Month: July 2013

PayPal Reviews Second Quarter Performance

By Julie Muhn (@julieschicktanz) Posted on
Categories: PayPal

PayPalLogo.jpg

eBay’s PayPal has been busy so far this year, releasing the Chip & PIN version of its PayPal Here dongle and introducing its Cash for Registers program.

Today, it showed the fruits of those efforts in its second quarter performance metrics. Here are the highlights, as observed by PayPal president David Marcus in his blog post:

  • The more than 700 million transactions PayPal enabled during the three months is an all-time high for the company
  • The more than $827 million in international revenue represents a year-over-year growth rate of 21%

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PayPal last presented at FinovateEurope 2012 where it demoed its Instant Account Creation technology. Check out the video here.

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Finovate Alumni News– July 18, 2013

By Julie Muhn (@julieschicktanz) Posted on
Categories: ACI Worldwide, Check Point, Dwolla, eToro, Fiserv, InComm, IntelliResponse, Pangea Payments, SeedInvest, ShopKeep POS, TransferWise, Xero
  • Finovate-F-Logo.jpgPennsylvania-based First National Community Bank selects a core banking system from Fiserv.
  • Check Point Software launches 13000 Appliance solution set for high-performance data center cyber security.
  • Accounting and advisory firm William Buck and Xero partner to offer clients Xero as accounting solution of choice.
  • eToro releases Stockwatch for Android.
  • StreetFight Magazine features case study of ShopKeep POS use in cupcake bakery.
  • IntelliResponse announces VAR partnership with Australia-based BolderView.
  • SeedInvest CEO Ryan Feit talks with the Street.com about the effect of fund advertising rule changes on crowdfunders.
  • Built in Chicago blogger profiles Pangea Payments and the trillion dollar remittance market.
  • 2013 Payment Hub report names ACI Worldwide “Best in Class” in payments capability.
  • InComm Launches Pre-Top to Expand Availability of Prepaid Solutions.
  • TransferWise featured in American Banker column on the growing online/mobile payments business. 
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.

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ACI Worldwide, DBS Partner to Promote Online Banking Platform in Asia

By David Penn Posted on
Categories: ACI Worldwide

ACIWorldwide.jpg

ACI Worldwide’s expansion into Asia just reached a new milestone.

The company’s ACI Universal Online Banker and Global Trade Manager will be put to work powering the regional Internet and mobile banking platform of Singapore-based, DBS.

The platform, DBS IDEAL 3.0 helps businesses better manage their cash and trade transactions. Additionally, IDEAL 3.0:
  • Is used by more than 160,000 corporate customers in more than 100,000 institutions
  • Operates in Singapore, Hong Kong, China, India, Indonesia, Taiwan, and the United Kingdom
  • Processes more than 40 million transactions each year

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DBS has more than 250 branches in 15 markets. With more than 4 million customers, the bank has won Global Finance’s “Safest Bank in Asia” five years in a row from 2009-2013.  The company has 18,000 employees, and was founded in 1968 as the Development Bank of Singapore.
ACI Worldwide develops payment systems products for retail and wholesale banking, as well as retail businesses. The company serves more than 2,600 financial institutions, processing $12 trillion in payments daily. This includes transactions for 16 of the world’s top retailers, and all but one of the world’s 25 biggest banks.
ACI Worldwide demonstrated its Mobile Enterprise Banker for Tablets technology at FinovateFall 2011. See the company in action here.

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PicturePay to Power Mobile Bill Pay for 3Rivers Federal Credit Union

By David Penn Posted on
Categories: Allied Payment Network, Mitek

Thumbnail image for AlliedPaymentLogo.jpg

With its decision to deploy PicturePay, 3Rivers Federal Credit Union becomes the first credit union in the U.S. to adopt Allied Payment Network’s mobile bill pay solution.

