SocietyOne Appoints New CEO as it Nears $500 Million in Total Lending

Australian peer-to-peer lending company SocietyOne is shaking up its ranks as it approaches a lending milestone this week. The company appointed Mark Jones (pictured) as its new CEO, weeks after founder and former CEO Jason Yetton stepped down.

Jones, who has been with SocietyOne since February 2018, most recently served as chief financial officer and commercial director of SocietyOne. Prior to that role, he worked at WestPac for just over four years, serving in capacities including CFO to Director of Divisional Partnerships. Jones also brings experience from his tenure at Barclays and Citibank.

SocietyOne is celebrating its sixth anniversary this month, just as the company approaches $500 million in total lending since its product was launched in 2012. Since that time, SocietyOne has matched 20,000 customers with $480 million in loans from investors on its platform. The company anticipates it will surpass $500 million in September.

“The last 12 months have represented another year of growth, transformation, and progress,” said Jones. “We have seen continued growth in lending with more than $150 million originated since our fifth birthday.” Along with the boost in lending, Jones attributes the growth to an improvement in margins and disciplined cost management.

Additionally, Jones highlighted SocietyOne’s recent milestones:

  • Closed a strategic investor capital raise in January 2018
  • Appointed Simon Farrell as Chief Technology Officer and Ross Horsburgh as Chief Credit Officer
  • Launched a new personal loan offering through mortgage brokers
  • Ranked by The Australian Financial Review as #37 of the Top 100 Most Innovative Companies for 2018

“The next 6 months will be another exciting period of growth and innovation,” said Jones. Over the next two quarters, SocietyOne will improve the customer experience, build its brand, develop new investor tools, and create new partnerships.

SocietyOne presented its P2P lending platform at FinovateAsia 2012 in Singapore. The company offers borrowers personalized repayment programs with lower interest rates than major banks. Users can borrow between $5,000 to $50,000 for unsecured, personal loans for two, three, or five year terms.

Credit Karma Buys Mortgage Platform Company

Consumer credit monitoring and financial health company Credit Karma is furthering its reach into the real estate sector this week with the acquisition of mortgagetech startup Approved.

In a blog post yesterday, Approved Founder and CEO Andy Taylor announced that Credit Karma had acquired the three-year-old startup for an undisclosed amount. “Working with Credit Karma gives us the resources and immediate scale to accelerate our mission-driven work, reaching significantly more homebuyers than we could have imagined when we started,” Taylor said.

Credit Karma, which previously offered a basic mortgage comparison tool, is bolstering its capabilities with Approved at a time when many Millennials are beginning to purchase their own homes. As the company’s Chief Product Officer Nikhyl Singhal explained in an interview with TechCrunch, “As we’ve expanded, you’ve seen us move from credit cards as a way to help members with that part of their life to first personal loans to auto — meaning auto loans, auto insurance,” he said. “Today, we’re really talking more publicly about mortgage. Mortgage being for many of our members the most important financial decision they’ll make.”

Having facilitated almost $5 billion in loan originations, Approved was launched in 2015 by Taylor and co-founder Navtej Sadhal. The two met while working at RedFin, where they realized a need for disruption in the back-end of the mortgage process, where inefficiencies such as fax machines are still prevalent. Taylor vowed to stay true to Approve’s humble roots, adding, “We can’t wait to reveal what we’re working on next.”

Credit Karma already hosts many financial tools such as credit monitoring, tax filing, and credit card comparisons. By adding a more robust mortgage platform to this list, the company is creating a more sticky ecosystem with which to hook its 80 million users, half of which are Millennials.

At FinovateSpring 2009, Credit Karma CEO Ken Lin demonstrated the company’s platform, which offers free credit reports from Equifax and TransUnion, and seeks to serve as a hub for users to monitor their financial health. The company has facilitated the origination of more than $40 billion in credit products since it was founded in 2007. Earlier this year, the company teamed up with SpyCloud to help users determine if their data is being used on the dark web. Check out our recent interview with Colleen McCreary, Credit Karma’s first Chief People Officer.

Finovate Alumni News

On Finovate.com

  • Credit Karma Buys Mortgage Platform Company.

Around the web

  • Coin Telegraph: Ripple partners with three crypto exchanges as part of XRapid solution
  • Insuritas partners with Alabama One Credit Union and Alabama One Agency Insurance Services to provide insurance offerings for members.
  • figo receives ZAG license and enables ‘License as a Service’ through RegShield.
  • NPR features how PayActiv helps Americans avoid payday loans.
  • MX named one of fastest growing companies in Utah for 2018.

