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Ep28-Mar 8: Rethinking Brokers with Muhammad Rashid

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NCFA Canada | Mar 8, 2019

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Ep28-Mar 8:  Rethinking Brokers with Muhammad Rashid

About this episode:   On this episode of the Fintech Friday's Podcast, our host Manseeb Khan sits down with Muhammad Rashid the CEO of Moregidge. They chatted about how to find a broker that will work for you, how they are revolutionizing the mortgage space and their plans for the future. - Enjoy!

HOST:  Manseeb Khan, Fintech Friday's show host

GUEST:  MUHAMMAD RASHID, Co-Founder and CEO, Moregidge (Linkedin)

BIO:  Muhammad started his career at Flipp, a Toronto-based startup helping retailers digitize traditional circulars and re-imagine the weekly shopping experience. He built and scaled the operations team from 10 people to over 300 across 4 countries. He was also instrumental in developing user retention and retailer ROI strategies through content acquisition and promoting added utility within the mobile app. From there, Muhammad joined Sampler, working alongside manufacturers to distribute targeted, measurable samples directly to consumers. He lead the strategy and expansion of their logistics network into international countries including the UK, France, Italy and Germany. Muhammad is now the Co-Founder and CEO of Moregidge, focusing on reinventing the home-buying experience.

 

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Transcription of Interview

Intro: Welcome fintech Friday's a weekly podcast brought to you by the National Crowdfunding and Fintech Association of Canada and partners.Covering all things fintech block chain be AI and alternative finance.

Manseeb Khan: Muhammad thanks so much for sitting down with me today man.

Muhammad Rashid: Absolutely. Thanks for having me.

Manseeb Khan: For sure for sure. So, could you just for the five or six people that may not know essentially who you are and what your business is. Could you give us a little bit of a rundown of a little bit of your background Mohammed and what Mortgidge is?

Muhammad Rashid: Sure. Yeah. So, all sort of in my background though kind of lay the foundation and do some context on what it is we're building but I came from the tech space I worked from for a bunch of different startups. A lot of them are Canadian success stories like flip my co-founders for companies like Coinsquare, Sampler etc. And a lot of our experience was in building consumer facing technology. I also happen to be a mortgage agent as my side hustle you know kind of a common theme that everybody's got their own side also going. But being mortgage agent actually turned out to be pretty lucrative for me and that's where when I saw an uptick in my own volume, I sort of saw an opportunity to build a solution that helps empower primarily me as a broker to steal my business. They organized and helped work with my customers which when. They turn into the venture I do that we've got in front of us, so mortgage is essentially a digital mortgage platform designed for brokers specifically and we're helping them essentially connect and collaborate with their application. So, you know digitizing the entire end to end process everything from you know receiving a digital application collecting the documents submitting it to a lender and actually closing it and moving into that home. All that can be done on our platform from it. So that's what we're all about.

Manseeb Khan: Yeah that's awesome. I love the whole side hustle story. I mean you know I think everybody would go and everyone has one and like that's the amazing thing about like businesses I'm just like you know some of the past companies that I've interviewed of like you know a lot of their businesses now that are successful like now that I like to touch on what you guys are doing like you guys just closed out a pre-seed round. A lot of businesses start as a side house and then it slowly transitions into an actual hustle.

Muhammad Rashid: Yeah. Yeah, it's super exciting for us. I. The only reason I actually ever got into the mortgage like you know do mortgages as a side hustle. My parents for lack of a better word got screwed over you know with a mortgage broker way back when. And there's always going to be bad apples in an industry. But that was kind of the motivating factor for me to actually get my license and it turns out you know three hundred dollars three months and of course in your license to sell mortgages in Canada. And so that's scary but also good at the same time making the fact that you know I was licensed in three months to be able  to do mortgages for anybody in Canada. So I was really through that experience that we got to where we are but yeah I was you know I attribute a lot of what we've been able to accomplish and achieve in the short succession to the careers I've had in the startup  tech community and so you know I owe a lot of what we've been able to build to Flip to Coinsquare to Sampler because it was a lot of those experiences that serve as guiding principles for how we're shaping forming our platform and our company today.

