Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Fintech Opinions
Behind the Delays and Push to Modernize Canada’s Banking and Payment System
OpEd Analysis | Aug 23, 2023
Image: Unsplash/Parker Johnson
In a recent op-ed piece from The Globe and Mail, authors David Dodge and Bob Fay shed light on Canada's outdated banking and payments system.
Highlighting the inefficiencies and delays faced by consumers, they emphasize the urgent need for modernization. Drawing comparisons with other nations that have successfully implemented real-time payment systems, the article underscores the potential benefits for both consumers and businesses in Canada. Amidst the backdrop of high transaction fees and a rapidly evolving digital economy, the authors call for a comprehensive overhaul of the country's financial infrastructure.
Current System Limitations
- In Canada, daily transactions such as moving money between accounts or paying bills online can cause extensive delays due to the involvement of multiple parties and platforms.
- Transactions like paying for coffee with a debit or credit card seem quick, but they rely on outdated financial infrastructure. This results in credit-card processing fees that may be passed on to consumers.
Need for Modernization
See: How the Big Five Banks Control Canada’s Payment Systems
- Canada's delay in implementing a modern, national real-time payments system is costly for consumers.
- A modern system would allow immediate exchange, clearing, and settlement of payments. It would also be more secure, available 24/7, and have lower usage costs.
- Such a system would also allow for more information to be shared with the payment, which could drive competition and innovations in the Canadian economy.
Government Has Known for a Over a Decade
- A report from 2011 warned that Canada needed a modern digital payments system to engage in the digital economy of the 21st century. Despite this, Canada is still lagging behind.
- Payments Canada's Real-Time RAIL payments system faced significant delays, risking it being outdated by the time it's implemented.
- Other countries, like Brazil, India, and the US, have already implemented new real-time payments systems.
Canada's Delay is Attributed to a Lack of Political Will, Regulatory Challenges, and Incumbent Interests
- Canadians and small businesses face high fees, some of the highest in the world, every time they make a payment.
- Canada has the opportunity and talent to build a modern payments system. This requires a comprehensive vision, updated policies, and investments in cybersecurity and network resilience.
Takeways from the Article Comments
There is no shortage of comments on the piece. Summarized below are some key takeaways this far, which provides a more diverse range of perspectives:
- The Single Euro Payments Area (SEPA) is indeed a great example of how a unified payment system can facilitate business and reduce costs. It's a model that other regions could potentially adopt.
See: FinTech Executives Disappointed with Budget 2023’s Lack of Open Banking Update, Raising Doubts on Delivery Timeline
- The mention of COBOL applications highlights the challenge of modernizing legacy systems. These older legacy technologies can be a bottleneck for innovation and efficiency.
- The skepticism towards big banks "playing nice" is a concern shared by many. Financial institutions have a vested interest in maintaining their market share and may not be quick to adopt systems that could disrupt their revenue streams.
- The point about businesses benefiting more than consumers from reduced fees is valid. There's no guarantee that businesses will pass on the savings to consumers, as illustrated by the "bag and cup fee" example in Vancouver.
- The issue of hidden fees and lack of transparency is a significant consumer protection concern. It's something that regulatory bodies need to address.
- The delay in processing payments, especially during weekends and holidays, is another area that needs improvement. Real-time processing should be a standard feature of a modern payment system.
- The need for real-time compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations is crucial. Delays in such compliance checks can have serious consequences, as you mentioned with purchasing a house.
- Lastly, consumer awareness and advocacy can play a significant role in pushing for these changes. The more people voice their concerns and demand better services, the more likely institutions are to listen.
