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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
U.S. Bank introduced a new tool to give small business owners the ability to see a 90-day forecast of their cash flow.
The new offering is the latest innovation from U.S. Bank’s Business Essential suite of banking and payments solutions.
U.S. Bank made its Finovate debut last year at FinovateFall 2021. At the conference, the bank demoed its Cards-as-a-Service (CaaS) technology.
U.S. Bank unveiled a new solution to enable small business owners to see a 90-day forecast of their cash flow. The tool allows users to leverage external data from their clients along with their own U.S. Bank accounts to provide more comprehensive insights. The offering is designed to address what U.S. Bank Chief Digital Officer Irv Henderson called “a top concern for today’s business owners.”
“Giving our clients the ability to forecast their cash flow outlook, including, in the future, the capability to consider various scenarios, will provide them with vital information to make smart decisions for today and the future,” Henderson said.
U.S. Bank’s new cash flow tool gives users a 90-day historical view along with its forecast of account balances up to 90 days ahead. The bank plans to introduce additional functionality to enable users to build “what if” scenarios and observe the impact of those scenarios on future cash flow.
The tool is currently available to clients of U.S. Bank from their online dashboard. Part of U.S. Bank’s Business Essentials suite of banking and payments solutions, the cash flow tool is the bank’s latest effort to “bring together digital capabilities and the power of data” to provide small businesses with actionable insights, according to Henderson.
U.S. Bank made its Finovate debut a year ago at our all-digital FinovateFall 2021 conference. At the event, the Minneapolis, Minnesota-based bank demonstrated its Card-as-a-Service (CaaS) technology that enables companies to extend corporate credit digitally. With the touch of a button, virtual cards -with precise spend limits, tokenization, and encryption – can be pushed to users’ mobile wallets in real time. The Card-as-a-Service solution also gives businesses the ability, via API integration, to build custom virtual payment experiences in their ecosystem.
The parent company of U.S. Bank National Association, U.S. Bancorp serves millions of customers through a range of businesses including consumer and business banking, payment services, corporate and commercial banking, wealth management, and investment services. The institution has $591 billion in assets as of June 2022.
A financial institution serving area creatives, Nashville, Tennessee-based Studio Bank has partnered with Corserv.
The credit card issuing program provider will enable Studio Bank to launch a comprehensive credit card program featuring virtual cards, automated credit decisioning, and more.
Founded in 2018, Studio Bank is the first newly chartered de novo bank to launch in Nashville in more than a decade.
“We are excited to launch this next level of innovation,” Studio Bank Chief Experience Officer April Britt said. “Our clients have a unique set of credit card and payment needs as business owners, leaders, and creatives. We have been able to partner with Corserv to create a program to provide an enhanced credit card user experience with all the conveniences of the modern economy.”
A digital financial institution, Studio Bank is designed to bring banking services to Nashville area creatives. And by “creatives,” Studio Bank looks to serve a variety of creative communities: from musicians and code writers to entrepreneurs, social activists, and even parents working to build better lives for their families. Founded in 2018, Studio Bank was the first newly chartered de novo bank to launch in Nashville in more than 10 years. Reaching profitability in its second year of operation, Studio Bank has assets of more than $750 million as of the end of Q2 2022.
Studio Bank’s partnership with Corserv comes less than a month after the bank announced raising $38 million in new funding. The fresh capital includes $18 million in equity issued this spring as well as $20 million in unsecured notes issued from Studio Financial Holdings, a new holding company also announced last month. “As I have always said from the founding of Studio Bank, we offer the sophistication and capability of a large, regional bank coupled with the customer service of the very best community bank we could create,” Studio Bank CEO and President Aaron Dorn said when the funding was announced. “Our growth and expansion into key communities in Middle Tennessee show we are fulfilling that promise.”
Atlanta, Georgia-based Corserv offers a turnkey credit card issuing program that gives financial institutions the ability to offer branded credit cards to consumers, businesses, and commercial customers. The company’s program includes features such as virtual card support for ePayables, automated credit-decisioning, sales and servicing portals, transparent reporting, and hosted and secure PCI compliant software.
