Finovate Alumni News

Around the web

  • Online banking innovator Dollar Bank to upgrade its digital offerings with technology from Fiserv.
  • Brazil’s Nubank reaches milestone of 1.5 million digital account openings in six months.
  • Aire, Onfido, Trunomi, TransferWise, YoYo Wallet and Revolut earn finalist spots in TechCrunch Europas Awards.
  • Emailage announces expansion across APAC and plans to double the size of its Phoenix, Arizona office.
  • Baker Hill to provide consumer lending and online loan application solution for North Carolina-based First Bank.

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 Global: Fintech News from Around the World

As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from Around the World is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.

CEE

  • Lithuania to allow entrepreneurs to register and manage startups remotely as Virtual Limited Liability companies (VLLC) using blockchain technology.
  • Latvia considers tax on cryptocurrency transactions.
  • Trend News Agency takes a look at the regulatory challenges to the fintech industry in Azerbaijan.

Asia

  • Indonesia’s first invoicing platform Paper.id makes the case for modernizing financial management in developing countries.
  • Myanmar Citizens Bank and Construction and Housing Development Bank to deploy core banking technology from Temenos.
  • Filipino tech entrepreneur Gary Viray shares his thoughts on 4 things fintech startups can learn from the mobile payments boom in Cambodia.

MENA

  • DIFC FinTech Hive expands accelerator program to include insurance, Islamic finance, and regtech services.
  • Travelex and UAE Exchange to be combined under single holding company, Finablr, in advance of potential IPO.
  • Gulf International opens Shariah-compliant, digital-0nly bank in Bahrain.

Africa

  • Vio Digital, a South African startup that leverages blockchain technology for worldwide P2P money transfers, to go live in May.
  • The Bill and Melinda Gates Foundation-funded Digital Financial Services Lab (DFS Lab) has announced investment in four African startups: Cherehani Africa, NALA, Nobuntu, and a digital lender from Kenya still in stealth.
  • Report on fintech funding in East Africa shows Kenya receiving 99% of financing with neighbors Uganda, Rwanda, and Tanzania making up 1% combined.

LATAM

  • Nubank Adds Facial Biometrics to Fight Fraud.
  • Argentine fintech supermarket iKiwi expands in Latin America.
  • Chile and U.K. to increase financial and professional sector trade links in areas including fintech, asset management, and green fintech.

Top image designed by Freepik

 

Nubank Adds Facial Biometrics to Fight Fraud

Less than a month after picking up an investment of $150 million, Brazilian fintech Nubank is leveraging facial biometrics to help combat credit card fraud.

The company provides a mobile-centric credit card and offers other payment services via its app. Nubank will enhance the security of its app using technology from fellow Brazilian innovator Acesso Digital to compare facial images of card applicant images with those available from a shared database used by Brazil’s biggest banks, retailers, and fintechs. The solution, AcessoBio, will be added to the data analytics technology already used by Nubank. The company said that the addition of a facial biometrics layer to the card application process will reduce both false rejections and identity fraud.

“From the customer’s point of view, the process of requesting the card remains simple, fast and transparent,”Nubank fraud prevention lead Guilhereme Wunsch said.

AcessoBio is the largest privately-run biometric database in Brazil, recording the biometrics of a million Brazilians a month. The company’s goal is to record the biometric data of the country’s entire financially-active population within the next three years. With customers in retail, healthcare, e-commerce, and telephony, as well as financial services, Acesso Digital was founded in 2007 and is headquartered in Sao Paulo.

“AcessoBio optimizes the security and experience of customers in a simple and efficient way, while protecting the names of Brazilians at the same time,” Acesso Digital CEO and founder Diego Martins said.

Founded in 2013, Nubank is one of Brazil’s most well-funded fintechs, with support from DST Global Investment Partners, Founders Fund, QED, Goldman Sachs, and others. More than 13 million Brazilians have applied for Nubank’s credit cards and digital accounts. Recognized as a member of KPMG/H2 Ventures Fintech 100 in 2017, the company announced the upcoming launch of NuConta last fall. NuConta is a digital account it will offer in addition to its credit card business in a bid to reach the nation’s sizable underbanked population, estimated at as many as 60 million Brazilians.

As part of our FinDEVr New York 2016 developers conference, Nubank co-founder and CTO Edward Wible and Lead Software Engineer Lucas Cavalcanti presented Our Money, Our Rulebook. The presentation detailed how the company leveraged data science modeling to build an in-house accounting system with real-time customer visibility, guaranteed conservation of money, and customer account histories.

Finovate Global: Fintech News from the Periphery

As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from the Periphery is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.

