FinDEVr APIntelligence

FDNY17_EventLogo_v1(wdate)Tickets for upcoming FinDEVr London and FinDEVr New York are at their lowest prices now. Register before Friday for New York to save!

On FinDEVr.com

  • Join FinDEVr New York’s Impressive Audience — Save On Tickets Through Friday!

The latest from FinDEVr Silicon Valley presenters

  • PwC and Oracle team up to help FIs meet new accounting standards
  • Technology from Modo Payments supports new loyalty point POS payment partnership between FIS and Verifone.

Alumni updates

  • FICO and Ethoca partner to improve card acceptance rates, fight CNP fraud, and reduce disputes.
  • Finextra: Blockchain launches Digital Asset Research Lab.
  • OnDeck and payment solutions provider WEX team up to provide small business financing.
  • Token partners with VirtusaPolaris, information technology consulting and outsourcing company.

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

Finovate Alumni News

On Finovate.com

  • Revolut Unveils Billsplitting Feature.
  • Check out this week’s FinDEVr APIntelligence.
  • ThreatMetrix Shows Off its Strongest Year Yet.
  • Société Générale to Launch Personetics-Powered Chatbot.

Around the web

  • Five Degrees provides CRM and BPM technology for new UK robo advisor, Munnypot.
  • Coinbase wins New York State Department of Financial Services (NYDFS) virtual currency and money transmitter license.
  • FICO and Ethoca partner to improve card acceptance rates, fight CNP fraud, and reduce disputes.
  • PwC and Oracle team up to help FIs meet new accounting standards.
  • Handpoint expands line of commerce solutions with semi-integrated mobile EMV for cloud POS.
  • Guardian Analytics appoints Varouzhan Ebrahimian as the company’s new Chief Technology Officer.
  • Finextra: Blockchain launches Digital Asset Research Lab.
  • Savedroid celebrates reaching 50,000 download milestone within three months.

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

FDNY17_EventLogo_v1(wdate)FinDEVr Silicon Valley was a success! Tickets for upcoming FinDEVr London and FinDEVr New York are at their lowest prices now. Register today for London or New York to save your spot!

On FinDEVr.com

  • Calling All Development Teams – Last Chance to Speak at FinDEVr NY.

The latest from FinDEVr Silicon Valley presenters

  • Finovate Debuts: AutoGravity Unveils the Future of Auto Financing.
  • Hyperwallet announces new office in London.
  • PwC and Supply Chain Finance Community launch SCF Barometer to better understand the development of supply chain finance industries.

Alumni updates

  • Bluefin Payment Systems wins patents for a pair of decryption-as-a-service technology.
  • Finance Disrupted interviews Xignite CEO and founder, Stephane Dubois.
  • Pakistan’s Samba Bank to deploy new core banking technology from Temenos.
  • ACI Worldwide to provide fraud protection for Kuwait’s Shared Electronic Banking Services Company (KNET).
  • Mitek partners with the American Cancer Society, supporting mobile fundraising with its mobile deposit and MiSnap technology.

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

Finovate Alumni News

On Finovate.com

  • Fintech Favorites: Token and Fidor Pilot Payments Project; Meet Miss Kaya: Singapore’s First Women-Centered Robo Advisor.
  • EVRY Inks Five-Year Core Banking Agreement with Fana Sparebank.

Around the web

  • Alfa Bank and S7 Airlines test service payment transaction processing using blockchain-based smart contracts.
  • WalesOnline recognizes Wealthify in its feature on Welsh firms “likely to have a very good 2017.” Join Wealthify in London for FinovateEurope in February.
  • The Wild Wong looks at money saving strategies with Qapital.
  • PwC and Supply Chain Finance Community launch SCF Barometer to better understand the development of supply chain finance industries.
  • FinTecSystems opens office in Spain. See FinTecSystems at FinovateEurope in London in February.
  • North Dakota State University using Passport for campus parking.
  • Nerd Wallet names Wealthfront and Betterment best overall robo advisors.
  • India-based Axis Bank to use Ripple’s network for cross-border transactions.
  • NopSec named finalist in 13th Annual Info Security PG’s 2017 Global Excellence Awards.

