the details of an offering that's really for the investors or the crowd to do. So there were fixes like that in there, but the reality of things here in the United States is quite dismal when it comes to policy happening. We've got such a divided Congress. No one wants to have the other side look like they're getting a win and so this passed the House on strict party line votes, essentially. And the House is Republican controlled right now, so all the Republicans voted in favor of that, and currently the Senate is controlled by Democrats. So we are trying to get the message out there that this is good for our economy. But again, I don't think any Democrats want to show Republicans that they can have a win and so I don't think this is much opportunity for anything happening in the Senate until something changes here in the United States.


Craig Asano: Well, caps of issuer caps of 5 million and potentially 10 million are staggering numbers when you compare them to the Canadian, uh, investment crowdfunding landscape. So that was just one of the points that I wanted to flesh out there but okay, back to you, to the slides. Okay.


Sherwood 'Woodie' Neiss: All right. So let's just hit on a couple of these things. This shows you the deal flow over time. I told you in 2016, that's when the industry started, you could see that there was less than 250. It's steadily grown in 2023 was a tough year here in the United States for investing, whether you're in venture capital or in investment crowdfunding. I think a lot of these issuers saw that as well and decided to hold back on their offerings. So they're waiting to see and probably time the market. We're already seeing an uptick in 2024. So I think that issuer sentiments coming back where they'll be coming into the marketplace, more so than they did in 2023. But the industry is still growing, and we are just in inning two of this and you will see thousands of these companies raising money online. I guarantee you, within the next five years.  This slide shows you what to happen in the VC world in comparison to investment crowdfunding. The yellow line is venture capital, early stage investments as tracked by PitchBook. The blue line is deal flow activity through a regulated investment crowdfunding. So what got a little crazy in 2022 and 2023 but there's this general upward trend that we're seeing here. So VCs pulled back, but the crowd didn't in terms of wanting to invest in these deals or issuers coming into the marketplace.  These slides that I'm going to hit on next really go to prove that there was a lot of fear, uncertainty and doubt when the industry got started. And Craig, you mentioned that as well in terms of what kind of companies are people investing in? These are really risky. Maybe you shouldn't be investing in them. And then when the industry launched, we had a lot of young companies two years, less than two years old, but now we're seven years into it and the average age of a company is four years old. So the risk profile that I'm going to show you over the next few slides is changed dramatically, which means that it's a better pool for fishing in because it's less risky investments. So you can put your money in and maybe not worry so much, particularly if the companies, you know, established and they're post revenue and generating revenues. This slide just shows you how the established revenues has grown. The startup where 73%, 73.4% in 2016. That's dwindled down to 52%. You can see the established companies has grown dramatically, up to 47% in 2023. And to my point, average revenues in the beginning, these companies barely had any revenues. In 2023, they have over $1 million in revenue. That's what you want to see. You want to see a company that's proven that there's a customer that is willing to buy your product or service, and you want to invest in it. And a company that needs capital to scale and so that's what we're seeing come into this pool. These post revenue issuers in the beginning were not the majority, it was 63% Pre-revenue now it's 63% post revenue. I love pointing this stuff out. Again, less risk, less risk. Here we track in our data set, women and minority founders, 41.7% of all the offerings in 2023 had at least one woman or minority founder. I mean, that blows past what happens in Silicon Valley, where only about 2% of women are minority founders get funded. So granted, the dollar amounts are much, much smaller, and you know what VCs can do, particularly with this, the few that they invest in far eclipses what we're doing right now. But if we stay on this trend, we're just going to see a lot more capital getting into the hands of women and minorities. And we also can look at those companies and we see that they run pretty solid companies, you know, stronger revenues, less losses as well. We track annual reports for the companies that raise money online and through tracking annual reports, we can see how the revenues changed from the year in which they were funded to the following year. And what we've seen by looking at that is these companies that have been successful in their investment crowdfunding offering have seen a 284.5% increase in revenues from the year in which they raised capital to the year afterwards. So something's happening. Is it the crowd marketing for the company that's bringing more customers in that's helping increase the revenue? Is it the money that was brought in helps the company pour more into marketing and sales? Maybe it's a combination of all of that, but I don't care. All I care is to prove that investment crowdfunding leads to better results for these companies. Not only that, but these companies are sustainable. If you look at what the Bureau of Labor and Statistics says, they estimate that 50% of all new businesses fail within five years. But within investment crowdfunding, it's 17.8%. So we ran a study to look at all 6800 companies last year to see who was out of business, and we found that 17.8% of them were. So what does that mean? You're going to be most likely investing in companies that are going to stick around longer. So again, less risky. So we love these sort of data points.


