How proceeds from lending or staking are taxed depends on the nature of the returns, which could be hard to determine, UK's tax agency says.
So what is financial exclusion in the era of Open Finance?
Greater competition in retail banking is driving choice and lower prices for consumers and small businesses, despite the financial impact of the pandemic.
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
Quebec and Desjardins invest $1.1 million in WALO who helps kids develop healthy financial habits
WALO | Release | Feb 28, 2022
CNW Group/WALO
Quebec and Desjardins contribute to $1.1 million investment in Quebec fintech with global ambitions
MONTREAL, Feb. 28, 2022 /CNW Telbec/ - Financial literacy and managing money are essential skills our kids will need throughout their lives.
"More than half of Canadians are living paycheck to paycheck. It's more pressing than ever to provide solutions that help kids learn good financial habits. We need to build a solid foundation to ensure the financial well-being of future generations. That's our goal." - Rim Charkani, CEO and Founder of WALO.
From allowances to task management, from savings goals to making financial literacy fun, the WALO app gives kids an opportunity to learn from real-world situations. By giving kids prepaid debit cards and opening them up to everyday financial experiences, WALO is helping users learn about accountability when it comes to personal finances.
Leading partners contribute $1.1 million
The young Quebec startup recently completed a financing round in which it raised $1.1 million thanks to some strategic partnerships, including the government of Quebec, Desjardins, Granicus Group and WatchMojo and several angel investors.
See: Fintech Startup WALO Goes Live With A Gamified Financial Literacy App for Kids and Parents
- Impulsion PME: The Quebec government is using the program, designed to leverage investment in Quebec, to support WALO
- Desjardins and WALO CEO Rim Charkani will continue to write the next chapters of a story they started together
- Granicus Group and WatchMojo got the ball rolling with the initial investment
The financial support for WALO will help the company accelerate growth. It will also make it easier for them to get their banking solution of prepaid cards to market, helping parents teach their kids about managing their first bank account.
Podcast: Fintech Fridays EP42: Insights into the Teen Banking Sector and Improving the Financial Well-being of Families
The company will progressively roll out its new bank accounts for kids and prepaid MasterCard credit cards later this year. Parents who are interested can already put their names on a waiting list to get access to special offers.
"We are proud to support WALO, which promotes better financial literacy for both the young and the older people and contributes to the development of a more responsible and efficient society. Our teams in each region of Québec have all of the necessary tools, including the Impulsion PME program, to support and help drive the growth of promising young companies." - Guy LeBlanc, President and CEO of Investissement Québec
The project was conceived during the Cooperathon, Desjardins's popular open innovation competition. WALO then moved into Desjardins's Startup in residence, an accelerator for young businesses.
"We've worked together right from the beginning because the missions and the values of our organizations match up well. Managing personal finances is a real source of stress in our society. We need to give parents and families the tools they need to improve their financial literacy. We definitely see WALO as part of that solution." - Martin Brunelle, Vice-President, Growth, Acquisitions and Development Office, Desjardins
View the original 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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UK: Tax Regulator Updates Staking and DeFi Lending Guidance
Coindesk | Sandali Handagama | Feb 2, 2022
How proceeds from lending or staking are taxed depends on the nature of the returns, which could be hard to determine, UK's tax agency says.
Her Majesty’s Revenue and Customs (HMRC), the U.K.’s tax agency, has updated its guidance on the taxation of returns from decentralized finance (DeFi) lending and staking in proof-of-stake networks.
See: Foreign property tax implications associated with owning cryptocurrencies
According to the new guidance, published Wednesday, how a return from lending or staking is taxed depends on whether it is considered capital or revenue. But deciding if a return is capital or revenue is complicated, as the HMRC itself admits.
“The lending/staking of tokens through decentralized finance (DeFi) is a constantly evolving area, so it is not possible to set out all the circumstances in which a lender/liquidity provider earns a return from their activities and the nature of that return. Instead, some guiding principles are set out,” the update said.
The HMRC first published guidance on how returns from staking are taxed in March 2021. According to last year’s guidance, the taxation of staking activity depended on whether the activity amounted to a “taxable trade,” the wording almost identical to the rules laid out for taxing crypto mining.
In a statement published across multiple social media platforms, the digital assets trade association CryptoUK said the new guidance significantly alters the classification and treatment of DeFi lending and staking for tax purposes in the U.K.
See: Crypto-tax primer in Canada
According to the new guidance, the return may be treated as revenue or capital based on a number of factors:
- Whether the amount of the return was known at the time the agreement was made;
- whether the return is paid periodically or upon repayment of the principal; and whether the period of the lending is short term or long term;
- Another factor is how the return is realized: If it is realized through the disposal of a capital asset, it would indicate a capital receipt.
CryptoUK:
“This means that the transaction will be subject to Capital Gains Tax reporting at that moment (token leaves the user's wallet), even though control still lies with [users], and they expect that the asset is still theirs and will be returned at a point in the future,” the CryptoUK statement said.
