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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Experian announced a partnership with Envestnet | Yodlee to help lenders in Australia take advantage of open data.
The collaboration will help Experian manifest its open data strategy in the country following its application to be an Accredited Data Recipient.
Both Experian and Envestnet | Yodlee have been Finovate alums since 2012 and 2016, respectively.
Information services company Experian has picked a partner as its official Open Data API provider in Australia. The company is teaming up with data aggregation and analytics platform Envestnet | Yodlee in an alliance that will allow Experian to access data under the Consumer Data Right (CDR) from data holders including Australia’s Big Four banks and more than 70 Australian FIs.
“Open Data solutions have the capability to solve two of the biggest challenges for Australian lenders: the accuracy of data to support responsible lending and streamlining the customer experience to get a faster decision,” General Manager of Experian Digital Simone Jemmett explained. “The more consumers that opt in to share data through Open Banking, the faster it will deliver the value it has in more mature data markets spurring innovation and greater competition among lenders,” Jemmett said.
The partnership news comes in the wake of Experian’s application to the Australian Competition ad Consumer Commission (ACCC) to become an Accredited Data Recipient under the CDR back in December. This is key step in becoming a part of Australia’s open banking ecosystem, and enabling Experian to focus on delivering fast and accurate affordability assessments. By leveraging Envestnet | Yodlee’s APIs, Experian will be able to help lenders shift to an emphasis on using Open Data sources rather than the traditional credit application process that requires manual uploads and data entry, as well as other inefficient practices.
“Lending is a valuable use case for Open Data with tangible benefits for lenders and borrowers,” Envestnet | Yodlee A/NZ Country Manager Tim Poskitt said. “With Experian coming into the CDR ecosystem, Australian Open Banking is reaching a tipping point and we’re ready for adoption to accelerate in 2023.”
A Finovate alum for more than a decade, Experian made its most recent appearance on the Finovate stage at FinovateFall in 2018. More recently, the company has partnered with fellow Finovate alum Zopa, which integrated Experian Boost into its credit-decisioning process. Experian began the year teaming up with decentralized and secured lending portfolio provider Credefi, and launching a new solution called CreditLock. This new feature enables customers to lock their Experian Credit Report to defend themselves against fraud and identity theft. “Our goal is to create products that help improve people’s financial wellbeing and give them more control over their finances,” Experian Head of Product Management Jayne Sankoh-Beacom said. “With this new feature we can now give our customers that extra layer of protection against identity fraud.”
Making its most recent Finovate appearance at FinovateFall 2021, Envestnet | Yodlee finished 2022 with news of a “deeper integration” between its Redi2 BillFin client billing solution and Schwab Advisor Services. This deeper integration gives advisors on Schwab’s platform who are using BillFin to access capabilities such as flexible billing setup and standardized templates, as well as reminders and alerts. “This deeper level of integration will allow even more data to seamlessly flow back and forth between the BillFin and Schwab platforms,” Envestnet Head of Billing Technology Fermin Garcia explained.
The decision by digital asset platform Bakkt to pivot toward B2B technology solutions and away from consumer-based crypto products appears to be part of the greater re-evaluation that many fintechs are doing in the wake of the crypto crash of 2022. The company, which made its Finovate debut at FinovateFall last September, announced this week that it was turning the page on its consumer-facing app, launched in March 2021. Instead, the Alpharetta, Georgia-based fintech will focus on helping businesses provide crypto and loyalty experiences to its customers via SaaS and API solutions.
“As we continue to gain traction with our B2B2C strategy, we are laser focused on providing our partners and clients with seamless solutions that best serve their needs,” Bakkt President and CEP Gavin Michael said. “The discontinuation of the app ensures we are supporting the relationship our partners and clients have with their customers. With this move, we are focusing our investment on our core solutions that have product-market fit and are positioned to scale quickly.”
Bakkt’s decision to shutter its consumer-based crypto app comes in the wake of the company’s agreement to acquire crypto trading platform Apex Crypto from Apex Fintech Solutions back in November 2022. With more than 30 fintech partners and more than five million customers, Apex Crypto is expected to help support Bakkt’s B2B2C strategy of bringing more crypto-based solutions to clients in a range of verticals.
Bakkt’s consumer crypto app is set to sunset just over one month from now, on March 16. Current users of the app will continue to be able to access their crypto and cash on the platform courtesy of a new online, device-agnostic solution. The new experience will enable users to check crypto balances, as well as access transaction reports for tax purposes.