Craig Asano: That longevity in the stronger companies that have come through, the crowdfunding, had successfully closed crowdfunding rounds. Why do you think that that is the case? Is it because they have more access to capital, or is the extra exposure and other benefits from crowdfunding?


Sherwood 'Woodie' Neiss: I think it's access to capital. and I'm sure there's many variables, but I think you hit the nail on the head. If you look at companies when they're trying to get a message to Washington about what they fear, and it's a lot of the times the number one thing is access to capital. So because regulation crowdfunding exists and these companies can go online and raise money from people that believe in them, we've solved that problem. And so by solving for that problem, you're not solving for it  once, these companies go on and do multiple rounds of financing online. So you're continually feeding them capital as long as they hit milestones. People don't invest in companies if they're not hitting their milestones. And all that data is there to show them. But I think to your point, yeah, it's access to capital that's keeping them going. Right?


Craig Asano: Okay.


Sherwood 'Woodie' Neiss: All right. So just a couple other slides and then we can pop out of this because I could probably talk for years. This slide just shows you how capital has been flowing dramatically into the industry. It took us five years to get to the first billion dollars invested, and then it took 18 months to get to the next billion dollars invested. It won't be long before we have $1 billion invested in one year. That might be 2024. It might be 2025 but I think we're at the cusp of doing that now. What is interesting is if you look at this slide here, this one looks at the number of checks that are written. So it really was on a high growth rate through 2021. And then we what do we have in 2022. Well we had hyperinflation. We had the Fed come in and try and fix things with the interest rate. We had supply chain issues. All of that causes concerns with investors. And so investors pulled back and we saw that in the numbers here in terms of the checks that are written. And 2023, it was it was a little better than 2022, but everyone was waiting for the markets to sort of get their footing. And we've seen that here in the United States with what's happened in our public markets. There's a delay period between what happens at a public markets and what happens in the private capital markets. So I think we're now at that point where everyone's sort of comfortable with the soft landing that we're going to have, and we'll have more checks written. But what was interesting between these two charts is even though there were fewer investors, they were writing bigger checks. And that's why we saw the dollar amounts hit all time records in 2023. So the investors that stayed in the marketplace saw companies, great companies that I'm telling you are like, these post revenue companies that have great ideas and they're placing bigger bets on it. So, you know, I'm just going to take it out of that for now just so that we can talk about things. Because I know that was a lot that I just sort of shared.


Craig Asano: I think it's fantastic. I mean, you have investment crowdfunding as a whole, attracting stronger companies who are getting used to this cycle of having more access to capital than they had before in the past. Simultaneously, you have more mature investors writing larger checks. And it was interesting to see I'm not sure which one of the charts, but maybe five years in to see things really ramp up. And as the as the risk profile for these types of investments have changed. And kudos to you for setting up the CCLEAR database and tracking it, and now being able to with AI on top of that. So, you know, I want to dig into a little bit that we have about 15 minutes. So let's talk I guess a little bit about the platforms. I mean, you've seen all the data. What is going on? Is it that there's a concentration of a few platforms that are handling most of those deals? Are there opportunities for new entrants in terms of a portal operator to go get licensed? What do you see happening on the platform side?


Sherwood 'Woodie' Neiss: So since the industry launched, there were, I think, 119 companies that have registered with FINRA to run one of these funding platforms. It's not cheap. It's I'm sure the compliance related to it can be upwards of $1 million or more a year to run one of them. So you have to think, do I have the not just the ability to put one of these funding portals together, but to sustain the cost of managing and running it? Because you're going to you're going to operate on success fees. At least here in the United States, there are 80 platforms that are still active. Out of that 119.  On a monthly basis, I would say that there's probably about 35 that are actively doing deals. But of that, 90% of the deals are happening on the top 4 or 5 platforms. And on the equity side, you're seeing that in Wefunder, Republic, and StartEngine We've got new broker dealers that are coming into the space, Dalmore and DealMaker. DealMaker is Canadian but they're making a huge presence here in the US. And then on the debt side, we've got platforms like Honeycomb and Mainvest and SMBX that are really leading the way in debt offerings for this industry. So is there a place for people to come in? Yeah, 100%. If you can capture a vertical, maybe you want to focus on veterans, maybe you want to focus on women or minorities. I think there's the ability to launch a platform and build a niche in that space that allows you to own it. But right now, we really are seeing the Wefunders, the Republics and the StartEngines owning a lot of the space in the industry.


Craig Asano: And some of those big players like Republic have expanded their models beyond the more traditional equity and debt. And they've gone global. Can you talk about you know us one of those portals and what is their experience from what you know, as as they enter global markets and start to compete globally.


