ACI Worldwide Launches New Money Transfer System

Thumbnail image for ACIWorldwide.jpgCalling the latest version a collaborative effort between the company and customers, ACI Worldwide this week announced the release of Money Transfer System 5.0.

MTS 5.0 features include repair reporting, network validation tools, and the addition of global clearing channel such as KASSIP and SAIRE. KASSIP is the Kuwait Automated Settlement System for Inter-Participant Payments. SAIRE is the Saudi Arabian Riyal Interbank Express.

Additionally, the issues that financial institutions face with regard to sanctions checking have been addressed in MTS 5.0. The Enhanced Sanctions Filter provides SDN (Specially Designated Nationals) list storage and enrichment, real-time scanning, exception processing, and other services.

See ACI Worldwide’s most recent Finovate demo here.

SecondMarket and CircleUp Form Partnership

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SecondMarket, a secondary trading market for pre-IPO companies, announced today that it has partnered with CircleUp, an equity-based crowdfunding platform.

PandoDaily reported today that New York-based SecondMarket will cross-list companies raising funding on the CircleUp platform. This gives SecondMarket users the ability to invest in the equity of early-stage companies. So far, five companies have completed funding rounds on the CircleUp platform.

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This news comes three weeks after SecondMarket’s announcement of a similar partnership with AngelList.

SecondMarket demonstrated at FinovateStartup 2009.

Finovate Alumni News– January 11, 2013

  • iOSnoops reviews TradeHero Mobile.
  • Netbanker considers how Prosper, Zopa, and Lending Club have disrupted lending.
  • American Banker reports on NICE Systems’ launch of voice authentication technology. Watch its live demo at FinovateEurope Feb. 12 and 13.
  • P2P Lending News: Zopa CEO talks to BBC Radio.
  • BostInno talks with ImpulseSave CEO on how it can help with all kinds of New Year’s resolutions.
  • Equifax partners with DocuSign for easy e-sign and submission of Transcript of Tax Return form.
  • Fiserv enhances TradeFlow, its post-trade processing solution. Come to FinovateEurope in London to see the live demo of its new technology.
  • ZDNet looks at how miiCard is solving identity verification headaches.
  • Digital Journal reports on EZBOB’s battle with Amazon in the small business financing space.  See them at FinovateEurope in February.
  • Leadfusion collaborates with McCulluy Design Lab to get a new look.
  • Happy birthday, TSYS!  Company celebrates 30th anniversary on Friday.
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.

Crowdfunding (aka P2P Lending): The First Pure Internet-Induced Disruption in Financial Services

image I am an unabashed fan of peer-to-peer (P2P) finance (see notes 1, 2). In theory, it makes so much sense to tap Internet efficiencies to match the buyers and sellers of money. On the other hand, there are good reasons to have highly regulated intermediaries, although that system is far from perfect as well.  So, I’m looking forward to the hybrids we’ll be seeing in the next few decades.

Back to the present day. In the last 12 years of writing Online Banking Report, only two product launches have made me stop what I was doing and immediately start writing a new report:

  • PayPal’s launch of P2P payments in 1999 (OBR 54)
  • Prosper’s launch of P2P lending in 2006 (OBR 127; note 3)

And I believe P2P lending is way more disruptive than what PayPal has done. PayPal introduced a vastly improved front-end to bank checking accounts and credit cards. The company created an extremely valuable franchise (note 4), but the banking system is still intimately involved in most transactions. PayPal stole revenues from acquirers and held a few deposits, but for the most part, had little impact on card issuers.

That’s competition.

However, Prosper, Zopa, Lending Club and the other P2P lending pioneers created virtual banks (taking in deposits and lending the money out) completely separate from existing financial institutions.

That’s disruption.

And it’s about to get way more interesting as the concept takes off in the business financing/investing arena via what’s been called “crowdfunding” (note 5).

Bottom line: If you are a bank, learn to love crowdfunding and P2P. It’s disruptive, yes, but you can harness it to both help those who don’t qualify under your existing underwriting and increase your bottom line (note 6).

————————————

Notes:
Graphic: One of more than 50 books for sale at Amazon about Crowdfunding and  Kickstarter.
1. Unfortunately, I’ve backed only one loan so far, earning a nice return on my $100 loan in 2006.
2. We have published three reports in this area (OBR 127 in 2006, 148/149 in 2007, and SR-5 in 2009). We are working on our fourth. It will focus more on equity and debt crowdfunding for small and mid-sized businesses.
3. Zopa 2005 launch in the United Kingdom beat Prosper to market by almost a year.
4. eBay’s market cap is $60 billion, of which a significant chunk is attributed to PayPal.
5. There are hundreds of companies entering this space. We are most familiar with two Finovate alums involved in debt-based crowdfunding (SoMoLend and Rebirth Financial). And we’ve written about equity-crowdfunder CircleUp, which was also featured in the NY Times along with SoMoLend this week.     
6. Our latest P2P lending market forecast is contained in the current Online Banking Report here (Jan 2013, subscription).