Founded in 2018, Bakkt demoed its Crypto Connect technology at FinovateFall last year. The solution helped consumers use their current financial services institution’s mobile app to buy, sell, and hold cryptocurrencies in a secure, trusted environment. In December, Bakkt laid off 15% of its exempt employee base in a bid to better control costs as the cryptocurrency downturn and FTX scandal soured the much of the public – as well as investors – on the space.
A publicly traded company on the New York Stock Exchange since the fall of 2021, Bakkt is listed under the ticker “BKKT.” The firm has a market capitalization of $433 million.
Paytech HUMBL unveiled its new mobile wallet this week.
The new offering enables users to buy, sell, and hold digital assets, and includes a search engine and a social media platform.
Currently available for Apple users, an Android version of the wallet is expected “soon.”
California-based paytech HUMBL is the latest company to launch a mobile wallet with more than just money in mind. The company’s HUMBL Wallet offering not only enables users to buy, sell, and hold digital assets; it also serves as a search engine and a social media platform with independently verified user profiles and brands.
“The HUMBL Wallet allows global customers to quickly search, verify, and transact with each other in new ways in the digital economy,” HUMBL CEO Brian Foote explained. “As consumers move from Web 2 onto Web 3 via HUMBL, we believe that digital wallets, as well as verified people and products, will start to become a fundamental expectation of future customers.”
The iOS version of the wallet is now available in the Apple App store in more than 140 countries. For Android users, the Wallet and the company’s social media platform HUMBL Social are currently available as separate applications in the Google Play Store and will be merged together “soon.” The company noted that it will continue to bring new capabilities to the wallet, including the ability to accept SMB/merchant payments.
The addition of a search engine in the wallet makes it easy for users to find news, images, and videos online without having to leave the platform. But the technology also provides a blockchain-based search capacity to find verified NFTs across Ethereum, Polygon, BLOCKS, and more. The wallet can be used to store NFTs as well as connect to Web 3 social media platforms like Collab.Land. HUMBL Social, accessible via the wallet, offers a social media alternative that enables verified users to connect with other verified accounts.
The addition of HUMBL Social is designed to help users avoid the “fake profiles, ratings, reviews, and merchandise” of Web 2, according to Foote. Adding the problem of fake bots accounts and ad click fraud to the mix, Foote said that the HUMBL platform is designed to give online users an alternative. “The HUMBL platform is being built to help solve for those issues on Web3, using blockchain and other new technology solutions, such as KYC/KYB profile verification and decentralized blockchain registries for faster payments, goods, and services authentication,” Foote said.
Founded in 2019, HUMBL ended 2022 by raising $20 million in an equity financing agreement with GHS Investments. Also last year, the company entered into a strategic technology partnership with food delivery company Great Foods2Go, and acquired digital wallet BizSecure for an undisclosed sum.
Hong Kong and Shanghai Banking Corporation (HSBC)launched a new digital payments solution this week. The new offering, called HSBC Merchant Box, is designed to make it easier for SMEs to make international payments across regional and global e-commerce platforms using real-time exchange rates.
HSBC Merchant Box will be available to selected HSBC commercial customers initially. The technology is subscription-based and is fully integrated into HSBC Business Internet Banking. A range of fee options helps make the offering more affordable for businesses of different sizes and payment requirements. The company noted that it will extend the service to all customers in Hong Kong “in the coming months.”
Cross-border ecommerce is a significant factor in China’s external trade operations, HSBC Head of Commercial Banking Frank Fang explained. As a major regional trade hub, Hong Kong is seen as especially well-located to take advantage of the opportunity for greater and easier trade between companies in the area. HSBC Merchant Box also arrives at a time when there is greater travel between Hong Kong and mainland China due to the easing of COVID restrictions regionally.
“Simple and cost-efficient payment management solutions are key to the success of small- and medium-sized ecommerce merchants,” HSBC Managing Director and Regional Co-Head of Global Payments, Asia Pacific Yvonne Yiu said. “HSBC Merchant Box reduces the complexity of cash flow management for SMEs by giving them speed, control, and visibility on their international receivables and payments.”
Speaking of Hong Kong and payments, HK-based digital payment platform developer Yedpayannounced a new partnership this week. Yedpay is teaming up with Venture Cap, the Thailand-based subsidiary of ASL Securities, as well as the Hong Kong Polytechnic University and Easylink to help drive fintech innovation in the ASEAN region. “ASEAN” refers to the Association of Southeast Asian Nations and includes Vietnam, Thailand, Singapore, Philippines, Myanmar, Malaysia, Laos, Indonesia, Cambodia, and Brunei.
