This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
FinovateMiddleEast begins next week, November 20-21, in Dubai, UAE. A few days ago, we introduced some of the themes that will dominate the discussion on Day One of our conference. Today we’ll take a look at what we’ve got in store for attendees on Day Two.
In addition to our live fintech demos (check out our FinovateMiddleEast Sneak Peek series for more information on our demoing companies), Day Two will feature a variety of conversations on topics ranging from challenger banks and digital disruption to small business banking and the future of work in an increasingly automated world.
With a wave of new digital banks entering the sector, how are these new challengers using digital and technology to improve the customer experience?
How, as an incumbent bank, can you take inspiration and reinvent your organization in the face of the threats challenger banks present?
What can we learn from exploring the different models of challenger bank that are emerging, their advantages, and how to harness elements of their model to tackle customer pain points better?
Juvo, a company that specializes in building financial identities for the underbanked, announced this week that it has forged a strategic partnership with global mobile commerce company DOCOMO Digital. The collaboration will marry Juvo’s financial-identity-as-a-service capabilities with DOCOMO Digital’s payments platform to give prepaid mobile users broader payment options when it comes to paying for digital services.
The partnership specifically helps address the challenge that many prepaid mobile users in emerging markets face when accessing digital services. Many users abandon purchases because of insufficient prepaid balances or lack of other payment options such as credit cards. Working together, Juvo and DOCOMO Digital will now offer micro-credits, in real-time, to allow the transactions to be completed without requiring the user to top-up their balance immediately.
Founder and CEO of Juvo Steve Polsky described the company’s mission as creating a “YES economy” that provides financial identities for the 68% of adults around the world who are unable to participate in the regular economy because they do not have a credit history. “By creating financial identities, Juvo empowers our partners with the data to say YES to more of their customers, opening up new revenue streams,” Polsky said.
The emerging markets are a particular focus for the initiative. In a statement, DOCOMO Digital CEO Jonathan Kriegel said the partnership will make it easier to provide financial services to the underbanked in these regions, where access to mobile and data services is on the rise. “Our partnership with Juvo aligns perfectly with our endeavor to make the mobile commerce experience seamless for consumers, while unlocking more value for mobile operators and digital merchants,” Kriegel said.
Juvo introduced its Financial Identity as a Service (FiDaaS) platform in September. The solution uses alternative, typically untapped data sources to establish creditworthiness and build financial identities for the underbanked that will help them access financial services. Juvo’s platform presently updates more than five billion data points daily for 200 million consumers on four continents.
Juvo demonstrated its Identity Scoring solution at FinovateFall 2016. At the conference, Polsky and VP of Product Jason Robinson showed how the technology leverages consumer internet “know-how,” data science and game mechanics to identify mobile users and encourage them to engage with their mobile operator. The cloud-based solution also offers intelligence and reporting tools to give mobile operators the analytics and insights they need to boost engagement.
Named to the Deloitte 2019 Technology Fast 500 earlier this month and honored by Frost & Sullivan for Strategic Excellence in Emerging Markets in July, Juvo was founded in 2014 and is headquartered in San Francisco, California. The company has raised $54 million in funding, and includes Samsung NEXT, Wing Venture Capital, and New Enterprise Associates among its investors.
Tradeshiftintegrates with fraud protection specialist SiS-id to reduce payments fraud.
XerolaunchesPay with TransferWise, a new domestic bill payment solution to help U.K. customers pay and manage bills.
Pendo Systemsteams with WSN to help customers navigate digital transformation.
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.
How many partners does it take to help drive a national effort to boost youth financial literacy?
According to news from Finovate Best of Show winner Zogo, eleven is a great place to start.
Zogo announced late last month that it has teamed up with 11 community banks and credit unions across 12 different states to offer its teen financial literacy app to customers and members as a branded offering. Each institution will get an access code specific to their bank or credit union that they provide to the users of the app. Once the code is entered, the Zogo app becomes branded with the institution’s logo, helping create a more unique, partner-specific experience for the customer.
