Finovate Alumni News

On Finovate.com

  • Market Earlybird Helps Market Professionals Identify Trading Opportunities First.
  • Additiv Lands $25.5 Million Investment
  • Algomi Acquires AllianceBernstein’s ALFA’s Fixed Income Liquidity and Analytics Tool

Around the web

  • Kony partners with KMC controls to bridge mobile apps and IoT
  • Clover now enables Android Pay’s Smart Tap
  • TickSmith releases a Python API for the new generation of financial data scientists
  • ID.me wins Trailblazer Award at 1st Annual K(NO)W Nodes Awards Show
  • Finextra: Google and PayPal partner for mobile shopping by fingerprint
  • ProfitStars introduces Automated Website Governance Solution
  • FinovateAsia Best of Show winner Finn.ai earns spot in Payments Canada’s pitch competition, Dragon’s Den.
  • OutSystems adds Tom Schodort and Bill Macaitis to its board of directors.

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.

Fintech Trending: Look Who’s Chasing Venmo, Student Loan Servicing Falls Short

VenmoImage

A look at the trending topics of the past two weeks, co-authored by Finovate’s research analysts David Penn and Julie Schicktanz.

Payments

Venmo competition heats up
We’ve lately noticed more P2P payment app competitors trickle in. They have Braintree-owned Venmo’s (FD2016; F2013) millennial-focused social components stamped all over them:

  1. Founded by former N26 employees, Cookies launched this week to offer Germany-based users a free P2P payment solution. The simple UI has a messaging platform for senders and recipients to engage with, and it allows people to include emojis with their payments (Cookies calls them paymojis). Some paymojis have special powers, for example, a lightning bolt that allows users to send the money faster. Unlike Venmo (more like Square Cash), users do not maintain a balance on Cookies; instead, Cookies connects directly to a user’s bank account.
  2. Tilt originally began as a crowdfunding platform but launched P2P payments functionality this week. While the user interface is very Venmo-esque with emojis, gifs and a social feed, Tilt has a few differences. Aside from being based on a crowdfunding model where users pool money for weekend road trips and pizza nights, Tilt lists fundraising campaigns in its social feed and is available outside the U.S. Tilt has already launched in the U.K., Canada, and Australia.
  3. Our last Fintech Trending post described the growth of P2P payment service clearXchange, which scored Fiserv (F2016) as a distribution partner and added MasterCard Send debit cardholders to its client base. The Wall Street Journal reported this week that clearXchange is rebranding to Zelle in October to step up its competition with Venmo. While there is no word yet on UI and UX specifics such as emojis with special powers, gifs, and social feeds, there have been a few questions about the name Zelle, which Urban Dictionary defines as “a girl who is attractive and intelligent.”

New mobile payments methods are everywhere (and that’s not a good thing)

Last week, CVS joined a group of other retailers, banks, technology providers and payment services companies to launch its own mobile wallet. With the launch, the pharmacy intends to streamline the use of its rewards points with point-of-sale (POS) payments, but what it may actually be doing is adding yet another wet log to the slow-burning, mobile POS-payments fire.

The issue lies in part with low consumer interest and adoption; it’s still faster to swipe (or insert) your credit card than to take out and unlock your phone, open an app, and try to convince the cashier it is a legitimate way to pay. Also at fault is the large, fragmented number of suppliers. We’ve lost count, but here’s a partial list:

  • Apple Pay
  • Android Pay
  • Cake Pay
  • CVS Pay
  • Walmart Pay
  • MasterPass
  • Samsung Pay
  • Wells Fargo Wallet
  • Chase Pay
  • Starbucks
  • Capital One Wallet

Other news in the payments space

  • UnionPay’s mobile payments launched in Canada. The China-based payments network is the third largest in the world (following Visa and Mastercard). The launch enables Canadian cardholders to use UnionPay’s QuickPass EMV cards or app to pay at participating merchants.
  • Visa (FD2014; F2010) is in discussions with Nigerian banks to roll out mVisa, its QR code-based mobile payments service, by the end of this year. Consumers will be able to use their smartphone or feature phone to pay for goods with merchants, send domestic P2P payments, and access cash.
  • Apple expands carrier billing to Taiwan and Switzerland. The Taiwanese carrier is EasTone and while there’s no word yet on the carrier in Switzerland, it is expected to be Swisscom. This expands Apple’s carrier-billing partnerships, already operating in Germany and Russia, to four countries.

A big deal in ATMs gets a second look

Diebold (F2014) finalized its merger with German ATM maker Wincor Nixdorf last week, a deal that combined two of the largest three ATM companies. The deal closed for $1.8 billion and makes Diebold Nixdorf the world’s largest ATM company, claiming a third of the worldwide market.

