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
FCA Speech: Adapting Culture to Meet Changing Societal Norms and Consumer Expectations
FCA | June 26, 2023
Speech by Emily Shepperd, Chief Operating Officer and Executive Director of Authorisations, delivered online at the Westminster Business Forum
- In Emily Shepperd's speech she emphasizes the importance of evolving organizational culture to address generational differences and societal norms.
- She stresses the importance of evolving organizational culture to meet changing societal norms and consumer expectations. This includes fostering an inclusive culture that values diversity of thought and experience, ensuring that regulations align with these changing demands, and moving away from outdated practices that are no longer socially acceptable.
- She believes that these changes can help to create more resilient, sustainable, and customer-focused organizations.
See: Culture: Why regulators should care about diversity and inclusion
- Select quotes and insights:
- Importance of listening, especially for leaders, to create an environment where people feel comfortable to speak up, share their experiences, and provide meaningful challenge. This fosters diversity of thought and helps to drive better outcomes for firms and their customers.
- Companies should ask tough questions when assessing the fitness and propriety of staff in financial services. The FCA views culture as crucial for confidence and can dictate bottom lines.
- As Warren Buffett said: 'It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.'
- On Culture:
- Culture remains central to our supervisory model and underpins conduct and therefore business performance and confidence.
- Culture is not just the slogan on your website. It is the very essence of what your organisation stands for, embodied by how it conducts itself.
- Increasingly, investors are demanding that they put their money towards 'doing some good’ for people and our planet.
- On recruitment: A recent study by Workplace Intelligence found that 74 % of millennial and Gen Z employees would quit a job in a year if there were no opportunities for upskilling and development.
Read the full speech --> 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
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The Shift to Alternative Assets: Overcoming Barriers and Exploring Opportunities
CAIS | Release | Jun 21, 2023
The recent market volatility, interest rate hikes, and a diminishing confidence in public markets have led to an increased demand for alternative investments.
Alternative assets are projected to constitute up to 24% of the global investable market by 2025, a significant increase from 12% in 2018.
- In a survey conducted by CAIS at the 2022 Morningstar Conference:
- 80.9% of financial professionals agreed that all retail investors should have access to such investment avenues. Traditionally favored assets are experiencing muted expectations and alternatives might provide a diversified method for investors looking to hedge against market instability.
- The survey included over 300 registered investment advisors and other industry experts.
- Nearly three-quarters (74.9%) of respondents believe that the SEC's definition of an accredited investor needs updating.
- Respondents anticipate private equity (49.8%), real estate (38.9%), and private credit (33%) to be the top-performing alternative asset classes in 2022.
- Rethinking the Traditional Investment Mix:
- Public market assets have been underperforming in recent years, with the traditional 60/40 portfolio (60% stocks and 40% bonds) delivering some of its lowest returns in the past two decades.
- About 33.6% of survey participants believe this investment strategy is no longer effective.
- Interestingly, 84% of investment or financial advisors are now recommending alternative investments to their clients who meet accredited investor requirements.
See: Celebrating 7 Years of Regulation Crowdfunding: 4100 Startups Now Valued at $60 Billion
- Obstacles to Accessing Alternative Investments:
- A significant 68.98% of respondents cited lack of education around alternatives as a major hurdle.
- Other obstacles include stringent qualification requirements, high administration and paperwork (37.6%), and concerns around due diligence and compliance processes (34.3%).
- Implications for the finance industry:
- This shifting landscape implies a need for financial advisors to stay updated and expand their knowledge of alternative investments. As more alternative products become available, advisors will need to ensure they're well-versed in these complex products to confidently recommend them to their clients. Moreover, calls for updating the SEC's definition of an accredited investor could potentially open up alternative investments to a broader demographic.
