Karsten Wenzlaff, Advisor
August 26th, 2025
August 26, 2026 | NCFA Insight | Regulation And Policy, Artificial Intelligence And Data, Risk Compliance And Regtech, Competition And Market Structure

On August 26, 2026, U.S. attorneys general announced a settlement with Meta worth up to US$17.1 billion over allegations that Facebook and Instagram were designed to keep children and teens engaged despite risks to their health and well-being. If the court approves the agreement, Meta also has to limit how long minors can use its apps, restrict overnight access and school-hour notifications, strengthen age checks and give families more control over what young users see.
Meta isn't required to admit it did anything wrong under the settlement. It does expect to record an approximately US$10 billion legal expense in Q3 2026. Governments aren't only extracting billions from Meta. They're putting enforceable limits on features that help determine how often young people open Facebook and Instagram, how long they stay and what keeps them scrolling.
Users under 18 will start with a combined two-hour daily limit across Facebook and Instagram. Parents can approve more time, but teens can't simply turn the limit off themselves. Meta also has to block most access from midnight to 6 a.m. by default and mute most notifications during school hours.
The agreement goes deeper. Teens get regular break prompts and more control over personalized feeds, autoplay and visible like counts. Meta also has to strengthen age assurance, identify children under 13, improve parental controls and maintain protections against harmful content and unwanted adult contact.
Recommendations, notifications, autoplay and frictionless consumption help technology companies turn attention into usage, retention and advertising revenue. That's why the settlement is strategically important. A feature can be commercially valuable for years and still become expensive if evidence eventually shows that the same behaviour driving engagement is contributing to harm.
NCFA's Algorithms Go On Trial As AI Scales Across Society unveiled the lawsuits challenging recommendation systems, infinite scroll, autoplay and notifications as deliberate product choices rather than simply arguing about what users post. Those cases have now produced jury findings, large financial awards and operating restrictions. The debate over addictive design is becoming much harder for boards to leave with legal counsel or the product team.
Meta can afford the settlement though. The company earned enough to absorb an approximately US$10 billion quarterly legal charge without changing the financial guidance it gave investors in July. Markets also reacted positively after the settlement was announced, reflecting relief that Meta avoided the potentially larger uncertainty of continuing the federal trial.
That is precisely why boards should study what happened.
Years of complaints, research, lawsuits and internal evidence accumulated around the same basic concern: were Facebook and Instagram using product features to keep children engaged in ways that could harm them? The exposure grew from a difficult policy issue into jury verdicts, court-ordered controls and now one of the largest state settlements ever reached with a single company.
August coverage of the New Mexico Meta ruling showed how quickly the consequences were already expanding. That case combined a US$375 million jury award with a further US$567 million abatement fund and requirements affecting teen usage, notifications, age assurance, adult contact and AI chatbot interactions involving minors.
If management keeps getting signals that a profitable feature may be harming young users and keeps pushing it anyway, the issue eventually belongs with the board. Investors should know when those warnings reach directors, what they’re told and who can decide that the revenue is no longer worth the risk.
Meta also negotiated an unusually strategic feature into the settlement.
Its own disclosure describes an approximately US$18 billion payment structure over ten years. About US$12.7 billion is allocated to participating states regardless of what competitors do. Roughly US$5.3 billion is released only if both TikTok and YouTube adopt specified teen protections and make matching payments.
That gives Meta billions of reasons to bring its competitors along.
Commercially, the logic makes sense given the amount of competition. If Facebook and Instagram restrict teen usage while TikTok and YouTube remain more permissive, users and coveted 'attention' can migrate to competing apps. Meta bears the cost while rivals gain more opportunity to capture the hours, content consumption and advertising inventory Meta gives up.
The terms get tougher if TikTok and YouTube participate. Meta's daily limit falls from two hours across Facebook and Instagram to one hour per app, while its nighttime block expands from midnight to 6 a.m. to 10 p.m. through 7 a.m.
So Meta isn't simply asking competitors to copy its safety policies. It is trying to prevent child-safety rules from becoming a competitive handicap carried mainly by Facebook and Instagram.
