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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Mastercard launched Move Commercial Payments, a real-time cross-border payments solution that operates 24/7.
The new commercial payments tool leverages a multi-rail system that includes SWIFT and Mastercard’s proprietary networks.
Move Commercial Payments offers features like liquidity management, integration with existing SWIFT systems, and helps to reduce counterparty risk.
Mastercard unveiled an offering this week that will allow commercial users to make cross-border payments in near-real-time. The payments giant introduced Mastercard Move Commercial Payments today, which facilitates payments 24 hours a day, 365 days a year.
Mastercard Move Commercial Payments leverages a multi-rail approach that includes SWIFT, and Mastercard’s proprietary networks to facilitate the cross-border payments. Relying on multiple rails enables banks and their commercial clients to send near-instant, transparent, and predictable transactions any time of day, any day of the week.
Cross-border payments have become increasingly crucial for businesses operating in a global economy. According to a 2023 McKinsey study, global payments revenue grew by double digits in both 2021 and 2022. However, many businesses still struggle with cross-border payments, frustrated by hidden costs and unpredictable settlement speed.
Mastercard Move Commercial Payments offers more than just real-time settlement. The tool also includes several features designed to enhance its value for banks. These features include multiple settlement options that improve liquidity management, a multi-party arrangement to reduce counterparty and default risks, integration with existing SWIFT messaging systems, and compatibility with current correspondent banking relationships. These elements help banks maximize operational efficiency while minimizing risk.
“By powering fast, predictable and transparent payments, Mastercard Move Commercial Payments will bring what is already the norm in domestic payments to the commercial cross-border payment space,” said Mastercard Head of Transfer Solutions Alan Marquard. “Our latest product innovation aims to directly address the pain points that are currently affecting the commercial cross-border payments market. By shifting to this new model, they will be empowered to generate new revenue streams while reducing risk and enhancing the offering for their corporate customers.”
Mastercard Move Commercial Payments, which is part of the company’s Move portfolio, was piloted in the U.K. with Lloyds Banking Group and UBS. This initial phase marked an important step in refining the platform’s capabilities for large-scale deployment. By collaborating with major financial institutions, Mastercard was able to validate the efficiency of its multi-rail payment system, demonstrating the platform’s market readiness and paving the way for broader adoption.
Mastercard’s launch competes with Visa’s real-time payments solution called Visa Direct, which enables fast and secure money movement to different endpoints across the globe. Similar to Mastercard’s Move Commercial Payments, Visa Direct also leverages a multi-rail approach that supports card-based and account-to-account transfers that integrate with The Clearing House RTP and FedNow.
Today’s launch comes amid a string of other payments-related news releases this month, as both fintechs and traditional financial services firms seek to capitalize on the recent consumer awareness of real-time payments generated from last year’s FedNow launch. Just last week, for example, we covered news from Worldline, which unveiled an account-to-account transfer tool in Europe, Tyfone’slaunch of Payfinia instant payments solution, and Token.io’s real-time payments partnership with Santander.
News in the payments space has been heating up this month, with announcements from Mastercard, Stripe, Token.io, Worldline, and Tyfone shaking things up. What’s next for payments? Stay tuned throughout the week to read the latest news this week as we post updates and evolutions.
Bank technology
Tompkins Community Bank selectsNCR Atleos ATM-as-a-Service to strengthen self-service banking.
Payments
Canvapartners with EBANX to provide local payment options for customers in Latin America.
Worldline has launched Bank Transfer by Worldline, an account-to-account payment tool.
The new pay-by-bank solution enables retailers to accept bank draft payments and handle high-value transactions, including B2B payments, across 10 European countries.
Bank Transfer by Worldline also facilitates cross-border payments, leveraging Worldline’s open banking network to connect with over 3,500 banks, providing merchants a seamless way to initiate payments directly from customer bank accounts, reducing transaction fees and declines.
Payments services company Worldline is launching yet another payment tool this week. After debuting its embedded payments tool earlier this month, the France-based company is launchingBank Transfer by Worldline, an account-to-account payment method.
