• Commerzbank is leveraging Pliant to offer physical and virtual cards to its corporate banking suite.
• Corporate-card-as-a-service company Pliant allows banks to issue virtual and physical corporate cards with backend controls and a management and visibility platform.
• Pliant has raised $180 million, including a recent $19 million Series A round led by PayPal Ventures.

German bank Commerzbank has expanded its card portfolio to include corporate cards. The bank has tapped corporate-card-as-a-service provider Pliant for technology that will offer its small-to-medium-sized business clients a corporate credit card solution.

Commerzbank’s business customers will be able to digitally manage both physical and virtual credit cards and employee-issued credit cards. Customers will be able to integrate the new cards into their billing processes starting in the third quarter of 2024.

“The expansion of our product portfolio in the card sector underlines our claim to be the first point of contact for business customers in Germany. With our new digital credit card solution, we enable our customers to make their billing processes more efficient and thus save costs and time,” said Commerzbank Head of Value Stream Accounts and Payment Methods in Private and Small-Business Customers segment Tobias Knoll.

Pliant allows banks to issue virtual and physical corporate cards that allow customers to restrict card usage based on time range or purposes, set individual limits for their employees, track card expenditures in real-time, and manage receipt capture and accounting tasks.

“Our hypothesis at Pliant has always been that long-term success is only possible in cooperation with banks,” said Pliant CEO Malte Rau. “That is why we are pleased to support Commerzbank as a strong partner of small- and medium-sized business customers in Germany with an innovative credit card solution.”

Berlin-based Pliant was founded in 2020 and has since raised $180 million, including a recent $19 million Series A round led by PayPal Ventures. Last year, Pliant acquired business financial management platform Friday Finance for an undisclosed amount.

Photo by April Pethybridge on Unsplash

• Apple is shutting down Apple Pay Later, its BNPL offering, just 15 months after launching the tool.
• Apple said that the decision will help the company launch a BNPL offering to cardholders across the globe.
• Apple may have also wanted to avoid the consequences of the CFBP’s recent interpretive rule, which classifies BNPL providers as credit card issuers under the Truth in Lending Act. 

March 28, 2023 to June 17, 2024. That is the lifespan of Apple Pay Later, Apple’s buy now, pay later (BNPL) tool.

Apple launched the tool last year to allow Apple cardholders to pay for their purchases under $1,000 in four separate installments over the course of six weeks. The service was free, and did not charge users interest or any other fees. Consumers benefitted from a six week float on their purchase amount, while Apple benefitted by attracting new cardholders and potentially enticing consumers to spend more money using their Apple card. This week, Apple announced it has shut down the Apple Pay Later service.

But even though Apple Pay Later is shutting down, the company is replacing the BNPL method with another BNPL option. In a statement to 9to5Mac, an Apple spokesperson said, “Starting later this year, users across the globe will be able to access installment loans offered through credit and debit cards, as well as lenders, when checking out with Apple Pay. With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S. Our focus continues to be on providing our users with access to easy, secure and private payment options with Apple Pay, and this solution will enable us to bring flexible payments to more users, in more places across the globe, in collaboration with Apple Pay enabled banks and lenders.”

According to this statement, the major reason Apple is switching to a new BNPL tool is that the new offering will make installment purchases available to cardholders across the globe. Additionally, Apple will no longer hold the paper on the short-term loan. The company’s new BNPL tool will leverage Citi to furnish the short-term loan.

There is another, unspoken reason Apple may have decided to change its role in the BNPL game, however. The move may have to do with the CFPB’s recent interpretive rule for the BNPL industry, which classifies BNPL providers as credit card issuers under the Truth in Lending Act. This would subject Apple to a range of new obligations, including having to investigate customer disputes, pause payments, provide refunds, and issue credits when applicable.

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• Pinwheel is integrating its technology into digital banking solution Lumin Digital.
• Under the partnership, Lumin will leverage Pinwheel’s Prime and Verify tools that will offer a deposit switching solution and verified income and employment information, respectively.
• Lumin expects the move will improve both account activation and acquisition ROI for its financial services clients.

Payroll data connectivity platform Pinwheel announced today it is integrating its technology into digital banking solution Lumin Digital.

Pinwheel will help Lumin bring its financial institution clients frictionless account activation technology. By adding Pinwheel’s deposit-switching solutions, Lumin expects it will improve both account activation and acquisition ROI.

“This partnership provides our customers options for deposit switching solutions and is paramount to helping them achieve their goals,” said Lumin Chief Product Officer Sean Weadock. “Pinwheel is advancing their market in terms of ease, coverage, and security.”

