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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Seven Finovate alums raised more than $132 million in the fourth quarter of 2024, and more than $553 million for the full year. The figures trail those from 2023, in which 11 alums raised more than $307 million in Q4 and approximately $1.2 billion for the year. This data also reflects the ongoing funding challenges faced by fintech companies at a time of high interest rates and industry consolidation.
Looking specifically at the fourth quarter of this year, we see a wide range in funding levels, from Wallit’s modest $1.4 million raise to Zopa’s year-ending $87 million score. It is also worth noting that the amount of one investment, the October funding for CardFlight, the level was not disclosed.
Previous Quarterly Comparisons
Q4 2023: More than $1.2 billion raised by 11 alums
Q4 2022: More than $380 million raised by 15 alums
Q4 2021: More than $1.2 billion raised by seven alums
Q4 2020: More than $472 million raised by 17 alums
Q4 2019: More than $876 million raised by 21 alums
This year’s fourth quarter funding tally is the lowest Q4 in many years, representing less than half of what was raised in 2022. Q4 2024 did see a pickup in funding relative to the previous quarter, both in terms of investment total and the number of alums funded, and is slightly higher than the amount Finovate alums raised in the first quarter of the year (nine alums raising more than $113 million).
Top Quarterly Equity Investments
The top three quarterly equity investments for the quarter were Zopa’s $87 million funding in December, interface.ai’s $20 million fundraising in October, and MODIFI’s $15 million fundraising in November. These three investments combined represent more than 92% of the total funding raised by all alums in Q4 2024.
Here is our detailed alum funding report for Q4 2024.
October: More than $22 million raised by three alums
If you are a Finovate alum that raised money in the fourth quarter of 2024, and do not see your company listed, please drop us a note at research@finovate.com. We would love to share the good news! Funding received prior to becoming an alum not included.
It’s a holiday-shortened week here at the Fintech Rundown. But rest assured that we’ll have you covered on the the top fintech news headlines as 2024 moves toward a close.
We’re starting off with a series of stories in the embedded finance front, including an acquisition, a new launch, and a major fundraising.
Digital banking
Data-driven statement provider HC3forges strategic partnership with digital banking solutions company Apiture.
As 2025 approaches, where will new opportunities arise for financial institutions, financial services providers, and fintechs looking to expand into new markets?
In this week’s Finovate Global interview, I talk with Lewis Ide, Vice President for 10x Banking, about the opportunities in high-growth markets in APAC and Africa.
Part of the company’s senior leadership team, Ide is responsible for the strategy, growth, and execution of the business objectives at 10x Banking. He has a 13-year career in financial services technology with leadership roles in payments, financial infrastructure, and AML platforms.
10x Banking first introduced itself to Finovate audiences with its debut at FinovateEurope 2023 in London. The company won Best of Show for a demonstration of its 10x SuperCore Cards which enable banks to build a card proposition in minutes with 10x’s Bank Manager interface. Founded in 2016, 10x Banking is headquartered in London, U.K.
There is a lot of interest in high growth markets around the world, especially in the APAC region and in Africa. What is driving growth opportunities in these markets – starting with APAC?
Lewis Ide: I think it comes down to demographics first of all: APAC in particular has a young, growing, digitally-native population. Economies in this region are growing rapidly and with that come opportunities for growth in the financial services industry. And typically the countries across APAC are very innovation-friendly.
Regulation also really supports innovation. One example is in Thailand, where the regulator is releasing new digital banking licenses to support the growth of the industry from a digital-first point of view.
This all feeds into banks being able to benefit from core transformation, moving away from batch transactions to real-time transactions. They are also able to scale in user numbers and transaction volumes as the population grows and becomes even more digital-first. And the thing that makes that growth even more sustainable is the hyper-personalization that modern cores allow for, so banks in APAC can create unique offerings that consumers need.
What do small businesses in APAC need that they have not been getting from traditional financial services?
Ide: I think the first thing to say here is that traditionally, SME offerings have been bucketed into either the retail or the corporate bank offerings. Neither of these is really built around what small businesses need, so there is a demand in the market for tailored solutions.
The next thing is cost: these services are typically costly for SMEs because they aren’t tailored. I think what we’re now starting to see is a shift away from that bucketing towards banks being able to launch services that are specific and personalized to the needs of small businesses. That includes broadening access to credit, making it cheaper, and designing the products that the business needs at the time that they need them.
And again it’s innovation that is enabling this. The availability of agile, cloud-native infrastructures allows for a much more effective cost-to-income ratio control. And that in turn means that they can pass the cost benefits on to their customers in the form of new products at compelling price points. So the shift here is from high-cost services to tailored, personalized ones. And that’s been made achievable by agile, cloud-native core platforms.
What has prevented or limited the ability of financial institutions to respond to these pain points?
Ide: I would say the biggest thing is the legacy technology in place. In the last decade or so, neo cores emerged as a way to address the problems of legacy infrastructures, but they now come with almost a “neo legacy” of their own with limited ability to scale or personalize. Those that are able to be personalized can be very challenging to maintain or upgrade once the code has been written.
But in the last five to six years we’ve started to see a huge positive shift within the neobanks that has highlighted where the legacy and neo core platforms are now coming under pressure with those changing customer expectations.
That pressure comes from the way those legacy architectures were constructed. They were monolithic in nature and didn’t necessarily allow for hyper-personalization. They were also batch-based systems, very expensive to run on the mainframe. All of this requires specific and costly resources and makes it difficult for banks to respond to all of these pain points.
What changes have taken place or are taking place that are giving innovative companies the opportunity to step in with new solutions?