Sherwood 'Woodie' Neiss: Yeah. Because, you know, so one of the things that we realized about the internet is the ability to cross, um, you know, nation, you don't have to be anywhere to get a message across. And what we're finding with these businesses is businesses solve solutions that have opportunities globally, but they also have solutions for which there's investors that are interested in investing in them globally. And so how do you deal with that when you've got securities laws that are, provincial? So what Republic and some of these other platforms are trying to do is either partner or buy platforms in other countries so that they could prepare to allow for cross investing that so they could allow for deal flow to happen from one country to another. And I think that's what Republic is trying to do. They are also expanding like you said. There is securities tokens is a big focus of what they're talking about because they see they see a lot of liquidity opportunity down the road. But the way in which you can really have easy liquidity is through tokens, because you can put it on the blockchain. And with that, you've got the distributed ledger that can sort of track what's happening, particularly when it comes to international transactions. That'll reduce the friction and the time in which you conduct these transactions. And I think that's where Republic's been focused but we're seeing a lot of these platforms trying to figure out how they can partner or expand overseas.


Craig Asano: Do you think that the tokenization of real world assets, which is separate from private companies and the digital securities is an area that like I just read a report this morning from, CoinGecko that provides data services in that space and it's been booming since, 2023, mostly in 2024 because the crypto investment has taken off. But do you see those tokenized models and the global liquidity and crypto as the future for investment crowdfunding, or is it going to be just a separate, stream or there'll be full integration? What do you envision say, three years out, five years out?


Sherwood 'Woodie' Neiss: I see investment crowdfunding as, in a way leading the charge for a lot of what will happen. It's very hard for one of these huge multinational corporations to decide to do things on the blockchain and tokenize things. I mean, where do they even start? But when you've got these startup companies that are showing promise, if you can issue securities on the blockchain and you can have them as tokens, down the road, as these companies grow and scale, you're really enabling that that mechanism under which they can raise capital and trade their securities to really grow and scale. So I think a lot of what we're seeing here in this space, and interestingly enough, in 2024, I've seen multiple token offerings happen in the investment crowdfunding space. But I see these companies strategically deciding to do that because they see what you are talking about as the future and they're preparing for that. But again, when you've got these small companies doing their initial rounds of financing, this is the time to think about that. Because later on, it's just going to be very, very challenging for these companies to do things on the blockchain and tokenize things. You know, when you've got just these cap tables that are huge and you've got a whole system and structure in place to handle it right now that is very different from what we're doing with tokenization.


Craig Asano: Absolutely. Each rabbit hole has its own challenges. What about the technologies? I mean, ten years back, five years back, it was pretty simple. It seemed, more advanced at the time but since then AI has exploded. There's just been a shift. What new technologies are being applied in investment crowdfunding markets? I mean, obviously from your fund perspective, the AI due diligence and almost private company stock picker, if you will. Uh, what technology? What? Let's talk a little bit about the technologies. What's happening?


Sherwood 'Woodie' Neiss: I mean, I think what we're doing with the venture fund is leading that charge because we see the opportunity. On how do you take these tools that are currently being developed and leverage them for better outcomes? But even within the platforms themselves, there's a lot of compliance that is that goes with these offerings, and so you've got companies like KoreConx out there that are developing solutions that so once you do your raise, you can manage your cap table. You can communicate with your investors. So I've seen a lot of technology development happen in that arena, which I think is great because it doesn't just apply to companies raising money through investment crowdfunding. You know, if you have investors and you need to communicate with them, any of these technology tools will help. But, you know, that's really where I've seen the majority of it. I mean, were there other areas that you were seeing things?


Craig Asano:  Not specifically. I We just want to get your perspective while we have this time on where it's going. We're really talking about the future. We've got data to provide answers to almost all the questions that have popped up over the last ten years. So we're in a pretty good situation, I would say, uh, in particular, well the projects that you're involved with. One question. often we get calls from new grads, from innovators. They are always looking for new opportunities. And do you think in the investment crowdfunding space, there's specific set of skills or what sort of advice would you give for, the job opportunity. Folks are looking for for jobs. So where do you see do you see that as something that will continue to grow? Is it is it an area of focus? What sort of advice can you provide to someone looking to get into the market and get a job and get their start?


