Author: Julie Muhn (@julieschicktanz)

Lidya Scores $6.9 Million in Series A Investment

Lidya Scores $6.9 Million in Series A Investment
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Lidya

Nigeria-based digital bank Lidya landed a fresh round of funding this week. The bank pulled in a Series A round totaling $6.9 million, an amount that marks the round as one of Nigeria’s largest tech investments. Combined with the $1.25 million Lidya received last March, today’s round brings the bank’s total funding to $8.2 million.

Omidyar Network led the round and was joined by new investors, Alitheia Capital, Bamboo Capital Partners, and Tekton Ventures; as well as existing investors Accion Venture Lab and Newid Capital. Ameya Upadhyay, Principal at Omidyar Network, is slated to join Lidya’s board of directors.

“We are excited by the overwhelming support from the investor community, which signals a great confidence in our business model and team,” said Ercin Eksin, Lidya co-founder. Lidya will use the funds to expand its loan book, scale in Nigeria, enter new markets in Africa, and onboard more employees, specifically data scientists and engineers.

“Access to flexible, affordable credit is at the crux of unlocking growth in the MSME sector. Lidya is addressing that by using smart algorithms to analyze transaction data from small businesses to assess their creditworthiness,” said Upadhyay. “This data-driven approach allows the company to offer loans without the need of hard collateral– a requirement that has scuttled MSME financing in Africa. In the process, Lidya gathers insights that help expand its product portfolio to become a holistic partner to small businesses.”

Eksin demonstrated Lidya’s credit scoring algorithm at FinovateFall 2016. The demo showcased how the bank helps small-to-medium-sized enterprises (SMEs) share or upload their bank data to manage cash flow, customer data, and create and send digital invoices. To help businesses smooth lumpy cashflow held up in invoices, Lidya lends from $500 to $50,000 without requiring the business to visit a physical branch.

Since it was founded in 2016, Lidya has extended 1,500 loans to help SMEs in industries ranging from farming to technology. The bank was recently accepted into MasterCard’s Start Path Program, an accelerator program that supports the next generation of commerce solutions.

Interested in learning more about the state of fintech in Africa? Check out FinovateAfrica, held in Cape Town, South Africa on November 27 and 28, 2018.

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Mortgagetech Magnates Ellie Mae and Blend Team Up

Mortgagetech Magnates Ellie Mae and Blend Team Up
By Julie Muhn (@julieschicktanz) Posted on
Categories: Blend, Ellie Mae

Mortgagetech company Blend and mortgage finance platform provider Ellie Mae have joined forces this week, as reported by American Banker. Through the partnership, Blend is leveraging Ellie Mae’s electronic disclosure delivery, a part of the company’s Encompass mortgage solution.

The integration will augment Blend’s self-service mortgage platform by offering a more seamless user experience. Lenders who use Ellie Mae’s Encompass loan origination solution can create and deliver electronic disclosures through Ellie Mae’s document preparation software. The electronic delivery will not only facilitate the e-signature process, it will also enhance compliance by leaving an audit trail.

Ellie Mae’s Encompass mortgage solution helps lenders originate more loans with lower origination costs and a faster time to close. Using the full Encompass solution, Ellie Mae helps lenders save an average of $967 per loan in operational improvements, such as saving time and postage from having to deliver disclosures via snail mail. Blend estimates its integration of Ellie Mae’s electronic disclosure delivery will save an average of $15 per loan.

Earlier this spring, Pacific Union Financial partnered with Ellie Mae to leverage the full Encompass mortgage management solution, enabling customers of both Pacific Union and Ellie Mae to deliver loan data and documents from Encompass to Pacific Union more efficiently and in real time.

Founded in 1997, Ellie Mae demonstrated Encompass Consumer Connect at FinovateSpring 2017. The online lead generation tool turns consumer interest into a mortgage application by letting the borrower complete an application, provide and receive information, and order services from a single platform. During the demo, presenter Jonas Moe, SVP of Market Strategy, demonstrated the company’s API by showing off an Alexa integration with Encompass Plus– asking questions such as, “What loans have rate lock expirations this week?” and “Search for a better rate.” Ellie Mae is headquartered in California. Jonathan Corr is president and CEO.

Blend demoed its data-driven mortgage at FinovateSpring 2016. The company was recently recognized for its achievements in the mortgage industry at the MBA Insights Tech All-Star Awards and was also featured on the Forbes Fintech 50 list. Last summer, Blend pulled in a $100 Series D investment from Greylock, Emergence Capital, Lightspeed Ventures, Nyca Partners, and 8VC, bringing its total capital to more than $160 million.

