Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: P2P, Lending, Digital Bonds, BNPL, Private Credit
Blockchain Smart Bonds
Coindesk | Anthony Bufinsky | Apr 19, 2023
Image: Unsplash/Shubham Dhage
Smart bonds can transform the life cycle of debt instruments and have the potential to disrupt debt capital markets.
- Smart bonds – digital bonds stored on a distributed ledger – are an emerging application of the technology wherein each bond has a unique digital signature that verifies ownership and eliminates the need for physical certificates. Blockchain ensures all transactions are recorded and stored permanently, making it difficult for anyone to steal or alter the bond's value without detection.
- This digitalization of bonds may enhance process efficiencies and liquidity, reduce costs, simplify and democratize capital raising for issuers, and create a broader investable landscape.
Citi Report: Blockchain’s Next Billion Users: Money, Tokens, Games
- Benefits: Smart bonds can also significantly reduce the need for intermediaries (using a tokenization platform), such as banks, brokers, and clearinghouses thus eliminating (reducing) associated fees and the overall cost of bond management services.
- Smart contracts can be coded with bond details and stored on blockchain, providing transparency and authenticity.
- Smart bonds can be allocated to investors and payment is automatically deducted, settling the transaction simultaneously for all investors.
- Smart contracts can automate clearing and settlement processes, reducing the time required to complete tasks and the likelihood of a price change.
- Smart contracts can automate interest payments and return of principal at maturity, reducing counterparty risk and ensuring timely payments.
- Perceived risk of security breaches for smart bonds?
- Unlike cryptocurrencies, smart bonds are not bearer assets and ownership is registered on the blockchain.
- Fraudulent transfers of smart bonds can be invalidated, and ownership may be recorded with transfer agents.
- Transfer agents decrease decentralization but help safeguard customer assets by facilitating freezing, cancellation or replacement of tokens in case of a mistake or attack.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The Rise of Impact Investing in Tech Startups: Aligning Profit with Purpose
April 25, 2023
Image: Pexels/Marek Levak
The world of investing has evolved remarkably in the past few years. One of the most notable trends is the rise of impact investing in tech startups. This approach combines the traditional focus on financial returns with a commitment to social and environmental impact. As a result, investors are increasingly looking to support companies that align profit with purpose. In this article, we will explore the factors driving this trend, as well as how it is transforming the tech startup landscape.
Growing Awareness of Global Challenges:
One of the main drivers behind the growth of impact investing is the increasing awareness of global challenges, such as climate change, poverty, and inequality. Investors have started to recognize that financial success alone is not enough and that businesses must also contribute positively to society and the environment. As a result, many investors are seeking out tech startups that develop innovative solutions to these challenges, believing that these companies will generate both financial and societal returns.
Millennial Investors Leading The Charge:
Millennials are playing a significant role in the rise of impact investing, especially in Canada. As they inherit wealth from previous generations and gain more influence in the financial world, their values and priorities reshape investment strategies. Studies show that millennials are more likely than older generations to prioritize social and environmental issues when making investment decisions. Consequently, their interest in tech startups that align profit with purpose fuels the growth of impact investing.
Integration of ESG factors:
Environmental, Social, and Governance (ESG) factors are becoming increasingly important for investors. Many are now integrating these factors into their investment strategies to manage risk and identify opportunities for long-term value creation. Tech startups that demonstrate strong ESG performance are, therefore, more likely to attract impact investors looking for both financial returns and positive societal impact.
An Unconventional Example of Impact Investing:
Title loans, a type of secured loan where borrowers use their vehicle title as collateral, have gained a bad reputation for their high-interest rates and predatory lending practices. However, some impact investors are exploring opportunities to transform the loan titles industry by supporting tech startups that promote responsible lending practices and financial inclusion. These startups aim to provide affordable, transparent, and accessible loan options to underserved communities, aligning profit with purpose and contributing to social impact.
Innovative Business Models and Technologies:
Another factor that drives the rise of impact investing is the emergence of innovative business models and technologies in the tech startup space. These companies leverage cutting-edge solutions like artificial intelligence, blockchain, and renewable energy to tackle pressing social and environmental issues. By investing in these startups, impact investors can support the development and scaling of technologies that have the potential to transform industries and create lasting positive change.
Measuring Impact:
Measuring the social and environmental impact of investments has historically been challenging. However, the development of standardized frameworks and metrics, such as the Global Impact Investing Network's (GIIN) IRIS+ system, has made it easier for investors to track and compare the impact of their investments. It increased transparency and accountability, further encouraging the growth of impact investing in tech startups.
