Finovate Alums Earn Recognition at 2016 Wealth Management Awards

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Three Finovate alums won their respective categories at the 2016 Wealth Management Awards. Envestnet was the big winner among our alums to be honored, winning a variety of categories: 401(k) Retirement Plan Support Services, Socially Responsible Investing (SRI)/Impact Investing, TAMPs, and Rebalancing. eMoney Advisor won the Client Portals and Innovation – Platform categories, and Betterment for Business won the 401(k) Retirement Plan Support Services Technology category.

For Envestnet, the award comes just days after announcing its new collaboration with Charlotte, North Envestnet-Yodlee Logo copyCarolina’s Innovation Partners, who will use financial wellness solutions from Envestnet | Yodlee to enhance its wealth management services. President and Co-Chief Compliance Officer for Innovation Partners, Elaine Lawrence said the technology would help her firm “engage with clients according to their preferences, while also stepping in to demonstrate value as necessary.” Founded in 1999 and headquartered in Chicago (Envestnet) and Redwood City (Envestnet | Yodlee), Envestnet demonstrated its technology at FinovateFall 2016.

eMoneyAdvisor_logoBased in Conshohocken, Pennsylvania, with an office in San Diego, California eMoneyAdvisor was named one of the Best Places to Work in Philadelphia by the Philadelphia Business Journal. and one of the Best Places to Work in San Diego by the San Diego Business Journal. More than 37,000 financial professionals use the eMoney Advisor platform to manage more than $1.7 trillion in assets. At FinovateFall 2014, the company demonstrated EMX, the next generation of its eMoney Advisor platform. eMoney Advisor was founded by Edmond Walters in 2000. Edward O’Brien took the helm as CEO in 2016.

Demonstrating the Multiple Goals Feature of its platform at FinovateFall 2011, Betterment made headlines this summer when it announced it has topped $5 billion in assets under management – and added Amy Betterment_logoShapero as CFO. This spring, Betterment raised $100 million in Series E funding, taking the company’s total capital to more than $200 million and giving it a valuation of $700 million. Last month, Betterment announced a partnership with Uber that would provide fee-free, flexible retirement accounts for the company’s drivers. And in July, the roboadvisor announced that its 401(k) platform, Betterment for Business, topped 200 plan sponsors. Jon Stein is CEO.

Finovate Alumni News

On Finovate.com

  • Envestnet | Yodlee, eMoney Advisor, and Betterment Earn Recognition at 2016 Wealth Management Awards

Around the web

  • Qapital featured in a list of the “5 best productivity apps for freelancers.”
  • Let’s Talk Payments profiles Finovate Best of Show winner BanQu.
  • LendingTree named a top workplace by The Charlotte Observer.
  • Actiance Launches Safe Landing Program for Autonomy Customers.
  • Xero Announces Improved Integration with PayPal.

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.

CEO Interview: Jumio’s Stephen Stuut

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A few weeks ago we sent some questions to Jumio CEO Stephen Stuut (pictured). The digital ID verification company he runs made headlines a little over a month ago with news that it had raised $15 million from its new owner, Centana Growth Partners. A Best of Show winner from FinovateEurope 2015, Jumio fell on challenging times this spring when it filed for Chapter 11 protection. Stuut, who took the helm at Jumio in May jumio_stephenstuut2015, struck a positive tone, saying that the “restructuring process will allow us to strengthen the Company’s financial structure and extend our leadership position in ID verification.”

So far so good. In addition to its recent funding, Jumio has forged ID verification and KYC/AML partnerships with companies ranging from European online gaming operator, Tipico; to the Paris-based mobile scooter sharing network, Cityscoot; to Spanish crypto-currency specialist Krypto Commerce – all in the past few months alone. Combine this with Jumio’s summer announcement that it has completed more than 30 million ID verifications and it looks like the comeback trail for Jumio is clear.

Here’s what CEO Stuut had to say about his company, its current initiatives, and what we can expect from the Palo Alto-based security specialist in the months and years to come.


Finovate: Where will ID scanning and technologies like FaceMatch make the biggest impact in terms of replacing passwords and security codes?

Stephen Stuut: With the rise of online and mobile transactions, the growth of banking transactions like mobile account opening, money transfer, and bitcoin, and the rapid adoption of shared services, individuals are at greater risk to protect their security, and companies are further challenged to provide processes that will both build trust with their customers, while ensuring safety and security by helping reduce fraud.

Multi-factor authentication methods are missing the mark; the use of a password of security code is not a secure enough way to verify an individual is in fact the owner of the account. Passwords and codes passed via mobile devices can be hacked and there is no proof that the mobile device is in the possession of the owner.

A recent report from the National Institute of Standards and Technology referred to this process as insecure because the phone may not be in possession of the number and the SMS may be interrupted.

However, for a better approach, utilizing a combination of one or two government-issued IDs, with live photo and facial recognition, companies can ensure that an ID is valid and the person in possession of the ID is in fact the genuine ID owner.