Manseeb Khan: So yeah good. No that's incredible. So, I mean to harp on a little bit more on the mortgage space. Yeah essentially. Could you just give us a little bit more of what's your philosophy when it comes to mortgages? What are you guys trying to hopefully like revolutionizing the space and essentially why should listeners really care about the work you guys are kind of doing a Moregidge.

Muhammad Rashid: Yeah. If you think about it, you know anybody who ever is seeking out a mortgage or planning on purchasing a home their first inkling is you know I've got to go to a bank obtain a preapproval or apply for a mortgage. And that was kind of the primary medium or channel that people were going through. Now a lot of people realize that the brokers are simply an option in obtaining a mortgage. If you think about it, you know brokers are typically considered or they were considered taboo you know decades ago you really only went to a broker because you know you were getting declined everywhere else. You fast forward a few years people start to realize hey you know what brokers actually have optionality. They've got access to multiple lenders instead of just one. And it's by stroke of luck that the B20, the stress test and the new regulations coming into play making it that much more difficult for some of the lenders to you know the big five Canadian banks to approve mortgages which means more and more people are actually flocking to the broker channel to actually seek out approvals and increase the likelihood or chances of approval and so it's you know that's where we kind of see the shift happening between you know staying loyal to your lender or to your bank and actually people moving over towards the broker channel to actually obtain a mortgage. But there's actually this sort of underlying shift happening in the industry as a whole and so you know kind of put the size of it into perspective the mortgage industry is about 400-billion-dollar market. And I love throwing that number because a lot of people don't understand the magnitude of how important this is. And so, it's also one of the last sorts of industries that's seen little to no innovation in the last little while. And so, you've got a consumer who's shifting towards you know migrating towards digital experiences you know asking for more intuitive applications to help facilitate any other transactions. But you've got an industry that's slowly you know it's surrounded by red tape, regulations you know the lack of open banking in Canada are making things difficult to move in the right direction. And so you've got this industry that's kind of stagnated as a whole and so we saw an enormous opportunity to help leverage the data that's available and market an intuitive experience and essentially empowering the people who are trusted adviser in the space to help foster that migration of consumers not only moving away from banks over to brokers but also for people who are migrating towards wanting a digital experience to facilitate their mortgage the next time they're looking for a transaction.

Manseeb Khan:  The fact that Canada's open banking rules and regulations  like it is it is very strenuous is very it's very locked down. But you know it's I've said this a couple times on the show but like Canada is traditionally very conservative. And the fact that like Canada is now slowly starting to kind of open up its doors and start considering you know smaller fintech like you. And now it sucks but hopefully like in the later on a future like open banking would be more accessible. And it just going to make it that much more easier for Canadians to kind of not really know what they think mortgages don't have to go to a bank right. They can kind of go to guys like you. They can go to another mortgage broker or they can become one of their own. You know like mortgage their house if they want to spend three hundred dollars and three and three months of their time. But yeah no I mean like I think open banking is definitely a great conversation.

Muhammad Rashid: The have that like the whole industry sort of evolving wanting to move towards open banking that's kind of a byproduct of the way Canadian consumers behave. And so like I said we really early on took a look at the U.S. market try to understand what it looks like and we pivoted to focus on broker specifically because of the two things that we noticed in that survey and so the first one was the fact that you know consumers prefer to use more technology not solely technology on their next transaction. And so having a broker guide you through that process provides you with feedback really understand what it is you need and sort of develop or build a product or solution from any of the lenders they work with that's tailored to  what you're looking for but the second part of it is the fact that you know there's an increasing trend of people moving towards brokers and so it's not only for the fact that brokers have an increased chance of approval but it's the fact that they've got optionality. They've got a different array of products that might better suit what I'm looking for. They can also offer me a TD product lower than what TD is offering it to me at. And they simply do that by buying down their commission. So, a lot of people who sort of hesitated to using a broker because they felt like they were shady or was there sort of last resort are now actually going to brokers first because they realize that they're actually the optimal choice and in having a conversation with whether they're seeking out their next mortgage.

