Finovate Alumni News

On Finovate.com

  • Token Forges Strategic Partnership with Envestnet | Yodlee.

Around the web

  • ACI Worldwide to provide “technology backbone” for real-time payments platform designed by Payments Network Malaysia.
  • NCR partners with Samsung to launch new all-in-one POS commerce station, NCR Silver Quantum.
  • Grab chooses TransferTo to deliver real-time digital payments to its drivers in Southeast Asia.
  • Meniga wins London Design Awards for brand design experience.
  • PayPal’s TIO Networks suspends operations to protect TIO’s customers.
  • Kinecta FCU to Offer Mortgage Harmony’s CU RateReset products.
  • App Informers lists Credit Karma and Credit Sesame in list of top 5 Identity Monitoring Apps for 2017.

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.

Credit Sesame Raises More than $42 Million, Unveils Robo Advisor for Credit

Credit service and financial wellness company Credit Sesame has raised more than $42 million in funding. Featuring new and existing investors such as Menlo Ventures, Inventus Capital, Globespan Capital, IA Capital, and SF Capital, the combined equity ($26.6 million) and venture debt ($15.5 million) financing will take Credit Sesame’s total capital to more than $77 million. The funding will help speed Credit Sesame’s growth, enable the company to hire more than 100 new employees over the next 12 months, and “advance its analytics, robo advisor and machine learning technologies.”

That’s right. Robo advisor. In addition to the company’s funding announcement, Credit Sesame founder and CEO Adrian Nazari introduced new robo advisory technology that enables consumers to automate the management of their credit and loans. Credit Sesame sees this as “addressing the liability side of the balance sheet” rather than the asset side typically watched over by most robo advisors.

Credit Sesame CEO and founder Adrian Nazari demonstrating the company’s credit-based PFM solution at FinovateSpring 2015.

“While many companies have spent the last few years catching up to our free credit score offering for consumers, Credit Sesame has been developing and proving robo advisor technology.” Nazari said. He added, “this technology translates consumer financial and credit information into simple and actionable steps that consumers can easily understand and utilize to improve their financial profile and leverage their credit.”

Founded in 2010 and headquartered in Mountain View, California, Credit Sesame demonstrated its credit-based PFM for a co-branded environment at FinovateSpring 2015. With more than 12 million members, Credit Sesame’s mobile and online solutions give consumers free access to their credit profile, including their credit score, credit report grades and monitoring, as well as interactive tools and tips for securing better borrowing options such as low or no-balance credit card offers and debt consolidation loans.

Credit Sesame has achieved 100% annual growth for the past three years, reaching profitability earlier this year. This spring, the company launched a new service to pre-qualify members for credit cards. In February, Nazari was named to the Entrepreneur’s List of Most Inspirational Leaders in 2017, one month after earning similar recognition from Inc.com.

Finovate Alumni News

On Finovate.com

  • AutoGravity Partners with Global Lending Services.
  • SelfScore Rebrands as Deserve, Closes on $12 Million in Funding.
  • Credit Sesame Raises More than $42 Million, Unveils Robo Advisor for Credit.

Around the web

  • Avoka extends strategic partnership with Mitek for digital identity verification solutions.
  • Commercial loan origination, CRM are among the new features in Baker Hill NextGen solution.
  • OnDeck partners with Ingo Money and Visa to provide loans to SMEs via debit card.
  • Westpac NZ to transition to real-time banking platform from ACI Worldwide.
  • Regions Bank to add P2P payment and account-to-account transfer solutions from Fiserv.
  • iSignthis announces new agreement with Omnislots.com operator, Dialinvest.
  • Payment Ninja to launch in the U.S. in November.
  • ThreatMetrix and ID.me partner to deliver ID verification for government and commercial digital services
  • Russian bank Lipetskcombank implements new mobile banking app built on Tranzware Mobile Banking from Compass Plus.
  • Accenture and nCino expand alliance to accelerate digital transformation within top U.S. banks
  • Symbiont joins Wall Street Blockchain Alliance as corporate member.
  • Envestnet | Yodlee to integrate risk insight solutions with Fannie Mae’s Ddsktop underwriter validation Service.

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.

Finovate Alumni News

On Finovate.com

  • Worldline Buys First Data Baltics for $85 Million.
  • Symbiont Announces Strategic Investment from Medici Ventures.

Around the web

  • Benzinga features SuperMoney, LendUp, Credit Sesame, Capsilon, & BeSmartee as companies revolutionizing lending.
  • HuffPost features Jeana Deninger, ‎Chief Operating Officer at CoverHound.
  • BellaDati announces BellaDati IoT Cloud for the exploration of real-time data from Cross Domain Development Kit XDK of Bosch Connected Devices.
  • Symphony Software Foundation now counts more than 50 projects, 100+ contributors, 4 working groups, & 25 members.
  • Roostify helps First Cal Cut Loan Process to 15 Days.

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.

