Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Personal Finance
APIs and the Evolution of Digital Platforms: Towards a Three-Sided Market
Citi | Jun 16, 2023
Image: Citi
Embracing the three-sided market model, where financial institutions integrate with digital platforms alongside buyers and sellers, can unlock new network effects, accelerate economic growth, and enhance customer engagement in the digital economy.
- The report introduces the concept of a "three-sided market" where financial institutions are integrated into digital platforms alongside buyers and sellers. This model enhances the platform's value proposition by providing financial services such as payments, foreign exchange, and credit within the platform itself.
- Integration of Financial Services into Platforms:
- The report discusses various ways platforms have integrated financial services, including partnering with established financial institutions, creating regulated subsidiaries, or leaving the provision of financial services to external third parties.
- The report identifies Open Banking, Embedded Finance, and Decentralized Finance (DeFi) as potential catalysts for the emergence of three-sided marketplaces.
- Opportunities for Fintechs:
- They could also collaborate with platforms to create unique value propositions, such as exclusive discounts or rewards, to drive customer engagement and loyalty.
- They could also develop solutions that help platforms integrate financial services more efficiently and could play a key role in facilitating the transition.
See: FIS Dives Deeper into Embedded Finance with Bond Acquisition
- Opportunities for Banks:
- Banks could see this as an opportunity to maintain customer engagement and expand their services in the digital economy. By becoming integral components of these platforms, banks could tap into new customer bases and participate more actively in the digital economy.
- Banks could explore partnerships with platforms or consider developing their own platforms. They could also consider how to leverage their existing customer relationships and trust to provide services within these platforms.
- Implication for Regulators:
- Regulators need to consider the implications of this new business model, particularly in terms of ensuring fair competition, data privacy, and security. They may need to update regulations to accommodate these new business dynamics and ensure consumer protection.
View more --> here
Download the 20 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canadian POS Financing on the Move: Financeit Acquires Simply Group’s Consumer Loan Business
FinanceIt | Release | Jun 26, 2023
Unsplash Sidekix Media, renovating kitchen
FinanceIt acquires Simply Group's consumer loan business
- Strategic Acquisition:
- Financeit’s acquisition of Simply Group's consumer loan business, including SNAP Home Finance and EcoHome Financial, signals a dynamic expansion in the point-of-sale (POS) financing sector in Canada.
- By integrating Simply Group's proficiency in home improvement financing and its $3 billion track record, Financeit is positioned to deliver an enriched merchant and consumer experience, while accelerating innovation in financing solutions.
- The merger brings together a combined strength of over 180 professionals, unlocking potential for a transformative impact on home improvement dealers and end-users.
- Leveraging Simply Group’s technology and dealer experience, along with Financeit's established market presence, the consolidated entity aims to revolutionize the home improvement consumer lending space with advanced products and services.
See: Empowering the Next Iteration of Consumer Finance
Michael Garrity, CEO of Financeit:
We’re thrilled to announce another milestone in our growth journey as we focus on expanding our market footprint and our enduring commitment to the Canadian POS financing market. The Simply Group Loan Business team has consistently showcased deep industry expertise, remarkable market agility, and an array of competitive products and services for dealers. By combining our two businesses, we are confident that we can create a transformative impact on the lives of home improvement dealers, helping them drive business growth.
View the release --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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CIBC’s Mortgage Underwriting Troubles: A Long Road to Full Compliance
The Globel and Mail | James Bradshaw | Jun 20, 2023
Image: Unsplash/PiggyBank
The Canadian Imperial Bank of Commerce (CIBC) continues to face remediation orders over the bank's mortgage portfolio from Canada's banking regulator, the Office of the Superintendent of Financial Institutions (OSFI).
- Ongoing Regulatory Remediation:
- These orders have been in place for over a year, after an audit revealed that CIBC had breached rules limiting how indebted borrowers can be.
- The bank's mortgage portfolio included thousands of clients who, when combining their home-secured lines of credit with CIBC mortgages, exceeded the permitted regulatory ratios for debt.
- Although these issues did not involve fraud, they have required extensive review and system retooling, with CIBC enlisting the aid of consultants from Deloitte.
- The bank is still discovering problematic mortgages in its portfolio and anticipates up to two more years to fully rectify the situation. However, these cases are not expected to result in significantly higher losses on loans or have a substantial financial impact on the bank.
See: Fintech Opportunities in the Wake of Tightened Credit Liquidity in Canada
- Regulatory and Leadership Pressure:
- This protracted resolution process has strained relations with the regulator and increased pressure on CIBC's senior leadership.
