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

Safe Spaces: The Best of the Authenticators, Verifiers, and Fraud Fighters

Left to right: A representative from Alipay joins Tinna Hung, Director of Marketing for EyeVerify during a demonstration of Eyeprint ID at FinovateAsia 2016.

This month we’re highlighting the issue of security in fintech. Our first installment was our interview with ENVEIL CEO Ellison Anne Williams.

Today we use the lens of our Best of Show awards to take a look at companies innovating in the security space for financial services companies and institutions. Three security companies have won Best of Show awards in more than one conference. Biometric specialists EyeVerify and BehavioSec have both earned Best of Show trophies on three separate occasions. Interestingly, both companies won one of their Best of Show awards at FinovateAsia; BehavioSec in Singapore, EyeVerify in Hong Kong. (Speaking of FinovateAsia, remember that Finovate returns to the Far East November 7 & 8.)

Earning two Best of Show awards was Silver Tail Systems (now a part of RSA, the security division of EMC, which acquired the company in 2012). Founded in 2008 and headquartered in Menlo Park, company was a pioneer in leveraging real-time behavior analysis to spot and stop business logic abuse on financial institution websites.

BehavioSec CEO Neil Costigan demonstrating BehavioWeb and BehavioMobile at FinovateEurope 2014.

EyeVerify, which was acquired by Ant Financial last fall, announced in August that it was rebranding as Zoloz. In a blog post at the company’s website, CEO Toby Rush said the new company would be focused on providing a hosted identity platform geared toward the Asian market. “Underserved and underbanked consumers in this region are moving to mobile so quickly that they have leapfrogged biometrics adoption and identity services in other geographies,” Rush wrote. “The platform is centered around the idea that I am me, my phone should just know me, and my apps and services should know me – automatically, conveniently, and securely,” he explained.

Zoloz is headquartered in Kansas City, Missouri, and was founded in 2012. The company most recently demonstrated its technology at FinovateEurope 2017.

BehavioSec, the behavioral biometric innovator, forged a partnership with Gemalto earlier this summer, to provide end-user verification and identity solutions as FIs increasingly embrace digital technologies. “Removing bottlenecks to achieve full digitization of a business goes hand-in-hand with conquering online fraud, through a layered an collaborative approach,” Costigan said. In May, BehavioSec teamed up with fellow Finovate alum Kount, integrating its behavioral biometric technology with Kount’s fraud management platform. A partnership with Appdome this spring produced AppFusion for BehavioSec, a solution that makes it easier for app developers to add behavior-based biometric authentication to their mobile apps.

Based in Stockholm, Sweden, BehavioSec was founded in 2009. The three-time Best of Show winner most recently demonstrated its technology at FinovateFall 2015.

Making it on the Finovate stage as a security solutions provider is one challenge. Taking home a Best of Show trophy as a company dedicated to helping stop fraudulent transactions, prevent unauthorized access, and create truly “safe spaces” in a connected world is quite another. Here is the full list of security companies that have won Best of Show awards at Finovate conferences.

FinovateFall 2017

FinovateSpring 2017

FinovateAsia 2016

FinovateFall 2016

FinovateEurope 2016

FinovateEurope 2015

FinovateFall 2014

FinovateSpring 2014

FinovateEurope 2014

FinovateAsia 2013

FinovateFall 2012

FinovateSpring 2012

FinovateFall 2011

FinovateFall 2010

Finovate 2009

FinovateStartup 2009

  • Silver Tail Systems (demo)

Finovate Alumni News

On Finovate.com

  • HooYu Brings Identity Confirmation Technology to BCRemit.
  • StreetShares Raises $10.3 Million for “Shark Tank Meets eBay” Approach to P2P Lending.
  • Flywire Expands Operations in Japan, Forms Partnership with Volvo.

Around the web

  • UPS Capital launches cross-border B2B payment service powered by Payoneer.
  • Risk Ident opens new U.S. office at Cambridge Innovation Center, near Boston, Massachusetts.
  • Venmo introduces QR code feature to help users find payee profiles faster.
  • eMoney launches redesigned website with a new UX enhanced navigation and multimedia content.
  • Digiliti Money (formerly Cachet Financial Solutions) appoints interim CEO.
  • Qapital now offers checking account and debit card.
  • BBVA joins Singapore-based trade finance platform Capital and Credit Risk Manager
  • Al Masraf selects Temenos’ digital banking technology
  • Kony announces V8 release of Kony AppPlatform to help developers design, develop and deliver omnichannel apps fast.
  • Shoeboxed launches Fetch, a new expense system
  • Trusona opens new office in Tokyo, Japan.

