Karsten Wenzlaff, Advisor
August 26th, 2025
August 25, 2026 | NCFA Insight | Digital Identity And Trust, Cybersecurity Fraud And Financial Crime, Risk Compliance And Regtech

On August 25, 2026, Vancouver based Fobi AI launched Fobi AltID 3.0, expanding its digital identity technology beyond credential verification. Fobi says the new platform can continuously authenticate a verified person, confirm authorization and use satellite positioning to add location and time to the decision. Financial services and customer identity checks are among its intended uses.
The existing Fobi digital identity wallet focuses on proving identity or age while limiting how much personal information needs to be shared. The new proposition goes further. Once someone has been verified, Fobi wants the credential to keep helping organizations decide whether the right person is still present and allowed to complete an action.
That addresses a real financial control problem. Verifying someone when an account is opened does not prove that the same person still controls a session months later, approved a particular payment or gave software permission to act for them. The gap gets wider as financial services automate more activity.
The launch names financial services as a target market but doesn't identify a bank, credit union, payment company or financial pilot. It also doesn't explain how an AI agent would be given, restricted or stripped of authority. Those are important boundaries between the product Fobi has launched and the larger trust infrastructure it wants to build.
This approach already has support in established digital identity practice. NIST continuous authentication guidance allows organizations to monitor characteristics such as behaviour, device information, location, timing and network activity after a user has logged in. Suspicious changes can trigger another identity check or end the session.
For financial firms, that can add protection without repeatedly asking customers to upload identity documents. An account can remain usable while the service watches for changes that make the current activity look less like the person who was originally authenticated.
Fobi adds location to that decision. The company says satellite positioning can connect a verified person with where and when an interaction occurs. Location can strengthen a risk decision, but Fobi has not disclosed the positioning technology, accuracy or protections against false location data. NIST also treats geolocation as one piece of a wider risk assessment rather than proof of identity on its own.
More monitoring also creates more privacy responsibility. Behaviour, devices and location can all reveal sensitive information. NIST requires those uses to be included in privacy risk assessments. Fobi says the personal information used for the original verification can be removed from the ongoing process, but further disclosure is needed to show what the platform continues to observe and retain.
Canada is dealing with the same combination of identity, consent and security as financial data becomes easier to share. The proposed Canada Open Banking and Consumer Driven Banking Rules bring authentication, consumer permission, security and evidence of authorization into the same operating framework. Persistent digital identity becomes more useful when those controls have to work after onboarding rather than only at the beginning of the relationship.
AI agents make the distinction between identity and authority easier to see. A bank may know who owns an account and still need to know whether software has permission to spend $500, change an instruction or continue acting tomorrow. AI agents with wallet access increases the urgency of defining what software can do, for how long and on whose authority.
Payment networks are already building controls around that problem. The Visa Trusted Agent Protocol lets merchants verify that an AI agent is legitimate and has permission to act for a customer. Visa's specifications also allow merchants to limit an agent to a specific purpose, such as browsing or making a payment.
Mastercard Verifiable Intent, developed with Google, records what a person authorized before an AI agent acts. Mastercard is designing it to work across wallets, platforms, payment networks and different agent systems.
The same convergence appears in the FCA Emerging Technology Horizon Scan 2026, where digital identity, AI agents, consumer control and programmable finance intersect. For fintechs, the opportunity goes beyond proving who somebody is toward proving what a person or piece of software is allowed to do.
Open digital credentials could make those permissions easier to carry between services. The W3C digital credential standard provides a common way to issue and verify secure, privacy respecting credentials. Fobi has not disclosed whether its new platform supports that standard or another open identity framework. Interoperability is necessary if the technology is expected to work across banks, fintechs, payment networks and other organizations rather than mainly inside Fobi's own products.
Fobi is also positioning post quantum security as part of the platform. Financial firms are already preparing for post quantum cryptography as new security standards replace encryption that future quantum computers could threaten. Fobi has not identified which algorithms or standards it uses, or provided independent technical validation. For now, quantum readiness remains a product claim that still needs evidence rather than the main reason to assess the launch.
The more immediate opportunity is digital trust. Identity can establish the person. Ongoing authentication can flag when something changes. Authorization can control what a person or AI agent is allowed to do. Those capabilities also connect digital identity, cybersecurity and automated finance across the Financial Innovation Map.