TikTok and YouTube haven't agreed to the framework. Until they do, Meta could still end up operating under restrictions its largest rivals don't share.

Concern about how digital products affect children has been building for years. In 2023, NCFA analyzed Canadian research into children's privacy and consent that called for stronger safeguards to be built into digital products from the start. Children don't assess consent, persuasive design or data collection the way adults do, yet personalization and recommendation systems routinely influence what they watch, read and do next.
Meta's settlement gives those concerns a much larger financial consequence. Governments are no longer relying only on warnings or disclosure requirements. They are specifying age checks, usage limits, notification controls, parental oversight and independent monitoring.
Once those requirements appear in a multibillion-dollar agreement, other platforms know what regulators may ask for next. The settlement doesn't create legal precedent, but it gives attorneys general a detailed set of measures they can use in future negotiations and enforcement.
AI companions and conversational assistants can respond personally, remember context and keep conversations going. Research into youth use of AI reported that 72% of teens had tried AI companions and examined evidence of young people using generative AI for emotional and mental health support.
AI can change the type of exposure a child experiences. A recommendation feed influences what a young person sees next. An AI system can respond directly, adapt to the conversation and encourage the user to keep engaging.
For companies serving children or vulnerable users, it's even more important to know what the system is encouraging, where harmful patterns are appearing and who can change the product when the interaction becomes uncomfortable.
The same principle can be seen in fintech where younger customers use digital wallets, investing apps, financial education tools and AI assistants. Meta's settlement rules don't apply to those products. The relevant lesson is that companies need to understand how their own systems influence behaviour before a regulator or court does it for them.
Meta's US$17.1 billion settlement shows how expensive the problem can become when concerns about engagement, harm and product design build for years without a convincing response.
When a company knows a profitable engagement feature may be harming young users, who should have the authority to decide when growth has gone too far?
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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August 25, 2026 | NCFA Insight | Treasury Liquidity And Cash Management, Payments Infrastructure And Money Movement, Cross Border Payments And FX

On August 25, 2026, Royal Bank of Canada created a RBC Global Transaction Banking business spanning Commercial Banking in Canada and the United States and RBC Capital Markets. Payments, cash and liquidity management, working capital, trade finance and foreign exchange will operate under shared leadership and one strategy.
Most of the products already existed. RBC is changing how it organizes, develops and sells them. RBC Edge serves Canadian cash management clients and RBC Clear serves the U.S. market. The bank hasn't said the two platforms will become one system.
When a business collects money, makes payments, holds cash, converts currencies and borrows through the same bank, that relationship can produce payment fees, operating deposits and more financing opportunities. RBC is trying to make more of those services work as one relationship across borders.
RBC explicitly links transaction banking to deposit growth. By the end of fiscal 2025, RBC Clear U.S. transaction banking had attracted US$23 billion in deposits from more than 180 clients, up from about US$9 billion and 100 clients earlier that year. RBC's medium term target is US$50 billion.
Operating deposits are useful because businesses need money available for payroll, suppliers, collections and other daily obligations. RBC can use those balances as funding elsewhere in the bank while earning fees from payments and treasury services.
BMO shows how significant that combination can become. At its March 2026 Investor Day, BMO Treasury and Payment Solutions said it served more than 138,000 businesses and had processed $68 trillion in payments during the previous fiscal year. The business represented roughly 40% of BMO's deposits and about 10% of fee revenue.
For banks, the prize isn't just the payment. It's the cash before and after the payment, the foreign exchange required across markets and the financing a business may need later.
Businesses don't have to replace their primary bank to give part of the relationship to somebody else. Payments, foreign exchange, cards, payables and finance software can all be purchased separately while the main operating account stays where it is.
Canadian payment data shows where demand is strongest. Payments Canada SME payment research found 69% of small and medium-sized businesses would use real-time payments to send money and 66% would use them to receive money if available. Payment delays were their most common payment problem, followed by cash flow management.