“With Zogo, we wanted to create a financial education experience our peers would actually use,” Zogo co-founder and CEO Bolun Li said. “We are excited to partner with community-focused financial institutions to bring this vision to life.”
The app works by guiding users through more than 300 educational micro-modules that help them meet the national standards for financial literacy. These include topics such as using credit, saving, and financial investing. Successfully completing a module earns the user points that can be redeemed in the form of gift cards. Zogo won Best of Show honors at FinovateFall in September for its live demo of the app, which leverages behavioral economic research developed at Duke University in North Carolina to help foster literacy in younger adults.
The firms that will be using the app as early as this year are:
CommunityWide FCU (Indiana)
Diamond CU (Pennsylvania)
First Bank & Trust (Louisiana)
Magnolia FCU (Mississippi)
MassMutual FCU (Massachusetts)
North Star Community CU (North Dakota)
Pen Air FCU (Florida)
Pyramid FCU (Arizona)
RelyOn CU (Texas)
Southern Chautauqua FCU (New York)
West Town Bank & Trust (Illinois, North Carolina)
Founded in 2018, Zogo has raised $295,000 in pre-seed funding, and is backed by Techstars and MetLife. In addition to its Finovate Best of Show honors, Zogo was the winner of the National Association of Credit Union Service Organizations (NACUSO) 7th Annual Next Big Idea contest earlier this year.
“Zogo is such a timely application, built to connect with young adults as they are beginning to learn the value of money,” NACUSO President and former USAA Bank CEO Jack Antonini said. “Delivered through ubiquitous mobile phone, this app can help credit unions capture new members, while teaching and reinforcing responsible financial habits.”
Intelligent Automation software provider Kofax is the latest company to leverage artificial intelligence and machine learning to enhance the capabilities of its solutions. The company announced this week that it is using AI and ML – along with natural language processing (NLP) – to add sentiment analysis and entity extraction to its intelligent automation offering. This improvement will make it easier for customers using Kofax’s technology to better understand and derive value from unstructured content.
“With new AI capabilities to process structured and unstructured data as well as understand intent and sentiment, Kofax is unrivalled in our ability to help enterprises glean greater insights from any type of content, react quicker to customer needs, and deliver a significantly better experience,” Kofax Chief Strategy Officer Chris Huff said.
Sentiment analysis enables organizations to discern the intent and emotion in the unstructured language of emails, legal documents, social media, and customer support queries. Entity extraction adds the ability to locate key elements in unstructured data and classify it into pre-defined categories. Kofax referred to it as the ability to easily locate “people, places, and things” from unstructured data.
The solution will enable organizations to manage the challenge of processing sizable amounts of unstructured and semi-structured data, alleviating the need for manual review of documents. With the ability to extract data in real-time, companies will see increases in productivity and efficiency while benefiting from deeper insights into customer behavior and preferences.
“Our investment in AI technologies to complement rules-based automation is paying off for our 25,000+ customers who’ve come to rely on our experience, dependability, and reliability for achieving true digital transformation at scale,” Huff added.
Founded in 1991 and acquired by Lexmark in 2015, Kofax launched its intelligent automation software platform and marketplace earlier this year. The technology automates end-to-end business operations at scale, and enables companies that have made a commitment to digital technology to further increase efficiency and productivity via automation.
“Kofax’s Intelligent Automation platform has driven excitement, and more energy around further adoption and expansion of the program,” Mitsubishi UFJ Financial Group’s Yoshiaki Nishita said. “In addition, our employee mindset is changing as well. They’re no longer concerned automation will replace them. They see it as an extension of themselves. Ultimately it’s become a fundamental shift in their thinking.”
Kofax demonstrated the KYC Automation with RPA extension of its TotalAgility platform at FinovateSpring 2016. The technology uses existing API infrastructure – or its own Synthetic API capability if necessary – to help organizations meet KYC requirements and fight financial fraud.