“Our program is designed to enable banks, like Studio Bank, to own their credit card financials without the need to add expertise, infrastructure, or staff,” Corserv CEO Jerry Craft said. “We look forward to providing Studio Bank with the tools to serve their unique customer base with innovative payment solutions for their evolving needs.”
This year, Corserv has partnered with regional financial institutions such as Massachusetts-based BayCoast Bank, Madison-based correspondent bank Bankers’ Bank, and The Bank of Missouri (TBOM). In August, the company received Visa Ready Certification for its Payment Cards as a Service APIs (PCaaSA) issuer processor program.
Blend and PNC Bank announced a strategic partnership to help the bank digitally optimize its online mortgage process.
The partnership between Blend and PNC Bank comes in the wake of Blend’s Instant Home Equity product, launched in August.
Blend made its Finovate debut in 2016 and is also an alum of Finovate’s developer conference, FinDEVr.
A strategic partnership between PNC Bank and cloud banking software company Blend will help the financial institution digitally optimize its online mortgage application process. With its new mortgage application platform, PNC will enable its customers to digitally apply for a mortgage and import information such as bank and payroll data directly into the application simply by providing their credentials. Customers further will benefit from a single portal for tracking the status of their mortgage application, completing any additional tasks, as well as reviewing and electronically signing loan documentation. The portal also allows PNC’s mortgage loan officers to collaborate in real time with customers.
PNC EVP and Head of Mortgage Peter McCarthy called the partnership “an ideal combination of digital self-service technology and support for our customers as they navigate one of the biggest and most important purchases in their lifetimes.”
The strategic partnership announcement comes just over a month after Blend announced the launch of its automated instant home equity product. Integrating a range of recent enhancements to its mortgage suite, the solution provides income and identity verification, title, decisioning, property appraisal, and notarization. Lenders can use Blend Instant Home Equity to provide borrowers with a personalized offer that can be approved instantly and closed within a few days.
“Leveraging all that we’ve built on the Blend platform – for both Mortgage and Consumer Banking solutions – we’re able to deliver an instant home equity experience to help our customers ensure a seamless experience for applicants, grow their home equity businesses, and reduce costs to originate in a challenging marketplace,” Head of Blend Nima Ghamsari said.
Blend demonstrated its Data-Driven Mortgage solution at FinovateSpring 2016 and returned later that year to present its technology at our developers conference FinDEVr Silicon Valley. Founded in 2012 and headquartered in San Francisco, California, Blend enables financial services companies to process an average of more than $5 billion in transactions a day. The company leverages low-code, drag-and-drop design tools to enable developers to build new products quickly. Its platform is integrated with trusted services ranging from eSign to identity verification to help financial institutions deliver seamless customer experiences.
PNC Bank is a part of the PNC Financial Services Group, one of the largest diversified financial services institutions in the U.S. Offering retail banking to more than 12 million consumers and small businesses across the mid-Atlantic, Midwest, Southeast, and Southwest, PNC Bank also provides asset management services to affluent and ultra-affluent individuals and families, as well as corporate and institutional banking. As of June of this year, PNC Bank had $320 billion in assets under administration.
Bank of America launched a new QR code sign-in for its CashPro offering.
Paired with biometrics, the new sign-in option takes advantage of the trend in favor of QR code technology as a verification and log-in solution.
Bank of America’s CashPro has received recognition from Celent, Global Finance magazine, The Asian Banker, and Treasury Management International (TMI).
One of the surprising fintech trends of the past few years has been the deployment of QR codes as an option to facilitate payments in an increasingly wide range of contexts. Today, Bank of America announced that it has launched a new QR code sign-in for its CashPro solution. This will enable Bank of America’s 500,000 CashPro users to scan a QR code with their mobile device and use their biometric information via the CashPro App in order to access the CashPro website. The new option will also alleviate the need for users to manually enter passwords.
“QR sign-in is a technology that’s familiar to our clients from their personal lives, and now they can use it to seamlessly access CashPro,” Global Product Head for CashPro in Global Transaction Services Tom Durkin said. “The technology kicks off a schedule of enhancements we plan to introduce to CashPro over the next 18 months that will further improve the simplicity and security of our award-winning platform.”
