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Category Archives: FinTech

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Canadian Competition Bureau Releases Fintech Report for Consultation

Posted in Big Data, FinTech, Open Banking

On November 6, 2017, the Competition Bureau (Bureau) released a draft report on its market study into technology-led innovation in the Canadian financial services (Fintech) sector.[1] The Bureau has invited feedback from interested parties only until November 20, 2017, an uncharacteristically short comment period. Financial services are an area of interest for the Bureau due… → Read More

U.S. Consumer Financial Protection Bureau Sets Out Principles for Consumer-Authorized Data Sharing and Aggregation

Posted in Big Data, FinTech, Open Banking

On October 18th, 2017 the U.S. Consumer Financial Protection Bureau (“CFPB”) outlined the principles to be followed (“Principles”) when consumers authorize third party companies to access their financial data to provide certain financial products and services. These principles will be of particular note to the Fintech sector, in which a significant number of companies incorporate… → Read More

Basel Committee on Banking Supervision Issues Consultative Document Highlighting Implications of Fintech on Banks

Posted in AI and Machine Learning, Big Data, Cybersecurity, FinTech, Payments, Privacy

On August 31, the Basel Committee on Banking Supervision (the “BCBS”) published a consultative document on the implications of Fintech for the financial sector. The consultative document was produced by BCBS’s task force mandated with identifying trends in Fintech developments and assessing the implication of those developments on the financial sector. Parts I and II… → Read More

Project Jasper Update: White Paper Release and Phase 3 Announcement

Posted in Authentication, Blockchain, Financial, FinTech, Identity, Payments, Privacy

Project Jasper is an experiment being done by the Bank of Canada, Payments Canada and R3 to test the viability and feasibility of using Distributed Ledger Technology (“DLT”) as the basis for wholesale interbank payment settlements. This project was launched in March 2016 and has completed two phases. Phase 1 of Project Jasper employed the… → Read More

Canadian Securities Administrators Weigh-in on the Applicability of Canadian Securities Laws to Cryptocurrencies, including Coins and Tokens

Posted in FinTech, Regulatory Compliance

On August 24, 2017, Staff of the Canadian Security Administrators (the “CSA”) released CSA Staff Notice 46-307 Cryptocurrency Offerings (the “CSA Notice”), published in all Canadian jurisdictions except Saskatchewan.[1] The CSA Notice addresses a number of considerations of relevance to Fintechs, investors and their advisors, including the potential applicability of Canadian securities laws to initial… → Read More

Paving the Way for RegTech: Australian and Canadian Developments

Posted in FinTech

Recently, the Australian Securities and Investments Commission (ASIC), which regulates financial services and markets in Australia, provided recommendations and engaged in consultation on establishing best practices and guiding principles for the regulatory technology (RegTech) eco-system in Australia. As discussed in our previous post in respect of UK developments in the area, “RegTech” can be understood… → Read More

Department of Finance Releases Consultation Paper on New Retail Payments Oversight Framework Providing for Functional Regulation of Payment Service Providers

Posted in FinTech, Payments, Privacy

On July 7, 2017, the Department of Finance issued the consultation paper “A New Retail Payments Oversight Framework” (the “Consultation Paper”) proposing a federal oversight framework for retail payments. Comments on the Consultation Paper are due October 6, 2017. Summary of Proposed Oversight Framework The Consultation Paper is discussed in more detail below, but the… → Read More

Update from the Canadian Securities Administrators on its Regulatory Sandbox for Fintechs

Posted in Financial, FinTech

Last week, the Canadian Securities Administrators (CSA) published some additional information on its CSA Regulatory Sandbox. The CSA Regulatory Sandbox, which was first launched on February 23, 2017, is an initiative of the CSA, designed to support Fintech businesses seeking to offer innovative products, services and applications in Canada. Generally speaking, businesses must register under… → Read More

European Banking Authority Responds to European Commission Public Consultation on Fintech: Potential Takeaways for Canada

Posted in AI and Machine Learning, Big Data, Cybersecurity, Financial, FinTech

In March 2017, the European Commission issued a public consultation document on Fintech.  The goal of the European Commission (EC) document is to further the objective of a digital single market within Europe.  This will be done by supporting the development of digital infrastructure,  improving access to goods and services, and ensuring rules foster technological… → Read More

“Not There Yet”: Bank of Canada Experiments with Blockchain Wholesale Payment System

Posted in FinTech

The Bank of Canada has issued a report on Project Jasper, its recently completed experiment testing the viability of distributed ledger technology (DLT) as the basis for a wholesale payment system. The experiment was a combined effort by the Bank of Canada and Payments Canada, along with Bank of Montreal, Canadian Imperial Bank of Commerce,… → Read More

U.S. Consumer Protection Regulator Consults on Use of Alternative Credit Data

Posted in Big Data, Financial, FinTech

On February 16, 2017, the U.S. Consumer Financial Protection Bureau (the “CFPB”) issued a Request for Information (“RFI”) seeking feedback from the public on the use or potential use of alternative data and methodologies to assess consumer credit risk, thereby expanding access to credit for credit invisible segments of the population. Presently, most lenders make… → Read More

U.S. Federal Insurance Office Issues Report Addressing InsurTech and Traditional Insurance

Posted in Big Data, Cybersecurity, Discrimination, FinTech

The Federal Insurance Office, U.S. Department of the Treasury (“FIO”) released its first annual Report on Protection of Consumers and Access to Insurance (the “Report”). The Report reviews developments and concerns relating to five insurance issues: technology; environmental hazards; fairness in insurance practices; fairness in state insurance standards; and retirement and related issues. The Report… → Read More