The announcement was made as part of the 16th Asian Financial Forum (AFF). YedPay offers an open payment platform that helps merchants process credit card transactions and e-wallet payments in brick-and-mortar locations as well as online. The firm has played a major role in developing Hong Kong’s cashless market, and in helping Hong Kong’s taxi industry go digital. At the forum, Yedpay COO Beatrice Tai said that the company planned to expand its business across borders, with an initial stop in Thailand. Yedpay also expects to launch new diversified financial products and build an “ASEAN Payment Hub” that would connect markets in ASEAN, Hong Kong, Taiwan, and mainland China.
Co-founded in 2014 by Chief Operating Officer Beatrice Tai, Yedpay offers an all-in-one payment platform for merchants. The company’s solution supports multiple payment methods on a single device, giving customers greater flexibility when making payments and making the collection process easier for merchants. Yedpay is also known as The Payments Cards Group Ltd.
Hong Kong-based digital bank ZA Bankintroduced new CEO and Executive Director Ronald Iu. He was appointed to his new position after serving as Chief Strategy Officer for Za Bank parent company ZA International in February 2022, and was subsequently promoted to Chief Risk Officer at ZA Bank. The banking and finance executive has more than 20 years of experience in the industry, having been chief executive at Airstar Bank, a General Manager and Executive General Manager at China CITIC Bank International Ltd, and CEO of HKCB Finance Ltd.
Iu takes the top spot from outgoing Rockson Hsu who was ZA Bank CEO for nearly four years. ZA Bank has not yet announced a new Chief Risk Officer.
One of the first virtual banks to be established in Hong Kong, ZA Bank received its license from the Hong Kong Monetary Authority in 2019, publicly launched in 2020, and introduced its business banking services for local SMEs in 2021. The firm currently has more than 600,000 users.
Here is our look at fintech innovation around the world.
Sub-Saharan Africa
Is Nigeria ready for a “cashless economy”? Techpoint Africa looks at the country’s attempt to redesign its currency as a cautionary tale.
Tempo France and Nairagram teamed up to enable remittances from the EU to 20 countries in Africa.
TechCabal reviewed the “State of Buy Now, Pay Later” in South Africa.
A new fintech called Fierce has emerged from stealth with $10 million in seed funding.
The company’s iOS-based app features a cash account with an APY of up to 4.25%; a Rewards Credit Card is planned for later this year.
Fierce is backed by investors including Pendrell, AP Capital, Wheelhouse Digital Studios, and Space Whale Capital.
Fierce, a fintech based in New York, emerged from stealth this week with an iOS-based app and $10 million in seed funding. The investment came from institutional investors including Pendrell, AP Capital, Wheelhouse Digital Studios, and Space Whale Capital, as well as angel investors. The funding will help Fierce add to its team, build up its customer base, and market its solution.
“Fierce is a customer focused, feel-good finance app,” Fierce founder and CEO Rob Cornish said. “We are truly mission-driven in our effort to bring the best of fintech to people, so we built an incredibly advanced platform with a simple UX to give as much yield as possible to our customers. Our goal is to help users increase their wealth while enjoying an empowering, positive experience on the app.”
Founded in 2021 by a team of financial services professionals with backgrounds in both challenger and traditional banking, as well as cryptocurrencies and U.S. stock exchanges, Fierce offers users an all-in-one financial app for savings, spending, investing, and more. Fierce features an FDIC-insured cash account with an APY of up to 4.25% and no monthly fees. The app also enables users to buy shares of both stocks and ETFs – including the purchase of fractional shares – as well as participate in Fully Paid Securities Lending (FPSL) through which investors can earn passive income by lending their stocks. Note that FPSL does not prevent investors from trading their shares at any time.
Fierce also said that it plans to introduce a Fierce Rewards Credit Card later this year. The card will offer 1.5% cash back on all spending, and all interest and rewards earned are automatically redeemed into the user’s portfolio. Additional functionality – such as access to personal loans, mortgages, insurance, and more – is planned, and Fierce expects to offer an Android version of its app later in 2023.
“Fierce is entering the market with a powerful solution that allows customers to take control of their finances while calming the financial anxiety that many people face today,” Fierce angel investor David Krell said. “We’re confident in the company’s ability to provide customers with the means to create financial stability for the long run.”
Bitcoin While Black: The impact of the cryptocurrency crisis on communities of color
One of the relatively underreported stories of 2022 – at least in the fintech press – was the impact of the cryptocurrency crisis on communities of color – especially African-American communities. At first glance, this might appear to be an odd take: why – and how – would a community that has historically been more un- and underbanked than the population at large end up being especially affected by a crisis in such a niche area of contemporary finance?