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.

Highlights of This Year’s Inc. 5000

Inc. has once again released its lists of the fastest-growing 5,000 private companies in the U.S. and Europe this week. A total of 13 Finovate alums made the U.S. list and 14 earned spots on the Europe list. To qualify*, companies were required to be privately-owned and independent.

Inc. 5,000 U.S.

The 5,000 companies on this year’s list collectively generated more than $206 billion in revenue. Here are the 13 Finovate alums that made the cut this year:

SeedInvest

  • Rank: 117
  • 2017 revenue: $4.7 million
  • 3-year growth: 33.8x
  • Founded: 2013
  • Employees: 30
  • Ranked number 4 in top financial services companies

SeedInvest demoed at FinovateSpring 2013.

Cardflight

  • Rank: 139
  • 2017 revenue: $5.1 million
  • 3-year growth: 29x
  • Founded: 2009
  • Employees: 192
  • Ranked number 5 in top financial services companies

CardFlight demoed at FinovateSpring 2013.

Alkami technology

  • Rank: 284
  • 2017 revenue: $26.8 million
  • 3-year growth: 17x
  • Founded: 2009
  • Employees: 299
  • Ranked number 10 in top Dallas companies

Alkami debuted under the name iThryv at FinovateSpring 2009.

Passport

  • Rank: 389
  • 2017 revenue: $12.3 million
  • 3-year growth: 12.6x
  • Founded: 2010
  • Employees: 96
  • Ranked number 4 in top Charlotte companies

Passport demoed at FinovateEurope 2016.

Emailage

  • Rank: 625
  • 2017 revenue: $16.6 million
  • 3-year growth: 8x
  • Founded: 2012
  • Employees: 79
  • Ranked number 6 in top security companies

Emailage demoed at FinovateSpring 2015.

Lighter Capital

  • Rank: 776
  • 2017 revenue: $11.9 million
  • 3-year growth: 6.5x
  • Founded: 2010
  • Employees: 39
  • Ranked number 11 in top Seattle companies

Lighter Capital demoed at FinovateFall 2013.

Tango Card

  • Rank: 912
  • 2017 revenue: $17 million
  • 3-year growth: 5.4x
  • Founded: 2009
  • Employees: 80
  • Ranked number 14 in top Seattle companies

Tango Card demoed at FinovateFall 2016.

WealthForge

  • Rank: 932
  • 2017 revenue: $8.9 million
  • 3-year growth: 5.3x
  • Founded: 2009
  • Employees: 29
  • Ranked number 6 in top Richmond, VA companies

WealthForge demoed at FinovateSpring 2016.

Unison

  • Rank: 1048
  • 2017 revenue: $2.3 million
  • 3-year growth: 4.7x
  • Founded: 2014
  • Employees: 10
  • Ranked number 4 in top Detroit companies

Unison demoed at FinovateFall 2017.

Acuity Systems

  • Rank: 1107
  • 2017 revenue: $12.6 million
  • 3-year growth: 4.5x
  • Founded: 2010
  • Employees: 26

Acuity Systems demoed at FinovateEurope 2013.

defi SOLUTIONS

  • Rank: 1176
  • 2017 revenue: $14.6 million
  • 3-year growth: 4.1x
  • Founded: 2012
  • Employees: 80

defi SOLUTIONS demoed at FinovateSpring 2014.

Interactions

  • Rank: 1550
  • 2017 revenue: $92.9 million
  • 3-year growth: 3x
  • Founded: 2004
  • Employees: 413

Interactions demoed at FinovateSpring 2014.

Cardlytics

  • Rank: 2886
  • 2017 revenue: $130.4 million
  • 3-year growth: 1.4x
  • Founded: 2008
  • Employees: 342

Cardlytics demoed at FinovateFall 2014. The company went public early this year.

Inc. 5,000 Europe

This is the fourth year in a row Inc. has ranked European countries. The rankings are based on three-year revenue growth. Here are the 14 Finovate alums that earned a spot on the list, including SumUp, which took the number one slot:

SumUp

  • Rank: 1
  • 2016 revenue: $63.7 million (€56 million)
  • 3-year growth: 143.7x
  • Founded 2011
  • Employees: 500

SumUp demoed at FinovateEurope 2013.