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WeInvest Raises $12.3 Million for its WealthTech Platform

WeInvest Raises $12.3 Million for its WealthTech Platform
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, WeInvest

B2B digital wealth management solutions provider WeInvest has taken in an investment of its own today. The Singapore-based company just closed on $12.3 million in Series A funding.

The financing comes from a handful of angel investors, along with London-based Schroders, which acquired a minority equity stake in the company. This is WeInvest’s first major funding after an undisclosed round in 2017.

In an interview, WeInvest Co-Founder and CEO Bhaskar Prabhakara told DEALSTREETASIA that the funds will be used to promote product development and to “expand the functional range of [the] platform across regional regulatory requirements, business models, and products.”

Unlike other models, WeInvest’s roboadvisory services empower traditional advisors with tools to help them compete with pure roboadvisory plays. WeInvest has three main products. TrackWealth offers simplified account aggregation and wealth analysis for advisors to provide their clients. GrowWealth, provides goal-based and thematic investing roboadvisory services that advisors can offer their self-directed clients. And AdviseWealth offers a service for relationship managers.

Founded in 2015 and with 38 employees, WeInvest offers its services in Malaysia, Indonesia, Hong Kong, India, and Dubai. Prabhakara recently presented AdviseWealth at FinovateMiddleEast 2018 in Dubai. WeInvest has 5 clients and anticipates it will double that number by the end of the year.

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Watch Demo Videos from FinovateSpring for Free

Watch Demo Videos from FinovateSpring for Free
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinovateSpring 2018

If you’re bummed because you missed out on FinovateSpring– or just missed a demo session to take a conference call– we’ve got you covered! Starting today, you can watch all of the FinovateSpring demos for free on Finovate’s video archives.

Of course, there’s nothing like seeing the demos live and in person– networking opportunities included– but this is the next best thing. To start you off with a small sample, here are the five companies whose demos won Best of Show (as voted by the audience).

AlphaRank

Conversation.one

Dynamics

Kasasa

Trusona

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Mitek Acquires A2iA for $49.7 Million

Mitek Acquires A2iA for $49.7 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Mergers & Acquisitions, Mitek

Digital identity verification company Mitek is bolstering its capabilities this week with the acquisition of A2iA, an artificial intelligence and image analysis company, for $49.7 million. This is Mitek’s second acquisition in under a year– last October the company acquired ICAR for $15 million.

A2iA leverages AI and machine learning to create algorithms that process millions of checks, IDs and documents daily for financial services companies, retailers, mobile operators, healthcare providers, and governments. The company, which pulled in revenues of more than $15 million last year, works in more than 42 countries and 11 languages. A2iA’s software is used by top U.S. banks as well as all banks in the U.K., 90% of French banks, and 90% of Brazilian banks. It is leveraged by more than 75,000 ATMs worldwide.

In the press release, James B. DeBello, CEO and Chairman of Mitek said that he anticipates the acquisition to help Mitek get ahead in the industry. He added, “Mitek’s Mobile Verify product will be able to read government-issued identity documents even more accurately and quickly than today, and authenticate them using A2iA’s advanced AI algorithms, thereby increasing companies’ trust that their customers are who they say they are.” The move will also double the size of Mitek’s Labs team, a group that has been behind each of Mitek’s 39 patents.

Mitek software is deployed in 6,100 U.S. banks, including all 10 of the largest U.S. financial institutions, and is used by more than 80 million end consumers. The company is publicly traded on NASDAQ under the ticker “MITK” with a market cap of $305 million. Mitek was founded in 1985 and is headquartered in San Diego, California. The company most recently demoed its MobileVerify solution at FinovateFall 2017. Earlier this month, Mitek made headlines when it agreed to deliver digital KYC for cryptocurrency broker BTCDirect.

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GoodData Launches GoodData Spectrum UI Tools

GoodData Launches GoodData Spectrum UI Tools
By Julie Muhn (@julieschicktanz) Posted on
Categories: GoodData

Data analytics and insights company GoodData has launched a new tool today that will help businesses transform their user interface. GoodData Spectrum is a set of three user interaction frameworks that deliver insights to help support decision-making and change how organizations use analytics.

GoodData Spectrum consists of three frameworks:

  • GoodData.UI offers turnkey, commercial, open source, and custom components organizations can use to build their own custom apps.
  • KPI Dashboards helps organizations track KPI changes over time and receive alerts when KPIs reach a certain threshold.
  • Analytic Designer allows organizations to explore curated datasets and discover insights.

“Analytics within organizations today is no longer about one-size-fits-all with low adoption rather, analytics is now critical to everyday business success,” said Roman Stanek, CEO at GoodData. “With GoodData Spectrum, we now enable data and insights to support the complete range of business decisions.”