As Annie Lowrey wrote in a comprehensive article for The Atlantic back in November, it was years of “neglect” from the traditional financial system that made African Americans especially vulnerable to the appeal of cryptocurrencies as an alternative. Add to this the post-George Floyd “racial reckoning” and renewed emphasis on ethnic identity among many African Americans, and it is easy to see how many came to see investment in cryptocurrencies as a way of building the kind of generational wealth that has eluded black Americans for, well, generations.
And there was no lack of enthusiasts encouraging black Americans to pursue this path, either. For much of 2021 and into 2022, my inbox was filled with queries and requests for interviews from entrepreneurs eager to make the case that cryptocurrencies were the ticket to take black Americans to, if not wealth, then at least a greater sense of financial independence and empowerment. Books like Bitcoin & Black America and Bitcoin for Black People, as well as events like the Black Blockchain Summit all helped encourage African Americans to believe that they could do things with digital assets that too few had been able to accomplish via the world of traditional banking and fiat currencies.
I’ll leave it up to Lowrey to describe what went wrong – though the perennial problem of investors arriving late to a booming market helps explain a lot of it. Whether the cryptocurrency bust of 2022 sours African American investors on digital assets in an enduring way remains to be seen. But Bitcoin won’t be the last boom to come knocking on the doors of the African American community – after it has already visited every other neighborhood in town.
Revolut introduces crypto staking
Revolut announced this week that it is giving its customers in the U.K. and Europe the opportunity to earn cryptocurrency rewards if they allow financial institutions to “stake” their coins as part of a blockchain transaction verification process. Staking, as explained by Revolut’s Kirsty Daniel this week, involves participating in proof-of-stake blockchains which, like mining, help support the security of the overall network. Only certain coins are available for staking – Ethereum, Cardano, Polkadot, and Tezos, for example (not Bitcoin), and individuals who participate in staking can earn a significant percentage return for their (or the blockchain’s) efforts. Daniel noted that cryptocurrency stakers can earn up to 11.65% APY in crypto rewards by staking qualified crypto holdings.
Read more about staking in this extensive explainer provided by Coinbase. What is staking?
Among the risks to staking are the fact that there tends to be a “lockup” or “vesting” period during which the cryptocurrency cannot be transferred. This can be a challenge because holders are not able to trade staked coins during this period – even in the event of a major market disruption. Revolut’s decision was seen by analysts as an affirmation of the company’s commitment to supporting cryptocurrencies as the industry has been rocked by scandal in recent months.
Blockchain infrastructure platform Paxos opens R&D center in Israel
Blockchain and tokenization infrastructure platform Paxos announced last week that it was launching an engineering research and development center for security and cryptography in Israel. The center will house senior, staff, and principal engineers that have specialized skills in enterprise-grade security, applied cryptography, and blockchain technology. Paxos expects the R&D center to serve as an incubation hub for research into building security and cryptography solutions on top of the blockchain.
“We’re redefining financial markets and we believe our next generation of both software and hardware technical experts call Israel home,” Paxos Senior Director of Engineering Vitaliy Liptchinsky said. “As a safe, regulated platform that has continuously and steadily grown amidst all past digital asset market volatility, Paxos offers talented developers the opportunity to join a strong team uniquely positioned to serve some of the most sophisticated global enterprises.”
Paxos’ infrastructure reaches more than 400 million users. The largest issuer of regulated, transparent stablecoins, Paxos uses technology to tokenize, trade, settle, and maintain custody of digital assets. The company has developed blockchain solutions for institutions like fellow Finovate alums PayPal, Mastercard, and Nubank; and has raised more than $540 million in funding. Charles Cascarilla is co-founder and CEO.
Cointelegraph unveils its list of the Top 100 “crypto heroes and villains” for 2023
For the fourth year in a row, Cointelegraph has released its list of the Top 100 most influential people in the cryptocurrency and blockchain industry. The publication will reveal the list in its entirety over the next three weeks.
Starting with #100 through #91, some of the more interesting – and unexpected – entries so far include Russian tennis star Maria Sharapova at number 96 (“Sharapova has been involved in a series of investment ventures in recent years, including in the cryptocurrency and blockchain industries, and is currently an investor in MoonPay, a blockchain payments company …”) and “Artificial Intelligence” at #93.
Writing on request about AI’s presence on the list, ChatGPT opined: “… it is expected that artificial intelligence will have a signifiant impact on the cryptocurrency and blockchain industry … one of the main ways that AI will impact the cryptocurrency and blockchain industry is through the use of smart contracts.”
