Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Venture Funding and Building
Visa Expands Stablecoin Settlement Across CEMEA
Stablecoins | Dec 1, 2025
Instant Settlement Infrastructure for Global Payment Flows
On November 26 2025, Visa announced an expansion of stablecoin settlement across Central and Eastern Europe Middle East and Africa through a new partnership with Vancouver-based fintech, Aquanow. The integration gives issuers and acquirers on the Visa network the ability to settle transactions in approved stablecoins such as USDC and introduces a settlement rail that clears value faster at lower cost and with fewer operational steps than traditional systems that rely on closing hours and multi-party workflows.
See: Aquanow Unveils the AQN Digital Ventures Fund for Nextgen Blockchain Startups
Visa first used USDC for settlement in 2023 and now records an annualized settlement volume above $2.5 billion proving that institutions are already incorporating stablecoin settlement in daily operations, moving transaction flow across markets and supporting teams that seek real-time settlement, instead of fixed windows.
Aquanow supports Visa's stablecoin expansion with digital asset infrastructure that processes billions of dollars in monthly activity. The company works with banks neobanks brokerages and payment firms, reporting a four year revenue growth rate of 3022%, earning it multi-year recognition as the 8th best Deloitte Technology Fast 50 top companies in 2024.
Faster Settlement For Global Institutions, Banks and Fintechs
Many institutions still work around systems that close on weekends, rely on several intermediaries, and delay the release of funds. These delays hold capital in transit and create uncertainty for teams that manage liquidity each day. Visa and Aquanow address this gap by offering a rail that runs at all hours and clears transactions faster than older cross border settlement paths.
This model reduces operational drag and gives financial institutions, banks and credit unions a clearer view of cash position in markets with uneven settlement conditions.
See: Visa Extends Stablecoin Settlement to Four Blockchains
This supports services that rely on dependable settlement such as global ecommerce platforms marketplace payouts and remittance flows.
- Quicker settlement means treasury teams gain more predictable access to funds
- Payment operators remove steps that slow down processing
- Global processors improve payout cycles across markets that rely on complex bank to bank networks
- Product teams can design services on top of a rail that runs by the clock rather than by local banking windows
- Customer teams can offer faster and more reliable payout times
Aquanow Builds Global Platform Under VARA Regulation
Aquanow launched in Vancouver, Canada and built a global digital asset platform that now powers part of Visa’s settlement expansion. The company maintains a publicly stated money services business registration with FINTRAC on its own website and operates a regulated entity in the United Arab Emirates through Aquanow ME FZE. The UAE entity received approval from the Virtual Assets Regulatory Authority for broker-dealer services, lending and borrowing, and management and investment services.
Read: Canada Releases The First Draft Of The Stablecoin Act
This structure shows how a Canadian born fintech can scale global settlement infrastructure by operating in markets that provide clear digital asset licensing. It's another great example of the capability of Canadian firms to contribute to global payment modernization, delivering digital settlement capacity within a regulated international environment. It also provides policymakers a reference point for how digital settlement can operate at production scale within clear regulatory frameworks.
Why It Matters
Visa's stablecoin settlement expansion across CEMEA, in partnership with Canadian fintech Aquanow, sets a new expectation for settlement speed and efficiency. Companies and institutions want faster movement of value, lower cost, and better control over liquidity. Digital asset rails deliver these results in ways legacy systems struggle to match. This partnership offers a clear example of modern settlement infrastructure that supports live cross border operations and works inside a regulated environment at scale.
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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Market Forces Pressuring Fintech Plans For 2026
Strategic Planning | Nov 28, 2025
Image: Freepik/rawpixel.com
Fintech Considerations For 2026 Strategy
2026 is approaching and fintechs are entering the new year with clear signals on how capital is being deployed, how financial institutions are investing in automation and AI driven capabilities and which policies will shape financial infrastructure. Markets place a higher premium on efficiency, governance and resilience as financial institutions modernize data access and digital settlement. Retail investor participation also expanded as equity crowdfunding set new records in Canada, strengthening another channel of capital formation.
See: United States Genesis Mission And Canada’s Competitiveness
United States tariffs and interest rate expectations continue to influence capital costs and enterprise demand across North America. Singapore FinTech Festival 2025 recently wrapped and outlined what global leaders expect over the next decade. This article provides an overview of how these forces intersect and will impact 2026 conditions, helping fintechs define runway, product plans and investor alignment for the year ahead.
Capital Planning End of 2025
Global investors concentrated capital into fewer fintech companies through 2025. KPMG tracked $44.7B across 2,216 global fintech deals and reported stronger momentum in digital assets and AI powered platforms. The global fintech funding review for 2025 notes uneven performance across payments and infrastructure and continued strength in digital asset investment. AI influence extends across every funding stage and drives the clearest premium in investor behaviour.
Canadian fintechs raised about $1.62B across 60 deals. KPMG data reported by Lexpert shows a steep decline from record 2024 levels as investors became more selective and disciplined. KPMG’s H1 2025 report confirms the trend toward fewer large cheques and more careful deployment.
CVCA reported $2.9B across 254 Canadian VC deals with average cheque sizes near $11.4M. The VC deployment across Canada in H1 2025 reported that early stages represented more than half of deal count but only 10% of dollars. NCFA’s seed review shows AI companies raising about $24M across 12 early stage rounds and fintech attracting about $9M across pre-seed and seed combined in the seed investing trends in H1 2025.