A separate 2025 Canadian business payments survey found 60% planned to increase fintech use, 77% were prioritizing real-time payments and 53% expected to move from traditional payment methods toward digital ones.
This means payments are a practical entry point for fintechs. A company can solve a visible problem such as supplier payments, international transfers or reconciliation without asking the customer to move its entire banking relationship.
| Provider | What It Brings Together | Where It Can Win |
|---|---|---|
| RBC | Payments, deposits, cash management, FX, trade and working capital | Large relationships, lending capacity and cross border banking |
| BMO | Treasury, payments, deposits and embedded banking | North American treasury and business banking |
| Airwallex business payments and FX | Multi-currency accounts, payments, FX, cards and bill pay | Businesses managing money across countries and currencies |
| Float business finance platform | Accounts, cards, payments, FX, credit and finance automation | Canadian finance teams that want banking and software together |
| Dream Payments real-time payouts | Payment controls, supplier onboarding and payouts | Payments built directly into business software |
Customer survey and behaviour data suggests the relationship can already break apart product by product. Canadian bank switching reached a 20-year high in 2025, with 24% of Canadians choosing a new financial institution when opening an account. Another Canadian financial loyalty survey found 62% would be open to switching if the process were easier, while 35% identified switching hassle as a barrier.
Canada's new financial infrastructure can lower the friction of using several providers. Proposed Canada Open Banking and Consumer Driven Banking Rules establish the framework for consent-based financial data sharing, authentication and security.
The Canada open banking commercialization roadmap shows what that can mean commercially. Read-only data sharing can support cash flow dashboards, account comparison, switching and easier onboarding, while later payment initiation can open more room for embedded credit, payments and real-time treasury services. The competitive effect isn't only easier switching. It's easier unbundling, because a business can use better tools from another provider without first moving its main operating account.
A business could keep its core banking relationship with RBC while using another provider for foreign exchange, payables, treasury analytics, cards or financing. Better data access makes those services easier to connect. The primary bank doesn't have to lose the customer to lose part of the relationship.
The payment side is changing too. Canada's Real-Time Rail access rules create new participation routes for eligible payment service providers as Canada prepares for instant, data-rich payments. Payments Canada research already highlights strong SME demand for faster payments. RBC did not say that the new global transaction banking structure is connected to the rail, but banks and fintechs will eventually be building products on more capable payment infrastructure.
The NCFA Financial Innovation Map separates payments, treasury, embedded finance, business banking and open finance into different markets. Customers won't necessarily make the same distinction. A business wants to get paid, see its cash, pay suppliers, exchange currencies, borrow when necessary and keep the records straight.
RBC's scale still gives it advantages fintech specialists can't easily reproduce. It can combine deposits, lending capacity, treasury services, foreign exchange and large corporate relationships inside one regulated institution. For companies operating in both Canada and the U.S., making those services work smoothly together could be especially valuable.
But product-by-product competition changes what RBC has to defend. A client may keep its operating account while moving international payments to one provider, cards to another and treasury software somewhere else. Each piece that leaves takes fees, data and customer activity with it.
Fintechs don't necessarily need to replace RBC to win. Payments offer an early opening because businesses already want faster and more automated ways to move money. Open banking can make outside tools easier to connect. Better real-time infrastructure can widen the number of companies able to build around the payment itself.
RBC's Aug. 25 reorganization is about more than putting existing teams under common leadership. The bank is trying to make payments, cash, FX and financing work well enough together that businesses have fewer reasons to peel those services away one at a time.
As open banking makes financial data easier to share and real-time payments give businesses more ways to move money, can RBC keep more of the corporate relationship by connecting payments, cash, FX and financing, or will fintechs keep winning those services one product at a time?
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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August 25, 2026 | NCFA Insight | Digital Identity And Trust, Cybersecurity Fraud And Financial Crime, Risk Compliance And Regtech

On August 25, 2026, Vancouver based Fobi AI launched Fobi AltID 3.0, expanding its digital identity technology beyond credential verification. Fobi says the new platform can continuously authenticate a verified person, confirm authorization and use satellite positioning to add location and time to the decision. Financial services and customer identity checks are among its intended uses.
