Category Archives: NCFA Blog

NCFA’s Fintech Confidential Issue 3 (Dec 2020) is here! Happy Holidays…

NCFA | Craig Asano | Dec 17, 2020

Fintech Confidential issue 3 cover - NCFA's Fintech Confidential Issue 3 (Dec 2020) is here!  Happy Holidays...Dear Global Fintech & Funding Communities,

The National Crowdfunding & Fintech Association of Canada (NCFA) and partners are excited to present Vol. 1 Issue 3, FINTECH CONFIDENTIAL, a digital pop-up of the 6th annual 2020 Fintech & Financing Conference and Expo (FFCON20) held virtually across themed 8 weeks from July 9 to August 27 and co-hosted by NCFA and Toronto Finance International.

The main theme of FFCON20 was “RISE”, reflecting the joint efforts of the two associations, NCFA and TFI, to build and increase the success and sustainability of Canada’s fintech and financial sector.   There were many moving parts this year and a brand-new digital format with the event bringing together 100+ thought leaders, 50+ partners, and more than 500 attendees, 2 challenges and the inaugural Fintech Draft pitching and demo competitions.  Congratulations to the winners:  SolidBlock and MazumaGo (formerly DivDot)!  Thanks to all the partners, speakers, attendees, volunteers and the entire organizing team for making FFCON20 an impactful and amazing online experience for Canada’s fintech and funding community.

Despite a challenging year for many, the fintech industry continues to demonstrate its resilience, creative capacity, and thirst to create valuable partnerships and financial products/services that benefit millions of consumers, small businesses, and the economy.  As covid accelerates the adoption of digital trends, it has spotlighted the social and economic gaps that saw fintechs pivot to work on supportive solutions from mobilizing low-cost capital campaigns to personal finance apps that help users better manage their finances, spending, savings, and investment habits.

NCFA Sign up for our newsletter - NCFA's Fintech Confidential Issue 3 (Dec 2020) is here!  Happy Holidays...

Digital identity, CBDCs (and digital assets), AI, and sustainable finance are all taking off as governments and industry work to collaborate on overhauling Canada’s digital infrastructure, data rights, privacy and standards that will set the stage for years to come.  The second round of open banking consultations that were delayed due to the pandemic were suddenly announced in November with many organizations, fintechs and incumbent banks coming together to discuss the scope, governance, implementation, and accreditation of a made in Canada OB solution.  We urge the OB committee to remain laser-focused on consumer interests while looking globally for insights to implement a principles-based, inclusive, broad-scoped and competitive framework as swiftly as possible.

We hope you enjoy this issue of Fintech Confidential magazine – it certainly makes for great holiday reading!  While everyone relentlessly strives to achieve success in 2021, we encourage you to bring in the new year with good health and to be mindful that we are all in this together, and to help others in your community more than ever before.  Peace, happiness, and best wishes for an incredible year and journey ahead.

All the best
Craig Asano
Founder and CEO
NCFA Canada

Check out the magazine --> here

 


NCFA Jan 2018 resize - NCFA's Fintech Confidential Issue 3 (Dec 2020) is here!  Happy Holidays... 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

Latest news - NCFA's Fintech Confidential Issue 3 (Dec 2020) is here!  Happy Holidays...FF Logo 400 v3 - NCFA's Fintech Confidential Issue 3 (Dec 2020) is here!  Happy Holidays...community social impact - NCFA's Fintech Confidential Issue 3 (Dec 2020) is here!  Happy Holidays...

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - NCFA's Fintech Confidential Issue 3 (Dec 2020) is here!  Happy Holidays...



NCFA COVID 19 letter to government to support Fintechs and SMEs - NCFA's Fintech Confidential Issue 3 (Dec 2020) is here!  Happy Holidays...

NCFA Newsletter subscribe600 - NCFA's Fintech Confidential Issue 3 (Dec 2020) is here!  Happy Holidays...

 

December 2020 Magazine: NCFA Fintech Confidential (Vol 1. Issue 3)


NCFA Jan 2018 resize - December 2020 Magazine: NCFA Fintech Confidential (Vol 1. Issue 3) 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

Latest news - December 2020 Magazine: NCFA Fintech Confidential (Vol 1. Issue 3)FF Logo 400 v3 - December 2020 Magazine: NCFA Fintech Confidential (Vol 1. Issue 3)community social impact - December 2020 Magazine: NCFA Fintech Confidential (Vol 1. Issue 3)

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - December 2020 Magazine: NCFA Fintech Confidential (Vol 1. Issue 3)



NCFA COVID 19 letter to government to support Fintechs and SMEs - December 2020 Magazine: NCFA Fintech Confidential (Vol 1. Issue 3)

NCFA Newsletter subscribe600 - December 2020 Magazine: NCFA Fintech Confidential (Vol 1. Issue 3)

 

NCFA OpEd: Canada’s Open Banking Consultations: Let’s Get it Done!

