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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Payroll connectivity provider Argyle raised $30 million in Series C funding this week.
The round was led by Rockefeller Asset Management’s Fintech Innovation Fund.
New York-based Argyle made its Finovate debut at FinovateSpring 2022.
Income and employment data provider Argylesecured $30 million in new funding in a Series C round led by Rockefeller Asset Management’s Fintech Innovation Fund. Bain Capital Ventures, SignalFire, and Checkr also participated in the round. The investment consists of both equity and debt and takes the company’s total capital raised to more than $100 million. The funding will help Argyle continue to adapt and expand its automated income and employment verification platform. No valuation information was provided in the funding announcement.
This week’s news comes in the wake of a year in which Argyle notched a number of significant accomplishments and milestones. In 2023, Argyle onboarded more than 90 new customers. The company also boosted its total customer count to more than 140 firms in verticals such as mortgage, personal lending, and background screening.
To date, Argyle has processed more than 1.6 million annual verifications. This includes direct-source income and employment verifications for 90% of the U.S. workforce. Last year, the company achieved a 3.6X growth in bookings, generated cost savings for up to 80% of customers, and built integrations with lending partners ICE and nCino. Argyle also became the first consumer-permissioned provider to integrate into Dark Matter’s Empower LOS.
“Our verticalized approach and direct-source model has provided accurate data and an enhanced consumer experience for our customers,” Argyle CEO and founder Shmulik Fishman said. “With this capital from our valued investors, we will continue to tailor our solutions to priority verticals while improving the verification experience for the next wave of prospective customers that can benefit from our services.”
In an extended “Letter From Our Founder & CEO”, Fishman articulated the journey his company has made and underscored Argyle’s commitment to what he referred to as the “human side of digital transformation.” Noting that even “novel technology” is “only half the equation,” Fishman added “widespread digital transformation only happens when people trust new technologies enough to change their behavior. And change is really hard – even when it’s absolutely essential.” Calling the current moment Argyle’s “enterprise-adoption era” Fishman wrote that now was the time to ensure that “people and process take center stage.”
Headquartered in New York and founded in 2018, Argyle made its Finovate debut at FinovateSpring 2022. At the conference, company co-founder and COO Billy Marsden showed how Argyle’s Link 4.0 design update enhanced account connectivity, and decreased drop-off rates for users of its real-time income data platform. Link 4.0 also upgrades the platform’s visual style to boost consistency across Argyle’s product line.
Interested in demoing at FinovateSpring in San Francisco in May? We are happy to read applications from innovative companies with new solutions that are ready to show. Visit our FinovateSpring hub today to learn more.
Open data fintech Moneyhub is teaming up with fellow fintech providers, Rebcat and Navos Technologies.
Via the partnership, the three companies will work together to develop solutions to help large financial institutions offer personalized financial advice to their customers.
U.K.-based Moneyhub made its Finovate debut at FinovateEurope 2015 in London.
Open data fintech provider Moneyhub announced a new partnership this week. The U.K.-based firm has teamed up with fellow fintechs Rebcat and Navos Technologies to help financial institutions offer personalized financial advice and guidance to their customers. The companies will collaborate to launch a number of personalized plug-and-play services, focusing initially on closing the so-called “advice gap.” Additionally, the services will also include financial management, investments, and mortgages.
Moneyhub CEO Samantha Seaton pointed to regulatory changes in the U.K. as one of the trends that guided the partnership decision. “The upcoming changes to the Data Bill and the FCA’s proposals to relax the advice-guidance boundary highlight the significant role of digital advice businesses in the future,” Seaton said. “We have seen first-hand how advanced and robust Rebcat technology is and are delighted with this partnership and the opportunities it brings to unlock financial wellness for more people.”
The joint statement makes clear that Rebcat’s technology is at the core of the offering. The firm is a spin-out of OpenMoney, a digital adviser that Octopus Group acquired in 2023. With nearly 20,000 customers, Rebcat provides a range of B2B financial services. These include white-labeled, end-to-end investment and mortgage advice, as well as a bespoke personal finance and engagement app. Headquartered in Manchester, Rebcat leverages Open Data to help companies offer their customers personalized support and advice. Based in Bristol, Navos Technologies provides services ranging from building digital strategies to implementing effective cybersecurity. Founded in 2020, the company leverages its 120 years of combined experience at U.K. investment platform Hargreaves Lansdown to help companies reach their digital transformation goals.
A Finovate alum since its debut at FinovateEurope in 2015, Moneyhub supports seamless connections via a single source to thousands of financial institutions in 37 countries. This enables financial services companies to access a comprehensive view of their customers needs, habits, preferences, and aspirations. Banks, pension companies, wealth managers, lenders, retailers, and insurers all use Moneyhub’s open data platform to transform data into personalized digital experiences and insights – as well as initiate payments.
Headquartered in Bristol, Moneyhub was founded in 2011. The company began this year by earning a spot as a supplier on Crown Commercial Service’s (CCS) Open Banking Dynamic Purchasing System (DPS) framework for its Open Banking and Payment services. CCS is an Executive Agency of the Cabinet Office. The entity helps the public sector secure maximum commercial value when procuring goods and services.
