Karsten Wenzlaff, Advisor
August 26th, 2025
Feb 12, 2026 | NCFA Fintech Market Activity | Payments and Market Infrastructure

Image: Freepik
On February 11, 2026, Jude Pinto, Chief Delivery Officer at Payments Canada, published a Q1 2026 Real Time Rail update.
The update starts by locking in what the program completed in 2025:
The update references changes to payment legislation and supervision as a driver of PSP onboarding. For background on the supervision track, NCFA covers the Bank of Canada RPAA registry.
With that base in place, the update sets Q1 2026 priorities across three areas: testing, onboarding, and operational readiness.
User acceptance testing continues into 2026. That keeps the focus on whether the rail works in participant workflows, not only in lab conditions.
Performance, security, and resilience testing begins later in the quarter to push the limits of the total solution in target environments. The update also flags peak volume testing so the system can handle a high volume of transactions in real time.
Payments Canada states it is expanding an always on environment with centralized fraud capabilities 24 hours a day, every day of the year. For companies building on real time payments, this places operating discipline on the critical path. Instant payments raise the cost of slow investigations, messy exceptions, and unclear ownership.
Access is expanding at the same time, with Payments Canada announcing five new payment service provider members named in the update, Wise, Float, Paramount Commerce, KOHO, and Brim Financial. The update states these new payment service provider members are now eligible to apply to participate on the Real Time Rail, and it ties broader participation to innovation, resilience, and economic growth.
Peak volume testing, security and resilience testing, and always on fraud operations push companies to prove control in live like conditions. Firms that sell fraud tooling, case management, exception handling, reconciliation, and treasury automation can win early mindshare by showing how they reduce failure cost when money moves instantly.
When peak volume testing and always on fraud operations become the baseline, which capability becomes the first real bottleneck, investigations, exceptions, or reconciliation?

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, 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: ncfacanada.org
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AI Policy Consultation | February 11, 2026
On February 5, 2026, Innovation Science and Economic Development Canada (ISED) released the official Engagements on Canada’s Next AI Strategy Summary of Inputs. The report summarizes a 30 day consultation that ran from October 1 to 31, 2025 and confirms that 11,300 participants submitted 64,600 responses across 26 policy questions about Canada’s next AI strategy.
The consultation addressed the full AI policy landscape, including research and talent, adoption across industry and government, education and skills, infrastructure resilience, national security, environmental sustainability, Indigenous data sovereignty and inclusion. The process ran under The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, supported by a National AI Strategy Task Force composed of startup operators, investors, researchers and civil society leaders.
This article focuses on what matters most for fintech founders and investors, where the strongest inputs from the consultation relate to capital formation, procurement design, intellectual property retention and domestic scaling incentives.
The consultation drew wide participation. 83% submitted as individuals. 17% responded on behalf of organizations, and reflected national engagement across technology, finance, academia, professional services and public institutions.
52% identified as interested Canadians. 19% came from business. 13% represented academia or research. The rest included government, associations and other sectors.
Ontario accounted for 39% of responses. British Columbia 20.6%. Alberta 7.8%. Québec 7.6%.
Across submissions, one theme stood out. Canada produces AI research. It struggles to anchor AI companies at scale.
Respondents called for sovereign capital vehicles, modernization of SR&ED and IRAP, and stronger intellectual property retention frameworks. Intellectual property retention refers to keeping ownership of core technology, patents and data assets inside Canada rather than transferring them through early acquisition or foreign incorporation. Stakeholders expressed a preference for patient domestic capital tied to retention conditions, not simply additional grants. That implies potential co-investment models, domestic head office commitments and scaling tools designed to prevent early exits or foreign acquisition.
Canada ranks among global leaders in AI research output. Yet growth stage capital is still significantly thinner than in the United States. In 2025, Canadian VC firms raised just over $2.1B, with fundraising concentrating as the five largest Canadian venture funds captured 83% of all capital raised while emerging managers raised $249M. That level of concentration narrows the number of scaled domestic capital sources available to support long runway AI and fintech growth.
When companies reach scale, many incorporate abroad or raise major rounds outside Canadian markets. Capital migration reduces ownership, long term tax capacity and domestic control over strategic assets. This consultation reflects recognition that Canada’s scaling architecture requires structural reform.
For fintech founders following new AI minister prioritizes growth over rules, this reinforces the need for commercialization outcomes and ownership durability rather than additional regulatory layering.
Respondents pushed for standardized procurement playbooks and real pathways from pilot to deployment. Suggestions were for coordinated procurement models that create anchor customers at scale.
Predictable domestic revenue reduces investor risk perception and strengthens valuations. It also strengthens Canadian firms’ credibility when competing internationally. Procurement design therefore influences capital formation and competitive positioning.
This matters most in regulated sectors. When government adoption aligns with frameworks such as the CIRO digital asset custody framework, compliance becomes a strategic advantage rather than a cost centre. Procurement validation can reinforce regulatory credibility and accelerate scaling.