NCFA Canada | Dec 3, 2020

Open Banking is coming to Canada - NCFA OpEd:  Canada’s Open Banking Consultations: Let’s Get it Done!

Open banking is about giving Canadians control over their banking data to allow them to take advantage of data-driven financial services offered by third parties. But what exactly does that mean?

Imagine giving Canada Post the key to your house to deliver a parcel, rather than leaving it securely in a mailbox. The same situation may happen when sharing your banking data with a third-party. While some provide a secure mailbox accessed using an application programming interface, other require consumers to divulge their user name and password to a stranger. Open banking regulation would provide consumers with a secure and standardized way to share data and access valuable financial advice, products or services.

This week Finance Canada’s Open Banking Advisory Committee (OBAC) is holding the second phase of consultations. OBAC is meeting with banks and financial institutions, financial technology (fintech) companies, industry associations, and other stakeholders coast-to-coast. Five three-hour sessions take place from November 30 to December 17 to review the proposed framework, covering data standards, privacy, cybersecurity, accreditation, and more.

See:  MOF: Consumer-directed finance: the future of financial services

This is welcome news after the almost two-year delay since the first consultations were launched in January 2019. Canada’s foot dragging continued despite the June 2019 recommendation from our Senate Banking Committee that “The federal government must give Canadians the means to share their financial data safely and securely by facilitating what’s called open banking”.

See:  Senate of Canada, “Open Banking: Protecting Canadians’ financial information”, June 19, 2019, https://sencanada.ca/en/info-page/parl-42-1/banc-open-banking/#collapse-item3.)

The hold up continued through the COVID-19 pandemic, when Canadians turned to digital platforms to manage their personal finances as never before.

The OBCA understands the urgency to get this regulation in place. We agree. It is time to pass open banking legislation that provides access to innovative financial services while protecting consumer-welfare, similar to what exists in the EU, UK and Australia.

The National Crowdfunding & Fintech Association of Canada (NCFA) has long advocated for consumer-centric financial services that increase consumer choice. Canadians deserve competitive and transparent pricing. They deserve regulation that is proportionate to the risks and rewards. We support innovations that increase financial inclusion, address bias and discrimination, and create jobs. We want our fintechs to succeed at home and abroad, alongside other Canadian technology success stories.

The UK has been a leader, passing open banking legislation in January 2018 to increase competition and promote innovation in financial services. The Financial Conduct Authority (FCA) is the government regulator responsible for protecting consumers. The FCA has set open banking standards and publishes a list of approved providers. This agency has been proactive, for example targeting data brokers who aggregate and sell consumer data. The UK has set the model for Canada to follow.

See:  Global Risk Institute Report: Discussing Open Banking Regulation for Canada

The OBAC will recommend Canada’s open banking solution to the Finance Minister. A successful launch will require one entity to be responsible for the roll-out. It will require harmonized rules across Canada to avoid a provincial patchwork. Licensing and compliance costs should encourage competition and not simply favour incumbents, in line with the February 2019 submission from Canada’s Competition Bureau.

Education and effective communication will be critical. Regulators cannot rely on consumers to educate themselves, which was tried and failed with equity crowdfunding. To boost public confidence, we need a public awareness campaign that highlights the benefits of open banking and the steps being taken to protect consumers.

Canada’s framework needs to recognise international standards and avoid being siloed. To this end, OBAC should incorporate the work of the Standards Council of Canada on industry-wide standardization strategies for data governance. We need a future-proofed framework that will support a globally competitive financial system.

The open banking train has left the station. Canada risks being left behind if we don’t act now. The greatest risk is inaction. Passing open banking legislation will allow Canada to advance to a financial future that puts the needs of consumers first.

Craig Asano is the Founder and CEO of NCFA Canada. Prof. Michael R. King is a NCFA Advisor and Richard Remillard is a NCFA Board Member.


NCFA Jan 2018 resize - NCFA OpEd:  Canada’s Open Banking Consultations: Let’s Get it Done! 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

Latest news - NCFA OpEd:  Canada’s Open Banking Consultations: Let’s Get it Done!FF Logo 400 v3 - NCFA OpEd:  Canada’s Open Banking Consultations: Let’s Get it Done!community social impact - NCFA OpEd:  Canada’s Open Banking Consultations: Let’s Get it Done!