Sherwood 'Woodie' Neiss: I mean, there's so many different areas to look at it. I told you about the 310,000 jobs that have been created through this industry. So you could just look on these platforms to see which of the companies that are raising $1 million, and start looking up their email addresses and seeing who they're hiring, I think that might be the quickest way to a job. Just because they've got the capital to now hire employees. But all of these platforms themselves to have teams that work for them. So, if you just Google any of the, you know, 120 platforms that are out there, you can start going through that roster, particularly for in the tech side of things, this is this whole industry is tech-enabled. So you could reach out to the platforms themselves and look for jobs too. And then there's just so much opportunity in the compliance side. When you and when you put these offerings together, in many cases you will need a CPA review. So, oddly enough, and I don't know how many accountants are listening to this, but you can make a ton of money through regulated investment crowdfunding.  At least here in the United States because if they require CPA reviewed financials, it's not a full audit, but they're charging $3,000 a pop to do that. And you can do hundreds of those, and make a lot of money just by doing those. If you're a lawyer, you can work with either the issuers themselves or the platforms themselves. I know we've seen individual lawyers make a name for themselves as the crowdfunding lawyers. So that's an important thing. And then there's just experts in the field, like people want to know what are best practices. How do I launch a campaign or an offering that's going to attract people's attention and raise the most money? That's where you can work with us on the data, and become a partner that way. And go out there and then market your services, as someone that can help people succeed with their offerings.


Craig Asano: Yeah. No. It's fantastic. Well, I see we've only got about five minutes, 4 or 5 minutes left. I want to move to our favourite part of the show. We do the rapid. one answer responses. We're sort of expecting quick questions. I think we got a good sense that it's good to be in in investment crowdfunding. It's growing. There's a ton of opportunities in the U.S. Canada's got a long way to to go. Maybe it's a whole another show on how we we ramp things up here. But in terms of rapid fire questions, are you ready for a handful of quick questions and expecting some quick answers? So let's do it here. So in in a word, how would you describe the future of investment crowdfunding?


Sherwood 'Woodie' Neiss:  Optimistic.


Craig Asano: Optimistic. What is your go to financial app? One that you use all the time?


Sherwood 'Woodie' Neiss:  Probably my bank app.


Craig Asano: That's not a fintech, a bank app. Okay. If you got good bank apps.


Sherwood 'Woodie' Neiss: I think I'm on it every day.


Craig Asano: Okay. Fair enough. So you got to count all the money. So, In a word, what drives you every morning? What helps you get out of bed?


Sherwood 'Woodie' Neiss:  Honestly, do what you love type of thing. It helps that we wrote the law. It helps that we were there from the beginning. I find this whole industry fascinating. I'm very passionate about it and so it's the desire to see this industry scale grow and succeed.  That keeps me going.


Craig Asano: I love the fact that you stuck with it. You made the law, and here you are today.   Both of us in some capacity for a decade. More than a decade on. You know, it's incredible. Last rapid fire question. Can you recommend  a hot book, a favourite movie? Something for for our listeners. They might want to check it out.


Sherwood 'Woodie' Neiss: I mean, everyone should read Crowdfund Investing for dummies.


Craig Asano: Did they update it? I mean, you wrote that a decade ago.


Sherwood 'Woodie' Neiss: I know, I know.  You know what? They didn't update it only because when they told us they wanted they wanted us to write it in 2013.  We said, well, the industry hasn't gone live yet, so we're going to be writing a book for which there is no industry yet. Maybe we should wait until the industry goes live. And our publisher said, no, the way we work is we get the book out now. And so the book came out and people weren't buying it because the industry hadn't launched. And so when the industry launched, we're like, we need to update it with the new rules and everything like, but nobody bought the book and I was just like, oh God.


Craig Asano: It's time to hit the Publisher again.


Sherwood 'Woodie' Neiss: And so if anybody wants to write the second version of the dummies guide with us, please let me know.


Craig Asano: Well, on behalf of our listeners before we let you go, you got to tell everyone how to get in touch with you, Woodie. If they've got questions or they're interested in getting involved, investing in the fund. How do they get in touch?


Sherwood 'Woodie' Neiss:  So for the venture fund is where you can learn about that. For Crowdfund Capital Advisors, it's And if you want any of these reports or any of the data associated with it, go to  and on all those websites you can find information about ordering reaching out to us or getting in touch.


Craig Asano: Fantastic. Yeah. I'll be sure to include these in the show notes. I want to thank you on behalf of all our listeners here at Fintech Fridays for your time and your insights, Woodie, as usual. kKeep killing it out there. It's amazing to follow and support where we can. So, you're obviously welcome back anytime. Thanks a lot for being, an advisor at NCFA for many, many years, and I'm sure for many more years to come. So, with that, I think that's a wrap for this episode. so thanks again for coming.


Sherwood 'Woodie' Neiss: Thanks, Craig. Thanks, everyone.


Craig Asano: No, absolutely. So, before we close, I just want to say, if you're new to Fintech Fridays, please check out any of the past incredible episodes. They're all on the website. I think you'll be surprised with what you find. We're always bringing on, fintech founders or investors talking about a topic of the day that is going to help you grow and deeply understand a particular sector or maybe your business. So thanks for listening. We'll tune in next Friday for another episode of Fintech Fridays. Thanks a lot, Woodie. Have a good day. Thank you.