Do you remember the parable about the blind men and the elephant? In some respects, trying to encapsulate the two days of FinovateEurope into a single conversation recalls their challenge.
It will come as no surprise that AI was top of mind. However, less than three years into this AI revolution, it was impressive to see calm heads and cautious strategies among the enthusiasm and anxiety. From AIs working with human agents to AI-enabled automation, putting the technology to practical use – on both the backend and frontend – is helping integrate AI more constructively into financial services than we might have imagined back in the days when we were first enthralled by ChatGPT.
That said, there is more to financial services and fintech in 2024 than AI. As more than one observer noted over the two days of FinovateEurope last week: AI may be king, but the kingdom is still the customer experience.
A View from the Keynote
That said, our Out of the Box Keynote address from author and Generative AI expert Nina Schick set the AI-powered tone early on Day One. From her presentation – Will AI Be More Profound Than The Invention Of The Internet? What Do Financial Institutions Really Need to Understand About Generative AI? – three points stood out to me.
First, popular opinion – and mass media news coverage – tends to treat AI and its innovations as either “dangerous” (New York Times, May 30, 2023: “AI Poses ‘Risk of Extinction,’ Industry Leaders Warn”) or “dumb” (The Guardian, March 16, 2023: “The stupidity of AI”). Thinking, or assuming, that AI will clearly be one or the other blinds us to the potential for the technology.
Furthermore, it is commonplace to suggest that AI will only be as “dangerous” or as “dumb” as its creators (not an entirely comforting thought, but …). Nevertheless, our relationship with AI will not be static; it will evolve as the technology evolves. In the process, we will become more attuned to, and aware of, the limitations of both AI as well as ourselves. In this, I am reminded of an observation by another AI expert who remarked that our experience with AI might actually help us understand more about what it means to be human. With each successive conversation about this technology, this viewpoint becomes more credible to me.
A second point from Schick is that many observers are focused on what is called “Artificial General Intelligence.” This refers to AI that is able to perform as well or better than humans at a variety of cognitive tasks, including the ability to self-teach. This is also the AI that the world is alternately anxious and excited about. Schick noted that before we get to artificial general intelligence (AGI), however, we will experience a period when what she called “Artificial Capable Intelligence” (ACI) will drive innovation.
ACI bridges the gap between the AI we see on display with large language models (LLMs) and Generative AI solutions on one hand and a potential future AGI on the other. Rather than what we can compel AI models to say or generate, ACI seeks to figure out what AI is “capable” of doing with its intelligence. As AI researcher Mustafa Suleyman wrote in an article for MIT Technology Review last July: “We don’t want to know whether the machine is intelligent as such; we want to know if it is capable of making a meaningful impact in the world. We want do know what it can do.”
As Schick elaborated on this concept, the ACI stage of AI’s evolution will not require machines that think or have achieved some level of sentience. Nevertheless, at this point, AI technology can perform highly specialized tasks – including emotional tasks – that would have been considered impossible for machines to conduct before. A recent Google study that showed its Articulate Medical Intelligence Explorer (AMIE) LLM outperforming human doctors, as well as, AI-assisted doctors, in a test of diagnostic reasoning and conversation. This is an example from health care, but the use cases in financial services – from debt resolution to wealth management – are clear.
Lastly, Schick emphasized that AI is a meta-technology rather than a single technology. As such we will be able to apply AI to a wide and growing variety of experiences and challenges. Moreover, as a meta-technology, AI will also have the ability to upskill a sizable range of activities – from the quantitative to the creative. This will cause no small measure of anxiety among many, but Schick believes that the benefits will be significant – and in many cases, surprising – enough to fuel continued engagement and innovation rather than retrenchment.
A View from the Money
What can we expect on the funding front for innovative startups in fintech? Where is the Smart Money looking – and investing – in 2024?
Our panel – Investor All Stars: Where Is The Smart Money Investing in Fintech? – is always one of the most well-attended sessions at FinovateEurope. These are the conversations that put technological innovation in the context of what’s actually possible. After a full day of watching live fintech demos, our All-Star Panel often arrives the following afternoon as a bracing tonic: what did you see? what did you like? what would you buy?
Claire Mongeau
This year, our investor panel at FinovateEurope featured Robin Scher, Head of Fintech Investment, Lloyds Banking Group; Sophie Winwood, Operating Partner, Foxe Capital; and Dallin Bills, Principal, Battery Ventures. Founders Factory Investor Claire Mongeau moderated the conversation.
If AI is the big driver for technological innovation in fintech and financial services, then the cost of money – namely, interest rate policy in the U.S. and Europe – are likely to give us the clearest indication of what to expect when it comes to investment in our industry this year.
While the panel in general was optimistic about funding in 2024, especially in the second half, they also agreed that interest rates will help determine the appetite for investment in fintech and that appetite will, in turn, help drive valuations.
