Category Archives: Personal Finance

Explaining the Causes, Prevention, and Legal Recourses of Car Accidents

Nov 25, 2024

Pexels, Mike Bird, Car crash

Image: Pexels/Mike Bird

Many people have experienced this, and new cases are reported frequently on the roads of the world, where millions of accidents happen each year. The effects of such accidents can be so severe that a person or a group of people lose their loved ones or may end up being disabled for the rest of their lives. That is why knowledge of the causes that lead to car crashes, how to avoid them, and the legal consequences stemming from car accidents is vital to enhancing road safety and the welfare of road users.

Typical Reasons for Car Accidents

There are many causes of car crashes, and some are more common than others, as listed below.

Distracted Driving

Another reason for car accidents is distraction. Distraction is any activity that leads to a driver’s distraction while on the wheel. Widely used distractive activities are using the phone, eating, or having children in the back seat. Road accidents due to distracted driving affect a driver’s ability to react and make clear decisions on the road.

Impaired Driving

Drinking and driving and the use of some drugs or medication reduce the ability of an individual to drive safely. Alcohol affects a person and makes his or her reaction slower, hampers his or her ability to make reasonable decisions, and also reduces his or her coordination; all these factors result in increased cases of accidents.

Speeding

Another cause of car accidents is overspeeding, that is, driving beyond the recommended speed limit or above the rate that current traffic and weather conditions allow. Thus, overspeeding negates the amount of time that drivers have to respond to threats, raises the level of impact, and complicates maneuvering. This is the case in nearly a third of all fatality occurrences in the United States.

Reckless Driving

Reckless driving consists of aggressive acts that display carelessness in the behavior and nonadherence to traffic rules in relation to other road users. This may include driving close to the car in front, cambering in and out of lanes, and driving through red lights or stop signs.

Fatigue

Driver fatigue is as lethal as driving under the influence of alcohol; such drivers may be very sleepy, slow to respond, poor in decision-making, and possibly doze off. Fatigue becomes especially dangerous when a driver is behind the wheel for a long time, which is the case for most commercial drivers.

Poor Weather Conditions

Bad weather like rain, snow and ice and even fog certainly do have an influence over a drivers ability to be able to control a vehicle effectively. Due to limited visibility, less effective tires traction, and slippery road surface cause control loss and accidents resulting from inadequate preparation or previous experience.

Vehicle Malfunction

If not corrected, mechanical faults are a leading cause of car accidents because of the role played by vehicles. This can include poor brakes, steering, lights or tires this leads to likely loss of control of the vehicle or poor visibility. The worst thing is to just neglect one’s vehicles and wait for them to break down or simply become a dangerously un-repairable wreck.

Road Hazards

Other causes of car accidents include road obstacles like potholes, washed-up materials that may block the way, and slippery roads. These hazards make a driver vulnerable to losing control of their vehicle, getting a blowout, and, ultimately, an accident.

Preventing Car Accidents: A Shared Responsibility

To reduce car accidents responsibility has to go hand in hand with commitment of all the users on the road.

Driver Responsibility

Drivers, who are the primary operators of vehicle, have a great contribution in eradicating car accidents. This involves following traffic regulations, being alert on the roads and not engaging in activities that endanger oneself and other road users such as using phone while driving, driving while drunk and driving at high-speed.

Passenger Responsibility

Another way that passengers can also use their influence is to maintain proper road safety. This may involve disregarding activities that would distract the driver, including constant talking or requesting the driver perform other activities while driving, such as using a phone.

Pedestrian Responsibility

A pedestrian is a very important factor in a road system because he or she is exposed to a higher risk of accidents than other road users. This entails running the red lights, ensuring that drivers can see them while making the crossing, and not looking at anything apart from the road when making the crossing.

Policy and Enforcement

Laws related to road safety are prepared and maintained by the policies and enforcements developed by the governments. This may also involve enforcing the laws of the roads, putting up with a given speed limit, and undergoing road worthy tests on all road Transport vehicles.

Legal Implications of Car Accidents

Accidents occur on the roads due to different causes; some of the legal implications of car accidents include the following;

Insurance Claims

Car accidents are typical in which parties lodge an insurance claim for compensation of the incurred expenses. This process differs from one insurance company to another according to the kind of accident involved in the claim.

Determining Liability

In some cases, assessing the degree of fault may be necessary to begin pursuing compensation from an insurance claim or to file a car crash injury suit.