Bank of America’s CashPro offers a complete digital platform for managing payments, receipts, investments, FX, and trade. The technology enables users to conduct their banking business from anywhere via the CashPro App, viewing balances, approving payments in less than a minute, depositing checks remotely, and making payments. Businesses can leverage the CashPro API to access a wide range of treasury activities including payments, fraud prevention, liquidity optimization, and more. CashPro also has a forecasting feature. Powered by machine learning and predictive analytics, CashPro Forecasting provides visibility across all customer accounts – including accounts at other institutions – and helps firms better manage future cash flows. The technology, embedded in CashPro and unveiled at the beginning of the year, provides customizable, machine-generated, daily, weekly, or monthly forecasts and learns over time to make predictions smarter and increasingly accurate.
“Many companies today rely on manual, repetitive work to forecast their cash needs, leaving little time to analyze the data for making strategic decisions, which is the actual objective of the forecasting exercise,” Co-head of Global Commercial Banking, Global Transaction Services for Bank of America Ken Ullmann said. “With CashPro Forecasting, companies can automate their forecasting process while improving the accuracy of their predictions, all without making any IT investment.”
Among the world’s leading financial institutions, Bank of America serves 67 million consumer and small business clients with 4,000 retail financial centers. Bank of America also provides a digital banking experience with 55 million verified digital users. Serving customers throughout the U.S. and its territories, as well as 35 countries around the world, Bank of America is a publicly traded company on the New York Stock Exchange under the ticker symbol BAC. The institution has a market capitalization of $250 billion.
This week’s Finovate Alumni Profile is a salute to Hispanic Heritage Month, an opportunity every year to recognize the achievements of Americans whose ancestors came from Central and South America, as well as Spain, the Caribbean, and Mexico.
Here are some of the Latino and Hispanic fintech leaders who have demonstrated their company’s innovations on the Finovate stage since our return to live events in the fall of 2021. We’re also taking this opportunity to highlight recent Finovate alums that are headquartered in Latin America and the Caribbean.
Able (FinovateFall 2022) empowers commercial lenders to quickly collect data from borrowers, streamline the loan process, and book loans faster. The company was founded in 2020 and is headquartered in San Francisco, California. Co-founder Diego Represas led the company’s demo at its Finovate debut earlier this month at FinovateFall.
Incognia (FinovateSpring 2022) is a privacy-first, location identity company that offers frictionless mobile authentication to banks and fintechs to help them lower fraud losses. Founded by CEO Andre Ferraz, Incognia is headquartered in Palo Alto, California. The company’s appearance at FinovateSpring in May of this year was Incognia’s Finovate debut.
Rillavoice (FinovateSpring 2022) offers conversation intelligence software that leverages AI to record, transcribe, and analyze conversations between bank branch associates and customers. The technology helps make bank managers more productive and enables reps to improve conversion rates by 30%. The New York City-based company was founded in 2019. CEO Sebastian Jimenez led the company’s FinovateSpring 2022 demo – Rillavoice’s first time on the Finovate stage.
Nufi (FinovateFall 2021) calls itself “the Legos of fintech.” The firm empowers companies to build financial products quickly while remaining compliant with relevant regulations. Specializing in markets in Latin America, the company’s Finovate debut in the fall of 2021 was led by Chief Operating Officer Ilich Nuñez. Nufi is headquartered in Monterrey, Nuevo Leon, Mexico, and was founded in 2020.
With its Tap on Phone technology, Symbiotic (FinovateFall 2021) allows anyone with a cellphone to accept contactless card payments. Founded in 2020 and headquartered in San Pedro, San Jose, Costa Rica, Symbiotic is the first company to secure the PCI-CPoC certification of the Tap on Pone technology on the American continent. CEO and founder Javier Chacón led Symbiotic’s FinovateFall 2021 demo of the technology.
Snap Compliance (FinovateFall 2021) is a regtech company that provides holistic compliance and risk management solutions. A one-stop shop for compliance management, Snap Compliance offers a pay per consumption subscription model that adapts to the customer’s risk models with multiple integration options – including no integration at all. The Costa Rica-based company was founded in 2019, and FinovateFall 2021 was its first live demo on the Finovate stage. Snap Compliance founder and CEO Alex Siles, along with Head of Expansion & Product Development Katherine Morales, led the company’s presentation.