The new pay-by-bank solution enables retailers to accept bank draft payments and allows for non-traditional payment methods, including invoices and high-value transactions. Bank Transfer by Worldline boasts many of the same benefits that popular pay-by-bank tools offer.
The solution is notably different from traditional pay-by-bank offerings in the U.S. because it facilitates cross-border payments. This is key for merchants operating across multiple geographies. Additionally, the new payments tool specializes in high-value transactions– including B2B transactions– that typically incur higher fees and reduces the number of declined transactions, since funds are validated directly from the bank account.
“With Bank Transfer by Worldline, we have developed a payment method grounded in trust and simplicity, leveraging existing European payment networks and offering innovative customer experience,” said company Head of Merchant Services Paul Marriott-Clarke. “This launch reinforces our commitment to making payment solutions accessible for all.”
Bank Transfer by Worldline, which went live in August of 2024, allows merchants to accept payments from around 300 million customers. After a nine-month pilot phase, the solution now counts about 500 Worldline merchants clients using Bank Transfer by Worldline’s online payment solutions and pay-by-link services.
“By integrating Worldline’s open banking solution, which connects to over 3,500 banks across European countries, Bank Transfer by Worldline offers merchants a solution that simplifies payment initiation via bank transfer and unifies the customer experience,” said Worldline Head of Financial Services Alessandro Baroni.
The new tool is available for merchants in 10 European countries, including Austria, Belgium, Croatia, France, Germany, Italy, Luxembourg, the Netherlands, Slovenia and Spain. The company aims to launch in another four regions– Poland, Slovakia, Czech Republic and Hungary– by the end of 2024. Eventually, Bank Transfer by Worldline will be available to all eligible merchants across the EU.
FedNow, the U.S. Federal Reserve’s instant payment service went live in July of 2023. Now, 15 months later, adoption rates have been unpredictably slow, especially when it comes to banks that are able to send FedNow payments.
Before considering the challenges behind sending and receiving FedNow payments, here’s a look at some of the data behind adoption rates:
Only around 900 financial institutions have connected to the FedNow network, a fraction of the 8,000 firms the Fed stated as its goal.
Close to 60% of the financial institutions on board with FedNow can receive payments, while only 40% of firms have signed up to send payments.
Banks connected to the FedNow network range in size from under $500 million to more than $3 trillion in assets.
Of the FedNow participants, 78% are community banks and credit unions.
There are a handful of reasons why firms might be hesitant to participate in FedNow. The service faces competition with The Clearing House’s RTP platform, which was launched well before FedNow went live. Additionally, banks may be holding back because of the fees that come with participating in FedNow. Banks must pay $25 per month per routing transit number to use the service, plus a $0.045 per credit transfer fee charged to the sender and a $0.01 per RFP message, charged to the requestor. The Fed also charges a liquidity management fee of $1 per transfer.
Another reason firms may be reluctant to join FedNow is that the new payment rail comes with a set of challenges for both sending and receiving payment. Below, I’ve outlined five challenges financial institutions face for accepting FedNow payments, and five challenges they face when receiving FedNow payments, along with strategies to overcome each obstacle.
Challenges in accepting FedNow payments
1. Transaction validation in real time Firms may have difficulty validating incoming payments instantly, especially considering the need to check for insufficient funds and fraud, plus ensure compliance, all in real time.
To combat this, firms can implement automated validation systems to check the accuracy, authenticity, and compliance of payment transactions in real time. They can also use AI tools for fraud detection to help banks validate transactions without human intervention. Additionally, they should enhance their AML compliance systems to conduct rapid checks.
2. Managing customer disputes Customer disputes are always a headache when facilitating payments. And with instant payments, customer disputes can be even more of a challenge. That’s because instant payments reduce the time that dispute resolution can take place, since the funds are transferred immediately.
Banks should create dedicated customer service channels and clearly communicate the dispute resolution process to consumers. Additionally, banks should create robust communication procedures with other banks in the FedNow network in order to resolve reversals and other issues quickly.