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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Apple announces tap-to-pay contactless payments on iPhone
TechCrunch | Aisha Malik | Feb 8, 2022
Apple has announced plans to introduce a new Tap to Pay feature for iPhone that turns the device into a contactless payment terminal. The company says that later this year, U.S. merchants will be able to accept Apple Pay and other contactless payments, including Google Pay, by using an iPhone and a partner-enabled iOS app.
The feature will be enabled for the iPhone XS and later models. Tap to Pay on iPhone will be available for payment platforms and app developers to integrate into their iOS apps as a payment option for their customers. Stripe will be the first payment platform to offer Tap to Pay on iPhone to customers through a new Shopify app. Apple says additional payment platforms and apps will follow later this year.
See: Meta’s WhatsApp has launched a crypto payments U.S. pilot
Once Tap to Pay on iPhone launches, merchants will be able to unlock contactless payment acceptance through a supporting iOS app. At checkout, the merchant will ask the customer to hold their iPhone or Apple Watch near the merchant’s iPhone and the payment will then be securely completed using NFC technology. No additional hardware is required to accept contactless payments. Apple also says that with Tap to Pay on iPhone, customers’ payment data is protected and that all transactions that are made through the feature are encrypted.
“As more and more consumers are tapping to pay with digital wallets and credit cards, Tap to Pay on iPhone will provide businesses with a secure, private, and easy way to accept contactless payments and unlock new checkout experiences using the power, security, and convenience of iPhone,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, in a statement.
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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How Proptech is changing the real estate industry
Perch | Kat Wong and Joey Li | Feb 9, 2022
The growing necessity for innovation in many industries has become stronger than ever before, especially with consumer expectations steadily rising over the years. The residential real estate industry in particular is fast paced and always evolving with new emerging technologies designed to improve the traditional ways of qualifying for a mortgage, buying, selling and managing real estate transactions.
What is Proptech and how it’s changing the way realtors do business
Technology has now entered almost every industry, from education and healthcare to construction and real estate. Proptech, also known as property technology, is the term used to describe the implementation of technologies and software to improve the function and experience in real estate markets.
With the rapidly changing digital landscape and shifting consumption patterns, this type of technology transforms the industry by identifying gaps and inefficiencies while providing innovative solutions using analytics, such as overhauling product and service offerings, automating processes and streamlining real estate initiatives through data-driven applications and tools. This means Realtors need to keep pace with innovation, otherwise they could lose out on potential opportunities.
Proptech has also changed the way information is accessed, collected and stored. Thanks to better and more efficient data gathering, industry stakeholders such as real estate agents and broker now have access to more information than ever before, resulting in faster and more accurate results. With data for mortgage rates, property history as well as buying trends and predictions readily available, realtors can make smarter analytical decisions and reach a broader audience.
Innovative platforms are on the rise to automate deal acquisitions, improve communications and property management, allowing agents to save more time and better serve their clients. Showing homes to prospective clients and closing deals have become fast and more convenient for both buyers and sellers, as technology has changed the way properties are listed accelerating average closing times.
Not to mention the increasing popularity of virtual home tours as they allow realtors to give potential buyers an interactive buying experience without having to travel anywhere, while drones offer 360-degree aerial coverage to easily capture beautiful photos of an entire property.
Innovation is changing the way homeowners and buyers purchase and manage their real estate investments
Emerging technologies are affecting the way consumers shop as they gravitate towards smart and innovative ways to make purchases, and the same applies for real estate. Consumers also want more insight and transparency when it comes to their financial data and like to be offered personalized solutions to their own specific pain points. To tackle this issue, innovative platforms are being built to allow consumers, mortgage brokers and realtors to have access to real time application statuses, timelines and notifications of outstanding requirements all through one channel so they can manage their property investments better.
With the necessary information and knowledge from these resources, first time home buyers are able to quickly understand their purchasing power and figure out how much ‘house’ they can afford. Consumers also have access to various digital tools that will allow them to quickly perform tricky mortgage calculations or understand confusing closing costs. To top it off, it's easier than ever for consumers to buy real estate and instantly compare mortgage rates from several lenders, all within a few clicks, when it would traditionally take weeks to hear back.
Digital technologies have improved the overall industry for both consumers and financial institutions but it is just the start. Business needs are continuously evolving parallel to the needs and wants of consumers and with the rate that existing systems are developing, who really knows what the real estate industry will look like in the next few years, but one thing is for certain, it’s time to sit up and pay attention.
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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Innovation 360 Webcast: Driving financial inclusion in the U.S.
Fast Company | Innovation 360 Webcast | Jan 20, 2022
Living paycheck to paycheck is one of the biggest sources of economic stress for Americans today—and these anxieties weigh on mental and physical health too. Two-thirds of the U.S. population struggles with one or more aspects of their finances, including spending, saving, borrowing, and planning.
See: So what is financial exclusion in the era of Open Finance?
These individuals have massive unmet needs because traditional banking just doesn’t work for them. Fintech innovations, such as a new offering to be introduced at this event by H&R Block, are changing the landscape and creating financial inclusivity for those who need it most.
