Finovate Alumni News

On Finovate.com

  • Mexican Payment Processor Chooses Fraud Fighting Technology from Featurespace.
  • Ripple Unveils Expanded Suite of Offerings

Around the web

  • BBVA announces record product sales through digital channels in June.
  • Tennis star Andy Murray revealed to be among 40,000 Revolut users pre-registered for the company’s crowdfunding initiative.
  • DefenseStorm hires Bob Thibodeaux as Chief Information Security Officer.
  • Modo Payments goes dark in Monday “Unnouncement.” Affirms plans to refocus on payments after hiatus.
  • Mashreq deploys Vipera for mobile wallet.
  • NICE inContact introduces CXone cloud customer experience platform.

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.

Braintree Tops A Billion Transactions Per Quarter Mark

Braintree Tops A Billion Transactions Per Quarter Mark

Now, that’s brain power.

Payment platform Braintree announced this week that it now processes more than one billion payment transactions per quarter.

“This is another significant milestone in the Braintree story as we continue to prove how uniquely well-positioned we are – in partnership with the power and reach of PayPal’s global two-sided network – to drive the future of commerce forward,” Braintree GM Juan Benitez wrote at the company blog. In a footnote, Benitez added that the volume represents PayPal transactions as well as others that are ineligible for inclusion in Braintree’s “stated transaction count” and not included in calculations to determine total payment volume (TPV).

Merchants in more than 40 countries around the world accept, split, and support payments in more than 130 currencies using Braintree’s platform. Braintree helps merchants build seamless online and mobile checkout experiences for their customers and provides both white-glove support and advanced fraud protection. From e-commerce businesses that want to accept direct payments to marketplace businesses with multiple payment services requirements, Braintree provides scalable, easy-to-integrate solutions that enable processing of a wide variety of payment options including PayPal, Venmo, Apple Pay, Android Pay, Visa Checkout, Masterpass, Amex Express Checkout, and ACH Direct Debit, as well as credit and debit cards.

Founded in 2007 in Chicago, Illinois, Braintree demonstrated Venmo Touch at FinovateSpring 2013. Also a veteran of our developer’s conference, Braintree discussed developer resources for building a better checkout experience at FinDEVr New York last spring in a presentation titled, “A Credit Card Form Walks into a Bar … Making Beautiful Credit Card Forms.” The company, which acquired Venmo for more than $26 million in 2012, was acquired by PayPal the following year for $800 million. In May, Braintree announced a remodel of its mobile Drop-in payments acceptance UI, launched a few months earlier. Braintree hired John MacIlwaine as CTO in February, and unveiled its commerce infrastructure tools back in December.

FutureVault Appoints John D. Orr as New CEO

FutureVault Appoints John D. Orr as New CEO

FutureVault announced this week that the company has hired banking executive, attorney, and investment professional John D. Orr to serve as its new CEO. Orr takes the helm of the company from G. Scott Paterson, who will continue as Executive Chairman.

Paterson praised Orr’s “extensive experience” and “tremendous entrepreneurial and investment acumen.” Adding that FutureVault “set out to recruit a leader with the vision and management skills to guide the company to reach its incredible potential,” Paterson noted that the company’s relatively recent commercial launch made it an ideal time to bring Orr on board. With more than 25 years of experience in the financial services industry, Orr (pictured) spent several years in a variety of senior leadership positions at CBIC including Head of Amicus Division, Head of International Retail Markets, and most recently, EVP for Strategy and Corporate Development. Orr is founder and managing director of Orr Capital Management, and serves as an advisor to G2 Investment Group, Applied Data Finance, and The Kessler Group.

Calling information “the next and ultimate asset class,” Orr explained the role FutureVault’s technology plays in helping people manage and protect it. “Everyone understands what current cloud-based document management platforms provide,” he said, “but when viewing information through the lens of an asset class, it is clear that these solutions were not designed to meet this need.” Orr added, “Fundamentally, our role is to provide the tools and intelligence to allow individuals and businesses to optimize the value of their information.”

