Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Innovation and Resources
Can AI Credit Scoring Challenge Equifax and TransUnion?
October 9, 2026 | Insight, Lending Consumer Credit And BNPL, Artificial Intelligence And Data, Open Banking And Consumer Driven Finance, Competition And Market Structure
Better Credit Data Could Open New Financing Options for Underserved Borrowers
On October 6, 2026, U.S. fintech Plaid expanded its AI credit scoring products with LendScore 2, claiming 42% greater predictive power than traditional credit data alone. The announcement puts Plaid into closer competition with credit bureaus such as Equifax and TransUnion. It also creates an opportunity for lenders to assess borrowers using more detailed financial information and potentially offer financing that conventional credit scores and standardized loan products don't adequately support.
Someone with little credit history may have steady income and manageable expenses. A growing business may generate substantial annual revenue but receive payments irregularly. Neither fits neatly into conventional lending assessments. Better access to verified transaction data could help lenders make more informed credit decisions and develop products for borrowers who have traditionally been difficult to serve. The commercial benefits are promising, but greater scrutiny of personal and business finances also raises questions about affordability, privacy and fair treatment.
Plaid Brings New Competition to Credit Risk Scoring
Plaid built its business connecting financial accounts to digital services. Its expanded LendScore products now turn banking transactions and network information into predictive credit assessments. LendScore 2 includes specialized models for automotive, home and short term lending. LendScore Arc uses AI to examine transaction sequences, timing and relationships, while Instant Link lets returning consumers authorize access to financial information without repeatedly reconnecting their bank accounts.
Plaid reports that its automotive model reduced delinquency by 26% among deep subprime applicants at the same approval rate. Its home lending model reportedly supported 6.3% more approvals at comparable risk, while its short term lending model supported 63% more approvals under the company's testing conditions. These results involve different products, borrower populations and performance measures. The headline 42% gain measures predictive performance, not an equivalent increase in approvals or reduction in defaults.
Established credit bureaus are responding to similar demands. Equifax Cashflow Insights incorporates permissioned bank transaction information into credit assessment, while TransUnion TruVision offers a wider range of risk analytics using traditional and alternative information. Bureaus still maintain credit histories, furnish reports and support correction processes. Plaid supplies its new scores through a U.S. consumer reporting agency, bringing it into the regulated credit reporting market rather than replacing that market.
| Provider | Established Role | Growing Opportunity |
|---|---|---|
| Credit bureaus | Credit histories, reports, scores and verification | Combine established records with transaction data and advanced analytics |
| Financial data platforms | Account connectivity and authorized financial data access | Provide predictive scores and credit intelligence to lenders |
| Banks and fintech lenders | Underwriting, pricing, financing and servicing | Combine purchased scores with proprietary models and customized credit products |
Large lenders can combine their own customer and repayment information with external models. Smaller lenders may find it more economical to purchase specialist scoring services. Both remain responsible for their lending decisions, including model oversight and regulatory compliance. As NCFA's analysis of open banking decision intelligence explains, financial data becomes more commercially valuable when institutions can turn it into reliable decisions. Credit scoring is one market where that competition is already underway.
Can AI Make Custom Loans Affordable for Smaller Borrowers?
In an NCFA Fintech Fridays episode 66 interview clip, Merchant Growth founder and CEO David Gens describes a persistent financing problem for Canadian small businesses. Large companies have finance teams and sufficient borrowing scale to negotiate customized arrangements. Smaller companies usually don't. Banks also have less room to spend time structuring individual transactions when the loan amount is modest. As a result, businesses with limited physical assets but meaningful cash flow can find themselves offered financing that doesn't fit their operations.
Merchant Growth provides an operating example of how lenders can respond. In the full Fintech Fridays EP66 'What it takes to build $1.5 billion in small business lending', Gens explains how the company's proprietary Merchant Score combines personal credit information, application details and business banking transactions to assess repayment capacity. Merchant Growth offers different forms of financing, including term loans, revolving credit and revenue based arrangements. Its approach demonstrates that more detailed underwriting and flexible financing existed well before Plaid's latest products.
The next opportunity is to make this level of assessment economical for more lenders and smaller financing amounts. Better information and automated analysis could reduce the manual work needed to evaluate irregular revenue, recurring expenses, customer payments and changing financial conditions. That could support more appropriate loan amounts, repayment schedules and product choices. Canadian SME financing gaps explains why business characteristics, collateral requirements and financing economics continue to leave viable companies underserved.