Planwise and ReadyForZero Partner to Promote Debt Management as Part of Personal Finances

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PFM platform, planwise and debt management solution, ReadyForZero announced a partnership today.

As a part of the partnership, planwise is featuring ReadyForZero in its Products section (see screenshot below).

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ReadyForZero’s services are advertised to planwise users who indicate they hold debt. When I tested the product this morning, the ReadyForZero product option was offered only when I indicated I owed a balance on a loan or credit card.

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The two San Francisco-based startups have not disclosed the terms of the partnership.

To learn more about planwise and ReadyForZero, watch planwise’s FinovateFall 2011 demo and ReadyForZero’s FinovateFall 2011 demo.

Cachet Financial Solutions to Power Tyfone’s Remote Deposit Capture Offering

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Remote deposit capture solutions company, Cachet Financial Solutions announced today that it has partnered with mobile banking expert, Tyfone.

Through this partnership, Cachet’s remote deposit capture (RDC) solution, which uses Mitek’s technology to format check images, willThumbnail image for tyfone.jpg enable Tyfone to provide RDC services for its FI customers.

Midwest-based CoVantage Credit Union is the first to implement this solution, allowing its members to remotely deposit funds into their accounts.

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To learn more about Cachet Financial Solutions, watch its FinovateFall 2012 demo. Tyfone demoed at Finovate Startup 2008 and Mitek demoed at FinovateSpring 2012.

Thomson Reuters Helps FFIs with FATCA Compliance

Thumbnail image for Thumbnail image for ThomsonReutersLogo.jpgAre you a FFI (foreign financial institution) worried about the new FATCA regulations that went into effect on the first day of January 2013?

If so, Thomson Reuters has an app for that.

The company has unveiled a FATCA compliance kit to help financial institutions comply with the US Foreign Account Tax Compliance Act, or FATCA. This legislation mandates that FFIs identify individual US tax liability among their customers, and report it to the Internal Revenue Service.

According to the European Banking Federation, FATCA will cost those FFIs with more than 25 million accounts $250 million or more to implement. The Thomson Reuters for FATCA Solution allows banks to take advantage of established regulatory and tax problem-solving technologies to ensure compliance, proper reporting, and documentation.

See Thomson Reuters in their most recent Finovate demo here.

Finovate Alumni News– January 10, 2013

  • Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgIBM developerWorks features Rich Killmar from Keynote DeviceAnywhere.
  • Thomson Reuters unveils FATCA compliance toolkit.
  • Temenos is one of the most significant global banking platform vendors according to Forrester Research.
  • Check out Toshl Finance’s cool infographic on how people around the world earn and spend their money.
  • Money Smart Life blog reviews Personal Capital.
  • TIBCO Software announces partnership with University of Chicago Medicine.
  • Credit Union Journal reports: Congressional FCU Chooses Geezeo.
  • PlayMoolah launches Moolah It, a new iOS App.
  • Central Bank of Myanmar grants license to Standard Chartered Bank.
  • EZBOB to partner with ChannelGrabber.
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.

Last Chance for FinovateEurope 2013 Early-Bird Tickets — Register Before Friday to Reserve Your Seat and Save!

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FinovateEurope 2013 is only 4 weeks away and it is already clear that the conference is going to be our biggest and best European event yet.

With the expansion to two days this year, we’ve been able to select a ton of new fintech innovations (check out the presenter list) to debut live on stage. The latest ideas in security, marketing, mobile, online banking, PFM, payments, FX, investing, UX and much more will be showcased via our signature 7-minute demo format.

