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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Conversational AI Fintech ClincRaises $52 Million in Series B.
Kabbage and Azlo Launch Mission Street Capital to Help Fund SMEs.
Around the web
Mastercardunveils its Mastercard Innovation Engine, an API-based platform to enable easier deployment of digital customer experiences.
Sezzleteams up with Bank of America Merchant Services, who will serve as the fintech’s digital card processor.
Plaidearns recognition as one of the Best Workplaces from Inc.com.
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.
Financial crime specialist TruNarrative is partnering with identity verification innovator Jumio to bolster its fraud detection and customer onboarding platform. The integration will enable TruNarrative’s existing customers and prospects to verify the authenticity of more than 3,300 ID document types from more than 200 countries and territories.
“We are very pleased to welcome Jumio as a partner within our Appstore,” TruNarrative CEO John Lord said. “The service helps our customers comply with their obligation to verify that their customers are who they say they are, enhancing the use of traditional evidence databases and document verification.”
Jumio’s identity verification and authentication solution combines AI, OCR, and biometrics to help organizations fight fraud, onboard customers faster, and remain compliant. The company’s AI-powered, Trusted-Identity-as-a-Service technology provides ID, identity, and document verification and authentication. Jumio also offers a new screening service – unveiled this spring – that combines ID verification and complete AML screening and monitoring.
Jumio head of worldwide partnerships Stephen Kearney explained the partnership as a way for businesses to provide a comprehensive anti-fraud solution without relying on multiple “disparate” solutions. “With TruNarrative, Jumio’s identity proofing, fraud detection, and eKYC solutions can be easily integrated into a single platform that enables these organizations to better defend themselves against financial crime,” he said.
Jumio demonstrated its Netverify identity verification solution at FinovateAsia 2018 in Hong Kong. The technology helps establish that the individual behind a transaction is physically present and is who they say they are by using a combination of ID and identity verification, as well as liveness detection.
More recently, Jumio reported that challenger bank Monzo would use Netverify for customer identity authentication. We highlighted Jumio this spring in our look at companies that can help banks compete against the new credit card from Apple.
Founded in 2010 and based in Palo Alto, California, Jumio has raised more than $55 million in funding from investors including Millennium Technology Value Partners and Centana Growth Partners, which acquired Jumio in 2016.
As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from Around the World is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.
Sub-Saharan Africa
DisruptAfrica profiles TeamApt and its role as the “go to” fintech startup for Nigeria banks.
Nairobi, Kenya-based CarePay International raises $44.7 million (€40 million) for expansion into new markets.
expressPay goes live with Visa on mobile in Ghana.
Central and Eastern Europe
Austrian fintech Bitpanda launches gold and silver trading on its platform.
Revolutannounces plans to pursue banking license in Russia.
Nayax introduces its new cashless payment integration, the Bluecode payments solution, in Austria and Germany.
Middle East and Northern Africa
Visateams up with Bahrain FinTech Bay to drive fintech innovation in the country.
Saudi Payments inks memorandum of understanding to introduce QR code-based national payment system in Saudi Arabia.
National Bank of Bahrain (NBB) says it is the first MENA-based bank to launch an open banking offering.
Central and Southern Asia
PayPal India unveils its OneTouch feature which, integrated with Google Smart Lock, enables users to register their Android device with PayPal and remain logged in for all subsequent PayPall purchases on that device.
Mastercardpledges partnerships with Indian fintechs via its India Investment Fund.
Latin America and the Caribbean
Descendants of the Medici banking family launch a digital bank, Medici Bank, in Puerto Rico.
Japan’s SoftBank invests $20 million in Mexican payments innovator Clip.
Scotiabank’s fintech accelerator, FactoryA, introduces its incoming cohort of startups from Chile, Colombia, and Mexico.
Asia-Pacific
Singapore-based YouTrip raises $25.5 million for its multi-currency payments app.
Hong Kong Monetary Authority issues another four virtual bank licenses.
South Korea unveils new regulations to empower robo-advisory services.