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - NCFA OpEd:  Canada’s Open Banking Consultations: Let’s Get it Done!



NCFA COVID 19 letter to government to support Fintechs and SMEs - NCFA OpEd:  Canada’s Open Banking Consultations: Let’s Get it Done!

NCFA Newsletter subscribe600 - NCFA OpEd:  Canada’s Open Banking Consultations: Let’s Get it Done!

 

Report: Access to Capital for Canadian Growth-Orientated Medium-Size Firms

RCG Group | Richard Remillard and Michael  Scholz | Oct 15, 2020

Canadian 100 dollar bills - Report:  Access to Capital for Canadian Growth-Orientated Medium-Size FirmsBackground:  Access to Capital for Scale-ups

Canada has an SME and start-up ecosystem that is healthy in many respects, ranking second globally in ease of starting a business, but seemingly falls in short scaling growing businesses into globally competitive anchor firms, as fewer than 2% of Canadian mid-sized firms grow into large firms in any given year.1 As a result, SM Es account for about 90% of business sector employment in Canada2 versus 47% in the United States3, a fact that accounts for about 20% of the labour productivity gap between Canada's business sector and that of the United States.

Ambitious, medium-sized firms require access to affordable sources of growth capital to be able to invest in activities (e.g. hiring talent, building infrastructure, and developing new technology) necessary to grow into globally competitive leaders. Evidence of stronger demand for such growth equity has been noted by the BOC, which expects its Growth & Transition Capital offerings to increase by 8% annually through fiscal 2024.

See:  Ontario’s Capital Markets Modernization Task force report draws criticism

Despite this, the financing challenges and opportunities surrounding medium-sized, higher-growth companies generally remain poorly understood relative to financing of small, early-stage growth companies. As such, this paper specifically focuses on the availability of flexible financing required by medium-sized firms looking to scale up and grow, such as minority equity, debt, or hybrid financing.

Informed by extensive interviews conducted by the Remillard Consulting Group with capital providers and corporate executives (Annex 1), the following captures stakeholder insights into the state of Canada's growth and transition capital markets, including: challenges inhibiting the availability of growth capital for medium-sized firms; common misperceptions concerning Canada's growth capital and alternative risk financing markets; and the continued role of the BOC in this rapidly evolving market.

Take-aways

Though Canadian policymakers have developed a robust understanding of the financing challenges faced by growth firms at earlier stages of development, less is understood about how growth capital markets work to finance medium-sized, growth-oriented firms. Following a decade of considerable growth in the sector, corporate executives and capital suppliers noted certain emerging trends important for policymakers to understand, including:

See:  NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce

  • The emergence of a relatively porous three-tier capital market structure in Canada to meet the unique needs of Canada's growth-oriented, medium-sized firms composed of both foreign and domestic sources of capital supply with Tier 1 capital dominated by foreign suppliers, who are less present at Tier 2 and are markedly absent from Tier 3.
  • Public capital markets partially compensate for the absence of foreign capital providers at Tiers 2 and 3; in the same vein, retail investors can and do participate in financing Tier2 and 3 companies also via private placements or as incented via Labour-SponsoredVenture Capital Corporation Tax Credits (mostly in Quebec).
  • Rural companies confront several obstacles ranging from distance, to the absence of specialized finance personnel, to the reliance on natural resources industries.
  • Country or province-wide 'branch' networks as exemplified by the big banks, BOC, CBGF, the Fonds Regionaux de Solidarite and Caisses Desjardins appear to be important to Tier2 and Tier 3 company fundraising efforts, especially for non-technology companies.
  • Certain industries are fashionable capital magnets while others, distinctly unfashionable, repel capital. Technology, broadly understood, is a capital magnet as has been cannabis. Oil and gas, forestry and hard rock mining have been the reverse.
  • A very limited number of smaller private sector funds have expressed concerns about BDC's activities in this portion of the mid-market - with BDC increasing activity to address funding requirements in this area, they risk getting squeezed out.
  • A lack of consensus about the impact of US capital in the market divides capital providers and company executives alike. Some refer to the current pattern of US fund investment into more-established and resilient companies as insulating these firms from a sudden withdrawal of that funding. Others note that in today's technology-driven world, Canada risks losing its future high potential job-creating and export-oriented champions.
  • Certain investors remarked that any future economic downturn may result in US funds prioritizing their own domestic investments over foreign ones as has occurred in the past. This, in turn, may result in a funding squeeze as Canadian domestic funds generally do not have the financial flexibility to meet these gaps as many companies in the technology space experience high burn rates of capital.
  • It is impossible to determine one way or another whether the presence of large American investors is a net-benefit to the Canadian economy. Resolution of this controversy would likely require an examination of the post-investment record in terms of direct and indirect job creation, intellectual property development and export performance of companies that have received foreign or domestic capital injections.