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.

Trusona Raises $10 Million to Fuel #NoPasswords Revolution

Identity authentication company Trusona landed $10 million in funding this week. Microsoft’s venture capital arm led the round. Existing investor Kleiner Perkins Caufield & Byers also participated, bringing the Arizona-based company’s total funding to $18 million.

Founded in 2015, Trusona provides an insured cloud identity suite that offers everyday logins for SWIFT wires, DTC stock transfers, critical infrastructure logins, high net-worth individual accounts, and more. The company will use today’s funding to double its workforce and generate more demand for its identity application suite that comes in three different versions. The most basic of which, Essential, allows users to log into a website by scanning their fingerprint or entering a PIN on their mobile device. The Executive version is designed to replace OTP tokens, requiring 3-factors of authentication upon login. Businesses may also select the Elite level for identity verification to access sensitive assets or initiate high-dollar wire transfers. This version delivers four-factor authentication and includes insurance.

Trusona’s CEO and founder, Ori Eisen, demonstrated the company’s Cloud Identity Suite at FinovateFall 2016. The platform is so fast and frictionless that Eisen was able to show off the user experience seven times during the seven minute demo. To authenticate themselves, clients use the Trusona app on their smartphone to photograph a QR code on a website login page, then select accept on their mobile device.

The company also provides a free WordPress plugin and earlier this spring launched an offering for Salesforce users. In April, Trusona appointed Karen Dayan as Chief Marketing Officer and earlier this year won Info Security PG’s Global Excellence Award.

Trusona Launches #NoPasswords for Salesforce

Ending the Password Paradigm is near the top of everyone’s technology wish list. This helps explain the enthusiasm for companies like cybersecurity specialist Trusona. During his Best of Show winning demonstration at FinovateFall 2016, company founder and CEO Ori Eisen, led an entertaining introduction to a world without passwords.

“You’re going to see the quickest demo of the day. If you blink you might miss it. For that reason, I’m going to do it a few times,” Eisen said. He then showed – seven times in seven minutes – how the company’s Trusona Essential solution enabled frictionless, password-free login. Using the free mobile app, Eisen demonstrated how the camera on a smartphone could be used to scan a unique QR code generated from a Trusona-secured website. After scanning the QR code the user receives a notification which, when confirmed, grants access.

“Why do we need passwords?,” Eisen asked the Finovate audience. “All these breaches and malware are trying to steal passwords because they are static. If we turn every interaction into dynamic, there is nothing to steal.”

Pictured: Trusona CEO and founder Ori Eisen demonstrating the Trusona Essential service of the  Trusona Cloud Identity Suite at FinovateFall 2016.

This week we learned that Trusona’s #NoPasswords revolution has been brought to the shores of Salesforce. The company unveiled Trusona for Salesforce on Thursday, a new, free app that will accelerate the authentication process for professionals at the more than 100,000 companies that use Salesforce every day.  “From our #NoPasswords Essential solutions, through the world’s first and only insured Elite solution that delivers NIST Level 4 (four-factor) authentication, we are working to expand our technology to fit the security needs of all organizations,” Eisen said. He added, “We are excited to now offer Trusona for Salesforce as yet another tool to rid the world of passwords and provide secure identity authentication.”

Much like the demonstration of Trusona Essential at FinovateFall, Trusona for Salesforce provides users with a unique QR code that is scanned and tapped to log-in. Once integrated by a company’s Salesforce administrator, anyone with a Salesforce account at the company can access the technology. Trusona for Salesforce is currently available on a free, trial basis for 14 days and will cost users $10 a year afterward.

Founded in 2015 and headquartered in Scottsdale, Arizona, Trusona demonstrated its Cloud Identity Suite at FinovateFall 2016. The technology provides three levels of service (see below) that enable Trusona to provide secure authentication for everything from basic daily login to more sensitive environments including SWIFT wires, HNW individual accounts, critical infrastructure logins, and healthcare records. All three solutions – and Trusona for Salesforce – leverage Trusona’s TruSanAR anti-replay technology, specifically designed to prevent session replay attacks.