PicturePay’s approach to mobile bill pay leverages the smartphone. Users take a picture of the bill and the imaging software – powered by the technology from another Finovate alum, Mitek – reads the data. All the user needs to do is enter the amount to be paid and the date to confirm payment.

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3Rivers Federal Credit Union has more than $750 million in assets, and more than 67,000 members in northern Indiana and northern Ohio. 3Rivers was founded in 1935, and is headquartered in Fort Wayne, Indiana.
In partnership with Malauzai Software, Allied Payment Network recently announced the availability of PicturePay as a standalone solution. The company has been active in fundraising this year, as well, picking up a total of more than $750,000 so far in 2013.
Allied Payment Network demoed its PicturePay technology as part of FinovateSpring 2013 in San Francisco. See the company’s presentation here.

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Finovate Alumni News– July 17, 2013

By David Penn Posted on
Categories: Azimo, DeviceFidelity, Realty Mogul, Virtual Piggy
  • FinovateLOGO.jpgAzimo, Realty Mogul, Virtual Piggy reach Grand Finale of the Innotribe Startup Challenge 2013 in Dubai.
  • MoneyGram agrees to be exclusive money transfer provider for DeviceFidelity’s moneto.
  • Ping Identity Pulls in $44 Million in Series F Funding for International Expansion.
  • MoneyDesktop Signs Wilson Bank & Trust to PFM.
  • Lowcards.com lists Manilla, Mint, PayPal, and Expensify as 4 of 5 top personal finance apps of 2013.
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.

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Tablet vs. Smartphone Mobile Banking Usage Data from Malauzai Software

By Jim Bruene Posted on
Categories: iPad, Mobile Banking

image I’ve always been a numbers junkie, so it’s much appreciated when companies send along snippets of proprietary data to share with readers. I have a few more items in the pipeline, so keep your slide decks handy.  

Today, we get a look at tablet vs. smartphone usage, courtesy of Malauzai Software. The data is from June 2013 (note 1) aggregated across 99 smaller banks and credit union clients with 98,000 total active mobile users (note 2). Some user behavior is significantly impacted by the Malauzai-powered app’s specific design while other behavior is more applicable to mobile banking users in general (see the comments below from Malauzai).  

  • Login frequency: In June, 1.2 million total logins occurred across 98,000 active iPad and smartphone (iPhone/Android) users. Both types logged in at the same rate of 3x per week.
  • Login failure: Surprisingly, the login failure rate is higher on iPads, 27% vs. 15%. 
    Why? It is mainly due to “fat-fingering” as most users are successful on their second login attempt. Malauzai believes that tablet users are less comfortable with their keyboards.
  • Session duration: iPad users spent 50% more time per session (105 seconds on average) compared to smartphone users (70 seconds).
  • Logging off:  On the smartphone, 21% regularly log off the device vs. 80% on the iPad. 
    Why? It may be due to the iPad being more of a shared device in a family or household. Also, the logoff button is more prominently displayed on the iPad.
  • Internal funds transfers: iPad users made transfers valued at 2.3x that of smartphone users. The average iPad user transferred just under $900 vs. about $400 via smartphone. 
    Why? Malauzai speculates (although they do NOT have customers’ balance-data to verify) that iPad users tend to keep higher balances and therefore have higher transfer volume. 
  • Transaction history: Transaction details are used by 73% of iPad users vs. 37% for smartphones. 
    Why: Malauzai believes it is caused by the transactional data being more readily available on the iPad due to its more-prominent display and larger text.
  • Branch/ATM lookup:  iPad users look up branches/ATMs 3x more frequently than smartphone users. 
    Why? The Locator on the iPad UI is more prominent, more user-friendly and has bigger graphics.

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Notes:
1. Malauzai has been publishing metrics for five months; see previous months here.
2. Clients include Air Academy FCU, Ameriana Bank (see inset), Centier Bank, City Bank of Texas, First Financial, Greater Texas FCU, and Walden Savings Bank. See our most recent post for more info.