Download the Report (24pg PDF) --> here

 


NCFA Jan 2018 resize - Report:  Access to Capital for Canadian Growth-Orientated Medium-Size Firms 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

Latest news - Report:  Access to Capital for Canadian Growth-Orientated Medium-Size FirmsFF Logo 400 v3 - Report:  Access to Capital for Canadian Growth-Orientated Medium-Size Firmscommunity social impact - Report:  Access to Capital for Canadian Growth-Orientated Medium-Size Firms

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Report:  Access to Capital for Canadian Growth-Orientated Medium-Size Firms



NCFA COVID 19 letter to government to support Fintechs and SMEs - Report:  Access to Capital for Canadian Growth-Orientated Medium-Size Firms

NCFA Newsletter subscribe600 - Report:  Access to Capital for Canadian Growth-Orientated Medium-Size Firms

 

FINTECH FRIDAYS Podcast: Season 3

JOIN US ON A STORYTELLING JOURNEY:  SEASON 3

FF iTunes - FINTECH FRIDAYS Podcast:  Season 3
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FF soundcloud - FINTECH FRIDAYS Podcast:  Season 3

EP48:  How to Connect and Resonate with Customers Through Podcasting

NCFA Fintech Fridays EP48 Fatima Zaidi banner 1 - FINTECH FRIDAYS Podcast:  Season 3

Guest: FATIMA ZAIDI, CEO and Co-Founder, Quill Inc. (LinkedIn)

Bio: 

Fatima Zaidi is the CEO and co-founder of Quill Inc. the world’s first one-stop marketplace where podcasters can find pre-vetted expert freelancers who will save them time, improve their podcast quality, and help grow their audience. As a member of the National Speakers Bureau, Fatima has spoken at various events around the world on media and tech trends leading her to keynote on world stages alongside speakers like Gary Vaynerchuk, and most recently Richard Branson. In addition to being a commentator for BNN Bloomberg, she is a frequent contributor to publications including The Globe and Mail, and Huffington Post. Over the past few years she has won two Top 30 under 30 awards, the Young Professional of the Year by Notable Life, and one of Flare Magazine’s Top 100 Women

About this Episode:

Fatima Zaidi, CEO and Co-Founder of Quill Inc joins Fintech Fridays host Manseeb Khan to understand why podcasts have grown 200% in the last 6 months, and how influencers and corporate brands are building authentic customer relationships and motivating prospects with them. They talk about inspiring stories of Ben and Jerry’s ice cream, building trust, advice for female (under-represented) founders, and how to connect with affluent, educated millennial professionals. If you’re new to the power of podcasts, tune-in to learn why they are quickly becoming an integral part of a company’s marketing mix, today.

Enjoy! (Full TRANSCRIPT)

EP41:  40% pandemic growth, taking risks and innovating Insurtech in Canada 

GUEST: DANISH YUSUF, Founder and CEO, Zensurance (Linkedin)

About this Episode:  Danish Yusuf of Zensurance joins Craig Asano for the kickoff episode of Season 3 of Fintech Fridays. They discuss Danish's entrepreneurial journey, the story behind the creation of Zensurance and dive into what it's like adding 40% new staff during the pandemic to sustain growth, and innovating B2B insurance products for small businesses in Canada.

Enjoy! (Full TRANSCRIPT)

EP42:  Insights into the Teen Banking Sector and Improving the Financial Well-being of Families

GUEST: RIM CHARKANI, Co-Founder and CEO, WALO (Linkedin)

About this Episode:  Rim Charkani, the Co-Founder & CEO of WALO connects with NCFA Founder, Craig Asano, to discuss why Teen Banking is a growing opportunity for banks, and why financial wellness education is more crucial than ever for both kids and families. Did you know women in Canada weren't allowed to open a bank account without a man's signature until 1965? They navigate the history, psychology, cultural differences, and the need to improve Canada's financial literacy gaps and personal finances in every day life.