FutureVault demonstrated its digital information management platform at FinovateFall 2016. Last month, the company partnered with BlueRock Wealth Management, giving the firm’s HNW (high net worth) clients access to the intelligent document management technology. FutureVault began the year with a trio of major, C-level additions, bringing on Kevin Whyte as president and COO, Tom Duane as CTO, and Rudy Sankovic as CFO.

Finovate Alumni News

On Finovate.com

  • Vipera Acquires SoftTelecom for $1.5 Million
  • FutureVault Appoints John D. Orr as New CEO.
  • Handle Financial’s PayNearMe Partners with Blackhawk Network.

Around the web

  • CrowdFlower earns Gartner “Cool Vendor” status for Information Innovation and Governance.
  • Braintree surpasses one billion transactions per quarter milestone.
  • Infosys wins three out of seven Catalyst Awards at TM forum Live.
  • Baidu and PayPal announce strategic partnership.
  • International Air Transport Association chooses fraud prevention technology from Featurespace.
  • Top Image Systems announces eFlow AP 5.2 integration with SAP S/4HANA.
  • Wipro and Compuware partner to launch mainframe center of excellence.
  • Agreement Express ranked among top 100 technology companies in British Columbia by Business in Vancouver.
  • SearchUnifiedCommunications features Bluescape in its look at use cases for digital collaborative whiteboards.
  • Pendo Systems announces trio of new hires to support a “banner year” for the company.
  • Central Bankshares now uses Jack Henry’s Banno for online banking.
  • UN Migration Agency Selects Kony to Accelerate Digital Strategy to Reach More Migrants.

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.

Symbiont Announces Strategic Investment from Medici Ventures

Symbiont Announces Strategic Investment from Medici Ventures

Two months ago, Symbiont announced an undisclosed strategic investment from China’s Hundsun Technologies. At the time, Symbiont CEO Mark Smith called the investment “a clear vote of confidence” from a “strong partner in Asia.”

Last week we learned that the votes of confidence are still coming in. Blockchain technology investor Medici Ventures has teamed up with Symbiont, providing strategic investment to the company and announcing a collaboration involving both Medici and its parent company Overstock.com. The partnership will enable Medici Ventures to become the first company to register corporate ownership shares using the blockchain.

Pledging to deliver “best-in-class investor transparency,” Jonathan Johnson, President of Medici Ventures and Overstock.com Director, said, “We also anticipate using blockchain to administer Medici Ventures’ fund interests from inception, thereby providing our investors with end-to-end recordkeeping on a blockchain and administration of investor interests using smart contracts.”

Pictured: Adam Krellenstein, Symbiont CTO and co-founder, discussing “Distributed Ledgers and Smart Contracts,” during his presentation at FinDEVr New York 2016.

Symbiont’s Smith highlighted investor interests as a major use case for his company’s technology. “Management of fund interests is a logical extension of Symbiont’s Smart Securities capabilities,” he said, “and we welcome a partner that is equally committed to the principle of ensuring accuracy of shareholder records at all times during a company’s life cycle.”

The issue was explained in more detail by Overstock CEO and founder Patrick Byrne. He called the process of signing over personal ownership of shares received in the IPO process “a Faustian bargain” for entrepreneurs. He praised Delaware for pioneering registration of ownership shares using blockchain technology. “Delaware is giving entrepreneurs a path to retaining direct ownership of their shares after their IPOs, Byrne said. “Thanks to Delaware, accuracy in securities ownership records can be achieved.”

Symbiont’s blockchain-based technology enables easy-to-understand modeling of complex financial instruments and fully digitizing those instruments into a distributed ledger. The company’s Smart Security technology avoids error-prone manual processes and tampering while increasing transparency, reducing risks, and enabling participants to share ledger statuses and updates. The technology also helps companies save on back and middle office costs.

Founded in 2015, Symbiont is based in New York City. The company is an alum of our developer’s conference, having presented “Distributed Ledgers and Smart Contracts” at FinDEVr New York 2016.