Read: Vass Bednar: Canada’s Glaring Banking Protections Gap and Implications for Consumers and Fintechs
The overarching theme is that while technological solutions exist to modernize payment systems and make them more efficient and consumer-friendly, there are various hurdles—be it legacy systems, vested interests, or regulatory challenges—that need to be overcome.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Ontario’s OSC Innovation Office Needs Your Voice! (Deadline Aug 28, 2023)
Capital Markets Innovation | Aug 21, 2023
Image: OSC Innovation Office
As we set our sights on contributing an impressive $29 trillion to the global economy by 2035, the collaboration, voice and feedback of startups and SMEs is paramount. The OSC is looking to understand what's working and what can be improved in Ontario's capital raising environment.
If you're an entrepreneur at the helm of a start-up or SME in Ontario, or an investor backing these ventures, your perspective is crucial. Your experiences and insights can significantly influence policies and processes, ensuring a conducive environment for businesses to excel.
From the OSC Innovation Office:
At the OSC Innovation Office, we’re committed to working together with businesses, investors, academic institutions and other partners to create the right conditions for innovation to flourish. We believe that innovative businesses that call Ontario home, or those looking to establish or expand their operations here, should have access to the money they need to build successful businesses in Ontario. As part of our commitment, we’re actively studying Ontario’s capital raising environment. We want to learn what's working and what could be improved.
Join Us in This Endeavour
Your experiences, both the challenges and triumphs, in capital raising can provide us with invaluable insights. By sharing your journey, you can assist us in devising strategies for a more prosperous future for all Ontario businesses.
See: March 1, 2019: NCFA Submission to the Ontario Securities Commission on Regulatory Burden
We invite you to collaborate with us in this pivotal initiative. Please participate in our confidential surveys by deadline August 28 and make your perspective count.
🔗 Entrepreneurs from start-ups & SMEs can access the survey here.
🔗 Investors in start-ups & SMEs can begin their survey here.
Together, let's fortify Ontario's position as the leading hub of innovation, and ensure every promising idea achieves its potential.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
The Transformative Impact of Instant Payments on Financial Crime Mitigation
Payments | Jul 30 2023
Image: Unsplash/Blake Wisz
The advent of instant payments is revolutionizing the financial landscape, acting as a catalyst for speed and innovation in financial crime mitigation.
This article explores the insights shared by Adam Gable, Product Director of Financial Crime, Treasury, and Risk at Temenos, and Hani Hagras, Chief Science Officer at Temenos, during the Temenos Community Forum in Vienna.
Instant payments demand real-time processing
- This necessitates swift and precise security checks to prevent financial crime. Any inefficiency in this process can lead to interruptions in customer experience, loss of customer goodwill, and potential damage to brand reputation. For instance, a security check that ends up in a queue for manual review or inaccurate checks that lead to customer fraud can have serious repercussions.
- Impact for banks:
- Banks must ensure robust security protocols are in place.
- Gable emphasizes that as checks are conducted, some will invariably require investigation. This time-consuming process can negatively impact customer experience.
- There is a cost factor for banks transitioning to instant payments. They need to proactively consider the systems and processes required for this shift and others payment trends driving the future.
See: Future of Neobanking: Exploring the Landscape of AI-Powered Digital Banks
- Artificial Intelligence (AI) plays a pivotal role in mitigating crime in instant transactions.
- Hagras explains that AI can leverage automation to provide a seamless user experience, coupled with a solid audit trail, making it easier for banks to scale up.
- AI can combat financial crime through sanctions screening and anti-money laundering processes. It can automatically detect fraud while allowing false positives to be processed without interrupting the customer experience.
- AI is responsible for generating models that comply with various regulatory requirements, enabling banks and financial institutions to use AI with trust.
- The key is to use explainable AI, where generated models are easily understood, analyzed, and audited by business users and authorities.
The battle against fraud is ongoing
- Opaque [AI] box models, which do not sufficiently explain the decision-making processes, are not accepted by many regulators.
- Hagras concludes that explainable AI processes are a key focus for Temenos, and meeting current and future AI 'explainability' regulations will be essential.