The existing Fobi digital identity wallet focuses on proving identity or age while limiting how much personal information needs to be shared. The new proposition goes further. Once someone has been verified, Fobi wants the credential to keep helping organizations decide whether the right person is still present and allowed to complete an action.
That addresses a real financial control problem. Verifying someone when an account is opened does not prove that the same person still controls a session months later, approved a particular payment or gave software permission to act for them. The gap gets wider as financial services automate more activity.
The launch names financial services as a target market but doesn't identify a bank, credit union, payment company or financial pilot. It also doesn't explain how an AI agent would be given, restricted or stripped of authority. Those are important boundaries between the product Fobi has launched and the larger trust infrastructure it wants to build.
This approach already has support in established digital identity practice. NIST continuous authentication guidance allows organizations to monitor characteristics such as behaviour, device information, location, timing and network activity after a user has logged in. Suspicious changes can trigger another identity check or end the session.
For financial firms, that can add protection without repeatedly asking customers to upload identity documents. An account can remain usable while the service watches for changes that make the current activity look less like the person who was originally authenticated.
Fobi adds location to that decision. The company says satellite positioning can connect a verified person with where and when an interaction occurs. Location can strengthen a risk decision, but Fobi has not disclosed the positioning technology, accuracy or protections against false location data. NIST also treats geolocation as one piece of a wider risk assessment rather than proof of identity on its own.
More monitoring also creates more privacy responsibility. Behaviour, devices and location can all reveal sensitive information. NIST requires those uses to be included in privacy risk assessments. Fobi says the personal information used for the original verification can be removed from the ongoing process, but further disclosure is needed to show what the platform continues to observe and retain.
Canada is dealing with the same combination of identity, consent and security as financial data becomes easier to share. The proposed Canada Open Banking and Consumer Driven Banking Rules bring authentication, consumer permission, security and evidence of authorization into the same operating framework. Persistent digital identity becomes more useful when those controls have to work after onboarding rather than only at the beginning of the relationship.
AI agents make the distinction between identity and authority easier to see. A bank may know who owns an account and still need to know whether software has permission to spend $500, change an instruction or continue acting tomorrow. AI agents with wallet access increases the urgency of defining what software can do, for how long and on whose authority.
Payment networks are already building controls around that problem. The Visa Trusted Agent Protocol lets merchants verify that an AI agent is legitimate and has permission to act for a customer. Visa's specifications also allow merchants to limit an agent to a specific purpose, such as browsing or making a payment.
Mastercard Verifiable Intent, developed with Google, records what a person authorized before an AI agent acts. Mastercard is designing it to work across wallets, platforms, payment networks and different agent systems.
The same convergence appears in the FCA Emerging Technology Horizon Scan 2026, where digital identity, AI agents, consumer control and programmable finance intersect. For fintechs, the opportunity goes beyond proving who somebody is toward proving what a person or piece of software is allowed to do.
Open digital credentials could make those permissions easier to carry between services. The W3C digital credential standard provides a common way to issue and verify secure, privacy respecting credentials. Fobi has not disclosed whether its new platform supports that standard or another open identity framework. Interoperability is necessary if the technology is expected to work across banks, fintechs, payment networks and other organizations rather than mainly inside Fobi's own products.
Fobi is also positioning post quantum security as part of the platform. Financial firms are already preparing for post quantum cryptography as new security standards replace encryption that future quantum computers could threaten. Fobi has not identified which algorithms or standards it uses, or provided independent technical validation. For now, quantum readiness remains a product claim that still needs evidence rather than the main reason to assess the launch.
The more immediate opportunity is digital trust. Identity can establish the person. Ongoing authentication can flag when something changes. Authorization can control what a person or AI agent is allowed to do. Those capabilities also connect digital identity, cybersecurity and automated finance across the Financial Innovation Map.
Fobi now has to prove that its technology can join those pieces in practice. A financial institution deployment, support for open credentials or documented controls for delegated authority would make the case much stronger. Until then, the launch is a credible expansion of Fobi's digital identity technology into a financial problem that is becoming harder as software gains more authority.
