Sberbank in Slovenia Partners with Open Banking Platform Provider Token

By partnering with Token.io, the open banking platform provider based in San Francisco, California, Sberbank in Slovenia is signaling more than just its compliance with PSD2. Instead Slovenia’s seventh largest bank seeks to move beyond PSD2 compliance and toward a full embrace of open banking.

“Our choice to work with Token reflects our commitment to shaping a new era of banking and payments,” Aleš Zajc, Deputy CEO in charge of retail banking for Sberbank in Slovenia, said. Zajc added that the technology would enable the bank to provide customers with a better, safer experience. “With Token’s frictionless authentication programmed into each transaction,” Zajc said, “we will be able to increase payment speed and convenience without ever compromising on security.”

Token enables banks to issue and redeem payment and account data authorizations as programmable smart tokens. Smart tokens are unique to the transactions they represent, and because account information is never transmitted beyond the bank, the technology helps minimize security risks. Not only does this make Token’s technology an ideal deployment for banks looking to meet PSD2 requirements, smart tokens can also serve as the basis for faster, more secure online transactions for customers.

“Token offers the industry’s simplest and most secure transaction-based open banking API, which will provide Sberbank Slovenia quicker data aggregation and direct payments driven by Smart Token technology,” Token CEO and founder Steve Kirsch explained. “Crucially, our cloud-based platform will give Sberbank both flexibility and scalability when creating and handling transactions.”

Token’s news comes one month after the company announced that it would facilitate direct payments for cross border payments platform and fellow Finovate alum, Caxton. Also last month, the company completed the first Payment Initiation Service Provider (PISP) to complete an end-to-end payment via a public bank API. In May, Token was granted FCA authorization for open banking payment and information services, and partnered with Paymentworld Europe to enable direct payments for the Malta-based electronic money institution.

Founded in 2015, Token demonstrated its technology at FinovateEurope 2017. With $18.5 million in funding, the company includes EQT Ventures, OP Financial Group, Octopus Ventures, and Plug and Play among its investors. Check out our conversation on open banking and PSD2 with Token’s VP of Marketing, Marten Nelson, from earlier this year.

Finovate Alumni News

On Finovate.com

  • Sberbank in Slovenia Partners with Open Banking Platform Provider Token.
  • Equifax Acquires DataX to Promote Financial Inclusion.

Around the web

  • Wirecard and Mastercard collaborate to make contactless payments using wearable technology more accessible.
  • Roostify expands leadership ranks with new Chief Customer Officer, new VP of Sales, and new General Counsel.
  • VyStar Credit Union ($7.6 billion in assets) to upgrade core banking solution with technology from FIS.
  • Hyperwallet to provide mass payment distribution for content processing platform, Wordapp.com.
  • Premier America Credit Union ($2.5 billion in assets) to deploy core processing technology from Jack Henry & Associates.
  • Santander integrates nCino’s Bank Operating System.
  • Carte Wealth Management to launch advisor engagement platform powered by DigitalReach from BlueRush.
  • TechCrunch reports: Coinbase Reportedly Gets Approval from US regulators to Start Listing Tokenized Securities.
  • Ephesoft releases new Swagger/OpenAPI-web services for Ephesoft Transact.

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.

Mastercard Teams Up with Worldpay to Launch ‘Pay by Bank’ in the U.K.

With Pay by Bank, Mastercard and Worldpay are making it easy for shoppers in the U.K. to pay directly from their bank account when purchasing goods and services online. The technology, originally developed by Zapp (which was a division of VocaLink, a company Mastercard acquired in 2016) is expected to be available to customers of HSBC in the second half of 2018. Additional customers will be added later in the year, with new merchants to be added starting early in 2019.

“This is the latest way we’re able to deliver on consumer’s expectations, whether they’re shopping online or paying for utilities,” Mark Barnett, president of Mastercard U.K., Ireland, Nordics, and Baltics. “(Pay by Bank) is set to play a big role in U.K. digital commerce as more banks and merchants offer this as a payment option to millions of their customers.”

The initiative and partnership is also likely to play a big role in Mastercard’s ability to participate in the U.K. debit market, where Visa is common. The agreement will also enable Mastercard to leverage Worldpay’s strong market share in the U.K.

“Through this partnership, Worldpay and Mastercard will help expand payment acceptance options for U.K. consumers and retailers by leveraging account-to-account payments technology with Mastercard’s Pay by Bank app,” Chief Strategy and Marketing Officer for Worldpay Kevin McCarten said. “This – combined with our joint efforts in making digital payments even more convenient and secure globally – creates a powerful partnership that benefits all payments stakeholders.”