Personal Injury Claims

If the accident occurred, the individual affected can bring a claim against the at fault driver by way of a personal injury suit providing him or her with an opportunity to recover for the medical expenses, the wages forgone, the pain and suffering, and incidental damages.

Wrongful Death Claims

It could be that there is a car accident with some folks dying, and their surviving family is liable to run a wrongful death claim. Such a claim seeks to get ready money for funeral costs, lost wages, and the anguish of the left behind relatives.

Seeking Legal Counsel

If you happen to be in a car accident, you'll want to seek an attorney to advise you on your legal rights. It allows for a reliable car crash lawyer to help you navigate through the legal ways, in turn amassing evidence and ensuring fair compensation from you.

The Immediate Aftermath of a Car Accident

It is very important to identify what measures should be taken after a car accident has happened in order to avoid future complications legally and physically.

Check for Injuries

After a car accident, the most important thing to do is always to ensure that everyone including those in the accident are not injured. If the person seems to be genuinely hurt, call the police, as they will also need to take the injured into an ambulance and write a report.

Move to Safety

If there are no injuries or fire involved then it is advised to tow the vehicles off the highway to an area that is safer and less congested. It will help avoid more catastrophes and make the atmosphere secure enough for first aid response teams to get to the scene.

Contact the Authorities

The accident should be reported to the authorities since they will write a report on the incident and file it. Such documentation can be very valuable in assigning culpability in a legal manner in case of litigation.

Exchange Information

Upon calling the administration, pass necessary information with the parties involved in the accident. This normally consists of the name of the driver as well as the address, phone number, driver’s license, identification number and details of the vehicle, as well as details of insurance cover.

Gather Evidence

Take pictures of the car and of any signs which include the traces like skid marks, and damages at the scene of the accident. Get the contact details of all available eye witnesses who may have witnessed the incident. It can also be helpful in civil actions to determine the causation and in negligence and other legal processes to determine liability.

Seek Medical Attention

In most cases, people that do not even think that they have been injured can sustain a deep tissue injury and, therefore, should seek medical care even after a minor car accident. At times, an injury may leave no symptoms initially, and a check up will help ascertain whether other injuries may have gone unnoticed.

Conclusion

Car accidents are a complex issue with far-reaching consequences. If a person feels they have been involved in an accident, understanding the causes and from there being able to prevent them is essential, as is knowing the legal implications which can help them to understand what to do in the aftermath and protect their rights.


NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Canada Post Expands into Financial Services with KOHO

Fintech Partnership | Nov 11, 2024

AI Image Canada Post financial services

Image courtesy of AI

Canada Post and KOHO Team Up to Bring Banking Services to Underserved Canadians

Canada Post and KOHO, a Canadian fintech company, are teaming up to offer basic banking services across Canada. This aim of the partnership is to bring KOHO's chequing and savings accounts, prepaid Mastercard, mobile app access, and financial tools to more people, especially those in remote or underserved areas.  According to recent data, 15% of Canadians are still underserved by traditional financial institutions.

See:  KOHO Secures $190M to Move Towards Banking Power

Canada Post can use its network of over 6000 locations coast to coast to improve banking services to those who might struggle to reach a traditional bank.  Other countries are seeing similar trends, as postal services look to provide financial options for those who need them most. The United States Postal Service (USPS) began a pilot project in 2021 offering limited check cashing services at some locations to help people who don't have access to a bank account.

Canada Post Looks to Diversify into Financial Services

Canada Post has been under financial pressure in recent years with rising operational costs and declining traditional 'snail mail' volumes because of the onslaught of digitalization. In Canada Post's 2023 annual report, they reported a pre-tax loss of $748 million up from $548 million the previous year. Back in 2021, Canada Post announced 'A Stronger Canada - Delivered' plan which focused on diversifying revenue streams to better serve Canadians which included expanding into financial services.

See:  How Fintechs Are Tackling Financial Inclusion in Canada

In 2021, Canada Post partnered with TD to launch a personal loan pilot called 'MyMoney' but it was soon paused due to 'processing times' and then officially closed down with the reason being attributed to 'misuse by consumers' attempting to exploit the new offering.

Why This Partnership Matters

The postal network is trusted and offers a vast network of outlets across the country.  For the 15% of Canadians who are underserved by traditional banking options, the KOHO partnership could be a key lifeline with modern financial tools to help them access and manage their money without relying on banking institutions.  In a country as big as Canada where many communities are 'underserved' in some capacity, it simply makes great sense to combine financial technology with Canada Post's infrastructure for a win-win.


NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Your Ultimate Guide to Finding the Best Products and Services in Canada

November 10, 2024

Image AI high quality products

Image courtesy of AI

When searching for top-tier products and services, it can be challenging to navigate the numerous options available across different categories.

Whether you're looking for a high-performing dishwasher, the perfect electric shaver, or the most reliable washer-dryer combo, meilleurs.ca offers a well-researched approach to guide you. Understanding what makes each product stand out can save you time, money, and frustration.

This guide will walk you through key factors to consider when choosing the best products and services, ensuring you make informed decisions and maximize your investments.

1. Understanding Your Needs

The first step in selecting any product or service is to clearly define what you need. Are you shopping for a new refrigerator that balances energy efficiency with storage space? Or perhaps you’re on the hunt for a durable outdoor camera that offers exceptional resolution and weatherproofing?

By pinpointing your specific requirements, you can narrow down the overwhelming number of options. Consider these questions:

  • What features are essential for me?
  • How frequently will I use this product or service?
  • What is my budget range?

Answering these questions will help filter out options that don’t fit your unique criteria and focus on what truly matters.

2. Key Factors to Look for in High-Quality Products

When evaluating different options, there are universal characteristics that define high-quality products across a wide array of categories:

  1. Performance and Reliability
    Choose products that are proven to perform efficiently over time. Reliable products typically come with positive customer reviews, extensive testing certifications, and well-known brands standing behind their quality.
  2. Durability and Materials
    Durable products are made from high-quality materials, ensuring a long lifespan. When looking at appliances, consider whether parts can be replaced or repaired, and research the expected longevity of specific components.
  3. Price and Value
    The most expensive product isn't always the best. Look for the right balance between price and quality by comparing similar products across multiple sources. This is where finding well-reviewed options helps you ensure you're getting the best value for your money.
  4. User-Friendly Features
    Ease of use and convenience matter. Whether it's a smart refrigerator with intuitive controls or a dishwasher that seamlessly integrates with your home's ecosystem, a user-friendly design elevates your overall experience.
  5. Safety and Compliance
    For many products, especially electrical appliances and health-related services, safety standards and compliance certifications are essential. Researching which certifications matter in Canada can help confirm you are choosing products that meet high safety and quality benchmarks.

3. Categories That Matter Most

While your interests may be broad or specialized, certain product and service categories stand out for Canadian consumers due to their high demand and evolving technology. Here’s a closer look at some essential categories:

  1. Home Appliances
    Whether it’s selecting the perfect washing machine, electric stove, or small kitchen appliances, energy efficiency, performance ratings, and space-saving features are vital. For example, dishwashers with low water usage and efficient drying cycles can save costs over time.
  2. Electronics
    In the fast-paced world of electronics, factors like screen resolution, connectivity, sound quality, and smart capabilities influence consumer choices. Smart TVs, Bluetooth speakers, and even outdoor cameras continue to see rapid innovation, making it essential to stay informed about current trends.
  3. Health and Wellness Products
    From electric shavers to fitness equipment, health and wellness products play a key role in daily life. Consider product reviews, usability, and long-term benefits when making a choice.
  4. Home and Garden Essentials
    As seasons change, outdoor maintenance and gardening tools become pivotal. Factors such as durability, ease of use, and efficiency can guide you toward better options that enhance your outdoor spaces.

4. Comparing Product Features and Reviews

One of the best ways to make an informed decision is to read through product reviews and comparisons. Real-life user feedback can shed light on the advantages and drawbacks of specific models, helping you see beyond marketing promises. Websites and online platforms dedicated to product comparisons provide expert insights and rating systems to help guide your choices.

5. Shopping Smart: Tips and Tricks

Here are some strategies to help ensure you get the best deals and highest-quality products:

  • Watch for Sales: Seasonal sales, like Black Friday, Boxing Day, and New Year’s promotions, often offer excellent deals on big-ticket items.
  • Read Multiple Reviews: Seek feedback from multiple sources and platforms. User reviews, expert analyses, and comparison websites will give a holistic view of a product's performance.
  • Check Warranties and After-Sales Service: Quality products often come with strong warranties and excellent after-sales support. This indicates the company’s confidence in its offerings.
  • Consider Longevity: It may be worthwhile to pay a little more upfront for a product that saves on repairs or replacements in the long run.