Fobi now has to prove that its technology can join those pieces in practice. A financial institution deployment, support for open credentials or documented controls for delegated authority would make the case much stronger. Until then, the launch is a credible expansion of Fobi's digital identity technology into a financial problem that is becoming harder as software gains more authority.
As AI agents gain access to payments, financial accounts and digital credentials, will proving identity once be enough, or will financial services need to keep verifying who is in control and exactly what they are allowed to do?
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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August 25, 2026 | NCFA Insight | Capital Markets And Market Infrastructure, Artificial Intelligence And Data, Competition And Market Structure, Open Banking Open Finance And Data Sharing

On August 25, 2026, KPMG reported KPMG H1 fintech data showing US$996.7 million across 47 Canadian fintech deals in the first half of 2026. Its current comparison puts that against about US$1.7 billion across 82 deals a year earlier, leaving both investment and deal activity down more than 40%.
Q2 was much stronger than Q1 without producing more deals. Investment climbed to US$621.7 million across 23 transactions from US$375 million across 24. Venture funding reached US$398.2 million across 19 deals from US$94.6 million across 14. Almost the same number of transactions attracted substantially more capital.
Canada's broader venture capital market tells a different story. Canada H1 venture data show C$2.69 billion invested across 250 deals, with dollars up 17% and deal count down 8.8%. Sixteen rounds of C$50 million or more absorbed 59% of all venture capital.
Look at the funding source of those larger cheques. Rounds financed entirely by Canadian investors represented 66% of H1 venture transactions, but foreign investors participated in 56% of later stage rounds, up from 30% a year earlier. U.S. investors participated in 44%, up from 19%.
Global capital is valuable to Canadian companies and should remain part of the funding mix. However, the opportunity is to build more domestic capacity to lead large rounds as companies scale, allowing Canada to retain more ownership, investment influence and financial upside while still attracting international investors.
KPMG and CVCA measure different markets. KPMG includes venture capital, private equity and M&A, while the CVCA figures above cover venture capital. Together, they show a funding market where larger commitments are going to a relatively small group of companies.
KPMG says investors are favouring scale, specialized AI capabilities, competitive positioning and demonstrable economics. For Canadian fintechs, the funding bar is getting clearer and harder to clear.
The largest Canadian fintech financing in KPMG's H1 data was Nesto's C$302M Series E in June at a C$1.47 billion valuation. The Montréal mortgage technology company entered the round with more than C$80 billion of mortgages under administration, more than C$37 billion of 2026 originations and a profitable business.
Nesto also owns lending technology and established mortgage businesses while building Nesto Cloud and Maestro AI for financial institutions. Investors were backing technology connected to customers, lending operations, distribution and a large existing financial market.
Regulated access can carry similar strategic value. Robinhood's WonderFi acquisition gave it Canadian customers, local teams and regulated crypto platforms through Bitbuy and Coinsquare instead of building that position from scratch.
AI attracted the most activity in KPMG's H1 data with 19 investments, compared with eight digital asset deals and four payments deals. KPMG says investors are favouring specialized applications that make lending, deposit taking and payment processing faster or more efficient.
That is already visible in Canadian financing. Float raised C$85 million to expand its AI business finance platform across payments, cash management and finance workflows. Nesto is applying AI to mortgage operations and lending technology. AI becomes easier to finance when it can lower costs, improve risk decisions, speed up work or increase revenue inside a financial product customers already use.
The early stage pipeline below those larger companies needs attention. CVCA says early stage investment dollars rose 24% on a flat deal count, while seed funding fell 31% to C$285 million. KPMG recorded 12 early stage fintech deals and eight seed rounds. Future Canadian scale companies depend on enough younger fintechs getting the capital and customers required to reach that level.
KPMG expects Consumer Driven Banking and the Real-Time Rail to improve fintech economics by opening access to financial data and payment infrastructure. Both are finally entering implementation after years of delay.
Canada's RTR access rules came into force on August 24. Payments Canada is targeting a Q4 2026 launch with initial direct participants, followed by additional onboarding and transaction growth through 2027. Registered payment service providers can pursue membership and RTR access, but firms still need the technology, settlement arrangements, fraud controls and operating capacity to participate.
Consumer Driven Banking is also getting closer to operation. Proposed regulations cover data access, accreditation, liability, security and technical standards. Implementation is expected to begin with accreditation after final regulations are published, while payment initiation and wider open finance capabilities come later.
