Ethoca’s New Integrated Solution

Ethoca’s New Integrated Solution

Ethoca, a collaboration network that aims to enhance merchant card acceptance and reduce chargebacks, launched an Integrated Solution Suite this week.

Merchants who leverage the new suite of tools not only mitigate chargebacks from genuine fraud, friendly fraud, and false claims, they also facilitate increased card acceptance rates. The suite is comprised of three main solutions, Ethoca Eliminator, Ethoca Alerts and Enhanced Representments.

Ethoca Eliminator allows card issuers to leverage merchant intelligence– such as shopping cart details, IP address, and account details– when the customer clicks on a transaction within their mobile banking app or calls into a bank’s call center to investigate the purchase. With this process, cardholders are able to better recognize their own transactions instead of assuming they are fraudulent. This helps avoid situations when good transactions are unwittingly reported as fraud. When a top five U.S. card issuer and major online merchant piloted Eliminator, they found that 38% of disputes that would have become chargebacks were deflected. More than 15 major card issuers and several digital merchants have signed on to begin using Ethoca Eliminator throughout 2018.

The company most recently demoed its flagship product, Ethoca Alerts, at FinovateEurope 2016 in London. When a cardholder goes through the Eliminator process and still insists a transaction is fraudulent, Ethoca taps into its network of card issuers who confirm or repudiate the transaction in question. When a transaction is confirmed to be fraudulent, Ethoca alerts its network of merchants who stop the delivery of the good or service in question to avoid the chargeback.

The third product in the suite is Enhanced Representments. This tool helps merchants who wish to challenge transaction disputes by leveraging Ethoca’s knowledge of chargeback processing and evidence rules. You can think of it as a court session held to keep things fair for both the merchant and the disputing consumer as they sort through the evidence. In the press release, Ethoca describes this as decreasing pain “for card issuers who are often negatively impacted by indiscriminate representment behaviors.”

“Ethoca’s belief is that a layered approach – powered by the global collaboration network we pioneered – is the only real solution to combat the pervasive friction and poor customer experience typical of today’s ecommerce environment,” said Keith Briscoe, Chief Marketing & Product Officer at Ethoca. “This new solution suite takes us one step closer to our vision: creating a new set of rails for the rapid exchange of rich transaction data and intelligence designed to finally make frictionless ecommerce a reality,” he added.

Founded in 2005, Ethoca is headquartered in Toronto, Canada. The company is partnered with more than 5,400 merchants in 40+ countries and 585 card issuers in 20+ countries to help them avoid losses from card not present (CNP) transactions. This network includes eight of the top ten North American ecommerce brands, 14 of the top 20 North American card issuers, and six of the top ten U.K. card issuers. Andre Edelbrock is CEO.

Credit.com Looks to Even Financial to Power Personal Loans and Content

Credit.com Looks to Even Financial to Power Personal Loans and Content

Consumer credit and personal finance site Credit.com announced today it is looking to Even Financial to power an enhanced personal loan marketplace on its site, as well as related content tools.

This will help Credit.com offer a built-in loan matching experience that helps members find a loan personalized to their needs. The integration relies heavily on Even’s technology that leverages machine learning, big data and a network of financial products. The new marketplace is superior to Credit.com’s previous loan referral setup that would direct users to individual lenders’ websites. With the new approach, users can get approved in real-time without needing to leave the Credit.com site. The new loan marketplace will launch in the second quarter of this year.

In a statement, Credit.com GM Jason Owen expressed the superiority of the new loan marketplace when he said, “We expect this agreement will result in a more enjoyable user experience for our members as we aim to provide them with more variety, options, and significant user benefits.”

This isn’t the first time Credit.com has worked with Even– the two players have been partnered since 2016. And it likely won’t be the last time the two work together. In fact, Credit.com plans to extend the marketplace concept to other financial offerings, including mortgages, savings accounts, and insurance products.

If you’re a true Finovate veteran, you remember Credit.com’s Best of Show-winning demo at Finovate 2009, where the company launched the Credit Report Card. Credit.com was founded in 1995 and is headquartered in San Francisco, California.

Experian Acquires ClearScore for $385 Million

Experian Acquires ClearScore for $385 Million

About a year after Experian received authorization from the U.K.’s FCA, the company has made further inroads into the nation with the acquisition of U.K.-based ClearScore. The deal is anticipated to close for $385 million (£275 million).

Brian Cassin, Experian CEO described the move as “another important step in our strategy to extend the services we provide to U.K. consumers.” Cassin added, “Our goal is to provide more choice and greater convenience to individuals who want access to personal financial products at the best prices, while also making it easier for credit providers to offer better, more tailored offers to consumers.”

Founded in 2014, ClearScore has onboarded 6 million members in the U.K. through its free membership model. The company matches individuals to personal financial products, offers free credit reports, and provides financial education. Similar to Credit Karma in the U.S., ClearScore generates revenue through referral fees paid by lenders and other service providers on its site. The company is projected to generate $55 million in revenue in 2018, a 50% increase over what it earned in 2017.

Experian will retain the ClearScore brand and include it as part of its broader offering in the U.K. The company says it will benefit from ClearScore’s skills in creating a consumer-friendly user experience and in member engagement. Additionally, the acquisition will expand Experian’s geographical reach into South Africa, where ClearScore recently began offering services.