Essential

  • Proves identity via email verification
  • Provides free, two-factor authentication

Executive

  • Proves identity via remote driver’s license and/or passport scanning
  • Provides three-factor authentication designed for account openings, wire transfers, system administrator logins

Elite

  • Proves identity via multiple forms of ID, including driver’s license and ePassport.
  • Provides four-factor authentication for critical and sensitive assets that is insured by A+ rated insurance carrier at up to $1 million per transaction

Trusona has raised $8 million in funding and includes Kleiner Perkins Caufield & Byers among its investors. The company added Karen Dayan as Chief Marketing Officer in April, the same month Eisen was named to the One World Identity (OWI) Top 100 Identity Leaders for 2017. The company began the year winning Info Security’s Products Guide Global Excellence Award for Tomorrow’s Technology Today.

Finovate Alumni News

On Finovate.com

  • Trusona Launches #NoPasswords for Salesforce.

Around the web

  • Expensify launches ScanSnap Integration in the U.K.
  • eMoney wins “Best Wealth Management Platform” Award.
  • Flywire (fka peerTransfer) teams with Cashnet to improve global payments for schools, students, and families.

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: Bots Break Out, AI Gets Personal, and Blockchain Buys the Farm

finovatefall2016_stage_crowdshot

Is it fair to judge a fintech conference based on the way it reflects, anticipates, and even uncovers what’s most important in the field? We think so, and were once again impressed by the way FinovateFall this month helped spread the story of fintech in the second half of 2016.

After all, we read about new technologies every day. But once the wow factor subsides, the question remains: Does it really work? Is anybody, any bank, any business in the real world actually putting this great looking, great sounding technology—these bots, this blockchain—to the test?

The good news is that the good news is true: new technologies like chatbots not only work, but were demonstrated live on stage by companies like Personetics (F16); Fiserv (F16); Kore (F16); and FinovateFall 2o16 Best of Show winner, Backbase (F16). We can even include companies like Clinc (F16) in this category of innovations that make it easier for people to communicate with technology. Clinc, which also won Best of Show honors at FinovateFall, developed and demonstrated an artificial intelligence-based natural language, using an intelligent assistant that earned rave reviews from both attendees and the media.

  • “Backbase promises 60-second customer on-boarding with new solution”—Banking Technology
  • “Bots Are Everywhere, But Are They Ready for Banking?”—Bank Innovation

What about the blockchain, you ask? Earlier this year at FinovateSpring, our attendees awarded a Best of Show trophy to BanQu (F16), a company that uses blockchain technology to help refugee and displaced persons re-establish community ties through identification and financial inclusion. This month at FinovateFall, we met Full Profile (F16), an Australian company leveraging the blockchain to support real-time settlement, financing, and provenance-tracking of agricultural commodities.

  • “Blockchain technology extends to agricultural contracts”—The Australian

But FinovateFall was about more than the most headline-grabbing technologies. As our Best of Show voting revealed, the appeal of technology to solve more everyday problems—be it buying a car or a gift card—remains strong as well.

“You’ve Got A Car!” and a Digital Revolution in Regifting

This certainly seems to be what Finovate attendees had in mind when it came to Finovate newcomer and Best of Show winner AutoGravity (F16). Founded last fall, the Irvine, California-based startup leverages the smartphone to make every aspect of the car-buying experience easier, from initial selection of a vehicle all the way through the financing process. As with a growing number of fintech solutions, AutoGravity combines several innovations we’ve seen individually in fintech demonstrations over the years—document scanning; the integration of social media with credit application; geolocation—to produce a solution that seeks to disrupt traditional auto financing as we know it.

Swych (F16), the mobile gifting platform that also won Best of Show, is another example of technology making magic out of the otherwise mundane. The company facilitates the purchase, sending, redemption, and exchange of gift cards using digital technology that puts the smartphone at the center of the process. Based out of Plano, Texas, Swych’s technology brings the gift card industry into the 21st century, potentially helping breathe new life into what is typically thought of as the “gift of last resort.”

  • “Mobile tech for automobile lending, gift card redeeming snag top prize at Finovate”—Bizjournals
  • Brief: FinovateFall 2016 Best of Show—CrowdfundInsider

Security: short and sweet

It is no exaggeration to say that Trusona (F16), a two-year-old security specialist out of Scottsdale, Arizona, provided one of the most well-received demos of the year. And a large part of what made it so successful (and such a must-watch) was the way the demo itself embodied the dream of a simple security solution that works the same way every single time.