Dallin Bills
There was also robust discussion of the M&A front. Capital One’s acquisition of Discover Financial in February was an early sign that 2024 might feature some welcome consolidation in the financial services space. And while the panel was united on the likelihood that M&A could be surprisingly active this year, there was debate on whether strategic transactions or private equity-fueled moves would dominate.
Bills noted, in favor of private equity, that there is $2.5 trillion in “dry powder on the sidelines”, a record amount, he said. Bills added that there are potential opportunities not only in AI and AI-powered automation, but also in niche areas like tax and accounting. Scher added that strategic M&A was “very much still in play” for 2024. “There are too many fintechs doing the same thing,” Scher observed, “and they don’t seem to realize it.”
Sophie Winwood
What do our panelists like? Winwood echoed Bills interest in the tax and accounting space. She also highlighted a “new wave of insurtechs” as worth keeping an eye on, as well as continued innovations in the wealthtech/wealth management space. With Millennials well into family formation mode, and both homebuying and saving for college becoming top agenda items for them, companies who are able to help these young families navigate these major financial challenges could be in high demand.
That, however, does not necessarily mean good times for lenders – digital or otherwise – as Bills noted. Many of these companies are still reeling from the interest rate hikes of 2023, and the prospect of interest rates remaining relatively high in the near-term is likely to encourage investors to take a hands-off, or at least wait-and-see, approach to the space.
Robin Scher
Perhaps most inspiring was Winwood’s observation that often some of the best companies are started during times of crisis and uncertainty. Further, she added, it’s never been easier to launch a new fintech. Maybe, if the previous fintech boom was characterized by a YOLO, ZIRP-fueled, free money mania, then perhaps the next boom will be characterized by greater sense and sobriety.
After all, she concluded wryly, if you’re starting a fintech today “you’re either mad or really love the problem and want to solve it.”
Day One of FinovateEurope 2024 is in the books! That means it’s time to find out which demoing companies made the greatest impressions on our Finovate audience – earning our coveted Best of Show award.
Corsound AI for its technology that helps businesses fortify their security measures against voice-related fraud. Video.
Tuum for its solution that allows banks to orchestrate new businesses and business models, unlocking new revenue streams. Video.
Zeed for its platform that enables public companies and asset managers to reach and engage retail investors by leveraging video content. Video.
Thanks to all of the companies that demonstrated their latest technologies live on the Finovate stage on Tuesday. The diverse array of fintech innovations – from new ways to combat fraud to solutions that help banks attract new customers and boost revenues – was a great sign of where our industry is today, and where it appears to be headed.
Be sure to check out our FinovateEurope 2024 recap next Monday as we look back at some of the key themes and issues raised in this week’s conference.
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 three 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 through 2023 conferences are below:
This year at FinovateEurope (27-28 February) I will be interviewing 15 fintech entrepreneurs, CEOs, analysts, authors, and thought leaders on what they believe are the most important topics and trends in fintech and financial services. Here’s a preview of the people I’ll be speaking with, a note on what they will be presenting at FinovateEurope, and a sense of the questions I’ll be asking them next week.
Be sure to stay tuned immediately after the event as we begin to roll out our Finovate TV interviews from FinovateEurope.
Anette Broløs – Director and Founder, Finthropology
Anette will be a part of our Wednesday afternoon Power Panel: From Open Banking To Open Finance & Beyond – How Can Banks Seize The Opportunity To Generate Returns?
I will ask Anette about the challenges that financial institutions face when trying to become more customer-centric. We’ll also discuss her new book, Customer-Centric Innovation in Finance, which explains how to turn human insights into product innovation.
Nina Schick, Author, Generative AI Expert, Founder, Tamang Ventures
Nina will deliver our Out of the Box Keynote Address Tuesday morning titled Will AI Be More Profound Than The Invention Of The Internet? What Do Financial Institutions Really Need To Understand About Generative AI?
I’m looking forward to learning more about what financial services need to know about de-risking the adoption of enabling technologies like AI. I’m also curious what other enabling technologies Nina thinks should be on our radar.
Indrek Vainu, Head of Conversational AI, Zurich Insurance Company
Indrek will be a part of our Wednesday afternoon Power Panel: AI In Action & Real User Cases: How Smart Players Are Using AI To Solve Pain Points For Their Customers & Their Business. He will also deliver a keynote address – How Financial Institutions Can Harness The Era of Generative AI – as part of our invitation-only session Monday evening for financial institutions.
In our conversation at FinovateEurope, I want to hear about the challenges Indrek and his team have faced as they implemented generative AI applications at their firm. What lessons and insights can he share with other financial services as they embark on their AI journeys?
Ville Sointu, Chief Strategist, Digital Currencies, Nordea
Ville will be a part of our Wednesday afternoon Power Panel: Digital Payments Are Eating The World – How Will New Competitors & New Business Models Shape The Future?
I’m curious to learn from Ville about how embedded payments are spreading throughout Europe. I’m also interested in learning about his interest in super apps, which he mentioned last year. How might the rise of super apps impact the payments landscape?