Canadian founders also turned to retail investors through regulated equity crowdfunding channels. FrontFundr, a leading Canadian investment crowdfunding platform, enjoyed a banner year raising CAD $68.3M across 66 campaigns in 2024 with 4,226 individual investments, its strongest year on record. This growth in community capital raising speaks volumes that diversified sources of early stage capital can complement VC allocations during selective cycles. For fintechs, retail participation can help extend runway, validate demand and reduce dependence on a small number of institutional investors.
AI remains the strongest source of valuation strength across the fintech sector. NCFA’s analysis shows that AI fintechs attract a 242 valuation premium compared with non AI peers. This tells fintechs that investors reward automation, accuracy and data advantage even during slower deployment cycles. AI's impact will continue to drive product development strategy, unit economics and growth planning for 2026.
Canada Moving On Open Banking, Payments, Stablecoins, While Pausing Climate Disclosure
Open banking moves into implementation. Budget 2025 commits to a consumer driven banking framework that designates the Bank of Canada as the supervisor for accredited participants and sets rules for data access, liability, security and technical standards. The consumer driven banking framework in Budget 2025 changes data mobility from one off arrangements to regulated data rails. These data rails also support AI adoption because models require secure access to high quality data. Fintechs that prepare for accredited access and safe data workflows will gain an advantage as institutions deploy AI into risk, compliance and customer operations.
Fintechs should expect accreditation activity, testing and early stage integrations as technical standards move toward production readiness through 2026.
Retail Payment supervision is operational and supports future access to real time settlement. Under the Retail Payment Activities Act, the Bank of Canada supervises payment service providers to ensure operational resilience and safeguarding of client funds. This oversight creates the regulatory foundation required for participation in core payment systems. Payments Canada continues development of the Real Time Rail (expected Q2 2026), while the Bank’s commentary on cashing in on payments innovation explains how regulation strengthens competition and prepares the foundation for modernized settlement. It also sets the operational standards that AI systems must meet for real time fraud detection, liquidity monitoring and compliance automation. Fintechs should plan for higher compliance expectations in 2026 and a clearer pathway into national payment systems once real time settlement becomes available.
See: Canada Open Banking Commercialization Roadmap
Stablecoin regulation advances. Canada released the first draft of its federal stablecoin legislation which sets out rules for high quality reserves, custody, redemption, disclosures and prudential oversight. NCFA’s summary of the first draft of the Stablecoin Act outlines a government framework that brings fiat backed stablecoins into a supervised environment. As tokenized settlement expands, AI will move deeper into treasury, reconciliation, fraud control and settlement routing. Fintechs that design early AI enabled settlement workflows will operate more efficiently under these rules. Fintechs involved in digital money, cross border payments or tokenized settlement should expect stronger regulatory clarity across 2026.
Climate and sustainability disclosure remains paused. CSA halted its mandatory climate disclosure rule in April 2025 and signalled the pause will continue. Although the rule is on hold, enterprise buyers and investors still assess climate and transition risk data during diligence. The CSA climate disclosure update notes that existing materiality rules and OSFI Guideline B-15 still apply through 2026. AI plays a growing role in climate analytics and transition planning, which means fintechs that use AI for risk scoring and scenario work will offer enterprise buyers more actionable intelligence during diligence. Fintechs should assume voluntary disclosure is expected even without a formal mandate.
Competitiveness pressure remains. Bank of Canada leadership warns that slow progress on open data, payment modernization and digital infrastructure affects productivity and innovation. Reuters coverage of the warning on over regulation and competitiveness highlights the need to accelerate foundational reforms. AI impacts that competitiveness gap because institutions deploy AI into fraud detection, lending, treasury and customer workflows. Fintechs that use AI with strong governance will operate more efficiently, support regulated environments and scale faster when data access and payment rails modernize.
For fintechs, these signals point to regulated data access, modern payments and digital assets becoming the highest value infrastructure themes for 2026..
United States Tariffs, Rates And Capital Conditions
Fintechs operating in the North American economy are being impacted by United States tariffs, rate decisions and political volatility. United States imposed tariffs cut Canada’s projected GDP growth to about 1.4% in 2025 and 1.6% in 2026, according to IMF linked projections. These estimates reflect weaker demand and reduced investment appetite across export dependent sectors. Fintechs should treat tariffs as a structural constraint for 2026, not a short term shock.
Markets now expect the Federal Reserve to cut rates in December. Polymarket shows an 87% chance of a 25 point rate cut, based on more than $183M in trading volume, which reflects strong real time sentiment. Economists still expect only small rate cuts through 2026, with United States growth around 2% and inflation near 2.6%. Fintechs may receive some cost of capital relief but investors will continue to expect efficient spending, strong revenue performance and clear evidence of product viability at today’s cost structure.
See: Canada Expanding Economic Ties With UAE India And Africa
Canadian monetary authorities modeled the tariff impact and warned that trade friction could reduce investment by about 12% and lower output by almost 3% over two years. The Bank’s scenario work on tariffs and structural change supports planning for lower investment and slower recovery.
Fintechs should prepare for slower enterprise procurement cycles and more selective purchasing behavior.
Globally Expect Slower Trade, Fragmented Rules And AI Pressure
Global growth projections dropped to about 2.8% in 2025 as tariffs spread and trade tensions widened. Export Development Canada’s global economic outlook for 2025 and 2026 forecasts Canadian growth around 0.8% in 2025 and 1.1% in 2026. Fintechs should expect slower demand, higher operating costs and more uncertainty across key trading regions.