As AI agents gain access to payments, financial accounts and digital credentials, will proving identity once be enough, or will financial services need to keep verifying who is in control and exactly what they are allowed to 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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Aug 24, 2026

Growing a business does not always mean starting from scratch. While companies can expand by hiring more employees, developing new products or entering new markets organically, those strategies can take years to produce meaningful results. Mergers and acquisitions (M&A) give Canadian companies another option: acquire an established business, customer base, team or capability and accelerate growth.
For companies with the right strategy and financial position, an acquisition can accomplish in months what might otherwise take years to build internally.
That does not mean every acquisition creates value. Successful M&A requires careful planning, realistic valuations, thorough due diligence and a clear understanding of what the company hopes to accomplish after the transaction closes. When those pieces come together, however, mergers and acquisitions can become a powerful part of a Canadian company's long-term growth strategy.
Expanding into a new geographic market can be expensive and uncertain.
A company entering another province, for example, may need to establish a location, hire employees, build local relationships, advertise its services and develop an entirely new customer base. Even a successful expansion can take several years before the new operation becomes firmly established.
Acquiring an existing company can significantly shorten that process.
Instead of building everything from the ground up, the buyer may acquire an established brand, experienced employees, existing contracts, supplier relationships and a customer base that already generates revenue.
This can be particularly valuable in a country as geographically large as Canada. A company established in Alberta that wants to expand into British Columbia or Ontario may find that acquiring an existing operation provides a much more direct route into the market than opening a new location independently.
The acquisition still needs to make strategic and financial sense, but it can remove many of the barriers associated with entering an unfamiliar market.
Acquisitions can also help businesses increase their presence within markets where they already operate.
If two companies serve similar customers, combining them may create a larger organization with more revenue, greater resources and a stronger competitive position.
The benefits can go beyond simply combining two customer lists.
A larger company may have greater purchasing power with suppliers, more resources for marketing, stronger recruitment capabilities and the ability to spread administrative costs across a larger revenue base.
This is one reason M&A can be particularly attractive in fragmented industries where many small and mid-sized businesses compete for the same customers.
Rather than relying entirely on organic growth, a company may acquire competitors or complementary businesses over time and gradually build a larger market position.
Developing a new service internally requires time, expertise and investment.
A company may need to hire specialized employees, purchase equipment, develop systems and spend months or years building credibility in the new area.
Buying a business that already provides that service can offer a faster path.
Consider a construction company that wants to expand into a specialized trade, a technology company that needs a particular software capability or a professional services firm that wants to introduce an entirely new division. An acquisition can provide the people, systems and customer relationships required to add that offering immediately.
This strategy can also create opportunities for cross-selling.
The acquiring company may be able to introduce its existing services to the acquired company's customers while offering the acquired company's services to its own customer base.
When there is a strong fit between the two businesses, the combined organization can sometimes generate more revenue than the companies could have produced independently.
Finding qualified employees is a major challenge for many Canadian businesses.
In industries where specialized skills are difficult to recruit, M&A can effectively become a way of acquiring an established team.
Instead of hiring employees individually and building a department over time, a company may acquire a business that already has the technical knowledge, leadership and experience it needs.
The value of an acquisition may therefore extend well beyond physical assets or annual revenue.
Engineers, tradespeople, developers, sales teams, managers and other specialized employees can represent a significant part of the value being acquired.
Retaining those employees after closing is equally important. If key people leave immediately following the transaction, some of the strategic value of the acquisition can disappear with them.
For that reason, employee retention and integration should be considered before the deal is completed rather than treated as an issue to solve afterwards.
M&A can also be used to gain greater control over parts of a company's supply chain.
A manufacturer might acquire a supplier that produces an important component. A distributor could acquire a transportation or logistics operation. A company that relies heavily on an outside service provider might decide there is strategic value in bringing that capability in-house.
This type of acquisition is often referred to as vertical integration.
The goal is not necessarily to increase market share. Instead, the company may be trying to improve reliability, reduce costs, protect margins or gain greater control over an important part of its operations.
