Trunomi Closes $3 Million Seed Round

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Consumer data provisioning company Trunomi pulled in its third round of funding today. The $3 million seed round brings the company’s total funding to $8.3 million.

The round was co-led by existing investor Saturn Partners and newcomer Fintonia, whose chairman & CEO Adrian Chng has joined Trunomi’s board. Several other existing investors also contributed.

The California-based company aims to give consumers control of how their own Personal Identifiable Information (PII) is used by banks, while offering banks a way to safely create, manage, and share consumer information in a cost efficient manner. At FinovateEurope 2015 in London, the company’s CEO and founder Stuart Lacey launched TruMobile, a customer-focused “consent engine” that creates privacy policies to allow the sharing of consumer PII data across platforms. In today’s press release Lacey said:

“Consumers globally are becoming increasingly aware of the value of their own data. They are also living through a period of intense digitization in financial services. Together with our investors, we recognize that the pressure is truly on financial services providers, not only to meet these market pressures but to operate in full compliance with a raft of new, global data privacy regulations.”

Founded in 2013, Trunomi has offices in Bermuda, Dublin, and Silicon Valley. In April, Trunomi partnered with InAuth to help financial services companies manage consumer data during mobile onboarding. In June, the company took home two awards at the Benzinga Fintech Awards.

Mobile UI: Capital One Wallet Moves Back to Old-School Navigation

hamburger-menuI am not a huge fan of the hamburger navigation menu. If you are a smartphone native, I’m sure you eyes goes right to the little pack of horizontal lines in the corner. But if you got your first smartphone in your 40s, you probably could use a little more help.

So I applaud Capital One, recently named in Fast Company as one of the best-designed mobile apps (see note 1), which in a 7 Sep iOS update ditched the so-called hamburger menu for something that’s actually visible on the page. See Fig 1 before and Fig. 2 after. I also learned today that Key Bank made the same decision to ditch the burger, but instead of a lower nav bar, they went with the more web-centric look of a near-the-top nav (Fig 3).

Capital One Wallet iOS Previous
Fig 1. Capital One Wallet iOS
Previous

 

Capital One Wallet iOS Current
Fig 2. Capital One Wallet iOS
Current

Unless you are Facebook, Instagram, or other apps where customers spend hours every week, you need to make it easy for infrequent users to find their way through your app. And even though mobile banking is relatively simple, many providers make it needlessly hard to navigate with cute, hidden menus.

I understand why designers minimize the navigation, mobile real estate is precious, and even a half-centimeter devoted to on-screen navigation is a lot. But what’s more important, showing more transactions on the main screen or how do actually do something meaningful?

The update also included a new restaurant finder to identify popular eating establishments based on transaction data across all Capital One cardholders (Fig 4). It’s reminiscent of the Citigroup/Microsoft/Morningstar joint venture Bundle (F10), which, not coincidentally was acquired by Capital One four years ago.

Key Bank iOS app with top navigation
Fig 3. Key Bank iOS app with top navigation

 

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Fig 4. Restaurant Finder in Capital One Wallet (iOS)

———-

Notes:
1. Only two financial companies were named in Fast Company’s the list of 100+ best-designed products or apps in the October issue. The other was RobinHood, the simple mobile stock trading app.

Finovate Alumni News

On Finovate.com

  • Trunomi Closes $3 Million Seed Round

Around the web

  • D+H Expands Mortgagebot Platform with MortgagebotMobile.
  • Gusto (fomerly ZenPayroll) now serves 40,000 small businesses.
  • Entersekt and Meniga listed among 100 most promising African fintech companies of 2016.
  • Motif Investing transitions to subscription service; hints at plans to launch roboadvisor.

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.

Wave Mechanics: FT Partners Report Highlights Trends Driving Rise of Insurtech

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“Insurtech” isn’t about providing financial assistance to distracted gamers who injure themselves playing Pokemon Go (though there is that). It’s a growing, thriving aspect of financial technology that is becoming a category of its own – apart from the world of payments, robo-advisors, and PFM that characterizes much of what we call “fintech.”

The new report just released from FT Partners (and available for free download) helps financial services execs better understand the rise of insurance technology. Prepare for the Insurtech Wave: Overview of Key Insurance Technology Trends is a 247-page research report that details trends in insurance distribution and administration, data and analytics; and sales, marketing, and engagement; and puts into context the opportunities from the “new technologies and transformative business models” that are “targeting all areas of the multi-trillion dollar global industry.”