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Ping Identity Pulls in $44 Million in Series F Funding for International Expansion

By Julie Muhn (@julieschicktanz) Posted on
Categories: Ping Identity

PingIdentityLogo.jpg

In the largest funding installment we’ve seen for a Finovate alumni this year, cloud identity management service Ping Identity pulled in $44 million in a Series F round, $29 million in equity and $15 million in debt according to Xconomy.

The round was led by DFJ Growth and W Capital Partners– the latter will join Ping Identity’s board of directors. 

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Other investors include:

  • General Catalyst Partners
  • Draper Fisher Jurvetson
  • Avista Partners
  • Triangle Peak Partners
  • SAP Ventures 
  • Appian Ventures

The debt financing was provided by Silicon Valley Bank.

The company, which counts Boeing, BMW, and Chevron as clients, has received a total of $78 million in funding and plans to use this round to help it expand internationally.

The Colorado-based company is considering filing for an IPO as early as 2014.

To learn more about Ping Identity, watch its FinovateEurope 2012 demo.

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Lendio and ProfitStars Team Up to Provide Small Business Financing Solutions

By David Penn Posted on
Categories: Lendio, ProfitStars

Thumbnail image for LendioLogo11.11.jpg

The partnership between Finovate alumni Lendio and ProfitStars provides small businesses with ProfitStars’s accounts-receivable financing solution, BusinessManager, as well as access to the company’s LendingNetwork alternative-financing referral program.

The goal is to make it easier for small businesses to obtain the capital they need to grow and expand. BusinessManager is a web-based financial program that lets businesses sell their accounts receivables to their bank at a discount on a daily basis.

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The LendingNetwork provides financing to creditworthy business customers through a network of more than 20 commercial providers. It serves as an option for those customers unable to access traditional lines of credit.
Lendio matches lenders with small businesses owners seeking financing. The company was founded by Brock Blake (CEO) and Trent Miskin (CTO) in 2006, and is based in South Jordan, Utah, near Salt Lake City. Lendio includes among its partners companies like legal zoom, Experian, and Dun & Bradstreet Credibility Corporation.

        

ProfitStars is a division of Jack Henry & Associates focusing on developing products and services designed to help financial institutions control risks, minimize costs, and grow revenue.
Lendio demonstrated its lending platform as part of the FinovateSpring 2011 show in San Francisco. See the company’s presentation here. ProfitStars demoed BudgetManager at the FinovateSpring 2012 show one year later. A video of the demo is available here.

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InComm Brings Ecommerce Shopping to Brick and Mortar Retail

By David Penn Posted on
Categories: InComm

incomm_logo.jpg

Why waste time wondering if and when e-commerce will make brick-and-mortar retailing obsolete? Why not blend the two instead, blurring the distinction for the benefit of merchants and consumers alike?

That’s the message behind InComm’s new sales program that encourages customers to make online purchases of items like downloadable music and ebooks while shopping in old-fashioned brick-and-mortar retailers.

The program relies on “point of purchase marketing” and the contemporary consumer’s omnipresent mobile device. Customers can use text messaging, an Internet browser, or a QR code scanner to retrieve the barcode of the digital item they are interested in purchasing. The cashier will scan the barcode at checkout, and the item can either be stored directly on the buyer’s mobile device, or delivered by e-mail.
Take a look at InComm’s In-Store Digital Solutions system at work.

       

The goal of the program is to provide brick-and-mortar merchants with an “expanded catalog” according to InComm In-Store Digital Solutions SVP, Thomas Corneliius. Ideally, the additional range of products available – both those traditionally bought and sold in brick-and-mortar shops and those traditionally bought and sold online – makes it that much harder for customers in a buying mood to leave the store empty-handed.
InComm was also in the news recently with the launch of its Cashtie API. Cashtime uses the merchant’s current POS infrastructure to link cash payments to software applications. The company has also been active on the merger and acquisition front, buying digital gift solutions company, Giftango, for an unspecified amount in January.
InComm demonstrated its mobile commerce platform at FinovateFall 2011 in New York. See the presentation here.