These infrastructure reforms can reduce barriers that have favoured larger institutions, but firms still need the resources to integrate, comply and compete. Smaller challengers benefit when access becomes practical and affordable enough to improve their products and economics.
Canada's delay also affects how much experience fintechs build before competing internationally. In 2025, the Bank of Canada described payments modernization delays compared with the UK, Australia and EU. Fintechs in those markets have had more years to develop products around faster payments, financial data access and modern infrastructure.
Canadian firms are only now gaining some of the same tools. Infrastructure delays do not explain the success or failure of any individual company, but they can leave Canadian fintechs with less experience using capabilities that competitors elsewhere already know well. That can make winning customers and market share outside Canada harder.
Scale, licences, customer access and specialized technology are easier to finance once companies have had time to build them. If modern infrastructure helps Canadian fintechs prove their economics earlier, more firms could become credible candidates for larger rounds.
Canada's fintech funding concentration was already visible in 2025. H1 2026 makes the domestic question more pressing. Strong companies are still attracting large cheques, but fewer fintechs are reaching investors.
More selective investment can reward stronger companies, but Canada still needs enough firms coming behind today's winners. Better payment and data infrastructure can lower operating barriers. Applied AI can improve real financial workflows. Deeper domestic growth capital can help Canadian investors lead more large rounds.
The goal is not to make investors less selective. It is to produce more Canadian fintechs strong enough to earn their capital and compete globally.
Canadian fintech investors are backing scale, specialized AI, regulated access and proven economics, while international capital becomes more important in larger rounds. Can Real-Time Rail and Consumer Driven Banking help more Canadian fintechs build those advantages earlier while Canada develops more capacity to finance their growth at home?
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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Aug 24, 2026

Growing a business does not always mean starting from scratch. While companies can expand by hiring more employees, developing new products or entering new markets organically, those strategies can take years to produce meaningful results. Mergers and acquisitions (M&A) give Canadian companies another option: acquire an established business, customer base, team or capability and accelerate growth.
For companies with the right strategy and financial position, an acquisition can accomplish in months what might otherwise take years to build internally.
That does not mean every acquisition creates value. Successful M&A requires careful planning, realistic valuations, thorough due diligence and a clear understanding of what the company hopes to accomplish after the transaction closes. When those pieces come together, however, mergers and acquisitions can become a powerful part of a Canadian company's long-term growth strategy.
Expanding into a new geographic market can be expensive and uncertain.
A company entering another province, for example, may need to establish a location, hire employees, build local relationships, advertise its services and develop an entirely new customer base. Even a successful expansion can take several years before the new operation becomes firmly established.
Acquiring an existing company can significantly shorten that process.
Instead of building everything from the ground up, the buyer may acquire an established brand, experienced employees, existing contracts, supplier relationships and a customer base that already generates revenue.
This can be particularly valuable in a country as geographically large as Canada. A company established in Alberta that wants to expand into British Columbia or Ontario may find that acquiring an existing operation provides a much more direct route into the market than opening a new location independently.
The acquisition still needs to make strategic and financial sense, but it can remove many of the barriers associated with entering an unfamiliar market.
Acquisitions can also help businesses increase their presence within markets where they already operate.
If two companies serve similar customers, combining them may create a larger organization with more revenue, greater resources and a stronger competitive position.
The benefits can go beyond simply combining two customer lists.
A larger company may have greater purchasing power with suppliers, more resources for marketing, stronger recruitment capabilities and the ability to spread administrative costs across a larger revenue base.
This is one reason M&A can be particularly attractive in fragmented industries where many small and mid-sized businesses compete for the same customers.
Rather than relying entirely on organic growth, a company may acquire competitors or complementary businesses over time and gradually build a larger market position.
Developing a new service internally requires time, expertise and investment.
A company may need to hire specialized employees, purchase equipment, develop systems and spend months or years building credibility in the new area.
Buying a business that already provides that service can offer a faster path.
Consider a construction company that wants to expand into a specialized trade, a technology company that needs a particular software capability or a professional services firm that wants to introduce an entirely new division. An acquisition can provide the people, systems and customer relationships required to add that offering immediately.
This strategy can also create opportunities for cross-selling.
The acquiring company may be able to introduce its existing services to the acquired company's customers while offering the acquired company's services to its own customer base.
When there is a strong fit between the two businesses, the combined organization can sometimes generate more revenue than the companies could have produced independently.
Finding qualified employees is a major challenge for many Canadian businesses.