Ide: The adoption of cloud-native platforms that are microservice and API-based has been transformational in terms of the industry opportunity. This is why we launched the world’s first meta core at 10x Banking — to give customers access to a cloud-native core banking platform that overcomes the compromises of both legacy and neo cores.
This then allows customers to launch products at speed, gives them the hyper-personalization that they need, as well as doing so at a very low cost and with the ability to scale to hundreds of thousands of transactions per second, overcoming a number of the challenges that the industry has faced with great success.
What specific roles do you see for AI in helping institutions improve their operations and expand their services?
Ide: I think from our perspective, before we get to AI, it’s about data. The data structures that we use in this industry are the foundations of AI capability. You need to have access to high-quality, unsiloed data so there is a single source of truth across the business from which AI models can be launched.
From a core banking perspective, there are many things AI can enable, but three that spring to mind. First, at the customer layer, AI can personalize recommendations, power chatbots and make credit lending more efficient. Next is integration and transformation, enabling banks to connect all their systems together in a more efficient, composable architecture. Banks have a real opportunity to leverage AI to build better migration capability here. Finally – and this is something we are looking to support at 10x – is the ability to use AI to help code and create hyper-personalized products and services.
What the meta core allows our customers to do, for example, is get their data ready for AI, so they can unlock its full potential. So I always go back to that: making sure the data is clean and the structures are unsiloed so it’s all ready to go when you do start using AI.
Looking at Africa, particularly sub-Saharan Africa, what is driving growth there?
Ide: Africa is similar in some ways to APAC, so what I mentioned before in terms of the young demographic holds true here too. It’s a massive region, of course, so it’s hard to generalize. But there are some notable nuances in the way innovation is deployed in Africa. The mobile telecommunications networks like Safaricom and M-Pesa have been at the center of that, offering money transfer services alongside the telecommunications services.
Much of the growth here is driven by the desire to bring more people into the banked economy. Financial inclusion is big on the agenda. If you can reduce the percentage of unbanked people from, for example, 20% to 10%, that’s a big growth in customer numbers for banking and financial services. That’s a lot more people to provide services to, which again links back to the importance of scalability and personalization.
Some have suggested that Africa is the ideal example of a region unencumbered by complex legacy financial systems. Can you elaborate on how this impacts the environment for innovation and new ideas?
Ide: I would say that’s not the full story. The mobile telephone networks and operators have driven a lot of innovation as I touched on before, and there is a broad appetite for innovation across Africa in general. But there are challenges around the continued use of mainframe infrastructure, which is slowing banks down. As that has become more obvious, banks have been looking to core modernization, as well as partnerships with the mobile networks. This will enable them to extend their capability and services, which is a benefit for both the banks and the mobile networks.
Are there any trends in banking and financial services in the APAC or Africa that you think are underappreciated or even unrecognized? Are there opportunities there that 10x Banking is pursuing?
Ide: The major trend that goes underappreciated at the moment is in corporate banking. We have been working and investing heavily in this area, so I can speak from first-hand experience, with active projects in Vietnam, Thailand, Australia, South Africa, and Kenya to name a few. At the moment, there is a massive shift underway in corporate banking, moving from batch to real-time transactions, modernizing their cores. This will enable them to radically increase transaction processing volumes to better serve the demands of new and existing customers in the market.
Here is our look at fintech innovation around the world.
Middle East and Northern Africa
Israeli fintech startup and chargeback management specialist Justt raised $30 million in Series C funding.
Merchants in Paymob’s network in Egypt can now accept Apple Pay.
Middle East-based payment solutions provider Magnati partnered with Arabian Automobiles Company (AAC).
Central and Southern Asia
India’s Karnataka Bank partnered with hybrid multicloud computing company Nutanix.
TBC Uzbekistan launchedOsmon Card, its first credit card product.
India-based high-yield savings account Curie Money raised $1.2 million in seed funding.
Latin America and the Caribbean
El Salvador announced its intention to continue accumulating Bitcoin, but will discontinue its Bitcoin wallet Chivo as part of a financing deal with the IMF.
Uruguay-based cross-border payments company Bamboo teamed up with monetization platform Coda to enhance the gaming payment experience in Colombia.
Latin American payment platform AstroPay launched its multi-currency wallet.
Nigeria’s Bamboo became the first Nigerian fintech to acquire a U.S. broker-dealer license.
Central and Eastern Europe
Bulgaria joined the European Central Bank’s TARGET Instant Payment Settlement (TIPS) service.
Episode Six partnered with Secupay to provide asylum seekers in Germany with payment cards to access financial assistance from the government.
Bank of Georgia turned to Cloudera to better leverage data analytics to enhance the customer experience.
Interested in demoing at FinovateEurope 2025 in London? Applications are still being accepted from innovative companies with new solutions that are ready to show. Visit our FinovateEurope hub today to learn more.
DeepTarget, a digital marketing services provider for financial institutions, has launched its AI-powered email service AImail.
The new offering empowers community banks and credit unions with enterprise-level marketing capabilities to enable them to deliver personalized communications at scale.
DeepTarget made its Finovate debut at our all-digital conference FinovateWest 2020. The company is headquartered in Huntsville, Alabama.
DeepTargetunveiled its AI-powered email service, AImail, this week. The technology is a full-service solution that provides credit unions and community banks with enterprise-level marketing services to deliver personalized communications at scale.
In a statement, the company highlighted the fact that email remains an important channel of communications between financial institutions and their customers. Email remains the most cost-effective channel for most FIs, helping them reach account holders who may not frequent a brick-and-mortar branch or take advantage of digital banking. At the same time, many community banks and credit unions have struggled to maximize email as a communications channel due to resource challenges, regulatory issues, or inadequate data analysis capabilities.