Kick off your high-heeled sneakers – fintech’s got a brand new podcast.
The new program, the Finovate Podcast, was launched this fall by host Greg Palmer, Finovate VP of Strategy. New episodes of the show are released twice a week on Mondays and Wednesdays.
We talked with Greg about what the Finovate Podcast brings to the fintech community, what topics the podcast will focus on, and what guests the podcast will feature in the weeks and months to come.
Finovate: You just posted your 14th Finovate podcast. What kind of reception has the podcast received from the fintech community so far?
Greg Palmer: So far the reception has been really positive! Certain episodes have been more popular than others, but listeners seem to be responding well to the format. Part of the reason I wanted to do this podcast in the first place was because I feel like I’m always talking to interesting people who know so much more than I do, and I wanted to share their insights with a broader audience.
I’m finding that a lot of people aren’t really aware that some of the things that they take for granted would surprise others in the space, and it’s always fun when we can uncover something like that. And on the other side, the folks I’m interviewing all seem to believe that I’m making them sound smart – they are smart, of course, but I’m glad I’m making them sound like it!
Finovate: How does the Finovate podcast differ from some of the other fintech or technology podcasts out there?
Palmer: A lot of podcasts in the space are longer-form, and require a lot more time and attention. I deliberately wanted to create a podcast that was shorter, punchier, and more efficient. Partly that’s because of how my brain has been wired after working at Finovate for so long, and partly it’s because I think that’s the show I would want to listen to. Our episodes top out at about 13 minutes, which makes them a lot more digestible. And just like with the content on stage at Finovate events, if an episode isn’t your cup of tea, no worries, the next one will have a completely different focus.
Finovate: Who are some of the guests you’ve already had on the program? If someone were to go back and only listen to one or two of your previous podcasts, which ones would you highlight and why?
Palmer: We’ve already had a number of great guests, including our Best of Show winners from FinovateSpring 2019, and some non-product folks like Ghela Boskovitch, Karen Mills, Wayne Miller, and Alissa Knight. If you were going to start with one, I’d take the Ghela one first, she’s such a fascinating person, and we were able to get into some really good stuff on our first chat. Karen Mills was great, and so was Alissa Knight. I’m not supposed to play favorites with the Best of Show winners, but I really enjoyed speaking with Jeff LoCastro of Neener Analytics. Kevin Gosschalk from Arkose Labs was another fun one.
Finovate: Podcasts are an increasingly popular media channel. What can podcasts do to help stimulate interest in, conversation about, and broader coverage of financial technology?
Palmer: For me it comes back to the difference between the way people converse vs. the way they communicate in writing or other channels. I think fintech as an industry has a lot of mystique around it, and some of the concepts can be really intimidating. That intimidation can put people off or keep them from engaging with solutions that they should. A conversational podcast can really help to make some of the basic concepts easy to understand, and it can humanize the people behind the tech, which really helps. The more open, honest conversations we can have about the tech that’s driving the space, the better it is for everybody, and that’s where a podcast can really be an important asset.
Finovate: How has the podcast experience been for you? You are typically either on the stage talking to large audiences or behind the scenes working with startups. What do you get to do differently as a podcast host that you enjoy the most?
Palmer: I have to say I love it, and not just because I got to go out and buy some cool new audio toys to play with! My role on stage at Finovate events is to put other people in a position to shine, and my work behind the scenes with presenters ahead of time has very much the same goal. I want the people who come across our stage to be able to reach the audience in a meaningful way and create a real connection with them, even if they only have seven minutes in which to do it.
In the podcast, though, I get to be a more visible part of the conversation, which I appreciate, and it lets me try out some of my own thoughts on the space in a way that I haven’t been able to before. I think the biggest change since I’ve been doing the podcast, though, is the way I look at the people I interact with. Now that I have an amplifying outlet for the insights that I discover, I’ve started to look at people through this lens of “What can you tell my audience? What do you know that other people don’t know?” It’s a really interesting way to talk to people, and in my limited experience so far, I’m finding that I’m learning a lot myself as I ask those questions in my own head.
