Canadian FinTech investment shrugs off market decline & Does insurance need to foster greater engagement with consumers?

Top Story of the Week

Does insurance need to foster greater engagement with consumers? -?Go to any FinTech event and it is instantly clear that customer engagement is a major priority for most companies. Given its significance, are insurance firms doing enough or should they be doing more?

Read the full story?here.

Research highlight

Canadian FinTech investment shrugged off broad market decline in Q2 to grow 2%

Key Canadian FinTech investment stats in Q2 2023:

• Canadian FinTech deal activity reached 77 transactions in the second quarter, a 2% increase from Q2 2022
• Canadian FinTech companies raised a combined investment of $63m in Q2 2023, a 82% drop YoY
• RegTech was the most active Canadian FinTech subsector in Q2 2023 with a 39% share of deals

Amidst a global downturn in FinTech deal activity, Canadian FinTechs defy the trend. In the second quarter of 2023, Canadian FinTech deal activity saw a 2% uptick from Q2 last year, with a total of 77 deals recorded. During Q2 2023, Canadian FinTech firms secured a combined $63m, reflecting a significant 82% YoY decrease.

OneVest, a Wealth-as-a-Service platform, had the largest Canadian FinTech deal in Q2 2023, raising $12.8m in their latest Series A, led by OMERS Ventures. The investment will be used to expand OneVest’s Toronto and Calgary teams, across sales, business ops, product and engineering, plus support OneVest’s expansion into the US. “We’ve built OneVest as a durable, highly scalable platform that can shape the future of wealth management,” said Amar Ahluwalia, OneVest’s CEO and co-founder. “Financial institutions need exceptional experiences to meet both customer and advisor expectations when it comes to technology. The ability to implement a modern service with all the required compliance requirements built in, is compelling.”

RegTech was the most active Canadian FinTech subsector in Q2 2023 with 30 deals, a 39% share of deals. Lending Technology was the second most active FinTech subsector with 11 deals, a 14.2% share of deals and WealthTech was third with nine deals.

As on June 2023, money services businesses (MSBs) in British Columbia will be required to register according to British Columbia Bill 19: Money Services Businesses Act (MSBA). Governed by the MSBA, MSBs encompass non-bank entities offering transfer and exchange services, including fund transmission, money order issuance, and fund redemption. The federal level already regulates MSBs through the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Individuals engaged in or aspiring to run MSBs in British Columbia will soon need to adhere to registration and reporting prerequisites. Non-compliance with MSBA provisions and forthcoming regulations might lead to administrative penalties.

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Weekly FinTech deal roundup

Another quiet week in FinTech with 12 deals recorded

This week saw another quiet week in the FinTech sector, with only 12 funding rounds recorded by FinTech Global and a total funding amount of $107m.

Read the full story?here.

RegTech news

• Vesttoo fraud scandal: The story so far –?Vesttoo ended 2022 by obtaining the highly-coveted unicorn status, however, 2023 has been anything but a fairytale, as the Israeli FinTech has found itself mired in the midst of a public fraud scandal. Read the full story?here.
• How incoming regulations could affect the UK open banking market - With a burgeoning open banking sector, the UK could be on the precipice of a monumental surge ahead of other international markets in the space, according to notable industry experts. But how will incoming regulatory changes affect the country’s ability to smash through the glass ceiling? Read the full story?here.
• Regulatory penalties for global financial institutions see sharp decline in H1 2023 - Regulatory fines slapped on global financial institutions saw a staggering 88% dip in H1 2023 compared to the same period last year. This significant decline was unveiled in a report from Fenergo, the top-tier provider of digital solutions in client lifecycle management (CLM). Read the full story?here.

Don't Miss Out - Global RegTech Summit USA will be hosted on 28th September 2023!

Don’t miss the largest RegTech event where compliance leaders converge. Secure your place for our second edition in New York and shape the future of RegTech. Find out more?here .