Finovate Alumni News

On Finovate.com

  • Barclaycard Brings the Ka-Ching to Bling in New Wearables Payment Partnerships. See Barclaycard at FinDEVr in New York this month.
  • Excited to see Finicity at FinDEVr New York on March 21 and 22. Check out our interview with Co-Founder & EVP Nick Thomas.
  • Excited to see NuCypher at FinDEVr New York on March 21 and 22. Check out our interview with CEO & Co-Founder MacLane Wilkison.

On FinDEVr.com

  • Check out this week’s FinDEVr APIntelligence.

Around the web

  • Arxan Technologies completes the Federal Information Processing Standard (FIPS) 140-2 validation process from the National Institute of Standards and Technology (NIST).
  • Credit Sesame launches new service that pre-qualifies members for credit cards.
  • Sisense and Narrative Science partner to Merge BI and AI.

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.

Why PropTech and MortgageTech Are the Future of Fintech

If this is the first time you’ve heard the term proptech, it won’t be the last. Proptech (also known as real estate tech or REtech) and its subset mortgagetech have been around since 2014. Here’s why 2017 is poised to place proptech among the ranks of wealthtech, insurtech, regtech.

This year has already been favorable to mortgagetech and proptech companies. SoFi, for example, is about to close a massive, $500 million round, its competitor LendingHome topped $1 billion in mortgage loan originations last year, and RealtyShares has seen over $300 million raised on its platform. According to CB Insights, since 2012 the real estate technology sector has closed 817 deals worth $6.4 billion. Of that amount, $2.6 billion closed in 2016 alone, which represents a 40% increase from that sector’s funding in 2015.

In the U.S., there are a handful of reasons 2017 will be favorable to real estate. Interest rates are projected to rise for the second time, millennials are starting to buy their first homes, and investors are looking to diversify out of the volatile stock market. On top of all of this, regulations are slated to loosen under the Trump administration, and changing in regulation brings opportunities for innovation.

Players

The broader category of proptech can be broken down into four basic segments.

1- Mortgagetech
These are mostly B2B companies specifically focused on facilitating part of all of the mortgage application process. They do not lend or service the loan.

2- Digital mortgage lending companies
These online lenders facilitate the mortgage application process and service the loan.

3- Real estate investment tech
Companies in this category are focused on the investment aspect of commercial and residential real estate.

4- Pure property plays
These don’t have a fintech angle but play a role in the broader proptech industry. Since this category is out of scope for this blog, this list only encompasses a fraction of companies in this category. Check out CB Insights’ coverage of commercial real estate technology for more.

What’s ahead in 2017

  • Expect to see more mortgagetech-bank partnerships along the lines of Roostify’s recent deal with JP Morgan Chase. As banks try to gain a competitive edge for market share, more established banks will need to leverage mortgagetech offerings.
  • We’ll see more niche alt-lending solutions such as SoFi that facilitate the application process and save borrowers on closing costs.
  • Expect to see more players offering real estate investment technology, coupled with some consolidation in real estate crowdfunding companies.
  • Outside of fintech, we’ll see more platforms aimed at cutting out the middle person, the realtor; and more business models such as Knock and GoldenKey that make the selling process easier.

You don’t have to take my word for it

We posed the question, How do you see proptech/ mortgagetech growing in 2017? to these Finovate alums working in the space. Here’s how they responded:

BhatRajesh Bhat, CEO and cofounder of Roostify:

“We expect to see further widescale adoption of digital mortgage solutions – to the point where one should expect it to be table stakes in 2018. We should also expect to see more players emerge in the space as investors see larger market adoption and validation.”

 

Screen Shot 2017-02-23 at 9.52.53 AMLinda Schicktanz, Chief Advisor of CK Mack*:

“If there is one area ripe for fintech innovation, it’s real estate investing. Why put 30% down just to gain massive management headaches when you can now invest in rental cashflow online with very similar returns? Fintech and Real Estate are like peanut butter and jelly, they just go together!”

Screen Shot 2017-02-23 at 8.30.31 AMNima Ghamsari, cofounder and CEO at Blend:

“There is going to be an explosion in the use of data driving the mortgage process in 2017. Both Freddie Mac and Fannie Mae have announced their data initiatives toward the end of 2016, and lenders are starting to push consumer financial data aggregation into the core components of their customer experiences. This ties in nicely to the industry-wide push forward to a more digital, end-to-end process that started in 2016.”

Screen Shot 2017-02-24 at 4.07.54 PMJilliene Helman, CEO at RealtyMogul

“The impact of digital technology on the real estate industry and mortgage technology is still in its infancy, but I see both less experienced and more sophisticated investors, alike, moving toward a process that takes place entirely online. With over $250 million of capital invested and 100,000 registered investors on the platform, RealtyMogul.com is a testament to this change. The more that technology can offer real estate borrowers and lenders transparency, as well as the efficiency of process and convenience, the faster both sides will adapt.”


*Full disclosure: I’m related to Linda Schicktanz. Yup– she’s my mom.