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

  • “Andreessen Horowitz Leads $25 Million Investment in Quantopian
  • “Finovate Debuts: GoodData Helps Banks Put Their Data to Work”
  • “Nutmeg Spices Things Up with New $37 Million Investment”

Around the web

  • FinDEVr alum Smart Token Chain completes first smart token transfer via Ripple network.
  • From apps to APIs: Dwolla rebrands as platform.
  • PwC unveils Vulcan Digital Asset Services, a suite of digital currency solutions including digital wallets and international payment processing.
  • Entersekt to power mobile app security for FirstBank.
  • CoverHound partners with Metromile to offer more coverage options for auto and property insurance.
  • WealthForge exceeds $250M in transactions completed on platform.
  • Kabbage hires chief technology officer and chief data officer.
  • AutoGravity to power digital car sales and finance app for Fletcher Jones Motorcars.
  • Visa Developer Challenge winner Corezoid earns recognition at Money 20/20 Hackathon.

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: P2P, EMV, NFC, NLP…. OMG

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

Big handshakes

Cardtronics acquires DirectCash Payments

In a $460 million deal, Texas-based ATM operator Cardtronics has acquired Canada-based DirectCash Payments. The deal is expected to help Cardtronics expand into Canada and the United Kingdom. DirectCash Payments has 25,000 ATMs around the globe, primarily in Australia, Canada, and the U.K. Once the deal closes in Q1 of 2017, it will boost Cardtronics’ network to 225,000 ATMs across North America, Europe, and Asia Pacific.

Jack Henry & Associates (F10) teams up with Visa (F10)

In a new partnership, Jack Henry & Associates has integrated with Visa to allow customers to send P2P payments directly to a recipient’s Visa debit card. This eliminates the need for a recipient to provide their account and routing number to the sender. With increased competition in the P2P payments industry (PayPal/Venmo (FDNY 16), Square Cash, Zello), banks are feeling pressure to compete by offering faster delivery of funds. The partnership enables banks to offer funds-transfers a day sooner, or even same-day. Jack Henry began offering P2P payment capability in 2005 and expects the new method to boost usage.

Sberbank (F16) and MasterCard (F11) partner to launch ApplePay in Russia

Starting this week, Mastercard cardholders in Russia can now pay using ApplePay, thanks to a new partnership between Russian bank Sberbank and Mastercard. In a statement, the bank’s Deputy Chairman of the Executive Board, Alexander Torbakhov, said, “Apple Pay is driving the popularization of contactless payments in Russia and globally. Many of Sberbank clients actively use new technologies, and an increasing number of them will prefer cash-free and contactless payment using their smartphones.”

This is the Russian bank’s second big move this week. On Monday the company inked a partnership with Hyperledger to begin working on the Hyperledger Project.

PayPal (F11) and Vodafone partner for in-store NFC mobile payments

Acting on a partnership it first initiated in February, PayPal partnered with Vodafone to enable U.K. users to make NFC payments from their PayPal accounts using their Android phones. The agreement enables consumers to make transactions of up to £30 ($36.60) at 400,000 retail locations. For more expensive purchases, Vodafone Pay users can use their Vodafone wallet (launched in 2013), which requires a PIN.

The NFC payment capability with Vodafone was piloted in Spain. PayPal also has agreements in place with other global telcos, including America Movil, Telcel, and Claro.

Regulation

Happy birthday, U.S. EMV.
It’s been one year since EMV regulation in the United States was placed into effect. If you live in America, you’ve likely noticed that adoption is low. In fact, according to a recent report from Mastercard, 88% of consumers have been issued chip cards, but only 33% of merchant locations accept them.

Mobile POS company CardFlight (F13) released data on EMV usage in the U.S. over the course of the year and found:

  • 78% of cards now contain EMV chips, up from 46% in October 2015
  • American Express leads the way in EMV card issuance, with 96% of their cards now EMV-enabled
  • Mastercard is the runner-up: 71% of cards issued contain an EMV chip

Check out CardFlight’s full EMV report here.

Though usage remains low, Mastercard reported this week that it has seen an overall decrease in fraud since the EMV change. The company reports that between April 2015 and April 2016, retailers who have transitioned to EMV experienced a 54% decrease in counterfeit fraud.