“While new channels emerge constantly, email remains the most universal and trusted way to reach account holders,” DeepTarget CEO Preetha Pulusani said. “Nearly every adult with a bank account has an email address, and not all of them visit branches or use digital banking. They expect to receive important financial communications through this channel.”
To this end, AImail combines AI technology with deep financial services expertise in the form of fractional digital marketing experts. This enables AImail to deliver compliant personalization and regulator-friendly content, as well as targeted optimization to ensure that marketing campaigns reach the best audiences for maximum impact. AImail embeds banner ads in each email campaign that use GenAI images and messages created by DeepTarget’s ADbuzz technology to enhance engagement. The solution streamlines marketing campaigns, boosting email engagement rates by up to 3x, and provides valuable metrics including built-in ROI tracking and reporting.
“What makes AImail revolutionary is its ability to transform these routine touchpoints into meaningful, personalized conversations that drive engagement and growth,” Pulusani said. “What used to take marketing teams weeks to accomplish now happens with our experts using AImail on behalf of financial institutions, with robust results and strong compliance controls.”
Founded in 2009 and headquartered in Huntsville, Alabama, DeepTarget made its Finovate debut at our all-digital conference, FinovateWest2020. At the event, the company demonstrated its 3DStoryTeller solution. 3DStoryTeller blends the intelligence and capabilities of the company’s Digital Experience Platform with a 3D user interface that enables financial institutions to offer a unique experience featuring visual stories that engage and entertain customers.
One of the latest developments in the payments space, Refunds-as-a-Service, promises to bring innovation to an area of customer experience – refunds – in which more than a trillion dollars of value are exchanged every year.
In today’s Streamly interview, Jeremy Balkin, Founder and CEO of TodayPay, talks with me about his path from a Managing Director at J.P. Morgan to the launch of his refunds-as-a-service startup. Balkin explains the inspiration behind the decision, the company’s progress to date, as well as TodayPay’s upcoming direct-to-consumer product launch.
“We’re the world’s first dedicated refund payment network. It’s an alternative payment method for both merchants and consumers to receive refunds. We’re pioneering a category we like to call refunds-as-a-service, serving merchants, marketplaces, insurers, issuers, and consumers to get a better refund experience.”
A finalist in the “Top Emerging Fintech” category of the 2024 Finovate Awards, TodayPay enables merchants to offer their customers instant refunds over a variety of payment choices, including cashback. A pioneer in the field of Refunds-as-a-Service, TodayPay is part of the Visa Fasttrack program.
Before launching TodayPay, Jeremy Balkin was a Managing Director for J.P. Morgan in New York City where he led fintech innovation and corporate development in the payment space.
Capitalise, a business finance platform based in the U.K., has forged a strategic partnership with data and open finance network Plaid.
The collaboration integrates Plaid’s open banking services with Capitalise’s Instant Offers to simplify and streamline small business funding.
Capitalise made its Finovate debut at FinovateEurope 2016. Plaid has been a Finovate alum since 2014.
U.K.-based business finance platform Capitalise has announced a strategic collaboration with fellow Finovate alum Plaid. The partnership is designed to simplify business funding, leveraging Open Banking to offer pre-approvals to 150,000 small businesses. Capitalise will integrate Plaid’s Open Banking services into its Instant Offers solution to enable businesses to secure pre-approvals from multiple lenders. Businesses will be able to accept offers and receive funding in minutes rather than days or weeks.
The partnership enhances Capitalise’s lending origination service by removing friction from the funding process. It will also help boost conversions thanks to faster decision-making that relies on accurate, real-time data. The collaboration comes at a time when a growing number of small and medium-sized enterprises (SMEs) in the U.K. are embracing open banking technology. Plaid reported that adoption of open banking by U.K.-based SMEs has increased by 18% year-over-year.
“Open Banking sits at the core of SME credit decisioning and brings confidence to underwriting risk assessments,” Capitalise Co-Founder Ollie Maitland said. “These advances, in tandem with the huge growth in private credit markets, can bring down the high cost of non-bank lending. This is good news for U.K. small businesses.”
Open banking brings faster application processes, access to real-time financial data to accelerate approvals, and the ability to offer personalized rates, which can lower costs for borrowers. Challenger banks and alternative lenders have become huge players in the market for SME lending, representing more than 60% of new SME lending in the U.K. This has led to more options for small businesses looking for funding, and more competition between those looking to fund them.
“Pre-approvals have been the perfect use-case for Open Banking as a win for business owners browsing and great pre-qualification for lenders looking to lend,” Maitland said. “Plaid was a natural choice with their experience in SME lending plus their global presence.”
Founded in 2013 and headquartered in San Francisco, California, Plaid offers an international data and open finance network that helps make payments simpler and lending more accessible. With more than 100 million global users in more than 18 countries, Plaid’s technology helps institutions take advantage of open banking and open finance connectivity to grow revenues and fight fraud. Plaid has partnered with more than 12,000 companies — including members of the Fortune 500 — to help them provide their customers with greater choice and control over their financial lives.
Capitalise made its Finovate debut at FinovateEurope 2016. At the conference, Maitland and co-founder Paul Surtees demonstrated how the company’s platform uses behavioral data to match and rank lenders and algorithms to compare more than 2,500 data points to find the most appropriate funding solutions for businesses. Today, the firm’s lending marketplace features 100 lenders, including 10 integrated Open Finance lenders on its Instant Offers framework.
Interested in demoing at FinovateEurope 2025 in London? Applications are still being accepted from innovative companies with new solutions that are ready to show. Visit our FinovateEurope hub today to learn more.
Winter officially begins at the end of the week for many of us, and the seasonal, end-of-year holidays are right around the corner.