InsurTech news

• Unlocking profitability: The journey of loss control maturity and its pivotal stages -?The Loss Control Maturity Model has transformed the way companies think about their processes, particularly with the introduction of FinTech solutions. Read the full story?here.
• Essential features to consider when choosing a document scanner app -?In today’s digital age, document scanning has become a critical tool for both individuals and businesses. But not every scanning solution is created equal. Scanbot SDK has outlined what you need to know when integrating scanning software into your mobile or web application. Read the full story?here.
• The Tipping Point: How Digital Capacity Impacts Insurance Loyalty -?In today’s insurance landscape, customers eagerly anticipate all services to be available digitally without delay. Gone are the days when tedious paper-based protocols were tolerable. Such approaches, besides being costly and inefficient, play a significant role in shaping customer satisfaction and loyalty. Read the full story?here.

Don't Miss Out - Global InsurTech Summit USA will be hosted on 26th September 2023!

After five years of continued success and unprecedented demand from US insurers and InsurTech founders, we are bringing our flagship event to New York! Find out more?here .

WealthTech news

• How can AI transform financial simulations within wealth management? - Financial simulations are a core part of wealth management, but how can AI transform them to become an even more powerful tool for investors? Read the full story?here.
• FinTech Global launches Wealth Market Map as vital guide to the sector -?FinTech Global, a specialist research firm, has released its WealthTech Market Map, which will serve as an informative guide for financial institutions, wealth and asset management and private banks looking to navigate the burgeoning sector. Read the full story?here.
• Fee transparency revolution: WealthArc and GreenLock’s game-changing partnership - In the world of finance, many establishments have taken advantage of non-transparent fee systems, resulting in overlapping charges. Such intricate fee regimes often deter Family Offices from meticulously tracking their investment strategy execution fees. In this landscape, custodian banks, with no particular stake in the game, offer minimal assistance in fee monitoring. Read the full story?here.

CyberTech news

• Threat intelligence giant Recorded Future backs Hunt.io with strategic funding - Recorded Future, described as the “largest threat intelligence company”, has today unveiled a strategic investment into Hunt.io , an advanced adversary hunting firm. Read the full story?here.
• UK cyber authorities raise alarm over AI chatbots in business operations -?The UK’s National Cyber Security Centre (NCSC) has issued a warning about the security implications of using AI-driven chatbots in business settings. Read the full story?here.
• X Corp’s new biometric policy draws scrutiny amid privacy concerns -?X Corp, the tech giant formerly known as Twitter, recently announced an update to its privacy policy, stating that the company will begin collecting biometric data from users for “safety, security and identification purposes”. Read the full story?here.

ESG FinTech news

• Tokyo-based Mizuho commits to low carbon transition with €750m green bond? -?Tokyo’s renowned banking and financial services institution, Mizuho, has recently publicised its release of a €750m ($820m) green bond. Read the full story?here.
• AirTrunk secures $4.6bn sustainability linked loan - AirTrunk has revealed that it has managed to increase its corporate sustainability linked loan (SLL) to $4.6bn. Read the full story?here.
• Position Green launches Sustainable Edge podcast: A dialogue with clean tech leaders -?Position Green, hailing as the Nordic region’s paramount independent pure play sustainability enterprise, has unveiled its brand-new podcast series titled “Sustainable Edge” to complement its annual ESG100 report. Read the full story?here.

Other FinTech news

• Is the overtake of KYC by pKYC inevitable? - KYC practices have been long used in the financial sector. However, with fraud and financial crime more prevalent than ever, is perpetual KYC the evident next step? Read the full story?here.
• JPMorgan boosts its stake in Brazilian FinTech C6 Bank to 46% - JPMorgan Chase & Co, the renowned financial behemoth, has raised its ownership in C6, a prominent Brazilian digital bank, from an initial 40% to a significant 46%. Read the full story?here.
• Paycor launch Empowerment Programme to enhance diversity -?Paycor has launched its Empowerment Programme designed to support minority-owned businesses, and offer equal opportunities for all. Read the full story?here.

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