See: FedNow Real-Time Payment Service Launches: A Game Changer in the U.S. Financial System
Conclusion
In conclusion, the introduction of instant payments is accelerating innovation in financial crime mitigation. With the right systems, processes, and the use of AI, banks can effectively combat financial crime, ensuring a secure and seamless customer experience.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
AI and the Metaverse: The Imperative for Rules and Regulations
Brookings Advocacy | Jul 19, 2023
Image: Freepik/tohamina, VR technology generative AI
This AI-driven world is not just a game but a space where personally identifiable avatars interact under the control of advanced AI systems. As we immerse ourselves more into this new online world, it is crucial that we collectively decide where we want to be going.
The metaverse is a creature of AI, with much of what happens in it determined by AI algorithms. While the term may have disappeared from public consciousness, it should not disappear from public concern. The company formerly known as Facebook, now Meta Platforms, continues its multimillion-dollar advertising campaign to shape a good image for the metaverse.
See: Epic’s CEO Tim Sweeney Illuminates How the Metaverse Will Actually Function
The metaverse brings the promise of new tools for education, entertainment, medicine, and commerce. However, it also imports the problems associated with the current digital platforms, while creating a host of new issues. Since we have yet to successfully deal with the problems created by the current digital platforms, it is even more pressing to rectify the new genre of potential abuses that are arising.
The online challenges with which we wrestle today, such as privacy, competition, and misinformation, will be supercharged by the intrusive, immersive, individually identifiable nature of the metaverse. On top of this, the metaverse expands the problems inherent in unsupervised online communities such as harassment, bias, manipulation, and threats to personal safety and the safety of children.
Policy Makers Need to Step Up
The experience with social media is a warning about what happens when public interest expectations are not part of digital innovation, when “build it and be damned” is the rule. Policymakers need to come to grips with—and preferably get ahead of—the new technology with focus equal to those who are creating the new challenges. Today’s online activity began as an observational experience that gradually expanded through social media and online games to become more participatory. The metaverse accelerates that expansion utilizing virtual reality (VR), augmented reality (AR), and artificial intelligence to create an immersive 3-D first person experience that puts the user “inside” a new pseudo-world.
We are moving from social media to social virtual reality without a plan for mitigating its ills.
Thus far in the internet age, the dominant companies have privatized governance and made their own behavioral rules free of much effective governmental oversight. Too often, public policymakers’ lack of technological understanding has been exploited to promote a fear that regulation will break the magic of the tech innovators. Now is the moment to decide about the kind of digital world in which we want to live.
See: What CEOs Should Know About the Metaverse
The metaverse will—like the digital platforms that preceded it—deliver wonderous new capabilities. The development of such capabilities must be encouraged and expedited but not at the cost of trampling the rights of individuals and the public interest. The coming metaverse gives us the opportunity to both rectify the abuses of the early internet era while getting in front of the changes to come.
Where to from here?
In conclusion, the metaverse is a world of expanded surveillance by those offering the service. That this new surveillance is being developed by the same companies that have already trampled personal privacy should be of concern. Now, while the metaverse is relatively rudimentary, is the time to get in front of the new issues it raises and, in the process, tackle the platform problems that have long bedeviled us. We are being told, however, to chill, that the time necessary for the development of the metaverse will give us the opportunity to resolve the problems it creates. History, however, teaches us the opposite is true. The establishment of digital norms is a matter of getting there first.
Once new digital patterns are established, they are difficult to correct.
Read the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Digital Identity in the Age of Web3: Empowering Individuals, Transforming Organizations
FFCON23 Discussion | Jul 19, 2023
Image: Unsplash/Vadim Bogulov
In the rapidly evolving digital landscape, the concepts of Web 3, blockchain technology, and digital identity are becoming increasingly significant.
These emerging technologies hold the potential to revolutionize the way we handle identity verification, offering enhanced privacy, security, and user control over personal data. However, the journey towards this future is not without its challenges. From balancing user experience with robust security measures to navigating complex regulatory frameworks, there's a lot to consider.
