This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Point of sale lending company Financeitteamed up with ServiceTitan this week to help Canadian home service contractors offer their homeowner clients immediate, integrated financing options.
“Alleviating home renovation debt and accelerating the home improvement business is an important focus for Financeit,” said the company’s Founder and CEO Michael Garrity. “Through this partnership, we’re providing ServiceTitan’s Canadian customers an integrated and efficient way to finance any project quickly and hassle free, beneficial to both homeowners and contractors.”
ServiceTitan is an all-in-one software solution for home services businesses such as residential HVAC, plumbing, and electrical. The company’s tools range from client scheduling and service dispatching to accounting, payroll, marketing, and more.
The Financeit integration, which taps Financeit’s payment plans, will help ServiceTitan’s contractor clients close larger deals more easily, as well as sell upgrades and higher-end products.
Financeit made its U.S. debut at FinovateFall 2013 in a joint demo with fellow Finovate alum FIS. In 2017, the company closed an investment round with Goldman Sachs that gave the financier a majority stake in the Toronto-based fintech.
Founded in 2011, Financeit has amassed more than 7,000 merchant partners and processed more than $3 billion (C$3.6 billion) in loan applications. The company has raised $38.4 million.
Financial services democratization company LenddoEFL (a merger of Entrepreneurial Finance Lab and Lenddo) appointed Paolo Montessori as CEO this week. Montessori, who has served as Lenddo’s Chief Operating Officer since 2015, is taking over the role from Richard Eldridge, Lenddo co-founder.
Paolo Montessori
Prior to his work at Lenddo, Montessori was CEO of mobile financial services software developer eServGlobal. In all, he has more than 20 years of multinational experience in financial services, IT, and telecom.
“Paolo has been working closely with me over the last 4 years as COO and has demonstrated all the qualities the organization needs to grow in 2019 and beyond. With his experience in the fintech sector in emerging markets, as a previous CEO of a listed company and his intimate knowledge of LenddoEFL, I am confident that Paolo will take the company to the next level”, said Richard Eldridge, who is staying with the company in a non-executive capacity.
LenddoEFL was formed in 2017 as the result of a merger between psychometric credit scoring company Entrepreneurial Finance Lab (EFL) and alternative credit scoring company Lenddo. EFL showcased its credit scoring tool at FinovateAsia 2012 in Singapore.
Through its efforts to make financial products available to 1 billion people across the globe, LenddoEFL has provided credit scoring and verification to 50+ financial institutions, helping them lend in excess of $2.5 billion to 8+ million people.
Kazakhstan-based Eurasian Bank has signed with Fiserv to streamline and automate its cash management processes with technology from Fiserv, reports Henry Vilar of Fintech Futures (Finovate’s sister publication).
The bank is implementing a range of cash and logistics solutions to enable web-based cash supply chain management and provide real-time visibility into cash needs.
This can allow the bank to centralize currency management, giving the bank a unified view of cash needs “rather than needing to piece together multiple sets of information.” Staff can then more accurately forecast cash needs across the bank’s ATM and branch network based on customer demand.
“Kazakhstan has a cash-based economy, and our customers have to be able to reliably access cash in order to conduct their daily lives,” said Natalia Iliyashenko, head of operations at Eurasian Bank. “With Fiserv, we will be able to gain a better view of where cash is across our entire network, so we can make sure money is available when and where our customers need it.”
“Access to cash is a defining component of banking convenience for Eurasian Bank customers,” said Lee Cameron, managing director of EMEA at Fiserv.
“Being able to optimise cash levels at our branches and self-service devices allows us to reduce our overall operating expenses,” continued Iliyashenko.
When cash sits idle in a bank or in a self-service device, like an ATM, it is costly for the financial institution because that money cannot be used for another purpose, such as funding a consumer loan.
Yet if there is not enough cash in the device for a customer to make a withdrawal, there is increased risk that a customer will take their banking business elsewhere. Through technology, banks can make certain the right supply of cash is available at branches, ATMs or any other self-service devices.
Fiserv recently appeared on the FinovateSpring 2018 stage alongside Samsung SDS, where the two showcased how Samsung SDS integrates its biometric authentication and collaboration solutions into Fiserv’s Commercial Center: Security (CC:S) to create a more secure and convenient digital banking experience. Some of the company’s recent partners include Eurasian Bank, NBT Bank, and Hellenic Bank.