Curated online platform for alternative investments Artivest announced a major new partnership today. The firm has been selected by institutional investment manager LaSalle to help it enter the retail market for privately-held value-added real estate investment programs via a closed end fund.
“We are delighted to find a compelling platform to seamlessly connect financial advisors and qualified high net worth investors to our flagship, U.S. value-add investment strategy,” Jason Kern, CEO of the Americas at LaSalle Investment Management, said.
One of the largest real estate investment managers in the world with $65 billion in assets under management, LaSalle will leverage Artivest’s Open Network to make its offerings available for investment by advisors and qualified purchasers. In an investment environment increasingly characterized by passive management and low-fee ETFs, LaSalle sees Artivest as a partner to help it meet investor demand for alternative solutions that can provide outperformance.
Artivest combines expert insights, extensive due diligence, and a streamlined investor experience to improve the process of finding, evaluating, and investing in leading private funds for advisors and fund managers. The solution reduces the complexity of private fund investing, helping clients save time and more readily identify opportunities that are most compatible with their investment goals.
“Our platform brings together data-driven insights, proprietary technology, and robust diligence expertise to deliver a simplified, efficient experience and remove the barriers that have traditionally stood in the way of advisors and investors seeking access to alternatives,” Artivest founder and CEO James Waldinger said.
Artivest demonstrated its curated investment platform at FinovateSpring 2014. Headquartered in New York City and founded in 2012, the company completed a merger with alternative investment manager Altegris last summer that made the company one of the biggest independent alternative investment solution providers in the world.
Earlier this year, Artivest announced that was expanding its services to include both product structuring and fund distribution solutions for asset and wealth managers. Back in December, Chicago-based Northern Trust added private market capabilities to its ArcLine Alternatives platform for its wealth management customers courtesy of a partnership with Artivest.
With more than $17 million in funding, Artivest includes 500 Startups, RRE Ventures, Founders Fund, Kohlberg Kravis Roberts, and Signatures Capital among its investors.
BBVA-backed start-up Holvi will expand its offering to micro businesses in Ireland, Italy, Belgium, France and the Netherlands after reaching a 150,000-customer milestone, reportsJane Connolly of Fintech Futures (Finovate’s sister publication).
Claiming to provide small business banking services for “everyday entrepreneurs”, the Finnish firm has experienced significant growth, particularly since its acquisition by global bank BBVA in 2016.
Holvi has been providing business banking in Germany, Austria and Finland for over three years and has seen year-on-year growth of 60% from 2017 to 2018.
CEO Antti-Jussi Suominen said: “2019 is set to be an exciting year for Holvi. Having become the leading business banking service for micro-entrepreneurs in our home market of Finland, and rapidly growing in Austria and Germany, we are setting our sights on the rest of Europe.”
Holvi caters for customers such as freelancers, small family-run businesses and gig economy workers, through a combination of banking, a Mastercard and smart digital business tools.
The firm is authorized to operate across the European Economic Area (EEA) under the Payment Services Directive by the Finnish Financial Supervisory Authority (FSA).
Holvi was founded in 2011. The Helsinki, Finland-based company demonstrated its technology at FinovateEurope 2013, and was acquired by fellow Finovate alum BBVA in 2016.
This week marks the official launch of SparkPost Signals, the data-powered predictive email intelligence solution from Columbia, Maryland-based Finovate newcomer, SparkPost. The company announced earlier this week that its platform, which helps users gain 4x higher engagement while sending 70% less email, is now available via the SparkPost Cloud, as well as to customers using SparkPost’s Momentum and PowerMTA on-premises email delivery platforms.
“Current email analytics products sit outside the delivery process and don’t have access to ISP behavior and industry-wide sending data, two factors that are essential for finding delivery problems before they occur,” SparkPost CEO Rich Harris explained. In contrast, SparkPost’s technology is designed to predict email delivery problems and offer actionable remedies before the damage is done.
