Finovate Alumni News

On Finovate.com

  • Roostify Announces Integration with PCLender to Streamline Loan Origination Process.
  • New Version of the Pendo Data Platform from Pendo Systems Brings Machine Learning, AI to Spreadsheet Data.
  • Fiserv Makes In-Branch Customer Identification as Easy as a High Five.
  • Radius Selects Chief Product Officer.
  • Tuition.io Has Saved Users More Than 5,000 Years of Student Loan Payments.

On FinDEVr.com

  • Mambu Unveils FinTech Startup Program.

Around the web

  • Indopay to leverage Up eCommerce Payments platform from ACI Worldwide.
  • Thomson Reuters named 2016 European Tax Technology Firm of the Year by International Tax Review.
  • Revel Systems partners with Vantiv Integrated Payments to launch the “Rev Up Your Dream” social media contest.
  • FICO acquires cybersecurity firm QuadMetrics, announces plans for “enterprise security scores.”
  • Betterment named Fastest-Growing Firm in the 2016 Financial Times List of 300 Top Registered Investment Advisers.
  • Independent Research Firm Designates GMC Software a Leader in Customer Communications Management.

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.

Opentech Teams Up with MasterCard, Swiss Bankers to Launch Card Management App

Opentech Teams Up with MasterCard, Swiss Bankers to Launch Card Management App

.Opentech_homepage_June2016

Swiss Bankers Prepaid Services has leveraged OpenPay, the wallet service platform from Opentech, to build a new version of its card management app, MyCard.  The app gives users the ability to fully personalize security settings for their MasterCard Prepaid cards, receive notifications and alerts, and make notes and add photos to transactions. “We are proud of the results we have achieved with this solution,” Swiss Bankers CEO Thomas Beck said. “With the new app, we now have a best-in-class user experience, inline with Swiss Bankers tradition of user-centered design.”

The app is available for free and can be downloaded from the Apple Store and at Google Play. MyCard supports English, Italian, German, and French.

OpenTech_SwissBankers

Calling the new release “an important milestone for our OpenPay platform,” Opentech CEO Stefano Andreani praised his company’s partnership with MasterCard and highlighted the functionality of the OpenPay platform. Andreani noted that e-commerce features such as MasterPass and proximity payment via MDES give banks a solution that can be easily customized. All of this, Andreani added, with the “scalability and robustness of a product distributed on a global scale.” The OpenPay platform features a direct interconnection with the MasterCard ecosystem, giving FIs the ability to get personalized, feature-rich wallets quickly to market without excessive burdens on IT.

Founded in 2003 and headquartered in Roma, Italy, Opentech demonstrated its Enhanced Hybrid Apps at FinovateEurope 2013.

Finovate Debuts: Race Data Helps Community Banks Turn Customer Data into Market Intelligence

Finovate Debuts: Race Data Helps Community Banks Turn Customer Data into Market Intelligence

RaceData_homepage_June2016

“Know Your Customer” is a good axiom when it comes to authentication and security. But knowing your customer is also critical for banks looking to provide the best, most relevant, most personalized service. Market intelligence is the tool for this kind of “know your customer,” but for many small and medium-sized banks the challenge of  turning raw customer data into actionable market intelligence has been both pricey and technically prohibitive.

This is where Race Data comes in. The Canadian analytics company specializes in providing community banks and credit unions with powerful data management, database and behavioral analytics, marketing automation, and one-to-one communications solutions. The company’s technology enables marketing teams to improve customer engagement, build loyalty, and grow per customer revenue.

RaceData_stage_FS2016

Pictured (left to right): Jeff Deppen (CIO, Orrstown Bank) and RaceData’s Jeff Helm (Director, Account Services) demonstrated the Relationship Accelerator at FinovateSpring 2016 in San Jose.

At FinovateSpring, Race Data demonstrated its Relationship Accelerator. This technology is designed for the smaller customer portfolios and modest budgets of smaller banks and credit unions. The solution combines Race Data’s proprietary data management technology with analytics and lifecycle marketing to give smaller FIs the tools they need to keep current customers and gain new ones.