This week in the Fintech Rundown we start off with news of a major acquisition in the supply chain finance space, and a handful of fundraisings in fields ranging from wealth management to crypto.
LexisNexis Risk Solutions has signed an agreement to acquire document authentication and fraud detection solutions provider IDVerse. Terms were not disclosed.
The acquisition will enhance LexisNexis Risk Solutions’ ability to combat emerging threats such as AI-generated fraud and deepfakes.
As OCR Labs, IDVerse won Best of Show in its Finovate debut at FinovateAsia 2017.
LexisNexis Risk Solutions has agreed to acquire AI-powered automated document authentication and fraud detection solutions provider IDVerse. The company, which introduced itself to Finovate audiences at FinovateAsia 2017 as OCR Labs, will become a part of LexisNexis Risk Solutions Business Services.
Terms of the transaction were not disclosed.
IDVerse leverages regenerative AI to fight fraud and deep fakes. The company’s technology is powered by a deep neural network which verifies the authenticity of more than 16,000 types of identity documents globally. Additionally, with consumer consent, IDVerse applies biometric algorithms for identity verification and liveness detection to identify potential fraud. With IDVerse’s technology, businesses can verify identities in seconds using just the applicant’s face and their smartphone.
“LexisNexis Risk Solutions has been at the forefront of enabling compliance and lowering risk for businesses worldwide for decades,” IDVerse CEO John Myers said. “We’re looking forward to seeing the impact our combined solutions and technology can make in improving outcomes for our clients against a fast-changing risk landscape.”
Thanks to a pre-existing alliance agreement, IDVerse’s solutions are already available via LexisNexis Risk Solutions’ platform. The acquisition will integrate IDVerse’s functionality across solutions and boost customer preparedness to manage emerging fraud threats. LexisNexis Risk Solutions has provided document authentication solutions since 2005, and its acquisition of IDVerse will add to the firm’s ability to combat new challenges such as AI-generated fraud.
“AI-powered solutions are necessary to counter the threat of AI-generated fraud attacks, including deepfakes,” said Rick Trainor, CEO of Business Services for LexisNexis Risk Solutions. “Integrating IDVerse’s advanced and complementary technology will further enhance our ability to provide the risk insights our clients need to defend against bad actors today and into the future — regardless of where our clients are in the world or where they do business.”
Headquartered in Sydney, Australia, and founded in 2017 as OCR Labs, the company won Best of Show in its Finovate debut at FinovateAsia 2017. The firm rebranded as IDVerse in 2023. With applications for account opening, KYC/AML, passwordless login, fraud prevention, and more, IDVerse’s solutions serve businesses in industries ranging from financial services and insurance to crypto and telecommunications. The company’s Zero Bias AI technology puts regenerative AI to work to help mitigate the potential for discrimination based on ethnicity, age, and gender. In addition to enhancing the ability to combat fraud and deepfakes, IDVerse’s Zero Bias AI technology significantly lowers associated risks.
Last month, IDVerse announced that it had signed a new identity infrastructure partnership with London Stock Exchange Group (LSEG). The partnership will help LSEG scale global coverage and fight digital fraud during the customer onboarding process. In October, IDVerse announced it had onboarded iGaming identity verification and compliance solutions provider GlobalCheck and regulatory compliance solutions company BetComply. That month, IDVerse also announced that Hastings Direct Loans had automated its loan decisioning and identity verification processes using IDVerse’s identity tools.
How can banks and other financial institutions defend themselves and their customers and members against increasingly sophisticated, increasingly organized financial crime? What are the most challenging fraud threats and, critically, what tools and tactics are available to help institutions deal with them successfully?
We talked with Gus Tomlinson, Managing Director, Identity Fraud, with identity verification, location intelligence, and fraud prevention solutions provider GBG, about the challenges faced by companies and organizations when it comes to fighting evolving fraud threats.
Helping companies around the world onboard customers safely, fight fraud, and stay compliant, Tomlinson has more than a decade of experience in the identity industry. She has worked in strategic, commercial, data, and product roles and, this year, was named to Management Today’s 35 Women Under 35 roster for 2024.
Tomlinson is also a supporter of Women in Identity, a non-profit that promotes a more diverse workforce in the digital identity industry.
We wanted to talk with you about the spike in Synthetic Identity Fraud (SIF). What is SIF? What industries are being impacted most?
Gus Tomlinson: Synthetic identity fraud is a fraud tactic many businesses struggle to identify. This is because it uses a mix of genuine, stolen personally identifiable information (PII), and manufactured synthetic data to create a fake identity. This fabricated identity is then used to open accounts, make purchases, and commit other fraudulent activities.
The blending of real PII such as name and address with a different date of birth data for example, is common, and amongst more sophisticated scams, fraudsters will go beyond data to include fake identity documents, fake photos and videos, and even other biometric characteristics, like fingerprints. These ‘identities’ allow fraudsters to apply for low-friction accounts where there are no or limited checks to build up their credit history.
Often synthetic identity fraudsters will play the long game as their credit history improves – increasingly getting access to higher value finance and goods before disappearing without a trace, leaving the affected businesses trying to collect from people who never existed in the first place.
The industries particularly vulnerable to synthetic identity fraud are those that handle high value data and offer potential financial gains for fraudsters – financial services, gaming, and government sectors are key examples. Though it’s important to remember that all industries are vulnerable – fraudsters don’t limit their activities to one organization, sector, or even stop at national boundaries. They target where they see an opportunity.
What makes fighting SIF a challenge?
Tomlinson: Fighting synthetic identity fraud is a challenge due to the sheer scale it’s being – and has been – leveraged by fraudsters. The lack of preparation from businesses has led to them letting in huge numbers of sleeping identities that are now ready to attack.