A FinRegLab study of more than 38,000 small business loans found that cash flow information improved credit risk predictions, with particularly useful results for younger and financially constrained businesses. Separate consumer underwriting research found that combining bank transaction records, conventional credit information and machine learning could improve risk assessment and support additional approvals at comparable risk levels. These findings support alternative underwriting, although they don't establish the performance of Plaid's new models or prove that every borrower benefits.
Richer data also creates opportunities beyond adjusting conventional loan terms. Some financing structures already exist, but more automated assessment could make them practical for smaller borrowers or more specialized needs. The following are potential applications, not products announced by Plaid.
| Borrower Need | Potential Financing | Role of Better Data |
|---|---|---|
| Limited credit history | Starter credit with graduated limits | Verified income and payment behaviour provide additional evidence of repayment capacity |
| Irregular personal income | Income responsive loans | Payments could adjust within agreed limits as verified earnings change |
| Lumpy business revenue | Contract or receivables financing | Customer payment histories and invoices help assess expected collections |
| Seasonal business activity | Adaptive working capital | Borrowing capacity and repayment schedules could reflect established sales cycles |
| Early business growth | Milestone based financing | Funding could be released as verified operating targets are achieved |
These products would still need funding, reliable forecasts, appropriate pricing and ongoing risk management. A lender could understand a seasonal business perfectly and still face losses if the expected revenue doesn't arrive. Some borrowers may also be better served by equity investment or another form of financing rather than additional debt. The commercial opportunity lies in offering suitable products at a cost that works for borrowers and lenders, while keeping human judgment available when a business doesn't fit the model.
Will Better Credit Data Improve Lending Fairness?
Better credit data gives lenders more ways to identify a good borrower, but it also gives them more information to use when pricing a loan. Someone with irregular income could qualify for financing that a conventional credit score might have ruled out. That same transaction history could reveal periods of financial stress and lead to a higher rate, smaller credit limit or outright rejection. The lender gains greater pricing power unless competition, transparency and effective consumer protections keep pace. Plaid says LendScore Arc provides standardized explanations for its predictions, although its public materials don't establish that specific spending categories are penalized.
For lenders, the real commercial opportunity is to offer credit that reflects a customer's ability to repay without increasing losses. A seasonal repayment schedule might make financing viable for a business that struggles with fixed monthly payments. But a highly personalized offer could also leave customers paying more simply because the lender knows they have few alternatives. Better risk prediction doesn't automatically translate into better borrowing terms. Lenders need to demonstrate that new products improve affordability, repayment performance and customer retention. Borrowers need a practical way to understand and challenge the information behind their offers.
Canada's emerging consumer driven banking regulations could eventually make transaction information easier to share with competing lenders. Implementation remains underway, and Plaid hasn't confirmed that its latest LendScore products are available in Canada. The framework also draws an important commercial boundary. Consumers can authorize the sharing of eligible financial records, but derived data such as credit ratings and spending classifications is excluded from mandatory sharing. The underlying information may become more portable while the intelligence built from it remains proprietary.
That creates an opening for fintechs developing scoring models, underwriting systems and specialized credit products. It also protects a potential source of competitive advantage for incumbents that already hold extensive customer and repayment data. Smaller lenders may gain access to sophisticated analytics without building everything themselves, but they'll still need to control model costs, credit losses and servicing expenses. Firms that can demonstrate better loan performance and reach underserved customers economically will have a stronger business case than those selling another AI scoring tool.
NCFA's earlier analysis of underserved financial consumers identified how different income patterns, financial pressures and levels of trust create distinct product needs. More detailed credit intelligence could help address some of those gaps, provided it leads to financing customers can manage. The opportunity for Canadian fintechs is to compete on better credit products, not simply gather more information about borrowers.
Talking Point
Canada's small business lending experience shows that access to credit and financing fit are different problems. Better data can help address both, provided lenders can develop products that borrowers can afford and operate them profitably. Will competition in AI credit scoring produce better financing options for underserved borrowers, or mainly give lenders more ways to measure risk and price credit?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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BDC, Woveo, Peloton and Driven Expand SME Financing
October 9, 2026 | Market Activity, SME Finance And Business Banking, Payments, Embedded Finance, Canada
C$10 Million in Microloans and Up to 55 Days of Supplier Payment Flexibility
On October 8, 2026, Calgary fintech Woveo and BDC announced a C$10 million microlending program, offering loans up to C$25,000. BDC and Woveo are helping entrepreneurs access smaller loans that conventional lenders may find costly to originate. Woveo's loans are available to qualifying businesses outside Quebec.