- OSFI expects bank management and boards of directors to identify risks and ensure sound loan underwriting for residential mortgages.
- The issues identified by CIBC and OSFI only affect a small part of CIBC's $266-billion Canadian mortgage portfolio, largely due to administrative oversights and IT system flaws.
- However, their discovery has generated turbulence in one of CIBC's core businesses, given CIBC's high exposure to Canada's mortgage market, with around 55% of its loan book being mortgages and other real estate-secured loans, these issues have rekindled old investor anxieties.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Fintech Opportunities in the Wake of Tightened Credit Liquidity in Canada
Better Dwelling | Jun 20, 2023
Canada's bank regulator, the Office of The Superintendent of Financial Institutions, has increased the Domestic Stability Buffer (DSB) to 3.5% of risk-weighted assets in response to rising delinquencies and overleveraged households, which may create opportunities for fintech lenders offering alternative finance solutions.
- Regulatory Measures and Credit Throttling:
- Canada’s bank regulator, the Office of The Superintendent of Financial Institutions (OSFI), has increased the Domestic Stability Buffer (DSB) by 50 basis points to 3.5% of risk-weighted assets (RWA). This move, which follows a similar-sized increase in February, is designed to curb credit and raise borrowing costs amid concerns over a potential risk event. The increased DSB implies banks will need to set aside more capital, which could tighten credit availability and drive up costs for borrowers.
- This development presents a potential opportunity for fintech firms to fill the credit void left by traditional banks. By offering alternative lending solutions, fintech companies can step in to meet the demand for credit, potentially gaining market share in the process.
- The move to raise DSB marks the end of an era of low rates.
See: As Interest Rates Climb and the Tide Goes Out, BNPL’s Resiliency Will be Tested
- The financial environment is becoming more stringent, with regulators demanding higher levels of capital buffers. Fintech firms could capitalize on this by offering more flexible and accessible financial products and services. Fintech innovations such as risk modelling, credit scoring and AI can be utilized to provide customized, affordable credit solutions.
- Response to Overleveraged Households & Rising Delinquencies:
- The regulator's decision comes at a time when Canada’s systemically important banks are extending mortgage repayment terms longer than typically allowed.
- This move seems to be an attempt to avoid causing hardship for overleveraged borrowers. Increasing the DSB forces banks to become more conservative with their lending practices.
- By leveraging technology to assess risk, fintech firms could provide loans to customers who may be considered overleveraged by traditional standards, yet still have the capacity to repay.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Visa Survey: Insights into Consumer Preferences for Open Banking
Visa Navigate | Jun 13, 2023
Visa’s study highlights the pivotal role of value proposition and consent management in consumer adoption of open banking services, shaped by preferences and distinct consumer personas.
- A study by Visa underlines the importance of two pillars, value proposition and consent management, in fostering a strong relationship between financial service providers and consumers within the open banking landscape.
- As providers prioritize these areas, open banking-driven services are likely to be more accepted, leading to increased consumer comfort and trust, lower costs, higher revenues, and mitigated risks.
- The research identified three consumer personas – "Cautious and Careful," "Steady Forward," and "Full Speed Ahead," aiding businesses to develop personalized solutions.
Select Consumer Preferences - Read the full report
- Consumer Comfort is Key: Comfort levels improve when consumers receive open banking-powered services in exchange for authorized access. This promotes trust and increases customer interactions, propelling the adoption of such services.
See: Will Open Banking Launch in Canada This Year?
- Desired Benefits:
- Consumers are more willing to share their data with third parties when certain benefits are offered.
- These include sending and receiving money digitally (65%)
- Viewing finances in a single app (50%), and
- Personalized products and services (46%).
- Expanded access to credit & financing is also favored but at a lower rate (31%).
- Consumers are more willing to share their data with third parties when certain benefits are offered.
- Communications:
- Consumers prefer different methods to be informed about how their data is shared and used by third parties.
- The majority prefer within the app (75%)
- Followed by email (53%)
- Text alerts (26%)
- Bank portals (20%)
- Consumers prefer different methods to be informed about how their data is shared and used by third parties.
See: “Open banking” May Cause Deposit Outflows, Warns U.S. Regulator
- Three Consumer Personas:
- Visa's survey reveals three distinct consumer personas - Cautious and Careful, Steady Forward, and Full Speed Ahead.
- Understanding these personas could help financial institutions and fintechs tailor their approach to cater to varying customer demands for open banking services.