Recent disruptions to global supply chains have made this consideration increasingly important for companies that rely on specialized materials, manufacturing capacity or transportation networks.
Owning more of the supply chain can sometimes reduce exposure to outside disruptions, although it also means taking responsibility for operating another part of the business.
Two businesses operating separately often duplicate many expenses.
Each may have its own accounting department, office space, software subscriptions, management structure, insurance policies, marketing costs and administrative systems.
After an acquisition, some of those functions may be combined.
If the merged company can generate more revenue without increasing overhead at the same rate, profitability may improve.
Greater scale can also improve negotiating power. Larger organizations may be able to negotiate better terms with suppliers, lenders, technology providers and other vendors.
These efficiencies are commonly described as synergies, but they should be evaluated carefully. It is easy to assume that combining two companies will automatically reduce costs. In reality, integration itself can be expensive, and some operations may be more difficult to combine than expected.
The strongest deals are generally based on realistic efficiencies rather than aggressive assumptions about how much money will be saved.
M&A does not only benefit acquiring companies.
Canada has a significant number of privately owned and family-run businesses whose owners will eventually need to transition out of the company.
Some businesses can be transferred to family members or employees. Others may ultimately be sold to another company, management team, private equity group or individual buyer.
That creates opportunities on both sides of the transaction.
An established company can acquire a successful business rather than building a competing operation, while the seller receives a way to realize the value that has been created over many years.
Transactions can take several forms, including asset purchases, share purchases and management buyouts. The structure of the transaction can affect taxes, liabilities, financing and what the buyer actually acquires, which is why companies considering a deal often involve experienced M&A legal counsel early in the process rather than waiting until an agreement is ready to be signed.
Every growth strategy involves risk.
Launching a new product can fail. Opening a location in another province does not guarantee customers will follow. Building a new division may require significant investment before producing any revenue.
An acquisition provides something different: an operating business with a track record.
Buyers can examine financial statements, customer concentration, contracts, employees, assets and historical performance before deciding whether to proceed.
That does not eliminate risk. It simply provides more information about the business being acquired.
This is where due diligence becomes critical.
A company may look attractive based on revenue and profitability while still carrying risks related to contracts, taxes, litigation, customer concentration, intellectual property, employment obligations or debt.
Finding those issues before closing can affect the purchase price, deal structure or even the decision to proceed.
Closing an acquisition is not the end of an M&A strategy.
It is the beginning of the integration process.
Companies need to decide how systems will be combined, how employees will work together, whether brands will remain separate and how customers will be introduced to the new organization.
Culture can be just as important as finances.
Two profitable companies may struggle after a merger if their management styles, employee expectations or ways of working are fundamentally incompatible.
Successful Canadian companies therefore tend to approach acquisitions as more than financial transactions. The goal is not simply to buy revenue. It is to acquire something that makes the overall business stronger.
When the strategic fit is clear and the transaction is structured carefully, M&A can give companies access to new markets, customers, talent, technology and capabilities much faster than organic growth alone. For businesses looking at the next stage of expansion, acquiring the right company can be one of the most effective ways to get there.
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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August 24, 2026 | NCFA Insight | SME Finance And Business Banking, Cross Border Payments And FX, Competition And Market Structure, Public Sector Policy And Industrial Strategy

On August 24, 2026, Canada-U.S. trade negotiations had collapsed with new 50% U.S. tariffs on certain Canadian products already in force from August 22. President Donald Trump then threatened to raise new additional 50% tariffs on all Canadian cars, trucks and auto parts beginning January 1, 2027. Canada plans retaliatory tariffs on some U.S. goods beginning September 8.
The breakdown adds fresh urgency to Canada’s push to build more trade outside the U.S. The federal government is already tilting export support in that direction. CanExport SMEs has approximately $31 million available for 2026 and 2027, with about $27.9 million available for non-U.S. market activities and $3.1 million for U.S. projects. The program says the allocation supports Canada’s objective of doubling non-U.S. exports over the next decade.
