President’s Blog

The Future of Automotive Lending

How can our automotive industry mobilize around the goal of 100% zero-emission vehicle sales by 2035? Adoption, lack of incentive and lack of raw materials make this an a challenging target. The Canadian Lenders Association automotive leadership round table is tasked with discussing strategies to service Canadians as we change the way cars are purchased […]

6 vs. 294 year-old

Six-year-old Revolut is now worth more than 294-year-old NatWest Bank, which has a market cap of $28bn USD. Revolut is a FinTech darling even with losses that doubled last year to $290m. Revolut’s 15 million customers and 35 country expansion helps sweeten the pill. Thursday the company raised $800m from Tiger Global Management and SoftBank. It’s rally cry is […]

How best to Discover Sezzle (BNPL)

BNPL continues to make news. Lots of corporate jostling and partnerships. Banks and rails are positioning themselves for the gold rush. Discover is in the game buying $30 million shares of Sezzle .There is a quid pro quo: Sezzle will be riding the Discover rails providing Buy Now Pay Later services to card holders and […]

FinTech = $1 of every $5

One in every five dollars invested by venture capital this year has gone into FinTech. According to The Economist, FinTech funding has surged to $34b last quarter and over 60 of these companies are headed to the public markets.

Apple Pay Later x 4

With Buy Now Pay Later (BNPL) taking the fintech lending marketplace by storm, Apple has thrown its hat into the ring. No surprise. How it works: Users have the option to pay for: Four fortnightly INTEREST-FREE payments or INTEREST-BEARING installment loan over several months. Code named “Apple Pay in 4” and “Apple Pay Monthly Installments.” […]

The Crypto Rails War

Visa says crypto-linked card usage tops $1 billion in first half of 2021 used by consumers globally on non-crypto goods and services. That is up from a humble start compared to the same period last year. Visa said digital payments such as cryptocurrency have the potential to disrupt $18 trillion of annual consumer spending with cash […]

Forbes Fintech 50 2021

Note: Fintech 50 startups must have either headquarters or substantial operations in the U.S. and be private. Also some nice growth from last year: Stripe is worth $95 billion, up from $35 billion Many are likely to go public soon, either through IPOs or SPAC deals. Marqeta etc. Name Categories Funding Location Addepar Wall Street […]

Fintech Rocket

In The Business Research Company’s Report on Fintech the company assessed the global fintech market value at $127.66 billion in 2018, and indicated growth an annual growth rate of 24.8% through 2022. The FinTech (Financial Technologies) market consists of sales of technology and platform based financial services and related goods. FinTech is the use of […]

FinTech in a Box

Picks and shovels vendors in a gold rush usually do well. A new breed of startups are white labeling full-stack platforms that FIs can use to launch their fintech startups and products. FinTech in a box: the goal is to enable the emerging sector to focus on growth and not on servicing technical debt. The […]

Fintech Lending is on the Rebound

A recent report by S&P Global Market Intelligence paints an optimistic picture for fintech lenders in a post-pandemic environment. Unsecured personal lenders are projected to rise in volume by 51%, to $47.9 billion in originations annually. Small-and medium-sized business lenders are expected to rise by 16.1% to $15.8 billion. Student lenders are forecast to rise 152% to […]

Pride in Banking

The CGLCC estimates that Canada’s 1m person LGBT+ population has an annual spending power of $90 billion. To better serve the needs of this community, fintechs are personalizing the consumer banking experience: BMO, Citi, and Republic Bank now offer Mastercards with a client’s “true name”. US digital bank startup Daylight, advises clients how to set savings goals toward transition-related medical […]

Straight A’s For Student Lenders

54% of undergrads have student debt at graduation, owing an average amount of $28,000. In the U.S. this number has reached over $1.7 trillion. Startups in this space are developing technology to target both private and federal loan debt in areas, such as responsible lending, loan management and refinancing, as well as make it easier […]

A “teeny-weeny little bit” is now an official measurement

JPMorgan Chase CEO Jamie Dimon, said the bank has seen “a teeny-weeny little bit” of life in its loan book, highlighting Chase’s consumer products as a source of growth. This jives with the latest from the Federal Reserve highlighting consumer loans as the only major category to post month-over-month growth in May, up 1.3% from […]

The APR Red Herring

The Annual Percentage Rate is a way of standardizing the cost of credit. It is simply the interest rate plus any additional cost associated with borrowing money and it serves as an important metric to compare different credit options. However, the media, regulators and government often fixate on this number and miss the underlying borrower […]

Future of Upsell | Downsell

What is the future of the upsell-downsell relationship between fintech lenders and banks? The wall between incumbent and fintech-forward credit is crumbling and 2021 maybe an opportune time to advance contiguous lending. I have always said that technology makes for strange bedfellows. Can banks partner with fintechs (with their iron-gut risk modelling) to service borrowers […]

Bank’s FinTech Sandbox

Once upon a time, I was in telecom running Impact Mobile. The refrain in the 2010s was that over-the-top (OTT) services would commoditize the carriers making them proverbial dumb pipes. Smartphone, App Store … Yup, it happened. Granted, a big and profitable dumb pipe, but many of the value-added services evaporated for the telecommunication leviathans. […]

Explaining FinTech to a 7-Year-Old

How do you explain #FinTech to a 7-year-old? Well it all starts with a bucket of Mega Bloks: quite simple, no instructions needed. You begin with deposits and then snap on savings … at some point add insurance, mortgage and investment blocks. We call these laddered services and they’re quite addictive when you’re 5 years old. Then […]

Financial Data Squeeze

In a world where data is the ultimate currency, the corner bank is becoming less useful to the struggling SMB. Enter embedded financial ecosystems. We know that commerce leviathans (Shopify, eBay, Amazon) have begun servicing mom-and-pop main-street with more than a storefront in the cloud. And we know that lending products are the gateway drug … […]

Revolut Losses and Gains

In the face of COVID, challenger-bank Revolut‘s adjusted operating losses rose to $210M Cdn. (A little down for its 3-fold sales growth in 2019.) Revolut’s main revenue comes from interchange fees and fluctuates based on consumer card usage – COVID led to a sharp decline in payment volume. However … the Crypto white knight came to […]

Open Banking Boon

In the four years since Britain introduced #openbanking, the island nation has been the beneficiary of near half of all global FinTech investment. “It wasn’t because there was political stability or a low-cost taxes, it was because there was certainty around the regulatory regime,” says my colleague Steven Boms, head of FDATA North America Yes, certain data can […]