Walmart majority-owned BNPL venture, One, wants to launch a service that shoppers could use at Walmart’s website and stores, as well as at other retailers
Surveying the current landscape of the financial sector in late 2022, it is hard to avoid the sense of an industry once again facing a severe squeeze.
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
Why You Should Never Invest Your Emergency Fund
Guest Post | Dec 20, 2022
Credit: Austin Distel via Unsplash
It’s a tough time for people who like to save. Thanks to a 40-year-high inflation rate, the money sitting in your emergency fund is rapidly losing value.
It’s simple math. Inflation has been hovering around 7% for some time now, while a basic savings account barely scrapes together 1% interest. That means the rising price of a latte, a week’s groceries, or a car outstrips any gains you make on your emergency fund by a long shot.
With your savings actively losing value, you might consider investing your emergency fund to maximize your growth potential. But should you? Generally, it’s a bad idea. Here’s why.
You Might Not Be Able to Access it Quickly Enough
The typical emergency fund is an urgent backup of savings to help you as soon as something goes south. If your dog gets hit by a car and needs immediate care, you can dip into this cash to cover your vet bills without delay.
You can withdraw cash from a personal savings account with relatively few hurdles or time delays, but the same can’t be said about all investments.
While some investments are nearly as liquid as savings, others are not. Depending on your investment, you may not be able to cash out as quickly as you expect.
Borrowing Comes with Interest and Finance Charges
When your investments are on hold, it can feel like you’re fielding an emergency without any savings at all. If your trip to the vet can’t wait, borrowing a line of credit may be the only way to save your pet.
The lenders at Fora Credit host simple and quick applications that may fast-track your access to a line of credit. If approved, you can draw against your limit and receive your money quickly.
A line of credit is a popular safety net used by millions of Canadians. However, like any personal loan, a line of credit comes with interest and finance charges. These extra fees mean you pay more this way than if you use basic savings.
You May Pay Taxes on Your Withdrawal
Usually, when you take out money from the ATM, you don’t have to worry about paying taxes on your withdrawal. At most, you may have to pay the earned interest on your account.
Cashing out your investments doesn’t go as smoothly from a tax perspective. If you sell at a higher price than what you initially paid, you’ll have to pay taxes on 50% of your capital gains.
While taxes aren’t the same as the interest and finance charges applied to a line of credit, they serve the same purpose. Capital gains tax adds to the cost of your emergency; you’ll pay more to access these funds than if you withdraw cash from a basic savings account.
You Could Lose a Lot of the Money You Save
Historically, stocks increase over the long term despite momentary ups and downs in the economy. But you have to endure these dips to capitalize on the eventual rise.
See: Do employees pay less taxes by exercising stock options pre-IPO?
Unfortunately, the nature of emergencies means you might have to cash out fast, long before you can see improvements over time. Worse yet, your investment may fall on the day you need to withdraw, meaning you have less money than what you started with.
Bottom Line
The stock market isn’t an ideal holding for your emergency fund. If you’re still worried about losing value on your savings, search for high-interest savings accounts instead. They earn more than the average basic account, so they’re a better defence against inflation.
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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TransUnion: US Credit-Card Loan Delinquencies to Rise in 2023
BNN Bloomberg | | Dec 14, 2022
Image: Pexels/Monstera
US credit-card and personal-loan delinquencies are likely to rise in 2023 to the highest in a dozen years, with lenders cutting back on originations as a potential recession looms.
- Forecast released Wednesday by credit-reporting firm TransUnion:
- Serious card delinquencies are expected to climb to 2.6% at the end of next year from 2.1% at the close of 2022.
- Delinquency rates for unsecured personal loans are also expected to gain, to 4.3% from 4.1%.
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See: Walmart-backed Fintech Startup to Launch BNPL Loans
- Credit-card originations are expected to slump 7.6% next year while still remaining higher than last year’s total. The projected dropoff would follow two years of aggressive loan growth, especially for credit cards and personal loans, and serious-delinquency rates close to pre-pandemic levels.
- Outside of credit cards and personal loans, another area of lending is seeing a dropoff in originations: mortgages. The Federal Reserve has been boosting interest rates in an attempt to damp inflation, increases that have made their way into home-loan costs. The average rate for a 30-year, fixed loan surged past 7% this year — the first time it’s broken that level in two decades.
