What Were the Payments Canada Summit Insights?

On May 24-26, I attended the Payments Canada Summit in Toronto and many hot topics were covered over these three days. Amanda Lang did an incredible job hosting what was said to be the largest event for Canadian payments executives.

The most discussed topics of the Summit were certainly the importance of blockchain and the upcoming 2018 review of the Canadian Payments Act and how it will affect regulations. Blockchain is gaining a much stronger hold on the industry – last year’s venture capital investments totaled almost $1 billion – and 2017 is set to be the year it really makes its presence known. After all, major companies are starting to recognize its importance and increase its use. IBM, a major force in the business world, has over 400 blockchain clients globally…and that number is growing. In fact, Marie Wieck, Head of Blockchain Technology at IBM, stated that IBM has worked on more blockchain projects than any other player in the industry.

The powerhouse banks and FinTech startups are collaborating (in true Canadian fashion) to remake our financial industry business models (in true Uber fashion). Borrowell partnering with CIBC and Flybits partnering with TD were well-presented examples in panel discussions.

In a panel discussion. Andrew Moor, CEO of EQBank, and Todd Roberts, SVP, Innovation at CIBC, went toe-to-toe promoting the largest digital bank in Canada and traditional face-to-face banking respectively, with Payments Canada Lib Gibson supporting each side on different topics. Although the discussion was pointed, Andrew Moor’s example of a Swedish bank closing half of their branches and set to close another half was undebatable and  indicative of where the banking industry is headed.

And congratulations to Finn.ai, who overtook 10 FinTech pitches to claim the FinTech Cup, and Mindbridge, who took home the people’s choice, chosen by the audience via the Summit app. Both of these innovators are Artificial Intelligence (AI) platforms. In fact, AI was well represented at the Summit and is without a doubt a hot topic that is not going away anytime soon.

Kosta Perric of the Bill & Melinda Gates Foundation brought a social justice component to the Summit, with an inspiring message of equality for all humans and a call to executives to help drive social change in much needed areas of the world.

You wouldn’t expect anyone at the Payments Canada Summit to suggest that Canada is underperforming on the payments world stage, but rest assured that the innovations and talent profiled at the event were above debate. The payments industry in Canada is energetic and collaborative and all parties look forward to seeing how blockchain will revolutionize the industry.

The overarching message to executives was to lead with innovation and balance with regulation to keep customers safe. The industry has never been in a more exciting time and has not moved this rapidly since the dawn of the internet.  We look forward to seeing what the innovations of tomorrow will bring to the field.

How to Reach the Millennial Market

Technology is ever changing the work environment and FinTech is set to take us through yet another revolution. One major bonus is the fact that the millennials–who are quickly becoming the guiding force of the economy–are incredibly technologically savvy. What does this mean? Millennials are easily adopting the new technologies FinTech is introducing, which gives these innovations power in the marketplace.

How do you reach the millennial market? Well, you look at their lives and needs and find a solution to a common problem. This is what Moneydance  did. Their startup allows users to have a clear overview of their finances, showing them their banking history and investment portfolio; as well, users can send payments through Moneydance..

The system also has an app that allows users to create graphs and reports to track income and expenses, making the process of creating and sticking to a budget that much easier.

Startups aiming to capture the millennial section of the market need to be technologically savvy, as this generation is expecting this of its companies. Even if your product is (in your mind) revolutionary, if it doesn’t link up to modern technology millennials will look for options that do. This is why FinTech is primed to capture this market and why it is a good area for startup growth potential.

Why You Should Consider an Accelerator For Your Startup

In business–and especially in startups– an accelerator is a very important part of the team. After all, these are the entities that provide the knowledge and funding to keep a company surviving and thriving. Maybe you are a startup just taking your first unstable steps in the marketplace (or just standing on the sidelines thinking about walking) and you wonder whether or not you should reach out to accelerators. Well, here are some things to consider.

1. Accelerators have access to capital.

It is true that the accelerator program is about far more than just money, but the fact of the matter is that accelerators are an important contact that can lead you to potential financial sources like venture capitalists. There are a myriad of reasons for this, but the biggest one is that startups connected to accelerators have more clout, as accelerators do due process to ensure a startup will make money before adding it to its portfolio. It’s yet another example of “It’s not what you know but who you know.”