Finovate: Where do you see the Finovate podcast a year or two from now? What are your goals for the program?
Palmer: I want to grow the show, obviously, and I want to keep bringing a variety of guests in from all across the fintech ecosystem. My ultimate goal, though, is to use this platform as a way to share knowledge, and push the ecosystem to be better. There are a lot of exciting aspects of fintech, but there is so much work to do, and I hope my podcast can help people move forward in a confident way. If the Finovate Podcast can get to a point where it’s helping to inspire people, excite people, or even scare them a little bit, then it’s a huge success in my book.
Find out more about the Finovate Podcast. Want to amplify your message? Get involved as a supporter of the show.
New York-based Apple Bank has selected FIS and its IBS system for its new core banking setup and will be moving to a hosted platform as part of a major transformation program, reports Alex Hamilton of Fintech Futures, Finovate’s sister publication.
According to FIS, the bank wanted to modernize its in-house technology with a new core platform. IBS will be deployed across the institution’s mobile banking, branch and ATM channels.
Apple Bank, which has 79 branches and assets of more than $15 billion, is the second-largest state-chartered savings bank in New York State.
“It’s all about the experience,” said Aditya Kishore, EVP and CTO of Apple Bank. “We chose the FIS IBS core banking platform because it enables us to deliver that consistent, seamless customer experience.”
Rob Lee, head of digital and banking at FIS, added that the vendor is confident that IBS will provide Apple Bank with a technology platform it needs “to support its growth well into the future.”
FIS demonstrated its Cardless Cash solution at FinovateFall 2016. Founded in 1968 and headquartered in Jacksonville, Florida, the company acquired payments firm – and fellow Finovate alum – Worldpay in March for $34 billion.
“Scale matters in our rapidly changing industry,” FIS Chairman, President, and CEO Gary Norcross explained when the Worldpay deal was announced. “Upon closing later this year, our two powerhouse organizations will combine forces to offer a customer-driven combination of scale, global presence, and the industry’s broadest range of global financial solutions.”
Identity verification innovator Jumio is working with Philippines-based remittance provider I-Remit to help the company enhance both digital onboarding and KYC. I-Remit is the largest Filipino-owned non-bank remittances provider and will leverage technology from Jumio to provide identity verification for its IREMITX money transfer platform.
“It’s imperative that the remittance industry, and the financial services world at large, streamlines the digital onboarding process for customers,” Jumio vice president for Asia Pacific Frederic Ho said. “Jumio is happy to partner with I-Remit in order to create an intuitive and secure digital experience for their global customer base, offering bank-grade security, dramatically faster verification, and increased conversions.”
Jumio combines face-based biometrics, certified 3D liveness detection, and selfie-based authentication to provide enterprises with a secure and seamless way to verify the real-world identities of their customers. The company’s trusted-identity-as-a-service solutions leverage augmented intelligence and machine learning to help companies boost conversions, prevent fraud and account takeover, and meet key compliance needs and directives from AML and KYC to GDPR and PSD2.
I-Remit EVP of International Treasury Ron Benito credited Jumio’s technology for addressing two of the company’s biggest challenges: onboarding scalability and customer experience. “Jumio saves us money and time, provides eKYC speed and precision, and the customer onboarding experience is superior,” Benito said.
Founded in 2001, I-Remit has a network of 1,000+ subsidiaries, branches, and agents in 23 countries and territories in Asia, North America, Europe, and the Middle East. In addition to working with Jumio, I-Remit has partnered with Finovate alum Ripple, making it the first Filipino-owned company to leverage blockchain technology to conduct cross-border money transfers.