Africa

  • TechCrunch profiles Africa-focused microlender, Branch, which recently picked up an investment of $70 million.
  • IT News Africa takes a look at the demand for “senior leaders” in Africa’s growing fintech industry.
  • International money transfer firm PaySend partners with Access Bank Nigeria

CEE

  • Polish Financial Supervision Authority signs MoU with Hong Kong Monetary Authority to encourage fintech collaboration.
  • U.K.-based cross border payments company Ebury opens first office in Bucharest, Hungary. (In Hungarian.)
  • Crowdfundinsider notes the surge in number of registered fintechs in Lithuania courtesy of report from Invest Lithunia.

Asia

  • ayondo celebrates being the first fintech to list in Singapore.
  • Sri Lanka’s largest bank, Bank of Ceylon, to deploy anti-money laundering solution from CustomerXP.
  • Central Bank of Malaysia establishes open API implementation group to develop standards for financial sector.

MENA

  • World Finance Magazine awards Temenos Best Islamic Banking & Finance Software Solution at 2018 Islamic Finance Awards.
  • RAKBANK, also known as The National Bank of Ras Al Khaimah, launches contactless cash withdrawal facility for its more than 170 NFC-enabled ATMs.
  • Dubai International Financial Centre (DIFC) signs MoU with Middle East Venture Partners to support development of the area’s capital technology ecosystem.

LATAM

  • Nubank Challenges Brazil’s Big Banks in Wake of $150 Million Funding Round.
  • Mexico enacts legislation to regulate its fintech sector.
  • Colombian roboadvisor Ualet wins honors as Latin America’s Most Innovative Startup at industry event sponsored by Finnovista.

Top image designed by Freepik

Nubank Challenges Brazil’s Big Banks in Wake of $150 Million Funding Round

The startup that made headlines recently for its antitrust complaint against some of its country’s largest banks is the same fintech that raked in a major investment from a group of investors earlier this month.

Founded in 2013 and headquartered in Sao Paulo, Brazil, Nubank has charged Brazil’s big banks with hindering competition in financial services, specifically in the credit card space where Nubank has been making inroads . And now Brazil’s antitrust watchdog, Cade, is on the case. According to Reuters, the five biggest Brazilian banks hold 85 percent of assets in the country’s highly concentrated banking system.

The investigation into Nubank’s complaint is the second time this month that the company has made fintech headlines. Only a few weeks ago Nubank announced receiving $150 million in new funding in a round led by DST Global Investment Partners. Nubank founder and CEO David Velez noted at the time the company had been “cash flow positive since 2017” and that the funding would “serve to further strengthen our balance sheet to support the accelerated growth we have seen since launch.”

“In a little less than four years, more than 13 million Brazilians have applied to become a Nubank customer, a reflection of how ready consumers were to welcome new alternatives to the significantly concentrated Brazilian banking market,” he added. “We look forward to expanding our reach and product offering to many millions more in the years ahead.”

The Series E also featured participation from current investors Founders Fund, Redpoint Ventures, Ribbit Capital LP, and QED. New investors Dragoneer Investment Group and Thrive Capital Partners joined the round, as well.

In addition to its equity capital of $330 million, Nubank received a $137 million (R$455 million) line of credit from Goldman Sachs last year. The company, which won regulatory approval to operate as a bank in January, was named to the KPMG/H2 Ventures’ Fintech 100 in 2017, and also unveiled its new digital account offering to go along with its credit card business.

Founded in 2013 and headquartered in Sao Paulo, Brazil, Nubank participated in our developers conference, FinDEVr New York 2016. At the event, Nubank co-founder and CTO Edward Wible and Lead Software Engineer Lucas Cavalcanti presented Our Money, Our Rulebook, a discussion of how the company built an accounting system in house based on data science modeling, real time customer visibility, guaranteed conservation of money, and customer account histories.

Finovate Alumni News

On Finovate.com

  • Nubank Challenges Brazil’s Big Banks in Wake of $150 Million Funding Round.

Around the web

  • West Virginia city Beckley introduces mobile parking app, Passport Parking, powered by Passport.
  • Diginomica features Temenos CTO Dharmesh Mistry in discussion on the importance of core banking renewal.
  • Darwinex launches new performance fee structure, Darwinian Dividends.
  • Lendio opens franchise in Charlotte, North Carolina.
  • The Paypers interviews BioCatch VP, Frances Zelazny.
  • Business News Daily profiles Palo Alto Software’s LivePlan.
  • Enveil wins Cybersecurity Innovator of the Year and Best of Howard County at Maryland Cyber Awards 2018.
  • Sberbank acquires 60% stake in dialog enterprise corporate messenger developer, Dialog.

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.