- Opportunity for lenders is in auto-loan originations, TransUnion said, with an expected growth of 6% across all borrower risk tiers in the fourth quarter of next year.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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6 Tips For Choosing The Right Finance Option For A Business
Dec 13, 2022
Image: Pexels/Pixabay
Finances are the greatest adventure for every entrepreneur and business owner out there, and for good reason. It brings so many challenges and doubts, such as whether to pursue investors or not, take out loans, risk more, or bootstrap your dreams, but it just does not end there. Profitable times will make small business owners wonder if they need more funding; growing your business demands new places and equipment, and big sales can create cash shortages while you are waiting for the invoice payments.
On the other hand, there are also periods of shortages when sales are down, seasonality has affected your business, or maybe you need to do equipment updates. If you have noticed that your business needs financing, then you need to take it one step at a time and see if you really need funding based on your current situation, decide what the best type of funding is for you, and secure your growth. With this in mind, we have prepared a couple of tips that can help you choose the best financial option.
Why Do You Need Financing?
The first question that you need to ask yourself before choosing any financing option is, “What do we need financing for?” There are countless reasons for financing. It could be anything from expanding your capacity to fulfill orders to hiring more people and improving your marketing strategy. Also, there can be some more modest reasons, such as redesigning your website or replacing some items in your inventory. Some more dramatic financing options can cover the temporary cash-flow gap or even clean out the debt that has been burdening your books for quite some time. You need to be realistic and observe the situation. If you need financing to constantly cover the payroll or to even pay the overhead costs, then you do not need financing to take you out of the crisis; you need to reconsider your entire business plan and spot the weak points.
How Is the Business Going?
One of the best determinants of whether or not you need financing is the state of your business. If you are applying for a loan or investment, the majority of lenders or investors will look at your time in business. Not to mention bridging loan brokers, who can help you connect with the best lenders and guide you through the bridging loan application process so that you have a better chance of winning. According to reports, the longer you have been in business, the better your chances of receiving a loan or investment. Unfortunately, startups have a much harder time finding larger financial injections. The revenue is the second thing they observe. Most lenders will have minimal revenue requirements, but it is safe to show that your business can profit and generate revenues. Last but not least are the financial documents. You will need to share your tax returns, business plan, and bank statement.
Observe Your Credit History
The better your credit score, the better the terms of the loan you will receive from the lender. Truth be told, some lenders have minimal personal credit scores, most typically above 600, but an elite score can say a lot and tell lenders that you are indeed a good bet to pay your loan back. This means you can be charged a lower interest rate and that they can give you longer repayment terms.
What You Can Actually Afford
When seeking financing, you need to have a plan or strategy on how you will complete the project and reach the goal that can benefit you. “As much as possible” is not a monetary amount you need and is a catch that has ruined a lot of business owners. You need to be realistic and observe your current state to see how much you can afford to be funded. Taking into consideration your cash flow and all of the requirements will help you determine how great your loan should be.
Image: Pexels/Pixabay
Debt Vs Equity?
The most popular form of financing for small businesses is debt financing, which is a loan. You can also consider equity financing, which is when you sell a portion of your company's stock to someone in exchange for investment. Financially, there are many differences between debt and equity. One of the most important is that the first round of equity funding will not be appropriate for some smaller financial needs.
The Best Types of Financing Options
Before we set all of this aside and get to choose the best financing option, you need to be aware that there are many different options in the first place. Term loans are some of them, and they include those from banks, online lenders, or non-profit lenders, which can provide you with a lump sum of money that you can pay back in installments. Some other financial options include SBA loans, lines of credit, microloans, and others.
See: Debt vs. Equity Financing: Pros And Cons For Entrepreneurs
Business financing is a huge step, and it should be taken seriously and with caution. Before you even make a final decision and receive additional funding, you need to reconsider everything about your business, starting with whether you really need financing in the first place.
