In this issue

Exciting things are happening in fintech. From the most recent updates on open banking in North America to the growing use of fintech software and innovative AI solutions for combating fraud, there’s a lot happening in the industry.

Alternative credit scoring

Traditional credit scoring models are being supplemented with alternative data sources such as cash flow, utility bills, and pay stubs. This approach provides a more comprehensive picture of a borrower’s financial health, enabling better access to credit for those without a traditional credit history.

AI and Machine Learning to mitigate fraud

AI and machine learning are game-changers in fighting financial fraud. These technologies analyze data in real-time to detect and prevent fraudulent activities, making financial transactions more secure. They’re especially important for identity verification and monitoring transactions, helping to catch fraud before it happens.

Momentum in Open Banking

Exciting developments are in the pipeline for open banking in Canada. Although not officially implemented yet, recent updates look promising. In the latest Canadian government budget, there are plans to introduce legislation as early as this Spring, with follow-up actions next Fall to help roll out open banking. This news has sparked significant discussions around the topic, and we’re thrilled to be part of this process.

Open banking is set to remodel how financial data is accessed and shared. This promotes greater innovation and competition in the financial services sector. As we wait to see more updates around this initiative, Inverite is preparing and positioning ourselves to fully capitalize on the opportunities.

Consumer-driven finance

The global momentum around consumer-driven finance across the continent. Consumers today are demanding more control over their financial data, and open banking is key to empowering consumers to manage their finances better.

Open banking allows consumers securely share their financial info with trusted third-party platforms, making their financial experience more personalized and efficient. This means users can easily access a variety of tailored financial services.

How these changes could impact the industry

Open banking is set to shake things up by sparking innovation and creating new financial products and services, leading to more competition in the market. It empowers consumers by giving them greater control over their financial data, resulting in more personalized and efficient services. Plus, open banking standards will significantly boost data security, cutting down the risks tied to methods like screen scraping.

Event Highlight: Open Banking Expo

We are excited to share that we attended the Open Banking Expo this month, where key industry leaders gathered to discuss the future of open finance. A major highlight was the announcement of a new BIS Innovation Hub in Toronto, which will focus on advancing open finance. This hub aims to foster innovation, enhance financial inclusion, and drive forward the next generation of financial market infrastructures.

Product spotlight

Instant Bank Verification works to streamline business underwriting processes while increasing security. The solution allows businesses to instantly verify bank account details, reducing the time and risk associated with traditional verification methods. This tool is particularly beneficial for lenders, financial institutions, and online merchants, ensuring real-time access to accurate financial data.

Paired with Risk Score, which uses banking data, customer profiles, and repayment history, it helps make more informed decisions, speeds up application processes, and significantly reduces fraud.

Stay informed

Join us in our next edition as we further explore the impact of these changes and the ongoing efforts to democratize access to financial services. Further reading on understanding the impact of open banking in Canada.