Envestnet | Yodlee, Quovo, and Morningstar Unite On Secure Open Data Access Framework

For those who believe the benefits of GDPR and open banking-like policies can be achieved in the U.S. without the intervention of government regulation, the announcement that Envestnet | Yodlee, Quovo, and Morningstar have formed a joint initiative to support secure, open data access for consumers is welcome news, indeed.

“Through our involvement in existing industry groups focused on data access standards, we have noticed that consumers are not always as top-of-mind as they should be,” said Anil Arora, CEO of Envestnet | Yodlee. “The principles released today reiterate our belief that it is the consumer’s right to both access their data and permit it to be references through trusted third-party tools and applications, and that this consumer-permissioned access should not be limited or restricted.”

The Secure Open Data Access (SODA) framework is designed to promote transparency and accountability within the financial services ecosystem, and features four primary tenets:

  • Consumers must be able to access their financial account data for the purposes of using any legitimate application
  • Consumers must provide affirmative consent on the basis of clear and conspicuous disclosure regarding the use of their data
  • All entities who handle consumer account information must adhere to best practices for security standards and implement traceability and transparency
  • The entity responsible for a consumer’s financial loss must make the consumer whole. All stakeholders in the ecosystem have shared responsibility – this will start with traceability in the United States and move towards shared responsibility just like Europe.

Calling data sharing “a critical drive of innovation within financial services,” Quovo CEO Lowell Putnam added, “as custodians of financial data, we all have a duty to ensure that consumers are empowered to access their data safely, securely, and with full transparency into how it is being used. Our joint framework provides direction for the industry on how to fulfill this responsibility.”

The initiative’s full statement of joint principles for consumers, financial institutions, aggregators, and policymakers was published at the Envestnet | Yodlee blog.

A leading provider of intelligent systems for wealth management and financial wellness, Envestnet acquired Best of Show-winning financial data aggregation and analytics platform Yodlee in 2015 for $660 million. Together, Envestnet | Yodlee unveiled a single API solution to support PSD2 and open banking compliance earlier this year and forged partnerships with open banking innovators like fellow Finovate alum Token. Envestnet |Yodlee demonstrated its Financial Health Check solution at FinovateFall 2017, winning Best of Show honors.

Quovo participated in our developers conference, FinDEVr New York 2017, in partnership with SoFi. The data platform presented “How Quovo and SoFi Perfected Bank Authentication” at the event, explaining how its Authentication API for SoFi provided secure authentication of financial accounts while removing friction from the customer journey. Founded in 2010, Quovo is headquartered in New York City.

Finovate Alumni News

On Finovate.com

  • Envestnet | Yodlee, Quovo, and Morningstar Unite on Secure Open Data Access Framework.

Around the web

  • nCino extends its Bank Operating System with its new Retail Sales and Service Solution.
  • Fenergo to bring client lifestyle management services to business and technology consultancy, Delta Capita.
  • ProfitStars division of Jack Henry & Associates goes live with its ImageCenter Express image capture solution.
  • Flywire adds international invoicing to its global payment and receivables platform.
  • Infosys Finacle partners with seven major Indian banks to form blockchain-based trade network, India Trade Connect.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Revolut Introduces New Payment Sharing Feature, Near Me

Broke: Sending money to friends and family.

Woke: Sending money to nearby strangers.

Thanks to Revolut’s latest solution, Near Me, Revolut users will be able to send and request money from more than just the people they know well. The company’s latest feature leverages geolocation technology to enable users to split bills and send money to any other active Revolut user in the area.

“Until now, you would need to have the person you want to split the bill with added as a contact in your phone,” Revolut’s Chief Blogging Officer Rob Braileanu explained in a blog post today. “And while this is great for your close friends and family, what if you don’t know the person that well?”

To use the new feature, users with the latest version of the Revolut app select the People Near Me option from the Payments tab. Enable Near Me and choose your location sharing preferences. When the list of Revolut users appears, make your selection, choose “send” or “receive” and confirm the amount. Note that the person or persons on the other end of the transfer will need to have their Near Me screen open and select their location sharing preferences, as well.

Supporting 25 currencies and three cryptocurrencies, Near Me is the latest solution from a company that has been prominent in the fintech headlines of late. Last month, the company introduced a new savings solution, Vaults, that enables users to turn their spare change into savings in cash or crypto. In March, Revolut launched disposable virtual cards for online payments and, in January, the company added travel insurance to its offerings, leveraging geolocation to automatically turn coverage on and off when users leave and return to their home countries.

But the big splash for Revolut was the $250 million in funding the company picked up less than a month ago. The DST Global-led round sent Revolut’s valuation soaring to $1.7 billion, making the firm the first digital bank in the U.K. to earn unicorn status (valuation above $1 billion).

Founded in 2015 and headquartered in London, U.K., Revolut demonstrated its Personal Money Cloud at FinovateEurope 2015. Nikolay Stronosky is CEO.


Finovate Alumni News

On Finovate.com

  • JPMorgan Chase Signs Deal with Cardlytics.
  • Revolut Introduces New Payment Sharing Feature, Near Me.