In industries where specialized skills are difficult to recruit, M&A can effectively become a way of acquiring an established team.
Instead of hiring employees individually and building a department over time, a company may acquire a business that already has the technical knowledge, leadership and experience it needs.
The value of an acquisition may therefore extend well beyond physical assets or annual revenue.
Engineers, tradespeople, developers, sales teams, managers and other specialized employees can represent a significant part of the value being acquired.
Retaining those employees after closing is equally important. If key people leave immediately following the transaction, some of the strategic value of the acquisition can disappear with them.
For that reason, employee retention and integration should be considered before the deal is completed rather than treated as an issue to solve afterwards.
M&A can also be used to gain greater control over parts of a company's supply chain.
A manufacturer might acquire a supplier that produces an important component. A distributor could acquire a transportation or logistics operation. A company that relies heavily on an outside service provider might decide there is strategic value in bringing that capability in-house.
This type of acquisition is often referred to as vertical integration.
The goal is not necessarily to increase market share. Instead, the company may be trying to improve reliability, reduce costs, protect margins or gain greater control over an important part of its operations.
Recent disruptions to global supply chains have made this consideration increasingly important for companies that rely on specialized materials, manufacturing capacity or transportation networks.
Owning more of the supply chain can sometimes reduce exposure to outside disruptions, although it also means taking responsibility for operating another part of the business.
Two businesses operating separately often duplicate many expenses.
Each may have its own accounting department, office space, software subscriptions, management structure, insurance policies, marketing costs and administrative systems.
After an acquisition, some of those functions may be combined.
If the merged company can generate more revenue without increasing overhead at the same rate, profitability may improve.
Greater scale can also improve negotiating power. Larger organizations may be able to negotiate better terms with suppliers, lenders, technology providers and other vendors.
These efficiencies are commonly described as synergies, but they should be evaluated carefully. It is easy to assume that combining two companies will automatically reduce costs. In reality, integration itself can be expensive, and some operations may be more difficult to combine than expected.
The strongest deals are generally based on realistic efficiencies rather than aggressive assumptions about how much money will be saved.
M&A does not only benefit acquiring companies.
Canada has a significant number of privately owned and family-run businesses whose owners will eventually need to transition out of the company.
Some businesses can be transferred to family members or employees. Others may ultimately be sold to another company, management team, private equity group or individual buyer.
That creates opportunities on both sides of the transaction.
An established company can acquire a successful business rather than building a competing operation, while the seller receives a way to realize the value that has been created over many years.
Transactions can take several forms, including asset purchases, share purchases and management buyouts. The structure of the transaction can affect taxes, liabilities, financing and what the buyer actually acquires, which is why companies considering a deal often involve experienced M&A legal counsel early in the process rather than waiting until an agreement is ready to be signed.
Every growth strategy involves risk.
Launching a new product can fail. Opening a location in another province does not guarantee customers will follow. Building a new division may require significant investment before producing any revenue.
An acquisition provides something different: an operating business with a track record.
Buyers can examine financial statements, customer concentration, contracts, employees, assets and historical performance before deciding whether to proceed.
That does not eliminate risk. It simply provides more information about the business being acquired.
This is where due diligence becomes critical.
A company may look attractive based on revenue and profitability while still carrying risks related to contracts, taxes, litigation, customer concentration, intellectual property, employment obligations or debt.
Finding those issues before closing can affect the purchase price, deal structure or even the decision to proceed.
Closing an acquisition is not the end of an M&A strategy.
It is the beginning of the integration process.
Companies need to decide how systems will be combined, how employees will work together, whether brands will remain separate and how customers will be introduced to the new organization.
Culture can be just as important as finances.
Two profitable companies may struggle after a merger if their management styles, employee expectations or ways of working are fundamentally incompatible.
Successful Canadian companies therefore tend to approach acquisitions as more than financial transactions. The goal is not simply to buy revenue. It is to acquire something that makes the overall business stronger.
When the strategic fit is clear and the transaction is structured carefully, M&A can give companies access to new markets, customers, talent, technology and capabilities much faster than organic growth alone. For businesses looking at the next stage of expansion, acquiring the right company can be one of the most effective ways to get there.