Manseeb Khan: It definitely dresses like people's overall laziness of I mean I'm saying laziness, laziness and in a good way right. I like the fact that like think about it like OK I want to buy a house and I mean I'm recording out a Yspace  Markham I'm so OK I'll buy if only buy a house and Markham I'm I got to go to a bank and I've got to sit down with got a book and a meeting with a mortgage broker that that's going to take who knows how long? Cool then has to go through my entire background make sure I have good credit. It feels like a daunting task right. Because like hey it should really be easier. Like if I want to buy a home let me just buy a home. I want to spend four weeks five weeks. God knows how long to like just to get in the process of getting a home. Finding somebody finding, a right broker that you know or finding a right bank that's going to really help me out. Right. Exactly.

Muhammad Rashid: And then you've got caught up in the fact that mortgage products themselves are complex and the fact that know there's prepayment privileges there might be higher penalties associate with specific product. And so you know put aside the fact that it's complex but if you've now got to research the different lenders their different offerings and some of these banks are actually only available to brokers think of the brokers as your Expedia you're going to search mortgage transaction through them and they're going to go out and farm out all the deals for you and find out what the best product that suits your needs is and so yeah when you when you get to the point that people are looking for convenience you know a broker is the first step in that process for somebody doing all the research and all the effort for you. And then we see ourselves as the medium or the channel to help take that to the next level in terms of digitizing the end to end process. And so, we layer on top of the brokers but that's how we see ourselves seamlessly working together with them.

Manseeb Khan: Yeah for sure and like you know I mean to speak on about the general consumers. I mean consumers are getting a lot more smarter right. Like we have so much access. I mean we have the Internet. We have a lot of access of information to understand like you in like an hour you can probably have a really good I like brass tacks of like a mortgage option be best for you according to your past credit history.

Muhammad Rashid: Yeah no I wholeheartedly agree. I think gone are the days where it takes you know eight weeks for you to get an answer on whether you're going to be approved and you're sitting their nail biting whether you're going to get approved or not. And so, you know access to data making things a lot easier. The turnaround times for underwriting timelines etc. You know getting down to instantaneously giving a responsive consumer whether they're approved. Yet the convenience factor is definitely a plus. But just having a response immediately and then having to of course correct to find another solution in quick succession is what's key here.

Manseeb Khan: Yeah. And it's kind of incredible like you know we have companies like you in the space that are educating not only like businesses and people in this space but you're educating people  in general and like making them understand hey it's like this doesn't what to look for in a mortgage broker. These are the 10 tips to kind of you know like the education role that a lot of the businesses that are playing in the mortgage space like you said like you could do how much billion is in the mortgage space again. Four hundred. Yes. So.

Muhammad Rashid: So, the mortgage industry as a whole in Canada is about 400 billion. OK. The broker channel specifically represents 50 percent of that so 200 billion goes to brokers.

Muhammad Rashid: Which is which is which is just insane. Yeah. Exactly. Which is insane. That's a that's a stat that I'm sure not many people know. This create an incredible opportunity for everybody to like hey like  this space is a lot of growth. Like you mentioned on the top of an episode of like you know like it's very like they haven't like the mortgage space hasn't really updated since. God knows how long. Right. And the fact that like there is like it should be like a tech implementation to make to make this entire mortgage process that much more easier and much more fluid and much more simpler for like the everyday consumer.

Muhammad Rashid: Exactly. Exactly. I think it's just the general lack of motivation in wanting to improve you know potentially one of the most profitable products for lending institution. But now you. But again, you know to your point you've got a much more informed consumer you've got the ability for them to shop these rates around you've got brokers who have access to banks that don't even face consumers. Yeah. And so be able to access those lenders who might offer me a better deal just because they don't have the brick and mortar is that some of these big five makes up about less of an overhead to offer me a better rate and so you know just like just like you've got fintech we're now heading into the lending space you've got more these different lending institutions popping up again through the broker channel that are giving consumers better access to you know rates better mortgage products but overall just a better consumer experience in obtaining a mortgage.

Manseeb Khan: No, I absolutely think so. I mean you guys did close a half a million-dollar pre-seed around what is I guess like what's the future look like for Moregidge. I mean is there something that us like we the listeners can kind of get excited about is there something that you know that you're really just you know dying to let the world know about?