Organizations need to act now as this threat will only continue to increase. On the dark web, thousands of sites are selling cheap bundles of identity data from billions of records stolen in cyberattacks and data breaches every year. All the info needed to impersonate someone is easily available within a few clicks and for a few dollars.
Digital identity is complicated, and synthetic identity fraud takes advantage of that by blending real and fake data to slip through the cracks. Technological advancements, such as Generative AI (GenAI), are also increasing the sophistication of synthetic identities, making it even harder to spot. To catch this kind of fraud, detection methods need to handle that complexity and use all the digital identity data out there to spot the fraud signals. Building up several layers of defense is critical.
How high on the list of priorities is this for companies? Do they understand the threat posed by SIF and other AI-powered fraud tactics?
Tomlinson: Fraud is hitting the bottom line – estimates show businesses are losing around five percent of their revenues to fraud annually. Now GenAI has given fraudsters new capabilities to work faster, scale attacks, and create more believable scams. The threat has risen to a new level.
As a result, digital identity verification and fraud prevention has moved from a tick box exercise to a business imperative and more than ever identity fraud is a boardroom topic.
While this is a step in the right direction, what is still missing is an appreciation for – or acceptance of – the true extent of the problem.
Synthetic identity fraud isn’t new, it’s been happening for years. Many organizations are far more exposed today than they might think.
What we see is that many companies try to ignore that the problem is already intrenched in their operations. They need to accept this part of the problem to truly protect against it.
You’ve spoken about “cross-sector industry collaboration” as key to helping deal with AI-powered fraud. Why is this the best strategy?
Tomlinson: Synthetic identity theft is just one of the fraudulent threats today. Businesses need to build a layered defense to fraud prevention to protect against current and new fraud tactics. For example, a combination of credit bureau data checks, mobile data, document verification, biometric checks and other alternative data, such as cross-sector intelligence, is a key part of a proven multi-layered approach that strengthens the identity verification process by providing a more robust and informed way of validating identity and spotting fraudsters.
Ultimately, it’s about leveraging the strengths of each component. AI can process vast amounts of data and identify patterns quickly. Human fraud experts bring critical thinking and experience to interpret AI findings and make nuanced decisions. Cross-sector collaboration allows for sharing of intelligence and best practices, making it harder for fraudsters to exploit gaps between industries and organizations.
How difficult is it to coordinate all those pieces into a coherent, fraud-fighting operation?
Tomlinson: It shouldn’t be complex for organizations – identity experts like us are doing the hard work in the background to bring everything together – that’s why we exist! Plug-in onboarding systems are available to orchestrate identity verification at an intelligent, adaptable level. These identity verification and fraud prevention technologies deliver greater speed and accuracy, calculating the absence or presence of fraud signals and adjusting the customer journey accordingly so there is minimal friction for genuine customers.
How can effective fraud-fighting co-exist with the kind of seamless, real-time experience that consumers have come to expect?
Tomlinson: Actually, more than ever consumers value and prioritize security over convenience. In fact, our latest Global Fraud Report revealed 68% of U.S. customers place greater importance on the security of the onboarding process over its speed.
In the recent past, with organizations fighting in competitive landscapes to provide the best onboarding customer experience, reducing friction has been seen as critical. However, as fraud, data breaches and security news stories increasingly become dinner-party conversations, consumers are more actively looking for and comforted by visible security measures. Now, it’s critical for organizations to understand that friction doesn’t equal a bad customer experience.
With cross-sector intelligence, organizations can detect bad, good, and great customer prospects and give them a tailored experience corresponding to their risk level, including when and how to use step-up authentication through documents or biometrics in this time of increasing use of GenAI by fraudsters.
What is GBG doing specifically to help businesses combat SIF and other forms of AI-powered fraud?
Tomlinson: Data tells a story and we help you read it. We understand the data that is being presented and verify against it, giving businesses clarity on exactly what they are making decisions on. This is fundamental to preventing synthetic identity fraud.
While GenAI is making fraud tactics smarter, the same is true for fraud detection and prevention. Our solutions leverage AI to quickly sort through and scrutinize huge amounts of digital data, flagging identities that are high, medium, and low trust. We also implement injection attack detection technology for the new era of synthetic identities where fraudsters are matching data with biometric images.
Critically, we layer documents, biometrics, digital, and data checks to give businesses complete defense. Our multi-layered approach strengthens the identity verification process by providing a more robust and informed way of validating identity and spotting fraudsters.
Looking to 2025, what do you expect to see in terms of new trends in the fraud and financial crime landscape?
Tomlinson: In the coming year, expect to see:
A rapid pace of attack – established organized crime groups have made fraud their profession and stable source of income. GenAI combined with the industrialization of fraud means more fraud at a faster pace.
Brand damage attacks and an ulterior motive of fraudsters – the damage to a business’ reputation can cause more financial loss than the actual fraud itself. This is a powerful tool for a malicious actor to have in their toolbox.
Increased cross-border fraud – fraudsters don’t limit their activities to one organization, sector, or even stop at national boundaries. They target where they see an opportunity, which is increasingly cross border attacks.
Fraudsters recycle old methods –as companies pivot to defend against new fraud vectors with the latest technology, we’ll see fraudsters go back and use old fraud tactics to see if they can find a re-opened gap in the system to slip through. Businesses can’t afford to get complacent.
Moneyhub has teamed up with intelligent money management app Marygold & Co. UK.
The partnership will integrate Moneyhub’s Account Information and Payment Initiation Services (AIS and PIS) functionality into Marygold’s new wealth app, slated to be released next year.
Moneyhub made its Finovate debut at FinovateEurope 2015 in London.