Janine Hirt, CEO, Innovate Finance
Janine will be a panelist on our Tuesday evening Executive Briefing: What Embedded Finance & Banking As A Service Mean For Banks – Can You Afford to Hold Back?
I will ask Janine about the future of Banking-as-a-Service and embedded finance in Europe. I’m looking forward to hearing her take on how the competitive landscape for service providers – beyond retailers and Big Tech – will evolve in this context.
Ken Hughes, Consumer Behaviouralist, The King of Customer Experience
Ken will deliver an Out of the Box Keynote Address Wednesday morning titled, Financing the Future: Preparing For The Customer Of Tomorrow.
I want to ask Ken about the Customer of Tomorrow. In what key ways will the customer of tomorrow differ from the customer of today?
I’m also looking forward to hearing his thoughts on customer-centric innovation and how traditional brands are adapting to new challenges and opportunties.
Valentina Kristensen, Director of Growth & Communications, OakNorth
Valentina will be part of our special panel titled, Women in Fintech: How Can We All Make Sure We Are Moving The Needle?
I would like to hear from Valentina on the evolution of DE&I initiatives in recent years. How effective have these efforts been in terms of attracting and retaining female talent, in particular?
I also want to learn from Valentina about how financial institutions can be more responsive to their female professionals as they move through various stages of their careers.
Manas Chawla, CEO, London Politica
Manas will provide a Keynote Address Wednesday morning titled, The Global Economic & Geo-Political Outlook – What Are The Five Things You Need To Know?
He will also deliver a special Fireside Chat: The Escalation of Geopolitical Risk – What Does It Mean for Banks And Their Customers? as part of our invitation-only session for financial institutions Monday evening.
Always an engaging interview, Manas is likely to have a lot to say about the myriad geopolitical issues that are dominating headlines in 2024. How will these various crises – from Europe to Asia to the Middle East to the American border – impact banks, fintechs, and financial services companies? I’m eager to hear what Manas has to say about all of it at FinovateEurope next week.
Jurgen will be a part of our Wednesday afternoon Power Panel titled, Tales From The Frontline – How Can Financial Institutions Deliver Excellent CX By Blending The Human & The Digital?
I want to talk with Jurgen about the impact of enabling technologies in the wealth management space. I’m curious how everyoneINVESTED is innovating in this area and what innovations in the investing experience are most compelling for customers in wealth management.
Nadia Edwards-Dashti, Co-Founder & Chief Customer Officer, Harrington Star Group
Nadia will moderate our Wednesday morning panel titled, Women in Fintech: How Can We All Make Sure We Are Moving The Needle?
In our Finovate TV conversation, I want to talk with Nadia about how many of the people she talks with in her podcast, Women of Fintech, are driving positive change in fintech and financial services.
I would also like her opinion on what it takes for companies to create more inclusive workplaces for their employees.
Samantha Seaton, CEO, Moneyhub Enterprise
Samantha will deliver a Special Address Wednesday morning titled, Your Product Isn’t The Hero – Your Customer Is.
I’m eager to hear from Samantha about how companies in financial services can pivot from an emphasis on the product to a more customer-centric approach.
I’m also curious how she sees the impact of technologies like AI and the role they may play in helping financial services companies make this pivot. I also will ask Samantha about her overall sense of the state of fintech right now.
Stephen Hutchinson, Head of Operations, IFX Payments
A few years ago a venture capitalist reminded us from the Finovate stage that “payments are the gift that keeps giving.”
With that in mind, I’m looking forward to talking with someone who walks the payment talk in Stephen Hutchinson, Head of Operations at IFX Payments.
I will ask Stephen what payment trends he finds most exciting and how he believes those trends will impact IFX Payments. We will also talk about some of the key targets and goals for IFX Payments in 2024.
Jose Luis Navarro, Head of Open Banking Strategy, BBVA
Jose will be a panelist on our Wednesday afternoon Power Panel titled, From Open Banking to Open Finance & Beyond – How Can Banks Seize The Opportunity To Generate Returns?
Given the success of open banking and open finance in Europe compared to many other parts of the world (I’m looking at you, US of A!), I’m eager to learn from Jose about what’s working in Europe and how BBVA has managed to capitalize on current trends in open banking and open finance.
I also will ask about the regulatory risks of open banking and open finance, and what institutions need to know in order to navigate these issues.
Edwin van Bommel, Chief Strategy and Innovation Officer, ABN AMRO Bank
Edwin will be part of our Wednesday morning Power Panel: Finding New Opportunities Through Digital Transformation – Success Stories & Insights To Help Financial Institutions Find Growth, Drive Revenue & Future Proof Their Business.
In my conversation with Edwin, I’m looking forward to learning more about AMRO Bank’s product roadmap, and the degree to which he sees AI becoming a greater part of financial services overall. I also want to talk with Edwin about the challenge traditional banks have when it comes to overcoming legacy systems.