For fintech, software and other digital firms, the problem is how quickly Canadian companies can turn access to a foreign market into customers and recurring revenue. Europe, the UK, Singapore, Southeast Asia, Latin America, Africa and the Middle East already have local firms and international competitors with licences, integrations, distribution, customer relationships and years of operating experience.
Statistics Canada reported $70.3 billion of digitally delivered commercial services exports in 2023. Large firms increased those exports by 20.1%, while small and medium sized firms recorded a 7.6% decline. Canadian multinationals increased commercial services exports outside the U.S. by 21%, compared with 6.6% growth to the U.S. They also accounted for 75% of the increase in Canadian commercial services exports to non-U.S. markets.
NCFA's earlier digital export comparison shows Singapore ahead of Canada despite operating from a far smaller domestic economy. Singapore ranked 11th globally in the underlying 2023 data at US$153 billion, compared with Canada in 16th place at US$118 billion.
Canada doesn't just need another list of markets to enter. It needs more startups and SMEs able to win non-U.S. customers faster and build businesses that can keep competing once they get there.
Canada already has substantial export infrastructure. The Trade Commissioner Service connects companies with customers, partners and investors. Canadian Technology Accelerators provide business development support, strategic guidance and local introductions. CanExport reduces part of the cost of entering new markets, while Export Development Canada's Trade Impact Program provides financing, working capital, guarantees and credit insurance to companies dealing with trade uncertainty.
The Canadian Technology Accelerator also produces measurable results. A Global Affairs study found participating firms had 27% higher revenue one year after completing the program than otherwise similar companies. The positive differences in revenue, assets and payroll became larger over the following years.
But Global Affairs could not determine how much the firms actually became more international because the available data were insufficient. That leaves the commercial outcome Canada now needs to understand. How many firms supported expansion into London, Singapore or another non-U.S. market are still generating recurring revenue there two, three or five years later?
Canadian fintech history shows why market entry alone is a weak measure. Wealthsimple built a UK business for almost five years and reached about 16,000 customers before selling the operation and concentrating on Canada. Clearco expanded into several overseas markets before transferring its international business to Outfund as ecommerce growth slowed and financing conditions deteriorated.
Neither case proves Canadian fintechs cannot compete abroad. They show how demanding a foreign operation becomes when a company has to fund customer acquisition, staff, compliance, banking relationships, treasury, tax and product adaptation while continuing to compete at home.
VoPay is using another model. The Vancouver founded payments infrastructure company established a global headquarters in Doha in January 2026 while keeping its Canadian operations active. Qatar is being built as a major hub for expansion across the Middle East, Africa and Southeast Asia, with more than 400 planned hires across engineering, technology, security, compliance, data and platform operations. The company didn't abandon Canada, but a meaningful part of its next stage of international capability is being built outside the country.
For Canada, it's not a simple win or loss. VoPay remains rooted in Canada while using Qatar as a launch point into several non-U.S. regions. Using a regional hub can also reduce expansion risk by putting management and operating capability closer to target markets while the Canadian core continues to run. The policy question is where the next layer of technical talent, management, partnerships and enterprise value accumulates as Canadian companies expand internationally.
The U.S. capital pull starts much earlier. NCFA's productive participation analysis examined the Canadian founder drain into the U.S. technology ecosystem. Barn Ventures describes a founder conveyor in which U.S. investors and programs recruit Canadian talent from high school and university through company formation and later scale.
Barn's analysis of the Dominion List found 517 U.S. based companies with a Canadian founder had raised about US$414 billion. It found 73% headquartered in California and 56% in San Francisco. Barn also found the number of listed companies founded each year rose sharply after 2022, while acknowledging that the Dominion List is a curated catalogue rather than a census.
Large U.S. capital markets and Silicon Valley's technology ecosystem will always attract ambitious Canadian founders. Those organizations are doing what successful capital markets do. The Canadian problem becomes more serious when founders also conclude they need to leave to get the capital, customers, infrastructure or operating environment required to build a major company. Canada can then lose value at both ends. Some promising founders build in the U.S. before substantial enterprise value accumulates here.