Some of the technical features of the new solution include support for EMVCo’s Secure Remote Commerce (SRC), a framework that provides a consistent payment experience for consumers, as well as Mastercard’s Digital Enablement Service which uses a token for enhanced payment security as opposed to a card’s primary 16-digit account number. Worldpay will also take advantage of Mastercard’s MoneySend to enable merchants to get settlement payments to Mastercard debit cards faster.

Mastercard partnered with Vipera for a demonstration of SME Pay at FinovateEurope 2018. SME Pay is a mobile payment solution geared specifically toward small business owners. The technology gives business operators the ability to control how and when company payment cards are used, and includes capture features to make record-keeping and expense reporting easier.

The company made its most recent solo appearance at a Finovate conference the previous year at FinovateFall 2017, where it demonstrated its Cash Pick-Up solution. The technology enables a wide variety of disbursers – from P2P providers and corporate entities to NGOs and government agencies – to deliver cash to consumers through enabled ATMs without requiring a card. In addition to helping serve the underbanked, the solution can be used for emergency funds when cards are lost or stolen, P2P payments, or even for disaster relief. Trading on the New York Stock Exchange under the ticker “MA,” Mastercard has a market capitalization of $213 billion. The company was founded in 1966 and is headquartered in Purchase, New York.

Worldpay participated in our developers conference, FinDEVr Silicon Valley 2016. The company’s presentation, It’s Not Just About Getting Paid, It’s About the Payment Journey, discussed the importance of implementing a “consumer friendly buying journey” when it comes to growing sales. Worldpay provides technology-led payment products and services to more than 400,000 customers using more than 300 different payment types. Founded in 1989 and headquartered in London, U.K., Worldpay merged with Vanitv at the beginning of the year in a deal valued at $10 billion.

ACH Alert Reports Record Growth, Stops More Than $388 Million in Fraudulent Transactions

Electronic payments fraud prevention specialist ACH Alert has doubled its staff in response to record growth, the Tennessee-based fintech announced this week. The company partnered with more financial institutions in the past 12 months than in the last four years combined, it reported. Over the same time, ACH Alert has prevented more than $388 million in fraudulent transactions.

“Our extensive product suite, including our enterprise level check positive pay service with full back-end reconcilement and payee positive pay, have helped financial institutions prevent millions of dollars in fraudulent transactions, resulting in ACH Alert’s explosive growth and increased demand for our services,” company CEO Deborah Peace said. “As we continue to grow, we plan to use this momentum to protect a greater number of financial institutions and their account holders from payments fraud, as well as the frustration and financial loss associated with it.”

ACH Alert CEO Deborah Peace demonstrating Fraud Prevention HQ at FinovateSpring 2017.

ACH Alert demonstrated its Fraud Prevention HQ at FinovateSpring 2017. The company, which monitored more than $817 billion in transactions over the past year, partners with financial institutions to provide automated fraud detection and prevention services. ACH Alert’s technology protects a variety of payment types against fraud including incoming and outgoing ACH, wire transfers, and checks. The company’s solutions enable banks and credit unions to send actionable alerts to account holders when suspicious activity is detected, giving account holders the opportunity to stop the transaction before it occurs. This combination of automated fraud prevention and “shifting control to the account holder” is a key differentiator in ACH Alert’s ability to help FIs and their customers combat fraud.

Headquartered in Ooltewah, Tennessee and founded in 2007, ACH Alert won the 2016 BankNews Innovative Solutions Award for its Fraud Prevention HQ solution. Earlier this year, the company introduced new anti-fraud solutions for real-time payments and ACH credits. Trustmark National Bank, Venture Bank, and Hancock Whitney Bank are among ACH Alert’s customers. Read our profile of the company from last fall featuring a Q&A with CEO Peace.

Finovate Alumni News

On Finovate.com

  • ACH Alert Reports Record Growth, Stops More than $388 Million in Fraudulent Transactions.
  • Mastercard Teams Up with Worldpay to Launch Pay by Bank in the U.K.