2. Accelerators provide much-needed mentorship.

Yes, I know, you studied business in school and built the base of your startup yourself. Trust me, you still need mentorship. (And no, this need for guidance doesn’t make you less of a startup trailblazer.) Mentorship can help guide your startup through the minefield that is the early marketplace and help you avoid common pitfalls. In fact, mentored startups dramatically outperform their unmentored competition, doubling the success rate of launching and surviving.

3. Accelerators help you understand your market.

You have to know that you will face competition in the marketplace. Regardless of how groundbreaking you may think your startup is, other startups and businesses will be competing with you for your customer base. Knowing that they are there and having a sense of what their strengths and weaknesses are will help you better maneuver yourself in the market.

Successfully thriving in the marketplace takes a lot more than luck. Don’t overlook accelerators, as they can be the element that pushes you to the top of the FinTech business chain.

How FinTech Will Help Millennials Save For Retirement

In today’s business world–and this is especially true for millennials–Freedom 55 is almost a pipe dream. People are working later,  partly because we are living longer and partly because government pension plans aren’t what they used to be. As well, the 2008 financial crisis devastated the stock portfolio of many Generation Xers and crippled the economy for millennials, who were then unable to start saving as much as they wanted to–even though they are well aware of the importance of retirement savings.

Add in the changing workplace, which is seeing the erosion of the benefits system, and you have a potential disaster brewing.

So how do people in today’s market prepare for retirement? And how do you ensure that your employees aren’t left stranded at the end of their career? It shouldn’t surprise you to know that FinTech has the answer to that conundrum.

The founders of ForUsAll saw the problem that came with smaller companies and their ability to process retirement contributions for employees and set out to simplify the process. Offering 401(k) advice, the company also takes on the administrative responsibilities, reducing the work companies have to do to process benefits. When combined with their fees, which are lower than conventional advisors’ fees, ForUsAll has positioned itself as the perfect solution for today’s retirement fund needs.

FinTech is, in many ways, the masses taking power back from the big banks. Through these innovative startups we are freeing ourselves from the red tape and drowning interest rates imposed on us by the previous big bank system. Are you a millennial already fantasizing about retirement but worried about the roadblocks between you and this dream life? For those of us saving for retirement and worrying about our savings options, FinTech’s entrance into the retirement field is a life saver.

Are You Going to the Payments Canada Summit?

Finance is undergoing a revolution. We all know this. For those of us working in the field, and especially those of use working in FinTech, the process is incredibly exciting and getting to know more about what is happening is always a welcome opportunity.

On May 24-26, 2017, Payments Canada is hosting a summit for the innovators in the payments field. For anyone working in (or interested in) the business, this is the place to go if you want to know where the financial revolution is taking us.

Attendees will have the opportunity to learn from financial experts, as the summit features keynote speakers from numerous companies ranging from successful startups like CauseSquare to financial superstars like ScotiaBank, Interac and Paypal Canada. Regardless of the level of success your startup has achieved, the keynote speakers are sure to impart vital tips for survival in the fierce financial industry.

Although the entire summit is a must for businessmen and women working in FinTech and InsurTech, the FinTech Cup is probably the most valuable event for FinTech startups and entrepreneurs. New startups can use the competition to gain vital exposure and funding for their business and more established startups will be given the opportunity to pitch their company to many of the top players in the business world.

Any successful startup considering the summit also needs to look into the exhibitor opportunities, as this is an excellent way to draw more attention to your brand. Exhibitors are given numerous perks, including social media and app mentions, promotion via corporate slides and the delegate bag, networking opportunities and exhibit space you can use to introduce your startup (and its amazing attributes) to the many attendees of the summit.

The Payments Canada summit is the largest payments conference in Canada and is a vital event for startups or companies looking to expand their hold on the financial market. If you want to ensure the success of your business, it should be in your calendar.

How Women Are Changing FinTech

It’s been said that finance is a boy’s club and FinTech is (sadly) no exception. Yet despite the overwhelming presence of testosterone, women have slowly been working their way into the clubhouse and fighting to be seen as equal members. These businesswomen are proving to be true entrepreneurs and worthy of a featured spot in the market. Better yet, their startups are aiming to target the needs of the underserved female financial market. After all, there are many differences between the earning power of the two genders (pay gap, life expectancy, etc.) and one basic financial system won’t best meet their unique needs.