Days after unveiling the newly formed entity, the ATM giant is facing an “in-depth merger investigation” from the U.K. Competition and Markets Authority. The agency said that it is concerned the deal will reduce the number of companies supplying ATMs in the U.K. The companies have until April 26, 2017, to “offer undertaking to address competition concerns.”

This further highlights the opportunity for disruption in the ATM space, a realm where companies such as Liqpay (F2013) have showed off solutions that allow cardholders to use their smartphones for a contact-less way to withdraw cash from ATMs.

Lending

Making Sense of Student Loan Debt—notwithstanding Bernie Sanders’ promises of free college tuition for all, the challenge of student loan debt isn’t going away anytime soon. Unfortunately, a recent report from the Consumer Financial Protection Bureau (CFPB) suggests that loan servicers are a part of the problem, at least when it comes to income-driven repayment plans.

As reported in PYMNTS.com, much of the problem is bureaucratic, with “delays and rejections” that can expose student borrowers to greater interest, penalties, or even lost eligibility. “Student Loan servicers continue to fall short when it comes to helping borrowers address $1.3 trillion in student debt,” CFPB Director Richard Cordray said in a statement. “It’s time servicers focus more effectively on processing applications for income-driven repayment plans properly.”

And the CPFB is focused on more than just the student loan servicers. Wells Fargo was slapped with a $3.6 million fine this week for “illegal fees … and [depriving] others of critical information needed to effectively manage their student loan accounts,” according to Cordray. Wells Fargo said that it has already made changes to the processes criticized by the CPFB in its consent order.

It’s impossible to read about student loan debt in the headlines and not think of Student Loan Genius (F2016), which made its Finovate debut this spring. The company empowers employers to help millennial workers in particular pay off their student loan debts faster. This not only helps reduce what is often an onerous debt load (especially relative to the income of the average recent college graduate), but also enables young workers to start saving better.

Development

Make Room for Dev—Google (FD2016 ; F2011) is the latest major technology company dedicating major square footage to support collaboration between “local and international developers and startups.” Writing in the Google Developers Blog, Global Lead Roy Glasberg revealed that more than 14,000 square feet at 301 Howard Street would be the home of a variety of dev-friendly events ranging from Google Developer Group meetings to Tech Talks. The new facility will also host Google’s equity-free, three-month accelerator for emerging market startups, LaunchPad Accelerator.

Earlier this summer, IBM (F2016) announced the opening of its developer space, Bluemix Garage, in New York City. The New York garage, IBM’s sixth, will be hosted by developer networking and education organization, Galvanize. In the U.K., Allied London announced a new fintech co-work space called “The Vault” that will occupy 20,000 square feet in Manchester’s business neighborhood. Meanwhile in Germany, ING-DiBa announced its sponsorship of the latest fintech hub in Frankfurt.

Meanwhile in Asia, PayPal (FD2014; F2012) announced this week the opening of an innovation lab in Singapore, its first such lab outside the U.S. The lab joins PayPal’s other Indo-Asia Pacific innovation lab in Chennai, India, and will be focused on improving productivity among SMEs in the food and beverage industry. We also learned this week that the Monetary Authority of Singapore is setting up a fintech innovation lab, Looking Glass @ MAS1 in that country.

  • “Google Developers to open a startup space in San Francisco” – Google Developers Blog
  • “IBM Opens Bluemix Garage in New York City” – Finovate
  • Allied London unveils fintech startup “Vault” in Manchester – Manchester Evening News
  • ING-DiBa backs new Frankfurt fintech hub – Finextra
  • PayPal opens Innovation Lab in Singapore for next generation fintech – Deal Street Asia
  • Singapore’s MAS gets in on the fintech innovation lab game – Tech in Asia
  • Fintech Groups Will Unite into Global Hubs – Fortune

Life in the blockchain

Swiss-based UBS announced a year ago its work on a virtual currency—Utility Settlement Coin—to facilitate faster transaction settlement. This week, UBS announced it has joined forces with Deutsche Bank, Santander, BNY Mellon, and ICAP to convince central banks to agree to a commercial launch by 2018. Competition for this digital currency include Citigroup’s Citicoin, Goldman Sachs’ SETLcoin, and a similar, yet-unnamed, offering from JPMorgan.

Finovate Alumni News

On Finovate.com

  • PrivatBank’s Partnership with InComm Initiates Launch of Prepaid Products in Ukraine
  • Obloco Beta Tests Expense Reporting Solution with Washington Trust Bank
  • SocietyOne Has Facilitated $38 Million in Personal Loans in 2016
  • PayPal Partners with Xero to Support B2B Invoice Payment

Around the web

  • Boku partners with Google to enable carrier billing as payment option on Google Play in Lithuania.
  • Ghana-based startup, Sovereign Bank, deploys T24 core-banking system from Temenos.
  • CenturyLink to host SatuitCRM and SatuitCRA software as part of new agreement.
  • Risk Ident CEO Robert Valerio appointed to European Advisory Board of the Merchant Risk Council (MRC).
  • Fortune features PayPal, MasterCard, and IBM on its list of companies that will change the world.
  • Nikkei Asian Review looks at how Japanese banks will leverage Ripple.