In addition to the great roster of presenters, the room is filling up fast with senior leaders from companies like:

  • ABN Amro
  • Accel Partners
  • AEGON
  • AIB
  • Aktif Investment Bank
  • Alfa-Bank
  • Alior Bank
  • Balderton Capital
  • Bank Hapoalim
  • Barclays Bank
  • BNP Paribas
  • BRE BANK
  • Capital One Europe
  • Celent
  • Cortal Consors
  • Datamonitor
  • Efma
  • Ernst & Young
  • Fidelity Investments
  • Gartner
  • IBM
  • IDC Financial Insights
  • ING
  • Jack Henry
  • KPMG
  • Liberty Bank
  • Lloyds Banking Group
  • MasterCard
  • Microsoft
  • Old Mutual
  • Ovum
  • PayPal
  • PostFinance
  • Rabobank
  • RBS
  • SKAGEN
  • Skandiabanken
  • Standard Life
  • Toyota Financial Svcs
  • UBS
  • Unicredit
  • Volksbank Bühl

If you’d like to join this group of leading executives and watch the cutting-edge of European fintech
debut, early-bird tickets are still available at
the discounted price of £1,095.00 (£100 off) through this Friday, January 11.

Tickets are limited (and we’re projecting a sell out at this point) so please lock in your seat today to guarantee your ability to attend (and these savings). We’ll see you in London in February!

FinovateEurope 2013 is sponsored by: Bluerock Consulting, Financial Technology Partners The Bancorp & Yodlee

FinovateEurope 2013 is partners with: BankersHub, Celent, Finance On Windows, Financial Services Innovation Centre, The Financial Services Club, and Hotwire PR 

Last Chance for FinovateEurope 2013 Early-Bird Tickets — Register Before Friday to Reserve Your Seat and Save £100!

btn1_ov.png

FinovateEurope 2013 is only 4 weeks away and it is already clear that the conference is going to be our biggest and best European event yet.

With the expansion to two days this year we’ve been able to select a ton of new fintech innovations (check out the presenter list) to debut live on stage. The latest ideas in security, marketing, mobile, online banking, PFM, payments, FX, investing, UX and much more will be showcased via our signature 7-minute demo format.

In addition to the great roster of presenters, the room is filling up fast with senior leaders from companies like:

  • ABN Amro
  • Accel Partners
  • AEGON
  • AIB
  • Aktif Investment Bank
  • Alfa-Bank
  • Alior Bank
  • Balderton Capital
  • Bank Hapoalim
  • Barclays Bank
  • BNP Paribas
  • BRE BANK
  • Capital One Europe
  • Celent
  • Cortal Consors
  • Datamonitor
  • Efma
  • Ernst & Young
  • Fidelity Investments
  • Gartner
  • IBM
  • IDC Financial Insights
  • ING
  • Jack Henry
  • KPMG
  • Liberty Bank
  • Lloyds Banking Group
  • MasterCard
  • Microsoft
  • Old Mutual
  • Ovum
  • PayPal
  • PostFinance
  • Rabobank
  • RBS
  • SKAGEN
  • Skandiabanken
  • Standard Life
  • Toyota Financial Svcs
  • UBS
  • Unicredit
  • Volksbank Bühl

If you’d like to join this group of leading executives and watch the cutting-edge of European fintech
debut, early-bird tickets are still available at
the discounted price of £1,095.00 (£100 off) through this Friday January 11th.

Tickets are limited (and we’re projecting a sell out at this point) so please lock in your seat today to guarantee your ability to attend (and these savings). We’ll see you in London in February!

FinovateEurope 2013 is sponsored by: Bluerock Consulting, Financial Technology Partners The Bancorp & Yodlee

FinovateEurope 2013 is partners with: BankersHub, Celent, Finance On Windows, Financial Services Innovation Centre, The Financial Services Club, and Hotwire PR 

Suncorp Selects FIS for ATM and POS Switching

FISLogo.jpgThe ability to manage both POS and ATM networks on a single platform has won FIS a deal with Australia’s Suncorp bank. In addition to managing the bank’s POS and ATM networks, FIS’s CONNEX will also be used to help the bank’s ongoing EMV rollout efforts.<

CONNEX helps financial institutions facilitate terminal driving, transaction acquiring, switching and authorization. The migration of Suncorp’s ATM transactions is planned for the first half of 2013.

A few interesting facts about Suncorp:

  • The fifth largest bank in Australia with more than $60 billion in assets
  • One of the top 25 companies in the Australian Stock Exchange
  • Has 450 offices and branches in Australia and New Zealand, and 2200 ATM access points

FIS has relationships with more than 14,000 institutions in more than 100 countries. See FIS’s most recent Finovate demos here and here.

PlayMoolah Launches Moolah It, a New iOS App

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Children’s financial education platform, PlayMoolah announced on its blog today the launch of a new iOS app, Moolah It.

The free app is aimed at helping children budget and prioritize their wish list.

Here are some screenshots:

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Screenshots from appshopper: <http://appshopper.com/lifestyle/moolah-it> Jan. 9, 2013

To learn more about PlayMoolah, watch its FinovateFall 2012 demo.