Also, Canada's main export programs generally engage firms after they have built meaningful operating capacity or market traction. By then, their products, sales models and management experience may already have been shaped largely around Canada and the U.S., while competitors in non-U.S. markets have spent years building customers and local experience. That is why promising firms should encounter non-U.S. customers, regulators and market requirements earlier, before they reach the stage where most formal export support begins.
Financial infrastructure can add to that timing gap. NCFA's financial infrastructure history shows Canadian fintechs developing while Real-Time Rail, wider payments access and regulated consumer driven banking arrived multiple years later than comparable infrastructure in several major fintech markets.
That does not explain Wealthsimple's UK exit, Clearco's retrenchment or any other individual company decision. It also affects what Canadian firms learn at home. Years of working with real time payments, portable financial data, modern APIs and digital onboarding build practical experience that can help when companies expand into other markets.
If Canadian firms gain important financial capabilities later, they also have less time to turn them into competitive advantages before entering non-U.S. markets.
The quickest response to Canada's urgent need to diversify beyond the U.S. is not more export information. Canada already has market intelligence, trade commissioners, financing programs and buyer introductions. The priority is to shorten the time between choosing a non-U.S. market and winning recurring revenue there. Canada can do many things differently to help achieve this.
1. Start earlier. Promising fintech and digital companies should encounter non-U.S. customers, regulators and financial institutions while their products are still developing. This doesn't mean sending every startup overseas. It means finding companies with strong technology and real differentiation early enough that requirements in several jurisdictions can influence what they build.
A company that learns to work across several payment systems, data rules, onboarding requirements and regulatory environments before reaching scale develops a different skill set from one encountering that complexity for the first time after years focused on Canada and the U.S.
2. Push buyer introductions toward commercial conversion. Canada already connects companies with qualified contacts, potential customers and partners. But they need to track and measure how consistently those introductions turn into technical evaluations, paid pilots, contracts and recurring revenue. Trade Commissioners in priority non-U.S. markets are well placed to identify concrete buyer needs and concentrate Canadian firms with relevant products against those opportunities.
That also creates better intelligence. If Canadian fintechs repeatedly lose the same types of opportunities in London, Singapore or São Paulo, Canada can determine whether the problem is product fit, pricing, licensing, procurement, financing or a capability competitors already possess.
3. Finance the period between market entry and recurring revenue. CanExport can provide up to $50,000 toward eligible international business development costs. EDC's Trade Impact Program has up to $5 billion of additional capacity over two years and supports working capital, guarantees, credit insurance and other financing tools. Those tools become more useful when they are organized around the economics of a specific foreign operation. Customer acquisition, regulatory work, FX, payments, local staff and management time can absorb capital before a new market supports itself.
For regulated fintechs, entering another country is like building a second company while the first keeps operating. Management needs to know what the foreign operation costs, what milestones justify further investment and when the economics no longer support continued expansion. That discipline protects the Canadian core while giving a promising foreign business enough runway to prove itself.
4. Measure whether companies win and stay. Canada should track the time from choosing a non-U.S. market to the first paying customer, how many assisted firms develop recurring revenue and how many are still operating there after two, three and five years.
The same scorecard can track local licences, staff and operating entities alongside the value that remains anchored in Canada. That includes Canadian employment, management functions, intellectual property, investment and capital recycled into the next generation of companies.
Those results would expose the bottlenecks quickly. A firm that receives many introductions but cannot win customers has a different problem from one that wins customers but cannot finance its expansion. A company delayed by licensing, payments or compliance needs a different response again.
Canada's non-U.S. diversification push became urgent much faster than companies can build international experience. The fastest response is therefore partly to start earlier.
Then judge success by whether Canadian companies are winning customers outside the U.S., staying in those markets and keeping enough of the resulting value anchored in Canada.
Canada now needs to diversify beyond the U.S. faster than many of its technology companies have historically expanded internationally. Can it help promising fintechs build non-U.S. customers and operating experience early enough to win against established competitors while keeping more of the resulting enterprise value anchored in Canada?
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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