Download the 21 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Investing for Your Future: Setting Yourself Up for Financial Stability
May 26, 2023
Image: Freepik/storyset
Investing your money is one of the most important things you can do for your financial future. By investing wisely, you can set yourself up for long-term financial stability and security. In this article, we'll take a look at some of the key things you need to know about investing for your future.
Why Invest?
The first question you might have is: why invest at all? There are several reasons why investing your money is a smart choice:
- Grow Your Money: Investing your money allows you to potentially earn a higher return than you would get from a savings account or other low-risk investment.
- Beat Inflation: Inflation can eat away at the value of your money over time. By investing, you can potentially earn a return that beats the rate of inflation, helping you stay ahead financially.
- Meet Financial Goals: Whether you're saving for a down payment on a house or planning for retirement, investing can help you achieve your financial goals.
Types of Investments
There are many different types of investments you can make, each with their own unique risks and potential rewards. Some common types of investments include:
- Stocks: When you buy a share of stock, you're buying a small piece of ownership in a company. Stocks can be volatile, but historically they have offered higher returns than other types of investments.
- Bonds: When you buy a bond, you're effectively loaning money to a company or government. Bonds are generally less risky than stocks, but they also offer lower potential returns.
- Real Estate: Investing in real estate can be a great way to build wealth over time. Real estate investments can provide both rental income and appreciation in value.
- Mutual Funds and ETFs: These are investment vehicles that allow you to invest in a diversified portfolio of stocks and bonds. They can be a good way to get exposure to a wide range of investments with a single purchase.
Creating a Plan
Before you start investing, it's important to create a plan. This should include your financial goals, your investment timeline, and your risk tolerance. Your plan should also take into account any other financial obligations you have, such as debt payments or other expenses.
Once you have a plan, you can start researching investments that align with your goals and risk tolerance. It's important to do your due diligence and make informed decisions about where to invest your money.
Monitoring Your Investments
Investing is not a "set it and forget it" proposition. It's important to monitor your investments regularly to ensure they're still aligned with your goals and risk tolerance. You should also rebalance your portfolio periodically to ensure you're not overexposed to any one type of investment and use the Prillionaires personal finance software to keep track of your assets.
Conclusion
Investing for your future is an important part of building long-term financial stability.
See: Emerging Investors: Gen Z Canadians Take the Lead in Global Investment Trends
By understanding the different types of investments and creating a plan that aligns with your goals and risk tolerance, you can set yourself up for financial success. Remember to monitor your investments regularly and make adjustments as necessary to ensure you stay on track.
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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Bank of Canada Announces Consultations for a Potential Canadian Digital Dollar (Until Jun 19)
Bank of Canada | Release | May 8, 2023
Join the Conversation: Bank of Canada Seeks Public Input on Potential Features of Digital Canadian Dollar
- The Bank of Canada is seeking to design a digital Canadian dollar that caters to the needs of Canadians. To achieve this, the Bank is conducting an online consultation to gather input from the public. The Bank is particularly interested in understanding which features are most important to Canadians, including their opinions on related topics such as the usage of the digital currency, necessary security features, and concerns related to accessibility and privacy.
- how people would likely use it
- what security features are important
- what concerns you have about accessibility and privacy
See: Digital Canadian Dollar: The Required Steps for Canada
- While the Bank of Canada plans to continue providing bank notes for those who prefer them, it's possible that bank notes may become less common in day-to-day transactions in the future.
- This could potentially exclude some Canadians from participating in the economy.
- Additionally, the widespread use of private cryptocurrencies or central bank digital currencies issued by other countries could threaten the stability of Canada's financial system and the role of the Canadian dollar.
- To counteract these potential issues, the Bank is exploring the possibility of issuing a digital Canadian dollar, which would offer Canadians an official, secure, and stable digital payment option.
- If a digital Canadian dollar is issued in the future, the Bank will continue to provide bank notes for those who want them. Cash isn’t going anywhere. At this time, a digital Canadian dollar is not needed. And any decision to issue one rests with Parliament and the Government of Canada.
- The Bank plans to release a report summarizing the results of the ongoing consultation later this year.
- The following link to the consultation page can be embedded in your stories: https://bit.ly/429uV0M.
See: Digital Dollar and Tensions Over Transaction-Monitoring
- For more information on the Bank of Canada’s work on a digital Canadian dollar, see https://www.bankofcanada.ca/digitaldollar/.
- The public consultation will be accessible on the Bank’s website until June 19, 2023, at 23:59 Pacific time.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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