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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Walmart-backed Fintech Startup to Launch BNPL Loans
CNBC | Melissa Repko | Dec 9, 2022
Walmart majority-owned BNPL venture, One, wants to launch a service that shoppers could use at Walmart’s website and stores, as well as at other retailers
- One is breaking into the growing payment services category as monthly retail sales numbers continue to rise, but some Americans show signs of strain from inflation driving up the prices of food, housing and more. Those stretched wallets could fuel consumers’ interest in paying for purchases in other ways. Buy now, pay later allows customers to gradually pay off a purchase with fixed monthly payments, along with interest.
- Walmart already offers a buy now, pay later option to customers through Affirm. Shares of buy now, pay later firm Affirm fell on Friday. Walmart declined to comment.
- Walmart, the country’s largest private employer and its biggest grocer, has long offered financial services at many of its stores. It has a money center where customers can go for banking-related services, such as printing checks, sending or receiving money or loading prepaid debit cards. Many of those services are geared toward families that have lower incomes, do not have relationships with a traditional bank or do not have the credit history to qualify for credit cards.
See: Walmart to launch fintech startup with partner Ribbit Capital
- Ribbit Capital: Last year, Walmart went a step further by creating and backing a fintech startup with Ribbit Capital, one of the investment firms behind Robinhood.
- The fintech startup is independent, but Walmart has the biggest stake. Its board also includes several top executives, including Walmart U.S. CEO John Furner and chief financial officer John David Rainey. Rainey, Walmart’s new CFO, recently joined the board and is the former CFO of PayPal.
- Since Walmart created and backed the startup in early 2021, it has gotten bigger. It acquired two other fintech startups, One and Even, for an undisclosed amount early this year. It adopted the name One and aims to be an all-in-one app where consumers can manage their money.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Propel Holdings Launches Inclusive Canadian Credit Product, Fora
Propel Holdings Inc. (TSX: PRL), a Fintech company dedicated to credit inclusion, announced that it has entered the Canadian market with its new brand, Fora CreditTM (Fora) – “a convenient online credit solution for underserved Canadian consumers.”
- Currently available in Alberta and Ontario and Propel has plans to roll out Fora into additional provinces across the country in the coming months.”
- To support the growth of this new Canadian portfolio, Propel announced it has “secured a revolving credit facility with an aggregate initial capacity of approximately C$26 million shared between senior lender CWB Maxium Financial Inc., a part of the Canadian Western Bank Financial Group of companies (CWB), and junior lender Bastion Management and affiliates thereof (Bastion), an existing lender to Propel.”
See: What You Need to Know About Employee Loans in Down Round Times
Key features of Fora include:
- A flexible line of credit product that allows customers to draw from their available credit as needed;
- Simple online application that can be completed in minutes at www.foracredit.ca from any desktop, tablet or mobile device;
- Quick credit decisions using Propel’s proprietary AI algorithms and technology;
- Seamless online customer experience, including an easy-to-use self-service portal that customers can access 24/7 to manage their line of credit; and
- No origination fees, no annual fees, no late fees and no pre-payment penalties.
Clive Kinross, Propel’s Chief Executive Officer:
Consumers across the United States have trusted Propel and its operating brands for more than a decade to deliver flexible credit solutions and we are delighted to bring our offering home to Canadians. We fully expect that Fora will become a leading solution for the 25 per cent of Canadians who are unable to access credit through traditional financial institutions.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The Latest Innovative Trends in FinTech
Oct 31, 2022
Image: Unsplash/Skye Studios
The Fintech industry has been home to some of the most interesting innovations over the past few years, with startups leading the way and disrupting traditional financial services. FinTech has been steadily transforming the global economy, allowing the bankless to gain access to banking services and offering new ways for consumers to get more out of their money.
Innovation has been key to change in this sector, bringing new technology and ideas to the table and changing how people do business. Innovation is a powerful tool for implementing new ideas and leveraging resources to create a competitive advantage. You can learn more about how it works with a corporate strategy course, which will give you the tools you need to drive innovation and boost your business’ performance.
Although we’ve seen many big changes in the FinTech industry, there is still room for growth. The global market for financial technology is predicted to grow at a compound annual growth rate of 26.2% through 2030. These are some of the latest innovative trends that can help this sector continue to grow.
