Author: Julie Muhn (@julieschicktanz)

WealthSpark Replaces the Personal Capital 401(k)

WealthSpark Replaces the Personal Capital 401(k)
By Julie Muhn (@julieschicktanz) Posted on
Categories: Personal Capital

Wealth tech company Personal Capital has launched a new 401(k) product through Alight Solutions, which will market the product to employers. WealthSpark, the new offering, is a joint effort between Personal Capital and AllianceBernstein (AB).

The new tool is a qualified default investment alternative (QDIA) in an employer-provided savings plan. A QDIA aims to encourage employees to invest assets in appropriate long-term savings vehicles.

To help users find those savings vehicles, WealthSpark leverages AB’s customized investment portfolios and combines it with Personal Capital’s digital wealth management planning tools, which curate 18 data points about a user’s financial situation and future plans. This information helps WealthSpark users understand their current finances as well as gain insight for decisions about their future, such as education, retirement, and buying a home.

Jennifer DeLong, head of defined contribution at AB, said, “The solution combines asset allocation with technology to deliver a more personal participant experience. By better understanding a participant’s individual circumstances, we can create a series of optimized glide paths to tailor outcomes to participants’ unique financial objectives.”

WealthSpark isn’t Personal Capital’s first foray into employer-sponsored plans. At FinovateFall 2012, the California-based company launched its own plan– the Personal Capital 401(k)— a professionally managed alternative to a traditional 401(k). “We scoured the landscape for better 401(k) plans,” said then-CEO Bill Harris in the demo. “Finally a light went on– let’s build a better 401(k) plan. So we did and I’m delighted to launch here at Finovate, America’s Best 401(k).”

The plan offered solo 401(k)s for sole proprietors, custom 401(k)s for large and complex businesses, 403(p) plans for non-profits, defined benefits plans for tax benefits, and cash balance plans. The plan boasted fees of one half of one percent and access to the Personal Capital dashboard.

WealthSpark, the new offering, will help Personal Capital focus on its core competencies– financial analysis and wealth management planning– by relying on partnerships. Alight Solutions will tap into its existing customer base of 1,400 business clients to market WealthSpark, and AB will use its pre-existing portfolios for the investment side.

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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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Bill.com, Infosys, Nopsec, Personal Capital, Roostify

On Finovate.com

  • Roostify Partners with BOK Financial to Improve the Mortgage Lending Process.
  • WealthSpark Replaces the Personal Capital 401(k).

Around the web

  • NopSec named most innovative tech company of the year by 2018 American Business Awards.
  • Bill.com appoints Yael Zheng as Chief Marketing Officer.
  • Myawaddy Bank in Myanmar selects Infosys Finacle to power its digital transformation.

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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Trusted Key Raises $3 Million for Passwordless Authentication

Trusted Key Raises $3 Million for Passwordless Authentication
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Trusted Key

Blockchain-based identity solutions company Trusted Key pulled in $3 million this week. The seed funding was led by Founders Co-Op with participation from Pithia, the venture capital company of The RChain Cooperative. Combined with the company’s $1.1 million debt round last April, Trusted Key’s total funding stands at $4.1 million.

Trusted Key will use the investment to accelerate innovation and business expansion to meet demand from enterprise customers. “Highly regulated enterprises want to bring their customer experience online but have significant drop-off rates during enrollment due to the cumbersome identity validation, or proofing, process,” said Amit Jasuja, CEO of Trusted Key. “Trusted Key’s platform protects the privacy of consumer data, while allowing enterprises to easily verify that their customers are who they claim to be. We are rebuilding digital trust.”

Today’s funding comes as the company wraps up a successful pilot project with healthcare consortium NH-ISAC in which Trusted Key facilitates identity proofing during the onboarding process. The company provides NH-ISAC clients with a single, reusable identity they can use to access all of their healthcare services. “We have been very impressed working with Trusted Key on the power of their platform around identity proofing and the creation of a secure digital identity that can be re-used by all of our healthcare partners with validation on the blockchain,” said Kurt Lieber, Chairman of the NH-ISAC Identity and Authentication Working Group.

Trusted Key’s solution leverages the blockchain to create a digital identity to prevent identity fraud and improve security. In the end, consumers receive a password-less login and enterprise businesses receive streamlined customer acquisition with a customizable authentication experience.

Its use of the blockchain makes Trusted Key well-positioned to scale up. And there is plenty of room to grow in this market– a recent report from Allied Market Research states that the global consumer identity and access management market is estimated to reach nearly $24 billion by 2022.

Founded in 2016, Trusted Key most recently presented at FinovateFall 2017. In November of that year, the Seattle-based company launched Secure SSH Key Management as part of its Trusted Key Digital Identity Wallet.