Outro : you've been listening to Fintech Fridays brought to you by NCFA and partners. Tune in weekly for the latest fintech Friday podcast by subscribing to this channel. The National crowdfunding and Fintech Association of Canada is a non-profit actively engaged with social and investment fintech sectors around the globe and provide education research industry stewardship services and networking opportunities to thousands of members and subscribers. For more information please visit


End of Podcast

Subscribe and Listen to more Fintech Fridays podcasts here

Join NCFA's weekly Podcast series 'FINTECH FRIDAYS' where we sit down with the incredible people in the Fintech community and talk about leading fintech products innovations developments and challenges!

Interested in getting involved as a partner or participant?

NCFA Jan 2018 resize - Fintech Fridays EP62:  The Future of Investment Crowdfunding: Innovations, Data, and OpportunitiesThe 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:

Latest news - Fintech Fridays EP62:  The Future of Investment Crowdfunding: Innovations, Data, and OpportunitiesFF Logo 400 v3 - Fintech Fridays EP62:  The Future of Investment Crowdfunding: Innovations, Data, and Opportunitiescommunity social impact - Fintech Fridays EP62:  The Future of Investment Crowdfunding: Innovations, Data, and Opportunities

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - Fintech Fridays EP62:  The Future of Investment Crowdfunding: Innovations, Data, and Opportunities


SEC Enforcement Director Grewal On Crypto Regulation

Speech | April 4, 2024

SEC Gurbir S. Grewal Director Enforcement - SEC Enforcement Director Grewal On Crypto Regulation

Image: SEC, Gurbir S. Grewal, Director, Division of Enforcement

Summary of SEC Speaks 2024 Remarks by Gurbir S. Grewal, Director, Division of Enforcement

During the SEC Speaks 2024 event, Gurbir S. Grewal, the Director of the Securities and Exchange Commission's Division of Enforcement, emphasized the dedication to protecting investors and ensuring the integrity of the securities market. He highlighted the SEC's consistent application of the Howey test to determine whether crypto assets are considered securities, stressing that this standard applies equally to all market participants. Despite facing significant challenges, including skepticism over the SEC's authority and the integrity of its enforcement efforts, Grewal underscored the agency's unwavering commitment to investor protection.

Spotlighted Issues with Crypto

The speech by Gurbir S. Grewal at SEC Speaks 2024 identified several critical issues and problems with the cryptocurrency market. The top five issues are highlighted below:

1.  The SEC has encountered substantial non-compliance and avoidance tactics within the cryptocurrency market. Market participants have engaged in various creative attempts to evade SEC jurisdiction, including claiming that crypto products were "currencies" and therefore beyond the SEC's remit or that the term "investment contract" was unconstitutionally vague.

See:  U.S. Court Orders Binance CZ to Surrender Canadian Passport

2.  Misleading Claims and Lack of Transparency.  There have been instances where crypto entities made misleading claims, such as promising financial freedom and "risk-free" investments, without adequate transparency or honesty about the risks and the use of invested funds.

3.  Predatory Inclusion Tactics.  Certain crypto entities have specifically targeted Black, brown, and other marginalized communities with narratives that crypto will increase financial inclusion, uplift the unbanked or underbanked, and help build wealth, despite these claims lacking supportive evidence and potentially leading to disproportionate harm.  For example, the SEC charged 17 individuals for their role in an alleged crypto Ponzi scheme that raised $300 million from more than 40,000 investors, highlighting the agency's efforts to combat fraudulent activities targeting vulnerable communities.

4.  The speech referenced cases where the SEC charged individuals involved in crypto Ponzi schemes that defrauded investors of large sums of money, demonstrating the presence of fraud and deceptive practices within the crypto space.

5.  The SEC has faced attacks on its integrity from market participants who question the agency's authority, motivations, and the legality of its enforcement actions. These challenges undermine efforts to establish a regulated and transparent market for cryptocurrencies.

While none of the issues mentioned above are new, they underscore the complexities and challenges the SEC faces in regulating the crypto sector in the U.S.

Select Quotes

On the Application of Securities Laws to Crypto

"In the decade since we brought our first crypto enforcement actions, our approach has been consistent, principled, and tethered to the federal securities laws and legal precedent."

See:  Sam Bankman-Fried Sentenced to 25 Years for Massive Fraud

Grewal defends the SEC's methodical and principled approach to regulating the crypto market, indicating that the SEC's enforcement actions are deeply rooted in established legal frameworks, not arbitrary decisions.

Addressing Challenges and Criticism

"A decade’s worth of verbal gymnastics that are just a backhanded way of saying, 'we want a different set of rules than those that apply to everyone else.'"