Signals leverages its massive email data footprint (the company sends 37% of the world’s business email) and machine learning to monitor dozens of key email engagement and delivery metrics and provide users with an email Health Score. The technology uses the Health Score to predict potential issues and problems with email engagement or delivery, and also provides peer analysis against other senders who match the user’s profile. Users can set up alerts to have the platform notify them in the event of changes to their Health Score.
In a blog post, the company teased “Health Score V2 (Coming Soon)” which they referred to as having “a wider set of features … for 50% greater accuracy.” The update is expected “over the next two months.”
Other platform features include Spam Tram Reporting, which uses visibility into the largest commercial and non-commercial spam trap networks to help senders identify and fix any issues before they cause major problems. Signals also includes Engagement Insights. This feature helps senders leverage data to better understand how different subgroups within a recipient pool are responding to specific email campaigns.
Founded in 2008, SparkPost made its Finovate debut at FinovateSpring 2019 earlier this month. Video of the company’s live demonstration at the event will be available soon.
SparkPost began the year with an announcement that it had forged a strategic partnership with cloud communications platform, MessageBird. With more than $93 million in funding, the company includes Hercules Capital, LLR Partners, and NewSpring Capital among its investors.
Personetics is leveraging its success in developing AI-enabled consumer banking solutions to help small businesses better manage their day-to-day banking affairs. The tool is geared toward the small business owners who cite a “lack of tools that fit their needs” as the primary challenge to banking digitally. Personetics’ integrates the solution into the bank’s online and mobile channels to give SMEs deeper insight into cash flow and liquidity.
“The small business solution is a result of our work with banks around the globe to address the shifting expectations of business customers as they become more digital-savvy,” Personetics co-founder and CEO David Sosna explained. “Banks that act on these emerging needs have an opportunity to turn online and mobile banking into the go-to places for businesses to manage their day-to-day finances and stay ahead of the rapidly evolving needs of their small business customers.”
Personetics’ new solution proactively identifies potential issues in payments and receivables, anticipates future cashflow, and offers relevant financing options to help users reach liquidity and growth objectives. Additionally, the technology leverages bank and accounting information to give users a comprehensive overview of both financial planning and actual activity.
The company’s announcement is the latest sign of Personetics’ determination to bring AI-enabled personalization solutions to more financial institutions. In March, Personetics teamed up with fellow Finovate alum MX in a technology partnership designed to help FIs translate data into actionable insights.
Also this spring, Personetics partner BGL BNP Paribas, one of the largest banks in Luxembourg, launched its personalized, intelligent digital assistant, Genius. The AI-powered solution, which the bank said was “developed in close collaboration with the fintech Personetics,” encourages financial wellness by providing information on user spending, analyzing cash flow for unusual transactions or other issues, and offering tips on better banking.
Founded in 2010 and headquartered in Tel Aviv, Israel, Personetics demonstrated its Personetics Anywhere chatbot solution at FinovateFall 2016. The company works with six of the top 12 banks in North America and Europe, and serves more than 60 million customers around the world.
Personetics has raised more than $18 million in funding from investors including Lightspeed Venture Partners, Sequoia Capital Israel, and Viola Ventures. The company announced an investment of an undisclosed amount from United Overseas Bank last summer.
Hot on the heels of its Finovate debut earlier this month, blockchain-based data security platform ALTR has teamed up with digital banking solutions provider Q2 to unveil a new solution to improve data security.
The new technology, Q2 TrustView, powered by ALTR, adds to Q2’s approach to data management and protection by mitigating security breaches in real time. The solution protects critical data by fragmenting personally identifiable information (PII) across a private, low-latency blockchain, and makes data-at-rest unusable to unauthorized parties. Q2 TrustView powered by ALTR also gives authorized users a comprehensive insight into who accesses sensitive information, as well as data on when and how frequently that data is accessed.
“Great financial experiences are built on a foundational confidence and trust that an account holder’s data will be protected,” Q2 CTO Adam Blue said. “With Q2 TrustView, we are strengthening our data management approach to ensure that protections are in place for our customers and their users at every step of the data journey.”