In this article, we delve into a recent panel at FFCON23 discussion titled "The Future of Identity Verification in the Age of Web 3" where industry experts explore the opportunities and hurdles in this space. We'll unpack the potential of decentralized digital identities, the role of blockchain in identity verification, and the implications of these technologies for both individuals and organizations.
Unlocking the Potential of Decentralized Digital Identities
One of the key highlights of the panel discussion was the promise of decentralized digital identities. With Web3 and blockchain technology, individuals can have greater control over their personal data, ensuring privacy and security while interacting in the digital realm.
See: Digital Identity Should Be A Big Business For Banks
The concept of portable and reusable identities gained traction, envisioning a future where individuals no longer need to carry physical documents like passports or driver's licenses. Instead, a secure digital identity stored on the blockchain could serve as a universal proof of identity, revolutionizing traditional verification processes.
Balancing User Experience and Security
While the potential of decentralized digital identities is enticing, the panelists also emphasized the need to strike a balance between user experience and security. Designing user-friendly interfaces and seamless authentication processes is essential for widespread adoption. Simultaneously, robust security measures must be in place to prevent identity theft, fraud, and unauthorized access. The challenge lies in finding innovative solutions that ensure a frictionless user experience without compromising security.
Navigating Regulatory Frameworks
The implementation of decentralized digital identities necessitates navigating complex regulatory frameworks. Panelists discussed the importance of building trust between individuals, organizations, and governments while establishing the right frameworks for digital identity verification. Regulatory compliance plays a crucial role in protecting personal data rights, mitigating risks, and fostering a safe and transparent digital environment.
Exploring the Role of Blockchain
Blockchain technology emerged as a catalyst for enabling decentralized digital identities. It provides a secure and immutable ledger that can verify and validate identity information without relying on centralized authorities. Blockchain's decentralized nature ensures transparency and reduces the risks associated with storing sensitive personal data in a single point of failure. However, the adoption of blockchain technology in identity verification requires collaboration among stakeholders, including governments, technology providers, and industry players.
Implications and Future Outlook
The panel discussion underscored the potential of Web3, blockchain, and decentralized digital identities to reshape the future of identity verification. The seamless integration of these technologies has the potential to enhance privacy, security, and user control over personal data. It opens up new avenues for innovation, empowering individuals to monetize their data while maintaining data ownership and control. However, challenges remain, including the need for widespread adoption, regulatory harmonization, and industry collaboration.
See: Digital Identity Protection is Critical for Metaverse Innovation
As we venture into the age of Web3 and embrace the possibilities of decentralized digital identities, the future of digital identity verification looks promising yet complex. While Web3 and blockchain offer exciting opportunities, their successful implementation requires addressing challenges related to user experience, security, and regulatory compliance. By harnessing the potential of these technologies and fostering collaboration among stakeholders, we can build a future where digital identity verification is seamless, secure, and empowers individuals to control their digital presence.
In this Video
This video is for anyone interested in digital identity, blockchain technology, and the future of privacy and security. It's particularly relevant for professionals in the tech industry, policymakers, and anyone interested in the intersection of technology and privacy. 🎯
- Moderator: Anna Niemira: Head of Partnerships Strategy and Innovation at Lambert & Co.
- Speaker: Erik Zvaigzne: VP Product Innovation at Convergence.Tech
- Speaker: John Gruetzner: COO at Syngrafii
How can Web 3 and blockchain technology revolutionize identity verification? The video discusses the potential of Web 3 and blockchain technology in creating a new layer of digital identity that enhances privacy and security. It explores how these technologies can be used to create portable and reusable identities, reducing the risk of identity theft and fraud.
Read: Blockchain Use Cases in Digital Identity
What are the challenges and opportunities in implementing decentralized digital identities? The panelists discuss the challenges in implementing decentralized digital identities, including technological, regulatory, and user experience considerations. They also discuss the opportunities that these technologies present, such as the potential for individuals to monetize their personal data.