Where Are They Now? FinovateSpring Alums Raise More than $326 Million in a Year

FS2015_overheadview

Last week we took a look at what the alums of FinovateSpring 2015 have been up to in the year since they demoed on the Finovate stage. Today, we’re focusing on the funding.

All $326 million of it.

Of the 72 companies that demoed at FinovateSpring 2015 in San Jose last year, 21 of them had raised capital within a year. Kabbage’s raise of $135 million certainly stands out. But the $25 million investment picked up by itBit in May of last year, as well as the $15 million raised by Trulioo and the $12 million raised by Moven were also major contributors to a strong fundraising performance from the Class of FinovateSpring 2015. And this doesn’t even include companies such as Yodlee, which was acquired by Envestnet for $660 million, or Aurora Financial Systems, bought by fellow Finovate alum, Finicity, for an undisclosed sum.

March 2016

January 2016

Dec 2015

October 2015

September 2015

August 2015

  • [M&A] Holy Yodlee! Envestnet to Buy Yodlee for $660 Million – video

July 2015

June 2015

May 2015

——-

FinovateSpring 2016 is less than a month away. Pick up your tickets today and save your spot at our upcoming spring conference in San Jose, California.

 

Credit Sesame Launches SnapLoan, The Amazon One-Click for Consumer Loans

CreditSesameHomepage

Credit and loan management tool site Credit Sesame has introduced SnapLoan, a platform that helps qualified consumers quickly obtain a loan. The California-based company is comparing the new offering to Amazon’s One-Click purchase option.

SnapLoan ties into qualified users’ credit and financial profiles in real time to streamline the loan application process for potential borrowers. Founder and CEO Adrian Nazari says, “We are making it easy for our users to get the most relevant and accurate loan offers and approvals from marketplace lenders in a snap, with the click of a few buttons.”

CreditSesameSnapLoanapp

Credit Sesame is piloting SnapLoan via a partnership with BorrowersFirst, an online lender powered by Cross River Bank that offers personal loans ranging from $2,500 to $35,000. The product launches in beta today, and there is no word yet when it will be available to Credit Sesame’s 8 million users.

Founded in 2010, Credit Sesame debuted its newest PFM features at FinovateSpring 2015.

Finovate Alumni News

On Finovate.com

  • “Aire Receives Funding from Accion Venture Lab”
  • “Refund.me Brings its Air Travel Compensation Service to Business”
  • “Credit Sesame Launches SnapLoan, The Amazon One-Click for Consumer Loans”

On FinDEVr.com

  • “Envestnet | Yodlee Unveils its Risk Insight API”

Around the web

  • Global Debt Registry announces plans to bring loan-validation technology to marketplace lending industry.
  • CryptoCoinNews takes a look at recent funding for Stratumn, a blockchain development platform.
  • P2Binvestor teams up with independent adviser, MW Eaglewood Americas.
  • Locavesting profiles StreetShares, which in mid-May will begin lending to small businesses.
  • Crowdfund Insider interviews Cloud Lending CEO Snehal Fulzele.
  • Cachet Financial and Ingo Money renew partnership.
  • Ripple adds former HSBC payments executive and SWIFT board member, Marcus Treacher, as its new global head of strategic accounts.
  • LendKey announces it has underwritten, originated, and deployed more than $1 billion in capital to borrowers.

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.

Finovate Alumni News

On Finovate.com

  • Check out this week’s “FinDEVr APIntelligence”
  • “Finovate Debuts: ArcBit Introduces its Secure, Easy-to-Use Bitcoin Wallet”
  • “FIS Closes SunGuard Acquisition to the Tune of $5.1 Billion”

Around the web

  • CSI globalVCard launches partnership program for banks for its electronic payments program.
  • SavingAdvice.com highlights how Personal Capital can help you gain control of your finances.
  • Credit Sesame features millennial-friendly robo-adviser investment-platforms: Betterment, FutureAdvisor, SigFig, Blooom.
  • Quisk selected as a 2015 Red Herring 100 Global Winner.
  • TSYS signs payments agreement with Atlanticus to continue support of loan-origination platform, Fortiva.
  • Digital Insight unveils Business Banking, an SaaS solution to enable FIs to offer personalized banking experiences to business customers.
  • Q2 opens new offices in Lincoln, Nebraska, to accommodate growth, acquisition of Centrix Solutions.
  • Xignite Market Data APIs now available on SoundHound’s Houndify sound recognition and search-technology platform.
  • Let’s Talk Payments features Trustev, Trulioo, and Trunomi in its look at “RegTech” startups in Europe and the U.S.
  • Temenos wins “Best Provider of Front-to-Back Wealth Suite Solutions” at Asian Private Banker’s Technology Awards 2015.
  • Avalara partners with open-source billing and payments platform, Kill Bill.
  • Silicon Prairie News interviews Daniel Carnes, CSO at Prairie Cloudware, on the future of cybersecurity.

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