Participants identified gaps in domestic compute capacity and reliance on foreign cloud providers. Calls for Canadian controlled infrastructure go beyond just hardware investment. They imply potential changes to data residency expectations, cloud dependency exposure and compliance thresholds.
Sovereign compute investment could open infrastructure financing opportunities while raising entry costs for firms dependent on foreign controlled platforms. Infrastructure choices influence market structure.
Submissions supported proportionate, risk tiered regulatory frameworks, independent audits and clearer liability standards. Respondents generally favoured governance models where obligations scale with actual risk exposure rather than one size fits all rules.
Regulatory preference was for clarity, predictability and alignment between risk level and compliance burden. High impact AI applications would face stronger safeguards, while lower risk use cases would not carry unnecessary constraints.
If thresholds are calibrated carefully and compliance pathways are clear, early stage firms gain certainty and investors price regulatory exposure more confidently. If risk categories are broad or implementation complex, governance costs rise and time to market slows.
The strategic issue is how regulatory architecture affects scaling speed, capital formation and Canada’s cost competitiveness relative to larger markets. Governance design influences who scales, who consolidates and who exits.
The consultation closed on October 31, 2025. The Engagement on Canada's Next AI Strategy summary report states that the inputs will inform drafting of Canada’s 2026 AI strategy, which the federal government plans to release later this year.
The report doesn't however specify any fiscal commitments or program design details. Those decisions will appear, if at all, in the final strategy document and subsequent budget measures.
From a market perspective, founders and investors should watch for concrete triggers for a sovereign capital vehicle with defined funding, commercialization linked SR&ED reform, procurement commitments beyond pilot programs, budget allocations for domestic compute infrastructure, and enforceable intellectual property safeguards.
If those elements appear with timelines and capital attached, they strengthen Canada's domestic scaling environment. If not, capital migration and entrepreneur drain will likely persist. The final strategy with design and implementation choices will be known this year.
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, 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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Feb 9, 2026 | NCFA Fintech Market Activity | Platform Monetization and AI Infrastructure

On February 9 2026, OpenAI began testing ads in ChatGPT in the United States for logged in adult users on the Free and Go subscription tiers.
OpenAI says Plus, Pro, Business, Enterprise, and Education tiers will not include ads. The company also says ads don't influence ChatGPT answers and it keeps conversations private from advertisers. Advertisers only receive aggregated performance data such as views and clicks.
OpenAI says ads will appear as clearly labelled sponsored listings that are visually separated from the organic answer. It also says users can dismiss ads, share feedback, manage ad personalization, and delete ad data. If a user prefers not to see ads, OpenAI says they can upgrade to Plus or Pro plans, or opt out of ads in the Free tier in exchange for fewer daily free messages.
This test follows earlier commercial integrations connecting AI platforms with financial infrastructure. In 2025, OpenAI partnered with PayPal on ChatGPT Instant Checkout functionality, demonstrating how conversational AI and fintech rails are already intersecting in commerce contexts.
ChatGPT isn't just a place where people consult. It's a place where people compare options as they are already close to a decision. That's important because ads placed inside a timely decision moment can convert demand faster than ads placed in a scrolling feed.
For fintechs, this adds a new acquisition layer that sits upstream of search and downstream of intent. Founders who rely on organic discovery or comparison traffic should assume this channel will become part of the distribution stack if OpenAI expands beyond a limited test.
OpenAI says it selects ads by matching advertiser submissions to the topic of the conversation, past chats, and past ad interactions. That selection method will shape what winning looks like (similar to the power of Google search, and we know how that's turning out). If relevance depends on conversation context, product positioning and category language, it may matter as much as a strong bid strategy.
There is also a compliance edge that finance teams should watch. Sponsored placements inside a conversational interface can blur user expectations, even with clear labelling. OpenAI says it will not show ads near sensitive or regulated topics such as health, mental health, or politics, and it says it will avoid showing ads to users it predicts are under 18. If OpenAI later expands categories or geographies, regulators may examine how financial promotions work in a chat interface, how disclosures show up, and how users interpret sponsored content when they are asking for guidance.
The competitive response will follow quickly if engagement holds; think Google, Microsoft, Amazon, Stripe, Shopify, Fintech ad networks and more. If conversational ads convert, other AI platforms will test their own models. If users push back, competitors may try to win trust by staying ad free. Either outcome changes the market. It changes how products compete for attention and how platforms price access to users.
If people begin comparing financial products inside AI conversations instead of search, what becomes the sustainable competitive advantage, brand trust, distribution partnerships, or the ability to convert inside the chat itself?
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, 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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February 9, 2026 | NCFA Fintech Insight | Strategic Finance and Infrastructure

Image: Freepik/upklyak
On February 3 2026, Montreal International promoted the Defence Security and Resilience Bank initiative as part of its effort to position Montreal as a potential hub for a global defence finance platform focused on strategic resilience and security capital formation. Montreal International is a publicly funded economic development organization supported by federal, provincial, municipal, and private sector partners. On December 17, 2025, Toronto already pitched its bid to make Toronto the home of DSR Bank. So has Ottawa, Vancouver, and Halifax.