Yeah. So yeah first of foremost is super exciting for us to close that round, we've got some investors that are pretty well entrenched in the Canadian tech community. So, you've got Goodnews ventures you've got MLA48 Fund you Hustle fund out there in Silicon Valley and all of them have been super instrumental in helping us get to where we are right now. What the future holds for us in terms of that fundraising round number one you've got an immediate opportunity to double down on our product and build a much better product for the brokers we're actually using it. And so, there's still some refinement that needs to happen there based on the feedback we get from them. But the bigger opportunity that exists in front of us is if you think about it from a consumer perspective when I go to purchase a home. Who am I talking to what I'm going through that transaction? I'm going to start with a broker. I'm going to talk to a realtor I might have to speak to an appraiser but I'm also going to speak to a solicitor and a lawyer that actually pulls on the transaction and so you've got all these different parties involved in the same transaction who are essentially collaborating offline anyways because they're sharing information between themselves. And so, where we see the bigger opportunity is to actually bring all these players in this in this transaction into an online ecosystem where they can you know easily collaborate with each other. But the net benefit is actually to the customer themselves and so the net friction for them is a lot less because I don't have to provide my ID or my documentation to four different parties. It's essential if they're collaborating on the same platform that flow of communication is a lot easier the flow of documentation and data is not much easier. Obviously assuming we've got to consent but the net benefits actually to the consumer and so you know we started with mortgage brokers because that was our domain expertise. We've got a waiting list of a couples hundred realtors ready to join our platform because the brokers themselves are bringing the Realtors on to help collaborate with them even more than what they're doing right now and so that's kind of the grander vision is building that end to end home buying journey. We focus on mortgages right now but there's obviously a much bigger opportunity in front of us.

Manseeb Khan: Right. And I guess how different the system would look to realtors would it be would it be comparable or.

Muhammad Rashid: Yeah. So, the good thing is that there's actually quite a bit of overlap in the way that mortgage brokers and realtors operate. And so, they essentially manage their book of business the same way. There’re a few specific features that they ideally be looking for so you know obviously the realtors are handling MLS agreements purchase and sale agreements a different set of contracts than a mortgage broker would do. But that's the primary Delta in how we shape the platform we've gotten really good feedback on them using our platform we're getting acquainted with it. There’re just a few minor tweaks to get us in the position where the real estate can actually use it as part of their day to day business. So, we're pretty close to unlocking that towards the second half of this year. But right now, we're primarily focused on brokers.

Manseeb Khan: That's awesome. That's awesome. So, I guess that when it comes to looking for a mortgage broker or when it comes to finding a mortgage broker what are like are tips looking for mortgage broker that we can rely on for Moregidge?

Muhammad Rashid: Yeah well, I'll give you my perspective. You know we've come across a bunch of different mortgage brokers. I think the ones that stand out are the ones who genuinely care about the relationship and are not on to actually push product. And so, you're going to see this shift happening in the industry as well where people are actually moving away from just the transactional model to more of a customer service-oriented model in that. They're really there to educate you like we're out in the industry educating people on using brokers, but the brokers need to educate consumers on what mortgage products are available at market. And so, education is a big part of it. But a bunch of different brokers that are actually now using different outlets like Facebook, Instagram, Twitter to educate the consumer base that's out there. So, education is a big part of make sure that your broker is informed, and knowledgeable reference points is a big back so don't hesitate to ask the broker for you know any of the previous clients they've worked with. Ask them for a one on one conversation understand their experience understand what they've gone through. Anybody who hesitates to introduce you to any of their previous clients that should be a red flag. But if they if they truly you know stand by their experience and share their expertise and a wealth of knowledge, they'd be happy to introduce you to anybody else and I think the last component is you know how willing they are to adapt and that's kind of the hardest one to gauge. But this isn't a plug for technology in any way but one of the biggest things we noticed is the people who are adopter technology are the people who are adapting with the industry as well and so they're the ones who want to understand how to make their consumers lives easier but they also want to educate themselves on the tools and the systems that are available to run their business a lot tighter to get access to better data and to be able to streamline the entire process and so you know look for four indicators you know somebody just using the bare minimum tools that are available on the market or they're actually taking it you know making the effort and taking the steps to make my life easier. So, my submission of documents is easier. Do they have an online digital application? Are they still making you fill out papers, so a bunch of those different indicators are good? A good way to assess whether a broker is the right fit for you. But a lot of it's really you know Brooke there's always going to be high trust relationships. We're try to use those three different key components to help evaluate whether the book is a good fit for you.