Conclusion:
The rise of impact investing in tech startups reflects a growing recognition of the importance of aligning profit with purpose. Driven by increasing awareness of global challenges, millennial investors, ESG integration, and innovative business models, this trend is transforming the tech startup landscape.
FFCON23 On-demand: Regenerate Earth, John Ellison, ReFi Source
As more investors embrace impact investing, they are not only supporting the development of solutions to pressing social and environmental issues but also paving the way for a more sustainable and inclusive future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Partner Webinar Apr 19: Data and AI driving diversity in SME Lending
SME Finance Forum | April 18, 2023
Considerable cultural, economic, and regulatory differences exist around the world that affect accessibility to capital and in particular the opportunity for women and those underserved to launch and grow thriving businesses. Therefore, it should be no surprise that effective solutions to overcome these challenges are best formulated with particular attention to these differences that are unique to each country, lender, borrowers, and loan type.
While the challenges may be unique for each lender, there is good news. The process for diagnosis and treatment is highly codified, scientific, reproducible to virtually any market and lender in a way that delivers high performance and regulatory compliance.
Webinar
Date: April 19, 2023
Time: 9:00 to 10:00 EDT
Register
See: Board Diversity and Inclusion: 50-30 Challenge
Moderator and speakers:
- Elaine MacEachern, Sr. Financial Sector Specialist at World Bank Group
- Patrick Reily, CEO - Uplinq Financial Technologies
- Mario Schlener, Leader Financial Services Risk Management (FSRM) Practice and Enterprise Risk Strategy Canada and Global FS Risk Technology/Alliance/Innovation Lead - Ernst & Young
- Ayo Olojede, Group Head, Emerging Businesses - Access Bank
- Mehi Mirpourian, Data Science Manager - Women's World Banking
More information --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Empowering the Next Iteration of Consumer Finance
Medium, JC Bahr-de Stefano | Mar 31, 2023
Building the next decade of consumer finance
- Last week in Las Vegas, I had the great pleasure of moderating a panel at Fintech Meetup re: building the next decade of consumer finance by leveraging real-time data and cash flow forecasting. I wanted to share some of the key insights shared during the session by our amazing panelists, Jose Bethancourt (Co-Founder of Method Financial), Ema Rouf (Co-Founder of Pave.dev), and Zane Salim (Co-Founder of Atlas)!
See: CFPB Issues a Request For Information on “Data brokers”
- 1/ Alternative data augments FICO across the entire credit spectrum — this is about FICO+ NOT replacing FICO.
- The problem of credit invisibility in the US is growing, with an estimated 28 million adult Americans credit invisible and 21 million unscorable. To make decisions about these consumers and offer them financial services and products, alternative data, such as income and employment, can be used. This data can also help lenders make better risk-weighted decisions for many segments of users, not just credit invisible ones, and is particularly important during periods of economic stress.
- 2/ Real time data powers better products and outcomes by enabling greater access and improving the quality of risk management.
- Credit bureaus can take up to 45 days to report data, so lenders may not have the most up-to-date information on a borrower's behavior. Atlas, a payroll-powered credit card, uses real-time data to monitor users' financial health and adjust credit limits, allowing for better risk management and loss prevention.
- 3/ The movement to make alternative data mainstream has to happen outside of the credit bureaus.
- Credit reports do not provide a complete view of a consumer's debt obligations as there is a lot of data that is not furnished to the credit bureaus, including most BNPL loans. However, companies like Method collect data from over 60k institutions to provide lenders with a more comprehensive view of a person's debt obligations, combining data from credit bureaus with financial institutions' core banking systems.
See: Canada’s Open Banking Journey: Interview with Abe Karar, Chief Product Officer, Fintech Galaxy
- 4/ Recent innovation in infrastructure has made this data far more accessible than it has been in the past.
- Recent advancements in infrastructure and tools have made it easier to access and enrich the data. Companies such as Method and Pave are providing infrastructure that helps fintechs and banks adopt and use this data, leading to accelerated adoption.
- 5/ Mature lenders don’t want scores, they want raw data or attributes.
- Understanding the data is crucial for them to explain it to originating banks or capital providers, and the use of attribute generation can speed up model development. Pave is an example of a company offering transaction cleaning, enrichment, and their own attributes toolbox for lenders to use in their proprietary models.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Beware of These 5 Unexpected Expenses
Guest Post | March 30, 2023
Image: Pexels/Monstera
Unexpected expenses may be hard to predict, but there’s a good chance you’ll have to deal with a surprise bill or repair eventually. With the odds against you, it’s important you budget for these surprises in advance. Otherwise, the unexpected can be a lot harder to handle.