Around the web

  • FinTech Breakthrough names Cloud Lending Solutions Best Business Lending Platform.
  • Payoneer announces new investment and support for cross-border U.S. SMEs.
  • eToro to launch cryptocurrency offering in the U.S., initially enabling investors to buy and sell 10 cryptocurrencies.
  • Uniken earns Cool Vendor in Identity and Access Management recognition from Gartner.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Coinbase Unveils Institutional Grade Solutions for Cryptocurrency Trading

In crypto, when the going gets good, the good go institutional.

Digital asset platform Coinbase has launched a set of new tools and resources designed to help institutional investors take advantage of the boom in cryptocurrencies. The solutions, as Coinbase General Manager Adam White described them in a blog post earlier today, represent the sort of “institutional grade products and services” that will enable FIs to participate in the cryptocurrency markets.

First up is Coinbase Custody. Designed in partnership with an SEC-regulated broker-dealer, Coinbase Custody provides secure crypto storage and third-party auditing and financial reporting validation. We first reported on Coinbase Custody last fall when the company announced that access to an early version of the technology would be available in 2018.

Second, Coinbase announced further development of its electronic marketplace, Coinbase Markets, with the launch of a new engineering office in Chicago. The company plans to leverage the area’s “large talent pool of engineers with deep exchange infrastructure experience” to add new features to Coinbase Markets, such as low latency performance, on-premise data center colocation services, institutional connectivity and access, and settlement and clearing services. The goal, White wrote, was “tighter markets, deeper liquidity, and increased certainty of execution.”

Third, Coinbase Prime will give institutional investors the specialized resources they need in order to effectively trade cryptocurrencies. This includes lending and margin financing for qualified customers, high touch and low touch execution services, as well as new market data and research products. Coinbase Prime will also feature multi-user permissions and whitelisted withdrawal addresses.

Last in the company’s suite of solutions launched today was the Coinbase Institutional Coverage Group. These sales, research, operations, and client services support professionals work exclusively with institutional clients and bring years of experience from companies like the New York Stock Exchange and Morgan Stanley, and agencies like the SEC and CFTC.

“The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space,” White wrote. He noted that 100 hedge funds have been created to speculate and invest in cryptocurrencies in recent months and that “some of the world’s largest financial institutions” have gone on record with plans to develop crypto trading desks.

Founded in 2012 and based in San Francisco, California, Coinbase demonstrated its Instant Exchange platform at FinovateSpring 2014. The company added its first Chief Technology Officer last month, appointing Balaji Srinivasan to the post as part of the its acquisition of digital currency startup, Earn.com. Also in April, Coinbase launched a new fund, Coinbase Ventures, to support early-stage crypto startups. With a valuation of $1.6 billion, Coinbase is one of fintech’s more recent unicorns (startups with more than $1 billion valuation) and the first bitcoin company to achieve unicorn status.

CardFlight Teams Up with Paya to Bring EMV-Ready mPOS Solutions to Merchants

Mobile POS and SaaS payment solutions provider CardFlight announced a new partnership with payment technology company Paya today. The agreement will enable Paya to offer CardFlight’s SwipeSimple payment acceptance solutions to its merchants.

Paya President Greg Cohen called SwipeSimple a “perfect fit” for its own payment services. “This collaboration allows us to offer our customers an advanced, secure mobile payment solution that helps answer many of their everyday business needs,” Cohen said. Paya has more than 100,000 clients who rely on the Reston, Virginia-based company’s adaptive solutions and two decades of experience in payments technology.

“Paya is one of the leading merchant service providers in the United States because of their commitment to arming their merchants with quality solutions and service,” CardFlight CEO Derek Webster added. “As the leader in EMV enabled card readers and payment acceptance solutions, CardFlight is happy to collaborate with Paya and provide SwipeSimple to their merchants.”

SwipeSimple enables merchant service providers, FIs, and independent sales organizations to offer their business customers a turnkey, EMV-ready mPOS solution. With CardFlight’s platform, Paya’s small business customers will get access to Bluetooth Low Energy or audio jack EMV Quick Chip, NFC contactless-enabled card readers; mobile and web apps to accept payments in-store or remotely; a back office merchant portal for business management and reporting; and a virtual terminal to enable merchants to accept CNP transactions using any device.

Founded in 2013 and headquartered in New York City, CardFlight demonstrated its mobile payment acceptance technology at FinovateSpring 2013. With 15 of the top 50 merchant acquirers in the U.S. among its partners, CardFlight has more than 40,000 small business end user customers, including merchants in all 50 states. This spring, the company introduced countertop payment terminals for small businesses, and announced that more than 80% of its SwipeSimple merchants had been upgraded to EMV quick chip payment acceptance.

CardFlight has raised $6.6 million in funding and includes MATH Venture Partners and ff Venture Capital among its investors.

Figo Joins Partnership to Build Fintech Acceleration Platform

Deutsche Börse and its post-trade services provider Clearstream will partner with Germany’s figo and Luxembourg-based regtech start-up Finologee to create a fintech acceleration platform, reports Antony Peyton of Fintech Futures, Finovate’s sister publication.