Manseeb Khan: Yeah, I like the if they don't let you have access to so in the past people that they helped out. Yeah there is something wrong with that, I'd  question definitely. Yeah, I know for sure. I would be like wait hold up  what are we doing here? I'm just trying to build a future. What are you doing? Yeah, I love it. I love it I love it So it's I mean it's a new year. What are you excited about in the space aside from the amazing work that you guys are doing over at Moregidge?

Muhammad Rashid: Yeah, I think in general just the direction that the industry is heading in I think you know we briefly touched on open banking but just as a whole you know you've got the different, you've got the consumer who's evolving towards a digital experience and they're wanting it. You've got brokers who are slowly adapting to leveraging technology. But you have the lenders themselves saying you know this is an opportunity for us to double down on building tech to streamline and process. So gone are the days where people said you know four to eight weeks for a mortgage transaction is the standard. There's no way of improving it. Everyone is actually challenging the status quo and saying you know there has to be a better way to do this. And so just that that general mentality in the industry is definitely positive even across the financial services industry. But beyond that you know one of the most exciting things for us is actually the Toronto tech community and so you know I just kind of a little shout out. But the fact that you know we came from tech startups like Flip, Coinsquare, Sampler we were part of some of these amazing cultures and helping grow these companies to the behemoths is that they are now but ever since we left that space and actually ventured out on our own you know the community has continued to be supportive of a lot of people I've helped you know reached out to us saying Hey do you want to chat over coffee will help you navigate you know sales and business development we'll help you navigate product management where obviously you know experience in those different functions but having the community offer a lending hand is really been a huge motivating factor for us and continue to develop what we're doing right now. And so that's one of the biggest things I'm thankful for. But it's also the thing that gets me excited to continue to build the company in Toronto. Yeah.

Manseeb Khan: No, I mean shout out to the Toronto tech community. These guys you know they're amazing for sure. I mean like the mind of. I mean the amount podcast leads and I get from that company then I sat down with like you talk to these guys get to do great stuff. It's definitely incredible. Yeah. I mean is there anything specifically open banking that you're excited about aside from mortgages? I know we definitely briefly touched about it like open banking is such a huge concept. I mean is it like five or six things that you might be like really excited about?

Muhammad Rashid: Yeah. Yeah. I've never done a few but really just the concept of open banking and the fact that there's much more free flowing information and access to data. I think that’s one of the key parts of open banking in that it's going to help further enable competition. And so, you know I kind of draw parallels to other industries where you know who doesn't get pissed off at their cell phone bill and say no there has to be a better contract available or I'm spending too much money on it. And so, the same applies to the financial services industry where you've kind of got the big five banks that have kind of dominated the industry for the loss of a while and so I actually see it in a positive light that there's motivation and an opportunity for these lending institutions to further refine their product offering and competition is healthy right. Helps you stay on your toes, it helps you know make sure that you're delivering the best solution to your customers and so open bank is actually going to be an opportunity to unlock that that healthy competition in the Canadian market especially because just giving again companies like us access to data obviously handling it in the right way but using that information to further promote better solutions better product better service for these customers is what's going to get everybody as a community driving towards better service and their customers. And so yeah, I actually see it in a positive light. I know a lot of people have varying opinions on it and I'm obviously biased because open banking helps our company, but I just think it's the general right direction for the entire industry in the entire financial services sector to be moving towards just help for the mountain foster that community in that healthy competition.

Manseeb Khan: Yeah and like open banking what it really does it really helps level the playing field.  Right. Because like you mentioned like when you think of mortgages you think I'm going on bank the fact that you can go to an actual broker and  to make that much of a less headache. That's amazing. Exactly you and taking that taking that concept and expanding it and putting it to other aspects of when it comes to banking like hey like if I want to find like a new insurance plan, I can do that. If I want to find a new savings plan, I can do it Like who has the best like if I want to get an investing. It just it really helps open up so many doors for consumers and for smaller fintech’s which is incredible because it just it just really levels  out the playing field.

Muhammad Rashid: Yeah. I couldn't agree more. Your kind of heading towards this direction where all these different products and services are going to eventually start speaking to each other and so we're talking about optimizing that customer experience. Yeah, you're right. I'm going to start with my mortgage  but hey, but I can also layer on home insurance. I can also package auto insurance and get a better discount, but you have all these different products in the system speaking to each other. It's only going to benefit the  end consumer who's actually seeking out all these things. So yeah that's a step in the right direction.