By quickly and effortlessly authenticating and logging in repeatedly in the course of six minutes, Trusona CEO and founder Ori Eisen did what every person who has ever wracked their brain for their most recent password, or struggled to enter a captcha code on a mobile phone, wants out of a security solution: Make it fast, make it easy, make it work the same way every single time. With plenty of competition in the security space from innovators on stage and off, it is no surprise that Trusona, with its #nopassword campaign and did-I-mention-it’s-free offering, stood out from the pack.

  • “Trusona Wins ‘Best of Show’ at FinovateFall 2016—MarketWired

Everybody loves a (six-time) winner

No discussion of FinovateFall would be complete without a tip o’ the hat to MX (F16). The company took home its sixth Best of Show trophy, impressing audiences with its PowerSwitch technology that allows an FI to quickly establish a new card of reference for consumers across a variety of platforms such as Netflix, Uber, Hulu, and Amazon.com. This gives financial institutions a powerful tool in attracting new customers and in providing new options to existing customers. It also gives FIs potential access to what MX CEO Ryan Caldwell called “a mountain of interchange”—more than $200 billion in 2015 according to MX—that banks and credit unions can’t afford to miss.

  • “MX Achieves Innovation Milestone, Becomes First Company to Win Finovate Best of Show Six Times”—MX Blog

For more coverage on FinovateFall, check out our press roundup and our FinovateFall on Twitter post.

In other news

A hybrid debit/credit card

San Francisco-based startup Zero raised $2.5 million this week. While the investment sum is not particularly notable, what the company is doing certainly is.

Zero offers a Visa credit card that works in conjunction with a mobile app, but it’s not just another alt/neo/challenger bank. The differentiating factor is that Zero deducts money from the user’s account in real time just like a debit card, so there is no monthly bill. Unlike a debit card, however, transactions process on credit card rails so cardholders receive from 1% to 3% cash-back on purchases. It also touts no fees and pays higher interest on deposits (though they don’t yet specify how much) than traditional savings accounts.

The credit card is made out of solid metal and the app offers great looking PFM tools that forecast users’ balances into the future. Clearly, the startup has millennial users in its sights and claims to have the potential to increase a credit score, since there’s no way to default on payments.

The company makes money on merchant processing instead of charging fees to users. It also saves money on advertising by using a pyramid-scheme referral approach (which worked on me as I shamelessly promoted them on Facebook yesterday).

With recent talk of credit cards falling out of favor with millennials because of their hesitancy toward debt, Zero offers an option that provides the best of both worlds—the cash-back and credit-building opportunities that come with credit cards, and the real-time transactional capability of debit cards.

Another just-launched startup doing something similar is New York-based Debitize. However, Debitize does not issue a new credit card but instead aggregates customers’ existing credit-card transactions and initiates a real-time transfer from their checking account to cover the charges. Keep an eye on this space; we think we’ll see FIs picking up on this idea in the next couple of years (presuming regulators allow the practice).

New ACH regulation

The first phase of same-day ACH-transfer regulation lands today. And while the final phase will not hit until March 2018, all bank and credit union accounts must now accept same-day transfers.

To help banks move forward with the new rule, Dwolla (F11) launched a white-label API for same-day ACH. The API, which is in a pilot program, currently supports credits only. Dwolla will roll it out with more partners in Q4 of this year.

The Clearing House, the organization behind the ACH modernization, has partnered with IBM’s (F16) Power8 to serve as the hosting program for same-day ACH. U.K.-based Vocalink (purchased by Mastercard in July 2016) is set to deliver the platform, which will roll out to banks in the U.S. within the next year.

See What You Missed at FinovateFall: Demo Videos Now Available

29175062613_79b8fac89a_kAbove: MX jumps for joy to celebrate the company’s Best of Show win.

I should start this post by admitting that I missed FinovateFall this year. My wedding was the weekend after the show and there was no way to swing both. While I think I chose wisely, I certainly felt FinovateFall FOMO after reading Twitter highlights and press coverage.