Data, intelligence, and payments company Moneyhubannounced a partnership with intelligent money management app provider Marygold & Co. UK. Through the partnership, Moneyhub will provide Account Information and Payment Initiation Services (AIS and PIS) for Marygold’s new wealth app, scheduled to go live in 2025.
“Given our aligned aims of improving the country’s financial wellbeing through innovation, we’re very pleased to be partnering with Marygold & Co. UK as they prepare for launch,” Moneyhub Managing Director of API Kim Jenkins said. “Armed with a myriad of Open Banking and Open Finance-enabled tools, the app is set to deliver fantastic outcomes for consumers and businesses alike.”
Marygold’s app will make it easier for customers to save without having to switch bank accounts. The solution features customizable reminders, automated savings nudges, special savings pools, as well as hidden “piggy bank” options and secure, me-to-me transfer functionality. Users’ savings earn competitive interest rates and the app also has a number of features that help provide financial oversight for elderly and vulnerable users. Small businesses using the app also benefit from competitive interest rates on their working capital and cash.
“Our partnership with Moneyhub underscores our commitment to delivering a truly transformative financial management experience,” Marygold & Co. UK CEO Matthew Parden said. “By leveraging Moneyhub’s advanced Account Information and Payment initiation Services, we’re able to offer our users unparalleled insights and control over their finances, making it easier than ever to save, manage, and grow their wealth securely and efficiently.”
Marygold & Co. UK is backed by the Marygold Companies, a publicly-held firm that trades on the NYSE under the ticker MGLD. The company was launched in 2021 to make acquisitions in the U.K. for its U.S.-based parent. Marygold & Co. UK provides wealth management and savings services to customers in the U.K., combining app-based functionality with access to qualified financial advisors. Last month, Marygold & Co. UK announced a partnership with U.K. fintech bank Griffin that allowed the firm to embed savings accounts in its app. Earlier this year, the company acquired U.K.-based investment advisory firm Step-By-Step Financial Planners Limited (SBS). The acquisition was Marygold & Co. UK’s second, having acquired U.K.-based financial advisory firm Tiger Financial & Asset Management Limited in 2022.
Moneyhub made its Finovate debut at FinovateEurope 2015 in London and returned to the Finovate stage two years later for FinovateEurope 2017. The data, intelligence, and payments company develops software for Open Banking, Open Finance, and Open Data applications. Moneyhub’s platform enables businesses in industries from finance to retail to transform their data into personalized digital experiences and initiate payments.
Moneyhub’s partnership announcement with Marygold & Co. UK comes just days after the company announced that it was working with WPS Advisory to help the independent financial advice firm launch its financial confidence app LifeStage. Designed to supplement the firm’s personalized financial guidance and advice service for employees, LifeStage enables users to better understand their incomes, expenses, savings, debts, and investments and to share selected information with WPS Advisory.
“Our aim is to make financial advice, typically provided through the workplace, as accessible and cost-effective as possible,” WPS Advisory Head of Strategy Natalie Oliver said. “Technology integrations play a vital role in achieving this goal.”
Interested in demoing at FinovateEurope 2025 in London? Applications are still being accepted from innovative companies with new solutions that are ready to show. Visit our FinovateEurope hub today to learn more.
Finovate Global is back! This week’s edition leads off with stories about financial institutions around the world that are seeking to better serve their customers by offering a broader range of Shariah-compliant solutions.
Gatehouse Bank partners with ColCap UK for Shariah-compliant home financing
A new partnership between Gatehouse Bank and ColCap UK will help bring Shariah-compliant home finance to more U.K. prospective homebuyers. The partnership includes a forward flow arrangement to originate more than £550 million in Shariah-compliant home financing for ColCap UK over an initial two-year period.
Gatehouse Bank noted that it will continue to generate its own originations onto its balance sheet via its own home financing offering.
“We have seen a considerable increase in demand for our products and services over the last five years and this agreement highlights the bank’s credibility as a leading Islamic finance provider in the U.K.” Gatehouse Bank CEO Charles Haresnape said.
Founded in 2007, Gatehouse Bank is a Shariah-compliant bank that provides savings products and financing for commercial and residential real estate in the U.K. The bank offers personal and commercial deposits that ensure Shariah-compliance, for example, by providing an expected profit rate (EPR) rather than an interest rate. The accounts are invested in Shariah-compliant investments and accountholders receive a share of the profits as a return on their accounts.
Additionally, Gatehouse Bank offers home financing via what is often referred to as an “Islamic Mortgage,” in which homebuyers purchase the property jointly with the bank, and is ownership transferred to the buyer after all payments are made at the end of the term. The bank also provides Shariah-compliant Buy-to-Let purchase plans and has launched multiple Private Rented Sector (PRS) investments since 2014.
“This forward flow arrangement positions us to meet the growing demand for Sharia-compliant financing,” ColCap UK’s Executive Director and COO Esther Morley said. “Combining Gatehouse’s and ColCap’s expertise, we’re confident this collaboration will deliver significant value and reinforce ColCap UK’s leadership in ethical finance.”
A subsidiary of ColCap Financial Group, a residential home finance specialist based in Australia, ColCap has offered residential property financing in the U.K. since 2022.
Offa acquires Bank of Ireland’s Alburaq Sharia-compliant home finance portfolio
A major acquisition by U.K. Islamic proptech Offa will give customers a wider range of Shariah-compliant property financing solutions. Birmingham-based Offa has acquired Bank of Ireland’s Alburaq portfolio, valued at $21.6 million (£17 million). This gives the fintech one of the oldest Shariah-compliant home financing products ever launched in the U.K., which include more than 350 home purchase plans.