Manseeb Khan: Yeah. And then it's going to slowly move towards of consumers kind of like doing everything just online not like an online supplement that should be. That's a very interesting conversation  right there.

Muhammad Rashid: Exactly. Yeah. That's a topic in itself yeah.

Manseeb Khan: So, with that I just throw it on to you is there anything else you want to touch up on before we wrap this up?

Muhammad Rashid: Yeah. No, I think I think the biggest takeaway from this is just the education piece on the difference between a bank and a broker right. Well one of the things I'd like to quash is the negative perception of the negative connotation around the broker. And so like I said you know the common perception that a lot of even my former colleagues and a lot of people I speak to you know you only use a broker because everywhere else was declining or you know there's something wrong with your credit or something wrong with your income and that's why the reason you're using a broker. So I think the biggest takeaway for anybody listening to this is the fact that brokers again they offer you optionally they offer you an array of products that aren't available to the general public typically through some of the big lending institutions and so I actually encourage people to have conversations with brokers just to sort of feel out their options and see what's in front of them and compare that to what some of the bigger institutions are offering you. I think it'll be pretty clear that they'll see the benefit right away and again no don't talk to any broker take my advice and sort of you know do your research on the different brokers again. So, it's obviously a high trust relationship and this is somebody who is going to be helping you navigate one of the biggest transactions of your life. And so again do your due diligence just like you would with any other any other product or service you're looking to acquire or purchase. But yeah, I think that's the biggest takeaway is be open to working with a broker and I think definitely explore that channel if somebody is in the midst of purchasing a home or looking to refinance as well.

Manseeb Khan: Yeah awesome I love that. So, everyone either become your own broker or find or find one that loves you. Exactly. Exactly. I love it. I love it. So, Muhammad to wrap this up we'll be the best way for our listeners and to anybody that's looking to you know find a  mortgage brokers what we'll be the best way to either contact you or Moregidge would have been through like email, Snapchat, smoke signal, raven?

Muhammad Rashid: No, we're across all social channels so we're on Twitter, we're on Facebook , We're on Instagram. We're pretty quick to respond that's actually a metric we track our typical response time is within 10 minutes. So, feel free to reach out to us either through our social channels or on our website. Moregidge dot com. I'd be happy to just have a conversation with anybody who is either a broker themselves or a consumer who's actually looking to engage with a mortgage broker we're happy to help anybody navigate those conversations.

Manseeb Khan: Awesome Muhammad thank you so much for sitting down with me today and I am so pleased to have you back on.

Muhammad Rashid: I appreciate it. Thanks so much.

Manseeb Khan: Yeah, no problem.

Outro : you've been listening to fintech Fridays brought to you by NCFA and partners. Tune in weekly for the latest fintech Friday podcast by subscribing to this channel. The National crowdfunding and FinTech Association of Canada is a non-profit actively engaged with social and investment fintech sectors around the globe and provide education research industry stewardship services and networking opportunities to thousands of members and subscribers. For more information please visit and see if a Canada dot org. Oh yea.

 

End of Podcast

 