Teaming up with I-Remit is the latest international collaboration for the Palo Alto, California-based company. Over the summer, Jumio partnered with BTG Pactual, helping the Brazilian investment bank improve its onboarding processes. The company also collaborated with Bahrain-based Bank ABC, one of MENA’s leading international banks, to provide identity verification for the mobile-only bank.
Jumio’s partnership news comes less than a month after the company announced the beta release of its first, real-time, automated identity verification solution, Jumio Go. The technology gives companies a secure and reliable method of verifying remote logins. Company president Robert Prigge indicated that offering a fully-automated identity verification solution had always been a matter of “when, rather than if” for Jumio and highlighted the role of certified liveness detection to provide a higher level of defense against deepfakes and other spoofing attacks. “Jumio Go prevents bad actors and bots from creating fake accounts thanks to our embedded liveness detection,” Prigge said, “which is a powerful deterrent for fraudsters and cybercriminal.”
Jumio demonstrated its Netverify identity verification solution at FinovateAsia last year. The technology establishes that the person behind a transaction is both present and who they say they are by comparing a selfie to the photograph on government-issued ID. Netverify uses liveness detection to ensure “presentness” and verifies the authenticity of the ID document, as well.
Founded in 2010, Jumio was acquired by Centana Growth Partners in 2016. Since inception, Jumio has verified more than 200 million identities issued by more than 200 countries and territories for real-time mobile and online transactions.
How can technology make the movement of money more efficient and secure? How can financial inclusion and financial wellness lead to more prosperity and happiness for more people?
At FinovateMiddleEast next week (November 20-21) in Dubai, we’ll answer these and other questions as we investigate the current state of fintech innovation in the Middle East. Below is a sample of some of the sessions we’ll feature on Day One of the conference. We’ll take a look at our Day Two agenda later this week.
Looking ahead to the next 10 years of banking innovation, as well as walking you through the last 10 years of the world and banking digital transformation, this keynote presentation will show the context and tangible examples of state of the art digital implementations in financial institutions across three continents, and give you an outlook into future developments.
With an ever-increasing number of startups bringing new, agile and fresh approaches to traditional processes, and banks bringing the visibility, trust and backing to deliver innovation, how do you assess which model of partnership will work for you?
Assessing the leaders seeking to fill the funding gap in the fintech ecosystem
Exploring the current conditions to make fintech development increasingly viable
Supporting fintech from the outset and identifying investment opportunities
Examining how regulatory changes are incentivizing growth: looking to accelerators and sandboxes to incentivize growth
Overcoming the funding challenges for financial innovation, and assessing how far we can expect funding gaps to be filled as investment arms continue to emerge
Learning from overseas: how VCs across the globe approach funding, and what can be gleaned
Understanding how the VC ecosystem will continue to evolve in the region
Understanding the new customer-centric, experience-based economy, and adapting accordingly
Working at speed to meet customer needs in exciting and relevant ways
Embedding client excellence into company mindsets: moving from a process-led to customer-led culture, and empowering teams to put the customer at the centre of business decisions
Managing client experience with limited budgets: overcoming hurdles to deliver customer satisfaction
Personalizing interactions and devising cross-selling models: making the most of your customer interactions
Exploring the importance of increase digital touchpoints to improve efficiency and meet customer expectations
Harnessing digital services can enhance customer satisfaction and drive loyalty
Why does innovation sometimes need time and patience? Some experiences from the wealth management area.
Innovation is kind of like the giant leap for mankind – sometimes you make it by chance and change history, but more often it does takes a lot of patience and many small steps for the “mooonshot thinking” to materialize. And interestingly, what you achieve alongside your long march may be more successful than what you get in the end…
Defining the regulatory priorities of the region, and where governments are becoming increasingly involved.
Overcoming the challenges of meeting different regulatory expectations to allow for scaling.
How do regulations in different regions differ, and what can we expect moving forward?
Now that sandboxes are established in the region, what have the regulators’ experiences been to date, what do companies need to know ahead of applying, and what trends are regulators seeing amongst applications to sandboxes?