Katharina Lueth, Chief Client Officer and Managing Director, Raisin
Katharina will be part of our Wednesday morning Power Panel: Why Fintech Will Revolutionize Customer Experience & How Financial Services Providers Can Compete In A Hyper Personalized World. What Are They Key Lessons To Learn From Other Industry Verticals & From How Big Tech Companies Build Customer Trust?
How can a financial services company that operates in multiple geographies successfully provide personalized services in these different regions? What are some of the key trends in fintech that are impacting what Raisin’s customers want and how is Raisin adapting to meet these trends?
These are a few of the questions I’m looking forward to asking Katharina next week at FinovateEurope.
There’s still time to pick up your ticket and join us for one of the most loaded FinovateEurope conferences to date! Visit our FinovateEurope page and register today!
Australia-based regional mutual bank Summerland Bank announced a partnership with cloud banking company nCino.
The financial institution will deploy nCino’s Cloud Banking Platform to modernize its technology stack.
Headquartered in North Carolina, nCino made its Finovate debut at FinovateEurope in 2017.
Customer-owned regional mutual bank Summerland Bank has partnered with cloud banking innovator nCino. The institution will leverage nCino’s Cloud Banking Platform to enhance its loan origination operations for mortgages, personal loans, overdrafts, credit cards, car loans, and business loans.
“This partnership embodies what we stand for at Summerland Bank: innovation, better banking and an unwavering commitment to our customers and communities, and we’re thrilled to be working with nCino to help us bring these values to life,” Summerland Bank CEO John Williams said.
Summerland Bank will take advantage of intelligent process automation and integration with data sources to enhance the customer experience in various ways, including faster response times. The bank also will benefit from lowering the amount of manual work in its lending operations, reducing error rates and, instead, accelerating time to approval and fund disbursement. nCino’s platform will provide the institution with a single system of interaction for the bank’s originations team – for both consumer and business lending alike.
“Through our single platform, nCino is committed to providing cutting-edge solutions that enable financial institutions to succeed in today’s competitive landscape, and we are thrilled that Summerland has made the strategic decision to partner with us,” nCino Managing Director, APAC, Mark Bernhardi said. “This partnership underscores their commitment to harnessing technology to deliver superior experiences.”
Founded in 1964, Summerland Bank has more than $1 billion in assets and achieved net profit of $7.2 million last year. The institution changed its name from Summerland Credit Union in November, and is currently a B corp certified bank with more than 27,000 customers. Summerland serves the Northern Rivers community of New South Wales and maintains 10 branches in the area.
Headquartered in Wilmington, North Carolina, nCino made its Finovate debut at FinovateEurope in 2017. In the years since, more than 1,850 financial institutions have selected nCino’s cloud banking platform to achieve commercial loan origination rates of more than 54% and increases of more than 12% in account opening rates.
The partnership with Summerland Bank is nCino’s fourth collaboration this year. The company began 2024 with the news that Camden National Bank was deploying solutions from nCino’s Mortgage Suite in order to transition from its legacy mortgage point-of-sale (POS) technology. Also in January, The Bank of Bennington announced that it was expanding its partnership with nCino, adopting the North Carolina-based fintech’s Consumer Banking Solution after realizing significant efficiency gains with nCino’s Mortgage Suite. Earlier this month, nCino announced that Mechanics and Farmers (M&F) Bank went live on its cloud banking platform. Headquartered in Durham, North Carolina, M&F Bank is the second oldest and eighth-largest African-American-owned bank in the U.S.
Reconciliation and reporting platform Kani Payments has forged a strategic partnership with core banking platform Pismo.
The partnership will make Kani’s SaaS platform available to Pismo’s bank, marketplace, and fintech clients.
Kani Payments made its Finovate debut last year at FinovateSpring in San Francisco.
U.K.-based reconciliation and reporting platform Kanihas forged a strategic partnership with Pismo, an issuer processor and core banking platform headquartered in Brazil. The pact will make Kani’s SaaS platform available to Pismo’s clientele of banks, marketplaces, and fintechs. Kani’s technology automates back office processes, enabling financial institutions and financial services companies to more easily fulfill their compliance reporting obligations.
Kani reports that firms ranging from electronic money institutions and BIN sponsors to challenger banks and fintechs have used its technology to complete weeks’ worth of often complex transaction reporting and reconciliation in less than 30 seconds. In a statement, the company noted that it has experienced significant growth since its founding in 2018. The strategic partnership with Pismo is a big part of that, insofar as the Brazilian fintech is Kani’s largest client win to date.
“Having Kani Payments join our partners’ network will help financial institutions to turbocharge report generations and submissions,” Pismo CEO for North America, EMEA, and APAC Vishal Dalal said. “It will unlock useful insights to help them make better, more informed decisions, shaping a new era for banking and payments.”
Founded in Brazil in 2016, Pismo counts domestic banking firms Itaú and BTG among its clients. The company works with the world’s largest card networks, and processes $208 billion in transactions a year across 97 million accounts and 53+ million issued cards worldwide. Visa International acquired Pismo at the beginning of 2024 in a deal valued at $1 billion. We reported on the pending deal in our Finovate Global column back in the summer of 2023.