Budgeting for the Unexpected in Mind
Every budget should cover the basics — rent, food, medical expenses, and bills — but don’t forget about savings. An emergency fund should take a portion of each budget’s cash.
By putting a little bit of money aside for the unexpected each month, you can eventually grow a fund large enough to take on life’s biggest surprises.
For extra security, some people pair their emergency funds with lines of credit. If approved for a line of credit, you may get extra cash on standby as a backup to your savings. You can dip into your line of credit any time your emergency fund falls short of the unexpected.
Armed with an emergency fund and a line of credit, you’ll have a better chance of being prepared for anything — even if you don’t see it coming.
5 Common Unexpected Expenses
Here are five of the biggest, unexpected expenses you need to think about.
1. Car Trouble
All machines break down eventually, including your car. A gasket can blow, your transmission can fail, or you can puncture a tire driving over a sharp bolt. These unexpected issues require repairs if you rely on your vehicle to get you places.
You can use your emergency fund to cover these surprise issues, so you aren’t stuck without a vehicle waiting to gather the funds together.
2. Surge Charges
Sometimes, your regular bills can throw you for a loop. You can accidentally accrue roaming charges on your cell phone bill, or you can use more water than usual if you’re dealing with a significant leak in your plumbing system.
While you should always budget for the usual bills, an emergency fund is there to handle sudden, one-time surges on rates.
3. Medical or Dental Fees
If you don’t have health insurance, unexpected doctor visits, tests, and medication can be hard to handle. Unfortunately, almost everyone gets sick or injures themselves eventually. That’s why an emergency fund or line of credit is critical for your health. You won’t have to wait for medical or dental attention and put your life at risk.
4. Pet Emergencies
Pets are just like people; they can run into health issues, too. Your cat can suffer from an impacted tooth, or your dog can accidentally eat chocolate. Rushing your four-legged family member to the vet is a no-brainer; you would do anything to help them.
Unfortunately, vet care can be just as expensive as human healthcare, so you’ll want an emergency fund to help your pet.
5. Household Repairs
Lastly, your home may need sudden repairs that you can’t predict. Your roof can spring a leak after a long, wet spring, or your water heater may stop working. Affording a roofer or water heater specialist is a lot easier when you have an emergency fund and line of credit at your disposal.
Be Prepared, Even if You Can’t Predict the Future
Unpredictable, yet unavoidable, expenses can happen to anyone, at any time. Factor in monthly savings for your emergency fund to handle these surprises.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Cash Advance Online Same Day: An Overview of Available Loan Options
Guest post | Feb 22, 2023
Image: Unsplash/Bench Accounting
When unexpected expenses or financial emergencies arise, having access to quick cash can be a lifesaver. Luckily, there are several appealing options for obtaining cash advance online within the same day the loan is approved.
In this article, we'll take a look at the different types of loans that offer same-day funding, including cash advance online, and what to expect when applying for these types of loans.
What are Same-Day Loans?
To understand the definition of same-day loans https://www.instantcashtime.com/ , it's important to understand the general steps involved in getting a loan, which include the application, approval, and funding. The time it takes for each step varies depending on the lender.
Same-day loans are a type of lending where the entire process, from application to funding, is completed within 24 hours. This is in contrast to traditional sources of financing, which can take several days or even weeks to be approved and funded.
Loan Types With Same-Day Funding
Different loan types can have varying processing times and not all lenders offer the same options, but some common loan types that are often advertised as having same-day funding include: advances, payday loans, personal loans, title loans, and lines of credit.
Cash Advances
A cash advance is a short-term loan that allows you to borrow a small amount of money quickly, usually for unexpected expenses or to bridge the gap between paychecks.
The process of obtaining a cash advance online with same-day funding is usually simple. Most providers will typically ask for basic info such as your income, employment status, and bank account details. Once the application is granted, the funds will be deposited electronically into your bank account, typically within a few hours.
Payday Loans
These are short-term sources of financing that are usually designed for small amounts – typically $500 or less – and have high-interest rates.
The application process for payday loans is usually quick and simple, with most lenders requiring only proof of income and a checking account. The funds can be deposited into the borrower's account the same day, making it a convenient option for those facing unexpected expenses or financial emergencies.