Transforming the customer experience: an inside-out and outside-in approach for true customer-centricity
An outside-in approach means creating experiences for customers and establishing what your customers are looking for. An inside-out approach means determining how organizations need to change the way we do things.
JumioPartners with Philippines Remittance Provider I-Remit
Around the web
Sezzle’s Karen Hartje wins recognition from Minneapolis/St. Paul Business Journal as its 2019 CFO of the Year.
FISearns number one ranking for risk management and compliance technology solutions from Chartis RiskTech100 for the fifth year in a row.
Kineticaannounces integration of NVIDIA RAPIDS to enhance performance of its Active Analytics Platform.
Fintech Finance interviewsPersonetics’ President of the Americas Jody Bhagat.
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.
Of the 500 fastest growing technology companies in North America right now, how many have demonstrated their technology live on the Finovate stage?
The answer, courtesy of Deloitte’s just-released 2019 Technology Fast 500 ranking, is a full, baker’s dozen of thirteen innovative firms that have introduced their solutions to Finovate audiences. Update: 11/13: Make that 14 companies!
“This year marks the 25th anniversary of Deloitte’s Technology Fast 500, so we are especially pleased to announce and congratulate the 2019 winners,” Deloitte Vice Chairman Sandra Shirai said. “Once again, we saw innovation across the board, with software companies continuing their dominance of the top ten. It’s always inspiring to see how the Fast 500 companies are transforming business and the world we live and work in.”
Making the top 20 of Finovate alums making the cut was Unison, which made its Finovate debut at FinovateSpring in 2017, winning Best of Show. Unison’s HomeBuyer and HomeOwner solutions help make homes more affordable and home equity easier and less expensive to access.
Also notable on Deloitte’s list is the appearance of two of our newest alums – SheerID and EVERFI – which demonstrated their solutions earlier this year at FinovateSpring.
Check out all the Finovate alums that made the list below. We’ve included their Technology Fast 500 rank, three-year revenue growth rate, headquarters location, and a link to the company’s most recent Finovate demo video.
As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.
Fresh off a successful return to Singapore for FinovateAsia, we are happy to announce that FinovateMiddleEast will be back in Dubai later this month, November 20 and 21. For more information about our upcoming fintech conference in the UAE, visit our FinovateMiddleEast page today.
Middle East and Northern Africa
Saudi Arabia’s Riyad Bank invests $26.7 million in new fintech startup investment program.
BankDhofar signs partnership agreement with Oman-based fintech TelyPay.
Central Bank of UAE considers new fintech office to help drive innovation in financial services.
Central and Southern Asia
A new B2B fintech program for Indian fintechs, FT Slingshot, launched at Hong Kong FinTech Week.
Mumbai, India’s financial capital, is seeking to establish itself as the countr’s fintech hub, as well.
Eight Indian fintechs, including Paytm and OlaMoney, earn spots in the KPMG and H2 Ventures Fintech 100 list.
Latin America and the Caribbean
Mexican cryptoexchange Bitrus introduces new e-wallet geared toward unbanked population.
Creditas, a Brazilian digital consumer lending platform, opens new offices in Valencia, Spain.
Born2Invest looks at the growth of the fintech sector in Argentina.
Asia-Pacific
Tandem Bank, a challenger bank based in the U.K., announces plans for an expansion to Hong Kong.
Vietnam’s TPBank forges agreement with Ripple’s RippleNet.
International visitors to China have access to a new prepaid card service run by Alipay and supported by Bank of Shanghai.
Sub-Saharan Africa
South African fintech iKhokha offers a blunt assessment of the country’s struggle to attract the talent necessary to grow its fintech industry.
The U.K. announces plans to deepen fintech partnership with Nigeria and other Africa nations.
Andrew Takyi-Appiah, CEO of Ghana-based Zeepay, talks about the business of remittances and its recent partnership with Moneygram.