“Pismo’s cloud-based platform empowers teams to build fast and companies to launch rapidly, and as such, it shares many of our values and a core aim of helping businesses drive efficiency,” Kani Payments founder and CEO Aaron Holmes said. “As a global business, Pismo is the perfect partner to help us realize the next phase of our growth strategy, and we’re looking forward to making our solution available to a much wider market.”
Founded in 2018 and headquartered in Newcastle, U.K., Kani made its Finovate debut at FinovateSpring 2023. At the conference, the company demoed how its automated reconciliation and reporting platform conducts fully automated reconciliations, and automates legal, regulatory, and scheme reporting requirements. The platform also gives users the ability to explore and investigate data to better understand consumer and product behavior.
Rasa has raised $30 million in Series C funding for its generative AI for financial services solution.
The round was co-led by StepStone Group and PayPal Ventures.
Rasa was the first AI-related investment for PayPal Ventures’ new AI Fund.
With two of the world’s top three banks, two of the largest U.S. banks, and American Express among its customers, PayPal Ventures’ first AI-based investment, a company called Rasa, is well on its way toward making a name for itself in the “Generative AI for financial services” space.
“This investment accelerates our lead in the market, and fuels our drive to redefine what is possible for businesses using generative AI-powered chat and voice platforms at scale,” Rasa CEO Melissa Gordon explained. “With our technology, we’re well-positioned to transform how businesses interact with their customers, making every conversation impactful and personal. We will use the funding to advance our technological leadership and strengthen our market presence.”
Founded in 2016, and boasting a remote-first presence in San Francisco, London, Paris, Berlin, and Belgrade, Rasa secured $30 million in Series C funding for its conversational AI platform last week. StepStone Group and PayPal Ventures co-led the round, which featured participation from Andreessen Horowitz (a16z), Accel, and Basis Set Ventures. At this time, updated valuation information was not available. The fresh capital will enable Rasa to grow its team, the company noted in a statement. Rasa is looking to add talent across both North America and Europe in a variety of roles, including marketing and engineering.
Rasa’s technology powers sophisticated and robust AI assistants that support user engagement. Additionally, the company leverages Conversational AI with Language Models (CALM) to offer solutions that combine the flexibility and nuance of Large Language Models (LLMs) with the control and certainty of traditional, NLU-based chatbots. Currently deployed in a pair of solutions, Rasa Pro and Rasa Studio, the CALM-based technology keeps interactions coherent and natural.
“At Rasa we’ve reinvented how conversational AI works,” Rasa co-founder and CTO Dr. Alan Nichol said. “While many in the industry claim to incorporate generative AI, often it’s merely an addition of LLMs onto their existing platforms.”
Rasa is the first investment from PayPal Ventures’ new AI fund. Launched with the mission of investing in early stage AI startups from multiple industries and verticals, the fund is a recognition of opportunities for real-world applications of AI in fields from customer success and compliance to risk and personalization.
“We are thrilled to mark the launch of our AI Fund with our investment in Rasa,” PayPal Ventures partner Alan Du said. “We believe Rasa offers a best-in-class platform for enterprises to develop robust, conversational AI, and we have seen how its concierge solutions improve customer engagement and business performance.”
Rasa is competing in a crowded space as more financial institutions and businesses embrace AI as a tool for enhancing the customer experience. Among Finovate alums alone, companies such as Kore.ai and boost.ai, as well as Best of Show winners like Finn.ai and Voca.ai, have demonstrated the capacity of AI-based solutions to transform the way financial services companies engage their customers. Other alums – ranging from SESAMm to ForwardLane to Kognitos – have demonstrated a variety of applications using Generative AI specifically.
European consumer and business credit data provider CRIFlaunched its ESG Analytics solution this week. The technology will give banks and financial institutions in the U.K. the ability to quickly and accurately assess the environmental, social, and governance (ESG) profiles of their U.K. and Europe-based suppliers, partners, and customers.
ESG Analytics draws on more than 130 key indicators from data sources in the U.K. and Europe. The technology analyzes information on issues such as water usage, waste production, emissions, and health and safety records, as well as modern slavery and inclusiveness. Financial institutions and banks will only need the U.K. or Europe-based business’ VAT or registration number in order to obtain an ESG score on the company. ESG Analytics also provides granular environmental, social and governance indicators – all available without requiring direct interaction with the company being reviewed.
“Considering the growing attention of the regulatory bodies toward ESG compliance in the EU but also in the U.K., ESG Analytics enables banks, insurers and corporates to understand the impact of businesses they work with today and helps to inform their decision-making in this ever-more important area of work,” CRIF Regional Director for the U.K. and Ireland Sara Costantini said. “And by working with regulatory bodies all around the world, we ensure that we remain at the forefront of regulation so we can pass this knowledge onto U.K. financial institutions.”
ESG Analytics will complement CRIF’s current ESG service, Synesgy, launched last fall. The solution enables businesses in the U.K. to assess the sustainability of their supply chains. Synesgy also helps companies enhance decision-making during the procurement process, avoid operational and reputational risk, and provide greater transparency with regard to ESG.