3. Handling a high volume of payments If the adoption of FedNow grows, banks will need to process higher volumes of payments as more customers use the new payment rail. This increase could strain legacy systems– especially if they are not optimized for 24/7 processing at high volumes– and ultimately lead to payment delays.
To overcome this, banks should scale their payment processing infrastructure by adopting cloud solutions and ensuring they have sufficient bandwidth to handle high transaction volumes, especially during peak times.
4. Ensuring compliance in real time Just as they do with ACH payments, banks need to ensure they are complying with regulatory requirements, including KYC, AML, and other regulations. This is an additional challenge with FedNow payments, since the compliance checks and documentation need to be made in real time.
Banks can leverage automation for compliance checks and integrate real-time monitoring tools into their operations to ensure that incoming payments are compliant without delaying the transaction. As with all compliance training, firms should ensure that their compliance officers’ training is up-to-date. Fortunately, there are multiple regtech solutions, including ComplyAdvantage, Trulioo, and Fenergo, available to help.
5. Creating a seamless user experience In today’s digital age, consumers are not only used to receiving things instantly, they expect it. With instant payments as the standard, any delays or issues in receiving funds could create a poor user experience and tarnish the bank’s brand.
To ensure the best user experience, banks should first invest in a user-friendly interface. Transparent and timely communication is also key. Firms should offer real-time notifications and ensure that customers have easy access to their transaction history.
Challenges in sending FedNow payments
1. Ensuring adequate liquidity With the recent increased scrutiny on adequate liquidity, it is essential that banks ensure they have enough funds on hand. With instant payments, banks must have sufficient liquidity available at all times, even during weekends and non-business hours.
To overcome this, firms can implement real-time liquidity monitoring systems and use the Federal Reserve’s liquidity management services. Banks should also establish internal controls to maintain and managing their liquidity reserves effectively.
2. Maintaining 24/7 availability This may be one of the biggest headaches for banks looking to send FedNow payments. Because FedNow operates 24/7, banks need to ensure they have adequate infrastructure and staffing to support continuous operations. This can be a particular headache for smaller institutions, which lack resources to support such uptime.
To keep up with availability requirements, banks can adopt automated processing systems, use cloud-based solutions to keep their operations scalable, and partner with third-party vendors who offer 24/7 payment support. Additionally, firms should conduct regular system maintenance during non-peak hours to ensure they are not disrupting operations.
3. Ensuring fraud and security protection Just as when receiving instant payments, accepting instant payments does not leave banks much time to identify and stop fraudulent transactions. This increases the risk for loss.
Banks can add a layer of protection by deploying real-time fraud monitoring systems to detect suspicious activities using AI and machine learning. Also, firms can implement advanced consumer authentication methods and mandate ongoing fraud prevention training for staff to further mitigate risks.
4. Managing customer payment errors With instant payments, there is not much time to correct mistakes. When consumers fat-finger the payment amount or send the funds to the wrong recipient, they lose the opportunity to correct errors. This could not only create customer dissatisfaction, but also lead to financial losses.
Fortunately, there are ways to mitigate such mistakes. Banks can add confirmation steps into the user interface that require users to verify payment details before the transaction is sent for processing. It is equally as important to educate customers about the finality of real-time payments and provide them with a clear process for dealing with errors.
5. Creating interoperability with other payment networks As with other payment rails, banks need to ensure their systems are compatible across other systems. Banks should create a system that is not only compatible with FedNow, but also with other real-time payment systems, including The Clearing House’s RTP.
To ensure compatibility, banks can invest in unified payment platforms that integrate multiple payment rails. Additionally, firms may find it helpful to participate in industry-standard development efforts to help shape the conversation around compatibility and functionality.
Monzo launched Team, a new offering aimed at larger small businesses that outgrow its Business Pro and Lite plans.
Team includes the same tools as Pro and Lite plans, but also offers features such as employee expense cards, bulk payments, and account access for up to 15 members.
Team is available in the U.K. and is priced at £25 per month.