Masterzon (FinovateFall 2021) offers a platform that transforms commercial documents into negotiable securities. The technology operates in real time efficiently and transparently, 24 hours a day, seven days a week. Co-founded by Elio Rojas in 2016, Masterzon is based in San José, Costa Rica. FinovateFall 2021 marked the company’s Finovate debut.
Fintech software developer IMPESA (FinovateFall 2021) includes some of the largest banks in Central America and the Caribbean among its B2B corporate customers. In its Finovate debut, IMPESA demonstrated its P2P payments app that offers customers card controls and gives banks new revenue opportunities. Mario Hernández, CEO and co-founder, co-led the company’s FinovateFall 2021 on stage demo. IMPESA is headquartered in San José, Costa Rica, and was founded in 2013.
Infocorp (FinovateFall 2021) was founded in 1994 and is headquartered in Montevideo, Uruguay. The company’s smart omnichannel platform and best of breed digital channels give banks fast and flexible solutions to enhance the customer experience. At the company’s FinovateFall demo in 2021, CEO Ana Inés Echavarren and Product Manager Gonzalo Laguna demonstrated Infocorp’s App of the Future, a user-centric, mobile native banking app.
The collaboration will enable merchants to rely on a chargeback alert system that notifies them in the event of an impending chargeback. Notifications are made via the ChargebackZero dashboard, which combines a variety of alert types from card issuers with ChargebackZero’s dispute management tools. The alerts allow merchants to identify and revolve customer disputes with the customer’s issuing bank in near-real time. By preventing chargebacks, including chargebacks that occur post-authorization, the partnership will make it easier for merchants to accept more orders without increasing their exposure to potentially fraudulent activity.
Ethoca offers a suite of solutions to help merchants and issuers eliminate chargebacks, reduce card not present (CNP) fraud, recover lost revenue, and improve the customer experience with a better dispute resolution process. Ethoca’s Consumer Clarity solution connects issuers to merchant order and account history details in real time. This gives issuer call center agents with the data they need to manage real-time conversations with cardholders when disputes arise. Ethoca also offers its Ethoca Alerts technology, which provides issuers and card-not-present merchants with access to a global collaboration network that enables them to share fraud and customer dispute data in real time, rather than in weeks as is normally the case with chargebacks.
Headquartered in Toronto, Ontario, Canada, Ethoca made its Finovate debut at FinovateFall in 2015. In the years since then, the company has inked partnerships with fellow Finovate alum TSYS, as well as Pegasystems, BlueSnap, and Cartes Bancaires. Ethoca agreed to be acquired by Mastercard in the spring of 2019 for an undisclosed sum. Calling Mastercard “a natural home,” Ethoca CEO Andre Edelbrock said the acquisition would “bring our services to more places and more people, ultimately contributing to the beset possible online payment experience.”
Ethoca serves more than 5,400 merchants in 40+ countries and more than 4,000 card issuers in more than 20+ countries. Eight of the top ten North American ecommerce brands, 14 of the top 20 North American card issuers, and six of the top ten U.K. card issuers use Ethoca’s technology to eliminate chargebacks, prevent fraud, and recover lost revenue.
This week, Finovate Global takes a look at fintech developments in Egypt, specifically the story of Cartona.
The company, just over two years old, is a B2B e-commerce marketplace that helps connect retailers with a curated network of suppliers and wholesalers. Cartona secured $12 million in Series A funding this summer, taking its total capital raised to $16.5 million according to Crunchbase.
Our conversation with co-founder and CEO Mahmoud Talaat includes discussion of the company’s role in the Egyptian financial services landscape, the current state of fintech in the country, and his plans for Cartona in the months to come.
Tell us about the founding of Cartona.
Mahmoud Talaat: Founded in August 2020 by Mahmoud Abdel-Fattah, Rafik Zaher and myself, Cartona is a B2B e-commerce marketplace. Cartona offers an asset-light marketplace that enables retailers to order their store needs digitally from a curated network of sellers.
Cartona began with a focus on solving the supply-chain and operational challenges for the fast-moving consumer goods industry (FMCG) by digitizing the traditional, predominantly offline, trade market.