The same day, Peloton Technologies and Driven Financial announced a supplier payment and working capital partnership, giving Peloton's Canadian small business clients preferred access to Driven's financing products. Peloton's existing Bill Pay by Card service offers up to 55 days of payment flexibility through eligible credit card billing cycles, serving eligible clients across Canada. Peloton and Driven are connecting existing business payment customers with financing when their needs extend beyond a credit card billing cycle.
BDC and Woveo Target Small Loans That Banks Struggle to Serve
A C$15,000 business loan can require many of the same checks as a C$150,000 loan. For traditional lenders, the time spent verifying information, assessing risk and servicing a small balance can make the economics unattractive. Woveo combines AI assisted underwriting, banking transaction data, credit information and community accountability to evaluate borrowers. BDC contributes institutional capital through its Community Banking initiative, giving Woveo greater capacity to serve entrepreneurs seeking relatively small amounts.
The BDC and Woveo microloan program provides up to C$25,000 without traditional collateral. Applicants must have at least 12 months in business, C$5,000 in monthly revenue, a credit score of 600 or higher and a community accountability partner. The program excludes Quebec. These requirements mean the offering could help businesses underserved by conventional lenders, but it isn't unrestricted financing for new startups or borrowers without established revenue.
Woveo reports facilitating more than 1,200 loans with a 98% repayment rate through earlier community programs. The commercial opportunity is to make small business lending more economical while retaining sufficient oversight and borrower support. The program's longer term value will depend on loan performance, borrowing costs and whether participants can subsequently obtain larger financing from mainstream institutions.
Peloton and Driven Connect Supplier Payments With Business Loans
Peloton serves businesses that need to pay suppliers before customers have settled their invoices. Its Bill Pay by Card service lets eligible customers charge supplier payments to a credit card, even when the supplier doesn't accept cards. Peloton transfers the funds electronically, and the business pays its card issuer later. The arrangement can preserve cash for up to 55 days, depending on the card billing cycle, but it isn't a separate loan from Peloton.
See: Can AI Credit Scoring Challenge Equifax and TransUnion?
Peloton's published transaction fees start at 1.59% for consumer cards, 1.75% for corporate and purchasing cards, and 2.4% for business cards. Actual charges vary, and additional interest may apply when card balances aren't paid on time. An owner expecting a customer payment next week faces a different calculation from one borrowing to cover several months of expenses. Supplier discounts and card rewards may offset some transaction costs, but the business still needs to compare its total financing expense.
Driven (formerly Thinking Capital) and now part of Purpose Unlimited, provides separate business lending products for longer funding requirements. Its current Driven Financial company information reports more than C$1.6 billion in financing across over 20,000 Canadian businesses. Peloton clients receive preferred access to Driven, but lending decisions remain subject to assessment, and the companies haven't disclosed a shared underwriting system.
Canadian SME Financing Needs More Than Faster Approvals
Payment delays can leave Canadian small businesses short of cash even when sales are healthy. Payments Canada's 2026 Canadian payments data shows that 37% of surveyed SMEs consider payment delays a significant problem. A contractor waiting for customer payments may need temporary cash to cover suppliers, while another business might require a C$20,000 loan to purchase equipment or expand operations. The amount, repayment period and reason for borrowing determine which financing product makes sense.
Canada's SME financing gaps aren't explained by approval rates alone. Smaller businesses can struggle with application costs, collateral requirements and financing products designed for larger or more established borrowers. Woveo is addressing the economics of evaluating small loans. Peloton and Driven are using a payment relationship to connect businesses with financing.
Talking Point
BDC and Woveo are addressing the cost of serving smaller borrowers, while Peloton and Driven are combining payment services with access to business credit. Both arrangements could improve how Canadian SMEs find suitable financing, but the commercial and borrower benefits still need to be demonstrated. Can alternative lenders make smaller financing transactions profitable while offering terms that genuinely match how Canadian businesses earn and repay money?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Modern FinTech Innovations and Responsible Digital Entertainment in Canada
Oct 9, 2026
Financial technology or FinTech, is growing fast across Canada. Recent market data shows that over 78% of Canadian adults now use digital payment methods for daily purchases and leisure activities. As local banking systems evolve, digital entertainment platforms are adopting advanced payment rails such as Interac e-Transfer, real-time banking APIs and encrypted digital wallets. These systems give consumers faster access to their funds while keeping personal data fully safe.
At the same time, regulatory bodies in provinces like Ontario have introduced strict standards to safeguard users online. This blend of strong consumer protection and modern financial technology has changed how people approach digital hobbies.