6. Navigating Online Comparisons

Navigating comprehensive guides and comparison websites can significantly ease your search. These platforms specialize in assessing the best products and services across various categories, offering curated lists and expert analyses. By doing the research for you, they present information in an easily digestible format, making it more convenient to select what aligns with your preferences.

7. The Role of Canadian Standards and Certification

Another important aspect to consider is how products are rated and certified within Canada. Government regulations and certification bodies ensure that products meet certain health, safety, and environmental standards. Before making a purchase, check for any local certifications that reflect compliance with Canadian laws and consumer standards.

8. Sustainable Choices and Ethical Consumerism

Today, many Canadians are making eco-friendly and ethical purchasing decisions. Choosing products that prioritize sustainability, such as energy-efficient appliances or fair-trade goods, contributes positively to environmental and social impact. Consider products that reflect values important to you, from environmental preservation to ethical labor practices.

Conclusion

In a marketplace filled with endless choices, finding the best products and services requires careful evaluation, comparison, and informed decision-making. By focusing on quality, price, reliability, and user feedback, you can ensure that your selections meet your needs and enhance your lifestyle. For reliable and well-rounded recommendations, exploring comprehensive comparison platforms helps take the guesswork out of shopping and makes the process smoother, smarter, and more satisfying.

See:  Visa’s Solutions for the Creator Economy and Fintech Opportunities for Tomorrow’s Digital SMBs

Whether you’re searching for a top-performing appliance, an essential electronic device, or a lifestyle-enhancing tool, a little research goes a long way toward finding the very best options for your needs.


NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Detroit to Accept Crypto for Taxes with PayPal

Innovation | Nov 7, 2024

Freepik Pay taxes with crypto

Image courtesy of Freepik

Detroit Partners With PayPal to Accept Cryptocurrency for Tax Payments

Detroit just announced that starting from mid-2025, residents and local businesses will be able to use cryptocurrency to pay taxes and city fees.  This makes Detroit the largest U.S. city to adopt crypto payments for government services, a big leap forward for digital finance transactions.  The city is partnering with PayPal to manage these payments with the goal of bringing a modern, flexible option to handling finances, and a tech and innovation boost to the city.

See:  How Fintechs Are Tackling Financial Inclusion in Canada

Detroit’s new approach gives residents who already own digital currency a direct way to handle taxes and fees, and hopes to make payments easier and more open to everyone.  Crypto payments offer a way for people without traditional bank access to settle city expenses with a modern alternative.  The city’s choice to accept crypto also shows its interest in attracting new businesses and skilled workers.

PayPal Partnership

Global digital payment giant, PayPal, will oversee Detroit’s cryptocurrency transactions. The partnership gives residents the comfort of using a familiar branded platform, making it easier to manage their digital payments without added confusion or worries about security or a newly run service by the local government.

Implications

Detroit’s move to accept crypto payments might inspire other cities to do the same, especially as blockchain technology becomes more common in government services. The city is also inviting tech experts and blockchain developers to pitch ideas for using blockchain in other areas of public service, looking to attract fresh ideas that could be valuable for Detroit’s future.

See:  PayPal Introduces Confidential Stablecoin Transfers

Conclusion

This decision signals to residents, businesses, and the tech world that Detroit is open to fresh ideas for modernizing government services.  Fingers crossed that the initiative is successful as it could lead to using crypto in government services throughout North America.


NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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The Financial Impact of Post-Secondary Education and Reasons to Plan Early

Nov 5, 2024

Pexels Thirdman, Teacher discussing her lesson

Photo courtesy of Pexels

As is the case in most other regions of the world, post-secondary education (PSE) has been a catalyst for economic and social prosperity in Canada. While it has been a necessity for a well-prepared career, it hasn't made life any easier for most family budgets because higher education is expensive and only getting more so over time.

The financial impact of PSE is quite deep, and the only way to overcome this hurdle is to plan finances early. Many interesting options are available in Canada, including a Registered Education Savings Plan (RESP).

Mitigation of Higher Education Financial Burden through Early Planning

Whether you go with an RESP or choose another funding option, it’s important to start early. Many families opt for an RESP, a tax-advantaged savings account, because it helps them save money to be used to finance their child’s future education, including colleges CEGEPs, trade schools, and even apprenticeship programs.