Enjoy! (Full TRANSCRIPT)

EP43:  Taking the Mortgage Process From 40 Days to Minutes

GUEST: CHRIS GRIMES, Co-Founder and CEO, FundMore.ai (Linkedin)

About this episode: Chris Grimes, co-founder, and CEO of Fundmore chats with Tristram Waye about the mortgage market, inefficiencies, and entrepreneurship. Vetting mortgages by lending companies is a complex process involving several parties and considerable time. Whether a first-time buyer or doing a refinancing, this process can last up to 40 days. The conversation explores the mortgage process, its deficiencies, and how technology is being used to enhance this financial transaction.

Enjoy! (Full TRANSCRIPT)

EP44:  The Vanguard of Digital Innovation and Ecosystems in Canada

GUESTS:

RICHARD REMILLARD, President, RCG Group (LinkedIn)

ROBIN FORD, Principal, Robin Ford Consulting (LinkedIn)

DAVID LUCATCH, Co-Founder and CEO, KABN Systems North America (LinkedIn)

LYNN JOHANNSON, Owner, E2 Management Corporation (LinkedIn)

 

About this episode:  Join us for a special Episode 44 where Craig Asano sits down with a panel of NCFA Advisors and members who discuss the vanguard of digital finance and it's ability to fund, develop and scale digital innovations in green finance, digital identity and other emerging ecosystem opportunities in Canada. Are success stories like Wealthsimple and Shopify repeatable? Covid has afforded us all the time to take stock on the past and present while considering a relaunch of the future. Will Canada get it right?

Enjoy! (Full TRANSCRIPT)

EP45:  Mission-driven and Consumer-centric Financial Services

Guest:  KEITH TAYLOR, Executive Director, DUCA Impact Lab (LinkedIn)

About this episode: Keith Taylor, Executive Director of the DUCA Impact Lab chats with Anna Niemira about consumer-centric and fair banking (social finance).  They discuss how a group of underbanked Canadian newcomers back in 1954 focused on solving a real problem in financial services.  Fast forward 65 years later, DUCA’s mission has never been stronger.  From innovative escalator-loans to digging deeper into retail financial literacy gaps, and their commitment to improving the financial well-being of its customers.  As a registered B-corporation, learn how DUCA is innovating and living up to their motto of not only being ‘the best in the world but the best FOR the world’.

Enjoy! (Full TRANSCRIPT)

EP46:  Making Business Borderless:  International Payments and Partnerships

Guest: ALASTAIR THOMPSON, Global Head of Business Development & Partnerships, TransferWise (LinkedIn)

About this Episode:

Alistair Thompson, Global Head of Business Development and Partnerships at TransferWise joins host Manseeb Khan to talk about their mission to make sending money as easy and free as sending an email.  They discuss how TransferWise began 9 years ago, and how transparent pricing, putting customers first and partnering with banks and non-banks globally has grown into a $5 billion monthly business and international fintech success.

Enjoy! (Full TRANSCRIPT)

EP47:  How to Change the World: Risk Culture and Work-life Balance

Guest: MICHELLE BEYO, Founder and CEO, Finavator (LinkedIn)

About this Episode:

Michelle Beyo, Founder and CEO of Finavator joins Fintech Fridays host Manseeb Khan who talk about taking risks, celebrating success and finding work-life balance. They talk about innovation during crisis and the need for Canada to adopt Open Banking and how companies that aren’t creating 50/50 diverse teams are leaving money on the table. Join us for an action packed episode that will have you participating in a sprint triathlon next year.

Enjoy! (Full TRANSCRIPT)

PAST SEASON 2 EPISODES:

Ep20-Jan 11:  Bitcoin Backed Loans and 2x Credit - Putting Your Crypto to Work (Mauricio Di Bartolomeo)

Ep21-Jan 18:  Meritocracy, Decentralized Innovation and the Power of Collaboration (Hussein Hallak)

Ep22-Jan 25:  Reducing Regulatory Burden by 25% in Ontario (Amar Nijjar)

Ep23-Feb 1:  Getting Smart About Crypto and Insurtech Snapchat Models (Justin Hartzman)

Ep24-Feb 8:  Re-imagining Philanthropy (Daryl Hatton)

Ep25-Feb 15:  Unlock the World (Kate Guimbellot and Jason Sosnowski)

Ep26-Feb 22:  Investing in Private Canadian Companies (Peter-Paul Van Hoeken)

Ep27-Mar 1:  Blockchain Gaming and esports (Shidan Gouran)

Ep28-Mar 8:  Rethinking Brokers (Muhammad Rashid)

Ep29-Mar 22:  The Future of Securities (Richard Carleton)

Ep30-Apr 12:  The Future of Canadian Crypto (Andrei Poliakov)