Watch the 'on demand' webcast --> 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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So what is financial exclusion in the era of Open Finance?
Fintech Galaxy | Lisa Gutu | Jan 19, 2022
So what is financial exclusion in the era of Open Finance?
Despite the impact of the phenomenon, little is known about which categories are excluded from the financial market. These are usually classified as follows:
Unbanked – individuals or organisations who don’t have any access to a bank’s or financial institution’s services.
Underbanked – individuals or organisations who have limited access to financial services and still rely on using cash in most operations, thus depriving themselves of important banking services, like using credit cards or getting loans.
See: Minister Freeland releases final report with 34 recommendations on Open Banking from the Advisory committee
Underserved – this is a term used to describe the two aforementioned categories: the unbanked and the underbanked. Underserved communities are most often from:
- People with low incomes from low and middle-income countries;
- People with low incomes or who are marginalised in high-income countries;
Women and expats in several parts of the world; - Micro businesses – although MSMEs constitute a high percentage of the total number of businesses in the world, financial exclusion is the main constraint keeping them from developing.
Financial exclusion doesn’t affect only the developing countries. It involves the difficulty in accessing and using all those financial services necessary for the complete development of the daily life of individuals and to their full involvement in society.
Unbanked and underbanked individuals are located across the world in both wealthy countries and undeveloped countries. According to data from the World Bank, as of 2017 — the most recent year for which figures are available — 1.7 billion people were unbanked globally.
See: Banking barriers: How the Canadian financial sector excludes Black entrepreneurs, stifling innovation
Younger people are also more likely not to have bank accounts or to be underserved by banks than older people. Around 30% of unbanked people were between the ages of 15 and 24 in 2017.
Underserved communities are most often from:
- People with low incomes from low and middle-income countries;
- People with low incomes or who are marginalised in high-income countries;
Women and expats in several parts of the world; - Micro businesses – although MSMEs constitute a high percentage of the total number of businesses in the world, financial exclusion is the main constraint keeping them from developing.
Open banking is meant to generate new benefits and opportunities for economies and societies by:
Providing access to responsible credit. Properly designed open banking products, through the use of alternative financial data, can expand access to financial insights that help increase consumers’ chances to get approved for loans and accurately assess what they can afford. Such data can include mobile bill payments, rent payments, utility bill payments, and so on.
See: Open Finance data adoption varies by country (but one thing is certain)
Enabling participation in the global economy. Open banking is spurring economic growth and driving financial inclusion by helping millions upgrade from cash-based transactions to digital financial transactions in a secure environment.
Supporting MSEs. Micro and small enterprises get access to affordable financial tools that address their needs including accounting and cash management. These processes become automated under open banking and easier to achieve from a technical point of view.
Supporting the contingent workforces. Freelancers have been underbanked for a long time, and with all the open banking-based opportunities, this is changing. They get access to affordable financial products and benefit from nano-loans and micro-insurance, which is exactly what they’ve lacked up until now.
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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FCA review finds evidence of growing competition in retail banking
FCA | Release | Jan 20, 2022
Greater competition in retail banking is driving choice and lower prices for consumers and small businesses, despite the financial impact of the pandemic.
In an update to its 2018 strategic review of retail banking, the FCA found that, while still strong, there are signs large banks’ historic advantages are starting to weaken, driven by digital innovation and changing consumer behaviour. The economic environment – in particular sustained low interest rates – has also constrained banks’ financial returns.
See: When Big techs and fintechs own banks
The share of personal and micro-business current accounts held by digital challengers rose between 2020 and 2021, while the largest banks saw their share fall. This trend occurred even as large lenders lent proportionately more to microbusinesses during the pandemic.
Evidence suggests that intense competition, partly driven by the increased use of brokers, has benefited mortgage borrowers through lower interest rates, though these make it more difficult for smaller lenders to compete.
Kate Collyer, Chief Economist at the Financial Conduct Authority, said:
'Competitive pressures and innovation are starting to deliver for retail banking customers, with greater choice, lower prices and more convenient ways to bank. But changes that may benefit many of us can also be a risk to those in vulnerable circumstances, which is why we have put in place guidance on the closure of branches and ATMs. We are also consulting on a new consumer duty to set higher expectations for the standard of care that firms provide.
FCA reforms to the credit market are also having an effect, with lenders’ yield – a measure of financial return – for unarranged overdrafts falling sharply in response. Measures put in place by the FCA to support borrowers financially affected by the pandemic also resulted in a drop in yield on authorised overdrafts.
See: Canada’s Competition Problem: 7 Reasons
Adoption of digital innovations by banks and their customers, accelerated by the pandemic, has also improved service quality and satisfaction, particularly for mobile and app-based users. Further improvements through innovation are likely to be enabled by initiatives that allow the sharing of consumer data in secure and convenient ways.
Continue to the full article --> here
Download the 28 page PDF report 'Strategic review of retail banking business models' --> 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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