Token.ioTeams Up with Omnio Group to Boost Open Banking.
Financeit to Power Mobile POS Financing for ServiceTitan.
ExpensifyIntegrates with Southeast Asia Ridesharing Company Grab.
Around the web
The Five Minute Founder podcast interviews Jake Tyler, Finn AI CEO.
STRANDS and adorsys expand their partnership for digital transformation for global financial services.
Signifyd to power fraud protection for Solupay’s NetSuite SuitePayments.
KonyshipsKony Quantum for Microsoft Azure and Kony DBX digital banking suite on Kony Quantum for Azure.
Connect Financial Software Solutions partners with CuneXus to offer the CuneXus perpetual loan automation platform to its credit union clients.
Georg von Brevern joinsIxaris as Chief Legal and Compliance Officer.
Telenor to acquire majority stake in the Finnish telecom operator DNA.
CrypteriumlaunchesCrypterium SX, an AI-based system that ensures all transactions get the best exchange rates available.
Omnio Group and Token.iopartner to deliver open banking and PSD2 compliance to Omnio’s financial institution customers.
Raiffeisen Bank International partners with Feedzai to bring advanced ML to European banking to fight fraud.
Jack Henry’s ProfitStarsunveilsGladiator Total Protect, a suite of managed IT, network security, and compliance services to enhance banks’ cybersecurity and compliance management.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Financial services startup SoFi is building out its insurance offerings with the help of two insurtech startups.
The San Francisco-based company teamed up with Lemonade and Root, adding three types of insurance to the company’s existing portfolio. An integration with New York-based Lemonade will provide home and renters insurance, while Ohio-based Root will offer an auto insurance option.
Until this month, SoFi’s insurance offering was limited to life insurance, a product made possible through a partnership the company initiated in 2018 with California-based Ladder.
“Protecting yourself and your assets is a critical and often overlooked piece of your overall financial well-being,” said Anthony Noto, SoFi CEO. “People come to SoFi to get their money right, and we’re pleased to now provide them with more tools to be able to do so by partnering with companies that share our values in ease of use, transparency, and efficiency.”
The new insurance offerings aim to be simple to understand and transparent about pricing and benefits, without agents, middlemen, or phone calls. SoFi said that its client base requested more affordable insurance offerings. Over the past year, the company counted 8,000 conversations between financial planners and under-insured or uninsured clients.
Lemonade uses AI to craft an insurance policy tailored to each customer. With the company’s chatbot interface, users can select and start their coverage in 90 seconds. The charge is structured as a flat fee– homeowners insurance starts at $25 per month and renters insurance starts at $5 per month– and claims are paid in three minutes.
With Root’s auto insurance, drivers can potentially save up to 52% over their current coverage. The company uses data from clients’ smartphones to measure driving behavior and habits, offering better rates to better drivers. “Our priority at Root is to put the power back into consumers’ hands by making auto insurance clear and understandable,” said Alex Timm, Root Insurance co-founder and CEO. “We’re excited to partner with the SoFi team as a means for members to have access to more affordable, accurate and fair auto insurance.”
To boost interest in its existing life insurance product, SoFi announced it is offering $25 for life insurance applicants to invest in stocks, ETFs, or SoFi’s roboadvising. This comes as a response to research findings that indicate that millennials are misinformed about the costs and benefits of life insurance.
Founded in 2011, SoFi offers a range of millennial-focused financial products and resources. SoFi’s addition of the new insurance offerings “fulfills its ability to offer members every financial product they may need at any stage of life.”
At FinDEVr New York 2017, the company gave a presentation in combination with Quovo titled How Quovo and SoFi Perfected Bank Authentication. SoFi has raised $2 billion from 29 investors across 11 rounds of funding.
U.S. peer-to-peer lending pioneer Lending Clubclosed the doors on its in-house small business lending operation. The good news is that it opened a window for small business clients through a round of partnerships.
Opportunity Fund, a non-profit small business lender; Funding Circle, one of the largest alternative small business lending platforms in the U.S.; and Lending Club have teamed up to offer Lending Club’s small business clients access to credit. Businesses can now borrow up to $300,000 for rates as low as 5%.