VATBox 

  • Rank: 91
  • 2016 revenue: $6.9 million (€6.1 million)
  • 3-year growth: 25x
  • Founded 2012
  • Employees: 140

VATBox demoed at FinovateEurope 2015.

Kantox 

  • Rank: 390
  • 2016 revenue: $4.9 million (€4.3 million)
  • 3-year growth: 12x
  • Founded 2011
  • Employees: 73

Kantox demoed at FinovateEurope 2013

HelpMyCash

  • Rank: 699
  • 2016 revenue: $2.96 million (€2.6 million)
  • 3-year growth: 8.3x
  • Founded 2007
  • Employees: 16

HelpMyCash demoed at FinovateEurope 2011.

Featurespace 

  • Rank: 901
  • 2016 revenue: $3.41 million (€3 million)
  • 3-year growth: 7x
  • Founded 2005
  • Employees: 62

Featurespace demoed at FinovateFall 2016.

Kalixa Payments 

  • Rank: 918
  • 2016 revenue: $42.3 million (€37.2 million)
  • 3-year growth: 7x
  • Founded 2008
  • Employees: 112

Kalixa demoed at FinovateEurope 2013.

Zopa

  • Rank: 1314
  • 2016 revenue: $46.3 million (€40.7 million)
  • 3-year growth: 5.4x
  • Founded 2004
  • Employees: 188

Zopa demoed at FinovateSpring 2008.

Feedzai

  • Rank: 1330
  • 2016 revenue: $13.8 million (€12.1 million)
  • 3-year growth: 5.4x
  • Founded 2008
  • Employees: 68

Feedzai demoed at FinovateEurope 2014.

Trustly

  • Rank: 1344
  • 2016 revenue: $36.7 million ( €32.3 million)
  • 3-year growth: 5.4x
  • Founded 2008
  • Employees: 83

Trustly demoed at FinovateEurope 2017.

Fenergo

  • Rank: 1882
  • 2016 revenue: $33.8 million ( €29.7 million)
  • 3-year growth: 3.8x
  • Founded 2012
  • Employees: 183

Fenergo demoed at FinovateEurope 2012.

Innofis

  • Rank: 2452
  • 2016 revenue: $8.2 million (€7.2 million)
  • 3-year growth: 2.6x
  • Founded 2012
  • Employees: 69

Innofis demoed at FinovateEurope 2016.

Quadient France 

  • Rank: 2966
  • 2016 revenue: $8.9 million (€7.8 million)
  • 3-year growth: 1.8x
  • Founded 2007
  • Employees: 21

Quadient demoed at FinovateEurope 2018.

True Potential

  • Rank: 3233
  • 2016 revenue: $88.5 million (€77.8 million)
  • 3-year growth: 1.5x
  • Founded 2007
  • Employees: 234

True Potential demoed at FinovateFall 2014.

Comarch

  • Rank: 4954
  • 2016 revenue: $35.6 million (€31.3 million)
  • 3-year growth: 59%
  • Founded 1978
  • Employees: 148

Comarch demoed at FinovateEurope 2017.


*Companies on the 2018 Inc. 5000 are ranked according to percentage revenue growth from 2014 to 2017. To qualify, companies must have been founded and generating revenue by March 31, 2014. They must be privately held, for-profit, and independent–not subsidiaries or divisions of other companies–as of December 31, 2017. (Since then, some on the list have gone public or been acquired.) The minimum revenue required for 2014 is $100,000; the minimum for 2017 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons.

FinovateFall Sneak Peek: ITSCREDIT

FinovateFallA look at the companies demoing live at FinovateFall on September 24 through 26, 2018 in New York. Register today and save your spot.

ITSCREDIT’s Online Credit Platform covers the entire credit lifecycle, providing an innovative way to manage and automatize all credit processes with API availability for open banking integration.

Features

  • Instant credit to non-clients
  • Online payments using instant credit offers 100% online attribution
  • Credit using instant credits is open to partners through APIs

Why it’s great
Its platform has an authentic, end-to-end solution. It is available to clients and non-clients, and completes a credit process from the simulation to the disbursement with short implementation time.

Presenters

Cristóvão Morgado, Platform Specialist and Architect
With nearly 20 years of experience in digital transformation and constant contact with the financial market key players, Morgado is the ideal choice to present ITSCREDIT’s solutions at Finovate.
LinkedIn

Sara Martins, Business Developer
Martins’ experience in international events for digital transformation in financial services allowed her to specialize in the fintech area, which demands enthusiastic professionals as herself.
LinkedIn

FinovateFall Sneak Peek: Bucket Technologies

FinovateFallA look at the companies demoing live at FinovateFall on September 24 through 26, 2018 in New York. Register today and save your spot.