Prior to Cartona, I was a former top executive at leading dairy company Lamar and experienced first-hand the need to make Egypt’s largely offline trade market more efficient. Cartona can greatly improve productivity and reduce waste in time and resources through the impact of its wide-ranging simplified processes.
What in your background gave you the confidence to launch Cartona?
Talaat: Cartona is my third entrepreneurial endeavor. My first job was at Lamar in 2012, back when it was still a startup and the products had not yet been launched. As CCO, I ensured that the new products were fully distributed in the market; handled the operations for many warehouses and created an indirect distribution network.
What role does the company play in Egypt’s financial services industry?
Talaat: Cartona embraces the vision of a cashless society, investing in embedded finance and payments. We offer pay after four days or pay in four equal installments every 7-10 days. We have made sure our product is easy to use and seamlessly integrated into the ‘check-out’ section for ordering, with collection being all digital or through our supplier network. Providing retailers with this technology-integrated financial solution not only boosts financial inclusion but also enables them to grow their business and provide customers with essential products at affordable prices. To supplement our core ordering business, embedded finance is what we believe is a key challenge and we see a clear need for it by retailers in the industry.
Your mission is to digitize Egypt’s traditional trade market. What does this market consist of? How does it operate now? Cash? Cards?
Talaat: Egypt’s trade market is mostly offline, regardless of whether retailers pay distributors through cash or cards. Our aim is to change this by propelling the largely offline trade market into the mainstream digital sphere, thereby streamlining operations for thousands of retailers.
What are the biggest challenges when it comes to digitizing Egypt’s traditional trade market?
Talaat: The execution of any business strategy – especially when it involves modernizing a traditional structure – inevitably comes with day-to-day hurdles as new infrastructure is put in place. But these hurdles are very surmountable and are as much an opportunity as a challenge.
One of the biggest challenges is our own impatience! But we are reassured to see the culture changing and recognizing how digitalization and supply chain innovation can have a tremendous impact in increasing efficiency. This is proven by our rapid scaling in a short period of time. We now work with 200 FMCG companies and have 60,000 users.
Your company recently secured $12 million in Series A funding. What does this accomplishment mean and what will the investment empower?
Talaat: The $12 million we recently raised in Series A funding will enable us to continue to build a strong, digitally connected network of retailers which is currently in the tens of thousands. The proceeds will further aid our nationwide expansion beyond the nine governorates in Egypt where we currently operate and help us grow our team and explore new verticals – expanding beyond our current FMCG-heavy product base.
Cartona prides itself in being “asset-light” and “capital-efficient.” What does this mean and why is it important?
Talaat: As an asset-light business built on enhancing agility, we do not own a single asset or vehicle we distribute. We are also capital efficient in the sense we balance spending on growth with having a clear path to profitability. We optimize capital to achieve this, and the consequent demonstrable, solid unit economics sets us apart. We are thus focusing on the basics – cost price + profit margin = selling point.
What is something about fintech in Egypt that outsiders may be surprised to learn?
Talaat: The fintech sector in Egypt specifically, is highly promising and has witnessed unprecedented growth in the last few years, being one of the MENA’s fastest growing sectors. The exciting aspect is that we’re still scratching the surface with fintech in the region. It still has great potential and can revolutionize some well-established industries that are still untouched.
What can we expect from Cartona in the months to come?
Talaat: The coming period will be a time to focus on internal and external growth. As already mentioned, we are focused on bringing our revolutionary role of digitizing the trade market to millions more people.
To date, we have grown our team to over 500 people, we are also prioritizing hiring more talent to help us reach our ultimate vision – empowering all stakeholders of Egypt’s traditional trade market.
Investing and banking services fintech Stash unveiled its new infrastructure platform, Stash Core, this week.
Stash’s new banking account experience is the first new solution built on Stash Core. Credit, savings, and lending solutions are expected to be launched in the future.
Stash Core features integrations from a wide number of partners including fellow Finovate alums Mastercard, Marqeta, Mambu, and Alloy.
With its latest innovation, investing and banking company Stash is bringing to market a new proprietary infrastructure platform, Stash Core. The offering supports Stash’s new banking account experience now, and will enable new capabilities in credit, savings, and lending in the future.