Ellevest, for example, is addressing the lack of female representation in finance by offering women access to digital advisors that are specifically designed to meet their financial needs and habits–i.e. “redesigning investing for women.” Offering customized portfolios to meet the many various financial realities of modern women and a goal-based investing system that lets women women pay attention to their own needs and goals (instead of what’s going on the market), Ellevest helps women feel comfortable dealing with their finances.

If you are aiming to follow in her footsteps (or in the footsteps of Jennifer Fitzgerald, CEO of PolicyGenius, or any of the other women who have shattered glass ceilings) but are feeling slightly hesitant about your funding ability, there are collectives that can help. Global Invest Her, for example, is seeking to make a real change in the economy by funding women entrepreneurs. And of course we at Leadervest can help grow your company through sales and marketing consulting and connect startups with interested financial backers.

The global financial revolution is fantastic for many reasons, and one of them is the opportunity it brings to remodel the system to meet more people’s needs. If the right people join the evolution, we can create and perfect a financial system that can help everyone instead of a banking system designed to privilege the 1%.

How the Partnership of Titans Will Change FinTech

Considering how important a breakthrough big data was, it shouldn’t be shocking to learn that it is set to make an impact on countless parts of the financial industry. After all, that shift in how we analyze financial data can have a drastic impact on how businesses operate.Read More

How Insurtech Is Looking to Africa

Are you torn between wanting to invest your money and wanting to use your money to help change the world? What if I told you that, thanks to InsurTech, you can do both?

Much could be said about the innovations startups have brought into our world. Thanks to these brilliant entrepreneurs and businesses we now have access to thousands of services we can no longer imagine living without. Yet special notice needs to be given to startups that aim to not only make our lives easier but improve the lives of the less well off.

Meet WorldCover, the ideal Insurtech startup for today’s socially conscious world. This company gives investors the opportunity to put their money in insurance investments for farmers in Africa and in turn receive a percentage of the premiums paid by the farmer. In return, the farmer is covered for income loss in natural disasters or extreme weather.

Stating that this form of investing has a better return file than either stocks or bonds, WorldCover aims to provide coverage to over 200, 000 farmers worldwide–although it is currently focused on farmers facing drought conditions in Africa. The company uses satellite technology to monitor rainfall and determine payouts and uses modern technology to make the application and investment process easy for interested investors.

After seeing the good that FinTech and InsurTech can do it really is exciting to think of what the future holds for these technologies changing more than just the business world. This new technology revolution is bringing with it real change and may prove to be the solution to so many economic injustices. We’ll just have to watch and see.

How FinTech Will Overtake the Payday Loan Industry

One of the major issues of the modern (Western) banking industry is the two-tiered system. You have the privileged who, born into a solid financial base, can easily access the funds needed to start their way on the road to success, and the unprivileged, who are not given the easy access to capital and are forced to find other arrangements. Unfortunately, nefarious elements saw this opportunity and did everything to exploit it.

Payday loans are a known evil in today’s financial world. These companies use predatory lending to prey on the desperate and creditless members of society and tie them into loans with ridiculous repayment terms and interest rates. Although the problem was well known and various levels of the government promised to bring in legislation that would limit their ability to charge such punitive rates, the people who patronized the payday loan companies were not really offered a solution that would get them away from this problematic industry.

And then we entered the FinTech era and the banking industry was given a much needed upgrade. Suddenly the people the financial industry had been ignoring were seen as viable clients.

As for the payday loan industry, they are going to find themselves in trouble. FinTech startups are launching competitors that are easy to use and won’t destroy the lives and financial futures of people who have to take out loans.

One of these startups is Magical Credit. Founded in 2014, the company wants to give people a more cost-efficient way to borrow money. With interest rates as low as 46% APR (compared to payday loans, which have an average APR of 400%), these loans are a life saver for those members of society who don’t qualify for loans from the big banks.

Calling their loans ‘installment loans,’ Magical Credit offers people loans between $2000 and $10, 000, then sets up a repayment schedule on a one- or two-year schedule. People get the money they need when they need it, as the FinTech innovation running behind the company means the application is an easy online process and the money is transfered within a few business days.

Big banking does not have a good reputation and payday loans are seen as sharks of a different color. This becomes an issue for people who need money, and especially when their credit scores may not be gleaming. Isn’t it wonderful to know that FinTech is there to provide a solution, giving people the chance to live out their dreams without losing their shirts?