“If your customer relationships can’t resist $150 (offer to switch banks), then you’re just a commodity stuck in a cycle of incentives,” said Jeff Helm, Race Data’s director of account services, from the Finovate stage this spring. “To break the cycle, you have to do something different: sophisticated analytical methods that transform your data into customer knowledge and focus your resources on high-impact engagements.”

Company facts:

  • Founded in 2013
  • Headquartered in Hamilton, Ontario, Canada
  • Solution is currently in Phase 1 with partner, Orrstown Bank

RaceData_JeffHelmWe spoke with Jeff Helm, director of account services at Race Data, during the networking session on the final day of FinovateSpring in May. We followed up with a few questions by e-mail.

Finovate: What problem does your solution solve?

Jeff Helm: Community banks exist to serve local markets through deep local knowledge and personalized relationships. The banking convenience technologies that their customers want, however, have ended up reducing direct knowledge of customer needs which particularly disadvantages small banks that cannot compete through economies of scale.

Typical customized data-driven marketing solutions that could help focus their limited resources on high-impact customer engagements are not accessible to small banks because their customer bases are too small to achieve analytic reliability; it’s not a traditional bank’s marketing expertise, and the costs to implement and operate them are too expensive. The Relationship Accelerator provides a robust customer-engagement platform that small banks can afford.

Finovate: Who are your primary customers?

Helm: Right now we are looking for a few pioneering banks that recognize the potential for our solution and want to start using and learning with the Phase 1 product. Our best guess is that those will be banks in the $1 billion to $10 billion asset range. As we continue to develop and refine the product, we’ll be able to reduce implementation costs so that it can appeal to smaller banks.

We’re not sure where the cutoff is between choosing the Relationship Accelerator versus a customized solution. It depends somewhat on how much banks are already doing with their customer data: the more a bank is already doing themselves, the less likely they’ll be able to adopt a standardized solution.

Finovate: How does your solution solve the problem better?

Helm: It’s important to understand that there is no plug-and-play solution for this problem. You can’t just go buy software because CRM data management is highly complex and requires specific marketing capabilities to how how to drive. So the advantage of the Relationship Accelerator is that it’s powered by the combination of Race’s data management technologies and marketing expertise.

In particular, by configuring Race’s proprietary data-management hub to support large-volume data processing and complex CRM administration for multiple bank clients, we are able to create the largest dataset that’s needed for analytic reliability. A small bank simply couldn’t achieve this by itself. Then, standardizing the system and logical architectures enables significant cost savings and scale: standardized data structures and transformations make it easy to plug in additional banks, and standardized marketing programs built on the banking customer lifecycle realize cost efficiencies from centralized management.

Finovate: Tell us about your favorite implementation of your solution?

Helm: We have partnered with Orrstown Bank to develop this product for the community banking industry so obviously that would be our favorite implementation. Orrstown people understood that they needed to start using their customer data more effectively and envisioned their solution … work[ing] for other community banks. They sought a fintech partnership because they knew they couldn’t solve the problem on their own. Orrstown has given us the testbed we need to build the platform and start working with bank data and customer interactions.

Finovate: What in your background gave you the confidence to tackle this challenge?

Helm: Race has more than 20 years’ experience implementing and operating custom database and data-driven marketing solutions for some of Canada’s largest companies as well as international clients, so we understand these challenges very well. Some of our data-driven marketing implementations required extraordinarily complex and high-volume processing. Over the past few years we have been building a high-power data-management hub and a library of tactical marketing components to support our service business so we already had a lot of the pieces.

Finovate: What are some upcoming initiatives from your company that we can look forward to over the next few months?

Helm: Our priority—now that the Phase 1 product has been launched—is to bring a few additional clients on board so that we can learn faster about customer interactions and start using that knowledge to begin Phase 2 development.

In Phase 2 we’ll start building the highest-value marketing programs with proactive outbound contact capabilities. At [that] point we’ll start having bigger impact on engagement as the Relationship Accelerator can start driving more timely and relevant interactions.

Finovate: Where do you see Race Data a year or two from now?

Helm: We’ve started with a somewhat conservative business plan that targets steady client growth over the next few years. Ideally we’d like to start building Phase 2 later this year. We’re open to opportunity though; we met companies at Finovate that presented options we hadn’t thought about. Some would instantly create faster growth potential which would force us to invest in critical enablers that aren’t currently in the works.