U.K.-based digital banking platform Monzo is building out its small business offerings this week with the launch of Team.
Monzo’s Team offering complements Monzo Business Pro and Monzo Business Lite plans, which collectively serve more than 500,000 businesses. The digital bank created Team to serve businesses that are too large to have their needs met by either the Pro or Lite plans.
“With Team, we’re bringing that to bigger small businesses by introducing features that teams need to help run the business day-to-day,” the company said in its blog post announcement. “Bigger, more complex teams up and down the country whose needs weren’t being met by our Lite and Pro plans before.”
Monzo’s Team product comes with all of the products and services that Lite and Pro offer, including Tax Pots for tax savings accounts, invoicing, integrated accounting and more. Additionally, the new Team accounts come with employee expense cards, offer the ability to create payment approval limits, as well as the capabilities to tailor individual account access levels for up to 15 people.
Notably, Team also allows for bulk payments. Businesses can use Team to upload payee details and make multiple payments at the same time for things like salaries and suppliers, without having to worry about manually entering the payee details every time.
Limited companies can have up to 15 team members and sole traders can have a team of three people and set what individual team members can see and do. Pricing for Teams, which is currently only available to businesses in the U.K., starts at $32 (£25) a month.
Founded in 2015, Monzo is one of the earlier small business digital bank providers. The company also offers personal accounts. With 10 million personal credit card holders, Monzo also provides savings, pension, investments, debit cards, and loan products. Monzo’s competitors include well known brands such as Revolut, Starling, N26, and Monese.
Tyfoneannounced the formation of a new spinout today. The company launched the new entity, Payfinia, to provide instant payment solutions to both financial institutions and third-party organizations.
Payfinia aims to help financial institutions access and establish ownership of their instant payments services. The company also helps third-party organizations across various industries integrate instant payments with traditional payment tools into their existing payment and money movement use cases including A2A, P2P, Bill Payment, B2B and B2C disbursements.
Tyfone formed Payfinia by shifting its IP and technology, including advanced UX and security protocols, to the new company. Payfinia hinges on Tyfone’s Instant Payment Xchange (IPX), a money movement gateway to FedNow that will serve as Payfinia’s flagship offering.
Tyfone launched its IPX platform in July 2023, in conjunction with the Federal Reserve’s FedNow instant payment service. Since launch, IPX has converted nearly 30% of same-day ACH credit transactions into send transactions on push instant payment systems, routing existing payment solutions through networks like FedNow. Launching Payfinia will help Tyfone further build on the instant payments experience.
“We’ve seen remarkable results with our Instant Payment Xchange, achieving 50% less fraud compared to Same-Day ACH and fourfold reductions over other P2P solutions,” said Tyfone CEO Siva Narendra. “As we launch Payfinia, we’re doubling down on security with cryptographic, deterministic methods aimed at countering AI-driven fraud risks, while ensuring instant payments remain efficient, secure and accessible. This is just the beginning of Payfinia’s impact across industries.”
Integrating FedNow’s instant payments service, which the U.S. Federal Reserve launched in July of 2023, has led to a host of challenges for banks. These challenges include building a complex integration for real-time payment systems, maintaining compliance with security standards, and ensuring a seamless user experience across digital platforms.
With IPX, Payfinia is positioned to help financial services companies overcome these obstacles. That’s because the IPX platform offers real-time connectivity to both FedNow and RTP networks, helping banks eliminate the need for multiple integrations when adopting both instant payment systems. Additionally, Payfinia provides enhanced security and compliance as well as user-friendly digital tools that can help firms integrate the new technology into their existing interface. Payfinia also ensures a scalable, unified experience across multiple channels.
Tyfone is one of the earlier Finovate alums, having demoed at the first Finovate event to take place in San Francisco– FinovateSpring 2008. At the show, Tyfone Co-Founder Siva Narendra demoed a memory card for a mobile phone that facilitated contactless payments. The company, which used to focus on mobile-only solutions, began developing for multiple channels in 2014.
