Finovate Alumni News

On Finovate.com

  • Blooom Surpasses $1 Billion in Assets Under Management.

Around the web

  • Yelp Partners with TrueAccord to Deliver Digital Collections and Streamline Data Loop for Customer Engagement.
  • Lending Club Closes Second Self-Sponsored Securitization to Further Expand Investor Access.
  • Finovera and Payveris partner to launch Payveris BillManager.
  • Signifyd Guarantees Fraud Protection for Magento Commerce Merchants.

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

  • Expensfy Brings Auto Expensing to Lyft Business Riders.
  • Ephesoft Earns $15 Million Investment from Mercato Partners.
  • Summit View: What Drives Innovation in Regtech and Insurtech?

Around the web

  • LendingClub expands partnership with Opportunity Fund to help entrepreneurs access capital.
  • Gene Lockhart appointed Chairman of DemystData.
  • BioCatch receives patent for detecting the presence of remote access tools.
  • eToro launches Crypto CopyFund that includes top cryptocurrencies.
  • Segmint partners with IBM to enhance Financial Institutions’ data ACI Worldwide expands in Romania
  • FICO extends cybersecurity score to rate 4th party risks.
  • BrightFunds and Roostify named to Forbes Cloud 100.
  • GreenKey Technologies partners with Red Box Recorders to launch trading voice collaboration and compliance recording solution.
  • American National Bank selects Jack Henry Banking’s SilverLake System.
  • Hip Pocket graduates from Points of Light Civic Accelerator.
  • Financial Resources Federal Credit Union Teams with Roostify to Create Better Online Mortgage Experience.
  • Santander partners with supply chain finance startup Tradeshift.
  • Bancpass issued patent for its mobile payment technology.

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

  • Daon Adds EyePrint ID to IdentityX Platform Courtesy of New Partnership with EyeVerify.
  • Advisor Software Launches Myers-Briggs-Like Investment Risk Assessment Tool.

Around the web

  • American Banker covers Lending Club’s first securitization
  • InComm honored with two Best in Category awards at the 2017 Pay Awards.
  • Bankless Times features Arroweye’s targeted marketing campaigns.
  • Actiance announces Compliance Integration for Cisco Spark.
  • Currencycloud and Hyundai Card partner to launch Korea’s first mobile remittance service provided by a credit company.
  • Bazaarvoice adds 170 new jobs.
  • nCino expands Credit Analysis Capabilities to Give Financial Institutions’ Underwriting a Boost.

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

  • Finovate Debuts: unblu Delivers an In-Person Customer Experience Online.
  • Check out our latest Sneak Peeks of upcoming FinovateSpring demos from Newchip, IBM Trusteer, Divy, CallVU, Finicity, GoodData, & NCR Corporation.
  • Narrative Science Raises $11 Million Series E.

Around the web

  • MaxMyInterest members gain access to increased FDIC insurance and competitive yields on cash balances courtesy of new partnership with UFB Direct.
  • Bahrain-based Bank ABC goes live with omni-channel digital banking service using Backbase’s platform.
  • Revolut joins forces with UK online mortgage broker, Trussle, enabling prospective homebuyers to begin the application process on mobile phones.
  • PayPal teams with Android to launch a new way to pay.
  • Lending Club launches mobile app for investors.
  • Handpoint launches analytics dashboard.
  • ProfitStars and Tyfone partner to offer digital banking and billpay solution.

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 Favorites

Alt lending

  • On Deck Capital (F12), Kabbage (F15), and CAN Capital (F13) agree to disclose SMB loan pricing.
  • Lending Club (F09) partners with MileagePlus to offer borrowers and investors a way to earn award miles when they borrow or invest.
  • American Banker: Bizfi (F15) Hires Former Lending Club Exec as New CEO.

Fintech in Asia

  • Let’s Talk Payments projects AsiaPac as a clear winner in revenue growth in its fintech outlook for 2017.
  • Invest HK launches Hong Kong Fintech Week 7-11 Nov 2016 and features FinovateAsia 2016 on Tuesday, 8 Nov.
  • HSBC collaborates with Hong Kong Applied Science and Technology Research Institute Company to launch fintech R&D lab.
  • Ant Financial, which acquired Finovate Best of Show winner EyeVerify (F16) this year, invests in Thai mobile money innovator, Ascend. See EyeVerify at FinovateAsia this week in Hong Kong.
  • Shanghai-based China Foreign Exchange Trade System (CFETS) joins R3 consortium.
  • SBI Ripple Asia and Japan-based SBI Holdings introduce blockchain-oriented consortium of 42 Japanese banks and financial services institutions.
  • Fintech investment firm Senjo Group opens new global headquarters in Singapore.
  • Malaysia to expand funding options for SMEs with registration of xis’s new P2P platform operators scheduled to go live in 2017.

H2 Ventures and KPMG Unveil 2016 Fintech 100

h2_kpmg_2016fintech100

H2 Ventures and KPMG have released their Fintech 100 roster for 2016. Divided equally between 50 “industry leaders” and 50 “emerging stars,” the roster features 17 Finovate/FinDEVr alums in the first category, and 10 in the second. Calling its roster a “celebration” of the most compelling innovators in this “bold new space,” the H2 Ventures/KPMG 2016 Fintech 100 covers a variety of different shades of fintech:

  • Lending (32 companies)
  • Payments (18 companies)
  • Insurance (12 companies)
  • RegTech (9 companies)
  • Data & analytics (7 companies)
  • Wealth management (6 companies)
  • Blockchain (5 companies)
  • Digital currency (5 companies)
  • Capital markets (3 companies)
  • Crowdfunding (2 companies)
  • Accounting (1 company)

And here is a look at how Finovate/FinDEVr alums fared. Earning recognition among the companies in the Leading 50 group are:

Also noteworthy in the Leading 50 are Ant Financial, which acquired Best of Show-winning EyeVerify in September 2016, and Avant, which acquired Finovate alum ReadyForZero in the spring of 2015.

Additionally, Finovate/FinDEVr alums earning spots in the Fintech 100’s 50 Emerging Stars roster were:

The H2 Ventures/KPMG report includes a geographic breakdown of the 2016 Fintech 100, as well as a set of key takeaways such as increased geographic diversification, the return of lending, the continued ascent of Insurtech, and the appearance of RegTech. The report also notes that China now has four out of the top five companies in the report’s top 10, and eight companies in the top 50. The report says funding for fintech “continues to rise,” and its authors cite more than $14 billion in capital was raised by the Fintech 100 in the past year.

Lending Club Launches Car Loan Refinance Product

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U.S. P2P lending giant Lending Club has been offering car buyers an alternative borrowing experience since it launched ten years ago. Today, the company announced it is bringing that same transparent experience to the auto refinancing industry.

In its press release, the company cited data from the Center for Responsible Lending, which states that consumers pay as much as $25 billion in interest payments every year due to “dealer markup” of their interest rate. Lending Club’s new Auto Refinancing product offers a solution that gives qualified borrowers a more affordable monthly payment and interest rate.

The California-based company, which already offers credit card debt refinancing, hopes to tap into the $1 trillion auto loan market. Consumers can apply online with no hard credit inquiry and compare refinancing offers against their existing auto loan. Lending Club will pilot Auto Refinancing to California residents with FICO scores above 640, but plans to expand geographically and to people with lower FICO scores.

screen-shot-2016-10-25-at-11-19-13-am

At launch, the company is not using its marketplace lending model to fund the auto debt; instead, the company itself will buy the debt. However, according to Lending Club CEO Scott Sanborn, the leverage of the company’s balance sheet is only temporary and will be immaterial.

Stakeholders seem to be responding well to today’s news. Lending Club’s stock is up 1.64% to $4.95, still below the company’s $15 IPO price. Lending Club’ stock dipped in May after its then CEO Renaud Laplanche stepped down amid accusations of loan-documentation errors.

Founded in 2006, Lending Club demoed at FinovateSpring 2009 and at the inaugural Finovate in 2007.

Finovate Alumni News

On Finovate.com

  • Lendio Closes $20 Million Funding Round
  • Lending Club Launches Car Loan Refinancing Product
  • Check out today’s sneak peeks of upcoming FinovateAsia demos:

Around the web

  • AdviceRobo reaches 900k credit scores
  • Bill.com partners with Intuit to power end-to-end accounts payable within QuickBooks Online
  • Actiance appoints Cynthia Crossland as CMO
  • Entrepreneur Magazine names Cardlytics One of the Best Entrepreneurial Companies in America
  • American Banker: Bizfi Hires Former Lending Club Exec as New CEO
  • Intuit expands partnership with PayPal to provide QuickBooks’ Online customers with a new way of accepting payments via PayPal
  • Farm Credit Services of America picks DNA from Fiserv to support agricultural lending
  • Extended partnership makes Yodlee’s data aggregation available via Backbase’s Open Banking Marketplace
  • Chain launches open source edition of its distributed ledger, Chain Core Developer Edition
  • Avoka earns a pair of “XCelent Awards” for service and breadth of functionality from Celent
  • Trulioo announced that its GlobalGateway platform now reaches 60 countries
  • Hyperwallet announces support for real-time, push-to-card payments solution, Visa Direct

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

  • Jumio Adds Biometric Facial Recognition to Netverify
  • Full Envestnet | Yodlee Integration Gives Advisers Big-picture View of Client Finances

Around the web

  • Modo to give the Bank of America access to its COIN Operated Digital Payments Hub.
  • Lending Club partners with MileagePlus to offer borrowers and investors a way to earn award miles when they borrow or invest.
  • On Deck Capital, Kabbage, and CAN Capital agree to disclose SMB loan pricing
  • Expensify launches direct integration with Zenefits.
  • Actiance now aids in compliance for Workplace by Facebook
  • Check out the results of the 20-month pilot Filene conducted with Larky.
  • ProfitStars adds Financial Performance Suite Customer Profitability and Pricing module to the Independent Community Bankers of America.

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: Alt-Lending Woes, Asia Grows and Everbank Exits

A look at the trending topics of the past two weeks.

Trending highest: No Lush Life for Alt Lenders

LushLIfe_Coltrane_albumcoverIf unanimously positive perceptions are the hallmark of a bubble, then rest assured that the alt-lending market has moved past that stage. For every headline-grabbing C-level departure at Lending Club (F09)—CEO Renaud Laplanche stepping down in June, CFO Carrie Dolan announcing her resignation in August—there are successes: Prosper (F09) revealed its plan to sell $5 billion in loans to a group of private investors over the next two years; small business lender OnDeck (F12) surpassed earnings expectations despite its second consecutive quarterly loss and reported year-over-year quarterly revenue gains, as well as a year-over-year increase in loans under management of 47%.

So if there’s no bubble in the alt-lending part of the fintech universe, should we fear a bust? Diverging fortunes among these companies is a good sign. The more the fates of alternative lenders are linked to the decisions of individual corporate leaders, their business plans, and their customers rather than investing trends among venture capitalists (or hedge funds in the case of alt lenders gone public), the better. Looking at the P2P lending market in the U.K., LendInvest CEO Christian Faes told Business Insider, “Over the next few years, the businesses that can prove they can make a profit will be the ones [still] around in another ten years, making a lasting impact on finance.” In other words, just like any other business.

For Lending Club, the challenge is diversifying away from “fickle funding sources.” In addition to Prosper’s $5 billion move, Social Finance went so far as to launch a hedge fund, the $15 million SoFi Credit Opportunities Fund, to purchase its loans as well as those of its competitors.

  • OnDeck Loan Originations (And Loan Loss Provisions) Soar – PYMNTS.com
  • OnDeck Defends Strategy After $17.9 Million Loss – American Banker
  • Online Lenders Have a Tough Job Ahead – Wall Street Journal
  • The U.K.’s historically low interest rate could benefit alternative lenders – Business Insider
  • Lending Club’s latest results tell us a lot about the online credit business model – FT Alphaville

Other trending topics

Fintech Advances in Asia
While investors have been bullish on the tech scene in Asia for some time, a slew of new reports appeared this month. TechCrunch recently reported that in 2015 and the first half of 2016, fintech accounted for 21% of all VC funding in Southeast Asia. In a recent blog post, Trulioo (F15) said that fintech startups in Asia garnered $4.5 billion in 2015, triple what European fintech firms received during the same period. Recent developments include:

It’s no coincidence that Finovate is returning to Asia now to bring the innovators together in one place. Join us November 8, 2017, in Hong Kong for FinovateAsia 2016 as we showcase the latest and greatest.

Blockchain Developer, UNICEF Wants YOU!
The United Nations Children’s Emergency Fund is looking for a developer interested in using blockchain technology to help “solve the problems of the developing world.” Interested parties can find out more about the position here. And if the combination of blockchain and the developing world sounds familiar, it may be because you’re thinking of recent Finovate Best of Show winner BanQu (F16) which has developed a blockchain-based identity platform that promotes financial inclusion and empowerment among the underbanked, including refugee populations.

Hello, It’s Me: Voice Auth Comes to Barclays
Barclays adds instant voice authentication for all 12 million retail customers, ending 30 years of maneuvering through tedious telephone prompts and redundant authentication questions. – Bank Innovations

Everbank’s Awesome Exit
1990s digital banking pioneer Everbank exits for $2.5 billion in sale to TIAA. After PayPal (F12), this is the most successful fintech company to come out of the original 1990s dot-com era. – PYMNTS.com

Mastercard on the Move
Early Warning’s clearXchange saw some growth as of late. Mastercard, which announced this week that its Mastercard Send U.S. debit cardholders can send and receive money through the clearXchange network. Fiserv (F16) will also become a distribution partner for clearXchange, leveraging the partnership to provide a turnkey solution for banks.

Speaking of Mastercard, the company is looking at the newly announced partnership between PayPal and Visa (FD14), with an eye toward striking a similar deal. Finextra talked with Mastercard CEO Singh Banga who said it will be “important for Mastercard to provide something in addition to what Visa’s offered” as Mastercard “doesn’t have as much to offer PayPal” as Visa did because it has fewer consumers.

Azimo Goes Social
London-based Azimo (F13) took a step toward facilitating P2P payments by launching money transfers via Facebook Messenger. Interestingly, the transfer is initiated within the Azimo app (via Facebook integration) and completed in Facebook Messenger.

Insurance for Everything
Insurance startup investors are betting big that the smartphone platform allows a new breed of insurance products to flourish, so-called insurance on demand. The classic example is an alert when arriving at the airport asking if you would like to buy travel insurance. But the bigger market automobile/motorcycle policies are offering coverage only when you are using the vehicle. Our Insurance for Everything example of the week? On-demand insurance for your drone courtesy of Verifly. – Techcrunch

Also keeping our eyes on …

  • On August 2, 2016, Bitcoin dropped 20% after $70M worth of bitcoin (around 12,000 BTC) was stolen from Bitfinex exchange. The company is now offering a reward of up to $3.6 million for the recovery of the digital currency. Bitfinex said it has taken “significant steps” to improve its security, and resumed trading on its platform on Thursday, August 10. – TechCrunch
  • The U.K.’s FCA has granted app-only bank Mondo a banking license, thereby joining the ranks of neobanks Atom Bank, Tandem, and Starling. – The Financial Times
  • “An Interview with the Inventor of the Credit Card Chip Reader” – The New Yorker
  • “The Dawn of the Virtual Assistant” – The New York Times

Parentheticals after a company name refer to the year of their most recent Finovate or FinDEVr conference appearance (F = Finovate, FD = FinDEVr).