Either way, once Phase 2 is up and running we’ll look for opportunities to extend the Relationship Accelerator platform to other verticals. Smaller companies in fragmented industries with a lot of customer data could benefit from this kind of data-driven marketing solution.


Check out Race Data’s demo video from FinovateSpring 2016.

Finovate Alumni News

On Finovate.com

  • “Shoeboxed Partners with ScanSnap Cloud for Receipt Scanning”
  • “Finovate Debuts: Race Data Helps Community Banks Turn Customer Data into Market Intelligence”
  • “Opentech Teams Up with MasterCard, Swiss Bankers to Launch Card Management App”
  • “HelloWallet Launches Savings and Debt Guidance Tool”
  • “Kasasa Reaches One Millionth Account”
  • Check out this week’s FinDEVr APIntelligence

Around the web

  • Fiserv announces its new biometric authentication solution, Verifast: Palm Authentication.
  • Markit to provide fixed income pricing data and liquidity metrics for the European Commission.
  • INETCO to power real-time transaction monitoring for Turkey’s Central Processor for Bank Payment Cards, Bankalararasi Kart Merkezi (BKM).
  • ThinkAdvisor looks at how Blackrock is taking on Schwab and Vanguard with FutureAdvisor.
  • ebankIT expands its headquarters facilities in Porto to grow R&D team.
  • Corezoid moves platform-as-a-service core banking engine to AWS.
  • Blackhawk Network Appoints Sachin Dhawan as CTO and SVP.
  • PCWorld votes Xero as its top-choice accounting software in 2016.

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.

 

Fidor Bank Opens its Doors in Dubai; Ge Drossaert Tapped as Managing Director

Fidor Bank Opens its Doors in Dubai; Ge Drossaert Tapped as Managing Director

Fidor_homepage_June2016

Munich-based Fidor Bank is expanding to Dubai. The move will enable the bank to better serve companies outside of Europe, and comes less than a year after the innovative FI opened offices in the U.K. Fidor CEO Matthias Kröner called the expansion “only a matter of time” given the growing number of inquiries he says his bank has received from companies in Asia, Africa, and the Middle East. “The Dubai Silicon Oasis is an ideal location for this project, because it’s one of the biggest free zones in Fidor_GeDrossaertthe Middle East, with more than 1,000 companies already installed,” he said.

To lead operations in Dubai, Fidor Bank has hired Gé Drossaert (pictured) to serve as managing director. Drossaert comes to Fidor with more than 20 years’ experience in finance and IT, having worked as CTO of banking and capital markets for Asia, Middle East, and Africa for Computer Sciences Corporation, and as head of transformation and change at Saudi Hollandi Bank.

Fidor Bank received its banking license in 2009 and demonstrated its FidorPay-Account at FinovateEurope 2011. One of the world’s more innovative banks when it comes to technology, Fidor Bank was the first bank to deploy the Ripple protocol back in 2014, and was a winner of the Bank Innovation Award in 2013. More recently, Fidor teamed up with Telefonica Germany to launch a mobile bank account, O2 Banking, and earned a spot in The FinTech50’s Inaugural Hall of Fame. Fidor Bank presented “No Stack Banking” at our developers conference, FinDEVr San Francisco 2015, and “How to Start Your Digital Bank—Mobile Apps and APIs Included,” at FinDEVr New York 2016 this spring.

Finovate Alumni News

On Finovate.com

  • “Interactions Names New CFO”
  • “Fidor Bank Opens its Doors in Dubai; Ge Drossaert Tapped as Managing Director”

On FinDEVr

  • “BlockCypher to Developers: Your Ethereum Toolkit is Ready

Around the web

  • CU Times’ white paper features IDology.
  • Crowdfund Insider interviews Zopa CEO Jaidev Janardana.
  • Bank of Newington and Cleveland State Bank deploy Core Director platform from Jack Henry.
  • Narrative Science partners with client reporting and communications software company, Vermilion Software.
  • Pirean opens local support centre for the Australia and New Zealand markets.
  • Insuritas to power insurance agency for Community Resource Credit Union.
  • VoicePIN opens U.S. office.