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.

Dashlane and Google Partner to Improve Online Security via Open YOLO

dashlane_homepage_Aug2016

Dashlane and Google have teamed up to develop an open API for app developers called Open YOLO, which stands for “You Only Login Once.” The technology makes it easier for Android apps to work with password managers.

“To stay one step ahead of the market demand,” Dashlane’s Malaika Nicholas wrote on the company blog, “Google and Dashlane are helping create a seamless, universally acceptable Android app-authentication solution to increase your online security.” Nicholas added that Dashlane’s development team opted for an open source solution because it gives users a cross-platform security option. She noted that in February, Dashlane announced support for FIDO’s Alliances Universal Second Factor (U2F) authentication standard, the first password manager to do so.
Dashlane_stage2_FEU2013

Left to right: CEO Emmanuel Schalit and Nishant Mani, VP partnerships and marketing, demonstrated Dashlane at FinovateEurope 2013 in London.

While Dashlane is pioneering the Open YOLO effort, other password managers are expected to be involved in the project, and other non-Android operating systems are to be added as well. Among those other password managers expressing interest according to reporting in TechCrunch, are 1Password, LastPass, Keeper, and Keepass. “This is an important initiative for our industry and for the state of user security,” Dashlane CEO Emmanuel Schalit said, “Collectively, we are committed to increasing user security and believe that the best way to do this is to champion open source security projects.” According to a Dashlane spokesperson, more information on the project, including technical documentation and code will be made public soon.

With more than five million users of its technology, Dashlane provides a free consumer app for use on a single device and a premium service for use on an unlimited number of devices for $39.99 a year. Founded in 2009 and headquartered in New York City, Dashlane demonstrated its technology at FinovateEurope 2013. The company launched its Spaces for Mobile solution in July and introduced its redesigned app for iPhone and iPad in June. In May, Dashlane raised $22.5 million in a round led by TransUnion that took the company’s total capital to more than $52 million. And in March, the company announced that former Fab.com executive David Lapter was joining Dashlane as its new CFO.

Founded in 1996 and headquartered in Mountain View, California, Google demonstrated its Google Advisor technology at FinovateFall 2011. The company also participated in the inaugural FinDEVr New York developers conference this spring with a presentation titled “TensorFlow Machine Learning with Financial Data on the Google Cloud Platform.”

Finovate Alumni News

On Finovate.com

  • Dashlane and Google Partner to Improve Online Security via Open YOLO
  • Prosper Closes in on $5 Billion Commitment for New Loans

Around the web

  • FIS and Arkansas Governor Asa Hutchinson extend VC FinTech Accelerator program to 2018.
  • Revolut app tops 250,000 users.
  • Narrative Science launches Solution Provider program.
  • Oprah Winfrey Network names WorthFM founder and CEO Amanda Steinberg to the inaugural Opray Winfrey Network SuperSoul 100.
  • Banking technology interviews Rivi Varghese, CEO of CustomerXPs Software.
  • American Banker: Profits, Revenue Forecast Rise at Green Dot
  • Zopa gives a rundown of its four-year history.

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.

FinDEVr APIntelligence

FinDEVrSV16-LogoV2(wdate)Our FinDEVr New York developer showcase last week was a success! FinDEVr Silicon Valley will be held October 18 & 19 in Santa Clara. Register today and save.

On FinDEVr.com

  • “Envestnet | Yodlee Unveils its Risk Insight API”
  • “Google’s Guide: New Book Explains How Google Manages its Cloud Infrastructure”

The latest from FinDEVr New York 2015 presenters

  • OutsideIQ joins fintech accelerator, Bank Innovation INV, as an API partner. See OutsideIQ at FinovateSpring in San Jose next month.
  • Vix Verify opens new offices in Atlanta, Georgia’s Transaction Alley as part of American expansion.
  • Chase launches OnDeck-powered SMB loan platform.
  • Praesidio ranks top 10 most-promising cloud-banking-solution providers of 2015.
  • API report covers Streamdata.io.
  • CryptoCoinNews takes a look at the recent funding for blockchain-development platform, Stratumn.

Alumni updates

  • “CardFlight and Miura Systems Partner to Offer EMV and NFC Mobile POS Solution to the U.S Market”
  • PayNearMe facilitates users to pay for their taxes in cash.
  • “BehavioSec, Nationwide, Unisys Team Up on Biometrics”
  • Crowdfund Insider interviews Snehal Fulzele, Cloud Lending CEO.

Stay current on daily news from the fintech developer community! Follow FinDEVr on Twitter.