Buy Now Pay Later
Buy now pay later (BNPL) is hardly a new concept, but recent innovations have led to it taking off all over the world. Services such as ClearPay and Klarna offer consumers the chance to pay across interest-free instalments. Giving consumers more freedom over when they pay has proven to be a major hit, with a growing number of online retailers now offering this service.
BNPL companies might not charge interest on instalments, but they do charge if the instalments aren’t paid in time. Some have criticised these companies, saying they have the potential to trap the financially illiterate in debt. And when BNPL is offered for things like takeaways, it’s easy to see why people would think this.
In reality, it’s much more like a credit card. Only anyone can use it. Future innovations to BNPL services could include offering better guidelines to consumers on the risks involved in paying on credit and linking a bank account to make direct debits.
FinTech Super Apps
With the help of a payment system, super apps combine many programmes into a single user interface to offer an ecosystem of completely integrated third-party services. The idea is not brand-new. It’s also incredibly prevalent in apps throughout Asia and Latin America, and the concept is becoming more common in the West too.
Any existing digital platform with a sizable user base that has a shared lifestyle or business goal could benefit from developing a super app. It allows the organisation to combine the end user's existing data with fresh insights gleaned from a variety of behaviours and interests. Super apps have a lot of applications within the FinTech industry and could be part of the next wave of innovative ideas.
See: CPAs Are Seeing Fintech Innovation Across Many Canadian Provinces
The emergence of these apps could result in cryptocurrency trading while maintaining multiple savings accounts for fintech. This could also include quick and cost-free account opening alternatives, as well as cross-border payment capabilities and multi-currency possibilities. Already, platforms such as Monzo, Revolut and Starling are approaching Super app territory, offering several different services in one.
Mainstream Adoption of Cryptocurrency
Cryptocurrency has steadily seen increased adoption around the world since it first appeared in 2010. Every few years, the market grows, and hype builds around these digital assets. Although many dismissed them as a fad initially, they’ve become more widespread, and the potential use cases and applications are extremely interesting.
In 2021, El Salvador became the first country to accept Bitcoin as legal tender, sparking a lot of debate. Since then, no other countries have followed, but El Salvador offers potential insight into a world that fully adopts cryptocurrency payments.
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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HSF: 6th Global Bank Review 2022 | Banking on People
HSF | Oct 20, 2022
Surveying the current landscape of the financial sector in late 2022, it is hard to avoid the sense of an industry once again facing a severe squeeze.
- Low carbon squeeze: Global finance is currently facing mounting pressure to invest long-term for a low-carbon, high-tech world in the decades to come, while bracing itself for intense economic headwinds and volatility on the immediate horizon.
- Attracting and motivating talent challenges: How to attract and motivate talent is an increasingly vexed question, as a hard-nosed, comp-driven ethos once taken for granted among bankers has given way to more amorphous motivations for aspiring graduates.
See: CB Insights Report: The State Of Fintech: Q3 2022
- Employees are looking for: Even before the shift to a hybrid working environment reset the business model of the industry, junior bankers were showing signs of focusing on a wider range of factors like work/life balance, good corporate citizenship, sustainability and personal development.
- Job cuts? Some predict that a looming round of job cuts amid a rapidly cooling global economy will bring workers back to their desks, but that is far from certain; given the greater competition from other industries and sectors, an overflow of willing talent can no longer be taken for granted.
- In a fiercely competitive market which is clearly feeling the impact of disruptive challengers targeting the retail banking space, rising investment in technology is becoming mere price-of-entry.
- Lenders are expected to reach customers via new routes, such as social media and deploy increasingly sophisticated tools for advanced automation and AI, just to keep up with peers.
- Such tactics also bring increased scrutiny from regulators intent on ensuring consumers are marketed to as fairly on TikTok as via their local branch, and that AI treats customers equally, rather than entrenching human-built bias. The more tech lenders deploy, the more complexities and online vulnerabilities fraudsters will attempt to exploit.
See: Fintech ‘Ethical Duty’ to Help Combat Cost of Living Crisis
- Higher ethical and social expectations: wider challenge for banks is that policy makers, regulators and society more generally remain determined to impose ever-higher ethical and social expectations on the industry. Meeting these demands will impose a higher cost of doing business on banks.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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