Finovate: As much as most people hate passwords, they are a fairly embedded part of online and mobile culture. What will it take to start moving people away from passwords and toward these new technologies in significant numbers?

Stuut: To enable these markets to foster, regulations are being put in place that force compliance with KYC and address AML. These issues are driving the need for more robust ID verification models the move beyond common passwords and security code to more robust verification like ID scanning with Face Match.

Finovate: What is unique about Jumio’s approach to ID verification?

Stuut: Jumio replaces laborious and unreliable systems including knowledge-based authentication (KBA), inferred verification, and in-person verification by untrained individuals. The Jumio technology platform is industry-leading, providing computer vision technology, and face match with human ID experts. This process provides the optimal combination of accuracy and user convenience while providing know-your-customer (KYC) requirements.

In addition, Jumio is PCI Level 1 compliant and regularly conducts security audits, vulnerability scans and penetration tests to ensure compliance with security best practices and standards. To ensure our security remains PCI compliant year after year, we have a yearly on-site validation assessment by a Quality Security Assessor (QSA).

Finovate: What are the advantages to working in so many different verticals – from financial services to travel to online gaming – beyond the opportunities for growing the company?

Stuut: Our work with companies in varying verticals has led to many opportunities for Jumio, but this opportunity, most notably and arguably most importantly, has allowed us to transform a more robust solution.

As varying industries seek ID verification solutions to aid their business processes, success via these technologies may look different. For example, many of Jumio’s customers in the travel vertical use our ID verification solution to deliver great mobile customer experiences with mobile check-in. Conversely, Jumio customers in the financial services vertical utilize our solution to help verify customer identity while also improving remote account opening completion rates.

Because Jumio is focused on meeting the requirements and regulations of specific verticals, each industry benefits from the added expertise gained across these major markets. As a result both our platform and our customers have immensely benefitted. Instead of a solution that is adequately built to address needs in one industry, Jumio’s solution is built to meet the needs of varying verticals, allowing for a more robust solution.

Finovate: You’ve been on the job as CEO for Jumio for just over a year. What accomplishments in this time are you most proud of and what do you hope most to accomplish in your second year?

Stuut: Over this past year I have been exceptionally proud to work with the talented individuals across the Jumio organization. Our team of highly skilled developers and seasoned executive team have been leading the industry, delivering on our vision of the next generation of digital ID verification solutions.

The team is delivering great success and we recently closed out Q2 2016 with a greater than 65% growth in recurring revenue year-over-year, and a record 30 million transactions completed to date. Jumio’s customer base continues to expand, closing more deals than at any other time in company history, with Q2 2016 resulting in a more than 50% increase in deals year-over-year. This high momentum has been fueled by continued growth across every aspect of its business.

In addition, in August of 2016, Jumio continued its momentum, securing a $15 million round of financing from Centana Growth Partners LP and Millennium Technology Value Partners. The investment will enable us to continue to lead the digital ID verification space, aggressively expand sales and marketing, and accelerate product development and international expansion.


Check out Jumio’s Best of Show winning demonstration from FinovateEurope 2015

FinDEVr Preview: Totum Wealth

FinDEVr PreviewsFinDEVrSV16-LogoV2(wdate) 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.

Totum Wealth will unveil Totum 2.0, its latest technology that empowers a new experience for both investors: an educational questionnaire, and for advisors: bespoke portfolio construction and a proposal dashboard. Totum helps the advisor understand the client’s multidimensional risk context to have a deeper conversation and shorten the sales cycle.

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Why it’s a must-see

Given the seismic changes in wealth management from regulations, demographics and pricing compression, Totum’s robust approach to risk and unique solution is deeply rooted in user experience and customer insights. Developers can get a sense of our journey of how it developed an innovative fintech application while meeting market needs.


Check out more of today’s FinDEVr Previews:

FinDEVr Preview: ACI Worldwide

FinDEVr PreviewsFinDEVrSV16-withdate highlight companies presenting new developer tools, platforms, and integrations at FinDEVr Silicon Valley 2016, October 18 & 19. Pick up your ticket to save your spot today.

ACI Worldwide’s live demo and real-time payment integration will show how developers can use ACI’s COPYandPAY, the first SAQ-A compliant JavaScript payment-form solution, to easily add dozens of alternative payment methods and card brands to the checkout page. Plus, the company will preview the UP eCommerce Payments solution omni-channel payment capabilities.

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Why it’s a must-see

The UP eCommerce Payments solution, underpinned by an industry-leading RESTful open API, combines open payment infrastructure with the largest global payments network. As well as overcoming the technical complexities of payments integration, the flexible open platform can be leveraged by developers to build their own apps and features.


Check out more of today’s FinDEVr Previews:

FinDEVr Preview: UCX

FinDEVr PreviewsFinDEVrSV16-LogoV2(wdate) 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.

UCX is an up-and-coming spot market where enterprises and cloud service providers trade the cloud as a commodity.

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Why it’s a must-see

Enterprises are wasting billions on computing resources because they lack an understanding of their true cost of consumption and can’t accurately compare CSPs. UCX provides a centralized and transparent exchange where participants utilize a standard unit of measure to make apples-to-apples comparisons, and the market competes for your business.