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BlueVine Receives $200 Million Line of Credit from Credit Suisse

BlueVine Receives $200 Million Line of Credit from Credit Suisse
By Julie Muhn (@julieschicktanz) Posted on
Categories: BlueVine, Funding

Alternative lending platform BlueVine fortified its backing today with a $200 million line of credit from Credit Suisse. This boosts the company’s total combined debt and equity funding to $518 million.

Today’s round is an asset-backed revolving credit facility that will allow BlueVine to offer higher lines of credit to more small businesses at a larger scale. In fact, the California-based company has increased its business line of credit from $200,000 to $250,000. This comes after BlueVine doubled its invoice factoring credit limit to $5 million earlier this year.

BlueVine CFO Ana Sirbu said that this type of debt funding is critical for the company to increase its scale. “This financing will support our next phase of growth,” she said. “We continue to build a business for the long-term by offering the best working capital financing solutions to business owners.

Founded in 2013, BlueVine is best known for Invoice Factoring, in which it issues cash to small businesses who sell their unpaid invoices at a discount, then receive up to $5 million in working capital in a matter of days to help manage operations. The company expects its total funded volume to exceed $1 billion this year.

BlueVine demoed its small business working capital solution at FinovateFall 2014. Earlier this spring, the company partnered with cross-border payments company Veem to save businesses on international payments. BlueVine’s other investors include Lightspeed Venture Partners, 83NORTH, Correlation Ventures, Citi Ventures, Menlo Ventures, and Rakuten Fintech Fund. Eyal Lifshitz is CEO.

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Getting a Visual of Trends at FinovateSpring Next Week

Getting a Visual of Trends at FinovateSpring Next Week
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinovateSpring 2018

We’ll be mid-way through FinovateSpring in less than a week, and many of the trends predicted at the beginning of the year are out in force.

On May 8 and 9, dozens of companies will take the stage to demo their newest technologies. And on May 10 and 11, the conversation continues. We’ll host experts on stage as they decode and decipher tomorrow’s trends and help you not only figure out what they mean for your organization but also offer up implementation ideas. Register today to save your seat!

So what’s at the top of the trends list for this year’s event?

APIs

Europe isn’t the only country with its eye on open banking. Because of the efficiencies they stand to gain, banks across the globe are considering how they can get ahead by creating a more open ecosystem. Additionally, many banks are finding value in buying and integrating white-label technology over building new technology in-house, which is creating a larger market for open APIs and SDKs across fintech.

AI and machine learning

While they’re not the same, these two enabling technologies go hand-in-hand. And it’s no wonder they came out on the top of the trends list at FinovateSpring– AI and machine learning have empowered banks to create technologies that help with everything from automating investing, enhancing marketing efforts, and improving customer service.

Lending

This is always a space worth paying attention to, because there is a lot of money to be made for both banks and fintechs if they do it right, and there’s a lot of money to be lost if they do it wrong. Additionally, with the increasing prevalence of enabling technologies such as the blockchain, AI, and cognitive computing, lenders are discovering improved underwriting, loan issuance, and debt recovery options.

What are you hoping to discover at FinovateSpring next week? Check out our agenda to learn more of what’s in store. Have questions? Visit our contact page to get in touch and we’ll help you out.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: ACI Worldwide, Digital Onboarding, NICE Systems, Quadient, Quovo, Salt Edge, Sensibill, Token

On Finovate.com

  • New Investment Helps Power Canadian Expansion for Financial Data Platform Quovo.

Around the web

  • HTC Global Services joins Quadient Partner Advantage Program.
  • Token Granted FCA Authorisation For Open Banking Payment & Information Services.
  • Erste Bank Hungary Readies for Immediate Payments and Open Banking Era with ACI Worldwide.
  • NICE’s Cognitive Robotic Automation Platform allows Amazon Lex’s conversational chatbot to fulfill more customer requests in real-time.
  • Salt Edge supports Account Information Services flows authorized under PSD2 Third Party Providers.
  • Sensibill powers receipt management for Quontic Bank.
  • Digital Onboarding to enhance Belmont Savings Bank’s customer engagement by increasing new checking account activation rates.

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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SmartLaunch from NYMBUS Digitizes Your Bank in Under 90 Days

SmartLaunch from NYMBUS Digitizes Your Bank in Under 90 Days
By Julie Muhn (@julieschicktanz) Posted on
Categories: NYMBUS

Core banking innovator NYMBUS has always helped banks chase their digital dreams. Starting today, the Florida-based company is continuing that mission, but making it even faster with SmartLaunch.