The DSR Bank initiative was launched under the leadership of Rob Murray, former NATO Head of Innovation, who now serves as Chief Executive Officer of the DSR Bank Development Group. He has been central to developing the bank’s concept, governance framework, and early design strategy. It's structured as a multilateral capital formation platform to mobilize institutional capital for defence, dual use tech, and resilience infrastructure aimed at governments, sovereign funds, development institutions, and private investors.
The model resembles a structured institutional capital pool rather than a commercial bank. It would channel long term investment into defence supply chains, industrial capacity, and strategic infrastructure.
Canada has historically approached strategic finance through fragmented federal programs, export financing vehicles, and institutional lending channels. A coordinated capital platform of this scale would represent a structural evolution in how defence finance is organized.
Large scale capital vehicles now rely on digital infrastructure to function efficiently. Institutional platforms require:
• Cross border settlement rails
• Structured credit distribution tools
• Automated compliance reporting
• Digital identity verification
• Treasury management systems
• Secure asset tracking and reconciliation frameworks
Canada doesn't currently lead peer markets in payments modernization or open banking implementation but it's making headway. The Retail Payment Activities Act introduced a safeguarding and operational risk baseline, with registration opening in November 2024. Broader financial infrastructure modernization remains uneven compared to Europe and parts of Asia.
If the DSR Bank advances, the architecture beneath the capital will matter as much as the capital itself.
Canada's own experience shows that large financial frameworks become harder to modernize once core governance and operational structures are set. Early design decisions determine speed, transparency, and long term adaptability.
The DSR Bank is presently framed around banks, governments, and institutional investors. That foundation is essential. But modern capital platforms increasingly depend on digital infrastructure providers that support reporting, settlement, and liquidity management.
If Canada intends to position any of its great provinces or territories as a global defence finance hub, embedding capital infrastructure financial technology expertise at the design stage could strengthen execution credibility and investor confidence.
Canada has recent examples that show how large initiatives become harder to modernize once core structures are set.
Open Banking Implementation Delay
Canada began formal work on consumer driven banking in 2018, yet operational rollout has trailed peer markets. Early design focused on policy structure and liability allocation, while technical and ecosystem readiness moved more slowly. See the final open banking advisory committee report.
Real Time Payments Modernization
Payments Canada’s real time rail has experienced timeline revisions as governance, risk frameworks, and integration complexity became clearer during development. Coordinating multiple institutions and technology providers has required program level adjustments. See the real time rail payment system overview.
Phoenix Payroll System
The federal Phoenix payroll transformation remains one of Canada’s clearest infrastructure cautionary cases. The Auditor General found that system readiness and implementation decisions led to widespread pay errors and long running remediation. See the Auditor General Phoenix report landing page and the Phoenix audit report (44 page PDF).
Canada Infrastructure Bank Deployment Pace
The Parliamentary Budget Officer has tracked a persistent gap between the Canada Infrastructure Bank’s disbursement pace and its stated targets, highlighting execution and delivery constraints that can emerge once governance and operating models are set. See the PBO update on Canada Infrastructure Bank spending outlook.
These cases are not failures of ambition. They illustrate a recurring pattern. When operational builders and infrastructure participants are engaged after structural decisions are locked in, modernization becomes more expensive and slower to execute.
The DSR Bank initiative is being advanced with participation from large commercial banks. That is expected. Banks bring capital, balance sheet depth, regulatory experience, and global distribution. Scotia Bank and CIBC announced support, and so has TD bank, RBC bank, and international major banks such as JP Morgan and Deutsche Bank.
However, infrastructure design isn't only about capital. It is also about execution architecture, digital onboarding, identity verification, cross-border payment integration, compliance automation, and secure API connectivity. These are areas where fintech firms often build faster and operate closer to modern digital workflows.
If fintechs are engaged only after structural governance and system architecture decisions are finalized, the result can be slower integration, higher compliance retrofitting costs, and reduced competitive diversity.
Early participation allows design decisions to account for digital identity systems, embedded finance models, cross border transaction tooling, and programmable settlement layers that defence and resilience financing may increasingly require.
Montreal International’s pitch positions the city as a strategic hub for financial innovation and international collaboration. If that positioning includes fintech operators alongside global banks at the planning stage, it could strengthen the technical credibility of the initiative in addition to its capital backing.
The question is not whether fintech replaces banks. The question is whether ecosystem architecture benefits from involving builders who design digital infrastructure daily, before governance structures become fixed.
If Canada hosts a global defence capital platform, should digital capital infrastructure be embedded from day one?
The DSR Bank proposal reflects provincial ambition (not federal coordination, nor execution). Whether it becomes a durable strategic finance platform will depend not only on institutional capital, but on how effectively its underlying infrastructure is built.
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, 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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