“It is a testament to Offa’s abilities that Bank of Ireland has agreed to sell their Islamic home finance portfolio to us,” Offa Chief Financial Officer Amir Firdaus said. “This marks another chapter in Offa’s ambitious growth plans. Members of the Offa executive team are already very much familiar with Alburaq’s clients, having helped distribute this book almost two decades ago, and we are delighted that these customers are now coming home to us.”
Offa’s acquisition will revive a product that has not been available to new customers since 2009. Alburaq was launched as the U.K.’s first Shariah-compliant structured deposit solution in 2008 via a partnership between Bank of Ireland and Arab Banking Corporation’s U.K. division. This week, a spokesperson for Bank of Ireland reported that “the sale of the small remaining portfolio will provide customers with access to a wider range of Sharia-compliant property re-financing options.”
Founded in 2019, Offa calls itself as the first financial institution in the U.K. to acquire an Islamic home-finance book. The U.K.’s first Shariah-compliant bridging lender, Offa introduced its Buy-to-Let (BTL) offering this summer and, back in February, announced a partnership to use finova’s Apprivo origination platform to power its Shariah-compliant digital lending solution.
Premier Bank and Mastercard launch Shariah-compliant cards in Kenya
Proptech and mortgagetech are not the only fields where Shariah-compliant fintech innovation is growing. A newly announced partnership between Kenya-based Islamic financial institution Premier Bank and Mastercard will provide a suite of Shariah-compliant debit, credit, and prepaid cards
The suite will offer features such as contactless payments and global acceptance. Cardholders will be able to make safe and convenient online payments, transact at brick-and-mortar stores, and withdraw cash from Premier Bank ATMs across the country. The suite also provides benefits including Lounge Access through the World Elite Card, travel insurance, and localized offers such as dining discounts via Uber Eats and travel discounts with major airlines.
“The introduction of Shariah-compliant Premier Mastercard suite is not merely a product launch. It is a strategic initiative that exemplifies our commitment to enabling communities with secure, convenient, and tailored financial services,” Mastercard SVP and County Manager for East Africa and Indian Ocean Islands Shehryar Ali said. “As Kenya continues to embrace digital transformation, this initiative will play a pivotal role in shaping a more inclusive financial landscape that caters to the evolving needs of individuals and businesses across the country.”
Launched in 2023, Premier Bank was born via the acquisition of the majority shares in First Community Bank, which was founded in 2007. Headquartered in Nairobi, the bank has assets of more than $23 billion as reported in the 2023 Central Bank of Kenya’s Bank Supervision Annual Report. The financial institution opened its 22nd branch earlier this year.
Here is our look at fintech innovation around the world.
Central and Eastern Europe
Polish identity verification platform Authologic raised $8.2 million to fight AI-powered fraud.
The central bank of Latvia to offer fast track pre-approval for MiCA compliance.
German fintech 21X secured approval for its blockchain-based tokenization platform.
Middle East and Northern Africa
Crypto.com launched its Mastercard-powered card in Bahrain as part of its expansion in the Gulf region.
Backbase inked a distribution and integration deal with Morocco-based consultancy and AI solutions integrator Seven.
Kazakhstan-based banking and fintech company Kaspi.kz acquired a majority stake in Turkish e-commerce technology platform, Hepsiburada.
Central Asian digital banking ecosystem TBC Uzbekistan launched its own payment processing center.
Nepalese fintech Fonepay partnered with U.K.-based Compass Plus Technologies to offer the country’s first virtual credit card.
Latin America and the Caribbean
Spanish banking group Santander introduced its digital Openbank in Mexico.
Mastercardteamed up with Brazilian events platform Sympla and Latin American payments orchestrator Yuno to bring its Payment Passkey Service to the region.
Nuvei launched blockchain-based payments in Latin America.
Asia-Pacific
Payments company Tyrolaunched its embedded payments solution that makes it easier for businesses to accept tap-to-pay payments.
Filipino-based fintech Starpay teamed up with distributed database solutions provider OceanBase.
Financial servcies platform Atome forged a payment checkout partnership with Valiram in Singapore and Malaysia.
Sub-Saharan Africa
Kenya-based Islamic financial institution Premier Bank unveiled a suite of Shariah compliance payments solutions courtesy of a partnership with Mastercard.
CNBC Africa profiled Rwanda’s Kigali International Finance Centre and its new fintech strategy.
Visa announced investment in four African fintechs — Oze, Workpay, OkHi, and ORDA — that graduated from its Africa Fintech Accelerator program.
This week on 5 Tales from the Crypto, we lead-off with President-elect Trump’s nominee for SEC chair and that nominee’s attitudes toward the crypto industry. We also look at a new blockchain banking app, and a pair of partnerships designed to boost crypto trading security and tax compliance, respectively.
Trump nominates Paul Atkins as SEC chair
Of all of President-elect Trump’s nominations, his nominee for SEC chair is the one most anticipated by many in the crypto community. Having pledged to fire current SEC chairman Gary Gensler “on day one,” Trump has this week nominated an individual widely believed to be a significant “advocate” of the cryptocurrency industry: Paul Atkins.
“(Atkins) believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World,” Trump noted on social media platform Truth Social. “He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.”
Atkins is currently CEO of financial services consultancy Patomak Global Partners, and served as an SEC commissioner from 2002 to 2008. He is credited for emphasizing the importance of investor education, having been part of the resolution of one of the biggest Ponzi schemes in history — the Bennett Funding Group case. Atkins also previously served in the first Trump administration as a member of the President’s Strategic and Policy Forum, an advisory group of business leaders that focused on job creation and economic growth initiatives.