An MIT study released in 2025 shows that about 12% of United States jobs could be automated using current AI tools today. As AI pressure intensifies it drives enterprise demand for automation, cost control and compliance. It also accelerates talent scarcity and raises expectations for governance and model transparency across financial services.
Global regulatory fragmentation expands. The EU AI Act, United Kingdom digital regulation, Singapore AI governance frameworks and China data sovereignty rules all diverge. If fintechs want to scale internationally in 2026, they must build modular compliance, auditability and data governance into core architecture.
What SFF 2025 Says About 2026 And Beyond
SFF 2025 provided a clear view into the next cycle of fintech infrastructure and the capabilities that institutions expect. The SFF 2025 blueprint for the next decade of finance placed AI, tokenized settlement, quantum readiness and talent at the centre of global financial transformation for the coming years.
AI moved into production across onboarding, monitoring, underwriting and support. Financial institutions showed mature applications that reduce fraud, improve accuracy and accelerate customer workflows. Tokenized finance advanced as central banks and major institutions tested tokenized settlement assets, wholesale CBDCs and regulated stablecoins. These experiments are clear move from demos towards infrastructure design.
See: How Fintech Teams Move From Tools To Agents
Quantum readiness entered strategic planning as banks prepared for post quantum cryptography and assessed their high value data inventory.
Talent emerged as one of the most constrained resources, with strong demand for cybersecurity, data and AI capabilities.
2026 will reward fintechs that integrate AI into their core stack, design products that support tokenized workflows, build quantum safe readiness and hire for digital infrastructure skills that support resilience and scale.
2026 Fintech Planning Insights
| Canada Policy Shifts That Drive 2026 Strategy | ||
|---|---|---|
| Open Banking Readiness | Canada moves to regulated data rails with accreditation and Bank of Canada oversight. | Build accredited data access readiness now. This creates a major advantage when banks and credit unions adopt regulated data sharing in 2026 and gives fintechs a lead when institutional partners demand safe integration. |
| Payment Supervision Alignment | Retail Payment Activities Act supervision is active and PSPs prepare for Real Time Rail participation. | Raise operational standards to meet supervision requirements. This clears the path for Real Time Rail access when available and strengthens partnership credibility with banks that expect higher resilience from PSPs. |
| Stablecoin Compliance Design | Canada released the first draft of the Stablecoin Act with rules for reserves, custody and redemption. | Design compliance into digital money products now. This avoids costly retrofits when rules finalize and positions fintechs for early participation in tokenized settlement experiments that banks support across 2026. |
| Transition And Climate Disclosure | CSA paused mandatory climate disclosure but investors still expect transition data in diligence. | Maintain credible voluntary disclosure. This reduces diligence friction with investors and large institutions that rank climate and transition data as core risk inputs even without a mandate. |
| Capital Conditions For Canadian Fintechs | ||
| Runway Discipline | Canadian funding normalizes with more selective deployment and fewer large rounds. | Plan 18 to 24 months of runway. This protects valuations and gives Canadian fintechs flexibility during slower deployment cycles and longer diligence timelines. |
| Revenue Quality First | Investors reward revenue durability as rates in the United States and Canada change slowly. | Increase margins, retention and customer lifetime value. This strengthens funding outcomes and signals that the business performs at today cost of capital. |
| Diversified Capital Routes | Equity crowdfunding reached record levels with rising retail participation in Canada. | Use investment crowdfunding to extend runway and validate market demand. This reduces reliance on a small number of venture investors and supports growth during selective funding cycles. |
| AI As The Primary Driver Of Competitiveness | ||
| AI As Core Infrastructure | SFF 2025 showed AI runs onboarding, risk, fraud and support in production. | Automate core work and improve accuracy. This reduces cost, raises product reliability and strengthens enterprise trust when selling into Canadian banks and credit unions. Remember, AI fintechs receive a valuation premium because automation and accuracy improve economics at every growth stage. |
| Model Governance Strength | Institutions expect clear model behaviour and explainability before integration. | Document lineage and monitoring with precision. This increases procurement success and accelerates enterprise adoption when institutions face rising AI governance requirements. |
| AI Driven Efficiency | Canadian enterprises invest in automation as budgets remain tight. | Replace manual workflows with AI to lower operating cost. This strengthens margins during slower growth and improves investor confidence. |
| Tokenized Settlement And Security Readiness | ||
| Tokenized Settlement Readiness | Banks and central banks test tokenized deposits and wholesale CBDCs. | Design workflows that support tokenized settlement. This prepares Canadian fintechs for early pilot participation when infrastructure tests expand in 2026. |
| Quantum Safe Architecture | Institutions begin planning for post quantum encryption. | Inventory sensitive data and adopt cryptographic agility. This protects long term assets and reduces future migration cost for Canadian fintechs selling into regulated environments. |
| Trade, Tariffs And Canadian Procurement Conditions | ||
| Adjusted Sales Cycles | Tariffs reduce Canadian investment and slow enterprise buying. | Extend sales cycle assumptions and build conservative forecasts. This improves cash planning and prevents burn surprises when procurement slows across regulated sectors. |
| Cost And Risk Value Propositions | Global growth slows and Canadian enterprises protect budgets. | Lead with measurable savings and risk reduction. This increases purchase probability in cost constrained environments and improves sales success during slow demand cycles. |
Why It Matters For 2026
As the close of 2025 nears, fintechs operate in a world where capital rewards evidence first, and where AI driven performance gains receive premium valuation only when they improve accuracy, automation or margins. Fintech policy advancement in Canada moves forward on open banking, payments and stablecoins and these developments create new regulated rails to build on. Tariffs, interest rates and slower global growth increase the need for financial discipline and durable revenue streams. Retail investors also became more active in 2025 as equity crowdfunding set new records, giving Canadian fintechs another way to raise capital when venture funding is more selective. SFF 2025 highlighted the technologies that will shape financial infrastructure for the next decade.
See: AI Immerses Youth Today And The Real Question Of Protection
Fintechs that align their strategy with the forces that matter, including AI, regulated data access, modern payments, tokenized settlement and stronger governance, will be better positioned to raise capital, win enterprise partnerships and scale through uncertainty.
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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Australia Launches 2025 Digital Asset Framework
Digital Asset Regulation | Nov 27, 2025
Image: Australian crypto adoption 2019 2025 (Independent Reserve chart)
A Principles and Risk-based Digital Asset Framework Enters Australia’s Financial System
On November 26 2025, the Australian government led by Treasurer Jim Chalmers and Minister for Financial Services Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 by official announcement New Digital Asset Laws to Unlock Innovation and Safeguard Investment.
See: Deloitte Australia’s AI Error Shakes Consulting Trust
The bill creates a clear digital asset framework that covers custody, settlement and platform operations, and it aims to raise investor protection while supporting stronger confidence across Australia’s quickly growing digital asset market. The government positions the framework as a foundation for long term innovation, including tokenization of real world assets, replacing years of uncertainty with defined expectations for operators and institutions.
Digital Assets Background In Australia
Australia has a large and active digital asset community with significant adoption, consistent user growth and a broad set of service providers, which explains the need for a clear regulatory framework. Australia also has several large crypto exchange platform operators serving mainstream users including global giants like Binance, Kraken and Coinbase to name a few.
Survey data and analysis of Australian crypto ownership in early 2025 shows that 32.5% of Australians have owned digital assets, and 70% of those investors hold Bitcoin. More than half of these investors report a profit on their activity.
Engagement continues to rise among older Australians (see chart above). Digital asset ownership among Australians over 65 reached 8.2% in 2025, up from 2% in 2019, read 'baby boomers and retirees invest in crypto'.
New Categories For Digital Asset Services
The bill creates two new financial product categories inside the Corporations Act. (1) A digital asset platform is a facility where an operator holds or controls digital tokens for clients, and (2) a tokenized custody platform is a facility where an operator holds a real world asset and links each asset to a single redeemable token.
These categories require an Australian Financial Services Licence and give operators a clear legal structure for activities that involve possession, safekeeping or management of client tokens and tokenised assets.
Principles-Based Standards For Custody And Settlement
The bill uses a principles-based approach by setting the main definitions and outcomes in the law while giving the Australian Securities and Investment Commission (ASIC), Australia’s corporate regulator, the authority to write the detailed custody and settlement standards. Parliament explains what platforms must achieve, including the need to safeguard client assets, keep accurate records, reconcile balances and manage settlement risk. ASIC then decides how platforms meet these outcomes in practice.
See: Australia Announces 10 Voluntary Responsible AI Guardrails
This approach lets ASIC update requirements as technology evolves without rewriting legislation. It keeps the focus on clear results rather than long checklists of technical steps.
Risk-Based Framework for Market Activity
The bill also uses a risk-based model that links the level of obligation to the level of exposure. Large platforms that hold significant client assets must follow stronger custody and settlement rules. Small platforms that hold less than $5,000 per customer and process less than $10 million a year qualify for a small scale exemption. This supports early pilots and lower risk use cases without placing them under the same obligations as large operators.
The Minister can also use a product intervention power when a digital asset creates clear risks for consumers or the financial system, which allows the government to place temporary limits on that product while ASIC puts longer term rules in place.
In short, the bill uses principles to define the outcomes and risk to decide how strongly those outcomes apply across the market.
Stronger Transparency For Clients
Operators must publish platform rules that act as a contract between the operator and clients. These rules must describe eligibility, settlement processes, use of external liquidity, allocation of operational risk and redemption or delivery of assets.
See: Bank of England Sets New Rules for Systemic Stablecoins
Clients receive clear information about how the service works and what risks they face, which supports informed decision making and strengthens accountability across the sector.
What Comes Next
The bill must now move through Australia’s parliamentary process, which includes further debate and committee review before a final vote. Regulators will prepare the custody standards, settlement standards and platform rule requirements once the bill becomes law. Operators will begin licensing preparation, platform rule design and compliance planning.
The next stage will also decide how the framework reaches newer parts of the market. The legislation sets the main structure, but the regulator must still fill in many operational details.
Those standards will determine how custody rules work in practice, how platforms handle execution and settlement and how services near the line between custodial and non-custodial models will operate.
There are also open questions for stablecoins, decentralized finance and some wallet services, so the practical impact of the framework will depend on how the regulator completes this work in the months ahead.
Why The Framework Matters
Digital asset custody and platform activity now follow the same regulatory expectations used across Australia's financial system. Institutions can participate with more confidence because the framework sets out clear duties for operators that hold client assets or manage tokenized activity. The government notes that digital finance innovation could generate as much as $24 billion each year in productivity and cost savings for Australia.
See: Canada Releases The First Draft Of The Stablecoin Act
The combination of principles-based standards and risk-based market obligations gives operators clear expectations as they build new tokenized real world asset projects, and supports long term innovation under rules that stay steady even as technology changes.
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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AI Immerses Youth Today And The Real Question Of Protection
AI and Mental Health | Nov 27, 2025
AI generated image
OpenAI Rejects Blame In Teen Suicide Case As Debate Grows
Youth's lives are now immersed with AI at every turn. That reality was in sharp focus on November 26, 2025 when OpenAI denied wrongdoing in the death of sixteen year old Adam Raine, who died by suicide earlier this year. The family’s lawsuit alleges that months of increasingly personal conversations with ChatGPT influenced the teen during a period of vulnerability, while OpenAI rejects any link between the system and the tragedy. New reporting shows how those conversations developed over time and why the case is now drawing widespread attention.
Matthew Raine (Adam's father), told United States senators as he described those conversations:
“What began as a homework helper gradually turned itself into a confidant and then a suicide coach,”
This case is one of seven active lawsuits involving generative AI and vulnerable users across North America. NCFA raised similar concerns in earlier reporting on another teen chatbot tragedy. This new case unfolds as AI already significantly impacts how young people study, socialize, seek emotional support and enter the workforce. It raises a broader question about protection that goes beyond content filters or bans.
What The Data Shows About Youth And AI Support
A national study published in JAMA Network Open reports that 13.1% of adolescents and young adults use generative AI chatbots for mental health advice when they feel sad, angry or nervous. Most describe the advice as helpful. This finding shows how AI now plays a measurable role in emotional coping, based on survey results on youth emotional-support chatbot use.
A recent national survey from Common Sense Media finds that 72% of teens aged thirteen to seventeen have tried AI companions. Many use these tools for advice or personal communications highlighting how quickly AI tools have entered emotional and social spaces once held by peers or family. This comes from new data on widespread teen use of AI companions.
Educators and clinicians also report clear blind spots. A comprehensive review of AI mental health tools notes that chatbots can miss signs linked to psychosis, eating disorders and trauma, while new research has evidence that AI chatbots may reinforce mental-health stigma. NCFA previously reported on early evidence of AI psychosis and trust risks. Together these findings suggest that AI tools may feel supportive while still lacking the judgment needed during moments of real crisis.
Why Teens Turn To AI When Options Run Thin
Many young people turn to AI tools because other options feel out of reach. AI tools feel private, immediate and nonjudgmental, according to survey findings on why teens choose AI companions (NB: 75% of teens have tried AI companions).
In the United States most adolescents with major depressive episodes don't receive treatment in a given year, according to national data on adolescent depression care gaps.
In Canada, evidence points to similar gaps with thousands of children and youth waiting months for counselling and therapy across the country. In Ontario alone about 28,000 children and youth waited for mental health services in 2020, as captured in this research Kids Can’t Wait report on youth mental-health wait lists. National tracking also finds long waits for community mental health counselling, with delays varying widely by region, based on pan-Canadian data on counselling wait times.
AI And The First Rung Of The Career Ladder
AI now plays a growing role in how young people start their working lives. Recent findings from the Stanford Digital Economy Lab shows that young career workers between 22-25 years old in AI exposed fields saw a 13% drop in employment after late 2022.
Further, according to survey results from the World Economic Forum on the global employer outlook, 40% of companies expect to cut roles where AI can handle routine tasks.
See NCFA’s earlier piece on AI’s hidden costs for junior workers that shows how automation reduces coaching, early learning and long term stability even when it speeds up short term tasks. For Gen Z this means AI can help them work faster while also reducing the number of early roles that once offered training, support and a safe place to learn.
Where Protection Often Falls Short
In mental health, AI comforts but still misses red flags.
In everyday digital life, governance and content policies struggle to match the pace of rapid model and features updates.
See: Grok Leak Triggers Global AI Privacy Alarm
In early careers, automation reduces entry pathways and increases pressure on young workers to master new tools without adequate support.
These challenges do not create a single fix. They show how youth exposure grows faster than the systems meant to guide and protect them.
How Fintech Firms Can Respond Without Slowing Innovation
Fintech companies and their apps and models are at the center of these changes. Young customers rely on savings apps, credit tools, digital wallets and investment platforms that now embed automated insights and AI guidance. Fintech teams can use design principles that support innovation while adding real protections for young users.
Clear explanations help young customers understand how AI insights form and what limits apply.
Human review in unusual or high stakes interactions prevents automated decisions from pushing users toward unsafe financial choices.
Independent testing of models that guide credit thresholds, advice or spending prompts reveals bias or unrealistic patterns.
These measures strengthen reliability without slowing responsible development and help firms serve younger users with confidence.
Why It Matters
As the Raine case continues through the courts. Judges will weigh logs, warnings and design choices. Whatever the outcome, the broader reality is already visible. Youth live in a world where AI companions, homework helpers, work tools and financial apps appear on the same devices. Research shows that these tools offer support while also creating gaps that health, education and employment systems have not yet addressed.
Read: Three Generations Discuss AI Concerns, Hopes, and the Future
The real question of protection is not whether AI should disappear from youth life. It is how schools, mental health services, employers, regulators and product teams work together so young people can use AI to build stronger futures instead of carrying its risks alone.
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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Building Financial Resilience in an Age of Uncertainty
Nov 27, 2025
Image: Freepik/creativeart
In today’s uncertain and volatile global economy, businesses need to be resilient in order to succeed. Many businesses have been struggling to steady the ship since the pandemic due to a range of factors, including lockdowns, lower consumer confidence, increasing costs, cybercrime, tariffs, supply chain issues, and more. Therefore, businesses must be resilient in order to weather the storm and achieve success despite the external factors. So, how can a company build financial resilience during an age of uncertainty? It might feel like an uphill battle, but there are a few smart strategies to build financial resilience that can help you succeed and benefit from peace of mind.
Risk Awareness
First, businesses must be aware of the risks that their company faces. Risk assessments can help companies determine the general and specific risks they face, allowing them to develop strategies to mitigate these risks. For SMEs, this is vital for resilience against various threats but also for building trust with investors, partners, and clients. Threats are constantly evolving, so it is wise to conduct regular risk assessments to identify vulnerabilities and reduce your exposure. This can prevent issues from arising in the first place, allowing you to take a proactive stance.
Emergency Buffer
One of the most effective ways to build financial resilience is to build an emergency buffer. This is a contingency fund that you can turn to if you face an unexpected expense or if business slows down for one reason or another. It is generally recommended to have 3-6 months’ worth of expenses in the fund and keep it in an easy-access, high-interest account. This can prevent you from having to take on debt in an emergency and can provide peace of mind.
Insurance Coverage
Liquidity is certainly important in uncertain times, but you should never underestimate the importance of insurance. Insurance can provide financial stability and business continuity when an unexpected situation arises, so you want to make sure that you are fully protected against general and industry-specific threats. You will also want to find a reliable insurance provider, such as Aviva. Trusted companies like this can provide insurance policies tailored to the needs of your business, allowing for comprehensive protection and reassurance.
Adaptability
Finally, it is important to be adaptable. To achieve long-term success, businesses need to be ahead of the curve and willing to change. This means embracing digital transformation and new technologies, investing in staff training, conducting regular market research, and taking advantage of new opportunities that present themselves. While these uncertain times can certainly create challenges, they can also create new opportunities. This is why the businesses that are light on their feet are the ones that enjoy long-term success.
See: Strengthening Resilience and Leading Through Uncertainty
It can be challenging for businesses to thrive during these uncertain times, which is why building financial resilience is key. By focusing on the above areas, businesses will be able to protect themselves against the various modern threats that every company faces and industry-specific challenges. Hopefully, this will enable you to weather the storm, adapt, and achieve long-term success.
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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Canada Open Banking Commercialization Roadmap
Open Banking in Canada | Nov 26, 2025
Revenue Opportunities For Canada's Consumer Driven Banking Act
Canada is moving into a new phase of financial services with the Consumer Driven Banking Act. Budget 2025 confirms that open banking is officially moving forward, with a clear sequence for how the system rolls out. Legislation and technical standards in focus throughout 2025. The Bank of Canada receives new funding to supervise Canada's Open Banking Framework, and the government commits that people will not face fees when they access or share their financial data. The Real Time Rail to be launched in Q3 2026. Full open banking functionality including payment initiation is expected by mid 2027.
See: Canada’s Open Banking Journey: Interview with Huw Davies, Chief Commercial Officer OZONE API (UK)
People will soon gain the right to share their financial data safely, securely and at no cost with accredited providers (which is highly important given the JPMorgan data fee backlash in the US). This functionality creates room for new products and new revenue models. It also pushes banks, fintechs and API platforms to rethink how they plan to commercialize the framework and grow. Since providers cannot charge fees for in scope data, the value sits in the tools and services built on top of that shared information.
Huw Davies puts useful ideas on the table in a recent Ozone API article, 'show me the money' about treating open banking APIs as real commercial channels. His thinking sparks a closer look at how those ideas land in Canada, where the rules, accreditation structure and staged rollout create a different set of opportunities. When you look at the Consumer Driven Banking Act through a commercial lens, the roadmap becomes clear. This article provides an overview of some models that could work in the read only phase. Other models unlock once write access arrives in phase 2, and a few ideas won't fit the Canadian framework at all.
What Models Work With Read Only Open Banking
Open banking in Canada begins with safe, consented data access, but the first year focuses on building the foundation rather than running a live system. Through 2025, the government works on legislation, technical standards, accreditation, supervision and security. The Bank of Canada receives $19.3 million over two years to lead this work, and the government redirects $36.9 million previously assigned to the Financial Consumer Agency of Canada to support the transition. Cybersecurity receives new funding as well, including $25.7 million over five years and an ongoing $5 million allocation for CSIS and the RCMP.
See: UK Open Banking Update and Road to Open Finance
Read only data-sharing is expected to take shape in 2026 once the technical and operational framework is ready. In this stage, accredited providers can only read in scope data that a person approves. They cannot trigger payments or update any accounts. Revenue can be generated from insight, identity, developer experience and onboarding support. These components create value without charging for the data itself. Below is an overview of some models that can work during the read only stage.