Casino Payment Systems and Modern FinTech Standards
Today, many Canadians who explore online casinos Canada prefer sites that feature transparent transaction limits, certified fair random number generators and robust consumer privacy safeguards. Navigating the landscape of online entertainment requires a solid understanding of how financial platforms process transactions. When you join a modern platform, swift deposit methods and secure withdrawal systems are essential for a smooth experience. Canadian financial regulations demand that payment processors use bank-grade 256-bit encryption to protect every transfer.
Furthermore, integrating real-time payment verification reduces fraud and prevents unauthorized account access. Whether you use traditional debit cards or digital wallet services, modern platforms offer flexible options that fit standard household budgeting practices.
Breakdown of Canadian Gaming Payment Methods and Features
To help you analyze the performance and security of various digital payment systems, we compiled current operational data in the comparative breakdown below.
| Payment Method | Average Processing Time | Consumer Security Level | Typical Minimum Transfer | Key Financial Advantage |
| Interac e-Transfer | Instant Deposit / 1-2 Hours Withdrawal | High Bank Encryption | $10-$20 | Direct Bank Verification |
| Major Debit Cards | Instant Deposit / 1-3 Days Withdrawal | Standard PCI-DSS Compliance | $10 | Widespread Availability |
| Digital Wallets | Instant Deposit / Same Day Withdrawal | Multi-Factor Authentication | $20 | Private Banking Details |
| Instant Bank Transfer | 1-2 Business Days Withdrawal | Direct Clearing System | $20 | Ideal for Larger Transfers |
Smart Financial Habits for Digital Players
Maintaining healthy financial habits is vital when engaging in online entertainment. Treating digital gaming purely as a light leisure expense—similar to purchasing concert tickets or dining out—ensures that your hobby remains safe and enjoyable.
Clear Personal Spending Boundaries
Set a firm, predetermined limit on what you choose to spend before opening any gaming app. Once your chosen budget for the session is exhausted, log off immediately and focus on other hobbies.
Secure Payment Rails
- Always select payment providers that offer multi-factor authentication for every login attempt.
- Avoid sharing your primary banking credentials or debit card numbers on unsecured public Wi-Fi networks.
- Utilize automated deposit caps available inside your account dashboard to keep monthly spending aligned with your goals.
- Monitor your personal bank statements regularly to track all recreational entertainment transfers accurately.
Structured Time Management
Establish clear time limits before starting any digital session. Setting a gentle alarm on your mobile device helps prevent fatigue, preserves focus and keeps your personal schedule well-balanced.
Primary Benefits of Regulated Digital Platforms
Choosing licensed and properly monitored entertainment platforms offers significant advantages for Canadian consumers who value security and fair play.
Robust Consumer Protection
Licensed sites must adhere to strict operational guidelines set by official regulatory bodies. This oversight ensures that player funds are kept in segregated bank accounts, separate from operational funds.
Transparent Game Fairness
Regulated platforms utilize independently tested Random Number Generators (RNGs). Independent auditing firms inspect these systems regularly to verify that every spin or card draw is completely random and unbiased.
Integrated Responsible Gaming Tools
Modern software includes built-in protective features such as self-exclusion options, cool-off periods and real-time session timers. These digital tools empower users to manage their online time proactively.
Final Remarks on Responsible Gaming in Canada
Understanding the intersection of modern financial technology and digital entertainment helps consumers make informed, confident choices. By relying on secure Canadian payment rails, setting firm spending boundaries and selecting licensed platforms, you can enjoy digital leisure safely. Always prioritize consumer security, protect your household budget and keep your online entertainment balanced and fun.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canadian Public Markets Study Seeks Industry Input
October 8, 2026 | Industry Research - Call For Participation | Capital Markets, Capital Formation, Canada
University of Calgary Researchers Studying Canada's Declining Public Listings
On October 8, 2026, the 2026 Canadian Public Company Study, led by University of Calgary researchers Dr. L. Daniel Wilson of the Faculty of Law and Dr. J. Ari Pandes of the Haskayne School of Business, is seeking input from Canadian business leaders and capital markets professionals on why fewer companies are going public and which reforms could reverse the decline. The national survey is open until October 31, 2026.
According to University of Calgary researcher Dr. Ari Pandes' testimony before the Senate Banking Committee, the number of operating companies listed on the Toronto Stock Exchange (TSX) fell to 634 in 2025 from 1,206 in 2008, a decline of nearly 50%. The problem isn't primarily that more companies are leaving the exchange. It's that too few new companies are taking their place.
Since 2021, there have been only three TSX IPOs with primary offerings, underscoring why researchers are examining what discourages Canadian businesses from going public and which reforms could help rebuild the listing pipeline.