Bucket is a technology platform that integrates with existing POS systems to facilitate coinless cash transactions at retail locations.

Features

  • First global aggregator of coin currency value
  • Coinless cash transactions
  • A new way to save money

Why it’s great
Bucket is the solution to the world’s coin currency problem. By mobilizing the value of coins, Bucket is empowering individual consumers and re-injecting idle cash into the global economy.

Presenter

Francis Hwang, CEO
Hwang has over a decade of experience in launching and managing successful businesses. He is committed to eliminating coins and alleviating the stresses from the production of coin currency.
LinkedIn

Finovate Alumni News

On Finovate.com

  • Using Your Data to Stay Alive.

Around the web

  • BBVA Compass leverages MX for financial management tools.
  • CNBC: Ripple wants to target China with blockchain-based payments
  • ID.me approved as NIST 800-63-3 conformant.
  • Industrial Bank of China selects Avaloq to provide a banking solution for its private-banking branch in Hong Kong.
  • Entrust Datacard receives patent for card personalization process
  • Los Angeles Business Journal names CoverHound a Top Place to Work for 2018.

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.

Using Your Data to Stay Alive

Earlier this year we published a post titled Data or Die that describes the ways firms can leverage their data. Collecting data is hard, analyzing data is hard, but dying is simply not an option. So how do financial services companies stay alive?

In a recent report by McKinsey, authors Peter Bisson, Bryce Hall, Brian McCarthy, and Khaled Rifai set out to learn how companies who are successful at leveraging data analytics are able to do so at scale. The team surveyed 1,000 companies with more than $1 billion in revenue that operated in 13 sectors and across 12 geographic locations to learn the tricks to winning at data analytics.

As it turns out, successfully leveraging data analytics across an organization isn’t easy. In fact, only 8% of the companies in the survey thrived in this area.McKinsey found nine strategies the top performers use to outperform their peers:

  1. Obtain a strong, unified commitment from all levels of management: 61% have executive leadership that is aligned on an analytics vision and strategy
  2. Increase investment in analytics: 65% spend more than 25% of their IT budget on analytics
  3. Develop a clear data strategy with strong governance: 67% have a clear strategy to support their analytics program
  4. Use sophisticated analytics methodologies: 63% have a clear methodology for model development, insight interpretation, and new deployment
  5. Possess analytics expertise and hire talent that does, too: 89% employ more than 25 data and analytics professionals per 1,000 full time employees
  6. Create cross-functional, agile teams: 58% have models that revolve around multi-skilled teams
  7. Prioritize decision-making: 55% prioritized the top areas in which to embed analytics
  8. Establish decision-making rights and responsibilities: 58% establish decision-making accountability
  9. Empower front lines to make analytics-driven decisions: 57% make decisions quickly and continually refine their approach

While these numbers are convincing, not all of the most successful companies in the study abide by these categories. In fact, based on the numbers above, these only held true for an average of 67% of the top performers. The one area where there seemed to be more consensus may, however, be worth paying attention to. That is, successful companies have data analytics experts already on their team and they focus on hiring talent that is skilled in this area, as well.

Overall, McKinsey advised firms to “conquer the last mile” of their analytics journey by starting with… the last mile:

“Most companies start their analytics journey with data; they determine what they have and figure out where it can be applied. Almost by definition, that approach will limit analytics’ impact. To achieve analytics at scale, companies should work in the opposite direction. They should start by identifying the decision-making processes they could improve to generate additional value in the context of the company’s business strategy and then work backward to determine what type of data insights are required to influence these decisions and how the company can supply them.”

