Author: Julie Muhn (@julieschicktanz)

BlueVine Brings in $60 Million

BlueVine Brings in $60 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: BlueVine, Funding

Alternative lending company BlueVine just landed $60 million in equity funding. The Series E round brings its total financing to $578 million, comprising of $173 million in equity and $405 in debt.

Participating in today’s round are Menlo Ventures, which led the round, new investor SVB Capital, and all major existing investors. BlueVine will use the funds to support and expand its products and to boost its R&D team. “This new investment gives us a stronger market position, as we pursue bigger plans for reaching even more small business owners and expanding our offering,” said BlueVine CEO and founder Eyal Lifshitz.

BlueVine was founded in 2013 and has made its name as a player in invoice factoring. The company issues cash to small businesses in exchange for the sale of their unpaid invoices at a discount. Businesses can receive up to $5 million in working capital in a matter of days to help manage operations.

Tyler Sosin, partner at Menlo Ventures said, “The company has demonstrated dramatic, sustainable growth and has proven that there is enduring value in developing a comprehensive offering of credit products that small and medium sized businesses can use throughout their lifetimes.” He also commented on BlueVine’s potential growth, adding, “we believe there is a real opportunity for BlueVine to emerge as the dominant, multi-billion dollar fintech company.”

Today’s funding comes just one month after BlueVine received a $200 million credit facility from Credit Suisse. At the start of 2018, the company doubled its invoice factoring credit line to $5 million, just after increasing its business line of credit limit from $150,000 to $250,000 in 2017.

BlueVine demoed its small business working capital solution at FinovateFall 2014. Since inception, the company has funded more than $900 million in loans for more than 10,000 customers, 80% of which are return customers.

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Signicat and Mitek Team Up to Improve Digital Onboarding

Signicat and Mitek Team Up to Improve Digital Onboarding
By Julie Muhn (@julieschicktanz) Posted on
Categories: Mitek, Signicat

Identity assurance provider Signicat and digital identity verification company Mitek partnered to improve the onboarding experience for end customers while helping banks comply with new regulations.

The two teamed up to create a solution specifically for European-based financial services providers, who are facing a handful of new and ever-changing regulations, including PSD2, AMLD5, and eIDAS. The new tool, available in Signicat’s Digital Identity Platform, integrates Mitek’s Mobile Verify solution to authenticate identity documents presented during a remote, mobile onboarding process. To comply with AML and KYC regulations, Mitek’s Mobile Verify captures an image of the identity document to ensure its authenticity.

“Partnering with Mitek enables us to jointly offer European financial services institutions a customer on-boarding solution that is 100% online,” said Gunnar Nordseth, CEO at Signicat. “The partnership is designed to remove friction from the customer on-boarding process to ensure financial institutions can effectively compete in the marketplace.”

Nordseth also noted that Signicat clients can now simultaneously benefit from Mitek’s Mobile Verify solution, as well as Signicat’s secure authentication, electronic signing, and sealed document archival. Signicat also offers an eID hub, which consists of a wide variety of third party eID providers covering regions all over the world.

Founded in 2007, Signicat demoed Signicat Assure and Signicat Sign at FinovateEurope 2017. Assure combines national e-identities, commercial e-identities, and multiple other methods that offer a fast way to verify the customer’s identity for onboarding. Sign is a digital signature solution that ensures the origin and integrity of the document while maintaining non-repudiation from the sender. In January of this year, the company closed a $2 million funding round, bringing its total financing to $3.9 million.

Mitek is publicly traded on NASDAQ under the ticker “MITK” with a market cap of $307 million. Mitek was founded in 1985 and is headquartered in San Diego, California. The company most recently demoed its MobileVerify solution at FinovateFall 2017. Last month, Mitek acquired artificial intelligence and image analysis company A2iA for $49.7 million.

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Token Facilitates Direct Payments for Caxton FX

Token Facilitates Direct Payments for Caxton FX
By Julie Muhn (@julieschicktanz) Posted on
Categories: CaxtonFX, Token

Cross-border payments platform Caxton is piloting a new direct payments solution for clients of its multi-currency prepaid MasterCard. The new capabilities come courtesy of a partnership with open banking champion Token.

The integration allows Caxton clients to use the Caxton mobile app to load their prepaid cards directly from their bank account. By leveraging Token’s open banking expertise, Caxton is able to remove friction, lower costs, and benefit from instant money movement.