This statement highlights the resistance and creative arguments the SEC faces from certain market participants seeking exemptions from standard regulatory practices. It reflects the ongoing tension between regulatory bodies and parts of the crypto industry including its own SEC Commissioners.

On Investor Protection

"But I am incredibly proud of the perseverance of the staff, who push forward for one reason alone: because investor protection demands it."

Grewal expresses pride in the SEC staff's dedication to their mission, emphasizing that their efforts are driven by a commitment to safeguard investors, particularly in the challenging and rapidly evolving crypto space.

The Importance of Integrity and Trust

"Our ability to do all of this work depends on trust and credibility."

See:  Coinbase Gains Restricted Dealer License in Canada

This underscores the critical role that trust and credibility play in the SEC's effectiveness. Grewal makes it clear that maintaining the public’s confidence is paramount, ensuring that enforcement actions are both fair and firmly grounded in law.  A survey by the Pew Research Center found that nearly a third of Americans who had ever invested in, traded, or used crypto, no longer held any, and three-quarters of Americans familiar with crypto do not believe it is reliable and safe.


Grewal's defense of the SEC's crypto regulation underscores a commitment to investor safety and market integrity. It's evident that regulatory ambiguity remains a challenge, impacting the industry and its key stakeholders. Clarifying these regulations is essential for fostering a healthy, transparent crypto environment that benefits all participants.

NCFA Jan 2018 resize - SEC Enforcement Director Grewal On Crypto RegulationThe 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:

Latest news - SEC Enforcement Director Grewal On Crypto RegulationFF Logo 400 v3 - SEC Enforcement Director Grewal On Crypto Regulationcommunity social impact - SEC Enforcement Director Grewal On Crypto Regulation

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - SEC Enforcement Director Grewal On Crypto Regulation


AI’s Impact on Competition: Bureau Calls for Insights

Consultation | March 20, 2024

Competition Bureau AI and Competition Discussion Paper 2024 - AI's Impact on Competition: Bureau Calls for Insights

Help the Competition Bureau Shape the Future of AI and Competition in Canada

The Competition Bureau of Canada has launched a discussion paper and consultation on the topic of 'Artificial Intelligence (AI) and Competition' and its implications for competition within the Canadian market, from the foundational aspects of AI to its impact on market structures and practices. There are 3 sections to the consultation with some specific questions to respond to.

Download the 27 page PDF 2024 Discussion paper on 'AI and Competition'

Part 1:  Introduction to Artificial Intelligence

This section contains AI's definitions and aims to establish a common understanding of AI from diverse perspectives including academia, industry, and governance.  By identifying emerging technologies and those of particular significance to Canada, stakeholders can help shape a regulatory framework that is both forward-looking and tailored to the unique needs of the Canadian AI sector.


  1. Are there any additional technologies, not included in the above list, that the Bureau should consider to advance its understanding of Artificial Intelligence?
  2. Are any of the identified technologies particularly significant to the AI sector in Canada?

Part 2:  Markets for Artificial Intelligence

This section covers the markets involved in the production of AI products and services, including AI infrastructure, development, and deployment. It highlights the importance of vertical relationships and access to resources like data and computational power, which are essential for innovation and competition in AI markets.

See:   DoF Consultation: Financial Competition in Canada

Understanding the competitive dynamics and the role of vertical relationships in AI markets as potential barriers to entry or areas where competition may be stifled. These insights can guide the Bureau in promoting a competitive environment that encourages innovation and ensures fair access to essential resources.


  1. What are the key factors that influence the competitive dynamics in the markets for AI infrastructure, AI development, and AI deployment?
  2. How do vertical relationships affect competition in AI markets?

Part 3:  AI and Competition

Section 3 examines how AI may affect competition in the context of Canadian law. It explores AI's impact on mergers, monopolistic practices, cartels, and deceptive marketing practices.  It also discusses the Bureau's role in working with policymakers to promote competition in AI markets.

See:  Canada’s Lagging AI Adoption Needs to Accelerate to Compete

By exploring how AI influences anti-competitive practices and identifying ways the Bureau can support a competitive AI market, stakeholders can contribute to developing policies that safeguard competition while fostering innovation.


  1. How might AI influence the Bureau's approach to identifying and evaluating anti-competitive practices?
  2. What role can the Bureau play in supporting the development of a competitive AI market in Canada?

Call To Action

This consultation represents a unique opportunity for stakeholders from all sectors to contribute to a critical discussion on the future of AI and competition in Canada. Your insights, experiences, and perspectives are invaluable in shaping policies that balance innovation with fair competition.

See:  Canada Aims to Regulate AI in Search & Social Media

By providing insights into these areas, stakeholders can help ensure that Canada's approach to AI and competition is both informed and effective, promoting a market environment that benefits consumers, businesses, and the economy as a whole.