“Stash Core gives us flexibility and ownership of every customer touchpoint,” Stash co-founder and CEO Brandon Krieg said. “It’s the future of inclusive finance and transformative to our business.”
Stash’s new banking account experience is built on the Stash Core and provides access to an upgraded Stock-Back Debit Mastercard, enhanced customer support, and benefits such as increased rewards. Stash’s Stock-Back Debit Mastercard gives cardholders the ability to invest in stocks every time they spend on gas, groceries, travel, dining, and more. The company notes that it has provided more than 59 million stock rewards to date and, going forward, will allow cardholders to earn up to 4x more with their new upgraded cards.
“With Stash Core and the Stock-Back Debit Mastercard, we are able to deliver the very best in financial tooling, customer service, and AI-powered, personalized wealth-building for those who want to earn stock and invest as they spend,” Krieg said.
Teased at FinovateFall in New York earlier this month, Stash’s new solution benefits from integrations with Mastercard, Stride Bank, Marqeta, Mambu, Alloy, and others. In an extended blog post, the Stash team described the decision-making that went into the development of Stash Core. The discussion highlighted the importance of building an infrastructure that would enable Stash to “more quickly innovate and introduce new products and services faster” to provide the best possible customer experience.
With more than two million customers and nearly $3 billion in assets under management, Stash helps individuals embark upon their investing journey with as little as $3 per month. Offering a suite of financial products ranging from investing and banking to education and advice, Stash reports that its members are 18% more financially literate than the average American. The company experienced $125 million in annualized revenue in the past year, and announced that weekly contributions have climbed by 30% over the past two years.
Founded in 2015, Stash made its Finovate debut at FinovateFall 2017. In the years since then, the company has secured more than $347 million in funding, forged partnerships with companies from Apex Clearingto the San Francisco 49ers National Football League team, and acquired financial literacy app, PayGrade.
Provenir announced a new partnership with Inovatec Systems.
The partnership will enable auto lenders on Inovatec’s LOS platform to access Provenir’s risk decisioning solutions
Headquartered in New Jersey, Provenir has forged partnerships with TransUnion, Kueski, and Provu in recent months.
Real-time risk decisioning software company Provenirannounced a new partner today. The Parsippany, New Jersey-based technology company has inked a deal with Canadian lending software firm Inovatec Systems that will give Inovatec’s roster of automobile lenders new tools to improve the financing process.
“Inovatec’s configurable loan origination and loan management solutions efficiently support third party solutions that improve the speed, reliability, and efficiency of the entire lending process,” Inovatec Head of Business Development Bob Metodiev said. Courtesy of the new relationship, auto financing companies working with Inovatec will be able to leverage open APIs to access Provenir’s AI-powered decisioning solutions – which are embedded into Inovatec’s LOS platform. Combined with Provenir’s technology, the enhanced solution will help lenders make smarter automated decisions while providing an optimal experience for the customer.
“Through the unique combination of universal access to data, simplified AI and world-class decisioning technology, Provenir provides a cohesive risk ecosystem that enables organizations to make smarter decisions instantly across the entire customer lifecycle,” Provenir EVP for North America Kathy Stares said.
Provenir offers a data, AI, and decisioning platform that leverages the cloud and no-code technology to enable businesses to build advanced decisioning workflows, integrate any data source, and deploy AI and machine learning models. The technology is applicable to a wide variety of contexts – from BNPL, SME lending, and auto financing, to retail POS lending, digital merchant onboarding, and bank loan origination.
Founded in 2004, Provenir was a Gold sponsor of FinovateEurope earlier this year, where the company’s Carol Hamilton, SVP of Global Solutions, spoke as part of a panel on “Achieving Digital Acceleration – What Do Incumbents Need to Do?” In the months since then, the company has announced partnerships with TransUnion, Mexico-based lender Kueski, and its first Brazilian customer, payments and personal credit fintech Provu. Provenir also announced today that it is expanding its presence in Spain. Join Provenir’s Corinne Llelti next week for a special digital presentation exclusive to Finovate – “Driving World Class SME Lending Experiences.”
FinovateFall 2022 ended last week. If you were there, then thanks for helping make the conference our largest, and most well-attended yet.