Ready, set, ACH
As of September 30, a new rule from NACHA requires all banks to process incoming same-day ACH credits. Most ACH payments are currently settled on the next business day: the new rule-change offers originators the option to send an ACH transaction to any recipient account for same-day processing. NACHA has imposed a same-day fee on every same-day ACH transaction to help financial institutions receiving the funds to recover the cost to enable same-day ACH. Phase two of NACHA’s Same-day ACH initiative will take effect 15 Sept 2017.

Capital One integration with Amazon Echo
Capital One integration with Amazon Echo

Technologies: AI, chatbots, and natural language processing (NLP)

The industry-wide obsession with chatbots continues. Finovate last month showcased a dozen variants on the chatbot theme. One of our newer alums, Personetics (F16), is even holding a Chatbot Bootcamp next month in San Francisco. And our chatbot-banking post in March is our fourth most-read. But the bigger conversation is around natural language processing (NLP) and how it can be used to retrieve information and perform tasks. A new report from Juniper Research estimated that NLP would drive $2.1 TRILLION in annual purchases via mobile five years from now (2021).

The tech world is in a tizzy over Amazon’s Alexa capabilities. We showcased two demos of her at FinovateFall from BankJoy (F16 demo) and FIS (F09) (F16 demo). Capital One is the only bank with a live Alexa integration (called “Skill”), but Lloyds Bank put together a proof of concept this spring. There are currently 2,904 skills listed in the unofficial Alexa database, but very little in the financial realm. Expect to see much more activity as financial institutions and fintech companies develop applications using Amazon’s Alexa and the new Google Assistant.

Sibos 2016 celebrates the blockchain

The annual Sibos 2016 conference in Geneva took place at the end of September—between the last Fintech Trending meeting and this one. Organized by SWIFT, Sibos is considered to be the world’s premier financial services event covering areas such as payments, securities, cash management, and trade.

So what was big at Sibos 2016 this year? The blockchain. 2016 was the first year that Sibos dedicated a track “exclusively to distributed ledger” technology. And the event’s startup-industry challenge was all about how to use the blockchain in the securities industry. The three startups that won the challenge will develop PoCs using technologies like smart contracts (SmartContract), distributed ledgers (Rise Financial Technologies), and open-source blockchain platforms (Coin Sciences).

Some have ascertained the irony in SWIFT’s embrace of the blockchain: Its $6 billion payment-messaging service is one of the technologies “widely perceived to be at risk for disintermediation” by blockchain technology. And indeed, companies like Finovate alum Ripple (F13) have made great strides in helping FIs like Bank of America, Santander, and Royal Bank of Canada use distributed-ledger technology to provide a global blockchain-payments network with “near-instant” settlement. Interestingly, Ripple recently hired former SWIFT board member Marcus Treacher as its new global head of strategic accounts. Treacher told CoinDesk in September that SWIFT was the “de facto way everyone moves money through countries.” And cross-border payment is something he specifically believes Ripple “can do better.”

  • Global Banks Partner to Form Blockchain Payments Network—CoinDesk
  • Sibos 2016: Innotribe Industry Challenge—results—Banking Technology

Speaking of blockchain, a number of companies with blockchain and distributed-ledger technologies will be presenting at our developers conference, FinDEVr Silicon Valley, next week. These companies include PwC, which will present its blockchain-as-a-service technology to improve trade finance, and IBM with its hyperledger implementation in the cloud that helps manage and test blockchain-dev projects. Also on hand will be distributed database specialists Aerospike (FD16) and Cognitect (FD16).

InsurTech rising

From FT Partners recent report on the boom in insurance-technology innovation, to InsurTech Rising’s event, Informa, to launch on 21 Oct, this area of financial technology is garnering increasing attention.

Why? As FT Partners pointed out in their 247-page report, the insurance industry is one of the areas of finance that so far has been least affected by the technological disruption nearly commonplace elsewhere. The insurance industry is a multitrillion dollar business; property and casualty insurers alone generated more than $64 billion in net income in 2014. And it sits at the nexus between the drive to better engage customers (is there anything enjoyable about insurance from a consumer perspective) and the need to accommodate complex and shifting regulatory landscapes (something the rest of finance is becoming increasingly familiar with).