The company facilitates this direct connection by forgoing debit card rails and instead routing customer payment information using a Smart Token, which transmits only a representation of cardholder data and not the data itself. Token is integrated with Caxton’s existing infrastructure to offer the company direct access to their clients’ banks, given their permission.

In the press release, Marten Nelson, co-founder and CMO of Token said, “Our partnership with Caxton reinforces our commitment to all players in the digital ecosystem; we exist to help them lower costs and deliver an amazing, market-differentiating experience to their customers, through a rich, yet simple integration.”

Caxton has 750,000 private and business customers who processed 7.3 million transactions last year using its multi-currency cards and international bank transfer services. The company plans to begin the rollout of the new service in the third quarter of this year.

Founded in 2003, Caxton leverages the blockchain to help users send cross-border money transfers with less friction and at a lower cost than with traditional banks. At FinovateEurope 2017, the company demoed its Firebird Payment Engine, a private blockchain ledger that facilitates payments without the need for an API. Last June, Caxton debuted multi-currency accounts for SMEs.

Headquartered in California, Token offers banks, payment service providers, developers, and merchants access to the benefits of open banking. The company helps organizations securely connect to their customers’ bank account information in a secure and compliant manner using its Smart Token technology. The company showcased its PSD2 compliant solution at FinovateEurope 2017 in London. Last month, the FCA granted Token authorization for open banking payment and information services.

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Gusto Launching its Own Yelp for Accountants

Gusto Launching its Own Yelp for Accountants
By Julie Muhn (@julieschicktanz) Posted on
Categories: Gusto

Online payroll and HR services provider Gusto is unveiling its Partner Directory today, a directory of accounting firms suitable for small and medium-sized businesses.

The directory offers Yelp-like reviews of accountants and is available to any business– both Gusto customers and non-customers– for free. The tool allows businesses to filter the search results by geography, services offered, software expertise, and industries served.

“We noticed a growing trend of accountants that are competing effectively against larger accounting firms by advising small businesses more holistically. These accountants are differentiating and ‘future proofing’ their practices by offering non-traditional services like benefits and human resources for their clients,” said Gusto Senior Product Manager Mike Lyngaas. “Recommendations for accountants and trusted partners are one of the top requests we get from small businesses, and the Partner Directory allows modern accountants and entrepreneurs to grow their businesses together.”

To curate the directory, Gusto screened more than 4,000 of its accounting firm partners for their payroll expertise, benefits and HR services, ability to help businesses claim the federal R&D tax credit, or even acting as an outsourced CFO. The company adds more accountants regularly to both its list of partners as well as to the directory.

Accountants can leverage Gusto’s technology to run payroll or provide benefits and HR services for all of their business clients. They can also tap into Gusto’s relationships with third party software providers.

Founded in 2011 as ZenPayroll, Gusto serves over 60,000 companies across the U.S. and has offices in San Francisco and Denver. At FinovateSpring 2014, Gusto CEO Joshua Reeves showcased the company’s payroll solution. In March, the company launched a freemium model for its payroll solution and in February was highlighted in Forbes for its diversity efforts. Of the company’s 525 employees, 51% are women.

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Diebold Nixdorf Brings its Bank-Like Kiosk to Emirates NBD Customers

Diebold Nixdorf Brings its Bank-Like Kiosk to Emirates NBD Customers
By Julie Muhn (@julieschicktanz) Posted on
Categories: Diebold

Diebold Nixdorf announced this week that it partnered with Emirates NBD to bring consumers in the United Arab Emirates access to its digital kiosk that offers a variety of banking services.

The bank has called the kiosk EasyHub, and the capabilities go far beyond a typical ATM. This kiosk allows customers to conduct many of the activities they would typically do in a brick-and-mortar bank, all outside of bank operating hours. Users interact with a video teller and follow written instructions on the screen to sign up for new products and services, apply for and receive a new debit card, update their personal details, request a checkbook, authenticate statements, and even apply for a personal loan.

Diebold Nixdorf’s Vynamic Connection Points, a multi-vendor software allowing for customized applications, is powering the EasyHub kiosk. The device comes with a debit card dispenser, biometric signature pad, document scanner, statement printer, ID reader, cash recycler and coin dispenser, and an NFC reader for contactless transactions.