Once an account has been opened, the financial institution can apply for grants, such as the Canada Education Savings Grant (CESG) on behalf of an RESP account holder. The funds flow directly into the RESP account to support a child’s education or offset expensive items, such as books, tuition, rent, and transportation.

The increasingly heavy burden of PSE costs feels lighter with the support families get through RESP accounts. Things aren’t easy for families, considering that average undergraduate annual tuition has increased from $5,767 to $7,076 from 2013 to 2023. It may not look like a huge shift over a decade, but if a child is still young, the cost will definitely go up by the time they are ready for post-secondary education.

Interestingly, tuition is only one part of the story. It is found that the total cost of attendance for an on-campus full-time student is around $19,500 per year, especially when costs such as books and supplies, rent, transportation and other living expenses are added together.

These are significant costs, accentuating the importance of starting early and planning for PSE. Going with an RESP makes sense because the money put into the RESP grows tax-free until withdrawn and the Government grants are only available with an RESP.

Other Options to Explore
RESPs are usually the most favorable option for most families, but it is a good idea to consider other alternatives as well. Early financial planning may involve exploring other options such as tax savings accounts or TFSAs, as they also ensure tax-free investments, tax-free growth, and flexible withdrawal options.

In-trust accounts are another similar option. These accounts can be opened in a minor’s name and have certain tax benefits. There are also scholarships and bursaries, many of which are arranged and managed by large Fintech companies, playing their role in making PSE studies available to students.

Endnote

The financial implications of post-secondary education can be critical. Knowing everything associated with the costs in education and planning early may greatly relieve the pressures associated with higher education. RESPs are a good way to begin saving for education funding.


NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

How Fintechs Are Tackling Financial Inclusion in Canada

Financial Inclusion | Nov 4, 2024

Freepik jcomp, homelessness

Image: Freepik/jcomp

A Visual Journey Into Financial Inclusion - Breaking the Cycle

Chris Skinner’s recent article “Banks make millions from the most vulnerable” shines light on the struggles people face when trying to access financial services  especially during tough times (like most countries are experiencing right now including Canada). There's a significant need for effort to make financial services more inclusive. Even in today’s connected world billions of people are left out of basic financial services, limiting their ability to find stable jobs or secure housing. Below are several videos that offer a closer look at this global issue and a look at how Canadian fintechs are helping to tackle the issue of creating a more inclusive financial system.

1. "Vicious Circle" (HSBC UK)

HSBC UK's “Vicious Circle” award winning video shows how not having a stable address can lock people out of basic banking, which is often needed to find jobs and secure housing. With programs like the No Fixed Address service, HSBC aims to change this, giving homeless individuals a way to open bank accounts even if they don’t have a permanent home.  HSBCs brand received a 10% lift in positive brand affinity as a direct result of this campaign.

Key Message:

"Without a fixed address, it's impossible to open a bank account. And without a bank account, securing stable employment and housing becomes even harder. HSBC’s ‘No Fixed Address’ service is a step toward financial inclusion for all."

2. "What Is Financial Inclusion?"  (The Wall Street Journal)

This video breaks down what financial inclusion means in simple terms. It points out the challenges faced by almost two billion people around the world who don’t have bank accounts. The video also shows how efforts to expand financial services are helping close these gaps especially for communities that often get left out.

Key Message:

"Financial inclusion means providing affordable financial services for everyone, especially those currently underserved by traditional banking systems."

3. "What is Financial Inclusion? | Short Film"  (BRAC)

BRAC’s short film highlights the real life experiences of people affected by limited access to financial services. It shows how not having financial support can deeply impact their lives. The film points out how important it is to make financial services available to the 1.7 billion people around the world who still don’t have access to basic banking.

Key Message:

"When people are unbanked, their access to economic opportunity is severely limited. Financial inclusion is not just a service – it’s a pathway to empowerment.

4. "What is Financial Inclusion and Why is it Important?" (IMF Institute)

This IMF video talks about why it’s crucial for everyone to have access to financial services around the world. It shows how governments and global organizations can build systems that make it easier for people to escape poverty and improve the economy.

See:  G20’s Vision for Financial Inclusion through Digital Public Infrastructure

"Financial inclusion is not only a matter of access; it’s a catalyst for development, enabling people to participate fully in the economy."

5. "Financial Inclusion, the Digital Divide, and the Future of Money" (TED Talk by Ajay Banga)

In this remote TEDx Talk, Ajay Banga looks at how digital financial tools can help close the gap between those who have access to financial services and those who don’t. He highlights how partnerships between the public and private sectors can open up digital economies making it easier for more people to join and benefit from financial services.