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A few key metrics from the report:

  • Total premiums for all insurance sectors in 2015: $2.0 trillion
  • More than 6,000 insurance companies in the U.S. employ more than 2.5 million.
  • Property and casualty (P&C) insurers generated $64 billion in net income in 2014. Life and health insurance companies generated $38 billion.

What makes insurtech especially interesting is where it sits at the nexus of the pace of technological innovation and the reality of an ever-evolving regulatory landscape. Prepare for the Insurtech Wave reveals an industry responding to this challenge in a variety of ways from starting ventures arms to teaming up with startups tackling key pain points, as well as those best poised to take advantage of new technologies such as the Internet of Things. This, the report notes, has “huge implications across the insurance value chain.”

The report highlights the “Disruptors” of insurtech, a group of 40 startups that includes Finovate alums CoverHound and Sureify, as well as what it calls “established tech-enabled companies” such as insurance software developers Ebix and even 3D aerial measurement services and reports startup from Seattle, EagleView Technologies. Also listed are major recent insurtech M&A and financing transactions such as the $500 million raised by Zenefits and the $160 million to Clover.

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Prepare for the Wave underscores the importance of convenience, speed, and transparency for the modern insurance consumer, encouraging the industry to embrace multi-channel engagement and new products like micro insurance. The report also looks at the role of the insurance agent, noting that a growing preference for insurance shopping online (61% of consumers between the ages of 18 and 54 saying that would purchase life insurance online in a recent PwC poll), as one of many factors that are likely to undermine one of the industry’s historically most relied-upon distribution channels. “At a time when life insurance ownership is plummeting,” the report reads, quoting the PwC poll, “life insurers are waking up to an inconvenient truth; Decades of relying on an agency distribution system have left them woefully unprepared to survive in today’s consumer driven economy.”

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At the same time, the report notes that “the incumbents do not have their heads in the sand.” Note that:

  • Among traditional insurers, 43% are planning to “acquire or have already acquired innovative startups to help expand digital capabilities.”
  • More than half have “already invested” in social media, data mining, and predictive modeling
  • Approximately 68% embracing mobile technology.

Additionally, Ptolemus Consulting is cited, pointing out that insurance companies have “launched nearly 230 telematics programs worldwide, in twice as many countries as two years ago.” Telematics is the intersection of telecommunication and informatics, and is a part of the Internet of Things (IoT). Specifically, it refers to the collection and transformation of data via sensors in a “connected” vehicle or building for the purpose of risk assessment. The report concludes with an extensive Selected Transactions section, detailing fundraising, mergers, acquisitions, and other relevant deals involving insurtech companies.

About FT Partners

Founded in 2001, Financial Technology Partners is the only investment banking firm dedicated exclusively to financial technology and a long-time sponsor of Finovate events. The firm named Investment Banking Firm of the Year in 2016 and Deal Maker of the Year in 2015, has offices in San Francisco and New York. Steve McLaughlin is founder and CEO.

Financeit Recruits CFO from Capital One Canada

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Point of sale customer financing solution Financeit expanded its team this week. The Toronto-based company brought on Ian Hanning from Capital One Canada as its new Chief Financial Officer.

Hanning comes to Financeit having served for 5 years as Capital One Canada’s CFO and has 20 years of experience in managing finance teams across the U.K. and Canada. Prior to taking the CFO position at Capital One Canada, Hanning held various senior leadership positions within the bank. In a press release Michael Garrity, founder and CEO of Financeit, said that Hanning “will be a great asset to our company as we expand our loan portfolio and grow our business.”

This news comes weeks after Financeit’s acquisition of TD Bank’s indirect home improvement financing assets, in conjunction with wholesale finance and trust solution provider, Concentra. Through the partnership, 800 merchant dealers will transition to Financeit.

At FinovateFall 2014 Financeit launched in the U.S. in partnership with FIS. Since it was founded in 2011, Financeit has received more than $1.5 billion in loan applications from 5,400+ merchant partners. In August of this year Financeit introduced Financeit Direct, a direct-to-consumer financing platform that allows customers to complete loan applications on their mobile device. In fall of 2015, the company closed on an undisclosed amount of funding from Goldman Sachs, bringing its funding to more than $22 million. Financeit planned to use the funding to add to its merchant partner base, which at the time was at 4,000.

Klarna Goes Live with SAP’s Smart AFI

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Online payment solutions company Klarna has made a move that furthers its goal to become “the world’s favorite way to buy”. The Ohio-based company has gone live with SAP’s Smart Accounting for Financial Instruments, (Smart AFI).