The rise of AI-focused cryptocurrencies
Speaking of the relationship between cryptocurrencies and AI, CoinDesk published an interesting article this week on the way AI-focused cryptocurrencies have outperformed Bitcoin. “Vastly” in the words of author Shaurya Malwa.
What tokens are we talking about? In recent weeks, tokens for platform like Alethea’s artificial liquid intelligence (ALI) and Image Generation AI (IMGNAI) have turned in the kind of performances that have cryptocurrency investors and traders buzzing. Malwa noted that while Bitcoin and ether have returned a more-than-respectable 30% each over the past month or so, these AI-focused upstarts are producing returns that dwarf those – and in less time.
Malwa seems to suggest that much of what is driving these new assets is the same combination of novelty and opportunity that initially drove Bitcoin and ethereum. Malwa quotes Ravindra Kumar, founder of crypto wallet Frontier, who credited “early interest, potential, and hype” for the outperformance of AI-focused cryptocurrencies, but still observed that there are some “innovative and compelling use cases” emerging.
Investing and savings platform Stash introduced new CEO Liza Landsman.
Landsman will take the helm from co-founder Brandon Krieg, who will transition into the role of Head of Business Development.
Stash made its Finovate debut at FinovateFall 2017 in New York.
Investing and savings platform Stash is starting the month with a brand new Chief Executive Officer. Effective Monday, technology executive, veteran venture investor, and independent Stash board member Liza Landsman took over the top spot at the New York-based fintech. Landsman succeeds Stash co-founder Brandon Krieg, who will transition into the role of Head of Business Development. Co-founder Ed Robinson will continue to serve as company President.
“Liza is the right person to lead Stash as we continue to hit major revenue and customer milestones and evolve the business,” Krieg said. “Her experience and knowledge of consumer products, e-commerce, and fintech is ideally suited to the opportunities ahead.”
With more than two million active subscribers, Stash offers a banking and investing app designed to simplify personal financial management. With a starting price of $3 a month, the company offers a variety of investing, banking, education, and financial advice subscription-based products. Last year, Stash launched its new banking infrastructure Stash Core, that will enable the company to launch new capabilities in credit, savings, lending, and more. Stash’s new banking account experience – which includes access to Stash’s upgraded Stock-Back Debit Mastercard – was built on Stash Core, and is an example of the kind of solutions that will be available via the platform.
“Stash Core gives us flexibility and ownership of every customer touchpoint,” Krieg said when the technology was unveiled last September. “It’s the future of inclusive finance and transformative to our business.”
In her role as CEO, Landsman will lead a company that topped $100 million in revenue and achieved growth of nearly 30% in 2022. At a time of economic uncertainty – including concerns over inflation and fears of recession – Stash customers set aside nearly $3 billion on the Stash platform via regular, automated deposits averaging $30 each.
“Stash empowers millions of Americans to manage and grow their wealth,” Landsman said. “Its simple-yet-disruptive subscription platform, rooted in a deep commitment to the financial well-being of our customers, is exactly what millions of everyday Americans need today.”
Landsman comes to Stash after serving in major operations and leadership roles at Jet.com, Citigroup, BlackRock, and E*Trade. Most recently Landsman was a General Partner at global venture capital firm NEA.
Customer engagement innovator Larky has teamed up with Wisconsin-based Forward Bank.
Courtesy of the partnership, Forward Bank has integrated Larky’s nudge push notifications into its banking app.
Nudge provides personalized, timely push notifications and can increase customer engagement by 7x compared to traditional marketing methods.
Larky, a fintech that specializes in helping banks and other financial institutions better engage with their customers and members, has partnered with Wisconsin-based Forward Bank. The institution has deployed Larky’s nudge solution, which delivers personalized, timely push notifications to account holders. The technology is integrated into the FI’s existing mobile banking app and Forward Bank plans to use nudge for a variety of use cases including post-visit surveys, geofenced event announcements, and on-site financial service recommendations, as well as thank you messages to account holders after they opt in to receive nudge notifications. The goal is to help Forward Bank better anticipate customer needs, preferences, and behavior.
“Previously, we reached our account holders through email and direct mail, which presented challenges with timeliness,” Forward Bank VP and Marketing Director Jennifer Sobotta said. “By now delivering nudge notifications that reach account holders more quickly with relevant messages, we hope to strengthen our commitment to them as a trusted financial resource and ultimately strengthen our long-term customer relationships.”
A customer-owned, independent community bank, Forward Bank serves communities in central Wisconsin and nearby areas. Founded in 1919 and headquartered in Marshfield, Forward Bank has more than $930 million in assets and is a major supporter of local businesses, schools, clubs, and sports organizations.