“Climate change is the defining issue of our time and every one of us has to play our part in protecting the planet for future generations,” Costantini said when Synesgy was launched in September. “For businesses this is no exception. As customers look to companies that are a force for good, it’s crucial that businesses understand both their own ESG performance and that of their entire supply chain.”
Headquartered in Bologna, Italy, CRIF made its Finovate debut at FinovateEurope 2014. In the years since, the company has grown into a major international credit bureau and business information provider with more than 10,500 FIs; 1,000+ insurance companies; 90,000+ business customers; and 1,000,000+ consumers in 50 countries using its services.
The week begins with big news on the payment cards front as Capital One announces plans to acquireDiscover Financial Services in an all-stock deal valued at $35 billion. Check out what else is going on in fintech and financial services in our latest fintech weekly news rundown!
Embedded finance
German embedded finance platform Moniteraises $6.5 million (€6 million) in funding.
Quaint Oak Bank selectsFinzly to modernize payments and enable its embedded banking practice.
Gorham Savings Bank partners with CorServ to implement modern commercial credit card program.
REPAYenhances accounts payable integration for Sage Intacct.
REPAYpartners with Maxyfi to modernize the collection of payments.
FXC Intelligence signs a data and intelligence partnership with dLocal to support its expansion into the remittance segment of the cross-border payments industry.
Nigerian digital bank FairMoneyis considering acquiringUmba, digital bank with operations in Nigeria and Kenya, in an all stock deal valued at $20 million.
Crypto
Revolut announces plans to open an advanced cryptocurrency exchange.
RockWallet to onboard former Wyre users after acquisition of its customer base.
Velexaintroduces Fractional Bonds, democratizing investment in high-quality bonds.
TIFINreceives $10 million from SEI to power the future of wealth through artificial intelligence.
Open banking
Data intelligence platform Bud Financial is partnering with open banking company Fintech Galaxy to strengthen the open banking scene in the MENA region.
Insurtech
Insurtech Myloselected by 1-800Accountant as digital insurance partner.
Amid the panel discussions, fireside chats, and keynote speeches, FinovateEurope 2024 will also offer a half dozen special addresses on topics ranging from tokenization to customer onboarding to open finance. With less than two weeks to go before the lights go up on the Finovate stage – 27 February to 28 February – here’s a brief introduction to some of the fintech experts and entrepreneurs who will be sharing their insights on major trends in fintech this year and beyond.
The first special address of FinovateEurope will be part of an invitation-only session the day before the conference begins. Part of Finovate’s New Leaders+ experience, our pre-event briefing and networking opportunity for financial institutions will feature expert insights, fireside chats, and a special address: How Today’s Leading Financial Institutions Can Gain Critical Insight and Stay Competitive.
On Day One of FinovateEurope, we’ll feature four special addresses. In the first, Mateusz Grys, Product Manager, LiveBank by Ailleron; and Łukasz Parzyk, Expert Lead, ING Bank; will talk about the power of bank/fintech partnerships in a presentation titled Click, Connect, Mortgage. Success Story of ING & LiveBank by Ailleron.
Later that day, Nick Kerigan, Managing Director and Head of Innovation at Swift, will share his insights on Tokens & Machines: A Vision of the Future of Financial Innovation. Kerigan has more than 20 years experience in payments and banking. Before joining Swift in 2020, he was Managing Director for Future Payments at Barclays. In his current position, he helps lead Swift’s response to emerging technologies from digital currencies to tokenized assets.
Also on Day One, Santosh Reyes, founder and Managing Director for DLT Apps, will provide a Special Address. Founded in 2018, London-based DLT Apps is an engineering company that leverages its expertise in blockchain technology and artificial intelligence to transform financial services. Reyes has more than 20 years of experience in the financial industry and a track record of identifying and nurturing innovative ideas that can disrupt the traditional financial landscape.
With a title that leaves little to the imagination, Liam Chennells, CEO and Co-Founder of Detected, will provide the final Special Address of Day One. In his presentation – You Are Slowly Dying, But You Don’t Realize It Yet, Every Day Your Competition is Onboarding Customers Better than You – Chennells takes on what he calls “the silent killer of businesses.” His company, Detected, is re-inventing the traditional approach to onboarding for businesses, customers, and merchants. Welcome to the world of Onboarding Intelligence!
Day Two of FinovateEurope will feature one Special Address among our keynotes, fireside chats, and breakout streams on banking, customer experience, lending, open banking, payments, and more. Samantha Seaton, CEO of Moneyhub will deliver a Special Address titled, Your Product Isn’t the Hero – Your Customer Is. In her presentation, Seaton will answer questions such as how Open Finance can help firms become more customer-centric and how companies can leverage emerging technologies like AI to derive data insights and take advantage of the power of personalization.
We’re starting off our Women in Fintech series this year with a conversation with Erin Wynn. As Executive Director of Product Management at NCR Voyix, Wynn helps both community banks and credit unions form strategies to implement their digital transformation and product roadmap initiatives.