Phase One Commercial Opportunities
| Type | Model | Viability | Why It Works | How It Generates Revenue |
| Enrichment and Analytics | Categorization and personal finance tools | High | Turns raw data into clear insight for users | Subscriptions or bank partnerships |
| Small business cash flow dashboards | High | Helps business owners manage money and plan ahead | SaaS pricing | |
| Spending and savings insights | High | Gives people visibility and confidence | Consumer upgrades | |
| Identity and Compliance | Identity verification and KYC | High | Accreditation increases demand for strong identity tools | Per verification fees |
| Fraud detection and risk scoring | High | Supports trust across the ecosystem | Event based fees | |
| Consent and audit logging | High | Helps accredited providers meet compliance requirements | Platform fees | |
| API Performance | High throughput tiers | High | Monetizes reliability and speed instead of raw data | Tiered usage |
| Extended transaction history | Moderate | Depends on regulatory interpretation | Premium tier | |
| Enhanced sandbox and developer tools | Moderate | Developers value better testing environments | Developer subscriptions | |
| Acquisition Flow | Data driven onboarding | High | Improves conversion and lowers friction | Better product economics |
| Account comparison and switching | High | Read access supports more transparent experiences | Customer acquisition gains |
The early phase rewards companies that help users understand their financial picture, help institutions manage compliance and help developers work with clean, reliable data. These models feel simple on the surface, but they will create the foundation for the expanded market activity that follows in phase 2. They also align fully with the principle that in scope data must be free for users.
What Opens Up When Canada Activates Write Access
Write access becomes possible once the Real Time Rail operates across Canada. Budget 2025 confirms that the RTR is expected to become operational in Q3 2026, and as a result, full consumer functionality under open banking, including payment initiation, is expected by mid 2027. This next phase turns open banking into a high value service layer, where accredited third parties can initiate transactions, open accounts, trigger lending and handle real time flows with user permission.
See: BoE Report: Open Banking Boosts Productivity, Competition
This stage unlocks the commercial engine most people associate with open banking. Money moves. Accounts open. Platforms become financial channels. Merchants cut payment costs. Developers build financial workflows inside the tools people already use.
Phase Two Commercial Opportunities
| Type | Model | Viability | Why It Works | Revenue Trigger |
| Payments | Payment initiation for merchants | Very High | Direct bank payments reduce card fees and settlement time | Per payment fees |
| Invoice and bill settlement tools |
High |
Helps small businesses streamline payment operations | Transaction fees | |
| Embedded Credit | Loan origination APIs | Very High | Supports real time underwriting with live data | Origination fees and credit margin |
| Short term credit or BNPL tools | High | Easily integrates into digital journeys | Revenue share | |
| Modular Banking | Deposit account creation | High | Platforms control user experience while banks manage account infrastructure | Per account fees and float |
| Card issuance APIs | High | Works well for vertical software platforms | Interchange share | |
| Onboarding flows and identity orchestration | High | Smooth onboarding drives product adoption | Per onboarded user | |
| SME and Enterprise Services | Treasury and cash management | High | Real time rails enable automation and control | Subscription and volume fees |
| Payroll linked payments | Moderate | Depends on broader ecosystem readiness | API usage fees |
This is the phase where open banking becomes a full commercial channel where many parts of the value chain becomes programmable.
- Payment initiation reduces merchant costs
- Embedded credit improves access to financing
- Modular banking empowers platforms to offer financial products without becoming banks (a platform can add things like accounts, cards or payments as simple API components instead of building full banking infrastructure)
- Real-time treasury services help small and medium sized businesses manage operations
See: Canada’s Open Banking Journey: Interview with EY’s Dr. Francesco Pisani and Dr. Alexander Christoph
The companies that build trust, reliability and encourage developer adoption during the read-only phase will enter this phase with a strong advantage.
What Does Not Fit Canada’s Open Banking Framework
Canada's open banking rules are set to ensure people have the right to access and share their financial data without paying fees. So certain business models do not align with these requirements. If a model creates barriers or charges for in scope data, it won't fit in the current framework.
Low Viability Models
| Model Type | Viability | Why It Fails In Canada |
| Charging consumers for access to their own data | Very Low | Conflicts with the rule that in scope data must be free |
| Charging fintechs for raw data | Low | Creates unfair access for smaller players |
| Per call pricing for basic data | Low | Undermines competition and equal participation |
| Proprietary or closed APIs | Low | Goes against interoperability requirements |
| Monetizing derived data without clear consent | Low | Creates privacy and liability risk |
| Charging fintechs for mandated data access | Low | Conflicts with the goals of the framework |
Canada wants an open and competitive ecosystem that rewards companies for the value they create, not the data they gate. If a business model depends on tolls, walls or restrictions, it sits outside of Canada’s open banking structure.
Outlook
Budget 2025 sets a clear timeline and path towards open banking commercialization. Standards and supervision take shape in 2025. The Real Time Rail becomes operational in 2026. Full functionality arrives in 2027. Phase one rewards companies that focus on insight, identity, compliance and developer experience. Phase two rewards companies that plan for payments, embedded credit, modular banking and real time financial workflows. Some models won't work as they conflict with the rules of the framework.
See: Take Part in the Global AI in Finance 2030 Survey
While it took Canada half a decade to get here, it's approach to Consumer Driven Banking balances innovation with protection. The phased rollout also encourages companies to build strong foundations early and to prepare for the more substantial opportunities when write access arrives. The organizations that engage with phase one now will be in the strongest position once the full system becomes available.
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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Klarna Launches KlarnaUSD And Enters US Stablecoin Race
Stablecoins | Nov 25, 2025
Image generated by AI
Klarna Enters Stablecoins With Tempo-based KlarnaUSD
On November 25 2025, Klarna Group plc announced the launch of KlarnaUSD, and enters a global stablecoin market that McKinsey estimates now processes more than US$27 trillion in annual transactions and sits inside a cross border payments system that produces about US$120 billion in yearly fees.