This post will be updated throughout the day as news and developments emerge. You an also follow all the alumni news headlines on the Finovate Twitter account.

2016 CNBC Disruptor 50 Features Klarna, Kabbage, Twilio, and Motif Investing

2016 CNBC Disruptor 50 Features Klarna, Kabbage, Twilio, and Motif Investing

CNBC_Disruptor2016

What does it take to win a spot on the 2016 CNBC Disruptor 50? Ask alternative online broker Motif Investing. They’ve done it three times in a row.

“We’re very proud to be continuously recognized by CNBC for our hard work and commitment to making smart investing easy,” Motif founder and CEO Hardeep Walia said. “The CNBC Disruptor list is a well-respected industry benchmark and we’re honored to be ranked on the list for the past three years.”

Or ask cloud communications and authentication specialist Twilio, a FinDEVr alum (FinDEVr San Francisco 2015) enjoying its third consecutive year on CNBC’s Disruptors List of companies “whose innovations are revolutionizing the business landscape.”

Sponsored by Nasdaq, the CNBC Disruptor 50 for 2016 was released last week. And among some of the easy-to-call favorites like Uber and SpaceX and Snapchat, there are additional familiar faces, especially to fans of Finovate and financial technology. This year more than 750 companies competed for the 50 spots in CNBC’s Disruptor roster. Combined, the 50 companies in this year’s roster have raised more than $40 billion in venture capital and have an implied market valuation of $242 billion. Joining Motif Investing and Twilio in this year’s roster are alums Klarna at #8 and Kabbage at #35. This marks Klarna’s second year in a row on the list, and Kabbage’s first.

Klarna was featured earlier this month in PYMNTS.com in a look at the tech scene in Stockholm and, in May, the company’s CEO Sebastian Siemiatkowski was interviewed in BankNxt. In April, Klarna announced a partnership with U.K. e-commerce provider EKM. CNBC Disruptor 50 newcomer Kabbage just reached $2 billion in loans underwritten last month. Also in May, Kabbage announced a partnership with fellow Finovate alums OnDeck and CAN Capital to launch a pair of new initiatives: the Innovative Lending Platform Association and Smart Box. Both projects are geared toward improving transparency among online lenders and borrowers. In April, Kabbage teamed up with Santander to bring same-day financing to small businesses in the U.K.

Here’s a quick look at Finovate alums that have made the CNBC Disruptor 50 in years past.

  • 2015 CNBC Disruptor 50 featured alums TransferWise, Personal Capital, Motif Investing, Zen Payroll, Coinbase, Klarna, Wealthfront, Betterment, Twilio, Narrative Science
  • 2014 CNBC Disruptor 50 featured alums Motif Investing, TransferWise, Personal Capital, Wealthfront, Lending Club, Coinbase, Bill.com, Nexmo, Betterment, Twilio
  • 2013 CNBC Disruptor 50 featured alums Boku, Lending Club, Twilio, Wealthfront

Motif Investing demoed its Advisor Platform at FinovateSpring 2014. At FinDEVr San Francisco 2014, Twilio discussed the challenges of multifactor authentication in its presentation, “Authy 2FA in 20 Minutes.” Klarna demonstrated its e-commerce solution at FinovateSpring 2012. And Kabbage demoed its small business line of credit, the Kabbage Card, at FinovateSpring 2015.

Ping Goes the Blockchain: Partnership Brings Consensus, Kill Switch with New Platform

Ping Goes the Blockchain: Partnership Brings Consensus, Kill Switch with New Platform

PingIdentity_homepage_June2016

Just days after being acquired by Vista Equity Partners, Ping Identity has introduced a new identity-management app that could pave the way for a seamless and secure user experience referred to as “continuous authentication.”

The announcement from Ping Identity came as part of the launch of distributed app platform designer Swirlds (as in “Shared Worlds”), which emerged from stealth last week and unveiled its hashgraph-distributed consensus platform. Swirlds enables developers to create distributed apps—permissioned and non-permissioned—with high throughput, fairness, and community consensus. The Swirlds platform differs further from the blockchain in that it has the ability to provide a timestamp of events as well as an evidentiary record. This functionality, which goes beyond what is available via the bitcoin blockchain, enables the platform to support a wide variety of transactional applications ranging from banking and trading markets to gaming and identity apps to cryptocurrencies and public ledgers.