Ep31-May 14:  Blockchain Law (Jason Saltzman)

Ep32-May 24:  Rallying behind Bitcoin (Frederick T. Pye)

Ep33-May 31:  Indexing Consumer Loans and Financial Literacy (Phillip Postrehovsky)

Ep34-Jul 6:  Accelerating Fintech Growth (Brendan Holt Dunn)

Ep35-Aug 9:  Autonomous Alternative Lending (Vit Arnautov)

Ep36-Aug 22:  Techfins (Michael King)

Ep37-Sep13:  Funding is Female (Jill Earthy)

Ep38-Mar25: Why Identity Matters in an Evolving Online Environment (David Lucatch)

Ep39-Apr23: The Power of Digitization and How to Get Exponential (James Wallace)

Ep40-May22:  Why Bitcoin Exists and Education for the Masses (Austin Hubbell)

FINTECH FRIDAY$ is a weekly podcast brought to you by NCFA and partners, where we sit down with the incredible people in the Fintech and Funding community and talk about trends, product innovations, developments and challenges!

Fintech Fridays is an evolving and innovative educational platform focused on delivering authentic personalities, content and story telling on the journey of mainstream adoption of new financial technologies and their impact on the future of finance.

Subscribe and tune in each Friday to check out the latest movers and shakers with hosts Manseeb Khan, Tristram Waye, Anna Niemira, and others coming soon.

Want to get involved?  Contact us about partnerships opportunities, hosting and more:  info@ncfacanada.org

NCFA Fintech Fridays podcast - FINTECH FRIDAYS Podcast:  Season 3

NCFA Jan 2018 resize - FINTECH FRIDAYS Podcast:  Season 3 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

Latest news - FINTECH FRIDAYS Podcast:  Season 3FF Logo 400 v3 - FINTECH FRIDAYS Podcast:  Season 3community social impact - FINTECH FRIDAYS Podcast:  Season 3

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - FINTECH FRIDAYS Podcast:  Season 3



NCFA COVID 19 letter to government to support Fintechs and SMEs - FINTECH FRIDAYS Podcast:  Season 3

NCFA Newsletter subscribe600 - FINTECH FRIDAYS Podcast:  Season 3

 

David Durand, Founder and Managing Partner of Durand Lawyers, Joins the National Crowdfunding & Fintech Association of Canada’s Advisory Group

NCFA Advisor, David Durand

NCFA Canada | Craig Asano | September 9, 2020

Headshot david durand - David Durand, Founder and Managing Partner of Durand Lawyers, Joins the National Crowdfunding & Fintech Association of Canada’s Advisory Group

David Durand, Advisor, Innovation and Advocacy

TORONTO, September 9, 2020 – The National Crowdfunding & Fintech Association of Canada (NCFA) announced today that David Durand, Founder and Managing Partner of Durand Lawyers, has joined the Association`s national Advisory Group to advise in the areas of Fintech innovation and advocacy (Profile | LinkedIn).

David Durand, LL.L., B.Sc. chem., – Founder and Managing Partner of Durand Lawyers – Lawyer (Québec) and Trademark Agent – Lecturer at the University of Ottawa (IP)

David’s background in law and science has transformed Durand Lawyers into a leading boutique law firm with a focus on intellectual property, technology law and data privacy in the fast evolving fintech, crypto and software-as-a-service (SaaS) spaces.

David has been called upon on Canada’s Standing Committee on Finance (FINA) to provide insight on crypto-assets and blockchain within its review of the PCMLTFA, and has, since then, made submissions before the OSC, CSA/IIROC, IOSCO and most recently before the Financial Stability Board (FSB).

As a lawyer and member of the Québec Bar, David and members of the Durand Lawyers team have represented clients in various contract negotiations and transactions, as well as before different Courts, including the Québec Court of Appeal, the Superior Court of Quebec and numerous administrative tribunals.

Prior to founding Durand Lawyers, worked in top-tier IP boutique firms, based in Toronto and Montréal, as well as in the pharmaceutical industry.

“I am proud to be joining the NCFA Advisory Group and look forward to contributing our insights to the association in the fast-evolving FinTech and crypto-asset space. Promoting and supporting technological advancements as well as balanced regulatory environment are key to making Canada a go-to destination for FinTech innovation.” – Me David Durand

“David brings a tremendous amount of bench strength in the areas of fintech innovation and advocacy, and we’re excited to have him join NCFA and contribute his depth of knowledge for the benefit of advancing fintech innovation in Canada.” – Craig Asano, CEO & Founder, NCFA

About NCFA

The National Crowdfunding & Fintech Association (NCFA) 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. For more information, please visit:  https://ncfacanada.org/

About Durand Lawyers

Durand Lawyers brings Law & Business Together. We are a law and business advisory firm specialized in intellectual property, business strategy, as well as civil and corporate law. We are uniquely positioned to help clients in emerging technology industries including SaaS and FinTech. For more information visit our website at www.durand-lex.com.