Under the partnership, Lumin will leverage Pinwheel Prime and Verify. Pinwheel Prime is Pinwheel’s two-click deposit switching solution, which digitizes the direct deposit switching process to provide real-time insights into customers’ income. This increased visibility into customer data helps financial institutions form deeper relationships and increase the customer lifetime value.

Pinwheel’s Verify product allows financial institutions to improve their underwriting processes by accessing their customers’ verified income and employment information. Because Pinwheel is a Consumer Reporting Agency (CRA), financial institutions can legally use the income and employment data for credit decisioning.

“Between traditional financial institutions and neobanks, consumers have many choices, so we want to help banks and credit unions make their deposit switching process for customers as easy as possible,” said Pinwheel Partnerships Lead Brian Karimi-Pashaki. “In a recent survey, we discovered that 72% of consumers say they would be more likely to make a bank their prime bank if it offered Pinwheel Prime at acquisition, which is reason enough to want to get our technology into the hands of as many financial institutions as possible.”

New York-based Pinwheel was founded in 2018 and in addition to its Prime and Verify products also offers Earnings Stream, an early wage access tool; Taxes, a tool to help retrieve and assess customers’ tax forms; Digital, which offers third party companies digital payroll connectivity solutions; and Smart Branch, a tool to deliver Pinwheel’s digital payroll data connectivity solutions in-branch. Pinwheel helps third party apps connect to over 1.5 million employers using over 1,800 platforms, which cover up to 100% of U.S. workers paid via direct deposit. With more than $77 million in funding, the company counts Block, Citizens Bank, Acorns, Credit Karma, and others among its clients.

Founded in 2016, California-based Lumin has integration, referral, and reseller partnerships with multiple, major financial services players, including Larky, Constant, Glia, Envestnet, Paymentus, Jack Henry, Atomic, BioCatch, and others.

Photo by Skye Studios on Unsplash

• Quantexa is launching its Q Assist technology suite to augment decision-making among its clients and employees.
• HSBC announced it is an early adopter of Q Assist and will pilot the technology as part of Quantexa’s Lighthouse Program.
• BNY Mellon is also currently evaluating joining the Lighthouse Program.

Decision intelligence solutions company Quantexa announced today that HSBC has selected its newly launched Q Assist, a technology suite to help organizations augment decision-making among frontline and information workers. 

The Q Assist Technology Suite helps clients leverage context aware generative AI without having to invest much in infrastructure, tooling, or add skilled human resources. Specifically, employees can tap into copilots, linked data, Quantexa’s knowledge graph capability, and more to enhance the accuracy and reliability of generative AI models. The Technology Suite is comprised of an integration layer that serves as a framework of tools, connectors, and APIs that link Quantexa’s Decision Intelligence Platform with LLMs and conversational AI systems; a prompt management and sharing capability that integrates with external prompt tools and frameworks; and a copilot that allows users to query large and disparate data via a natural language interface.

Along with the launch of Q Assist, Quantexa also unveiled its Lighthouse Program for early adopters. “Quantexa’s engineering principle of shaping solutions to deliver maximum customer value has allowed our clients to play an integral role in helping to shape the product requirements for Q Assist,” said Quantexa CTO Jamie Hutton. “Through the company’s Lighthouse Program for early adopters, we have the benefit of working with industry leaders that provide valuable feedback throughout our roadmap process.”

HSBC is participating in the Quantexa Lighthouse Program, making the firm an early adopter of Q Assist. The technology suite will help HSBC streamline the processes of analysis, investigation, and reporting for its knowledge workers; reduce the firm’s reliance on data science and operations teams; offer its customer facing teams access to enriched data and insights in order to improve the customer experience; and enable teams to accelerate the decision-making process while improving traceability of decisions. HSBC anticipates that, within the first year of deploying Q Assist, the technology will help democratize analytics and accelerate processes, ultimately leading to productivity gains.

“This new solution has the potential to enhance the efficiency and accuracy of complex tasks such as anti-money laundering investigations and sales strategies by providing trusted data and contextual analytics,” said HSBC Global Chief Operating Officer of Commercial Banking David Rice. “The introduction of contextual analytics and innovation will enable HSBC to concentrate our resources more productively and ultimately help our customers.”

Quantexa noted that BNY Mellon is also currently evaluating joining the Lighthouse Program. “The next phase in our innovation efforts will see us exploring the potential of enabling frontline workers across the bank to use Gen AI to act on the data insights confidently and reach new levels of efficiency in the process,” said BNY Mellon, Cheif Data Officer Eric Hirschhorn.

Quantexa expects to make Q Assist available publicly outside of its Lighthouse program by early 2025.

Photo by Google DeepMind