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MoneyDesktop Signs Wilson Bank & Trust to PFM

By Julie Muhn (@julieschicktanz) Posted on
Categories: MoneyDesktop

MoneyDesktopLogoNew.jpg

Today, Wilson Bank & Trust formally launched Utah-based MoneyDesktop’s PFM, which has been available to all account holders for free since March.

The Tennessee-based bank says the PFM is already gaining popularity, with more than 25% of its nearly 20,000 active online banking members* having used the tool in the first 3 months. 

Executive vice president of Wilson Bank & Trust, John McDearman, says that the bank spent 12 months researching different PFMs and selected MoneyDesktop in order to create a “wow” experience for customers. The bank has driven adoption by marketing the PFM via email, online, and inside its 25 branches located throughout middle Tennessee.

WilsonBankTrustAndMD.jpg

To get started, users log in with their existing online banking credentials. Their use of the PFM is tracked through a separate server once they start using the features. 

In addition to providing the PFM, the bank, which has more than $1.7 billion in assets, also announced it is using MoneyDesktop’s Insight & Target products that it revealed at FinovateSpring in May (see demo video below). It is one of the first financial institutions to take advantage of these services.

The video cannot be loaded as your browser does not support JavaScript.

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*active users are those who log into online banking at least one time per month.

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Finovate Alumni News– July 16, 2013

By Julie Muhn (@julieschicktanz) Posted on
Categories: ACI Worldwide, Allied Payment Network, Lendio, ProfitStars, Simple, Virtual Piggy
  • Finovate-F-Logo.jpgSimple celebrates first birthday with $1 billion in annual transactions.
  • Lendio will connect SMBs with ProfitStars’ BusinessManager solution and LendingNetwork program.
  • 3Rivers is the first credit union to deploy Allied Payment Network’s PicturePay mobile billpay solution.
  • ACI Worldwide partners with DBS to deliver online banking platform to corporate clients in Asia.
  • Payments Source reports: Virtual Piggy Enables Payments for Toy Robot Seller.
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.

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PFM: Playing the Trust Card

By Jim Bruene Posted on
Categories: Personal Financial Management

Having been involved in the PFM industry for two decades, I’ve long taken the position that it was the bank’s business to lose. While consumers may not always like their bank, most continue to trust them with their money. And that’s an advantage not easily overcome by newcomers. 

imageI was reminded of the trust factor when I looked at Change Sciences latest report on PFM usability (subscription). As you can see at right, the researcher charted Trust (horizontal axis) vs. Likelihood (to use the service).

The two most trustworthy PFM offerings, by a significant margin (+20%), were operated by banks:

  • PNC Virtual Wallet
  • Chase Blueprint

It was less clear how trustworthiness correlated with trial. In this 12-company study, users were most likely to try the most trusted site, PNC Virtual Wallet, after sampling it. But Chase, with the second most trusted site, was tied with less-trusted sites Mint and newcomer Pocketbook (headquartered in Singapore) for likelihood to try. Not surprisingly, many factors besides trust will impact trial. 

Bottom line: With only two bank-run PFMs in the chart, there isn’t nearly enough data to conclude that banks have an inherent trust advantage in personal financial management. And even if they do, it’s difficult to prove that trust actually LEADS to more usage (trust could simply be correlated, without causation).

Nevertheless, these two data points are encouraging for banks. Both PNC and Chase, who have invested millions on personal financial management, have managed to wow consumers with their offering. PNC Virtual Wallet has also previously finished on top of the Change Sciences UX scorecard.

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Note:
For more info, see the Online Banking Report PFM library (subscription required): PFM 4.0 (June 2012); PFM 3.0 (May 2010); Social Personal Finance (June 2007); Personal Finance Features for Online Banking (Aug 2006).

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