ALTR CEO Dave Sikora praised Q2’s leadership in a “highly-regulated industry,” and said it was a “powerful validation of the confidence (that) banking and lending institutions” have in his company’s technology. He added, “Data is critical to these institutions, and the integration of ALTR’s smart driver and blockchain technologies into Q2 TrustView reinforces Q2’s approach to data security, privacy, and governance by implementing a critical human error countermeasure.”
Founded in 2004, Q2 demonstrated its Biller Direct solution at FinovateSpring 2018. Biller Direct enables consumers to aggregate their bills and pay them via credit or debit card. The solution both improves the billpay experience for consumers and gives financial institutions the opportunity to earn interchange revenue in the process.
We highlighted Q2 earlier this year in our look at how banks can compete with the new credit card from Apple. The company closed out 2018 with the acquisition of fellow Finovate alum, Gro Solutions.
Making its Finovate debut less than a month ago at FinovateSpring, Austin, Texas-based ALTR was founded in 2014 to help businesses leverage blockchain technology to change the way data is monitored, accessed, and stored. The company announced in April that its technology had earned Level 1 Service Provider accreditation for the latest version of the PCI DSS (Payment Card Industry Data Security Standard). In February, ALTR partnered with IT solutions integrator Sirius Computer Solutions to provide its blockchain-based data security as a managed service.
Named one of Built in Austin’s 50 Startups to Watch in 2019, ALTR has raised $15 million in funding.
Coinbaseextends support for USD Coin (USDC) trading in 85 countries.
Finastrahires Mark Miller as new Chief Financial Officer.
Fenergoannounces API integration with global financial markets data provider Refinitiv.
Hastings Direct extends deal with Equifax by signing a multi-year deal.
SDC and Tinkpartner to give 120 Nordic banks access to account aggregation and payment initiation services.
Kony Quantumpowers Qualifacts’ new CareLogic mobile app.
WireBarley partners with Currencycloud to boost its operations in the U.S.
Lendionamed to Fortune’s Best Workplaces in Financial Services & Insurance.
BlueVinetaps Herman Man as new Chief Product Officer.
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.
Minnesota-based ClickSWITCH is having a big month. A week after making its first-ever appearance on the Finovate stage, the account acquisition solution provider has announced raising $13 million in new funding.
The Series B was led by Commerce Ventures and Points72 Ventures, and will help the company accelerate its product roadmap, add to its executive leadership ranks – as well as to its sales and development teams – and contribute toward the firm’s overall growth.
ClickSWITCH CEO Cale Johnston underscored the momentum the company has experienced with clients and prospects since closing its previous, Series A round. “We remain focused on providing the best automated account switching solution available in the market for financial institutions and fintechs,” Johnston said. “We are eager to continue working with Commerce Ventures, Points72 Ventures, and our other tremendous investors to further growth of our customer base and expand our service offerings.”
Founded in 2014, ClickSwitch offers financial institutions a white-label technology that enables customers to easily and quickly switch their direct deposits and recurring payments when opening new accounts. In addition to improving the process for banking customers, the solution makes it easier for FIs to onboard new customers by making new account funding a faster process.
Commerce Ventures Partner Dan Rosen referred to the landscape as a “battle for banking deposits” between banks and fintechs. “ClickSWITCH is a critical utility for onboarding and activating valuable new customers,” he said. Point72 Venture’s Tripp Shriner added that changing direct deposits was one of the “biggest pain points” for banking consumers when it comes to opening a new account. ClickSWITCH, per Shriner, “dramatically reduce(s) friction … increasing choice for customers.”
This latest round of funding puts ClickSWITCH’s total capital at $17.1 million. Earlier this year, the company announced a partnership that would bring its account switching solution to Virginia’s Old Point National Bank. ClickSWITCH demonstrated its technology at FinovateSpring in May. Video of the company’s live demonstration will be available soon.
Finastra has signed three global banks on its Fusion LenderComm platform: BNP Paribas, Natixis and Societe Generale, following a recent sign-up by NatWest, reports Henry Vilar of Fintech Futures (Finovate’s sister publication).