Headquartered in Ann Arbor, Michigan, Larky made its Finovate debut at FinovateFall 2014 in New York. Founded in 2012, Larky enables financial institutions to better engage their customers by leveraging push notifications as a sophisticated marketing tool to promote products and services, popularize financial literacy and financial wellness initiatives, and important branch information and updates. The company says its technology can help financial institutions boost mobile app engagement and generate revenue growth via an engagement rate that is 7x better than traditional marketing strategies.
“This collaboration signifies a momentum step forward and reinforces our belief that push notifications are not optional, but rather an integral must-have for financial institutions seeking to successfully compete in today’s digital age and enhance customer engagement,” Larky CEO Gregg Hammerman said when the Finastra integration was announced.
Larky has raised $2.4 million in funding according to Crunchbase. The company’s investors include Michigan Angel Fund and North Coast Technology Investors.
Finovate VP and host of the Finovate Podcast Greg Palmer (@GregPalmer47) recently sat down with James Robert Lay of the Banking on Digital Growth podcast. The two talked about a wide range of topics, from Finovate’s return to live, in-person fintech conferences to the challenges of building a truly people-focused fintech business in a post-COVID world.
Palmer: “What I didn’t necessarily expect was the way that the financial industry was going to respond to the pandemic by really diving in to technology and seeing a lot of these kinds of older holdouts all of a sudden saying, “wait a minute, we really have to do things differently.” This impetus, this drive to change, I think is the thing that surprised me the most.”
Lay and Palmer also talked about what it takes for a fintech company to manage the balance between creating novel, ground-breaking technology on the one hand, while remaining accessible, and easy to use for consumers on the other.
Palmer: “(Financial technology) tends to draw people in who are comfortable with numbers, who are comfortable in front of a computer screen, who want technology to do things that it hasn’t been able to do before, which is obviously really impressive and these are intelligent people. But what sometimes gets missed is the idea that, at the end of the day, you’re not building technology for yourself.”
Palmer: “The number of people, the number of interesting companies that came across our radar over 2022 was really exciting. And I think, for me, obviously getting people there is great, getting the right companies on stage is great, but the energy of the room was what was really positive for me. Hearing those conversations, watching people connect and engage with each other organically and discovering where you have common interests or places where you can help each other out, that’s really why we do what we do at Finovate.”
On the challenge of putting people first in fintech and financial services
Palmer: “Well, I think you hit the nail on the head when it comes to people. I think people forget that financial technology is ultimately about serving people … at the end of the day, you’re not building technology for yourself. You’re building technology for other people to use. And if I look back and say, what is one of fintech’s biggest failings over my time (in) fintech, I think it’s really been around people.”
On leveraging data to become a more people-focused business
Palmer: “The first step is understanding the data that you have, looking at this and really making sure that you have a good idea of how people are engaging with your technology. The other one, which is almost so simple that I can’t believe I need to say it, (is) you need to hire up. You need to hire people who have this as a skill.”
Listen to the complete interview, which includes examples of some of the fintech innovators that Greg Palmer has worked with in recent years – from Dreams to MX – who truly “get it” when it comes to creating innovative, people-first, fintech innovations. And be sure to catch up with the latest episodes of the Finovate podcast, including an interview with Ukrainian fintech founder Igor Tomych of Fintech Garden.
Neobank Oxygen has raised $20 million in Series B funding, taking its total capital to $45 million according to Crunchbase.
The funding -“led largely by return investors” – will help Oxygen further develop its product, improve the user experience, and grow its workforce.
San Francisco, California-based Oxygen won Best Digital Bank in the 2021 Finovate Awards.
San Francisco-based digital banking platform Oxygen has secured $20 million in Series B funding. The funding round was “led largely by return investors,” and will support product development and enhancements to Oxygen’s core offerings. The funding will also help Oxygen grow its team to help meet demand. The company’s total capital raised now stands at $45 million, according to Crunchbase.
Oxygen’s funding announcement comes at the same time that it is introducing a new CEO. David Rafalovsky, former Group CTO and Global Head of Operations & Technology for European digital banking ecosystem Sber, will take the helm, succeeding company founder Hussein Ahmed. Ahmed will remain with the company as Oxygen’s Chief Product Officer.
The new funding and new CEO “mark a new era” for Oxygen, Rafalovsky said in a statement. He underscored the size and importance of the small business community in the United States, and said that he believed Oxygen should play a role in helping these enterprises grow and thrive. “I look forward to charting the path forward for the company, building world class solutions for small businesses and gig economy participants,” Rafalovsky said. “Not only are small businesses driving the U.S. economy, but they also keep the American dream alive.”