Built on NYMBUS’ SmartCore platform, SmartLaunch allows banks to set up a turnkey digital banking solution in as few as 90 days. The new offering grants banks access to technical resources, targeted digital marketing, website services, AML/BSA compliance, debit card issuance and management, and workflow management.

“The race is on to capture today’s digital banking customers, but legacy technology, operational risk, and a lack of resources and expertise make it difficult for financial institutions to deliver the exceptional Amazon-like experience consumers have come to expect,” said NYMBUS President David Mitchell. “SmartLaunch accelerates the goal by removing those barriers, while also leveraging a largely untapped brand approach for engaging loyal new customers and revenue opportunities.”

Banks can choose to launch the digital banking capabilities under their own brand or create a standalone, digital-only brand that targets a specific customer segment. In creating digital services, SmartLaunch helps banks expand consumer reach and increase cross-selling opportunities. “Digital banks are a profitable strategy, but NYMBUS recognized that a new model was needed to eliminate operational risk while also attracting more of today’s digital-savvy consumers,” Mitchell said. He described SmartLaunch as a “sign and recline” alternative to a core conversion that doesn’t require hiring additional staff.

NYMBUS offers four products in addition to SmartLaunch, including SmartCore, a digital-first core data processing platform; SmartDigital, a core agnostic digital integration platform launched last fall; SmartPayments, an integrated real-time payments suite, and SmartServices, a service that allows banks to tap into the knowledge of the NYMBUS team. Since it was founded in 2015, the company has made three acquisitions, including R.C. Olmstead, KMR, and Sharp BancSystems. Most recently, NYMBUS completed its SOC 2 Type 1 Certification, an audit of the company’s security protocol. NYMBUS has raised $28 million.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: MasterCard, Mint, NYMBUS, Pushfor, Quantopian, Temenos, WorldPay

On the web

  • Smart Launch from NYMBUS Digitizes Your Bank in Under 90 Days.

Around the web

  • IFC and Mastercard expand partnership to drive financial inclusion in emerging markets.
  • Pushfor goes live on the Temenos MarketPlace.
  • Smart Technology Solutions (STS), a U.K.-based payments acceptance software provider, teams with Worldpay to offer enhanced payment capabilities.
  • FactSet and Quantopian to launch financial data analysis platform to help investors capitalize on rapid data growth.

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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Expensify Seals Deal with Wells Fargo

Expensify Seals Deal with Wells Fargo
By Julie Muhn (@julieschicktanz) Posted on
Categories: Expensify

This week, expense reporting app provider Expensify debuted the launch of a deeper bank integration program called ExpensifyApproved! Banks. Wells Fargo, which serves one in three households in the U.S., will pilot the launch.

“Bank integrations have been in the Expensify DNA since day one, and the ExpensifyApproved! Banks program is the next step toward providing a consistent transaction import process for our mutual customers,” said David Barrett, founder and CEO of Expensify. “Wells Fargo has always been a great partner at the forefront of innovation, so it was a natural fit for them to be our first major partner as we launch this exciting new endeavor.”

Expensify users can connect their Wells Fargo bank cards for a smoother expense-tracking experience to help them organize receipts for tax purposes, self-employment expenses, or small business purchases. The ExpensifyApproved! Banks API allows for more secure data sharing between banks and Expensify, and offers banks more control over what data they share with the company.

The new integration offers mutual customers of Expensify and Wells Fargo a faster card setup process, the ability to seamlessly import transactions, access to historical account activity, and a detailed view of transaction data. Ben Soccorsy, Head of Digital Payments for Wells Fargo Virtual Channels said, “With API connectivity, Wells Fargo cardholders in Expensify can trust that they’re getting a smooth and efficient transaction import experience. Robust card connections that run dependably in the background are the perfect complement to fully automated expense reporting in Expensify.”

This launch comes at a time when consumers and businesses are laser-focused on how their data is collected and used. It also coincides closely with the E.U.’s implementation of PSD2, which mandates that banks must open their consumer data stores to third-party providers upon consumer consent. The ExpensifyApproved! Banks API is ahead of the curve on both of these items, and presents an opportunity for U.S. banks to mindfully and securely share consumer data.

At FinDEVr Silicon Valley 2016, Expensify presented Bedrock, an open sourced relational database management system. The company last demoed at FinovateSpring 2013, where Barrett showed off integrated invoicing technology. Earlier this year, Expensify unveiled website enhancements to improve credit card imports and simplify billing currency selections. The company was founded in 2008 and has raised $27.2 million.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Deserve, Expensify, Fiserv, Horizn, InComm, Outsystems, payworks, ti&m, TransferWise, Wealthify

On Finovate.com

  • Deserve Raises $50 Million in Debt Financing.
  • Payworks Teams Up with Ghana-based Payment Platform Hubtel.