As far as Atkins’ specific “crypto bonafides” go, he joined a cryptocurrency advocacy group, Token Alliance, in 2017, and is co-chair of the organization. The alliance is a project of the Chamber of Digital Commerce dedicated to promoting best practices and policies for cryptocurrencies, tokenized networks, and digital assets.
What are the early impressions from the crypto community? Carlos Domingo, Founder and CEO of digital securities compliance platform Securitize, told interviewers on Yahoo! Finance that he was “very excited” at the prospect of Atkins as SEC chair, referring to Atkins as “very pro digital assets, and very knowledgeable in the industry.” Similarly, Joe McCann, Founder, CEO, and CIO of digital assets investment firm Asymmetric told CNBC that Atkins’ call for greater clarification of the SEC’s SAB-121 rule with regard to how institutions must account for cryptoassets in their custody showed Atkins to be someone who would bring “common sense to the SEC.”
Former Revolut pair launch blockchain banking app
Catching up on news from our last edition of 5 Tales from the Crypto, we note that a pair of former-Revolut employees — Joao Alves and Guilherme Gomes — have launched a new, self-custodial stablecoin app with accompanying Mastercard debit card. The app, called Bleap, enables users to spend stablecoins without having to pay conversion fees. Users can add stablecoins from external wallets to their Bleap app or add them by buying stablecoins using fiat currency. The app supports multi-currency accounts with savings rates that can offer as much as 5x compared to traditional banks. Bleap also supports fee-free crypto on- and off-ramping through external wallet connections.
The launch announcement comes as the company reports securing $2.3 million in pre-seed funding at a pre-money valuation of $10 million. The investment round was led by Ethereal Ventures and featured participation from Maven11, Alliance DAO, Robot Ventures, as well as angel investors from Revolut, cryptocurrency wallet Phantom, cryptocurrency exchange OKX, Ethereum access network EigenLayer, and Consensys.
Currently in beta with select European users, Bleap is slated for public launch in the first quarter of 2025.
cheqd partners with ID Crypt Global
Digital identity and security company ID Crypt Global has teamed up with payment and trust infrastructure for identity and trust specialist cheqd. The two companies will work together to provide Apex Digital Exchange (ADEX) with enhanced identity and security capabilities. This will enable the exchange to better serve its customers and make it easier for more traditional financial services companies to participate in decentralized finance (DeFi).
The partnership is designed to tackle two issues that are slowing wider embrace of crypto trading for many investors: usability and trust in identity. To this end, cheqd integrates seamlessly with the ADEX platform to provide SSI-based onboarding, privacy-preserving identity verification, and continuous KYC and AML checks. Additionally, cheqd’s payment model supports new, more cost-effective ways to monetize verifiable credentials. For example, the partnership will enable ADEX to offer verified users lower cost trading or other rewards, linking verifiable identity to transaction affordability. Combined with ID Crypt Global’s identity verification and risk screening, ADEX will be able to offer a streamlined, lower-cost user experience for its customers while ensuring regulatory compliance.
Founded in 2021 and headquartered in London, cheqd provides payment and trust infrastructure for credentials and verifiable AI. The company provides customized network offerings and supports multiple credential formats for identity frameworks including eIADS 2.0 in Europe and beyond. The company has raised $3.3 million funding according to Crunchbase, and includes Bluenode Capital and Bixin Ventures among its investors.
Bison integrates with tax reporting platform Blockpit
The road to hell may be paved with good intentions. But the road to mainstream acceptance of cryptocurrencies will need to be well-macadamized with compliant crypto tax reporting.
To this end, cryptocurrency trading app BISON has announced its integration with crypto tax reporting platform Blockpit. Currently available in the BISON mobile app, the integration will make it easier for BISON users to accurately pay any cryptocurrency-related taxes.
“Taxes on cryptocurrencies can be complex,” BISON CEO and Co-founder Ulli Spankowski noted. “At BISON, we are committed to providing our customers (with) simple, secure, and reliable solutions. Partnering with Blockpit, a leading provider in crypto tax reporting, is a logical step forward. Thanks to this collaboration, we deliver real added value to approximately 870,000 BISON customers by significantly reducing the tax-related challenges of crypto trading.”
Founded in 2017, Blockpit enables its more than 350,000 customers worldwide to track their crypto portfolios, optimize their taxes, and create compliant tax reports. Based in Austria and Germany, the company has generated more than one million tax reports since inception, and processed more than 500 million transactions.
Headquartered in Germany, BISON is powered by the Boerse Stuttgart Group. The first crypto trading app to be supported by a traditional securities exchange, BISON was founded in 2019 and is active in Germany, Austria, and Switzerland. The app offers trading in 27 cryptocurrencies including BTC and ETH, as well as in more than 2,500 stocks and exchange-traded products (ETPs).
HTX introduces crypto lending product
Global digital asset trading platform HTX launched its Crypto Loans product this week. The new offering features dynamic interest rates, high loan-to-value (LTV) ratios, no loan limits, and zero fees,
Loans can be secured in USDT, BTC, and ETH; the same currencies are also accepted as collateral assets. HTX noted that it plans to expand the number of loanable and collateral assets.
As part of the launch, the platform is kicking off a “Borrow & Earn” event with a prize pool of 2,700,000,000 $HTX. Running from December 2 through December 8, the event will split the prize among those users who borrow USDT via Flexible Crypto Loan. Prize allotments will be based on the proportion of the users’ interest expenses relative to the platform’s total interest income from the product.
Founded in 2013 by Chairman Leon Li, HTX has grown from a digital asset exchange to an ecosystem of blockchain businesses involved in financial derivatives, investment, digital asset trading, and more. Changing its name from Huobi to HTX in 2023, the company has more than 47 million registered users around the globe.