In a blog post, Abdulla Qassem Emirates NBD group chief operating officer cited EasyHub’s customer-first approach, increased flexibility, and superior service among the benefits of teaming up with Diebold Nixdorf.

Diebold Nixdorf appeared on the Finovate stage alongside Zenmonics at FinovateFall 2014 to showcase an in-lobby terminal. Founded in 1859, the company is partnered with almost all of the world’s top 100 banks and most of the top 25 global retailers. Diebold Nixdorf is headquartered in Ohio and has 23,000 employees across the globe.

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Personetics Accommodates Digital-Only and Challenger Banks

Personetics Accommodates Digital-Only and Challenger Banks
By Julie Muhn (@julieschicktanz) Posted on
Categories: Personetics

Cognitive analytics company Personetics has traditionally served large banks, including six of the top 12 banks in North America and Europe. Today, however, the company launched a new offering that makes its solutions more accessible for smaller digital-only and challenger banks.

The new offering provides a highly customizable, pre-packaged application, lowering barriers for smaller banks to implement AI-powered banking services. Founded in 2010, Personetics leverages predictive analytics to help banks anticipate their clients’ individual needs.

“Personalized and proactive guidance is quickly becoming a must-have requirement for banking, especially for new banks that are built on the promise of a new banking experience,” said David Sosna, Personetics co-founder and CEO. “Our mission is to deliver market-proven engagement and personalization technology that is quick and easy to deploy so digital banks can focus their resources on their go-to-market strategy.”

The implementation, which takes under three months, is designed to work with banks with limited resources. To meet these requirements, the new software package offers:

  • Pre-built banking content: The offering includes hundreds of pre-built insights, financial tips, and personalized advice that the bank can easily modify and control
  • API-first approach: Personetics uses open APIs to integrate AI functionality into a bank’s digital banking experience and allows banks to create their own brand identity and customer engagement strategy.
  • Editing tools: These tools allow the bank to retain control over the content and develop new capabilities to support its own business goals.
  • Fast time-to-market: Personetics delivers a production-level solution in just three months.

Among the first challenger banks to leverage Personetics’ new software package is U.K.-based Tandem Bank, which announced its participation in February. “The Personetics Cognitive Banking Brain provides great AI capabilities with prebuilt insights which enable us to accelerate time-to-market and place personalised highlights in the hands of our customers sooner rather than later,” said Ricky Knox, chief executive at Tandem Bank.

At FinovateFall 2016, Personetics demonstrated its Personetics Anywhere chatbot solution. The company was founded in 2011 and has received $18 million in total funding. Personetics recently onboarded Romania’s Banca Transilvania to offer AI-powered, forward-looking financial guidance to the bank’s clients. The company offers more than 4.3 billion personalized interactions to more than 45 million end customers across the globe.

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Dwolla Launches Start, a Pay-as-You-Go Payment Solution

Dwolla Launches Start, a Pay-as-You-Go Payment Solution
By Julie Muhn (@julieschicktanz) Posted on
Categories: Dwolla

Payments platform Dwolla introduced a new product plan today. It’s called Start, and it offers a white-labeled, out-of-the box way for businesses to send and receive money without a large time or money commitment.

Launching in beta today, Start will complement Dwolla’s other offerings: Scale, which provides a consistent monthly bill with a set number of transactions; and Enterprise, which the company describes as a customizable, “white-glove” approach for complex businesses. Start is differentiated from Scale and Enterprise because it does not lock businesses into contracts, nor does it require monthly minimums. Overall, the new offering helps Dwolla deliver on its commitment of “helping businesses of all sizes start and scale their growth.”

Businesses can integrate their existing app with the Start API or they can use Start’s dashboard, which does not require any coding. After signing up, businesses simply complete AML and KYC checks and can then go live after being contacted by a Dwolla representative.

The beta version of Start is currently being rolled out to select businesses. There is no word on when Dwolla will open the product for a full launch.

Founded in 2008 and headquartered in Des Moines, Iowa, Dwolla offers a white-label payments API that allows firms to credit or debit any U.S. bank account the user has connected. The company integrates with Sift Science to help reduce fraud by leveraging real-time identity verification. And in May of 2017, Dwolla integrated with Plaid to instantly verify and authenticate customers’ bank accounts using tokenization.