Check out more of today’s FinDEVr Previews:

WealthForge To Raise $2.5 Million in New Convertible Note Offering

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WealthForge will raise $2.5 million in new capital using the same convertible note strategy the company used last year to raise $2.2 million. Bill Robbins, who took the helm as CEO at WealthForge last December, said the funding will help WealthForge build its core business, as well as make investments in “sales, marketing, and support.” Characterizing the initial response to the convertible note offering as “extremely positive,” Robbins expects to complete the fundraising by the end of the year.

WealthForge has raised more than $5 million in total equity funding, and includes CIT GAP Funds, NRV, and SenaHill Partners among its investors. The current convertible note investment is structured as debt that can be converted into equity. Reporting on WealthForge’s SEC filing, Richmond Biz Sense noted that WealthForge is looking for minimum investments of $25,000 from outside investors.

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Pictured: C0-founder and Chief Strategy Officer Mat Dellorso demonstrating the WealthForge Network at FinovateSpring 2016.

A pioneer in bringing financial technology to the process of raising private capital, WealthForge connects issuers, investors, and their intermediaries on an online platform that provides a new level of transparency and efficiency for all parties. Issuers can present their offerings to registered intermediaries in an online showcase, while giving intermediaries the ability to provide investors with a branded investment experience. The company’s innovations include their “invest button technology” that enables anyone seeking to raise private capital to allow their investors to invest with a simple click, as well as the Dynamic Tombstones of its WealthForge Network, that make it easy for anyone raising capital to market and advertise their offerings online in a safe and compliant way.

Founded in 2009 and headquartered in Richmond, Virginia, WealthForge demonstrated the WealthForge Network at FinovateSpring 2016. More than $240 million and more than 5,500 investments have been transacted on its platform. WealthForge is a UBS Future of Finance Challenge winner, a runner-up in the Benzinga Fintech Awards for 2016, and was named the fourth most active broker-dealer in U.S. private placements in 2015.

Sberbank Inks Partnership with Hyperledger to Tap Into the Blockchain

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Originally founded in 1841, financial services organization Sberbank has seen a lot of change over the 175 years it’s been in business. And this week the bank is embracing more change by taking a leap into the blockchain.

The Russian bank, along with Hyperledger’s founding organization, the Linux Foundation, have signed a deal for the bank to participate in the Hyperledger Project. A group of Sberbank’s 9,000 developers have formed a dedicated team to work with the non-profit blockchain initiative. The project was created to advance blockchain technology by identifying aspects for a cross-industry standard that will change the way transactions are conducted.

Lev Khasis, first deputy chairman of Sberbank’s executive board, anticipates the open source blockchain platform will help Sberbank to “access international expertise and cutting-edge blockchain developments.” Khasis also explained that the bank’s use of the blockchain will span multiple use cases, including real estate, and that it already has plans to go live with one use case in the next 12 months.

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This isn’t the first time we’ve seen Sberbank’s innovative side. In the middle of the Pokemon Go epidemic this summer, the bank, which is the biggest life insurance provider in Russia, announced it will offer free accident insurance for distracted Pokemon Go players. Sberbank also set up a mobile virtual network operator subsidiary to provide telco services to customers.

At FinovateSpring 2016 Sberbank launched Sberbank Messenger to expand beyond what customers typically expect their bank to offer. The messenger platform, which is built on top of the Sberbank digital ecosystem, enables consumers to chat and seamlessly send money to one another. It also allows businesses to interact with consumers using both human respondents and chatbots, and enables consumers to purchase goods and services without leaving the chat dialogue.

The bank has 270,000 employees and serves more than 110 million clients, equivalent to 70% of Russia’s population, through 17,000 branches. At the Global Finance Awards for Central and Eastern Europe, Sberbank won four categories, Best in Mobile Banking, Best Bill Payment & Presentment, and Best SMS/Text Banking.

Finovate Alumni News

On Finovate.com

  • WealthForge To Raise $2.5 Million in New Convertible Note Offering.

Around the web

  • Green Dot unveils Visa credit card for thin-file consumers.
  • First National Bank of Pennsylvania upgrades its mobile banking and payments platform from Fiserv to enable debit card management.
  • Martech Advisor interviews Radius CEO and co-founder Darian Shirazi.
  • PYMNTS.com talks with Hyperwallet VP Tomas Likar about the challenge of payments in the on-demand workforce. See Hyperwallet at FinDEVr Silicon Valley 2016, October 18 & 19.
  • Radius announces the Radius Customer Exchange (RCX), a solution to advance Co-Marketing for B2B Marketers.

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.

Mobile UI: Capital One Wallet Reverts 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 your eyes go 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 September 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).
(Update 29 Sep: A reader informed me many banks are ditching the hamburger menu in light of Apple’s design advice here, here and here.)

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 to 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 list of 100+ best-designed products or apps in the October issue. The other was RobinHood, the simple, mobile stock-trading app.