View the original release --> 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
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Aquanow: Stablecoins and Gauging Market Sentiment
Aquanow | Sebastien Davies | Jun 22, 2023
Assessing Market Sentiment with Stablecoins, Aquanow
Centralized, asset-backed stablecoins like USDT are gaining significant market share due to their increased transparency and minimal dependence on traditional banking systems, with platforms like Curve Finance's 3Pool serving as critical tools for gauging market sentiment in the digital economy.
- In the digital assets landscape, the spotlight is on stablecoins, particularly those of the centralized and asset-backed type.
- These intriguing programmable money forms, characterized by their fixed prices, are not about price speculation but rather a story of financial innovation and user adoption.
- Their inherent price stability, however, does not exclude occasional bouts of volatility, pivotal moments that underscore their vital role in the foundations of digital finance.
- Notably, the 2023 U.S. banking crisis triggered a seismic shift in market sentiment when USDC depegged, propelling a reversal in market share trends favoring USDT over other stablecoins.
See: OpEd: Draft U.S. Bill on Stablecoins Highlight Differences with CBDCs
- USDT:
- With improved transparency regarding its reserves and a modest reliance on the U.S. banking system, USDT has experienced a dramatic increase in its market capitalization.
- Nonetheless, the market's sensitivity to changes in stablecoin pegs was evident when USDT decoupled from its peg, reinforcing the need for market participants to stay vigilant in the dynamic world of digital finance.
- 3Pool:
- Automated market maker (AMM) platforms like Curve Finance's 3Pool offer valuable insights into market sentiment in the digital economy. The sudden increase in Tether's share of the 3Pool, for instance, indicated a surge in USDT selling volumes, underscoring the importance of these platforms as barometers of market sentiment.
Continue to 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
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Visa Survey: Insights into Consumer Preferences for Open Banking
Visa Navigate | Jun 13, 2023
Visa’s study highlights the pivotal role of value proposition and consent management in consumer adoption of open banking services, shaped by preferences and distinct consumer personas.
- A study by Visa underlines the importance of two pillars, value proposition and consent management, in fostering a strong relationship between financial service providers and consumers within the open banking landscape.
- As providers prioritize these areas, open banking-driven services are likely to be more accepted, leading to increased consumer comfort and trust, lower costs, higher revenues, and mitigated risks.
- The research identified three consumer personas – "Cautious and Careful," "Steady Forward," and "Full Speed Ahead," aiding businesses to develop personalized solutions.
Select Consumer Preferences - Read the full report
- Consumer Comfort is Key: Comfort levels improve when consumers receive open banking-powered services in exchange for authorized access. This promotes trust and increases customer interactions, propelling the adoption of such services.
See: Will Open Banking Launch in Canada This Year?
- Desired Benefits:
- Consumers are more willing to share their data with third parties when certain benefits are offered.
- These include sending and receiving money digitally (65%)
- Viewing finances in a single app (50%), and
- Personalized products and services (46%).
- Expanded access to credit & financing is also favored but at a lower rate (31%).
- Consumers are more willing to share their data with third parties when certain benefits are offered.
- Communications:
- Consumers prefer different methods to be informed about how their data is shared and used by third parties.
- The majority prefer within the app (75%)
- Followed by email (53%)
- Text alerts (26%)
- Bank portals (20%)
- Consumers prefer different methods to be informed about how their data is shared and used by third parties.
See: “Open banking” May Cause Deposit Outflows, Warns U.S. Regulator
- Three Consumer Personas:
- Visa's survey reveals three distinct consumer personas - Cautious and Careful, Steady Forward, and Full Speed Ahead.
- Understanding these personas could help financial institutions and fintechs tailor their approach to cater to varying customer demands for open banking services.
Download the 21 page PDF 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
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Considerations for Building the Next Fintech x AI Opportunity
Jun 8, 2023
Building the next fintech unicorn requires a combination of the right AI technologies, tapping into the right sector, having a solid data strategy, and putting together a team that can execute with precision and adaptability.