Layer’s New Messaging Design System Helps Create Perfect Conversational Experiences

Layer’s New Messaging Design System Helps Create Perfect Conversational Experiences

Customer engagement has been a big theme on the Finovate blog this month. As our recent guest features from SaleMove (Enhancing the Customer Experience in Financial Services) and SuiteBox (Top Five Trends in Customer Engagement Technology) attest, technologies that enable better communication between businesses and customers are among the most promising areas of innovation in fintech.

So the news that FinovateSpring 2017 alum Layer has released a new customer engagement-enabling solution is the latest reminder of the trend toward more and better engagement options for businesses. The San Francisco-based company launched its Conversation Design System earlier this month, giving enterprises new tools to quickly build and customize conversational experiences for their customers “in just minutes.”

Pictured (left to right): John Montgomery (COO) and Bill Hu (VP Sales) demonstrating Layer’s customer conversation platform at FinovateSpring 2017.

Layer’s technology leverages chatbot technology and data analytics to provide a wide range of businesses with a customer conversation platform that makes it easier to engage with consumers over the channel of their choice – especially mobile. Through a combination of AI and human participation, Layer’s platform enables financial professionals to provide advice, counseling, and customer service in a unified experience that is more convenient and less intrusive for the contemporary client. “From (our) vantage point, we have seen a dramatic shift in the way people, consumers and businesses alike, want to do business,” Layer’s John Montgomery said during his FinovateSpring presentation earlier this year. Pointing out that both the phone and email were becoming less popular modes of communication, Montgomery added that transitioning to a platform like Layer also gave benefits to businesses. “(This platform can) accelerate the time it takes to do a sales cycle, help you be more scalable in the delivery of services and ultimately lead to greater lifetime value,” he said.

VP of Product at Nordstrom Trunk Club Justin Hughes praised the way the technology helped them improve customer engagement. Calling Layer’s messaging technology “central to the shopping experience and critical to our conversation effectiveness,” Hughes credited Layer for helping the company become and and remain better connected with its customers.

Layer also announced seven new integrations including integrations with Front, Salesforce, and Zendesk. These add to the company’s previously announced IBM Watson and Microsoft integrations. “Today’s announcements unlock boundless potential for brands across all industries,” Layer CEO Ron Palmeri said. “Unlike messaging platforms that simply move text messages from point A to point B, Layer gives brands everything they need to build truly amazing, delightful customer experiences on essentially any channel,” he said.

Founded in 2013, Layer demonstrated its customer conversation platform at FinovateSpring 2017. With more than 1,000 customers including nerdwallet, Qapital, and snapswap, the company has raised more than $42 million in funding, including a $15 million Series B led by Greycroft Partners in February.

Finovate Alumni News

On Finovate.com

  • IBM Launches Security Testing Services for IoT Developers.
  • TickSmith Lands $2 Million Investment from Illuminate Financial.
  • Layer’s New Messaging Design System Helps Create Perfect Conversational Experiences.

Around the web

  • Vantiv partners with Columbia Bank to provide new payment services to business customers.
  • Commerce Bank to offer AP and AR automated service, CashFlow Complete, powered by Bill.com.
  • Xero and Recurly team up in new integration that combines subscription management with cloud accounting.
  • Fintech Supercharger features an interview with Roman Stanek, Founder and CEO, GoodData.
  • BARC Score Data Discovery identifies MicroStrategy as a ‘Market Leader’ ranking #1 in “Platform Capabilities”
  • Chicago Tribune column on savvy saving highlights MaxMyInterest.
  • Village of Palos Park Introduces Passport’s Parking App.

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.

Microblink’s Photopay Expands to New European Markets

Microblink’s Photopay Expands to New European Markets

Photopay, the payment receipt scanning solution from Best of Show winner Microblink, is now available in more countries including France, Norway, Spain, and Sweden. The news is the latest step in Microblink’s European expansion – begun four years ago – and brings the company’s data extraction technology to an even wider range of SME customers.