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NCFA Announces Additions to Speaker Line-Up and Program for 5th Annual Fintech and Financing Conference in Toronto
Bloomberg | By Doug Alexande and Matt Robinson | March 19, 2019 His crimes: identity theft related to a bank-and-credit card scam. His sentence: 18 months in U.S. federal prison and, later, deportation to Canada. Once there, Omar Dhanani underwent a remarkable transformation -- into a new identity and the wild world of cryptocurrencies. Dhanani, now known as Michael Patryn, has emerged as an enigmatic figure in the strange case of Quadriga Fintech Solutions Corp., the digital exchange owner that hasn’t been able to find C$260 million ($195 million) of clients’ cash and cryptocurrencies. Patryn co-founded Quadriga five years ago with the late Gerry Cotten, whose sudden death in December at age 30 left the Vancouver-based firm in shambles. Patryn denied he was Dhanani in a Feb. 8 report in Canada’s Globe and Mail newspaper and disputed a subsequent report linking him to a criminal past. But Canadian records obtained by Bloomberg News confirm he legally changed his name -- twice: in 2003 and in 2008. The revelation adds a new layer to the mystery surrounding Quadriga, whose closure in January left 115,000 clients wondering if they’ll ever get their money back. Cotten ran the operation mostly from his laptop, so ...
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Criminal Past Haunts Surviving Founder of Troubled Crypto Exchange
Ryan Aceman, special to BNN Bloomberg | March 15, 2019 #FFCON19 is set to showcase the importance of being fearless to succeed in Fintech 12 cutting-edge companies will compete in a ground-breaking pitch competition  Key emerging trends from tech and investment realms will be highlighted Where finance and technology meet, lies one of the most fascinating sectors of the modern world. From its inception, the financial technology (Fintech) space has been built on inventive thinking and unconventional concepts. This crucial intersection has the power to transform global banking, investing, and many other sectors that people and businesses interact with on a daily basis. "The Canadian Fintech industry is leading the way in revolutionizing financial services and events such as FFCON19 to help create a strong ecosystem that cultivates innovation and growth.  Excited to be a part of it!" — Dr. Dan Rosen, CEO of d1g1t.com From April 3rd–4th in Toronto, Ontario, FFCON2019: Fearless will aim to embody this innovative essence, hosting a variety of influential thought leaders, industry experts, and 750 attendees. The event will function as a comprehensive and daring expo showcasing innovators and disrupters that are having significant impacts within Fintech. Attendees will learn vital content delivered from ...
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Canada’s leading Fintech and financing conference
Chainbits | Nathan Rodriguez | March 14, 2019 After the ongoing saga of Canada’s largest cryptocurrency exchange QuadrigaCX’s downfall, another Canadian cryptocurrency company is now coming under scrutiny. Canada Bitcoin Exchange Inc. is now being investigated as a possible scam. Warning Against Canada Bitcoin Exchange The British Columbia Securities Commission (BCSC), a Canadian financial regulator, has issued a warning against Canada Bitcoin Exchange. The watchdog stated that the company was offering overly attractive BTC (Bitcoin) investment plans to its customers. Canada Bitcoin Exchange was offering 4 different BTC investment plans on its website. Each of the programs asked users to invest a certain amount of capital for a period of 24 to 48 hours. In return, the company offered returns that started at 3.586% and went as high as 7.985%. The website stated that Canada Bitcoin Exchange would reinvest customers’ BTC in other stocks as well as cryptocurrencies. The company claimed to have a team of professional market analysts in place who knew how to find hot stocks. The company also stated that this project was run by the Canada Bitcoin Exchange Group. Signs of a Scam Upon investigating the company, the BCSC found that Canada Bitcoin Exchange was an ...
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Another Canadian Crypto Exchange Under Fire
Dr Dan Rosen is a FinTech Entrepreneur and Quant. He is currently the Chief Executive Officer of d1g1t Inc., a new digital wealth management platform, powered by analytics, that offers advanced transparent portfolio management services to advisors and their individual investors. He is an Adjunct Professor of Mathematical Finance at the University of Toronto and was the first Director of the Centre for Financial Industries at the Fields Institute for Research in Mathematical Sciences. Dr Rosen was the co-founder and CEO R2 Financial Technologies, acquired by S&P Capital IQ in 2012, and where he was Managing Director for Risk and Analytics until 2015. Prior to starting R2 in 2006, Dr Rosen had a successful career over a decade at Algorithmics Inc., where he led financial engineering and research, strategy, products and marketing. In addition to working with numerous financial institutions around the world, he lectures extensively on financial engineering, portfolio management, enterprise risk and capital management, credit and market risk, valuation of derivatives and structured finance. He has authored numerous risk management and financial engineering publications, including two books, and several patents, and serves in the editorial board of various industrial and academic journals. Dr Rosen was inducted in 2010 ...
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Meet FFCON19 Featured Keynote Speaker: Dr. Dan Rosen