Who Can Participate in the Canadian Public Company Study
The researchers are seeking perspectives from two groups of experienced Canadian market participants:
- Senior business decision-makers (executives and directors of Canadian public or private companies)
- Capital markets professionals (securities and corporate lawyers, accountants, investment bankers, broker-dealers, venture capital and private equity investors, asset managers, securities regulators and stock exchange professionals)
The survey takes approximately 10 to 20 minutes. Participation is confidential, and the researchers state that no personally identifying information is collected. The study is partially funded by the Ontario Securities Commission (OSC) and has received University of Calgary research ethics approval (REB26-0761). Findings are intended to inform policy papers published by the OSC, C.D. Howe Institute and other outlets.
Can Public Markets Compete With Growing Private Markets?
Canadian companies have more choices about where and how they raise capital. Venture capital, private equity, private credit, angels, and equity crowdfunding offer some alternatives to public listings, while secondary markets and new financial technology are expanding access private investments. The growth of tokenized pre-IPO private markets shows how investors are seeking exposure to companies before they list, although tokenized products don't necessarily provide direct share ownership or the protections and liquidity of public markets.
See: Public Markets and Equity Crowdfunding
Canada needs to understand why companies aren't entering public markets, but also why founders and investors increasingly find private financing attractive. Listing costs, liquidity, valuations, regulatory obligations and access to growth capital all influence those decisions. The University of Calgary study can help identify which reforms would make public listings more competitive without overlooking the innovation already taking place in private markets.
Survey deadline: October 31, 2026. Eligible business leaders and capital markets professionals can participate in the Canadian Public Company Study and share the invitation with qualified colleagues.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Digital Wallet Control Points for Banks and Fintechs
October 8, 2026 | NCFA Resource | Payments And Money Movement, Digital Identity And Trust, Competition And Market Structure
Where Digital Wallet Control Really Sits
On October 8, 2026, Mobey Forum launched its Digital Wallet Control Points tool, an interactive map of 22 points where banks, payment providers, wallet providers and other firms can influence how a digital wallet works. It shows how those points connect, which roles are involved and where a firm may need another company to make the service work.
Wallets no longer stop at payments. Identity, credentials, loyalty, data and agentic commerce are being pulled into the same customer experience. A bank or fintech may own the front end and still rely on several other firms behind it. The map helps teams see who controls what before they make a product, security, partnership or investment decision.
What It Does In Practice
Mobey Forum defines a control point as a part of wallet operations, or a connected service, that gives an organization influence over how something works. The tool maps those points against the roles that can affect them and shows how one area connects to another.
Users can explore the map directly or start with a real problem. One guided example follows a security specialist at a European bank scoping a review of its wallet offering. Another looks at a bank planning for agentic commerce and asks what it would need from card schemes, payment service providers and token providers.
A bank can see where it has direct control and where another company matters. A fintech can see where a product fits without pretending it needs to own the whole wallet. An investor can look past the front end and ask whether a company controls something important or depends on someone else for access, distribution or execution.
Digital identity is also part of the current wallet conversation. Mobey Forum specifically points to the European Digital Identity Wallet as a reason firms need to think about identity verification and credential sharing alongside payments. The map gives those teams a way to see where the roles connect instead of treating each function separately.
The work also includes Canadian input. David Dymond of Royal Bank of Canada is part of the core team, while Neill Ashe and Hannah McIsaac of RBC are listed in the wider expert group. Interac contributors include Inna Gelmanova, Navjeet Grewal, Srdjan Manojlovic and Jeremy Wilmot.
Who Gets Value
Banks and credit unions can use the map before deciding what to build, what to buy and where a partner is unavoidable. Product teams can trace the firms involved in a proposed service. Security teams can see which important functions sit outside their own systems. Strategy teams can ask whether controlling a particular part of the wallet is worth the capital and effort.
Payment companies and wallet providers can use it to see where their role becomes important to someone else. That may be more valuable than owning the entire customer relationship. A firm that controls a hard-to-replace function can have a stronger position than one with a visible consumer brand but little control underneath it.
For fintech founders, there may be little value in rebuilding a capability that banks or large payment firms already control well. A smaller company may have a better opening where several participants need the same missing service or where existing options create too much friction.
Investors can use the map in much the same way. A company may be growing quickly but still rely on someone else for credentials, customer access, payment execution or distribution. That can affect margins, negotiating power and how defensible the business really is.
Agentic commerce makes this more immediate. Once software can use a payment credential or act for a customer, financial authorization and payment controls become part of the wallet question too. Who can approve the action, who executes it and who can stop it may sit with different firms.