Now that McKinsey has shown you where to start, fintechs can help by showing you how. There are numerous fintechs who specialize in leveraging data across organizations. Below are nine companies across three categories:

Marketing

  • GoodData offers an insights platform-as-a-service that provides data management and analytics to improve the operational decision-making process for employees, users, and partners. The company enables users to build standalone or embedded analytic apps that pull data from multiple sources.
  • Race Data leverages customer data and turns it into market intelligence. By looking at consumer behavior, the company builds personalized engagements with the brand. The company offers a fintech platform built specifically to help community banks have more meaningful conversations with their customers.
  • Red Zebra Analytics creates loyalty and engagement solutions for retail and bank customers. The tools leverage analytics to monitor and predict customer behavior and to serve as an incentive for customers to return to the bank’s online and mobile banking channels.
Above: GoodData’s process for transforming raw data into actionable predictions and recommendations

Business intelligence

  • Ephesoft offers a document capture and analytics platform that automatically extracts data. Using machine learning, the company puts that data to work to improve business processes such as invoicing, mortgage approvals, compliance checks, and insurance claims.
  • Hyper Anna aims to democratize data by offering an AI-powered data analyst that firms can interact with using natural language. The assistant writes code, analyzes data, creates charts, and answers questions about key business drivers.

Fraud protection

  • Guardian Analytics uses data on banking clients’ behavior to detect and prevent banking fraud. The company creates a unique ID for each user by analyzing how they interact with their device and the bank’s website.
  • NuData Security identifies users based on data gathered from their online interactions. By leveraging four layers of intelligence (pictured right); passive biometric verification, behavioral trust consortium, behavioral analytics, and device intelligence; the company can identify and prevent fraud.
  • ID Analytics maintains an ID Network, a database of cross-industry consumer behavioral data, that offers an assessment of consumer creditworthiness and risk. The ID Network is composed of consumer data contributed from the company’s clients.
  • ThetaRay’s analytics platform enables clients to detect anomalous behavior across a large data set of transactions. Once an anomaly is detected, the bank can migrate the transaction to protect against loss.

Cardlytics Hooks Wells Fargo as Partner

According to data-driven marketing company Cardlytics, every purchase tells a story. And it turns out that every partnership tells a story, too. During its earnings call this week, the Atlanta-based company announced a deal with Wells Fargo under which Cardlytics will power the bank’s cash-back rewards program.

“We are happy to announce the signing of an agreement with Wells Fargo to launch Cardlytics Direct nationally and across all digital channels,” said Lynne Laube, Cardlytics COO and co-founder. Cardlytics Direct leverages the Purchase Intelligence platform, which processes trillions of dollars of raw purchase data from millions of accounts across thousands of financial institutions. The company uses algorithms and machine learning to make it useful for marketing and analytics, developing insights for smarter business decisions.

While Purchase Intelligence will boost Wells Fargo’s cash-back rewards program, it will also benefit Cardlytics, which will receive access to a new wealth of customer data. “Adding Wells Fargo to the Cardlytics Purchase Intelligence platform will further strengthen our ability to provide actionable insights for our marketing clients. Marketers can act on these insights, reaching a scaled audience inside banks’ secure digital channels – where consumers are already thinking about their money,” said Laube.

(above) Cardlytics’ Purchase Intelligence platform breaks down customers’ purchase data to offer banks insights.

Additionally, Cardlytics released its Q2 earnings report, highlighting a handful of growth metrics:

  • Total revenue was $35.6 million
  • Revenue increased 8% year-over-year, up from $32.8 million in the second quarter of 2017
  • Cardlytics Direct revenue was $35.1 million

At FinovateFall 2013, Cardlytics demoed its geolocation application, a solution that sends bank customers ads and offers based on their location.The company was the first fintech to go public early this year, now boasting a market capitalization of $408 million. Cardlytics also inked a deal with J.P. Morgan Chase and today announced it was listed on the Inc. 5,000 list for the fourth consecutive year. This year, Inc. ranked the company 2886 with revenue of $130.4 million and revenue growth of 142% from 2014 to 2017.

FinovateFall Sneak Peek: aixigo

FinovateFallA look at the companies demoing live at FinovateFall on September 24 through 26, 2018 in New York. Register today and save your spot.

aixigo offers the fastest wealth management technology. The company enables innovation leaders to digitalize all aspects of the personal investment business.

Features

  • Offers the fastest wealth management platform
  • Manages millions of portfolios
  • Sends millisecond responses combined with big data scalability

Why it’s great
aixigo’s wealth management technology is the fastest available. It will manage millions of portfolios your way.

Presenters

Mario Alves, Head of Sales and Partner Management
Alves is a proven expert in retail and private banking, with a special focus on investment and advisory in MiFID related markets and products.
LinkedIn

Marcus Gründler, Head of Portfolio Management Systems
Gruendler is head of portfolio management systems at aixigo with international project experience and develops aixigo’s high performance wealth management platform.
LinkedIn