- Sector, model, and team:
- Look for untapped markets where AI can be revolutionary. According to the article, there are significant opportunities in taxes, personal finance, and compliance. Additionally, consider sectors where emotional and human-like interactions matter, such as wealth advisory and customer service.
- Building a successful fintech platform requires a combination of generative AI for front-end user experiences and predictive AI for backend processes. For instance, predictive AI can be used for fraud detection, risk modeling, and quantitative analysis, while generative AI can be utilized for chatbots, document automation, and investing research tools.
- Having a team with a deep understanding of the problem space combined with a strong technical profile is critical. This would enable the startup to have a quick go-to-market strategy.
See: Foresight Lab: Embracing Uncertainty and Connecting Dots to the Future
- Focus on data, reliability, adaptability:
- Since financial data is mostly commoditized, you need to find ways to incorporate proprietary customer data into your AI models. This will not only enhance the value proposition but also build a competitive moat around your business. Ensuring data security is crucial, as any compromise can cause irreparable damage.
- In fintech, accuracy is paramount, especially for applications like accounting and compliance. Fintech startups must invest in data science and robust back-office infrastructures to ensure high-quality data labeling and QA processes. Generative AI can sometimes generate outputs that are not entirely accurate, so it's essential to maintain a balance and understand where generative AI is appropriate and where it's not.
- The fintech space is evolving rapidly. Being adaptable to market changes and customer feedback while staying true to the core vision and first-principles thinking is vital for long-term success.
- User Acquisition and Growth:
- The AI systems benefit from more data and usage. A rapid user acquisition strategy is vital for success. Understanding the user pain points and building an AI-driven solution that addresses these issues can help in rapid user acquisition. Also, consider the global market, not just the local, as fintech solutions can often be scaled internationally.
- Have a clear vision for your end game. Understand how you will make money. Will it be a B2B or B2C? Will you go for IPO, or are you building for acquisition? Or is it a long-term cash flow business? Each requires different strategies.
- Sometimes it's not about competing but collaborating. See if there are potential partnerships with existing financial institutions or other fintechs which can help you scale faster or provide you with additional data or market access.
Read: HuggingGPT: Enables ChatGPT to Use Pre-Trained Models to Solve NLP Tasks
- Regulatory Compliance: Do not overlook the regulatory aspects. Financial services are highly regulated, and you must ensure that your product or service complies with the regulations in the markets you operate in. AI regulatory challenges in particular is a moving target that is widely being discussed.
Building the next fintech unicorn requires a combination of the right AI technologies, tapping into the right sector, having a solid data strategy, and putting together a team that can execute with precision and adaptability.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Finance Canada Launches AML/ATF Consultation to Strengthen Regime (Deadline August 1, 2023)
Finance Canada | Release | Jun 7, 2023
Image: Finance Canada
The Government of Canada has launched this public consultation to examine ways to improve Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. Submissions to this consultation will close on August 1, 2023.
- The Government of Canada is undertaking a comprehensive review of its Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime in response to evolving risks and threats in the financial sector.
- The review is particularly crucial given the increased digitization of financial transactions and the emergence of new financial technologies, which present new potential avenues for illicit activity.
- The review will examine the effectiveness of existing legislative and regulatory frameworks in combating money laundering and terrorist financing and identify necessary improvements.
- It will also assess emerging risks in certain sectors, such as digital assets, crowdfunding platforms, mortgage lending entities, and armoured car companies, among others.
See: Guide: How to spot potential money laundering
- Key objectives include improving the detection and disruption of money laundering and terrorist financing activities, addressing higher-risk vulnerabilities, positioning Canada for its next FATF evaluation, and responding to recommendations from the Cullen Commission.
- As part of this process, the government is seeking feedback on potential policy measures that could be integrated into future legislative and regulatory amendments, with the goal of strengthening Canada's AML/ATF Regime.