The company most recently demoed FiSync at FinovateSpring 2015. Earlier this year, Dwolla closed a $12 million investment led by Foundry Group that brought its total funding up to $51.4 million. Last month, the company partnered with Cryptanite Blockchain Technologies to process their online payments.

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BondIT Integrates Bond Portfolio Solution with FIIG Securities

BondIT Integrates Bond Portfolio Solution with FIIG Securities
By Julie Muhn (@julieschicktanz) Posted on
Categories: BondIT

Fixed income portfolio platform BondIT has initiated a partnership with FIIG Securities. Through the agreement, FIIG will leverage BondIT’s bond portfolio solution for relationship managers.

Australia-based FIIG offers fixed income services for 6,000 clients, managing more than $7.6 billion (AUD 10 billion) in assets. The company will bring BondIT’s bond portfolio solutions to its core investment management platform, SimCorp Dimension, allowing front office users to leverage the technology for new portfolio construction, investment idea generation, relative value analysis, portfolio monitoring, and portfolio optimization.

In the press release, John Prickett, Chief Operating Officer at FIIG Securities described how more investors are interested in the diversification that corporate bonds can bring to their portfolios and that this spike has increased the demand for fixed income and corporate bonds. He added, “The BondIT software will further enhance our offering, pairing the knowledge of our expert team with the latest technology to identify more fixed income opportunities for our clients and help them maximize their investments.”

Powered by machine learning algorithms, BondIT’s tools empower advisors to automate the optimization of fixed-income portfolio creation and management. The technology allows individual investors to select 12 different constraint dimensions to personalize their portfolio. BondIT leverages these data points, combined with AI, to create algorithms that offer flexibility in optimizing risk and returns in non-linear, multi-dimensional portfolio selections.

BondIT’s COO Eran Nachshon debuted the technology at FinovateFall 2016 in New York. The company added $4 million to its Series B round last week, bringing its total funding to $18.2 million. BondIT is headquartered in Herzliya, Israel and was founded in 2012.

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Signifyd Takes in $100 Million in Series D Funding

Signifyd Takes in $100 Million in Series D Funding
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Signifyd

Ecommerce fraud protection provider Signifyd has more than doubled its financing total with a new round of funding today. The company just closed a $100 million Series D round, bringing its total to $187 million.

Leading the round is Premji Invest, with participation from existing investors Bain Capital Ventures, Menlo Ventures, American Express Ventures, IA Ventures, Allegis Cyber, and Resolute Ventures. Signifyd will use the new capital to grow its retail customers.

“Premji invests in private companies with all the necessary ingredients to become thriving stand-alone public companies,” said Sandesh Patnam, lead partner at Premji Invest. He added that his firm is impressed with Signifyd’s growth, company culture, and the breadth of its customers. “More than that,” Patnam continued, “it comes down to the high quality of Signifyd’s innovation and technology. It couldn’t be clearer that guaranteed fraud protection is reaching mainstream adoption, and Signifyd is leading this space.”

Founded in 2011, Signifyd offers fraud protection for ecommerce merchants using technology that leverages machine learning algorithms, user behavior, and data science to identify fraudulent orders. Signifyd reduces merchant chargebacks on fraudulent charges, as well as saves companies money on shipping declined orders. In one case study, the company helped a major retailer realize a return on investment of 3.8 times over three years. Signifyd currently serves 10,000 retailers across the globe including top brands such as Build.com, Helly Hansen, iRobot, Jet, Lacoste, and Wayfair.

Signifyd demoed its chargeback mitigation solution at FinovateSpring 2013. Last month, the company opened its first European office in Spain following a partnership with Magento in February. Signifyd has been named on the Forbes FinTech 50 and was listed among Bloomberg’s 50 Most Promising Startups. Additionally, it has been named a top place to work by Entrepreneur, Inc. Magazine, San Francisco Business Times, and the Silicon Valley Business Journal.

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VASCO Rebrands as OneSpan to Focus on Secure Onboarding

VASCO Rebrands as OneSpan to Focus on Secure Onboarding
By Julie Muhn (@julieschicktanz) Posted on
Categories: Mergers & Acquisitions, OneSpan, VASCO

Business solutions company VASCO is making a major pivot today, along with a fully-fledged rebrand, as well as an acquisition to support the company’s new objectives.