Tyfone was founded in 2004 and provides digital banking and payment solutions. In addition to its instant payments tools, the Oregon-based company offers nFinia, an enterprise solution that allows community financial institutions to deliver a hyper-personalized digital banking experience to both retail and commercial customers. The configurable solution offers more than 300 financial functions and provides an open ecosystem with direct integrations with more than 160 players.
Brex and Navan have teamed up to launch BrexPay for Navan, a business travel and payments solution that combines Brex’s global payments infrastructure with Navan’s travel-booking system.
The new tool leverages Navan Connect and Brex Embedded, and will allow companies to use their existing payment cards while benefitting from automated receipts and reconciliation.
This partnership will offer Navan a competitive edge by creating a scalable travel program with local currency cards and a seamless payments integration.
Corporate card and expense management fintech Brex has partnered with travel and expense solution Navan to launch a joint offering.
The new product, BrexPay for Navan, is an integrated business travel and payments solution for Navan users that streamlines travel payments into a single workflow when using the Navan travel management system. The new tool taps Navan Connect, a card-link technology that allows companies to use their existing payment cards and banking relationships, and Brex’s embedded finance tool, Brex Embedded.
The result of the collaboration is a direct integration between Brex’s global payments infrastructure and Navan’s travel-booking infrastructure. The new tools offer Navan’s business clients higher limits than legacy cards and local currency cards across more than 50 countries, a scalable travel program that facilitates compliance and helps reduce costs, and automated receipts and reconciliation that saves companies hours of accounting time each month.
“With BrexPay for Navan, we are bringing something truly unique and monumental to the market,” said Brex CEO Pedro Franceschi. “By combining Brex’s fast onboarding, global acceptance, and homegrown financial stack with Navan’s end-to-end business travel offering into one solution, customers now have access to a payments and travel experience that is beyond any other corporate travel and payments solution.”
For Navan, integrating payments into its existing corporate travel booking tool has the potential to both attract new clients and maintain its existing client base. That’s because for Navan, integrating payments into its existing corporate travel booking tool has the potential to both attract new clients and maintain its existing client base by offering businesses a single, cohesive solution for managing both travel and payments, eliminating the need to juggle multiple platforms.
By combining Brex’s multi-faceted financial infrastructure with Navan’s travel management system, companies benefit from higher credit limits, local currency options, and automated reconciliation, making it easier to scale travel programs globally while saving time and reducing costs. The move not only simplifies operations, but also enhances the overall user experience, giving Navan a competitive edge in a market that values efficiency and innovation.
Brex was founded in 2017 to create a digital-first business banking solution. The company offers business bank accounts with credit cards that have built-in rewards, spend controls, and expense tracking. The accounts provide businesses access to their online revenue, billpay tools, and integration with popular accounting tools.
Brex quickly rose to prominence in the fintech space after positioning itself as a digital bank account and card offering for startups. The company sought to solve pain points that often come with corporate cards, including lengthy approval processes and restrictive credit limits. Within just two years, Brex managed to raise billions of dollars in funding and achieve unicorn status.
In 2022, however, as Brex expanded its focus from small businesses to larger, venture-backed companies, the company experienced a downward shift. Because Brex discontinued some of its services geared toward small businesses– its original customer base– many customers left to seek alternative solutions. negative backlash.
Despite the dip, Brex remains a major player in the fintech space, serving “tens of thousands of businesses” ranging from small private companies to large public brands, including Airbnb and Classpass.
Revolut has announced the launch of Revolut Terminal, a wireless POS device aimed at larger businesses in the U.K. and Ireland.
Revolut Terminal offers advanced features like multi-location management, customer analytics, and integration with Revolut Pay.
Revolut Terminal is different from the Revolut Reader, which targets micro-businesses.
International challenger bank Revolut is pushing further into the business-to-business space this year. The company just announced the pending launch of Revolut Terminal, an advanced Point of Sale (POS) device designed for larger businesses across the U.K. and Ireland.