Who Should Participate
Stakeholders from various sectors should participate in this consultation process, given the wide-ranging impact of money laundering and terrorist financing activities on the Canadian economy and society. Specifically:
- Financial Institutions and FinTech Companies: Given their direct involvement in the financial system, these entities can provide valuable insights on the operational challenges and potential solutions in the detection and prevention of money laundering and terrorist financing activities.
- Government Agencies: Different government departments involved in Canada's AML/ATF Regime can provide insights on policy implications, regulatory enforcement, and inter-agency coordination.
- Legal and Regulatory Experts: These individuals can contribute to the discussion around legislative and regulatory changes and their impact on Canada's AML/ATF Regime.
- Public Policy Think Tanks and Research Institutions: These groups can provide a research-based perspective on potential enhancements to the AML/ATF Regime.
- General Public: Given the broader societal implications of money laundering and terrorist financing, including the potential for financial instability and reduced trust in the financial system, the public's perspective is crucial in shaping a comprehensive and effective policy response.
How to participate (deadline August 1, 2023)
Email us your comments and feedback at fcs-scf@fin.gc.ca with "Consultation Submission" as the subject line.
Comments and feedback may also be sent by mail to:
Director General
Financial Crimes and Security Division
Financial Sector Policy Branch
Department of Finance Canada
90 Elgin Street
Ottawa ON K1A 0G5
See: Financial Crime Compliance is Ripe for Innovation – What Banks Need to Do?
By contributing to this consultation, these stakeholders can play a significant role in shaping the future of Canada's AML/ATF Regime, ultimately helping to enhance the safety and integrity of the nation's financial system.
Continue to 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
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PwC Partner and Fintech Lead Interview: “Fintech is Becoming Crypto’
Fortune Crypto | Justin Doom | May 18, 2023
Image: Unsplash/Towfiqu barbhuiya
- Adoption and Integration of Crypto in Fintech: PwC has been pivoting towards this emerging fintech trend, developing blockchain solutions to enhance efficiency, such as an expense management system eliminating the need for traditional reporting.
John Oliver, Partner and U.S. Fintech Trust Services Co-leader at PwC:
I wear many hats, so it depends on who I’m talking to. I co-lead our fintech practice. I’m a career auditor with PwC. I’ve been in our banking and capital markets group. We decided a little over three years ago to create a fintech practice combining our technology folks with our financial services—specifically bank and capital markets folks—and have one team that I co-lead with a partner of mine in our technology practice. And crypto has become a much bigger component of what the tech really is. I’d say it was a fintech push, and crypto has become increasingly dominant as part of what fintech really means. When we first started this, it was people looking for faster pay rails. And what has emerged as the answer, in some ways, is crypto. I remember probably about 2 1/2 years ago, I was like, “This is really emerging”—you know, fintech is becoming crypto.
- Shift in Interest from Crypto-native to Traditional Institutions
- Initially, the demand was predominantly from crypto-native entities seeking to go public, with a focus on establishing controls, accurate accounting, and solid infrastructures. However, the funding in the crypto space has since dried up, leading to a drop in demand from these entities.
- Now traditional financial institutions have started to fill this void, leveraging this period to build their own blockchain infrastructures for their customer networks. This shift in interest from crypto-native to traditional institutions is vividly illustrated by the changing attendee profile at Consensus, a major crypto conference, which saw a noticeable increase in representatives from the traditional finance sector.
See: Valkyrie Interview: Institutional Investors and Crypto Prices
- Regulatory Landscape:
- While acknowledging that regulation hasn't progressed as expected, [however] he believes the lack of regulation may foster innovation.
- Despite the desire for regulatory clarity to mitigate barriers, the history of American innovation suggests regulation typically lags behind technological advancement.
- He maintains that traditional finance powerhouses will continue to play a significant role in the financial landscape, with a convergence of crypto, the metaverse, and generative AI forming the digital future. This future will consist of entirely digital assets and transactions, marking a notable departure from physical currency.
Continue to the full interview --> 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
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