Personal Loans
These are a type of loan that can be used for various purposes, such as consolidating debt, paying for a vacation, or making home improvements. They are unsecured loans, meaning that no collateral is required. Applying for a personal loan online is a quick process, and if approved, the funds can be deposited into the borrower's account the same day.
Title Loans
Title loans are a type of secured option that uses the borrower's vehicle as collateral. They are usually for small amounts and have high-interest rates https://www.instantcashtime.com/1-hour-loans/ . The application process is usually fast and customers can often receive the funds the same day. However, if the one is unable to repay the loan on the due date, they may lose their collateral pledge.
Line of Credit
A line of credit is a type of revolving credit account that has a credit limit. Borrowers can access the funds as and when they need it, and pay interest only on the amount they borrow.
The application process for line of credit loans is usually fast, and if approved, the funds can be transferred to the borrower's account in a matter of hours to a day. However, borrowers should exercise caution in not borrowing more than they can afford to repay, as interest can accumulate quickly.
Timeframe Pitfalls of Same-Day Funding
It can be disappointing to expect one outcome and receive another. When it comes to online cash advances with same-day funding, there are also potential pitfalls that may affect the waiting time. Without any doubt, it is beneficial to be aware of these potential issues in order to address them.
Small-dollar Loan Repayment
The main pitfall with small-dollar loans when it comes to the timeframe is the high APRs and short repayment period. Borrowers are often required to repay the principal, including interest and fees, within a few weeks, which can be difficult for some to manage. This can lead to a cycle of debt and make it hard to repay the loan on time. Therefore, small-dollar loans should be used with caution and only as a last resort.
Personal Loan Application
A potential pitfall of personal loans is that individuals with poor credit may have a more difficult time getting approved and may be subject to higher interest rates. Furthermore, certain lenders may require additional documentation or credit check, which can slow down the approval process and delay the funding process for several working days.
See: TransUnion: US Credit-Card Loan Delinquencies to Rise in 2023
Offline Loan Approval
Offline financial institutions, such as credit unions, can also be a source of loans. However, it's worth noting that the process of obtaining a loan may not be as fast as with online lenders. For instance, when applying for a personal loan offline, the approval process can take up to three working days, and the funding process can take an additional three or more working days.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Putting it Into Perspective: Buy Now, Pay Later and Consumer Debt
CATO Institute | Nicholas Anthony | Feb 17, 2023
Image: Pexels/Ivan Samkov
Some people have been wondering how the philosophy of “buy now, pay later” might fit into the story of household debt being currently at record highs
- Last fall, Senator Mark Warner (D‑VA) likened the rise of buy now, pay later (and other fintech) services to the lead‐up to the financial crisis. However, when considered alongside the data that is available, it appears clear that there is no such risk.
- Current consumer debt landscape: First, let’s consider the current landscape. The Federal Reserve reported that housing debt and non‐housing debt in the fourth quarter of 2022 reached $12.26 trillion and $4.64 trillion, respectively.
- When broken down further, it becomes clear this debt is primarily concentrated within mortgages (71 percent of all consumer debt), student loans (9 percent), and auto loans (9 percent).
- While credit card debt made up just 6% of the total share of consumer debt, it is notable that credit card debt alone increased 20% since this time last year. This Finance Research puts things into perspective.
See: UK Publishes Draft Legislation to Regulate BNPL Credit
- BNPL debt was just 0.04% of consumer debt in 2021: The Consumer Financial Protection Bureau (CFPB) reported the five largest buy now, pay later companies had facilitated $24.2 billion in spending in 2021.
- While it’s possible some of this spending was linked to credit cards, let’s assume for simplicity that this represents an isolated layer of debt. Under that assumption, if we compare these numbers with the Federal Reserve’s reports, it becomes abundantly clear how small the industry still is: buy now, pay later would have accounted for just 0.04% of consumer debt in 2021
- For additional context, the Federal Reserve reports there are 500 million open credit accounts, and 191 million Americans have at least one credit card. In fact, that same Federal Reserve report found that 43 million Americans have five or more cards. In contrast, it’s estimated that only 93 million Americans used buy now, pay later in 2022.
- Conclusion: Companies working in this space can certainly help their industry to be better understood during this evolution by being transparent and providing accessible data. However, that is not to say the government should step in to force this transparency. Considering the data available already shows there is little to be concerned about in terms of rising debt, using legislative or regulatory force to mandate disclosures from buy now, pay later companies does not seem justified.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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