KPMG, H2 Ventures Unveil Fintech 100 for 2017

It’s that time of the year once again: KPMG and H2 Ventures have teamed up to introduce their Leading Global Fintech Innovators roster, the Fintech 100 for 2017. The judges for this year’s Fintech 100 included more than 20 professionals from KPMG and other organizations with expertise in IT, data analytics, capital markets, financial services, and more.

This year 11 Finovate/FinDEVr alums made the Leading 50, with another 12 alums making the Emerging 50. New entrants to the KPMG/H2 Ventures roster include SoFi and Revolut among the Leading 50. All 12 the alums on the Emerging 50 are making their first appearance. See the full list.

Some of the highlights from the 2017 Fintech 100 include the observation that five of the roster’s top 10 companies are from China, as are the top three companies on the list: Ant Financial, ZhongAn, and Qudian (Qufenqi). The U.S. has a pair of companies in the top five: Oscar and Avant, and Europe and the U.K. each have one company in the top ten: Kreditech and Atom Bank, respectively.

Speaking of Asia, the Asia-Pacific region has 30 fintech companies in the top 100. The United States has 19 companies – the most from any single country – and the U.K. and EMEA areas have 41 companies in the list. The U.K. and EMEA region are also responsible for the highest number of companies on KPMG/H2 Ventures’ Emerging 50 list with 26.

With regard to sectors within fintech, the Fintech 100 breaks down as follows:

  • 32 lending companies
  • 21 payments companies
  • 14 transaction and capital markets companies
  • 12 insurance/insurtech companies
  • 7 wealth management/wealthtech companies
  • 6 cybersecurity/regtech companies
  • 4 blockchain/digital currency companies
  • 3 data and analytics companies

Alums from the Leading 50

Alums from the Emerging Stars

Nubank Reaches Out to Brazil’s Underbanked with Addition of Digital Accounts

Brazilian fintech Nubank announced this week that the company will begin offering digital accounts in addition to its credit card business. The move will provide access to billpay, account-to-account transfers, and the ability to earn more in interest than is available with a regular savings account. “Our real revolution begins today,” Nubank founder and CEO David Velez said. “Now we are offering services to 100 percent of Brazilians.”

ZDNet reports that the new solution, NuConta is currently in beta and is expected to be rolled out to Nubank’s current 2.5 million credit card customers once beta testing is complete. The company hopes to make the accounts available to everyone “from the first quarter of 2018.”

Left to right: Nubank Co-Founder and CTO Edward Wible and Lead Software Engineer Lucas Cavalcanti presenting “Our Money, Our Rulebook” at FinDEVr New York 2016.

The decision helps Nubank bring banking services to the large population of underbanked consumers in Brazil – as many as 60 million without bank accounts. It also could enable the company to narrow the gap between the number of individuals who have applied for Nubank credit cards since the company launched and the 2.5 million who have actually signed on. The NuConta accounts will require neither maintenance fees nor credit checks, and deposits will be tied to interest-bearing government securities. Debit cards and the ability to withdraw cash will not be offered initially, but could be added based on customer demand, Nubank’s Velez said. NuConta accounts will also be mobile-centric, the company said, taking advantage of Brazil’s high rate of mobile internet and smartphone use.

Founded in 2013 and headquartered in Sao Paolo, Brazil, Nubank presented Our Money, Our Rulebook at FinDEVr New York 2016. At the conference, Nubank Co-Founder and CTO Edward Wible and Lead Software Engineer Lucas Cavalcanti showed how building an in-house double accounting system enabled them to gain real-time, customer-level accounting visibility and insight. In August, Nubank raised $139 million in debt financing (R$455 million) from Fortress Investment Group and Goldman Sachs. The company’s last equity round of funding was last December, when Moscow-based venture capital firm DST Global led Nubank’s $80 million Series D.

Finovate Alumni News

On Finovate.com

  • Nubank Reaches Out to Brazil’s Underbanked with Addition of Digital Accounts.

Around the web

  • Built In Colorado names Gusto, Ping Identity, Personal Capital, Xero, PaySimple, Vantiv in its list of Top 100 digital tech companies in Colorado.
  • Compass Plus among the first software vendors to connect to the MirAccept 2.0 platform from NSPC.

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

  • Responsive Tiles from Geezeo Help Banks Build Personalized Digital Experiences.
  • Accenture Acquires Verax to Boost Canadian Operations.
  • Urban FT Bids to Acquire Digiliti Money [UPDATE: Bid Rejected]

Around the web

  • Let’s Talk Payments interviews David Vélez, founder of Nubank.
  • Visa to encourage Australian banks to embrace biometric authentication in new security roadmap.
  • InComm buys distribution rights to American Express’ prepaid reloadable and gift card business in the U.S.
  • Flywire Simplifies Compliance with New Cross-Border Education Payment Requirements in Ireland.

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.