A neobank designed from the start to serve both consumers and small businesses, Oxygen offers digital natives, creatives, and entrepreneurs an all-in-one digital banking platform that provides cashback rewards, early direct deposit, money transfers, and high-yield savings. Oxygen offers four tiers of membership – from the $0 annual fee “Earth” level to the $199.99 annual fee “Fire” level – which enable accountholders to choose their preferred debit card spending and payroll direct deposit limits – as well as the annual spending required in order to access these features. Banking services are provided by The Bancorp Bank, which also issues the Oxygen’s Visa debit card.
Founded in 2020, Oxygen was named Best Digital Bank in the 2021 Finovate Awards and Best Overall Mobile App in the Fintech Breakthrough Awards that same year. In December, the company launched its OTags functionality that makes it easier for Oxygen accountholders to send and request money, OGifts – which enable multiple Oxygen members to send money to a single Oxygen member – and more.
In this week’s edition of Finovate Global, we take a look at a handful of developments in Estonia’s fintech industry. With a population of more than 1.3 million, Estonia has the Baltic Sea to the west, the Gulf of Finland to its north, Latvia on its southern border, and the Russian Federation on its eastern flank. The Northern European nation achieved its independence from the Soviet Union in 1991 following the “Singing Revolution” between 1988 and 1990. Estonia is considered a high-income economy per the World Bank, and has been referred to as a “Baltic Tiger” due to the country’s rapid growth.
First up is news on the regtech front. Estonian startup Salvannounced that it recently secured a $4.3 million (€4 million) seed round extension. The funding was led by New York-based ffVC and featured participation from Germany’s G+D Ventures, as well as existing investors. Salv’s signature offering, Salv Bridge, is a real-time collaborative crime-fighting platform that leverages the power of its network to reduce non-compliance and combat financial crime. The company said that the funding will help accelerate development of its technology, as well as support Salv’s expansion into other markets, starting with Poland.
“The digitalization of the financial industry has resulted in an avalanche of financial crime, and the numbers are only projected to grow,” Salv CEO Taavi Tamkivi said. “Salv Bridge is proven to be effective against money laundering, sanctions, and fraud.”
The new funding takes Salv’s total capital raised to $8.2 million. Headquartered in Estonia’s capital city of Tallinn, Salv was founded in 2018. The company wrapped up 2022 with a pair of new partnership announcements – teaming up with Estonian-based banking platform Tuum and collaborating with greentech innovator Single.Earth.
Speaking of partnerships, Estonia-based identity verification and AML services provider Veriffannounced a partnership with digital asset company Baanx. Veriff will provide identity verification services to the firm, enabling Baanx to confirm user identity during the onboarding process. Veriff’s technology can verify more than 11,200 government-issued identification documents from more than 190 countries and in 47 different languages.
“Cryptocurrencies are disrupting the world of finance, and the crypto industry has evolved dramatically over the past few years,” Veriff COO Indrek Heinloo said. “However, transactions between users are generally anonymous and instantaneous, providing more opportunities for fraudsters and criminals looking to evade conventional anti-money laundering controls. And right now, fraud rates for crypto transactions are at an all-time high.” Heinloo added, “it has never been more important for online banking platforms that offer crypto services to be several steps ahead of these bad actors.”
Veriff was founded in 2015 and is based in Tallinn. The company has raised more than $192 million in funding from investors including Tiger Global Management and Alkeon Capital, who led the company’s Series C round in January of 2022. Also this month, Veriff announced the appointment of Javier Ortega as the firm’s new Chief Revenue Officer.
In recent years, Finovate has showcased a handful of Estonian fintechs. Among the Finovate alums that call Estonia their home are: Bankish, which demoed its technology at FinovateEurope 2020; Modularbank, which made its Finovate debut at FinovateEurope 2019; and Crypterium, which demoed its technology at FinovateFall 2018. At FinovateEurope 2023 next month, we will feature our latest Finovate alum from Estonia: call center performance management software provider, Ender Turing. Learn more about our upcoming fintech conference, FinovateEurope, March 14 through 15 in London, at our FinovateEurope hub.
Here is our look at fintech innovation around the world.
Asia-Pacific
Japan’s Fujitsu forged a partnership with Mizuho Bank to help clients better manage ESG and SDG data.
Tech.eu profiled Germany-based connectivity platform, Team Viewer, and its new partnership with global consumer goods company Henkel.