“With partners like Opportunity Fund and Funding Circle, we’re creating an ecosystem where LendingClub’s members can take advantage of additional services from trusted providers that can help them generate more savings,” said Scott Sanborn, CEO of LendingClub. “This enables us to both deliver greater value to our applicants and capture a new revenue stream for LendingClub, while further simplifying our business and setting the stage for more partnerships and innovations for Club Members.”
Opportunity Fund will leverage LendingClub’s online application technology to provide prequalified offers to underserved small businesses, while Funding Circle will apply its credit assessment process to fund loans for established small businesses. Overall, the three will be able to serve a broader range of applicants, including those that may have previously been rejected because of limited credit, including businesses owned by minorities, women, and immigrant entrepreneurs.
Lending Club entered the small business lending market in 2014, before the company’s original CEO, Renaud Laplanche, resigned in 2016 amid accusations of loan-documentation errors.
Founded in 2006, Lending Club demoed at FinovateSpring 2009 and at the inaugural Finovate in 2007. The company went public in 2015 and today has a market capitalization of $1.46 billion.
Ixarisadds new Chief Legal and Compliance Officer Georg von Breven and Commercial Director Sean Ashton.
FICOunveils the latest version of its Decision Management Platform, FICO DMP.
Visalaunches a suite of beta APIs and tools to help developers design and test payment solutions.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Today is Earth Day, and what better way to celebrate than to take a look at fintechs helping out the environment by promoting eco-friendly habits. Here we feature companies with technology that saves trees by reducing the amount of paper used in the industry.
We’ve rounded up a handful of environmentally friendly fintechs in three categories: digital invoicing, paper-free mortgages, digital receipt printing, and paperless onboarding.
Digital invoicing
By taking the invoicing process digital, small businesses not only save paper, they can also save time and potentially receive payment faster, freeing up working capital they can put back into their operations.
Paper.id provides SMEs with invoicing tools and payment integration. The company offers tools to help businesses issue their invoices digitally and receive payment via electronic payment methods. Paper.id demoed at FinovateFall 2018
Charlie-India’sInvoicing Hub is a white label e-invoicing platform for banks and service providers. The tools allow SME bank clients to send, view, process, and pay their invoices within the bank’s online interface. Charlie-India demoed at FinovateEurope 2018.
Tradeshift offers an e-invoicing service that connects companies with suppliers, customers and partners. Among the applications available on the platform are e-invoicing, electronic purchase orders, and automated document validation. Tradeshift demoed at FinovateEurope 2012.
Paper-free mortgages
Mortgage technology is one of the last frontiers in fintech. Regulation and oversight have made the home-buying process somewhat resistant to disruption. In the past few years, however, we’ve seen a handful of startups working to digitize the mortgage process, removing the need for hundreds of sheets of paper required to close a home loan.
Namaste Credit is an India-based startup that serves as an online marketplace for mortgage loans. The service connects borrowers with relevant lenders to help them find the loan that best suits their circumstance. Namaste Credit demoed at FinovateFall 2018.
Tavant Technologies offers VELOX, a suite of digital products ranging from searching for a home to closing on the loan. VELOX completely automates the process, making compliance more efficient and reducing the need for paper. Tavant Technologies demoed at FinovateSpring 2017.
Roostify seeks to give consumers a better way to find and purchase a home. The company’s digital platform offers everything from digital customer onboarding to transparent, digital fulfillment to help lenders offer their clients a more efficient mortgage borrowing experience. Roostify demoed at FinovateSpring 2018.h
Digital receipt printing
Many retailers ask customers if they want to keep their receipt, but even if the answer is “no” the cashier still prints the receipt and throws it in the trash behind the counter. Digital receipt printing eliminates both the paper– and the awkward line of questioning– all together by sending the customer an email receipt.
Dream Payments’ cloud-based platform offers a mobile POS device that not only accepts debit and credit cards, but also provides analytics, reports, and gives customers digital receipts. Dream Payments demoed at FinovateSpring 2015.
CardFlight offers an API that allows merchants to accept online and offline payments within their own app. The company’s encrypted mobile magstripe reader, combined with its API, offer flexibility while keeping payments– and receipts– digital. CardFlight demoed at FinovateSpring 2013.