Around the web

  • NetGuardians becomes a certified Avaloq software partner for real-time fraud prevention.
  • Temenos inks multi-year investor servicing contract with Northern Trust.
  • Worldline picks up PISP and AISP licenses from National Bank of Belgium.
  • Enveil earns Standard Technology Partner status in Amazon Web Services partner network.
  • Lleida.net credits new GDPR legislation in the EU for surge in sales for first half of 2018.
  • Equifax acquires specialty credit reporting agency DataX.
  • CFE Federal Credit Union implements Larky’s Engagement Platform.
  • Ledger launches Ledger Live, the all-in-one companion app to your Ledger device.
  • Xero integrates with BBVA’s API Market for small businesses.
  • Lendio expands the Lendio franchise in Rochester, New York.

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.

MapD Launches Latest Version of its Analytics Platform

MapD, a next generation database and visualization layer capable of providing immersive, instantaneous analytics on large and complex datasets, has released the latest version of its technology.

“(We) never thought about the MapD platform as ‘just’ a super fast SQL engine that can leverage GPUs or ‘just’ an immersive, interactive visualization solution,” wrote Venkat Krishnamurthy, VP of Product Management, at the MapD blog. “MapD has always been both, and we care about creating technology for a unified MapD experience around interactivity at scale.”

MapD CEO Todd Mostak demonstrating MapD Core and MapD Immerse at FinovateSpring 2017.

MapD 4.0 adds geospatial data types, an improved rendering engine, and enhancements with the technology’s query engine. These updates make it even easier for analysts to manage and interact with exceptionally large datasets that feature both spatial and temporal data. The ability to examine geospatial data on a map or time series chart, noted Krishnamurthy, provides analysts with “context and visual signals that we can understand clearly and intuitively.”

The new version brings several new features to both MapD Core, the foundation of the MapD Extreme Analytics Platform, and MapD Render, which instantly creates the interactive charts and geospatial visualizations from server-side GPUs. “With MapD 4.0, we’re taking the first big step toward making geospatial analytics available to any user,” Krishnamurthy noted, “from an experienced GIS analyst or data scientist who can write complex SQL queries over location enriched data to a business user of MapD Immerse who wants to go a step beyond mainstream BI tools to derive insight quickly and visually from the same data.”

MapD CEO Todd Mostak demonstrated the MapD platform – including Core and Immerse – at FinovateSpring 2017. With partners including NVIDIA, Google Cloud, IBM, and the Microsoft Accelerator Program, MapD has raised more than $37 million in funding from investors including New Enterprise Associates and Vanedge Capital. Earlier this year, MapD launched a cloud-based version of its offering MapD Cloud. The company was named to the insideBIGDATA IMPACT 50 list in April.

Evry, Handelsbanken Launch Wristband-based Contactless Payments

Handelsbanken, Norway’s national payment system BankAxept, and Evry have launched contactless payments from micro bank cards in wristbands, reports Antony Peyton of Fintech Futures (sister publication of Finovate).

According to Evry, Handelsbanken’s customers become the first in Norway to be able to pay contactlessly.

Evry said the micro format bank card is so small it can be put into a wristband, bracelet, watchstrap, key ring or other location that the customer wishes.

It works at all terminals that are ready to accept contactless payments. Handelsbanken, BankAxept and Evry are currently testing the new solution out in Norwegian shops.

“You can, for example, have this small waterproof card in a wristband on the beach so you can buy an ice cream as soon as you get out of the water without having to first fetch your wallet or mobile. We therefore think many people will like this solution and will use it on a day-to-day basis”, said Anthony Brady, manager for cards at Handelsbanken.

No PIN code is required for purchases of up to NOK 200 ($25). The payment is made in under a second and is as “secure as using a normal bank card”.

The micro bank cards will be offered to Handelsbanken’s customers later this year.

Handelsbanken has 49 branches and approximately 750 employees. The bank in Norway is part of Svenska Handelsbanken.

The group has 12,000 employees in over 800 branches across more than 20 countries, and was set up in 1871. Its head office is in Stockholm.

According to BankAxept, eight out of every ten card payments made in shops are made using a BankAxept card.

Since it was started in the early 1990s, BankAxept has been owned and managed by Finance Norway.

Evry demonstrated its PFM solution, Spendific, at FinovateEurope 2015. The Norwegian fintech is a leading supplier of IT services for the financial industry in the Nordics, serving more than 100 banks across the Nordics, the Baltics, and the U.K.