Around the web

  • Wealthify added to Starling’s in-app marketplace.
  • InComm plans $20 million expansion in Georgia, will add more than 150 jobs.
  • Fiserv launches FinKit for Open Banking to help banks keep up with rapidly unfolding regulations.
  • Horizn helps RBC win a Celent Model Bank 2018 award for Employee Productivity.
  • OutSystems to power digital transformation for Principality.
  • TransferWise introduces its multi-country bank account.

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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Unison Sees 1,000% YoY Growth in Originations

Unison Sees 1,000% YoY Growth in Originations
By Julie Muhn (@julieschicktanz) Posted on
Categories: Unison

Home ownership investing company Unison released impressive growth stats this week, announcing that its first quarter origination volume has grown by 1,000% compared to the first quarter of 2017.

On top of that, the San Francisco-based company launched in 10 additional U.S. states this week, making it available in 22 states and Washington, D.C. And Unison isn’t stopping there. By the end of 2018, the company plans to offer its services to more than 70% of single family households in the U.S.

“Our marketing, partner and support initiatives played a critical role in strengthening the results in the first quarter,” said Bill Walker, chief revenue officer at Unison. “We saw our customer base expand across all regions, particularly in the latter half of the first quarter and are looking forward to building on this positive momentum throughout the rest of the year.”

To help drive future growth, Unison appointed Cari Jacobs (pictured) as the company’s Chief Marketing Officer. Jacobs most recently served as VP of integrated marketing at ModCloth and has previously driven marketing objectives at well-known brands such as Toyota, Lexus, Procter & Gamble, Intuit, General Mills, Levi’s, Coca-Cola and Prudential Real Estate. The company also appointed Quintin Gomez as the director and head of engineering.

“2017 was a transformative year for Unison as we saw increased demand and awareness of home ownership investments as a solution for home financing,” said Thomas Sponholtz, chairman and CEO of Unison. “We will continue to expand our geographic presence, strike strategic partnerships in and out of the financial services industry and deliver programs to our customers that will liberate them from debt-only options.”

Founded in 2004, Unison most recently demoed its two flagship products at FinovateFall 2017. The first is Unison HomeBuyer, which provides a percentage of the down payment needed to purchase a home in exchange for a percentage of the home’s equity upon selling. The second product is Unison HomeOwner, which allows homeowners to use some of the equity in their home without interest or monthly payments. The company also showcased at FinovateSpring 2017, where it won Best of Show. Most recently, Unison teamed with Valley National Bank to launch a five percent down payment program in conjunction with an 80% LTV mortgage.

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SecuredTouch Receives $8 Million Strategic Investment from Arvato Financial Solutions

SecuredTouch Receives $8 Million Strategic Investment from Arvato Financial Solutions
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, SecuredTouch

Israeli behavioral biometrics startup SecuredTouch gained backing from Arvato Financial Solutions this week. The $8 million investment was strategic, and brings the company’s total funding to $11.5 million.

Robert Holm, Senior Vice President of Fraud Management at Arvato said, “Investing in SecuredTouch allows us to partner with a global leader in behavioral biometrics for mobile devices, and to reinforce our online security and fraud prevention services in the best possible manner.” The firm’s President of Risk Management Frank Schlein said that protection against cybercrime is “essential,” and added, “I am really pleased that our involvement with SecuredTouch will enable us to enhance and expand this platform further.”

On the strategic side, SecuredTouch will benefit from Aravato’s established relationships with international players across various industries. Yair Finzi, CEO and founder of SecuredTouch, said, “We see a clear synergy between the offerings and strategies of Arvato Financial Solutions and SecuredTouch. We have created a partnership that will enable SecuredTouch to expand its international presence and enhance its positioning in the areas of fraud and authentication. Arvato Financial Solutions with its international expertise in risk and fraud management is an ideal investor and partner for this purpose.”

SecuredTouch was founded in 2015 and specializes in behavioral biometrics for mobile transactions. As Finzi explained, the company ensures that “legitimate transactions are recognized quickly as such and can be conducted smoothly. The aim is to ensure a secure, fast, and convenient customer experience in mobile transactions, on a sustained basis.” The company maintains a foothold in the security space by leveraging more than 100 parameters to continuously authenticate users in a session without friction. SecuredTouch’s technology is able to differentiate between human and non-human behavior to catch and block would-be fraudsters.

SecuredTouch demoed U-nique, a behavioral biometrics technology that leverages machine learning, at FinovateEurope last month in London. The company also offers U-manobot, malware detection technology; and Continew-ID, a device takeover prevention technology. SecuredTouch’s other investors include Rafael Development Corporation, Eshbol Ventures, and Wellborn Ventures.

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