Key Message:

"Digital financial inclusion is our opportunity to bring everyone into the economy but it requires collaboration and commitment from both public and private sectors.

6. "Digital Financial Services and Financial Inclusion" (UN Capital Development Fund)

The UN Capital Development Fund shows how digital financial services can help create a fairer and more sustainable future. This video highlights how digital tools make it easier for people to access financial services and provide support for small businesses, women entrepreneurs, and rural communities.

Key Message:

"Digital financial services aren’t just about convenience; they’re a bridge to economic opportunity for marginalized communities."

How Canadian Fintechs Are Addressing the Challenges of Financial Inclusion

In Canada people without stable housing often face big challenges accessing basic banking services which makes it even harder to find a place to live or a steady job. Several Canadian fintech companies are working to close this gap by creating new ways to help those without a permanent address or regular income gain access to financial services or in other ways like access to credit scores and financial literacy, no fee accounts and more.

1. KOHO Offers Accessible Accounts Without a Fixed Address Requirement

Canadian fintech KOHO is offering a no-fee spending and savings account which helps financial inclusion by reducing barriers for individuals without stable housing. KOHO requires identity verification like government ID but does not require proof of a fixed address or employment status, making it accessible for individuals experiencing homelessness. This helps those without a permanent address to access basic financial activities helping them move towards stability.

2.  Borrowell is Empowering Financial Literacy and Credit Access

Borrowell is providing free credit score monitoring and financial literacy resources to help individuals with limited financial access start building a financial profile. By understanding their credit score and financial health they are better equipped to apply for loans or other forms of support once they have stable income or housing.

3.  Wealthsimple is Offering Simplified Banking Services with Supportive Policies

Wealthsimple provides easy to setup savings and investment accounts with good interest rates. Although a Canadian address is needed to get started, there’s no job requirement so it's accessible for people in flexible living situations.

See:  So what is financial exclusion in the era of Open Finance?

They also offer helpful tools for managing money showing a commitment to making financial services simpler and more accessible for those who might otherwise be left out, along with financial education resources.

4. Neo Financial is Offering Digital Banking Solutions with No Monthly Fees

Neo Financial provides digital banking without monthly fees. Their easy to use  platform is built to support a wide range of users especially those who might struggle with traditional banking. By making banking simpler and offering helpful financial tools, Neo aims to help people stay financially secure.

5. Payfare is Providing Financial Services to Gig Workers

Payfare works with gig economy companies to give financial support to gig workers who often can’t access regular banking services. By providing quick payments and simplified digital banking, Payfare helps lower the risk of financial struggles that could lead to homelessness.

Closing Outlook

These fintech companies are showing how technology can help overcome barriers to financial access by making essential services available to people facing homelessness and financial exclusion. By removing traditional banking hurdles such as high fees and strict requirements, they’re opening doors and moving Canada closer to a future where everyone has access to financial resources.


NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

Report Insights: DIY Investors in Canada on the Rise

Report | Oct 21, 2024

CBOB Funding the Future

Image: Funding the Future (Conference Board of Canada)

More Canadians are Managing Their Own Investments, Using Digital Tools and Taking Control of Their Finances

A new report from The Conference Board of Canada (CBOB) called 'Funding the Future:  The Economic Impact of Canada's Investment Funds Industry" shows that the way Canadians invest is changing quickly with more people choosing to manage their own investments.  People who use financial advisors has declined from 69% in 2020 to 61% in 2024, while at the same time 45% of investors now have a DIY investment account. This is an important shift to track and understand its implications.

Why Are More Canadians Turning to DIY Investing?

While everyone's situation is different, there are many trends driving people towards DIY investing.

  • DIY investors want more control and like having a say in deciding where their money goes whether it be in public or private markets.  A do it yourself approach is especially appealing to people who want to personalize their investment strategy, such as someone who wants to support the transition to a cleaner, more environmentally future.

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  • Let's be honest.  While hiring financial advisors can be the best decision for those in need, many DIY investors want a cheaper option and to avoid paying high fees that will adversely impact their investment accounts and retirement savings. For Canadians investment accounts under $250k, financial advisory fees can be a burden.  The report says about 60% of DIY investors make less than $100,000 a year, so for them, DIY platforms and tools offer a cheaper way to invest.
  • Investing online and access to easy to use digital tools has made investing simpler than ever.  People can trade from from anywhere, and usually access market information very quickly.   The Covid 19 pandemic boosted online self-directed investing and the number of DIY investment accounts growing from 6 million to 11 million between 2018 and 2022.