Fintech Regulatory Developments: 2016 Year in Review

Posted in FinTech

This year was a tremendously active year for Fintech in Canada and internationally, and 2017 promises to be even more so.  In the Fall of 2016, we co-authored a comprehensive report together with the Digital Finance Institute, “FinTech in Canada: British Columbia Edition” on the state of the Canadian Fintech ecosystem, highlighting a number of… → Read More

Blockchain And Privacy: Transparency And Innovation Pose Challenges for Data Protection

Posted in FinTech, Privacy

A blockchain is a peer network of nodes that use a distributed ledger that can be used to track transactions involving value including money, votes, property, etc. The most well-known application of blockchain technology is bitcoin. Transactions on a blockchain are not regulated by any central counterparty: the individuals involved in a given transaction provide… → Read More

Chatbots, Open Data and Sandboxes: Trending Topics from the 2016 Money20/20 Conference

Posted in AI and Machine Learning, Financial, FinTech, Mobile Payments, Privacy

With 10,000+ attendees, including more than three thousand companies from seventy-five countries, Money20/20 is the largest annual global event focusing on payments and financial services innovation. The 2016 conference in Las Vegas this October featured a packed agenda of talks by industry and thought leaders on a broad range of current and emerging Fintech issues,… → Read More

What If You “Lost” Your Fingerprint?

Posted in Authentication, Cybersecurity, FinTech

Biometric authentication is becoming increasingly common. Smart phones and computers use it, banks have started to use it (in India, Yes bank unveiled its iris scan-enabled point of sale solution; in the US, Bank of America allows fingerprint authentication to log onto its mobile banking app; in Canada, TD Bank uses voice recognition to identify… → Read More

FDIC Issues Proposed Guidance on Best Practices for Third-Party Lending: Implications for Canadian Banks and Lenders

Posted in Financial, FinTech, Payments

Background The FDIC recently released for comments a proposed guidance with respect to third-party lending (the “Proposed Guidance”). While subject to potential revisions following the FDIC’s review of comments, the Proposed Guidance provides valuable insight into current regulatory trends relating to marketplace lending. The Proposed Guidance defines “Third-Party Lending” as lending arrangements that rely on… → Read More

Canada’s Competition Commissioner Emphasizes Innovation, Highlights Fintech Market Study

Posted in Big Data, Financial, FinTech

Canada’s Commissioner of Competition, John Pecman, spoke on October 6th, 2016 to the Canadian Bar Association’s Competition Law Fall Conference, addressing the link between competition and innovation and providing updates on the Fintech market study launched by the Competition Bureau earlier this year. Competition Drives Innovation The Commissioner noted that new disruptive technologies challenge not… → Read More

NY State Introduces Cybersecurity Regulations for Financial Services: Implications for Canadian Business

Posted in Cybersecurity, Financial, FinTech, Legislation, Regulatory Compliance

The New York State Department of Financial Services announced its  first state-level regulation for cybersecurity. The proposed regulation would apply to regulated banks, insurance companies, and other financial services institutions and has implications for Canadian organizations doing business with these entities. On September 13, 2016, the New York State Department of Financial Services (“DFS“) announced a… → Read More

Canada’s First Regulatory Sandbox for Fintech? OSC Announces Plans for “OSC LaunchPad” Innovation Hub

Posted in Financial, FinTech, Regulatory Compliance

OSC chair Maureen Jensen has announced that the OSC plans to launch an innovation hub for fintech entities. “OSC Launchpad” will be the first fintech hub for a Canadian securities regulator. Securities regulation in Canada impacts a number of fintech business models (including companies offering online advising, peer-to-peer lending, crowdfunding platforms and angel investor organizations)…. → Read More

FinTech in Canada: A Report Studying The Canadian FinTech Ecosystem

Posted in Big Data, Financial, FinTech

“FinTech in Canada: British Columbia Edition” brings insight from more than a hundred stakeholders in the Canadian FinTech sector on challenges and opportunities, provides a comparative overview of the FinTech ecosystem in Canada and 16 other countries, including the U.K., U.S. and Australia and offers recommendations to advance FinTech in Canada. The Digital Finance Institute… → Read More

RegTech Stepping Forward: UK Financial Services Regulator Publishes Results on RegTech Consultation

Posted in Big Data, Financial, FinTech, Privacy, Regulatory Compliance

What is RegTech? The UK’s financial prudential regulator, the Financial Conduct Authority (the “FCA”), has recently published its Feedback Statement on Call for Input: Supporting the development and adopters of RegTech, where it outlined the result of its earlier Call for Input on how to support the development of “RegTech”. “RegTech” is defined by the… → Read More

BC Government Explores Smartphone App for ID Authentication

Posted in Authentication, FinTech

According to media reports, the B.C. government is developing a new smartphone app that will one day allow people access to secure government websites, services and databases simply by tapping their new Services Card to their smartphones in order to authenticate their identity. The new chip-enabled Services Cards recently rolled out by the B.C. government… → Read More

German Regulator Finds Banks’ Data Rules “impede non-bank competitors”

Posted in Big Data, European Union, Financial, FinTech

“Open Banking” is an emerging term in financial services / financial technology that refers, among other things, to the use of open application programming interfaces (“APIs“) enable third party developers to build applications and services around a financial institution. This requires a financial institution to throw open the doors to its customer data and allow… → Read More