In the press release, Cody Alton from GoodData client Zalando said that the new tools help his organization design with end users in mind. He added, “With GoodData Spectrum we can roll out customized features based on our product vision and roadmap to ensure we exceed the needs of our customers.”

Founded in 2007, GoodData works with 70,000 companies across the globe, including 8 of the 10 largest brands. The company’s business intelligence solutions reach more than 1 million end users. At FinovateFall 2017, GoodData showcased its Insights PaaS. Last month, the company made its first foray into insuretech with the launch of two new solutions, Underwriting Insights and Claims Insights

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ShopKeep Launches on Android to Broaden Hardware Options

ShopKeep Launches on Android to Broaden Hardware Options
By Julie Muhn (@julieschicktanz) Posted on
Categories: ShopKeep POS

Point of sale technology provider ShopKeep is offering its small business clients more options this week. That’s because the company launched an Android version of its software.

The company’s plan with the new Android version of the ShopKeep Register app is to broaden the hardware choices for small and independent business owners. ShopKeep currently serves more than 25,000 independent retailers and restaurants and aims to lower startup costs for entrepreneurs, who can now buy a turnkey hardware solution for $499.

Until today’s announcement, the New York-based company had deployed its app exclusively on Apple’s iOS platform. ShopKeep, which originally partnered with First Data in Q1 2017, is piloting the Android launch on First Data’s Clover Mini device. It will be available on the larger Clover Station in the third quarter of this year. ShopKeep also plans to leverage additional partnerships to deploy its Register app on other devices later this year.

“Extending ShopKeep to Android-based hardware platforms ensures that both our customers and partners have access to the full range of device options available in the market,” said Michael DeSimone, ShopKeep CEO. “We are very excited to deploy our solution on the Clover platform as a first step in expanding the availability of ShopKeep in the market, and plan to extend our reach onto several hardware platforms through the back half of 2018.”

ShopKeep founder Jason Richelson demoed the point-of-sale platform at FinovateSpring 2012. The company supports more than 289 million transactions annually and has processed $7 billion in transaction volume since it was founded in 2008. Last month, ShopKeep expanded its payment processing capabilities to include TSYS‘ ProPay.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Bluefin Payment Systems, Conversation.one, GoodData, identitii, Interactions, QuantConnect, ShopKeep POS, Temenos

On Finovate.com

  • Conversation.one Among U.S. Fintechs to Join Finastra’s FusionFabric.cloud Platform.
  • ShopKeep Launches on Android to Broaden Hardware Options.
  • GoodData Launches GoodData Spectrum UI Tools.
  • identitii Forges New Partnership with Robot Automation Specialist Blue Prism.

Around the web

  • Interactions unveils enhanced IVA platform to deliver the omnichannel intelligent virtual assistant capabilities.
  • QuantConnect users now have access to Algorithm Framework, a tool that breaks down algorithmic trading strategies into core modules to make code reusable in the QuantConnect community.
  • Temenos announces launch of its Front Office Suite.
  • Bluefin partners with Paya to provide PCI-validated point-to-point encryption.

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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Personal Capital Exceeds $7 Billion AUM, Lands $15 Million Credit Extension

Personal Capital Exceeds $7 Billion AUM, Lands $15 Million Credit Extension
By Julie Muhn (@julieschicktanz) Posted on
Categories: Personal Capital

Wealth tech player Personal Capital surpassed a growth milestone this week, reaching $7 billion in assets under management. The company also announced it received a $15 million credit extension from Silicon Valley Bank, adding to the $25 million credit the bank offered Personal Capital in 2016.

Personal Capital balances its high-touch digital advisory services with freemium tools that help users track all of their investments in one place and measure their progress against their retirement goals. The company also offers access to registered personal financial advisors who offer tailored investment advice for a fee. While this model seems to have scaled relatively well since Personal Capital’s launch in 2009, the company’s assets under management have not grown as quickly as its competitors Betterment, which currently has $13.5 billion under management, and Wealthfront, which has $10 billion under management.

This news comes as the company wraps up one year of operation under new CEO, Jay Shah, who took over operations from the company’s founder and original CEO, Bill Harris. Before his appointment, Shah served in the roles of Personal Capital’s chief information officer and chief operating officer.

“Personal Capital was built on the idea that transparency and a consumer’s ability to have a holistic view of their finances can transform their financial life,” said Shah. “Our team has worked hard to make sure Americans have the visibility that is necessary to realize their investing, spending and saving goals. As Registered Investment Advisors, we remain committed to putting clients first and advocating for an industry-wide fiduciary standard. Clearly, that is resonating.”