Lithuanian regtech firm AMLYZE teamed up with fraud prevention company Ondato.
Turkey-based fintech Papara reached 15 million users, ranking the firm among Europe’s largest neobanks.
Middle East and Northern Africa
Egyptian fintech MNT-Halan earned unicorn status after securing $400 million in funding.
MENA-based financial services enabler Paymob forged a new partnership with Egypt-based digital warehousing and fulfillment management platform Khazenly.
For a second year in a row, Finovate is commemorating Black History Month by showcasing those Black and African-American founders and executives who demoed their company’s fintech innovations on the Finovate stage in 2022.
Ariam Sium – VP of Product with FinGoal
Sium not only leads Product at FinGoal, the self-described “Listener. Thinker. Doer” also led FinGoal to a Best of Show award at FinovateSpring last year. In her role at FinGoal, Sium said that she uses the tenets of focus and value to govern each product decision made in the rapidly changing world of fintech.
FinGoal most recently demoed its technology at FinovateFall in September. The Boulder, Colorado-based company offers an insights platform that helps financial institutions better understand their customers.
Joseph Akintolayo – CEO and Founder of Deposits
Akintolayo is a “builder of ethical products that solve complex problems in fintech, insurtech, and social enterprise.” As CEO and founder of Deposits, Akintolayo heads a startup that offers banks, brands, and communities a plug and play solution to deliver financial services such as payments and lending, without requiring coding experience.
Deposits made its Finovate debut at FinovateFall in September. The Dallas, Texas-based company was founded in 2021.
Left to right: Joseph Akintolayo and Samuel Ailemen of Deposits
Samuel Ailemen – Director of Mobile and Identity at Deposits
As Director of Mobile and Identity at Deposits, Ailemen helped lead the company’s demo at FinovateFall 2022. A fraud prevention expert who is “building cool stuff everywhere”, Ailemen leverages his talent as “a software engineer who loves research” to solve real-world problems using new technologies.
Nathan Gibbons – Chief Experience Officer at QuickFi
Gibbons oversees the customer experience at QuickFi, a company that provides “nearly instant,” self-service 24/7 term financing to business equipment buyers. Demoing the company’s technology at FinovateFall last year, Gibbons and colleague Jillian Munson earned QuickFi its first Finovate Best of Show award.
A C-suite executive with QuickFi since 2018, Gibbons previously spent more than 11 years as Project Manager and later Vice President with First American Equipment Finance. QuickFi was launched by founders of First American Equipment Finance in 2018.
Michael Duncan – CEO and Founder of Bankjoy
Founder and CEO of Bankjoy, Duncan demoed his company’s Business Banking Platform at FinovateFall 2022. The company he launched in 2015 offers a range of modern banking technology solutions, including mobile and online banking, as well as a banking API.
Before founding Bankjoy, Duncan spent more than four years as a Programmer/Analyst and later Software Development Manager at Michigan First Credit Union.
Michael Broughton – CEO and Co-founder of Altro
Broughton co-founded and is CEO of Altro, a solution that helps consumers build credit through non-traditional recurring payment processes such as rent and even monthly subscriptions to services like Netflix. Altro’s app is free-to-use, and helps increase financial literacy while boosting existing credit and helping stabilize credit histories. The company made its Finovate debut last May at FinovateSpring.
Broughton is also Vice Chairman of the Board of Directors for the USC Credit Union (since 2017), and was both a Scout at Sequoia Capital and a Thiel Fellow at The Thiel Foundation.
Christen Wright – Head of Product at Spave
As Head of Product at Spave, Wright was part of the three-person demo team that won Best of Show at the company’s Finovate debut last May at FinovateSpring. Spave is a financial wholeness solution that enables users to easily save and donate as they purchase products and services. The Spave app provides purchase tracking and analysis, goal setting, group giving, and more.
Wright has a diverse background, having served in senior management roles at AT&T and Delta Air Lines. A member of 100 Black Men of Atlanta, a mentoring and empowerment organization for African American youth, Wright is a graduate of the University of Georgia’s Terry College of Business, where he earned an MBA.
Anthony Heckman – as Director of Sales at unitQ
Heckman was part of the founding team at unitQ, a company that turns customer insights into data-driven decisions for firms ranging from Chime to fellow Finovate alum Klarna. At FinovateSpring 2022, Heckman led the company’s live demo of its unitQ monitor, which serves as a centralized, searchable, repository for customer feedback.
Heckman founded TWC Advisors in October of last year. The firm specializes in providing go-to-market and sales support to early-stage, high-growth, VC-backed startups.