Strengths And Limits
Teams don't have to study the entire wallet market before they can use the tool. They can begin with a security review, a product idea, an agentic commerce plan or an investment question and follow the control points related to each decision.
It also makes hidden reliance easier to spot. A firm may appear to own the wallet experience while another company controls a critical connection, credential or payment function. OSFI warns about rising cyber, technology and third-party risk across increasingly connected financial systems and AI adoption. Those outside dependencies can change the economics of a product, the risks involved and whether building internally makes sense.
Mobey Forum has been working on this idea for a long time. Its original mobile wallet control points work dates to 2012, when it focused on areas such as wallet connections, distribution, customer acquisition, data flow and movement of value. The 2026 tool carries the same basic question into a much wider wallet market.
There are clear limits. The map won't tell a bank which control point it should own, whether a partnership is a good deal or whether a product will make money. It also doesn't replace security testing, architecture work, legal review or commercial due diligence. Its job is earlier than that: show the players, the connections and the places where control may matter enough to investigate further.
In the Mastercard, Flybits and Rogers Bank AI purchase, the customer set the instructions and spending limit, Flybits supplied the shopping agent, Rogers Bank supplied the card relationship and Mastercard handled the payment. Control was split across the customer, AI agent, card issuer and payment network.
Key Resources
Digital Wallet Control Points Launch (22 control points and guided use cases)
Mobile Wallet Control Points (Mobey Forum's original 2012 control model)
AI Agents Gain Identity and Wallet Access (wallet access, identity and delegated permissions)
FCA Emerging Technology Horizon Scan 2026 (AI, programmable finance and financial crime)
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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OSFI Flags Frontier AI Risks Across Canadian Finance
October 8, 2026 | NCFA Insight | Artificial Intelligence And Data, Risk Compliance And Regtech, Cybersecurity And Fraud
Shared AI Infrastructure Is Becoming a Financial System Blind Spot
On October 8, 2026, the Office of the Superintendent of Financial Institutions warned that a small number of companies now dominate frontier AI models and the cloud infrastructure used by Canadian financial institutions, raising the risk of shared technology failures across the financial system. If one critical provider suffers an outage, cyber incident or operating failure, several financial institutions could be affected at the same time. OSFI also says institutions may struggle to maintain a clear view of AI use, vulnerabilities and controls at critical technology providers as adoption expands.
See: AI Payments Challenge Consent Rules And Liability
Canadian financial firms are advancing on AI swiftly. The Bank of Canada's 2026 Financial System Survey found that nearly all 54 respondents use AI, with planned expansion into investment management, financial crime prevention, customer service and operating workflows. Respondents themselves raised concentration among a small number of AI and cloud providers and the risk of shared mistakes when firms use similar models. OSFI now says it will assess common dependencies on critical service providers and their effects across the financial system. Canada can supervise how individual firms manage vendors, but it also needs to know when several institutions ultimately depend on the same model, cloud, API or software supplier.
What OSFI Added on October 8
OSFI hasn't introduced new AI rules. Its April frontier AI bulletin already warned that advanced models can find and chain software vulnerabilities at machine speed. Its July guidance on generative and agentic AI went further, including controls around agent identity, permissions, approvals and auditability. Those risks become more consequential as financial AI agents gain more authority inside regulated systems. The October update raises these concerns inside OSFI's formal risk outlook and puts more weight on what happens when the same suppliers support multiple institutions.
| Issue | Already known | What changed October 8 | Why it matters |
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| AI cyber capability | OSFI had already warned that frontier models can speed up vulnerability discovery and attacks. | Frontier AI now receives focused treatment in OSFI's formal risk outlook. | AI moves closer to regular prudential supervision rather than remaining a specialist technology issue. |
| Shared providers | Existing guidance already covered third party concentration and AI dependencies. | Directly links concentrated frontier model and cloud providers with disruptions that can affect several institutions. | A supplier failure can become a financial system problem rather than stay inside one firm. |
| Foreign technology dependence | Third party and operating risk rules already covered outside technology providers. | OSFI now highlights growing dependence on technology services outside Canada. | Foreign policy, technology restrictions or geopolitical events can affect access to services Canadian firms rely on. |
| Common financial system exposure | The Bank of Canada and international regulators had already raised concentration concerns. | OSFI says it will assess common dependencies on critical service providers and their wider effects. | Regulators need to understand connections across firms, not only risk inside each institution. |
| AI adoption | Financial institutions were already expanding AI use. | Warns that moving too slowly can also weaken competitiveness and resilience. | Risk management cannot simply mean slowing AI deployment. |
OSFI is asking institutions to go faster and become more careful at the same time. Frontier AI can improve productivity, cyber defence and vulnerability detection, but governance, testing and controls have to keep pace. The Bank of Canada survey shows how quickly that tension is becoming operational. Nearly all respondents already use AI, 58% report difficulty integrating it into existing infrastructure and workflows, 56% cite talent constraints, and many expect to expand use over the next two years.