In a blog post discussing the news, Microblink pointed to the way Photopay improved the UX for banking app users. The company cited a case study with Erste Bank that realized a 100x increase in the number of mobile banking transactions and and 30x increase in mobile banking transactions as a share of all transactions. Erste Bank also reported an increase of 160% in the number of its mobile banking users. In addition, Microblink highlighted a European bank that credited Photopay for the high marks its mobile banking app received. “More than 40 renowned European banks have recognized the value photopay provides in terms of UX,” the blog authors wrote.

Pictured: Microblink Co-Founder and SMD Izet Ždralović demonstrating BlinkReceipt at FinovateSpring 2017.

Photopay leverages optical character recognition technology (OCR) to capture data from payment slips and receipts, removing manual data entry – and the potential for error – from the process. Photopay also offers an automatic field-by-field scanning feature that makes it easy to more accurately extract data from unstructured sources including small business invoices. The real-time technology operates locally on the user’s mobile device and does not require an internet connection to work. Photopay is available as an SDK that can be easily integrated into existing banking apps and fully customized into a white-label solution that’s virtually invisible to the user.

Founded in 2013 and headquartered in London, U.K., Microblink demonstrated its BlinkReceipt solution at FinovateSpring 2017, taking home Best of Show honors. Earlier this month, Zagrebačka banka, the largest bank in Croatia, announced that its mobile app would feature portrait and document scanning technology provided by Microblink. In addition to Photopay and BlinkReceipt, Microblink offers SDKs that add ID scanning (BlinkID), barcode scanning (pdf417), and general purpose data scanning (BlinkInput) to mobile apps. The company, which launched the popular, free Photo Math app in 2014, includes Cherubic Ventures among its investors. Damir Sabol is founder and CEO.

Finovate Alumni News

On Finovate.com

  • Microblink’s Photopay Expands to New European Markets.

Around the web

  • Daon and Experian talk about fighting fraud with biometric technology on CNBC’s Squawk Box.
  • Let’s Talk Payments interviews Yodlee’s Terry McKeown on managing credit risk.
  • Banking Exchange profiles alternative lender, PayActiv.
  • The Silicon Review features Vantiv Head of Product for Integrated Payments, Moin Moinuddin.
  • FintekNews sits down with Unison Co-CEOs Thomas Sponholtz and Jim Riccitelli to discuss shared real estate investing.
  • Tesobe organizes cross-industry payments hackathon in Australia – Aug 11 thru 13th.
  • CRN names Veridium on its list of 2017 Emerging Vendors.
  • Total and Worldline Partner with Africa-based InTouch to help deploy Guichet Unique, a digital solution for retail networks.

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.

Klarna Announces Strategic Investment from Permira

Klarna Announces Strategic Investment from Permira

Less than a month after announcing strategic fundings from Visa and Brightfolk A/S, Klarna is back in the fintech headlines with news of a new strategic investment from a partnership advised by global investment firm, Permira. The partnership will acquire shares from a trio of existing shareholders – DST Global, General Atlantic, and Niklas Adalberth – in a transaction that will leave Adalberth as the only equity shareholder of the three. TechCrunch reports that the deal is worth between $225 million and $250 million, and estimates a valuation of $2.5 billion. They note further that Klarna has raised “somewhere in the region of $500 million in the last 7 weeks.”

Klarna CEO and co-founder Sebastian Siemiatkowski (pictured) put the new investment in the context of its recent brand new banking license, referring to the company’s growth from an innovator in enhancing the shopping experience to “a consumer-oriented and technology intensive bank.” Permira principal Andrew Young echoed Siemiatkowski’s sentiments, calling the company a “unique scale fintech innovator” for its work in e-commerce. “We see many vectors that will drive future success and with Sebastian, we look forward to supporting the company’s future organic, geographic, and acquisition growth strategies,” Young said.

Headquartered in Columbus, Ohio, Klarna demonstrated its technology at FinovateSpring 2012. The company provides payment solutions for 60 million consumers and 70,000 merchants transacting across borders. Participating in 18 markets around the world, Klarna supports direct payments, pay after delivery, and installment plans via a single-click “purchase experience” that gives shoppers a wider range of payment options. Founded in 2005 in Stockholm, Sweden, Klarna noted 50% growth in recorded transaction volumes in 2016 – including partnerships with 17,000 new merchants.