ShopKeep’s POS technology takes a merchant’s cash register to an iPad. The register accepts a range of payments, from magstripe, to EMV, to Apple Pay; plus provides inventory management tools and purchase reporting analytics. The company’s mobile checkout flow also offers a paper-free, email receipt option. ShopKeep demoed at FinovateFall 2012.
Paperless onboarding
Considered a must for millennials, paperless onboarding not only speeds up the application process, it also reduces errors, eases compliance, and eliminates the need for in-person bank visits.
Five Degrees specializes in core banking technology. The company’s Matrix offering helps banks provide SMEs a fully automated, paperless loan onboarding experience. The paperless process lowers cost for both parties while expediting funds. Five Degrees demoed at FinovateAsia 2017.
Quadient, formerly GMC Software, helps organizations create a better customer experience. The company’s Mobile Advantage solution is an omni-channel tool that offers digital statements and billing, paperless onboarding, and client e-signature. In addition to improving the customer experience, this combination speeds up workflows and reduces error. Quadient demoed at FinovateFall 2017.
Mitek combines digital onboarding with identity verification tools. The company helps banks authenticate an applicant’s ID document and combines this with additional identifying paperwork. The supplemental documents not only verify the customer’s identity, but also provide additional information that can be used in loan underwriting to create a more complete picture of the applicant’s financial state. Mitek demoed at FinovateFall 2017.
Citiintroduces biometric authentication for institutional customers in the APAC region.
With its IndiVideo solution, BlueRush and Chilean partner, Kunder, winBest Financial Services Online Video at the 2019 Internet Advertising Competition awards.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Small business financial services tools provider Waveannounced this week it partnered with Visa to help small business owners iron out their cash flow.
The two have teamed up to launch Instant Payouts, a tool that allows businesses to access the money they’ve earned as soon as they’ve earned it. Without having to wait for typical payment processing times, small businesses can use their funds immediately to grow their businesses or pay invoices.
“Small businesses depend on cash flow to survive,” said Les Whiting, Chief Financial Services Officer at Wave. “Often they have to wait two banking days or more for their payments to process through traditional banking methods.”
Instant Payouts integrates Wave’s invoicing and accounting tools with Visa Direct to give small business clients access to funds when they need them– even in the evening, on weekends, and on holidays. With Instant Payouts, customers with Visa and Mastercard debit cards will have access to their funds within 30 minutes.
Wave’s Instant Payouts interface
Businesses that choose to take advantage of Instant Payouts can redeem any amount of pending funds over $25. Wave charges a 1% fee for the service in addition to its standard processing fee of 2.9% + $0.30.
Instant Payouts was launched in beta to a select group of small business owners at the start of 2019. Wave will roll it out to more clients in the U.S. and Canada later this year.
Founded in 2010 and headquartered in Canada, Wave demonstrated its financial management software for small businesses in conjunction with Royal Bank of Canada at FinovateFall 2017.
Core banking platform provider Ohpenannounced this week that NPM Capital has acquired a 35% stake in the company.
This news comes after Ohpen’s first investor, Amerborgh, sold its stake in the company to NPM Capital in order to free up capital to finance future projects.
Rutger Ruigrok, Managing Director at NPM Capital, described Ohpen as “one of the most promising technology companies that we have seen in the past few years.” He continued, “We are impressed with their achievements over the past ten years: a cloud native core banking engine, an impressive customer base, and a wonderful foundation for further growth. We are very enthusiastic about now being part of their future.”
Having a new shareholder on board, Ohpen CEO Matthijs Aler explained, broadens the company’s options to finance future growth. “With Amerborgh and now also with NPM, we have a well-balanced long-term shareholder structure that enables Ohpen to realize all of its future growth ambitions. I am really looking forward to working with the NPM team,” he said.
Founded in 2009, Ohpen offers a cloud-based core banking API that gives banks a different option from legacy systems. At FinovateFall 2012, the company explained its multilingual cloud banking platform. In December of last year, Ohpen launched its new API portal.
With 120 employees across the Netherlands and Spain, Ohpen has raised $45 million. Matthijs Aler joined the company earlier this year as CEO.
defi SOLUTIONSdelivers loan origination system to First Investors Financial Services.
Trusha Patel joinsCrediVia as Chief Business Development Officer.
Onfidowelcomes Kevin Goldsmith as Chief Technology Officer and Thomas Ammirati as Chief Revenue Officer .
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