The new payment terminal, which is wireless and claims 99.9% uptime, is geared toward helping businesses manage transactions efficiently and securely across multiple physical locations. Revolut plans to launch the Revolut Terminal just ahead of Black Friday, which is timely for businesses that want to prepare for the increase in retail traffic before the holiday season.
Revolut’s new POS device integrates with Revolut Pay and will allow customers to make payments directly from their Revolut accounts without having to enter card or bank details. For merchants, Revolut Pay provides competitive transaction fees, which, at 0.5% + £0.02, are considerably less than traditional card processing fees.
“We’re excited to be offering Revolut Terminal as an all-in-one, powerful POS solution for our business customers,” said Revolut General Manager of Merchant Acquiring Alex Codina. “This launch comes as we continue to invest into our B2B offering and particularly double down on the hospitality and retail industries as an acquirer. A truly reliable payment solution is the difference between closing the sale and losing money, with Black Friday round the corner, Revolut Terminal is built to withstand high customer demand; and it could be yours in time for the busy season at an exclusive, reduced rate.”
In addition to the competitive pricing, the Revolut Terminal provides access to advanced POS features, including multi-location management, table mapping for restaurant businesses, analytics and insights into customer behavior, and integration with customer catalogues.
The Revolut Terminal builds on the success of the Revolut Reader, which the company launched in 2022. The Revolut Reader is a smaller, wireless dongle-type of payment acceptance tool aimed to help micro-businesses and entrepreneurs accept payments at 0.8% + £0.02 per transaction. The lightweight, portable card reader integrates with Revolut Business accounts and offers essential POS functionalities, including tipping and analytics.
Revolut offers an entire suite of tools for its business users. In addition to its flagship multi-currency accounts, the company also provides expense management tools, corporate payment cards, as well as a line of payment acceptance tools that includes hardware, APIs, analytics, and integrations.
“We’re continuing to see lots of momentum in Revolut Business, having this summer surpassed $500 million in annualized revenue and onboarding over 20,000 new customers per month,” said Revolut Business General Manager James Gibson. “Revolut Terminal marks the latest investment in our business customers, with merchants of all sizes now able to easily accept payments directly into their Revolut Business accounts, without juggling multiple providers.”
Last month, the company spun out its wealth management app into a standalone entity. And earlier this year, the company cemented its reputation as Europe’s most valuable fintech after receiving a $45 billion valuation.
The idea of a black box has always been unacceptable in financial services. Financial institutions must be able to explain to clients and regulators how decisions are made – are they fair, justified, and sensible?
This is where observability comes in and it can do much more than setting your moral compass right.
In this in-depth discussion, the panel will explore the integration of AI-powered observability and financial services, focusing on how organizations can enhance their operations, ensure data protection, and comply with regulations. The experts will delve into the transformative potential of AI, including Generative AI, in boosting overall productivity and maintaining regulatory compliance.
Why should you attend?
Gain strategic insights: Learn from industry leaders about the latest trends and strategies in AI-powered observability tailored specifically for financial services.
Enhance operational efficiency: Discover how to leverage AI and automation to streamline operations, mitigate risks, and ensure compliance.
Real-world applications: See live demonstrations and hear real-life use cases from Dynatrace customers, showcasing practical implementations and outcomes.
Interactive learning: Participate in a live Q&A session with experts, allowing you to get personalized answers to your specific challenges and questions.
Among the panel of experts is Wayne Segar, Field CTO at Dynatrace; Paul Barnhill, Managing Director at Deloitte; and Eric Baran, Principal Segment Leader- DevOps – Global Financial Services at AWS.
With Halloween and the U.S. election on the horizon, things may be getting spookier, but that’s not the case in fintech! We’ve seen some potential good news in VC funding trends and expect that there is more to come. Stay tuned throughout the week to read the latest news this week as we post updates and evolutions.
Regulatory reporting software provider Regnology is acquiring CG3-1, a company that specializes in regulatory calculations for the U.S. broker-dealer industry.
Relyanceraises $32 million to help companies comply with data regulations.