Source: NCFA

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MEDIA CONTACTS:
Craig Asano
Founder and CEO
NCFA Canada
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casano@ncfacanada.org


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NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce

NCFA Canada | Craig Asano | Sep 8, 2020

Ontario capital markets modernization committee - NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce

Date:  September 7, 2020
Capital Markets Modernization Taskforce
Frost Building North, 4th floor
95 Grosvenor Street
Toronto, Ontario
M7A 1Z1

BY E-MAIL:   CMM.Taskforce@ontario.ca

 

Subject: Consultation – Modernizing Ontario’s Capital Markets

Dear colleagues and distinguished members of the Taskforce:

Joint goals. As a not-for-profit association representing over 3,500 members in the FinTech and crowd-funding space throughout Canada, the NCFA applauds the Taskforce’s proposals to modernize Ontario’s capital markets, many of which also support the NCFA’s mission to promote a vibrant and innovative FinTech and funding industry in Canada.

NCFA’s high-level position(s). The NCFA is pleased to provide its input on the following:

 

Governance reform

The NCFA agrees with the Taskforce that Ontario Securities Commission (“OSC”) and IIROC governance should be reformed. Without it, Canada can never be a leading regulator of capital markets; with it, capital markets regulators in Canada can contribute more positively to economic prosperity.

 

Regulatory approach

The OSC must be transformed into a more cost-effective, risk based, and outcomes focused regulator with three (equal) high level objectives, namely: (1) consumers are treated fairly; (2) market integrity; and (3) promoting competition.  With a change in culture and approach, over time, the NCFA believes that much regulatory burden (shown not to be justified under a more outcomes focused regime) would melt away, and the OSC would more proactively support the economy and innovation.  The NCFA very much supports a competition objective, as well as a closer relationship between the OSC and the Competition Bureau. The NCFA also agrees with the sandbox proposals and notes the recent UK FCA announcement of the Digital sandbox pilot: DataSprint.

Indeed, a change in regulatory approach and culture at the OSC would make it easier for the NCFA to support the Cooperative Capital Markets Regulatory (“CCMR”) system. The NCFA also supports moving towards open data and open finance in conjunction with modernized and enhanced data protection and privacy standards as, example, those set forth in Europe (e.g., GDPR, PSD2), the UK and/or Australia.

Though, after a lengthy consultation on cross-border data transfers, the Office of the Privacy Commissioner of Canada concluded “[…] that its guidelines for processing personal data across borders will remain unchanged under the current law” and “[…] will now focus its efforts on how a reformed law can best protect Canadians’ privacy rights when their information is transferred between organizations”. The NFCA believes that the foregoing foreign legislation will provide meaningful insight for better data rights, which are key for a successful open banking framework.

The NCFA strongly believes that open finance will bring more competition and innovation, including intellectual property, to financial services and products. It will increase competitor offerings and give consumers more choice and control over their data and financial history.

The NCFA supports the collaborative efforts of the CSA with respect to the adoption of a passport system and, with a change in regulatory culture, supports a national securities regulator.

Further information regarding the need for regulatory change can be found on the NCFA’s website.

 

Change management at the OSC

Changing the culture and approach at the OSC would require enormous commitment from the Premier and Cabinet, senior officials in relevant Ministries, and a new OSC Chair and CEO (selected in large part for their change management skills). As the experience in the UK shows, that commitment must be unrelenting, senior managers at the OSC must be constantly ‘on-message’, staff must be trained and properly supported, and communication with the industry and other stakeholders must be clear, consistent, and persuasive. A wider range of skills at the regulators is also needed (e.g., economists, risk experts).

Also essential is a Government strategy for innovation that connects Government legislation and support (e.g., accelerators, loans, and grants) with relevant regulators (including the OSC), and with other relevant provincial, federal, and overseas bodies.

 

Level playing field

The NCFA believes that the best starting point for a level playing field is principles-based regulation. More constraining detail or prescription should be imposed on firms only where clearly justified (the onus being on the regulator). Principles based regulation allows firms to comply and to meet desired regulatory outcomes in the way that best suits their businesses.  Enhancing investor protection does not require layers of prescriptive requirements. Quite the opposite, the approach of the UK FCA illustrates this very well - keeping in mind that some prescriptive requirements in the UK were required by European Union laws. In the longer term, unjustified prescriptive burden harms the market and consumers.