“All of these banks were part of our Fusion LenderComm pilot and the momentum that the platform has seen since then is nothing short of extraordinary,” said Grant Jones, VP, Fusion LenderComm, Finastra. “This brings global banks together on the platform in the live Fusion LenderComm environment, for seamless and secure information exchange.”
Fusion LenderComm is based on Corda Enterprise, R3’s commercial version of its open source blockchain platform, Corda. The firm says it is enabling banks to expose real-time credit agreement, accrual balances and position information data to lenders, directly from agent bank loan servicing platforms, such as Finastra’s Fusion Loan IQ.
Philippe Boulas, Global Head of Corporate Banking Operations at BNP Paribas, said: “With the creation of this community and a collaborative mindset we have a unique opportunity to tackle the operational pain points we have all been experiencing for years and that constrain syndicated loan market expansion.”
Finastra said that Fusion LenderComm integrates directly into the overall technology stack at the banks.
Cécile Bartenieff, COO of global banking and investor solutions at Societe Generale, said: “The Fusion LenderComm initiative will help provide greater transparency and operational efficiency to the syndicated loan market for the benefit of all participants, including the pool of banking lenders and our borrower clients. This is an illustration of how blockchain can help banks optimize the entire flow of financial operations in a standardized and secured framework.”
The product of a merger between Misys – which demonstrated its FusionFabric.cloud technology at FinovateEurope 2017 – and D+H two years ago, Finastra recently announced the appointment of Chief People Office Sharon Doherty. Named a leader in the IDC MarketScape: Worldwide End-to-End Corporate Banking Solution Providers 2019 Vendor Assessment report in March, Finastra has forged a variety of partnerships in the first half of the year, including deals with Al Taif Islamic Bank in Iraq and Silvergate Bank of San Diego, California.
Mobility-as-a-service platform Drover has teamed up with identity verification specialist Onfido to support smarter, more secure onboarding for its customers.
“Balancing security against a smooth user experience is a challenge for many businesses, but our AI technology means we’re able to help Drover deliver both,” Onfido CEO Husayn Kassai said. “Reducing risk and building trust is core to both of our businesses, so the partnership is a natural fit.”
With Onfido as a partner, Drover will offer its drivers the ability to easily verify their identity when signing up for the company’s flexible car subscriptions. Drivers take a photo of their government-issued ID document, and Onfido checks to assure that the document is genuine by cross-referencing it against international databases. The technology also leverages machine learning to conduct facial checks to ensure image accuracy and liveness.
Drover CEO Felix Leuschner highlighted this last factor as one of the key reasons for partnering with Onfido. “As we grow our user base, being able to consistently deliver the speed our users want with the security they need is crucial,” he said. “Onfido helps us do both, so we can protect our platform without impacting on (our) user experience.”
An alternative to car leasing and buying, Drover began as an option for drivers working for Uber. Founded in 2015, the company has since grown into a subscription service for consumers that provides access to a new car for a single, all-in-one monthly payment. Drover is based in London, U.K., and has raised more than $9.7 million (£7.5 million) from investors including Partech, Version One Ventures, Cherry Ventures, Forward Partners, and BP Ventures.
Onfido demonstrated its Facial Check with Video technology at FinovateFall 2018. The London, U.K.-based company, which was founded in 2012, raised $50 million in new funding last month in a round led by SBI Investment and Salesforce Ventures. Appointed to the FIDO Alliance Board of Directors and added to the inaugural cohort of cross-border regulatory sandbox, Global Financial Innovation Network (GFIN) this spring, Onfido also made major C-suite moves in the first half of the year, appointing Kevin Goldsmith as Chief Technology Officer and Thomas Ammirati as Chief Revenue Officer.
In addition to its partnership with Drover, Onfido has teamed up with a variety of businesses and institutions this year. In March, the company announced a collaboration with INTERPOL to help the international police organization better spot fraudulent IDs. In February, Onfido announced it would provide identity verification for 2nd Address, a California-based online rental marketplace for extended accommodations.