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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August 24, 2026 | NCFA Insight | SME Finance And Business Banking, Cross Border Payments And FX, Competition And Market Structure, Public Sector Policy And Industrial Strategy

On August 24, 2026, Canada-U.S. trade negotiations had collapsed with new 50% U.S. tariffs on certain Canadian products already in force from August 22. President Donald Trump then threatened to raise new additional 50% tariffs on all Canadian cars, trucks and auto parts beginning January 1, 2027. Canada plans retaliatory tariffs on some U.S. goods beginning September 8.
The breakdown adds fresh urgency to Canada’s push to build more trade outside the U.S. The federal government is already tilting export support in that direction. CanExport SMEs has approximately $31 million available for 2026 and 2027, with about $27.9 million available for non-U.S. market activities and $3.1 million for U.S. projects. The program says the allocation supports Canada’s objective of doubling non-U.S. exports over the next decade.
For fintech, software and other digital firms, the problem is how quickly Canadian companies can turn access to a foreign market into customers and recurring revenue. Europe, the UK, Singapore, Southeast Asia, Latin America, Africa and the Middle East already have local firms and international competitors with licences, integrations, distribution, customer relationships and years of operating experience.
Statistics Canada reported $70.3 billion of digitally delivered commercial services exports in 2023. Large firms increased those exports by 20.1%, while small and medium sized firms recorded a 7.6% decline. Canadian multinationals increased commercial services exports outside the U.S. by 21%, compared with 6.6% growth to the U.S. They also accounted for 75% of the increase in Canadian commercial services exports to non-U.S. markets.
NCFA's earlier digital export comparison shows Singapore ahead of Canada despite operating from a far smaller domestic economy. Singapore ranked 11th globally in the underlying 2023 data at US$153 billion, compared with Canada in 16th place at US$118 billion.
Canada doesn't just need another list of markets to enter. It needs more startups and SMEs able to win non-U.S. customers faster and build businesses that can keep competing once they get there.
Canada already has substantial export infrastructure. The Trade Commissioner Service connects companies with customers, partners and investors. Canadian Technology Accelerators provide business development support, strategic guidance and local introductions. CanExport reduces part of the cost of entering new markets, while Export Development Canada's Trade Impact Program provides financing, working capital, guarantees and credit insurance to companies dealing with trade uncertainty.
The Canadian Technology Accelerator also produces measurable results. A Global Affairs study found participating firms had 27% higher revenue one year after completing the program than otherwise similar companies. The positive differences in revenue, assets and payroll became larger over the following years.
But Global Affairs could not determine how much the firms actually became more international because the available data were insufficient. That leaves the commercial outcome Canada now needs to understand. How many firms supported expansion into London, Singapore or another non-U.S. market are still generating recurring revenue there two, three or five years later?
Canadian fintech history shows why market entry alone is a weak measure. Wealthsimple built a UK business for almost five years and reached about 16,000 customers before selling the operation and concentrating on Canada. Clearco expanded into several overseas markets before transferring its international business to Outfund as ecommerce growth slowed and financing conditions deteriorated.
Neither case proves Canadian fintechs cannot compete abroad. They show how demanding a foreign operation becomes when a company has to fund customer acquisition, staff, compliance, banking relationships, treasury, tax and product adaptation while continuing to compete at home.
VoPay is using another model. The Vancouver founded payments infrastructure company established a global headquarters in Doha in January 2026 while keeping its Canadian operations active. Qatar is being built as a major hub for expansion across the Middle East, Africa and Southeast Asia, with more than 400 planned hires across engineering, technology, security, compliance, data and platform operations. The company didn't abandon Canada, but a meaningful part of its next stage of international capability is being built outside the country.
For Canada, it's not a simple win or loss. VoPay remains rooted in Canada while using Qatar as a launch point into several non-U.S. regions. Using a regional hub can also reduce expansion risk by putting management and operating capability closer to target markets while the Canadian core continues to run. The policy question is where the next layer of technical talent, management, partnerships and enterprise value accumulates as Canadian companies expand internationally.
The U.S. capital pull starts much earlier. NCFA's productive participation analysis examined the Canadian founder drain into the U.S. technology ecosystem. Barn Ventures describes a founder conveyor in which U.S. investors and programs recruit Canadian talent from high school and university through company formation and later scale.
Barn's analysis of the Dominion List found 517 U.S. based companies with a Canadian founder had raised about US$414 billion. It found 73% headquartered in California and 56% in San Francisco. Barn also found the number of listed companies founded each year rose sharply after 2022, while acknowledging that the Dominion List is a curated catalogue rather than a census.