Wynn also works as a mentor and coach for the company’s internal pre-sales teams. In this role, she helps ensure that sales engineers, solution architects and business analysts are supporting NCR Digital Banking’s vision and solutions.
We caught up with Erin Wynn to talk about her own beginnings in fintech, as well as what she is learning from her customers and clients about the most important trends in our industry.
NCR Corporation changed its name to NCR Voyix in the fall of 2023 as the company spun-off its ATM-based business, known as NCR Atleos. Headquartered in Atlanta, Georgia, the company has 35,000 employees globally, and trades on the NYSE under the ticker symbol “VYX.” NCR has been a Finovate alum since 2015.
How did you get started in fintech? What has led you to where you are today in your career?
Erin Wynn: I began my career in 1998, working at a bank, where I got my first taste of fintech. I worked so closely with one of our vendors, Digital Insight, that I even went to work for them for a few years before a different opportunity presented itself. In the long run, however, I knew Digital Insight was my home, and I returned to them in 2012. Digital Insight was acquired by NCR Voyix’s Digital Banking platform in 2014, but has managed to keep the familial relationship that drew me back here.
My dedication to being a lifelong learner has led me to amazing opportunities, holding various positions within NCR Voyix. I look at every experience as a chance to be curious and learn something new. Whether it be from a client, a colleague, or a partner, I believe everyone has something valuable to share and learn from.
My passion and deep understanding for how our products work and helping financial institutions achieve success have been central to my growth. As the executive director of product management for Digital Banking at NCR Voyix, I lean into my banking experience to help community financial institutions develop strategies for implementing digital transformation and better support their consumers and communities. I empower them to help customers and members improve their financial wellness — a topic I’m especially enthusiastic about (and one that’s driven my career in banking!).
Which digital banking features and capabilities are most resonating with clients? What trends are top of mind for customers?
Wynn: A significant trend we’ve seen is centered around personalization, which really means reminding the consumer that you know and care about them; they’re not just another number. This means creating digital experiences that feel like they’re catered to each user. Financial institutions are realizing that they can’t just compete on low loan rates or high deposit rates. Even if that’s what got the consumer in the door, it won’t be what keeps them there. The financial institutions that emphasize building and maintaining relationships, as well as providing meaningful tools and support (such as financial wellness resources), will be better positioned for loyalty and success.
Another major trend I’ve seen is finding ways to increase overall efficiency. This can mean embracing more automation or researching ways to better maximize current staff and technology. Our clients, like most people, are looking for ways to simplify processes and quickly solve problems. For example, NCR Voyix can support marketing automation, an area of typically high turnover within institutions, helping banks and credit unions make every interaction count.
What has been the impact of AI on banks and credit unions and their accountholders? How should financial institutions begin to incorporate AI into their organizations?
Wynn: AI has notable potential. It can create personalized interactions with each consumer at scale and significantly increase efficiencies. AI can help institutions approach certain processes in different ways. For example, more institutions are using AI when it comes to lending decisions instead of solely relying on traditional factors.
However, when it comes to AI and, especially, generative AI, banks and credit unions should know that the technology is only as strong as the data and information behind it. There is a lot of work to train AI to make AI effective; it’s not a magic bullet. You must give it the right data and training to effectively work, while continuing to provide human oversight.
My advice for banks and credit unions who are considering how to use AI is to first ask themselves what they’re trying to accomplish. For example, is there more of a need to enhance back-office efficiencies? Or are they trying to offer different ways to support users? Don’t try to do everything all at once; it will be too much. Understand that it won’t be perfect from day one. You’re going to have to experiment and improve the AI along the way.
What does it mean to effectively humanize digital experiences? How can banks and credit unions accomplish this?
Wynn: Effectively humanizing the digital experience means leading with empathy throughout the user experience on their phone or online. This could be something as simple as analyzing the language used in an error message. Evaluate everything with a person in mind; are you providing them with relevant information in a human way, making them feel comfortable and supported along the journey? Of course, personalization is also a major factor here, as well. Money and finances are extremely personal, and they need to be treated with care.
Data is a core factor when it comes to humanizing digital. Effectively leveraging data can uncover crucial consumer behaviors, channel preferences, transactional patterns, and key events in the consumer journey. Employing technologies like AI enables financial institutions to analyze this data more effectively, anticipating member behaviors and offering contextual assistance, such as tailoring their website content to specific needs.
Looking ahead, I expect banks and credit unions to prioritize looking for ways to incorporate more empathy and personalization within their platforms, which will drive relationships and loyalty with their consumers.
Are there any leadership tips that you would like to share with other strong females in a male dominated industry?
Wynn: It all comes down to confidence. Knowing your worth and intelligence goes a long way. Surround yourself with a strong group of women who lift you up and encourage you. When you start to see yourself the way others see you, you are more likely to take a risk in your career or feel more confident to speak up. Also, recognize what motivates and drives you, and know that it’s okay if those things change over time. Everyone constantly evolves in their journey, and you’re sure to learn something every step along the way.