How can governments and organizations prepare for the changes brought about by these technologies? The video explores how governments and organizations can prepare for the adoption of these technologies. It discusses the importance of building trust frameworks, governing who can participate in the system, and determining what constitutes an acceptable proof token. It also touches on the need for regulations and policies that protect personal data rights.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Millennial and Gen Z Workforce Demand Purpose-Driven Work: Deloitte Survey Insights
Fortune | Elizabeth Faber | Jul 6, 2023
Image: Unsplash/Eliott Reyna
Ethical alignment and purpose-driven work significantly influences career decisions of Gen Z and Millennials
- Deloitte's latest Global Gen Z and Millennial Survey reveals that nearly 40% of respondents have rejected work assignments due to ethical concerns, and over a third have declined offers from employers they perceive as lacking in areas such as environmental responsibility, diversity, equity, and inclusion (DEI), or mental health initiatives.
- This underscores the importance of ethical alignment between employees and their organizations, a factor that significantly influences career decisions among younger generations.
- Purpose-Driven Work is a Must:
- The survey indicates that over 80% of Deloitte's global workforce, approximately 330,000 employees, belong to the Millennial and Gen Z demographics.
- These generations are not satisfied with merely working for purpose-driven organizations; they want to actively participate in driving societal change through their work.
- However, only half of the respondents feel empowered to drive change within their organizations, highlighting a gap that employers need to address.
Emerging Investors: Gen Z Canadians Take the Lead in Global Investment Trends
Fintech Fridays EP55: Global Hiring Trends: How Gen Z Talent Thrives
- Climate Action:
- Over half of the respondents research a company's environmental impact and policies before accepting a role, and a quarter plan to change jobs or sectors due to climate concerns.
- Only 15% of Gen Z and Millennial respondents feel they can influence their organization's sustainability efforts.
Organizations must prioritize purpose and impact, promote ethical alignment, and empower employees to drive change. This not only secures long-term commitment from these generations but also creates financial and social value for the organization.
View more --> here
Download the 38 page PDF Survey report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
FCAC Survey Results: Understanding the Canadian Consumer’s Perspective on Open Banking
FCAC | Jun 5, 2023
Image: FCAC commissioned survey chart
FCAC contracted the services of Advanis to conduct POR, between May 16 and June 28, 2022, into Canadians' awareness and understanding of open banking and financial technology or fintech services.
The goal of this research was to help FCAC better understand the knowledge, perceptions, habits, concerns, and consumer protection expectations of Canadian consumers with respect to open banking and related fintech services.
- Low Awareness and Understanding of Open Banking:
- The research reveals that only 9% of Canadians have heard of open banking, with a mere 7% of these respondents being "very" familiar with it. This indicates a significant knowledge gap among consumers, highlighting the need for comprehensive educational initiatives to increase awareness and understanding of open banking.
- Consumer Protection is Crucial:
- The study indicates that the consumer protection measures incorporated into an open banking framework will significantly impact participation. The most popular protection, selected by 70% of respondents, was "full protection from any losses" if something were to go wrong.
- Other valued protections included the ability to revoke consent at any time and requirements for reporting data breaches.
See: Visa Survey: Insights into Consumer Preferences for Open Banking
- Limited Interest in Participation:
- Despite the potential benefits of open banking, consumer interest in using open banking is low. After hearing a definition of open banking, over half (52%) of Canadians said they would not participate in an open banking system. approximately one-third (29%) said "maybe" while only 15% said they would participate.
- Canadians also value strong governance and regulatory oversight:
- 53% of respondents selected "making sure someone oversees the open banking system to keep consumers protected," and
- 54% wanted to be sure that banks can't pressure them to share their financial data.
- If something were to go wrong, 62% want a clear and easy process to follow to make things right.
- Many Canadians need to know more about open banking before they decide whether to use it.
More information --> here
Download the 22 page PDF survey results report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