 

Regulatory burden

While the NCFA generally agrees with the proposals on burden in section 2.2 of the Consultation Report, it submits that:

  • The proposals on accredited investor(s) are too restrictive. “Experience” (to support accreditation) should include, for example: (i) legal/accounting/actuarial practice in the financial services sector, (ii) work as staff in a regulator, or (iii) university/college lecturer on financial services. Investors should be able to self-certify as accredited with appropriate back-up provided in the certificate.
  • Less burdensome harmonized crowdfunding exemptions are required to support capital raising for start-ups. We lag far behind jurisdictions such as the UK and US, among others.

The onus should always be on the regulator to show, with hard evidence and CBA, that burdens and restrictions are justified.

Separate tribunal

The NCFA does not think that separation of the supervision/staff from the adjudicative function is essential, but given the size of the OSC and the Ontario market, as well as the perceptions of bias, it should probably be done now, and could be done by adding the function to the Financial Services Tribunal. Funds acquired as a result of fines or disgorgement could be devoted to education or to compensation of harmed consumers/investors.

 

Ombudsman

Giving the Ombudsman for Banking Services and Investments the power to issue binding decisions and to order a registered firm (or individuals) to pay compensation is long overdue. Consumer protection in the UK is significantly enhanced by a very effective Ombudsman.

 

Supporting innovation: a pathway to success and seizing opportunity

We need to get this right.  With the pandemic, incoming OSC Chair, and ample evidence that our regulatory environment is lagging behind, without significant changes we’ll end up with a similar result. As we have recommended in the past (see footnotes) we must:

  • Improve access to capital for startups and entrepreneurs as follows:
  • Issuer caps should be increased to $5 million Canadian dollars, to fall into line with foreign jurisdictions, and allow a broader range of companies to participate. For example:
  • In the United States, companies can raise US$5M under RegCF;
  • In Australia, companies can raise A$5M; and
  • In Germany, companies can raise €8M.
  • Allow qualified accredited investors to participate fully without caps;
  • Establish a regulatory regime that recognizes and accepts that the activities of P2P lenders (and simple loan agreements) are inherently different from equity investments and should regulated differently; and
  • Capital raise readiness reimbursement and matching investment program for qualified companies and investors raising capital via crowdfunding platforms.
  • Improve data collection and analysis and reporting transparency.

 

The lack of basic data collection is a recurring theme that requires a solution. The NCFA is willing to collaborate with any government body to help develop and provide a solution.

  • Provide more support and funding for educational initiatives with industry so as to build credibility and investor confidence in a more digital world.

 

In addition. the NCFA believes that a Canada-wide technology innovation sandbox that fully integrates all provincial regulators should be a priority and that the innovation sandbox should have clear end-to-end processes and visible metrics for the streamlined onboarding and graduation of fintech innovators in the innovation sandbox.  Cooperation with regulators in the UK and Singapore is critical for our startups to have clear paths to going global from Canada.

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Conclusion

Given today’s environment and governmental initiatives to foster and promote innovation, the NCFA believes that the success of the Taskforce’s efforts in, for example, enabling greater access to capital for Canadian start-ups and entrepreneurs are key to:

  • sparking Canada’s leadership and presence in the global FinTech space, especially when foreign regulators, such as the UK FCA, MAS, and FINMA, have already adopted friendly regulatory environments and have captured a significant portion of the FinTech innovation space; and
  • becoming more: (i) competitive in the global capital markets, (ii) innovative, and (iii) adaptive to new technologies (or technological advancements).

 

In other words, the Minister of Finance, as well as Canadian securities regulators, including the OSC and the CSA, must act now. Time is of the essence, as Canada cannot continuously fall behind international trends and markets (at multiple levels).

The NCFA hopes that its comments and publications are of value to the Taskforce. The NCFA is ready to engage with the Taskforce to provide further insight and any additional information.

This submission is informed by a wide range of voices from within NCFA and its Advisory Group, including content from Craig Asano (Founding CEO of the NCFA), Richard Remillard (RCG Group), Robin Ford (Robin Ford Consulting), and Me David Durand (Durand Lawyers) and Michelle Beyo (Finavator), Alan Wunsche (Tokenfunder) as well as the NCFA’s industry partners and affiliates in the aggregate.

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NCFA Jan 2018 resize - NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce 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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