Finovate Alumni News

On Finovate.com

  • “StockTwits Offers Brokerage Functionality Powered by Robinhood”
  • “Finovate Debuts: bleu Unveils its Beacon-powered, Point-of-Sale Solution”

Around the web

  • TechCrunch names Stockpile gift card on list of Awesome Gifts For Your Favorite 20-Something.
  • Prosper recognized as 24th fastest-growing company on Deloitte’s Fast 500. San Francisco Business Times places Prosper as number 3 of the Fastest Growing Companies of 2015.
  • Kashoo launches period-locking feature to lock data within prescribed timeframes.
  • Built in Colorado names Google, OnDeck, Ping Identity, Personal Capital, Xero, and PaySimple on list of top 100 tech companies in Colorado.
  • TickSmith’s TickVault platform earns the fast-growing firm an Innovators Award from FIA.
  • CenturyLink and Cogent enter into interconnection agreement.
  • RAGE Frameworks partners with Genpact, leveraging AI to automate financial processes.
  • Los Alamos National Bank chooses FIS as its new core banking provider.
  • National Bonds to deploy AML Risk Manager from Fiserv.
  • Geezeo launches its Life Infused Financial Experiences custom apps.
  • Let’s Talk Payments looks at edo Interactive and its partnership with Visa Europe.
  • Azimo extends its money-transfer service to Nigeria.
  • Fidelity Clearing and Custody teams up with EverSafe to help prevent elder financial abuse.
  • TransferTo joins forces with Continental Money to bring remittance services to Africa.

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.

Finovate Alumni News

On Finovate.com

  • Actiance Picks Up $28 Million from New and Existing Investors
  • LendKey Adds $8 Million in Venture Debt; Reaches $800 Million in Loans

Around the Web

  • SimplyTapp and Top Image Systems team up to bring HCE mobile payment technology to FIs in the Asia Pacific region.
  • Braintree integrates Android Pay into its v.zero SDK to ease merchant adoption.
  • Global Debt Registry unveils new API service to speed access to consumer-debt data and documents.
  • Avoka and NAMU earn “most innovative customer engagement” and “best customer experience” honors respectively at Citi Mobile Challenge.
  • Bible Money Matters reviews the new Betterment RetireGuide.
  • Placecast introduces its mobile data-management platform (DMP) as a stand-alone solution.
  • Nomis Solutions joins Center for Pricing and Revenue Management at Columbia University.

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.

Alumni News– January 26, 2015

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgMIT Technology Review features Feedzai and Zumigo in a discussion on mobile authentication technologies.
  • Loan origination platform LoanLaunch (formerly Common Origination Platform) now available from Fiserv.
  • Experian partners with BillGuard to boost effectiveness of its anti-fraud solution, ProtectMyID.
  • Misys unveils FusionBanking Lending.
  • American Banker takes a look at the relationship between Google and Lending Club.
  • Kabbage named one of America’s top 100 Most Promising Companies 
  • Coinbase to open the first regulated Bitcoin exchange in the U.S. 
  • Actiance announces support for IBM Verse and IBM Connections Social Cloud.
  • Credit Sesame launches iOS app with Siri integration in its credit monitoring feature.
  • Google Wallet partners with WePay to put its Instant Buy API in 200,000 e-commerce shops.
  • TransferWise Raises $58 Million in Round Led by Andreessen Horowitz.
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.

Lending Club Pilots Program to Provide Low Interest Financing to Google Partners

LendingClubLogo.png

When you combine Lending Club’s entry into small business lending last March with its investment from Google in May of 2013, add in a successful IPO last December, what do you get?

A partnership with Google Partners.

Lending Club announced yesterday it is piloting a program that will enable Google to invest its own capital in its network of 10,000 partners by purchasing their loans. This differs from Google’s other investment arms, Google Capital and Google Ventures, as the partner investment program will offer capital without taking equity.

LendingClub_homepage2.jpg

The partner network consists of resellers, consultants, and system integrators that help Google distribute its applications and services. To be eligible for funding, Google partners must be based in the U.S. and meet certain requirements. Qualifying partners can get loans of up to $600,000 for a two-year term.

This six figure amount is double the $300,000 cap that Lending Club typically places on qualified small business borrowers. Also, while the interest rate for SMBs borrowing through Lending Club starts at a fixed 5.9%, those who take out loans through Google Partners will pay only interest the first year, and pay back the loan on an amortized schedule in year two.

GooglePartners.jpg

This isn’t Lending Club’s first time working with third parties. For a little over a year now, Lending Club has extended two-fold partnerships to banks and credit unions to 1) purchase loans from Lending Club to diversify their asset portfolios and 2) offer personal loans to their banking customers. It is also working with private equity companies.

Lending Club demonstrated at the first Finovate in 2007.