Large U.S. capital markets and Silicon Valley's technology ecosystem will always attract ambitious Canadian founders. Those organizations are doing what successful capital markets do. The Canadian problem becomes more serious when founders also conclude they need to leave to get the capital, customers, infrastructure or operating environment required to build a major company. Canada can then lose value at both ends. Some promising founders build in the U.S. before substantial enterprise value accumulates here.
Also, Canada's main export programs generally engage firms after they have built meaningful operating capacity or market traction. By then, their products, sales models and management experience may already have been shaped largely around Canada and the U.S., while competitors in non-U.S. markets have spent years building customers and local experience. That is why promising firms should encounter non-U.S. customers, regulators and market requirements earlier, before they reach the stage where most formal export support begins.
Financial infrastructure can add to that timing gap. NCFA's financial infrastructure history shows Canadian fintechs developing while Real-Time Rail, wider payments access and regulated consumer driven banking arrived multiple years later than comparable infrastructure in several major fintech markets.
That does not explain Wealthsimple's UK exit, Clearco's retrenchment or any other individual company decision. It also affects what Canadian firms learn at home. Years of working with real time payments, portable financial data, modern APIs and digital onboarding build practical experience that can help when companies expand into other markets.
If Canadian firms gain important financial capabilities later, they also have less time to turn them into competitive advantages before entering non-U.S. markets.
The quickest response to Canada's urgent need to diversify beyond the U.S. is not more export information. Canada already has market intelligence, trade commissioners, financing programs and buyer introductions. The priority is to shorten the time between choosing a non-U.S. market and winning recurring revenue there. Canada can do many things differently to help achieve this.
1. Start earlier. Promising fintech and digital companies should encounter non-U.S. customers, regulators and financial institutions while their products are still developing. This doesn't mean sending every startup overseas. It means finding companies with strong technology and real differentiation early enough that requirements in several jurisdictions can influence what they build.
A company that learns to work across several payment systems, data rules, onboarding requirements and regulatory environments before reaching scale develops a different skill set from one encountering that complexity for the first time after years focused on Canada and the U.S.
2. Push buyer introductions toward commercial conversion. Canada already connects companies with qualified contacts, potential customers and partners. But they need to track and measure how consistently those introductions turn into technical evaluations, paid pilots, contracts and recurring revenue. Trade Commissioners in priority non-U.S. markets are well placed to identify concrete buyer needs and concentrate Canadian firms with relevant products against those opportunities.
That also creates better intelligence. If Canadian fintechs repeatedly lose the same types of opportunities in London, Singapore or São Paulo, Canada can determine whether the problem is product fit, pricing, licensing, procurement, financing or a capability competitors already possess.
3. Finance the period between market entry and recurring revenue. CanExport can provide up to $50,000 toward eligible international business development costs. EDC's Trade Impact Program has up to $5 billion of additional capacity over two years and supports working capital, guarantees, credit insurance and other financing tools. Those tools become more useful when they are organized around the economics of a specific foreign operation. Customer acquisition, regulatory work, FX, payments, local staff and management time can absorb capital before a new market supports itself.
For regulated fintechs, entering another country is like building a second company while the first keeps operating. Management needs to know what the foreign operation costs, what milestones justify further investment and when the economics no longer support continued expansion. That discipline protects the Canadian core while giving a promising foreign business enough runway to prove itself.
4. Measure whether companies win and stay. Canada should track the time from choosing a non-U.S. market to the first paying customer, how many assisted firms develop recurring revenue and how many are still operating there after two, three and five years.
The same scorecard can track local licences, staff and operating entities alongside the value that remains anchored in Canada. That includes Canadian employment, management functions, intellectual property, investment and capital recycled into the next generation of companies.
Those results would expose the bottlenecks quickly. A firm that receives many introductions but cannot win customers has a different problem from one that wins customers but cannot finance its expansion. A company delayed by licensing, payments or compliance needs a different response again.
Canada's non-U.S. diversification push became urgent much faster than companies can build international experience. The fastest response is therefore partly to start earlier.
Then judge success by whether Canadian companies are winning customers outside the U.S., staying in those markets and keeping enough of the resulting value anchored in Canada.
Canada now needs to diversify beyond the U.S. faster than many of its technology companies have historically expanded internationally. Can it help promising fintechs build non-U.S. customers and operating experience early enough to win against established competitors while keeping more of the resulting enterprise value anchored in Canada?
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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