NCFA | FFCON19 Team | March 14, 2019 Want some credit for being in Fintech? Things are tough out there for some parts of Fintech. If you are part of the ICO, blockchain economy for example, they tell you it’s winter. Those bear markets are tough. It’s like Rodney Dangerfield used to say: No respect. You just wish you could get some credit for your hard work and your groundbreaking innovation... I’ve got some good news for you. FFCON19: FEARLESS has partnered with a company that wants to give you the credit you deserve. Well, $10 bucks worth on your next ride with our friends at Lyft. (No taxi for you!) But only if you register and join us on April 3-4 in downtown Toronto. FFCON19 is a fintech focused conference and expo with several special guests, an amazing lineup of speakers, many well known investors and investment opportunities galore through a pitching competition. And guess what? You can still get a discounted ticket. But you only have 2, that’s right, TWO days left. This deal disappears on March 15, 2019. So if you would like Lyft to give you a little fintech credit while networking, pitching, speaking, connecting and ...
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Want some credit for being in Fintech?
CSA | March 14, 2019 Toronto – The Canadian Securities Administrators (CSA) and Investment Industry Regulatory Organization of Canada (IIROC) today published Joint Canadian Securities Administrators/Investment Industry Regulatory Organization of Canada Consultation Paper 21-402 Proposed Framework for Crypto-Asset Trading Platforms. The consultation paper seeks input from the fintech community, market participants, investors and other stakeholders on how regulatory requirements may be tailored for crypto-asset trading platforms (platforms) operating in Canada. “This consultation outlines a proposed regulatory framework that provides clarity for platforms, greater market integrity and protection for investors,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “Platforms have told us that a tailored regulatory framework is welcome as they seek to build consumer confidence and expand their businesses across Canada and globally.” “The emergence of digital and crypto assets continues to be a growing area of interest for regulators, investors and marketplaces – and, together, securities regulators are taking steps to deepen our understanding of this area,” added Andrew J. Kriegler, President and CEO, IIROC. “We must adapt to innovation, and provide clarity to the market about how regulatory requirements might best be tailored and applied to these unique business models, while ...
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Canadian securities regulators consult on regulatory framework for crypto-asset trading platforms
Polymath / KABN release | March 11, 2019 TORONTO & SAINT MICHAEL, Barbados & GIBRALTAR--(BUSINESS WIRE)--Polymath (www.polymath.network), the global leader in software solutions that enable assets to be digitized, distributed, fractionally owned, and ultimately liquidated, has formed a consortium in close collaboration with KABN (www.kabn.network), a global financial services platform that has developed, among its suite of products, a patent pending, blockchain based, GDPR compliant, Always On, global identification and accreditation as a support service for investors and other types of contributors. Polymath is leading the effort to make it easier for organizations to create digital securities from traditional assets through partnerships and a community that supports a transparent and compliant process for issuers and investors. Through its extensive service provider network with firms like KABN, Polymath provides security token issuers with access to top quality service providers. “Our solution supports the creation of digital securities from a wide range of traditional and non-traditional assets,” said Kevin North, CEO of Polymath. “The intention of this partnership is to create a best practice model for customers who need help with the full lifecycle of an STO (Security Token Offering). In this model, the issuer would work with an integrated network of ...
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Polymath and KABN Announce Consortium to Accelerate the Creation, Distribution, and Management of Digital Securities Across Multiple Jurisdictions and Platforms
NCFA Canada | Burden Reduction Committee | March 1, 2019 Executive Summary In response to the Ontario Securities Commission’s (OSC’s) January 14, 2019 request for comments, this submission responds to the eight questions set out in the OSC’s Staff Notice 11-784. This submission draws heavily on, and also updates, the Association’s earlier submission to the OSC dated August 24, 2017 (see Appendix), which primarily focused on the crowdfunding requirements in Ontario. The National Crowdfunding and Fintech Association of Canada (the Association) represents over 2,000 fintech SMEs and individual members that support financial and capital market innovation, small businesses and technology. We are pleased that the Ontario government is undertaking this important regulatory burden reduction initiative to the benefit of all Ontarians. The Association has consulted a number of diverse crowdfunding and fintech stakeholders – including exempt market dealers, industry experts, securities lawyers, regulators and government agencies and is proposing several recommendations to reduce unjustifiable burdens placed on Ontario’s businesses. The Association recommends that the province undertake the following: The OSC conduct a review and publish a report evaluating the effectiveness of Ontario’s crowdfunding regulations (45-108) compared to other jurisdictions in Canada and international competitors such as the UK, US and ...
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March 1, 2019:  NCFA Submission to the Ontario Securities Commission on Regulatory Burden

 

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