Swirlds_homepage_June2016

Swirlds CEO Leemon Baird said, “Nobody is talking about building a stock market on Bitcoin blockchain, but you could do it on Swirlds.” Baird added that Swirlds could serve as a standard for distributed session management. Here is a detailed overview of Swirlds’ “fair, fast, provable, Byzantine, ACID compliant, efficient, inexpensive, timestapped, DoS resistant and optionally non-permissioned” technology.

What Ping Identity adds to the Swirlds platform is a way to manage identities across sessions and apps. Essentially, the technology keeps identity session databases synced to facilitate global session logout. The technology could be used, for example, to do away with the notion of “logging in” to a specific app or session. Instead, the user’s identity could follow them across apps and sessions, creating a better user experience while maintaining a high level of security. “The reason for application sessions is we don’t have continuous authentication,” Mance Harmon told ZDNet’s Identity Matters: “If the identity in the session goes away, you need a kill switch that works across client types.” Harmon is Ping’s senior director of architecture and labs.

In addition to the technical partnership, Ping Identity has invested capital in Swirlds, as well. “Swirlds represents a huge technological breakthrough that can change the way distributed-consensus communities function across a myriad of industries and use cases,” Patrick Harding, Ping’s Identity CTO, said. Calling it “the new identity standard,” Harding said the technology “solves the major challenges that identity professionals face in conducting and verifying session logout.”

Founded in 2003 and headquartered in Denver, Colorado, Ping Identity demonstrated PingFederate, Cloud Identity Connectors, and integration with third-party products at FinovateEurope 2012. The company announced new features to its PingFederate security solution in February, adding elastic scalability and contextual multifactor authentication. Named one of the top-100 tech companies in Colorado in 2015 by Built in Colorado, Ping Identity was acquired by Vista Equity Partners in June.

Finovate Alumni News

On Finovate.com

  • “2016 CNBC Distruptor 50 Features Klarna, Kabbage, Twilio, and Motif Investing”
  • “Ping Goes the Blockchain: Partnership Brings Consensus, Kill Switch with New Platform”
  • “Ripple Receives BitLicense to Sell XRP”

Around the web

  • FICO launches its Academic Engagement Program, helping business students get hands-on experience with analytic software.
  • Mashable features Dashlane in its list of “7 can’t miss apps.”
  • Ping Identity partners with blockchain innovator, Swirlds.
  • Braintree announces new integrations with Demandware and Netsuite.
  • Top Image Systems earns spot in the Russell Microcap Index.
  • Bloomberg Businessweek profiles TransferWise, ‘London’s Lonely Unicorn.’
  • The economist looks at Strands and Entrepreneurial Finanace Lab’s roles for businesses in developing countries.
  • Unicredit launches Appathon powered by Open Bank Project.
  • Crowdtrader looks at C.K. Mack’s new take on crowd-sourced real estate investing.

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.

 

Bento for Business Banks $7 Million in New Investment

Bento for Business Banks $7 Million in New Investment

bentoforbusiness_homepage_June2016

In a round led by Comcast Ventures, Bento for Business has raised $7 million in new funding. The Series A also featured the participation of existing investors from Anthemis Group, Blumberg Capital, and Lionbird, as well as new investor Dan Henry, former CEO of NetSpend. The investment takes Bento’s total capital to $9.5 million.

The company, which has seen 170% quarter-over-quarter growth since launching 13 months ago, says the funds will be used to add management talent, develop new features, and pave the way for expansion into new verticals. Dave Zilberman, managing director at Comcast Ventures, will join Bento’s board of directors as part of the deal.

Bento_stage_FS2015

Pictured (left to right): Bento for Business co-founders Farhan Ahmad, CEO, and Sean Anderson, CPO, demonstrated their technology at FinovateSpring 2015.