And if you were not there, then we’ve got good news and better news for you. The good news is that we’re sharing some of the mainstage highlights from FinovateFall 2022 below. The better news is that we’re going to do it all over again next year — so stay tuned!
You’re Gonna Need a Bigger Boat
Whether the enabling force is a technology or a partnership, one big takeaway from the conversations on Day One of FinovateFall 2022 was this: it is critical for financial institutions to take advantage of the resources – technological and organizational – outside of their immediate purview in order to compete, grow, and thrive.
In the morning, with presentations from Apiture’s Chris Cox and InterSystems’ Joe Lichtenberg, the emphasis was on enabling technologies that empower financial institutions to turn data into business insights. Jody Bhagat of Personetics showed how even mid-sized banks can leverage the combination of human talent and digital technology to provide superior customer service and solutions like advanced money management.
In the afternoon, our mainstage speakers turned their attention to the transformative power of good partnerships. As a theme that would extend into Day Two, forging productive partnerships between fintechs and financial institutions is a challenge that smart companies are more than willing to meet. Our Power Panel, featuring financial services professionals from Seattle Bank, Partnership Fund for New York City, FTV Capital, TD Bank Group, and Experian, showed why and how banks and fintechs can move from competition to collaboration and co-creation.
FinovateFall Best of Show winner Debbie during its live demo on stage in New York.
Getting It Done — The Right Way
If Day One of FinovateFall articulated the opportunity that exists for banks and fintechs, Day Two was all about helping them seize it. Experian’s Greg Wright led off in the morning with a discussion on how companies can maximize their successful innovation initiatives. Cornerstone Advisors’ Sam Kilmer followed-up with words of wisdom to help fintech companies seal more and better deals faster with financial institutions eager to supercharge their offerings with new fintech solutions.
In the afternoon, the discussion shifted to the new rules of engagement when it comes to customers and “future-proofing” innovation. Led by Beyond the Arc’s Steven Ramirez, our Power Panel on Customer Experience examined the new landscape in which banks thought of more as apps than as brick and mortar businesses. With experts from Oak HC/FT, Dave, Fidelity Investments, and Quavo, the panel showed how personalization, gamification, and visualization are key elements in the contemporary customer engagement strategy.
And speaking of “the right way”, VantageScore’s Rikard Bandebo shared insights into new tools to help financial institutions engage with “newly lendable’ customers and promote financial inclusion. Pointing out the differing impact of credit scoring models on different communities and demographics, Bandebo explained how new analytic approaches can empower both lenders and borrowers.
What We Learned from Best of Show
Our Best of Show award is more than a great opportunity for our attendees to reward those fintech innovators whose technologies they believe are most likely to make a big difference. The awards also serve as an excellent heat check on the latest developments from some of the world’s most innovative fintech companies and entrepreneurs.
Two of the companies to take home Best of Show trophies from FinovateFall 2022 are innovators that have proven their mettle before. Horizn, with its platform that maximizes the impact of digital transformation, is a five-time Finovate Best of Show winner. LemonadeLXP earned a Finovate Best of Show award back in 2019 for its Launchfire employee and customer engagement solution. Notice a theme? For one, both companies are great representatives of the fintech innovation taking place in Canada – Horizn is headquartered in Toronto, LemonadeLXP is based in Ottawa. For two, both Horizn and LemonadeLXP are examples of companies innovating in the critical second step in digital transformation: the challenge of turning “front line staff into digital experts” and driving “mass adoption of new platforms and digital capabilities” for customers and employees alike.
Hats off to our other Best of Show winners, as well – including Themis, Quilo, and Debbie, each of which won Best of Show last week in their Finovate debuts. And the second time was certainly the charm for New York-based data insights and analysis firm Stratyfy, which won Best of Show last week in its second trip to the Finovate stage. The company’s UnBias technology underscores the role that technology companies will play in helping financial institutions and fintechs to find and undo the bias that undermines fair and equitable policies and practices.