What are the focuses of insurtech? Most technology innovation in the area revolves around trends in distribution and administration: data and analytics, and marketing and customer engagement. This includes everything from the kinds of products offered to consumers, such as micro-insurance, to using mobile channels and interactive technologies to make insurance products easier to understand, choose from, and purchase.

How are industry players responding and what to watch for? From partnering with innovative startups to acquisitions, incumbent insurance firms are increasingly aware of the challenge. FT Partners reports that more than 40% of traditional insurers surveyed by Ptolemus Consulting said they were planning to “acquire, or have already acquired, innovative startups to help them expand their digital capabilities” and more than half say they have already invested in social media, data mining, and predictive modeling. Nearly 70% have embraced mobile technology.

  • Wave Mechanics: FT Partners Report Highlights Trends Driving Rise of Insurtech—Finovate
  • Prepare for the InsurTech Wave: Overview of Key Insurance Technology Trends—FT Partners
  • Informa’s FinTech Futures Hosts InsurTech Rising (pending)—Finovate

——
Note: Finovate alums have the year of their first appearance listed after their name. For example, FIS first appeared at Finovate in 2009, so there is a (F09) after their name, with a link to that first demo.

FinDEVr APIntelligence

FinDEVrSV16-withdateOur FinDEVr New York developer showcase was a success! FinDEVr Silicon Valley will be held October 18 & 19 in Santa Clara. Register today to save your spot!

On FinDEVr.com

The latest from FinDEVr New York and upcoming Silicon Valley presenters

  • Fidor Bank teams up with Abu Dhabi Islamic Bank to launch first community based digital bank in the region.
  • PayPal promotes Braintree’s William Ready to chief operating officer.
  • PYMNTS.com talks with Hyperwallet VP Tomas Likar about the challenge of payments in the on-demand workforce.
  • IBM announces $200 million investment in its Watson IoT business in Munich. See IBM at FinDEVr Silicon Valley, October 18 & 19.

Alumni updates

  • Bank of Ireland to deploy UniversalSuite core banking solution from Temenos.
  • Xero Announces Improved Integration with PayPal
  • Bluefin Announces Issuance of Patent on Decryption as a Service
  • Kristina Campbell joins PayNearMe as chief financial officer.
  • Xero teams up with Barclays to improve access to transaction data for U.K. businesses.

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

FinDEVr Preview: PwC

FinDEVrSV16-LogoV2(wdate)FinDEVr Previews highlight companies presenting new developer tools, platforms, and integrations at FinDEVr Silicon Valley 2016, October 18 & 19. Tickets are on sale now. So visit our registration page and save your spot today.

Improving the business process of trade finance operations to digitize the movement of services, goods, and capital could represent a paradigm shift to market participants. Using Standby Letter of Credit as an example, PwC will present the potential of blockchain to positively transform the business process where current challenges exist.

pwc_homepage_october2016

Why it’s a must-see

The SBLC use-case provides the framework to scale toward more complex Trade Finance use-cases and instruments. The ability to address challenges in current manual processes allows for increased operational efficiencies, improved analytics, more reliable information and data, and enhanced balance-sheet management.


Check out more of today’s FinDEVr Previews:

Finovate Alumni News

On Finovate.com

  • Darwinex Unveils Mobile App for Android
  • Two P2P Sharing Economy Players Team Up–Airbnb and Zopa

Around the web

  • Fidor Bank teams up with Abu Dhabi Islamic Bank to launch first community-based digital bank in the region.
  • Bank of Ireland to deploy UniversalSuite core banking solution from Temenos.
  • Jack Henry & Associates collaborates with Visa to accelerate P2P payments to debit cards.
  • Sberbank and MasterCard launch Apple Pay on Russian market.
  • Bluefin Announces Issuance of Patent on Decryption as a Service.
  • Eurogiro and TransferTo join forces to link mobile money with 500,000 bank and postal branches.
  • PayPal promotes Braintree’s William Ready to chief operating officer.
  • Commercial Bank of Texas hires Insuritas to launch insurance agency.
  • Cachet Partners with Viamericas to Provide Mobile International Money Transfers

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.