Open banking
Token.io and Santander team up to leverage open banking to enhance credit card repayments.
Digital bank Pockit has acquired multi-currency account provider Monese.
Pockit plans to continue operating both brands separately while combining efforts to process $6.52 billion (£5 billion) in annual transactions.
Monese’s B2B arm, XYB, will be spun off as a standalone business, and Monese’s 100 employees will join Pockit.
U.K.-based digital bank Pockit announced that it has acquired multi-currency account provider Monese. While financial terms of the deal were undisclosed, Pockit is rumored to have paid a “modest sum” for Monese.
According to the Times, Pockit CEO and Co-founder Virraj Jatania said that the deal would be “transformational” for the company and “great news for millions of customers poorly served by traditional banks.”
Pockit was founded in 2012 and now offers a prepaid card for everyday use, as well as a travel-specific prepaid card that can be used in multiple currencies. The company also offers joint account cards, a credit building tool, a cash advance product, and more. Pockit has raised just shy of $50 million, with its most recent $10 million round led by Puma Private Equity in August of 2023.
Also founded in 2013, Monese offers both personal and business accounts that come with a multi-currency debit card suited for traveling. The company also offers international money transfers for both sending and receiving funds. The company is backed by $201 million in funding, having secured its most recent 2022 round from HSBC Ventures, which wrote off its investment earlier this year.
Monese also has a business-to-business arm called XYB. This core-less banking platform, which helps banks and other financial services companies create and launch new financial services solutions, was spun off as a standalone business earlier this year.
For now, it appears that Monese’s two million customers across 30+ countries will remain with Monese. Pockit has said that, while Monese’s 100 employees will join the Pockit team, they will continue to run both Monese and Pockit as two separate brands. Combined, Pockit and Monese will process around $6.52 billion (£5 billion) worth of transactions each year.
At FinovateFall last month, Finovate’s David Penn sat down with Wysh Founder and CEO Alex Matjanec to discuss the concept of micro life insurance.
We’ve highlighted pieces of the conversation below, and included the entire 10-minute video for you to check out the full story.
Tell us a little bit about Wysh and your approach to embedded life insurance.
Alex Matjanec: I think the first thing that surprises most people about Wysh is that we’re actually a life insurance company…. Our product is called Life Benefit, and Life Benefit is micro life insurance that sits on top of their deposit accounts…. We sell the policy to the institution, and they give it as a benefit to their customers or members as a way to differentiate their story beyond just credited interest rate, helping to bring a real protection to that story.
You spoke in the past about the context of the protection offering that Wysh provides. How does Life Benefit extend the capacity for protection.
Matjanec: Today, there is protection being offered… we have deposit insurance, FDIC insurance, overdraft protection, fraud protection. The issue with a lot of that protection is that it comes from a world of being in a negative place. What we want to do with Life Benefit is show how protection can help you from a positive direction. As you grow your deposits, you’re growing this policy and benefit along with it. That is how we’re following along with you in your journey. As you’re trying to become financially independent, we’re giving you a little bit of protection along the way.
How does an institution go about adopting Life Benefit?
Matjanec: One of the things we’re really proud about is that it takes less than 45 days to go from contract to launching Life Benefit…. We give you a one-page disclosure that you amend to your existing contract. That allows us to bring this benefit to market without requiring any sign-up, opt-in, or underwriting… That turns this into a 72-hour ability to turn on.
What makes Life Benefit really powerful is when you show the customer the benefit they’ve earned and it growing over time as you’re raising your deposits– much like showing people the value of interest rates or return on investments. That is a little bit of a larger lift, but we’ve made integrations with other cores and banking platforms, as well as built a low-code, no-code option that some of our partners have implemented, and that’s why we’re confident that… it takes less than 45 days to go live.
Catch all of this, and more, including Matjanec’s explanation of how Life Benefit can help firms avoid the “sea of sameness,” as well as a discussion on the tool’s affiliate offering, and the company’s future plans, in the full video below.
Enhancing financial inclusion with micro life insurance