See: PayPal Launches No Fee Pay in 4 in Canada
Klarna brings 114 million customers and US$118 billion in annual gross merchandise value to its launch. The company already operates as a licensed bank in Sweden through Klarna Bank AB, and the company continues to expand its banking services beyond that market as it builds new digital payment and settlement tools. Klarna now moves beyond buy now pay later in the US and steps into the stablecoin market with an infrastructure level product designed for scale.
Klarna Builds A New Settlement Layer With Tempo
KlarnaUSD runs on the Tempo blockchain that Stripe and Paradigm created that's designed for payments. Tempo supports fast and low cost transfers which gives the company a quicker way to move money than traditional bank systems.
The stablecoin is issued through Open Issuance by Bridge explained by Stripe. Bridge connects Tempo to apps, wallets and bank accounts so KlarnaUSD can move across the app, the merchant portal and settlement tools.
Klarna's stablecoin keeps a one-to-one value with the US dollar, and its reserves sit off chain so the service can follow local rules.
KlarnaUSD runs on Tempo’s testnet today and moves to mainnet in 2026 which gives the company time to test and build before public availability.
See: Visa Extends Stablecoin Settlement to Four Blockchains
Sebastian Siemiatkowski, co-founder and CEO of Klarna:
"Klarna has the scale to change payments globally: with Klarna’s scale and Tempo’s infrastructure, we can challenge old networks and make payments faster and cheaper for everyone,”
Here Are 5 Use Cases For KlarnaUSD
Klarna presents KlarnaUSD as a faster and cheaper settlement tool but the likely impact will reach further and impact how payments and value move inside Klarna’s ecosystem.
1. Merchant Settlement At Lower Cost
Klarna can settle payouts through KlarnaUSD which avoids long clearing cycles and reduces FX friction. Merchants that receive faster settlement at lower cost usually send more business volume to the service that provides those results because it improves cash flow and reduces operational friction. So Klarna can also expect more volume.
2. Cross-Border Consumer Payments
Shoppers can complete international purchases with KlarnaUSD and avoid the delays and FX fees that occur on card and bank networks. Merchants that convert international shoppers at lower cost often strengthen their margin and rely more on the service that supports those outcomes.
3. Faster Refunds And Buy Now Pay Later Adjustments
Refunds, reversals and buy now pay later corrections can move across KlarnaUSD flows with fewer delays.
See: Canadian Banks and Fintechs Back Regulated Stablecoin
Consumers that receive faster refunds tend to return to the service that resolves issues quickly which supports higher repeat use.
4. Token Based Balances And Savings Style Tools
KlarnaUSD can support balances, rewards and saving style tools inside the app without the company building full banking infrastructure in each region. Users that keep balances inside a single platform often deepen their engagement because their financial activity stays in one place.
5. Settlement Services For Other Fintech Companies
Fintech companies can use KlarnaUSD for their own settlement flows which reduces cost and increases speed. Platforms that provide reliable settlement rails often become part of a partner’s operational stack which expands the platform’s role in the broader ecosystem.
Risk Considerations
Stablecoin issuance introduces new responsibilities for Klarna. Regulatory risk matters because stablecoins sit under active review and issuers must meet rules on reserves, redemption and consumer protection.
Reserve management brings risk because Klarna must maintain high quality USD backing and manage liquidity for redemptions.
See: BNPL Plans Are Starting to Affect Credit in Canada
Technology risk also exists because KlarnaUSD depends on the Tempo blockchain and Stripe’s Bridge framework which must perform under load and remain secure.
Reputation risk matters because any issue with redemption, reserves or outages can affect trust across Klarna’s full product suite.
Klarna In Canada
Klarna operates in Canada today through its app and merchant partners. According to NCFA’s Canadian market overview in “Klarna’s Meteoric Rise in the Canadian Financial Ecosystem” (Aug 2023), Klarna gained 640,000 active Canadian consumers within 18 months of its Canadian launch.
Klarna notably also went public this past September 2025 on the New York Stock Exchange, IPO priced at US$40 per share and opened with a 16% jump, as outlined in the NCFA analysis of Klarna’s IPO pop. This debut placed Klarna’s valuation near US$17.5 billion and signalled strong early investor interest. The stock now trades near US$29.92 (KLAR), according to the latest public market price. Maturing crypto markets, Klarna's digital bank growth plans, and recent IPO all help explain why Klarna is investing in new digital settlement tools, and let's not forget investor expectations.
Read: Stablecorp Raises $5M+ to Accelerate QCAD Adoption
While Klarna hasn't announced a Canadian launch timeline for KlarnaUSD. The confirms that KlarnaUSD is in testnet and planned for mainnet in 2026. Plus, a Canadian rollout depends on the completion of Canada’s new stablecoin rules of which the first draft of the national stablecoin act has just been released. Also worth reviewing is the FCAC's national survey on Canadian stablecoin use and views.
Why It Matters
KlarnaUSD highlights how fintech companies can advance when they control both the customer network and the settlement rail. Klarna improves speed, lowers cost and gains room to build new financial services without relying on legacy systems. For Canada the timing is important. Stablecoin settlement is now moving into commercial use and companies that adopt token based rails can gain real cost and speed advantages. Canada’s stablecoin work gives local innovators a chance to compete as global fintechs introduce faster settlement tools.
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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