Founded in 2009, Personal Capital most recently presented at FinovateSpring 2014 where it debuted One Click Investment Portfolios. Earlier this spring, the company began offering socially responsible tools that make it easy for investors to put money into causes that matter to them. Personal Capital has raised $240 million.

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Plaid Goes International

Plaid Goes International
By Julie Muhn (@julieschicktanz) Posted on
Categories: Plaid

Plaid, a company that has been called the plumbing of fintech, offers technology that allows apps to connect to users’ bank accounts. Today, the San Francisco-based company is making its first move to international territory– Plaid is launching in Canada.

Not only is Plaid’s full API suite available to Canadian developers, the company also added coverage for the region’s largest financial institutions, including Royal Bank of Canada, Scotiabank, TD Canada Trust, Bank of Montreal, CIBC, and Tangerine. It also supports cross-border institutions such as American Express and Capital One.

This announcement comes after the company underwent a months-long beta test with a handful of its Canadian customers, including Drop and Wave. Access is now available to developers looking to launch in Canada and to U.S. developers seeking to expand their services to Canadian citizens.

Plaid has 100+ employees and offers 6 products, including Auth, an account authentication tool; Balance, which pulls account balance information in real-time; Identity, which leverages bank data to verify consumer identity; Transactions, which pulls bank statement data across banks; Assets, a verification of assets tool; and Income, a tool that validates a consumer’s income and verifies direct deposit data. Since it was founded in 2012, Plaid has analyzed more than 10 billion transactions.

Plaid has raised $59.3 million to date. At FinDEVr San Fransisco 2014, the company’s founder Zach Perret gave a presentation about leveraging the Plaid API for financial infrastructure. Plaid has been listed as a Forbes Fintech 50 honoree for three consecutive years and was named to CB Insights’ Fintech 250 list in June of last year.

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Tango Card Receives $35 Million

Tango Card Receives $35 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Tango Card

Digital rewards-as-a-service platform Tango Card may be doing a little dance today. That’s because the Seattle-based company just closed a $35 million round of funding, bringing its total funding to $54.8 million.

The growth equity investment comes from FTV Capital. Tango Card plans to use the funding to grow its Reward Delivery Platform and Rewards as a Service API, scale its Rewards Genius dashboard, offer new integrations, expand internationally, and boost hiring at its Seattle headquarters.

“Our mission is clear – make rewards easy to send and awesome to receive,” said David Leeds, CEO and founder of Tango Card. “In the past, incentive programs were highly manual and the results were difficult to track. Tango Card delivers an enterprise-friendly solution that is easy to integrate, customizable, and expansive in its catalog of rewards and incentive offerings, serving over 2,000 satisfied customers that trust and rely on us to help them scale their business.”

Founded in 2009, Tango Card helps companies recognize and reward employees, engage with existing customers, and motivate potential customers. The company demoed its Rewards-as-a-Service (RaaS) API at FinovateFall 2016. RaaS is comprised of multiple elements, including customer creation, account creation, funding, catalog support, ordering, and reporting. With these methods, customers can integrate a full rewards program into their app to incentivize consumer and employee behavior.

Leeds said that the company began searching for a growth equity partner last year. Given FTV’s similar vision and 20-year track record, Leeds said the firm was “the number one partner” on its list. Tango Card will also benefit from FTV’s Global Partner Network, which offers Tango Card a list of potential enterprise customers. As a part of today’s transaction, FTV’s Chris Winship and Robert Anderson will join Tango Card’s board of directors.

In the press release, Winship described the B2B prepaid space as “a $100 billion global market opportunity,” adding, “Tango Card provides an industry-leading solution that capitalizes on this shift to digital, enabling its enterprise clients to efficiently use rewards and incentives for numerous use cases and to achieve business goals such as driving employee engagement and retention, improving employee culture and wellness, and incentivizing customer activities.”

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: CrowdFlower, Figure Eight, Lleida.net, Market EarlyBird, NYMBUS, Passport, Personal Capital, Plaid, Segmint, Tango Card, TSYS

On Finovate

  • CrowdFlower Rebrands as Figure Eight to Take Advantage of Booming Interest in AI.
  • Market EarlyBird Unveils Mobile App.
  • Plaid Goes International.
  • Personal Capital Exceeds $7 Billion AUM, Lands $15 Million Credit Extension.

Around the web

  • DeepTarget and Segmint collaborate, combining Segmint’s Data Insights and DeepTarget’s cross-selling platform.
  • NYMBUS wraps up 4-month conversion process for Surety Bank.
  • E-Z Parking & Valet launches Passport’s PassportParking app in Greenville.
  • Allied Irish Bank extends agreement with TSYS to continue processing the bank’s credit and debit card portfolios.
  • Lleida.net granted 4th U.S. patent.

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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