The new solution, which is compliant with International Financial Reporting Standards (IFRS) and U.S. GAAP standards, comes as a part of SAPs Bank Analyzer 9.0 release. Using the new offering, Klarna will supply a centralized subledger for banks that integrates directly into a company’s accounting documentation chain. This will allow for easier geographical expansion, since it can handle multiple GAAP policies and the ability to offer more products.

“Our growth necessitated a centralized accounting system, one that gave us visibility across regional lines of business,” said Max Fischer, vice president, Klarna. “We were concerned that getting that visibility would take a substantial amount of time and resources, but with SAP we were able to do it in only three months and with zero lag time in operations. It’s had a positive impact on our business.”

Klarna serves 45 million customers and works with 65,000 ecommerce merchants. At FinovateSpring 2012, the company demoed its technology that offers after-delivery payment, which ensures buyers receive the goods they ordered before the payment is due. As a perk to retailers, Klarna assumes the credit and fraud risk of a transaction to ensure retailers receive payment. Spotify, Disney, and Samsung are among the company’s clients.

Founded in Stockholm in 2005, but making its U.S. debut just one year ago, the company is headquartered in Columbus, Ohio and has offices in San Francisco and New York City. Klarna raised $35 million bringing its total funding to $291 million from 12 investors.

FinDEVr Preview: Smartwave

FinDEVrSV16-withdateFinDEVr Previews highlight companies presenting new developer tools, platforms, and integrations at FinDEVr Silicon Valley 2016, October 18 & 19. Tickets are on sale now. So visit our registration page and save your spot today.

Smartwave PaaS is a bridge between legacy systems and a new digitized front-line. Smartwave decreases time to market and keeps robust back office. The Smartwave platform provides a simple and powerful interface to build, change, and improve business process apps without coding.

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Why it’s a must-see

The current system of software development and implementation uses 20% of the developer’s time to fix bugs and keep maintenance of existing software. Would you be interested in cutting it to 10%, and use other 10% to develop new ideas? Smartwave can make it happen, come and see how.


Check out more of today’s FinDEVr Previews:

FinDEVr Preview: Kyckr

FinDEVrSV16-withdateFinDEVr Previews highlight companies presenting new developer tools, platforms, and integrations at FinDEVr Silicon Valley 2016, October 18 & 19. Tickets are on sale now. So visit our registration page and save your spot.

Corporate identity, and proof of same, is critical in today’s world. Kyckr shows how its traditional APIs, which provide global access to company house information, combined with blockchain technologies, can work together symbiotically to provide immutable proof of a company’s information at the time of any given transaction.

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Why it’s a must-see

Several in-house APIs will be outlined through a custom interface in order to practically demonstrate: a) retrieval of live company identity information; b) creation of a proof of that identity; and c) deployment of that proof to various blockchains through an API, which provides an abstraction layer over multiple technologies.


Check out more of today’s FinDEVr previews:

FinDEVr Preview: Alloy

FinDEVrSV16-withdateFinDEVr Previews highlight companies presenting new developer tools, platforms, and integrations at FinDEVr Silicon Valley 2016, October 18 & 19. Tickets are on sale now. So visit our registration page and save your spot.

Alloy will be presenting a new way to create and optimize customer onboarding applications. The company will graphically create an API to verify customer information for KYC/AML purposes and then optimize it to increase conversion rates for “good” customers.

alloy_homepage_september2016

Why it’s a must-see:

Until now, KYC services have been a black box. If your business is turning away good customers because identity services are denying them, there is no recourse. Alloy gives you full visibility and write-access to the decisioning logic and allows you to test, optimize, and instantly modify existing onboarding logic in production.


Check out more of today’s FinDEVr previews:

Finovate Alumni News

On Finovate.com

  • Financeit Recruits CFO from Capital One Canada.
  • Wave Mechanics: FT Partners Report Highlights Trends Driving Rise of Insurtech

Around the web

  • Fiserv inks deal with FCTI to provide transaction processing for 8,000 ATM in 7-Eleven convenience stores in U.S. Video of Fiserv’s recent live demo from FinovateFall is now available.
  • NCR launches cloud-based developer portal.
  • ACI Worldwide and Vocalink partner to provide real-time payments solution.
  • Let’s Talk Payments interviews Linkable Networks founder and CEO, Tom Burgess.
  • Visions FCU signs with MX for money management app.
  • Zopa releases its first-ever rating of a batch of securitized Zopa loans.
  • Sezzle Wins $10,000 from Securian in MN Cup Startup Competition.
  • Aurionpro joins Temenos MarketPlace.
  • OnDeck launches marketing campaign featuring Shark Tank judge Barbara Corcoran.
  • RightCapital launches Leads, a tool to help financial advisors turn leads into clients.

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.