Santa is readying his sleigh for a big journey next week, which signals that another year is just about wrapped up.
In 2024, a robust roster of professionals from across the financial and technology spectrums inked the pages of Fintech.ca, covering wide array of important and interesting topics—from payments processing to AI to crypto to customer satisfaction to content marketing and much more.
Below, we reflect on a selected handful of experts who informed our readers throughout 2024 with deep data and industry insights, while also provoking them to think more about the current state—and forthcoming future—of financial technology in Canada.
Will Banks Learn to Build for Customers?
Canadian banks are “stuck in a bygone era,” one expert argues.
“Customers today expect more than just online banking portals and mobile apps with basic functionalities,” says Tyler Thielmann, chief executive officer of Spring Financial.
Users now demand intuitive experiences that cater to their needs in real time, he suggests, as well as formerly “luxury” features such as personalized insights, instant approvals, and integrated investment tracking.
But while fintech startups are rapidly adopting the latest tech, “many of our domestic institutions remain hesitant,” Thielmann wrote.
Enhancing customer engagement begins with listening to the needs of your customer base, he says. Too often, people in banking are coming up with product ideas or technology roadmaps that “are not in proximity to the customer,” or commit to projects that take too long to develop and push to market.
“It’s clear there is a disconnect between digital banking tools and the customer experience,” Thielmann wrote for Fintech.ca. “As a new age of banking emerges and we see more technological adoption by the Big Five, it’s important to continue to place customers first to create digital banking solutions that are not only advanced but truly transformative.”
Ensuring Startup Cybersecurity is Up to Snuff
In today’s increasingly digital economy, cybersecurity has become an essential focus for businesses of all sizes.
“With the rise of digital payments and the growing reliance on online platforms, small and medium businesses, including fintechs and startups, might believe that their size of business makes the risk of cyberattacks low; in reality, cybercriminals might see these businesses as easy targets,” warned Amisha Parikh, who serves Mastercard as Vice President of Security Solutions, in an exclusive interview with Fintech.ca during Cybersecurity Awareness month.
Phishing attacks, ransomware, and identity theft are among the most common threats that fintechs face, according to Parikh, who warns that “cybercriminals are becoming more sophisticated, using techniques like AI-driven phishing emails that can look incredibly authentic.”
Indeed, AI is a “double-edged sword,” Parikh says, functioning as both a powerful new line of defence but also an unprecedented tool of attack.
One of the biggest trends in the fintech cybersecurity space is the move toward password-less authentication, according to Parikh, which uses biometric data like fingerprints or facial recognition.
“This not only improves security but also creates a more seamless user experience,” she suggested.
Beyond any one specific measure, however, “staying proactive and continuously adapting to new technologies will be key to staying ahead of cybercriminals.”
How Supply Chain Finance is Finding Footing
Small businesses are often in need of financing to support cash flow, but the credit gap is huge, and lenders’ hands are typically tied due to concerns around risk.
As governments push to lend more to SMBs, “Supply Chain Finance” could be one solution according to Abhishek Bhasin, who serves as Head of Product for Uplinq Financial Technologies.
Supply chain finance is the concept of financing a dealer of a corporation against their invoices to facilitate quicker access to working capital for suppliers.
It’s a buyer-side approach, Bhasin says, as opposed to seller-side financing which is based on the financial strength of the seller for accessing credit through products like invoice financing or factoring.
“Imagine suppliers with not much prior trading history or creditworthiness being able to access bank financing based on the financial strength of buyers,” he wrote for Fintech.ca. “They can deploy these funds for further growth and expansion. These suppliers often operate in communities that are underserved, thereby creating a transformational economic opportunity for all the players in the ecosystem.”
More Maple Syrup for My Bitcoin, Please
Montreal’s Shakepay believes it’s time for Canada to allow Canadians to invest directly in Bitcoin within their qualified investment accounts, similar to the approach taken by the United States.
The company is biased, of course—its business is broadly based around Bitcoin, after all—but head of business development Eric Richmond makes a compelling argument on the pages of Fintech.ca for why Bitcoin should be available for qualified direct investment.
“Bitcoin carries a significantly different risk profile compared to other cryptocurrencies,” he posits, citing the coin’s decentralized network and predetermined scarcity.
“Canada has already made strides in acknowledging Bitcoin’s potential,” Richmond wrote, pointing to Bitcoin-based ETFs which have been emerging onto the market since 2021.
Bitcoin has also achieved “significant levels of maturity,” he added, referencing “rigorous security protocols and compliance measures that align with traditional market standards.”
These factors, alongside Bitcoin’s liquidity and moderate volatility (when compared with other cryptos and high-risk stocks), render the digital currency “a suitable candidate for inclusion in qualified accounts,” according to Richmond.
“Allowing direct Bitcoin investment in RRSPs and TFSAs is a natural progression for Canada’s financial ecosystem,” he says. “It acknowledges Bitcoin’s maturity and stability, comparable to traditional assets, while providing Canadians with more opportunities for diversification and growth.”
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