VASCO, now known as OneSpan, has narrowed its focus to become an anti-fraud platform. OneSpan will trade on NASDAQ under the ticker symbol “OSPN.” It is expected to begin trading on Monday, June 4.

OneSpan offers a Trusted Identity platform (TID), an API-based solution that aims to reduce fraud associated with onboarding and transactions while offering an enhanced experience for the end user. TID’s new Intelligent Adaptive Authentication reviews and scores data pulled from user behavior, devices, and transactions to offer a real-time view of user security without interfering with the user experience.

“The launch of our Trusted Identity platform provides a single foundation that spans the needs of our customers today and into the future while our name change underscores a generational evolution in our strategy,” said OneSpan CEO Scott Clements. “We listened closely to the challenges our customers are facing and identified a significant gap between customer needs and solutions available in the market. OneSpan is addressing this gap by delivering a much needed and innovative approach to reducing the billions of dollars banks are losing annually to fraud.”

Bolstering today’s transition is OneSpan’s acquisition of Dealflo for $54.5 million (£41 million). Founded in 2009 and headquartered in the U.K., Dealflo offers configurable onboarding solutions to financial services clients. The company has partnerships with Equifax, TransUnion’s iovation, Mitek, and VASCO’s eSignLive (now OneSpan Sign).

“This acquisition will enable us to grow our subscription revenue and Dealflo’s technology will be a major differentiator for our eSignLive solution,” said Clements. “In addition, Dealflo’s identity verification capabilities will allow us to accelerate the launch of our TID platform based onboarding, identity and anti-fraud solutions.”

Dealflo has operations across North America and EMEA, and is headquartered in London. The Dealflo team will join OpenSpan, working to bring Dealflo’s solutions into new geographic markets.

OneSpan presented as VASCO at FinovateFall 2017 in New York. The company debuted the OneSpan Sign (then eSignLive) Digital Lending Solution. The solution leverages the blockchain and e-signature capabilities to offer a compliant, digital lending solution. Last month, the company teamed up with Finovate alum nCino to offer nCino clients access to an electronic signature solution.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Compass Plus, FICO, Fidor Bank, OneSpan, Signifyd, Tradeshift, VASCO

On Finovate.com

  • Tradeshift Raises $250 Million in Round Led By Goldman Sachs.
  • VASCO Rebrands as OneSpan to Focus on Secure Onboarding.
  • Signifyd Takes in $100 Million in Series D Funding.

Around the web

  • Compass Plus announces new partnership with Payhuddle Solutions in Asia Pacific.
  • FICO to help Raiffeisen Bank accelerate digital transformation.
  • Fidor appoints Adam Woolford as Chief Information 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.

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WorkFusion Closes Add-On Funding Round

WorkFusion Closes Add-On Funding Round
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, WorkFusion

WorkFusion promises what many banks are seeking: to help clients outpace change. And fortunately, the New York-based company has funds to back up that idea. Robotic process automation (RPA) specialist WorkFusion quietly added to the $50 million funding round it received last month. Last week, the company closed on an undisclosed amount of funds from strategic investors including Guardian, New York-Presbyterian, PNC Bank, and Alpha Intelligence Capital.

Pete Cumello, WorkFusion CFO, tells us that the company’s aggregate funding stands at $120 million– and the undisclosed investment boosts the total up over that amount. Cumello also noted that the add-on round added “somewhat” to the company’s value.

WorkFusion’s goal with the new capital is to fuel growth and boost acquisitions. The company was founded in 2010 and offers products for financial services, insurance, and healthcare sectors. Broadly, WorkFusion’s mission is to help firms deal with the rapid rise of AI by reducing the complexity of AI and helping customers exploit the AI opportunity by leveraging products that pair people with the power of robotic software. Specifically, use cases for WorkFusion’s AI-powered RPA include creating a more efficient account opening process, increasing loan booking accuracy, and automating rule-based processes in trade finance.

The company began with a simple question, “What if software could learn to identify high-quality work and manage the people who perform it?” By 2014, WorkFusion had expanded on that idea and at FinovateFall 2014 it demoed Active Learning Automation in New York. The company’s goals for 2018 and beyond are to make software-as-a-service automation products that offer elastic, on-demand capability with the Automation Cloud.

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