Canada Still Lacks a Public Map of Shared AI Dependencies
A bank may know which technology company it hired without seeing every dependency underneath that supplier. A fintech might use software that calls another company's model through an API while both services ultimately run on the same cloud infrastructure. Two vendors that look separate on a procurement list can still fail together. OSFI's July guidance reflects that problem by telling institutions to map internal and external AI dependencies, test failure scenarios, assess whether AI services can be moved or replaced and require suppliers to disclose whether they use AI to deliver services.
No public Canadian source currently shows which frontier models, cloud providers, APIs and supporting services are shared across regulated financial firms. That doesn't mean OSFI or the institutions have no visibility. It means the public evidence doesn't show a complete view across the system, while OSFI itself says firms may find it difficult to understand AI use and controls at critical third parties. The Financial Stability Board reached a similar conclusion internationally. Its AI monitoring framework focuses specifically on third party dependencies, provider concentration and the data gaps that make those risks harder to track.
The Bank of England's July Financial Stability Report says frontier AI could increase the risk of several firms or technology suppliers being disrupted at once and is being incorporated into financial sector cyber and operating tests. Its scenarios consider simultaneous disruption across firms, common technology supply chains and whether suppliers could support all affected clients at the same time. Canada has identified many of the same risks, but OSFI's October update shows that mapping and assessing common dependencies is still part of the work ahead.
Banks Need Better Tools to Track AI Dependencies
Financial institutions need better ways to see which models, clouds, APIs, datasets and agents support critical workflows, where suppliers overlap and whether a service can actually be replaced during an outage. They will also need clear records showing which AI system acted, what access it had, which data it used and who approved important actions. AI agents inside payment flows already make identity, permissions, approval limits and audit trails practical operating requirements rather than abstract governance concerns.
The commercial regtech opportunity is beyond generic AI compliance software. Banks, insurers and fintechs may need live dependency maps, supplier overlap monitoring, model switching tools, agent access controls, failure testing and records that can be reviewed by boards and regulators. The recent Agentic Regulator projects show builders already working on agent identity, auditability, market monitoring and automated supervisory tools. Smaller institutions may need these tools most because they depend more heavily on outside AI providers and have less capacity to build comparable controls themselves.
See: OECD-FSB Discuss New AI Trends in Finance
Simply adding more vendors won't solve the problem if those vendors rely on the same models or cloud infrastructure underneath. Better visibility, tested alternatives and clear permission controls may be more important than the number of contracts an institution signs. As AI moves closer to financial decisions, companies that can safely connect data, models and automated actions will gain an operating advantage. The tools that make those connections visible and controllable may become just as important as the models themselves.
Talking Point
OSFI's October warning is really about the infrastructure underneath financial AI. Canadian institutions are adopting more capable models while relying on a technology supply chain that is concentrated, layered and often outside Canada. The next supervisory challenge is knowing when many firms depend on the same underlying technology before an outage, cyber attack or model failure reveals the connection. That also creates a clear opening for Canadian fintech and RegTech companies that can map AI dependencies, test alternatives, control autonomous agents and produce reliable records of what those systems do.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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FNZ Turnaround Tests La Caisse and Canadian Pension Capital
October 7, 2026 | NCFA Market Activity | Wealthtech, Private Markets, Institutional Capital, Canada
Repeated Capital Raises Are Turning Ownership Into Active Governance
On October 5, 2026, the Financial Times reported that La Caisse tightened its control over FNZ, a global wealth technology platform serving banks, wealth managers and investment firms, after another management change. La Caisse, the Quebec based global investment group formerly known as CDPQ, is FNZ's largest investor. FNZ appointed Stephen Welch Executive Group Chair and interim CEO in September after Blythe Masters left the chief executive role.
La Caisse has backed FNZ since 2018. CPP Investments, which manages the Canada Pension Plan Fund, committed US$1.1 billion in 2022 when FNZ was valued above US$20 billion. Since August 2024, FNZ has raised another US$2.6 billion from existing shareholders while restructuring operations, refinancing debt and changing senior leadership.