New Investment Boosts Betterment Valuation to $800 Million

New Investment Boosts Betterment Valuation to $800 Million

It’s a Funding Friday here at Finovate! In addition to news of a strategic investment in Klarna, and new funding for credit scoring startup, Aire.com and DoubleNet Pay’s latest investment, we learn today that robo advisor Betterment is now that much closer to achieving unicorn status – courtesy of a $70 million investment from Sweden’s Kinnevik. The investment takes Betterment’s total capital to $275 million, and gives the robo advisor a valuation estimated at $800 million.

Praising the “strong partnership” between his firm and Kinnevik, Betterment CEO Jon Stein said that the investment will enable the company to “continue to build products that put even more money back in our customers’ pockets. The Kinnevik-led round, an extension of Betterment’s Series E from last year, featured participation from existing Betterment investors, Bessemer Venture Partners, Francisco Partners, and Menlo Ventures.

Senior Investment Director for Kinnevik, Chris Bischoff explained the nature of the extended Series E, saying that his firm’s approach was to “(invest) over multiple rounds into high-performing technology-enabled companies.” He added, “after a year of investment, we saw additional opportunities for growth and proposed the financing to Betterment. We are excited about the opportunity to deepen our relationship.”

Betterment CTO Dustin Lucien during his presentation with Quovo co-founder and CTO Michael Del Monte (not pictured) at FinDEVr New York 2016.

The news from Betterment arrives on the heels of the company’s launch of its Socially Responsible Investing (SRI) Portfolio. SRI enables investors to grow their capital while avoiding investments in companies whose products, services, and overall corporate behavior are considered to have a “negative social impact.” Instead, as VP of Financial Advice and Planning Alex Benke explained at the Betterment blog, “companies deemed to have strong social responsibility practices, such as Microsoft, Google, Proctor & Gamble, Merck, CocaCola, Intel, Cisco, Disney, and IBM may make up a larger portion of the SRI portfolio.”

A year ago, Betterment celebrated more than $5 billion under management. Today, the robo advisor boasts of nearly $10 billion AUM. In addition to its fully-automated, algorithm-managed investment portfolio, Betterment unveiled a new hybrid robo advisory service in June that includes either annual or unlimited check-ins with Betterment’s team of certified financial planners. Stein told Bloomberg Markets the company would use the new capital to grow the hybrid service, in particular.

Founded in 2008 and based in New York City, New York, Betterment demonstrated the Multiple Goals feature of its platform at FinovateFall 2011. More recently, the robo advisor joined Quovo at FinDEVr New York 2016, where Betterment CTO Dustin Lucien and Quovo co-founder and CTO Michael Del Monte presented “The Power of Aggregation Demonstrated by Quovo and Betterment.” The firm was named to CB Insights Fintech 250 list last month – along with 43 of its fellow Finovate/FinDEVr alums. We featured the robo advisor in our look at Passive Investing in our Savings Tech Horizon series this spring.

Finovate Alumni News

On Finovate.com

  • Aire Pulls in $5 Million, Lands Partnerships with Zopa and Toyota Financial Services.
  • New Investment Boosts Betterment Valuation to $800 Million.
  • Klarna Announces Strategic Investment from Permira.

Around the web

  • PayPal extends partnership with JP Morgan Chase, providing greater payment options for consumers.
  • Taulia joins European E-invoicing Service Providers Association.
  • Persistent Systems agrees to acquires Swiss firm Parx Werk in deal valued at $16 million.
  • ID Analytics partners with Acxiom to strengthen risk assessment and combat fraud.
  • Dwolla adds Multi-User Feature to the Access API Dashboard.
  • Neener Analytics joins Plug&Play fintech accelerator.
  • Tavant selected by Fairway Independent Mortgage To Transform Its Digital Lending Experience.

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.