NCFA Jan 2018 resize - AI's Impact on Competition: Bureau Calls for InsightsThe 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:

Latest news - AI's Impact on Competition: Bureau Calls for InsightsFF Logo 400 v3 - AI's Impact on Competition: Bureau Calls for Insightscommunity social impact - AI's Impact on Competition: Bureau Calls for Insights

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - AI's Impact on Competition: Bureau Calls for Insights


When Tech and Humanity Clash: AI Dilemma at SXSW

Culture | March 18, 2024

Unsplash Cash Macanaya to be human or not - When Tech and Humanity Clash:  AI Dilemma at SXSW

Image: Unsplash/Cash Macanaya

To Be Human or Not in the Age of AI

In the heart of Austin, Texas, the annual South by Southwest (SXSW) festival, known for its celebration of innovation, creativity, and the future, became an unexpected battleground for one of the most pressing debates of our time...the role of artificial intelligence (AI) in society and whether it enhances or undermines what it means to be human. This year's festival witnessed a tension that encapsulates a broader societal debate.

The Core of the Backlash

As featured by Variety, at SXSW, a series of AI promotional videos were met with a chorus of boos. These weren't just any dissenters; they were creatives, tech enthusiasts, and professionals who, by any other measure, should be the first to champion technological advancements.

See:  Sustainable Business and The Regenerative Future

Their reaction signals a deeper, more existential concern that transcends the usual anxieties over job displacement and economic inequality.

1. There's a growing apprehension about the ethical ramifications of unchecked AI development

Critics argue that without a framework that prioritizes ethical considerations, AI could exacerbate societal inequities and lead to a future where technology, not humanity, dictates our values and norms.

2.  Human touch in creativity

A large part of the resistance stems from fears over AI's encroachment into creative domains—a field historically revered as the pinnacle of human expression.

See:  Can AI Truly Replace Human Financial Advisors?

The prospect of AI-scripted films or computer-generated art challenges our conception of creativity as an inherently human trait, sparking a debate over the authenticity and value of AI-generated content.

3.  Technological determinism vs. human agency

The narrative of inevitability surrounding AI's integration into every facet of life has further fueled the backlash.

This deterministic viewpoint diminishes human agency, suggesting a future where technological advancement is an end in itself, rather than a means to enhance human well-being.

To Be Human or Not to Be Human

The reaction at SXSW is a microcosm of a larger cultural and ethical debate: what does it mean to be human in the age of AI? We are standing at the crossroads of an unprecedented technological revolution, and the choices we make today will shape the future of humanity.

See:   Strategies for Addressing Canada’s Tech Talent Gap: Leveraging Micro-Credentials, Accessible Training Programs, and Diversity in Hiring

The discourse around AI must move beyond technical and economic considerations to address the fundamental human values at stake. To ensure that AI serves to augment rather than diminish our humanity, we must foster a more inclusive dialogue that prioritizes ethical considerations, human welfare, and the preservation of cultural and creative integrity.

It's a call to action for all stakeholders—developers, policymakers, and the public—to engage in a thoughtful, ethical, and human-centered approach to AI development. Only then can we harness the true potential of AI to enhance our human experience, rather than detract from it.

What kind of world do you want to live in?

NCFA Jan 2018 resize - When Tech and Humanity Clash:  AI Dilemma at SXSWThe 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:

Latest news - When Tech and Humanity Clash:  AI Dilemma at SXSWFF Logo 400 v3 - When Tech and Humanity Clash:  AI Dilemma at SXSWcommunity social impact - When Tech and Humanity Clash:  AI Dilemma at SXSW

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - When Tech and Humanity Clash:  AI Dilemma at SXSW


UK High Court Concludes Craig Wright is Not Satoshi Nakamoto

News | March 15, 2024

Freepik starline bitcoin - UK High Court Concludes Craig Wright is Not Satoshi Nakamoto

Image: Freepik/starline

The Verdict on Satoshi: Craig Wright's Claims Dismissed by High Court

A High Court judge in the UK has concluded that Australian computer scientist Craig Wright is not Satoshi Nakamoto, the creator of Bitcoin. This verdict comes after a contentious two-month trial in London, where Wright faced allegations of perjury and forgery in his attempts to establish himself as the digital currency's inventor. The case, brought against Wright by the Crypto Open Patent Alliance (COPA), sheds concluding light on the ongoing debate over the true identity of Satoshi Nakamoto and the origins of Bitcoin.