Ain’t Nothing Like the Real Thing
If there is a third takeaway from FinovateFall worth sharing here, it is this one: there ain’t nothing like a live, in-person fintech conference. And while there may be some events that do not feel much different to the average attendee regardless of whether the presentations are in-person or digital, the same cannot be said of Finovate, the so-called “DisneyLand of Fintech.” From the edge-of-your-seat excitement (and, sometimes, anxiety) during a live on-stage fintech demo to the must-see-it-to-believe-it antics of our Finovate Fintech Fight Club combatants to a fully-packed networking hall, Finovate is a people thing. And when events like ours help put the right people together, who knows what kind of magic our attendees, speakers, demoing companies, and sponsors will create?
Novatti Group has partnered with transaction monitoring company ThetaRay.
Novatti will deploy ThetaRay’s SONAR technology to defend its global payments business from money laundering and other financial crime.
A Finovate alum since 2015, ThetaRay has secured partnerships with companies ranging from Travelex Bank to fellow Finovate alum Payoneer.
Business payments enabler Novatti Group has partnered with AI-powered transaction monitoring specialist ThetaRay to defend its global payments operations against money laundering and other financial crimes. Novatti Group will deploy ThetaRay’s SaaS-based SONAR technology, a solution that leverages AI to detect the earliest indications of money laundering activity. SONAR will monitor hundreds of thousands of transactions a year for Novatti Group, enabling the company to ensure that its processed transactions are fraud-free without sacrificing quality of service.
Group GM of Risk, Legal, and Compliance at Novatti Group Evangelia Pefkou said the company selected ThetaRay for both its efficient technology as well as its ability to scale. “It is a true AI-based solution that effectively prevents financial crime – including unknown and hidden money laundering – with high detection rates and low false positives,” Pefkou said.
Headquartered in Israel, ThetaRay made its Finovate debut at FinovateFall in 2015. In the years since then, the company has brought its transaction monitoring technology to partners including Travelex Bank, PMI Americas, Qolo, as well as fellow Finovate alum Payoneer. ThetaRay’s combination of AI and machine learning has resulted in a transaction monitoring solution that delivers a 50% boost in efficiency, 99% reduction in false positives, and 100% coverage for all known money laundering risks. The company’s technology has enabled businesses to confidently partner with entities in countries and segments that are considered high-risk.
“SONAR detects even the newest and most sophisticated criminal schemes,” ThetaRay CEO Mark Gazit said. “Novatti will be able to simultaneously establish new relationships to grow global business, increase revenues, and improve customer service.”
Founded in 2013, ThetaRay has raised more than $112 million in funding from investors such as Jerusalem Venture Partners, Benhamou Global Ventures, and ABN AMRO Ventures.
With hundreds of ballots officially cast and carefully counted – here are the winners of Best of Show for FinovateFall 2022!
Debbie for its technology that leverages behavioral psychology and rewards to help users pay off 3x more debt and help lenders recession-proof members. Demo.
Horizn for its platform that helps financial institutions maximize the impact of digital and accelerate returns on digital investments with customers and employees. Demo.
LemonadeLXP for its digital growth platform that helps financial institutions and fintechs turn staff into digital experts and support digital customers. Demo.
Quilo for its technology that empowers lenders to digitally syndicate an individual personal loan at the time of underwriting, enabling them to provide more loans to more people. Demo.
Stratyfy for its technology that increases access to financial services by bringing true transparency and less risk to critical financial decisions that impact millions. Demo.
Themis for its collaboration platform designed for risk and compliance requirements to help accelerate partnerships between banks and fintechs. Demo.
We are grateful to all of our demoing companies for being a part of our biggest FinovateFall to date. Thanks as well to our sponsors, our partners, and – last but not least – our awesome attendees who continue to make our conferences among the most anticipated events on the fintech calendar each and every year. We look forward to seeing you again next fall!
Notes on methodology:
1. Only audience members NOT associated with demoing companies were eligible to vote. Finovate employees did not vote.
2. Attendees were encouraged to note their favorites during each day. At the end of the last demo, they chose their six favorites.
3. The exact written instructions given to attendees: “Please rate (the companies) on the basis of demo quality and potential impact of the innovation demoed.”
4. The six companies appearing on the highest percentage of submitted ballots were named “Best of Show.”
5. Go here for a list of previous Best of Show winners through 2014. Best of Show winners from our 2015 through 2022 conferences are below:
