Finovate Alumni News

On Finovate.com

  • PayPal Acquires Simility for $120 Million.
  • Finovate Favorites: A Baker’s Dozen of Best of Show Winners.
  • Touché, OCBC Bank Bring Fingerprint Authentication to In-Person Commerce.
  • P2Binvestor Earns $17+ Million in Funding.
  • Veridium Earns $150,000 Grant.
  • Newchip Lands $2 Million in Seed Funding.

Around the web

  • Experian secures FCA accreditation to supply Open Banking and PSD2 services.
  • Finn AI is the latest fintech to join Temenos Marketplace.
  • CFSI names financial health leaders: Envestnet | Yodlee, Finicity, Handle Financial, Lendstreet, Lend Up, Lending Club, Moven, and Simple.

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

  • BBVA Partners with Azlo to Empower Workers in the Gig Economy.

Around the web

  • Wipro named one of the “World’s Most Ethical Companies” by Ethisphere for seventh time in a row.
  • LendUp CEO Jake Rosenberg talks about providing “fair financial products” to the underbanked in a conversation with Y Combinator.
  • Technology from Quid helps Walmart build its American Family Today report.
  • Milwaukee Public Radio features BanQu and its ability to leverage blockchain technology to help refugees reclaim their identities.

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

  • Tuition.io to Power Student Loan Repayment Benefit for Estée Lauder Employees.
  • Check out sneak peeks from next month’s FinovateEurope presenting companies:
  • Meniga to Support Digital Transformation for French Banking Group, BPCE. See Meniga at FinovateEurope 2018 in March.
  • Handle Financial’s Prism Mobile App Reaches $1 Billion in Bills Paid.
  • Finect Raises Capital as BME Takes Minority Stake.

Around the web

  • Actiance forges partnership with Relativity to bring seamless data delivery to eDiscovery platform.
  • Neustar unveils multi-factor authentication risk assessment tool to help enterprises mitigate fraud risk.
  • Tinkoff Bank and AHML to launch joint venture to offer mortgage loans via new electronic platform.
  • Y Combinator interviews Jake Rosenberg, cofounder and CTO of LendUp.
  • VentureBeat highlights OurCrowd, which has raised $650 million for 145 startups and plans to top $1 billion in 2018.

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.

44 Alums Populate CB Insights’ Fintech 250 List

This week, CB Insights unveiled its Fintech 250 list. The research outfit selected 250 emerging, private companies in 17 sub-sectors of fintech that are changing the face of financial services. The roster includes 44 Finovate and FinDEVr alums that were selected using CB Insights’ data-driven process that analyzes company momentum, market participation, funds raised, and investor quality.

The list is in alphabetical order.

Algomi

AutoGravity

Avalara

Behalf

Betterment

Blend

Chain

Coinbase

Credit Karma

Currencycloud

CurrencyFair

Fenergo

Financeit

Gusto (formerly ZenPayroll)

Juvo

Kabbage

Kensho

Kreditech

Klarna

LendUp

Moneytree

PayNearMe

Payoneer

Personal Capital

Plaid

Quantopian

Quovo

Revolut

Ripple Labs

Roostify

Signifyd

SocietyOne

Socure

Tink

Token

Tradeshift

Transferwise

TrueAccord

Trulioo

VATBox

Wealthfront

Xignite

Zooz

Zopa

PayPal Makes Strategic Investment in Online Lender LendUp

Is PayPal’s investment in online lender LendUp a hint that the underbanked may not remain the underserved for long? LendUp specializes in providing loans to borrowers who have been unable to secure credit from banks and credit unions. And with more than $111 million in equity funding – including this week’s undisclosed amount from PayPal, the San Francisco lending and financial education platform has even more capital to grow its business.

“We’re building our own technology to create new financial products and experiences for the 56% of Americans shut out of mainstream banking due to poor credit or income volatility,” LendUp CEO Sasha Orloff said. “Right on a mobile phone.”

Operating in 24 states, LendUp provides a suite of solutions geared toward providing credit to the underbanked and helping those with thin credit files or a poor credit history to build or rebuild their credit rating. The company’s LendUp loans provide short-term credit, typically as much as $500 for up to 30 days. LendUp’s L Card Visa, launched in 2015, is a no-security-deposit-required credit card for the underbanked with an annual fee between $0 and $60, and an APR between the low 20s and the low 30s. The company’s LendUp Ladder enables customer to earns points toward better borrowing rates by making timely loan repayments, completing financial education courses, and referring others to the service.

In addition to the strategic investment from PayPal, LendUp announced that former Lending Club CFO Carrie Dolan would join the company as a board advisor. Other major changes at LendUp including hiring Mandeep Walia – a former PayPal executive – as chief compliance officer, and adding former Lending Club executive Jordan Olivier as VP of Finance, and Karry Bryan, formerly of PwC, as VP and controller.

LendUp demonstrated its lending platform at FinovateSpring 2014, following the company’s Best of Show winning debut the previous year. Earlier this month, the company was named a Financial Health Leader by the Center for Financial Services Innovation. In May, LendUp expanded its L Card credit card, launched in 2015. And in March, the company received a credit facility worth $100 million from Victory Park Capital. LendUp was founded in 2011.

LendUp Gives the Underbanked What No Traditional Bank Will

Socially responsible lender LendUp is expanding its L Card credit card offering this week. The San Francisco-based company has built on its joint venture partnership with Beneficial State Bank to quadruple the availability of the L Card, a credit card for the underbanked community that is designed to help members establish their credit files and grow their scores.

Originally launched in April of 2015, the L Card boasts low fees, offers users incentives for paying off their balance early, and provides materials to boost their financial education. Unlike major credit card companies, LendUp presents credit card applicants with an instant decision. And in order to better build users’ credit scores, LendUp reports to all three major credit bureaus.

Further differentiating its credit card offering, LendUp doesn’t require a security deposit, has an annual fee of $0 to $60, and offers an APR that ranges from just under 20% to just under 30%. Even if a customer makes a late payment, LendUp will not raise the fee. In fact, late fees, which are capped at $7, are only issued after a 14-day grace period.

Sasha Orloff, LendUp co-founder and CEO said that LendUp and Beneficial State Bank are “completely aligned on the same North Star.” Orloff added, “Our partnership is a perfect example of bringing our house-built technology, product design, and educational experiences to bear for a similarly mission-driven bank and well-deserving consumers across the country.”

Though overall the card may be good for consumers, the introductory line of credit, capped at $300 to $1,000, could possibly lead to a high credit utilization ratio, which lowers consumers’ credit scores. However, the line of credit has the potential to double after a year of responsible use so if the company’s payoff incentives and financial education work as they are supposed to, it may actually help consumers in the long-run.

Founded in 2011, LendUp began offering loans specifically designed to help consumers build credit using education, gamification, and a transparent fee structure. The company’s CEO and Co-Founder, Sasha Orloff, and CTO and Co-Founder, Jacob Rosenberg, launched the RESTful API lending platform at FinovateSpring 2014, a year after winning Best of Show at FinovateSpring 2013 for debuting the LendUp Ladder. Named to the H2Ventures and KPMG Leading 50 category of the Fintech 100 list last October, LendUp received a $100 million credit facility from Victory Park Capital this spring.

Finovate Alumni News

On Finovate.com

  • nCino Helps Financial Institutions Benefit from Cloud Banking
  • LendUp Gives the Underbanked What No Traditional Bank Will

On FinDEVr.com

  • Check out this week’s FinDEVr APIntelligence

Around the web

  • BanQu teams up with Eastern Congo Initiative to launch secure data storage network for farmers.
  • TransferWise announces operational profitability and monthly revenues of £8 million.
  • Lighter Capital adds Former Silicon Valley Bank’s Head of Risk, Marc Verissimo, to its Board of Directors
  • Wells Fargo selects Uniken for accelerator program.
  • Wipro launches Nine Solutions to Accelerate Adoption of Blockchain Across Industry Sectors
  • Societe Generale partners with Open Bank Project to launch internal Open Banking Hackathon
  • South Carolina-based Community First Bank hires Insuritas to install and manage insurance agency.

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 sneak peeks from FinovateSpring demoing companies SpeechPRO, CallVU, ACH AlertnanoPay DefenseStorm, and SuperMoney.
  • InComm Partners with WeChat Pay Parent Tencent.

Around the web

  • PYMNTS.com looks at Payoneer and escrow service as a way to support B2B payments.
  • SelfScore launches Achieve Card to provide international students with access to credit.
  • New service from Azimo enables money transfers with just a phone number.
  • PYMNTS profiles LendUp’s target market focus.
  • Loan validation firm Global Debt Registry Adds Prosper to Network.
  • DemystData celebrates its one-year anniversary in Singapore by expanding its offices.
  • EyeLock receives patent for sequentially linking iris matching with facial imaging.
  • Wired gets into the algorithmic brains of Quantopian.

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.

LendUp Lands $100 Million Credit Facility

Screen Shot 2017-03-02 at 5.02.19 PM

Payday loan alternative startup, LendUp, announced this week it has received a $100 million credit facility. The financing comes from the company’s long-time partner, Victory Park Capital, and will be used to fund future loan growth. The San Francisco-based startup’s combined debt and equity now totals $325 million.

In addition to the financing news, LendUp also surpassed $1 billion across 3.3 million loan originations since launching in 2012. Sasha Orloff, LendUp CEO and co-founder said, “This is an important milestone for LendUp because it proves the viability and sustainability of the market opportunity for socially responsible lending.”

The company’s team of 200+ aims to help consumers rejected by banks find a safe alternative to payday lenders. LendUp’s flagship products include LendUp Loans, a short-term loan that lets users borrow up to $250 for 30 days; and LCard, a credit card made for those who struggle with credit. In 2016, these products helped borrowers save $55+ million in interest and fees (up from $16 million in 2015). LendUp also offers educational materials, such as free online courses, to give cardholders the information they need to make decisions about their financial future. These videos have been viewed more than 1.2 million times.

CEO Sasha Orloff debuted the company’s API at FinovateSpring 2014. The API exposes LendUp’s core to allow partners to leverage its platform. The company won Best of Show at FinovateSpring 2013 for debuting its product that helps the underbanked build credit. In October of last year, H2Ventures and KPMG placed LendUp in the Leading 50 category of its Fintech 100 list.