A few years back, I personally embarked on an entrepreneurial journey as a co-founder of a Canadian neobank. Our vision was bold: to create a new banking platform tailored for small businesses. This was an untapped market in Canada, distinct from the U.S. where solutions like Divvy and Brex catered to expense management and offering comprehensive banking services for small businesses.

Our early efforts focused on extensive market research and customer discussions. We quickly realized that small businesses in Canada weren’t receiving the same level of service as individual consumers. Unlike the variety of banking and finance options available to consumers, small businesses often struggle with inadequate services. They face unique challenges, such as limited credit history forcing owners to rely on personal finances, and a lack of sophisticated banking apps that cater to their specific needs. This oversight in the market, I believe, is due to the perceived higher risks and lower profits associated with small businesses. They don't fit into the conventional banking models designed for individuals or large corporations.

Starting a financial product is tough work. In the absence of a complete Banking as a Service provider in Canada, you have to pick the right partners – a bank, processor, compliance tools, network, and a card printer – while building both a customer app, Interac e-transfers, fraud controls and an operational console to effectively support clients. 

For us, it was a huge achievement to launch in just 10 months, something we're still proud of. But with the tough market conditions and all the unique challenges we faced, we had to shut the business down. It was a hard lesson for me and my team, but we learned a lot from it.

Drawing from my experiences, I wanted to assist other entrepreneurs in navigating these complex waters. Having met many who were in the process of launching, or had tried and struggled in Canada, I knew our challenges weren't unique.

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Joining Synctera and launching in Canada

With it clear that Canada needed innovative banking solutions that are specially designed for different types of customers and their unique needs, Synctera was a perfect landing spot for me.

In the first month, we created a clear execution plan and alignment between Synctera and our partner bank. We have finalized the product roadmap for launching in the Canadian market and we made platform adjustments to support Canadian currency, addresses, etc. 

Within 3 weeks, our small yet passionate development team built out our electronic funds transfer (EFT) services and within 3.5 months we launched a card product - a process that would typically take much much longer. 

Our remarkable progress, a sampling of which you’ll see below, was due to a combination of our team's expertise a strong partnership with the bank:

• Cards - BIN implementation, collaborating across 5 companies - processor, the network (Mastercard), the bank, card printer and Synctera
• Offline PIN support - tricky to understand and different from US market
• EFT - writing a parser for EFT, implementing flows that included rejections, fraud checks
• Setting up operations processes and account structures for efficient reconciliation
• BIN sponsorship programs, with comparable ones usually taking over a year
• Expanded our compliance technology stack to support Canadian programs

We all shared a mindset of 'must-do' and 'cannot fail,' which drove us forward. The bank team's relationships and commitment were invaluable in helping us navigate complex aspects of the project. The team’s quick and effective response to any issues that came up demonstrated the power of experience and dedication.

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What’s Next

Today, our progress is tangible and exhilarating. Not only has our team and bank employees been using the cards in Canada, but we're also poised to launch our first customer. This milestone is more than just a launch; it's a testament to our dedication and innovative spirit. A week ago, when I showed our test card to a friend in card issuance, her astonishment was palpable. It wasn't just about the card itself, but what it represented - a new era of financial solutions, rapidly and responsibly brought to the Canadian market.

As I reflect on this journey, I’m very excited about the future. What we've achieved at Synctera isn't just a success for our team; it's a beacon of possibility for the entire Canadian landscape. By enabling companies to integrate financial products swiftly and in compliance with regulations, we're not just offering a service -  we are catalyzing significant change in the financial industry.

In the coming years, I foresee a vibrant transformation in Canada's financial sector. Our work paves the way for more competition, which is incredibly beneficial for consumers and businesses alike. As competition increases, it naturally leads to reduced costs and more creatively tailored services. These innovative solutions are not just about satisfying existing needs; they're about anticipating and creating new opportunities, custom-made for the diverse requirements of Canadian businesses and consumers.

As we move forward, the possibilities are limitless. 

Stay tuned for more updates.

Learn more and reach out if you’re ready to build.