Finovate Alumni News

Around the web

  • New partnership makes Venmo a payment option for Uber and Uber Eats.
  • Hedgeable announces plan to end management of accounts by mid-August.
  • IdentityMind Global to provide KYC for Ontology Trust Ecosystem.
  • Socure named to Red Herring Top 100 in North America for 2018.
  • Mortgage Cadence integrates compliance auditing and monitoring into its loan origination platform.
  • Bluefin and Verifone team up to boost payment security with PCI-validated Point-to-Point Encryption (P2PE).
  • Twisto payment platform goes live in Poland this week.

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.

Finicity and Cre8tech Labs’ Lender Price Partner to Streamline Digital Lending

With the goal of streamlining and improving the customer experience in mortgage lending, real-time financial data aggregation innovator Finicity has announced a new collaboration with financial services technology provider Cre8tech Labs. The first step in the partnership will integrate Finicity’s Verification of Assets (VoA) solution into Cre8tech’s Lender Price Digital Lending platform.

“Consumers understandably want the most accurate information when making a life-altering purchase like a new house,” CEO and co-founder of Finicity Steve Smith said. “Lenders want to meet those expectations while improving efficiency and profitability.” Smith praised Lender Price as a “disruptor” that was “enhancing the mortgage lending experience for borrowers and lenders with a smart, digital solution.”

The new digital lending experience will combine the improvements in accuracy and fraud reduction from Finicity’s credit decisioning technology with Lender Price’s pricing and eligibility engine. Borrowers benefit from a seamless, paper-free process that draws financial information directly from financial institutions, and a digital application experience that supports collaboration between the loan officer and borrower.

Cindy Douglas, Mountain West Financial implementation and onboarding specialist, praised the technology for improving efficiency for loan officers and reducing time to close. “We’re excited to provide our borrowers with the exceptional customer experience of automated VoA reports,” Douglas said. She added, “improvements to our digital mortgage process are crucial to making homeownership a reality for our communities.”

Founded in 1999, Finicity demonstrated its Credit Decisioning technology at FinovateFall 2017. In addition to unveiling a new status page for administrators and developers (status.finicity.com) to enable visibility into real-time API and FI connection uptime, the company demonstrated its Finicity Reports product. Finicity Reports is an online portal that enables lenders to order consumer financial reports that leverage consumer-permissioned data.

Finicity is also a veteran of our developers conference, having most recently presented The Frictionless Aggregation Experience at FinDEVr New York 2017.

Headquartered in Salt Lake City, Utah, Finicity has raised more than $50 million in funding, and includes Bridge Bank and fellow Finovate alum Experian among its investors. The company acquired Aurora Financial Systems – also a Finovate alum – in 2015.

In recent months, Finicity forged a data sharing agreement with USAA, and announced a new partnership with Mortgage Cadence to integrate its Verification of Assets solution into Mortgage Cadence’s loan origination platform. This spring, the company integrated its VoA technology with digital mortgage marketplace provider BeSmartee, and teamed up with borrower-centric digital lending platform MortgageHippo.

Baker Hill Inks Loan Origination Deal with West Texas State Bank

One month after bringing its loan origination platform to $5.6-billion North Carolina-based First Bank, Baker Hill is back in the news. The fintech is teaming up with West Texas State Bank (WTSB) to support efficient loan growth with its NextGen Loan Origination for Commercial and Consumer Lending platform. The technology, in the words of West Texas State Bank Chief Lending Officer and COO Les Robbins, will help the bank “streamline the origination process with … roles-based, intuitive lending solutions.”

WTSB will leverage Baker Hill’s technology to standardize both its commercial and consumer lending processes, and automate many otherwise manual tasks. In addition to making the underwriting process more efficient, the platform enables bank professionals to access customer data across loan types to create the kind of comprehensive financial portrait that makes risk management easier and more accurate.

“By providing tools to improve lending efficiencies and capturing the data needed to make quality credit decisions, Baker Hill NextGen empowers financial institutions, like West Texas State Bank, to maximize their growth and profitability potential,” Baker Hill President and CEO John M. Deignan said. “Additionally, our team’s industry expertise and consultative approach ensures that our clients get the most value possible out of their technology investment. We look forward to working with West Texas State Bank and helping this institution drive speed, efficiency, and accuracy within its lending operations.”

Founded in 1983 and headquartered in Carmel, Indiana, and Beaverton, Oregon, Baker Hill demonstrated its NextGen Small Business Online Loan Application & Auto Decisioning Solutions earlier this year at FinovateSpring 2018. Baker Hill serves 500 financial institutions, including more than 20% of the top 150 U.S. banks and 20% of the top 25 U.S. credit unions. The company was acquired by Riverside Company in 2015 for $100 million.