Scale isn't FNZ's problem. The company reports US$2.5 trillion of assets on platform and more than 30 million end customers. Its technology supports hundreds of financial institutions across account administration, investment operations, transaction processing and client servicing. The issue is profitability. FNZ now has to show that its scale can generate enough cash to support the business without repeated shareholder funding.
FNZ's US$20 Billion Valuation No Longer Explains the Investment
CPP Investments and Motive Partners committed US$1.4 billion to FNZ in February 2022, valuing the company at more than US$20 billion. CPP Investments supplied US$1.1 billion. FNZ then administered more than US$1.5 trillion for over 20 million customers. Four years earlier, La Caisse, then CDPQ, and Generation Investment Management acquired existing FNZ stakes in a transaction valuing the company at £1.65 billion.
FNZ has required substantial additional capital since the 2022 financing. Existing shareholders committed US$1 billion in August 2024, US$500 million in April 2025, US$650 million in November 2025 and US$450 million on September 1, 2026. FNZ also refinanced US$2.1 billion of debt in late 2024.
None of those financings establishes a lower current valuation. Private financings can alter who receives value through preference shares, warrants and other contractual rights without producing a new market price for every existing share.
Employee shareholders are challenging part of that capital structure in New Zealand, where FNZ was founded. Their US$4.6 billion claim alleges that preference shares and warrants issued during the 2024 and 2025 financings unfairly diluted employee holdings and transferred value toward institutional shareholders. FNZ says the claim is entirely without merit and that its directors acted in the company's best interests. The allegations haven't been proven.
The dispute highlights why private market valuation transparency matters once financing structures become more complicated. A financing price shows what an investor paid for a particular security at a particular time. It does not automatically tell an employee, founder or earlier investor what their position is worth after subsequent rounds add new rights and preferences.
La Caisse Takes a More Active Role in FNZ's Turnaround
FNZ's board currently includes three La Caisse representatives: Denis A. Turcotte, Jean Étienne Leroux and Justin Shaw. Motive Partners and Generation Investment Management also hold board seats. FNZ says Stephen Welch's appointment is intended to improve client delivery and support long term profitable growth. The Financial Times reported that investor frustration had increased, Blythe Masters was asked to step down and La Caisse became more involved in the turnaround. La Caisse has not publicly confirmed those details.
FNZ remains deeply embedded in its clients' operations. Its technology supports wealth administration, transaction processing and client servicing. Replacing it can involve long implementations, data migration, regulatory work and operational risk. FirstCape selected FNZ in 2025 to consolidate the JBWere New Zealand wealth platform and custody operation, then expanded the relationship in 2026. Several FNZ clients also joined the company's November 2025 financing.
That customer base gives shareholders a reason to keep repairing the business. It does not fix the financial performance.
The Financial Times reported an approximately US$1.4 billion pretax loss for 2025. Customization costs, acquisitions and operating expenses contributed to the loss. FNZ has sold non core businesses, cut costs and focused more closely on wealth technology for large financial institutions. FNZ UK also completed its FCA Section 166 review in 2025 after improving governance, delivery, risk management and operating controls. FNZ is reportedly targeting positive cash flow in late 2027. Until then, it still has to prove that its large customer base and infrastructure can generate enough cash to support the business without more shareholder funding.
La Caisse and CPP Investments invested at different stages, but both now have substantial capital tied to FNZ's recovery. That gives them more than a financial interest. They also have to make decisions about funding, board oversight, management and restructuring when results fall short. FNZ is too large and too international for this to be reduced to whether Canadian pension money should have stayed in Canada. The issue is whether Canadian institutional investors can manage difficult global technology investments after the original growth case weakens.
Canadian fintech capital concentration is putting more money behind fewer companies with stronger evidence of scale and execution. Larger investments can produce larger gains, but they also make operating mistakes more expensive. Wealthsimple's institutional financing shows the growth side of that model. FNZ shows what happens when investors are already committed and the business still needs fixing.
For fintech founders and operators, FNZ is a reminder that scale, customer dependence and high private valuations do not remove the need for sound economics. Complex enterprise delivery, repeated customization and acquisition growth can create costs that are difficult to unwind later. Once outside investors have committed large amounts of capital, weak financial performance can also bring more board oversight, management changes and tighter control over strategy.
Talking Point
FNZ shows what private capital ownership looks like after the easy financing story ends. La Caisse and FNZ's other shareholders have already supplied billions of dollars of additional capital. They are now relying on board influence, management changes, asset sales, cost controls and a narrower operating focus to improve the economics of a platform used by millions of investors.
Information notice: This article is for informational purposes only and does not constitute investment, legal or financial advice. Allegations in the FNZ employee shareholder litigation remain unresolved and have not been proven.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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