  • The High Court's decision was delivered swiftly by Mr. Justice Mellor, who, after considering the overwhelming evidence, ruled against Wright on all counts, including his claim to be the author of the Bitcoin white paper and the creator of the Bitcoin system.
  • COPA accused Wright of committing perjury and forging documents in an attempt to substantiate his claims. The trial revealed that some documents provided by Wright were allegedly backdated and contained inconsistencies, such as edits made using software versions that did not exist at the time the documents were supposedly created.
  • COPA's spokesperson hailed the verdict as a victory for developers, the open-source community, and truth. For over eight years, Wright's claims and his legal actions have loomed over the Bitcoin community, with this ruling potentially putting an end to his assertions and the associated legal battles.

See:  Bitcoin’s 10 Commandments: Insights from Satoshi’s Emails

  • Notably, Wright had previously won a defamation case related to his claims of being Nakamoto, but the damages awarded were minimal due to the judge's findings of false evidence presentation. This pattern of legal challenges underscores the contentious nature of Wright's claims within the crypto space.

Why It Matters

This High Court's ruling dispels years of speculation and reinforces the importance of authenticity within the crypto community, setting a precedent for future disputes over digital currency origins and intellectual property.

NCFA Jan 2018 resize - UK High Court Concludes Craig Wright is Not Satoshi NakamotoThe 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:

Latest news - UK High Court Concludes Craig Wright is Not Satoshi NakamotoFF Logo 400 v3 - UK High Court Concludes Craig Wright is Not Satoshi Nakamotocommunity social impact - UK High Court Concludes Craig Wright is Not Satoshi Nakamoto

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - UK High Court Concludes Craig Wright is Not Satoshi Nakamoto


The Global 50: Future Opportunities for Decision-Makers

Report | March 15, 2024

The Dubai Foundation 2024 The Global 50 - The Global 50: Future Opportunities for Decision-Makers

Image: The Dubai Foundation, The Global 50, 2024

A Vision for the Future:  The Global 50

The Dubai Future Foundation has released its third report titled "The Global 50" providing a comprehensive exploration of the opportunities and challenges that lie ahead, aiming to inspire decision-makers, innovators, and communities worldwide.

The report envisions a future that is diverse and ever-changing, where global trends impact individuals and communities in myriad ways. It acknowledges the unpredictability of the next half-century, suggesting that while our concepts of growth, prosperity, and well-being may evolve, the fundamental human needs and motivations will remain constant. This vision encompasses a wide array of domains, including energy, health, governance, ecology, and more, highlighting the potential for universal access to energy, advancements in medical screening, and the emergence of digital and immersive realities.

Learning from the Pandemic

The recent global pandemic has unveiled the critical importance of focusing on the future, demonstrating the remarkable capacity of human innovation to respond to crises.

See:  Rising AI Energy Use: A Call for Sustainable Innovation

Innovations such as the rapid development of vaccines and the adoption of new technologies for remote work and communication have shown that, despite unforeseen challenges, we are capable of creating solutions that not only address immediate problems but also pave the way for a better future.

Future Opportunities for Decision-Makers

The report outlines several strategies for decision-makers to harness the potential of these future opportunities:

1.  Inspiration and Investment

Utilize the opportunities as a source of inspiration to identify new avenues for investment and value creation.

2.  Foresight and Reflection

Employ these insights for foresight, considering what opportunities are worth exploring as perceptions of what matters most evolve.

See:  The Global Effort to Level the Playing Field with Tech Giants

3.  Deep Dives for Impact

Explore specific opportunities in depth to generate positive financial, environmental, and societal outcomes.

4.  Complexity and Competitiveness

Acknowledge the complexities and risks associated with these opportunities to maintain global competitiveness.

5.  Organizational and Community Impact

Assess the impact of these opportunities on organizations and communities.

6.  Tracking and Perception Tools

Develop tools to monitor people's experiences and perceptions of prosperity and well-being beyond economic indicators.

7.  Partnerships for the Future

Identify necessary partnerships and resources to address future uncertainties and opportunities.

See:  Women’s Critical Role, Impact, and Empowerment in AI

Innovation and Collaboration Towards a Sustainable Future

"The Global 50" report challenges us to think beyond the conventional, to envision a world where innovation and collaboration lead to a more prosperous, equitable, and sustainable future for all.  Let all draw inspiration from "The Global 50" to envision and work towards a future that reflects our highest aspirations for growth, prosperity, and well-being.

Download the 333 page PDF report (English) --> here

NCFA Jan 2018 resize - The Global 50: Future Opportunities for Decision-MakersThe 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:

Latest news - The Global 50: Future Opportunities for Decision-MakersFF Logo 400 v3 - The Global 50: Future Opportunities for Decision-Makerscommunity social impact - The Global 50: Future Opportunities for Decision-Makers

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - The Global 50: Future Opportunities for Decision-Makers