The new platform will enable established players and new digital firms to distribute and use each other’s services to ideally make more money.

It will allow access to Deutsche Börse’s market and reference data as well as functional services via APIs.

Marc Robert-Nicoud, CEO of Clearstream, said it brings together the “know-how and innovation capacity of an established market infrastructure with the innovative models and flexibility of strong fintech start-ups” and “can contribute immensely to developing new interaction, collaboration and monetization models”.

The first services offered by third parties will be an access to account gateway for banks for the second Payment Services Directive (PSD2).

Deutsche Börse has been cooperating with banking services provider figo since 2016.

The new partnership with Finologee is targeted to serve particularly the Luxembourg market with the “first end-to-end PSD2-compliant payment solution”. In addition, Finologee will contribute to the architecture and development of the platform software layers as well as further partnerships.

Clearstream contributes its IT infrastructure design and regulatory compliant operations, as well as several software components to run the API marketplace for Deutsche Börse.

First deployments on the platform are currently being evaluated. Among them are a number of offerings, including Budget Insight, IDnow, AriadNEXT, Governance.com, Jemmic, and KYCTech.

The platform is in the pilot phase and will be first offered as a development environment to allow testing and coding.

Further applications at this piloting stage will be Finologee’s identification and consent automation product.

Figo expands the portfolio with its PSD2-related RegShield for non-banks and PSD2 enabler for banks as well as several Clearstream and Deutsche Börse services.

The launch is targeted for the fourth quarter of 2018, subject to regulatory approval.

Founded in 2012 and headquartered in Munich, Germany, figo demonstrated its banking and payments API at FinovateEurope 2013. figo has raised more than $11 million (€10.1 million) in funding. Andre Bajorat is co-founder and CEO.

Finovate Alumni News

On Finovate.com

  • Optimove Acquires PowerInbox’s DynamicMail Business.
  • CardFlight Teams Up with Paya to Bring EMV-Ready Payment Solutions to Merchants.
  • Coinbase Unveils Institutional Grade Solutions for Cryptocurrency Trading.

Around the web

  • Currencycloud and Cashplus partner to help SMEs save on international payments.
  • New risk screening feature from Thomson Reuters filters unstructured data to help FIs fight financial crime.
  • IdentityMind Global to help decentralized private social media platform, ONe Network, meet KYC and AML compliance requirements.
  • Honor Credit Union ($850 million in assets) to launch member-owned, digital insurance agency courtesy of new partnership with Insuritas.
  • Consumers Credit Union ($968 million in assets) credits boost in deposit account openings to December deployment of digital sales platform from Gro Solutions.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.


New Initiative from Ripple to Support Startups Using XRP, XRP Ledger

Ripple has a spring in its step with the launch of Xpring (pronounced “spring”) to invest in, incubate, acquire and provide grants to companies and projects, reports Antony Peyton of Fintech Futures, Finovate’s sister publication.

Self-promotion is naturally part of its logic, as “every entrepreneur” will use Ripple’s digital asset XRP and the XRP Ledger, the open-source, decentralized technology behind XRP, to solve their customers’ problems.

Ripple said it wants to act as a “proverbial spring” to let people “grow their businesses and prosper”.

Ethan Beard will be SVP and lead Xpring and Ripple’s developer programme. Before moving into an advisor role at several technology companies, Beard served as director of the Facebook Developer Network from 2009-2012.

“Blockchain and digital assets have the ability to solve important problems and XRP – with its speed, scalability and demonstrated real-world use case – is a great tool for start-ups and entrepreneurs to build businesses around,” Beard said.

According to Ripple, Xpring has already offered support. People and firms include:

  • Stefan Thomas, inventor of the Interledger Protocol (ILP), creator of BitcoinJS, co-founder of TxtBear, who just launched a new venture Coil to use XRP and ILP for various micropayments applications;
  • Bart and Brad Stephens, co-founders of Blockchain Capital, who have the first fund to accept capital calls in digital assets.

In a separate development, Mitsubishi Corporation, MUFG Bank, Bank of Ayudhya (Krungsri), a Thailand-based subsidiary of MUFG, and Standard Chartered have started a pilot test for moving real funds over RippleNet, Ripple’s network.

Founded in 2012 and headquartered in San Francisco, Ripple made its Finovate debut (as OpenCoin) at FinovateSpring 2013. The company has raised more than $93 million in funding and includes SBI Investment, Santander InnoVentures, IDG Capital Partners, and Core Innovation Partners among its investors. Brad Garlinghouse is CEO.

Finovate Alumni News

On Finovate.com

Around the web

  • Business-only Australian bank Tyro forges partnerships to improve connectivity between POS, apps, and merchants.
  • Finastra appoints Elona Ruka-Wright as its new Chief Risk Officer.
  • Australian FinTech Study Loans partners with Cloud Lending Solutions to build new student loan offering.
  • LendingTree to acquire Ovation Credit Services for total consideration of $20.75 million.
  • Socure secures three new ISO certifications for privacy and security controls.
  • Spreedly to integrate Worldpay’s international payment processing API courtesy of new partnership.
  • Hypepotamous profiles South African authentication specialist Entersekt.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.