Bento for Business provides small businesses with solutions to help them manage expenses better. The company’s first offering was the Bento MasterCard, a prepaid card that employers can give to their employees to make qualified purchases.  Business owners can easily set usage rules for the card based on spending amount and spending category, as well as set spending time limits. Owners also can turn the cards on or off with a single click. Bento provides a dashboard that enables the commercial card owner to see which cards are being used and how, as well as track expenses by location, employee, and type.

“Banks want to service small businesses, but it’s been profitable not to,” Ahman explained during a conversation at FinovateSpring last year. “We want to work with banks, with service providers … to curate and build beautiful, simple and most of all useful products that are built just for small businesses,” he said. Read more about the company in our Finovate Debut feature.

Founded in 2014 and headquartered in San Francisco, California, Bento for Business demonstrated its platform at FinovateSpring 2015. The company was profiled by Newsfactor Business Report in its look at prepaid debit cards for businesses back in December, the same month Bankless Times featured the company and its employee-spending controls solution. PYMNTS.con also took a look at Bento last fall.

 

 

FT Partners New Research Report on Digital Wealth Management Features a Dozen Finovate Alums

FT Partners New Research Report on Digital Wealth Management Features a Dozen Finovate Alums

FTPartners_logo_2The new research report on digital wealth management from Financial Technology Partners is a timely reminder of just how deep the firm’s dedication to, and insight into, the fintech world goes (that the report features a dozen Finovate and FinDEVr alums is pretty neat, too).

FT Partners’ report “Are the Robots Taking Over? The Emergence of Automated Digital Wealth Management Solutions” looks at the different platforms and business models used by digital wealth management companies, as well as the response by industry incumbents. The 140+ page report also features interviews with CEOs from leading major digital wealth-management companies such as Betterment, Nutmeg, and SigFig.

Writing about this FT Partners’ report on digital wealth management for Bloomberg View, columnist and money manager Barry Ritholtz noted:

“For those of you who may not have thought much about how technology might affect Wall Street, the work you do each day, and how you do it—not to mention what it means for your careers—this report is invaluable.”

Ritholtz outlined how his own experience as a money manager had been shaped by the rapidly changing technology landscape (“My office is small, but thanks to technology, and fintech in particular, we are able to be very productive with just 14 people,” he wrote). He also admits this productivity comes at a cost for some. “Those people who don’t adapt will find themselves with limited career options,” Ritholtz writes.

So who are the disruptors in the digital wealth management space of whom both FT Partners and Ritholtz speak?

Betterment_logo

 

dyme

 

 

 

futureadvisorlogo

 

 

HedgeableLogo

 

 

iQuantifiLogo_FF2014

 

 

Jemstep_Logo

 

 

  • Founded in 2008
  • Headquartered in Los Altos, California
  • Kevin Cimring and Michael Blumenthal are joint CEOs
  • Acquired by Invesco, January 2016
  • FinovateSpring 2013

LearnVest_logo

 

 

  • Founded in 2009
  • Headquartered in New York, New York
  • Alexa von Tobel is CEO and founder
  • Acquired by Northwestern Mutual, March 2015
  • FinovateFall 2013

MotifInvesting_logo_150x

 

 

NutmegLogo-thumb-200x56-5002-thumb-150x42-5003

 

 

Personal-Capital-Logo

 

SigFig_logo

 

 

tradeking_logo

 

 

 

  • Founded in 2005
  • Headquartered in Boca Raton, Florida
  • Donato Montanaro is CEO
  • Acquired by Ally Financial, April 2016
  • FinovateSpring 2008

 

Finovate Alumni News

On Finovate.com

  • “Bento for Business Banks $7 Million in New Investment”
  • “FT Partners New Research Report on Digital Wealth Management Features a Dozen Finovate Alums”

Around the web

  • Daily Fintech profiles Kreditech in a feature on the future of consumer banking.
  • CNN features Betterment, Wealthfront, and StockTwits in a list of the 10 best investing apps.
  • Spend Matters takes a look at the latest investment in Tradeshift and what it means for innovation in the procurement industry.
  • Oren Levy, Zooz CEO, writes in mobile payments today about the rising deployment of mobile wallets in developing markets.
  • Baseventure wins Red Herring Top 100 North America award.

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.