So Who Are the DIY Investors?

While anyone can be a DIY investor, the CBOB says the typical DIY investor in Canada tends to be male, younger and more tech-savvy.  The data shows that the fastest demographic in the DIY investing space is between 18-24 years old.  This segment is digitally native, and they are very comfortable with online platforms allowing them to explore all of their options (online of course ;).

Strategies and Tools for DIY Investors

  • Low Cost Online Brokers - Platforms like Wealthsimple Trade and Questrade are popular because they offer low fees and offer a wide variety of investment options like stocks and ETFs.  ETFs are hugely popular with ETF investments growing from $77 billion in 2014 to $382 billion by 2023.
  • DIY investors are increasingly turning to automated platforms to manage their portfolios. Robo-advisors like Wealthsimple offer a hybrid of automation and guidance, while others are exploring more advanced robo trading software that uses algorithms to analyze markets and execute trades in real time.

See:  AI’s Double-Edged Sword of Retail Investing

  • Digital currencies and crypto like Bitcoin and Ethereum have caught the attention of many DIY investors looking for something different from the usual stock market. There are many Canadian crypto platforms like Wealthsimple Crypto or WonderFi.  Many DIY investors choose crypto for the appeal of large returns that are independent of the banks.  While crypto regulations in Canada have been progressing, they are still evolving and crypto markets are very volatile and risky.
  • Online Research and Sharing on Social Media - websites like Morningstar and Yahoo Finance can provide DIY investors with a lot of information on what's trending in the market and expert reviews, and even tools to help investors make better decisions without needing an advisor.  According to the report, over half of Canadians now use social media to find investment advice which is significantly up from 35% just a few years ago.  To put this into perspective, 82% of 18-24 year olds use platforms like Reddit and Twitter to discuss investment ideas, learn about market trends and even consider joining forces on certain investment strategies.
  • Investment Crowdfunding platforms like FrontFundr and Equivesto let DIY investors put their money directly into private startups and small companies in exchange for equity participation (shares).  It appeals to those who want to support innovation while enjoying the process of selecting their own private investments.

The Impact of DIY Investing on the Economy

  • To compete with DIY investors, traditional financial advisors are offering services that blend digital tools with personal advice to stay competitive.
  • The growth in digital DIY investing tools and services is a boost for fintech that has created jobs and encouraged innovation.
  • There's more people active in the stock market which can help liquidity (making it easier to buy/sell stocks), however social media influence can quickly impact stock prices causing volatility to watch out for (see meme stocks like gamestop as an example).
  • Equity crowdfunding means more startup funding directly from regular investors.  This helps small businesses find new sources of money and lets everyday people invest in innovative ideas in sectors they care about such as clean energy or a local business venture.
  • DIY investing can impact government taxes since many smaller investors typically trade from within tax-friendly accounts, meaning taxes are delayed until retirement (RRSP) or considered tax free (TFSA).

See:  A Look Inside 2024 DIY Investing Trends in Canada

  • Smaller DIY or retail investors are more unpredictable since they often trade on trends which can cause stock prices to gyrate up or down quickly.
  • DIY investing platforms have helped younger and lower income Canadians gain access to investment opportunities whether it be via ETFs or backing private companies directly.  This democratization of access helps more people growth wealth which can lead to a more equitable distribution of investment wealth across different income levels.
  • The growth in DIY investing has also ignited discussions around the increased need for better financial education and literacy.  As more Canadians learn about the market they make better decisions which helps create a more stable investment environment.
  • Some investing apps use features similar to video games like gaming notifications and ranking leaderboards to encourage more trading.  These game like features can encourage risky behaviour and impulse trading which is not good for long term financial success.

The Future of DIY Investing in Canada

This DIY investing shift is expected to keep growing as artificial intelligence significantly ramps up the digital tools for investors making it easier and even better to use.  Younger Canadians are likely to continue managing their own investments to grow wealth.

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Some many eventually seek assistance from traditional financial advisors but many will prefer more control, lower costs and the flexibility that comes with managing their own investments.  There's definitely a good opportunity for fintechs to help DIY investors reduce their risks!


NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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