If you, like me, missed out, we have the next best thing to being there. All of the 70 demos from FinovateFall are now available for free in our video archives and event photos are posted on Flickr. Also, there’s still time to catch more fintech this fall at our developer’s conference, FinDEVr (October 18 & 19) and our first event in Hong Kong, FinovateAsia (November 8).

The best place to start is by watching the six demos that won Best of Show:

AutoGravity

Backbase

Clinc

MX

Swych

Trusona

Thanks again to all the presenting companies who braved the Finovate stage and to all who attended. We’ll see you next year!

FinovateFall 2016 Best of Show Winners Announced

img_2018

Innovations in automobile financing that leverage mobile technology to empower buyers. Omnichannel solutions that enable customer onboarding in less than a minute. Intelligent personal assistants that hear and respond in natural, conversational language.

The Best of Show winners of FinovateFall 2016 are a compelling tribute to the diversity of our industry. From new strategies that help financial institutions leverage their data to provide better services, to platforms that transform the gift card from a present-of-last-resort to the perfect gift, to a multifaceted identity-solution capable of securing everything from your email account to SWIFT wires, it is an exciting time to be a part of this dynamic fusion of finance and technology.

And while we give due credit to those demos that drew the most enthusiastic praise from our record-breaking FinovateFall audience, know that our Best of Show winners represent the tip of the spear, the vanguard of a movement whose innovations will shape the way we save, spend, invest, and engage the financial world for years to come.

Here are our Best of Show award winners for FinovateFall 2016 (in alphabetic order):

AutoGravity Logo copyAutoGravity for its app that harnesses the power of the smartphone to enable users to take control of the automobile buying and financing experience.

Backbase---Hi-ResBackbase for its omnichannel banking platform that leverages optical character recognition and facial recognition to deliver 60-second onboarding.

clinc-logo-finovate-new copyClinc for its personal assistant for mobile banking, “Finie,” that uses advanced artificial intelligence and deep learning to communicate with users in natural, conversational language.

 

MX Logo copyMX for its innovative technology that enables FIs to acquire new data, as well as better and more effortlessly understand and analyze the data they already have.

 

Swych Logo copySwych for its mobile gifting platform that makes it easy for users to buy, send, upload, redeem, and exchange gift cards instantly and conveniently from their mobile devices.

Trusona Logo copyTrusona for its insured cloud identity suite with offerings that run the gamut from securing everyday logins to protecting the world’s most sensitive assets.

We had a great time at FinovateFall 2016 and hope you enjoyed our two-day conference, as well. A thousand thanks to our sponsors, our partners, our presenters, and, last but not least, the 1,600+ attendees who made this year’s FinovateFall our biggest event yet. We’ll see you again next year!


Notes on methodology:
1. Only audience members NOT associated with demoing companies were eligible to vote. Finovate employees did not vote.
2. Attendees were encouraged to note their favorites during each day. At the end of the last demo, they chose their three favorites.
3. The exact written instructions given to attendees: “Please rate (the companies) on the basis of demo quality and potential impact of the innovation demoed.”
4. The six companies appearing on the highest percentage of submitted ballots were named “Best of Show.”
5. Go here for a list of previous Best of Show winners through 2014. Best of Show winners from our 2015 and 2016 conferences are below:
FinovateEurope 2015
FinovateSpring 2015
FinovateFall 2015
FinovateEurope 2016
FinovateSpring 2016

FinovateFall Sneak Peek: Trusona

Trusona_homepage_Aug2016

FF2016-Logo-wdate-largeA look at the companies demoing live to 1,500+ fintech professionals on 8/9 September 2016. Register today.

Trusona provides the world’s first and only insured cloud-identity suite with an offering that is free to all consumers and is leading the #NoPassword revolution.

Features:

  • Leading the #NoPasswords Revolution
  • The only security solution backed by an A+ rated insurance carrier
  • The only solution with patented anti-replay technology

Why it’s great
Trusona Essential level is FREE for all consumers! This is our gift to the world as the leader of the #NoPasswords Revolution.

Trusona_OriEisenPresenters

Ori Eisen, CEO, Founder
Eisen has spent the last two decades fighting online crime, and is respected for his business knowledge and leadership. Prior to founding Trusona, Eisen founded 41st Parameter.
LinkedIn

 

Trusona_JohnBatesJohn Bates, VP of Sales
Bates is striving to make the world a safer place for children and joined Trusona to fight to make the Internet a safer place.
LinkedIn