Additional payout is contingent on future financial performance. The transaction is subject to regulatory approval and is expected to close later in 2018.

Headquartered in Dublin, Ireland, Experian most recently presented at FinovateFall 2017 where it debuted Text for Credit. The new service allows consumers in search of credit to initiate the process with a text message, allowing them to review and apply for credit offers in minutes using their mobile device. Last month, the company earned a spot on One World Identity’s list of top 100 influencers.

Data or Die

Data or Die

Summarizing four days of fintech content can be done using a four-letter word: data. That simple term and its many uses was the overarching theme of FinovateEurope last week in London.

The use of data is not new to the industry, but advanced AI models have helped data evolve from the early days of “Big Data” in fintech. Leveraging large data sets for a variety of uses has become an industry standard, but players who make the most of their data will win.

Below, I’ve categorized a variety of data uses, all shown and discussed at FinovateEurope last week. Remember– it’s not how much data you have– it’s how you use it.

AI

When talking about data, artificial intelligence seems like a good place to start. It is AI, after all, that offers deep insight into data.

In his keynote presentation, futurist Rohit Talwar discussed the AI revolution and the road to superintelligence. In the speech, Talwar explained six types of AI:

  1. Domain specific: the AI knows a lot about the problem, but not about the world surrounding it
  2. Context-aware: the AI is able to retain information for later use
  3. Theory of mind: the AI has the capacity to reason like a human
  4. Self-aware: the AI has an understanding of human emotions
  5. Superintelligence: the AI is capable of out-thinking humans
  6. Singularity: the AI has achieved enlightenment and transcendence

Credit scoring and risk underwriting

Data has turned traditional credit scoring upside down– and that’s a good thing. During the demo sessions, ApPello showed how it is using data to transform credit scoring and risk underwriting. The company’s risk assessment technology helps underwrite business loans with thin credit files.

The topic was also breached during the panel discussions, when Hari Ramamurthy, CTO & Technical Architect of Kuflink and Jaidev Janadana, CEO of Zopa each talked about data’s importance in making lending decisions.

Banking the underbanked

This topic is tangential to leveraging non-traditional data sources for credit and scoring. Because unbanked and underbanked individuals have little-to-no credit history, data is the key to providing services to these individuals.

In Friday’s fireside chat with Bernadetta Arese Lucini, Oval Money CEO, Lucini discussed how Oval Money leverages the bank account data of underserved individuals to help them achieve savings goals. Additionally, Sheraz Dar, CEO of CreditLadder explained how CreditLadder uses monthly rental payment information to help users build their credit score by paying their rent on time.

Open your bank

Being in the EU, there was plenty of talk about PSD2. Throughout these discussions, many touted the benefits of consumer data-sharing through the use of APIs. Allowing third parties to leverage data ultimately offers the best experience and provides more options for your customers.

Specifically, Tesobe’s Open Bank Project demoed a portion of its large catalogue of APIs, along with its network of more than 8,000 fintech developers across the globe.

Secure your site

Data gathered about how consumers navigate a website or a mobile app can help flag fraudulent activity. Two demo companies exemplified this use case.

First, Fortytwo Data showed how data can help banks comply with anti-money laundering regulations and leverage behavioral analytics and transaction monitoring to meet compliance standards and keep the client’s account secure.

Next, HooYu demoed how it leverages customer data to help onboard customers and ultimately meet security and compliance needs.

Personalizatoin

Personalization is a huge use case for consumer data. By tailoring the user experience based on the client’s specific needs, banks and fintechs stand to gain more customers and sell more products, ultimately improving the user experience. Three companies exemplified this in their demos.

First, Efigence debuted EFI4 Analytics, which converts data into insights and automatically recommends banking products based on those insights in real time.

Next, DataSine showed how it uses psychology and machine learning to tailor the customer experience and segment the audience by personality type at scale.

Finally, W.UP takes a range of customer data– including photos on their camera roll, fitness data, and geolocation– analyzes it using AI, and leverages those insights to create a personalized user experience.

Regulation

With the GDPR deadline looming, data protection is on the minds of many banks and fintechs across the globe. This topic emanated in almost all discussions throughout the conference.

Analytics Marketing

Offering loyalty and rewards to consumers is a great way to differentiate a payments offering. This topic was quite popular in 2011 but faded after mobile wallets struggled to gain ground. With the advent of more powerful analytics thanks to AI, however, loyalty and rewards offerings are experiencing another surge in interest. Four companies in last week’s show demonstrated how consumer data can be analyzed to improve marketing efforts.

First, CASHOFF uses consumer transaction information to create a white-labeled, gamified loyalty rewards program that is tailored consumer preferences.

Second, Yoyo offers a payment and loyalty platform that leverages behavioral analytics and marketing tools to effectively reach consumers, increase their transactions, and offer them spending insight via receipt analysis.

Finally, Touche showed how it analyzes consumers’ historic activity and predicts behavior in order to offer merchants insights for loyalty programs and targeted marketing campaigns.

Investing

Robo advisory services stand to win big if they leverage data correctly. By analyzing large data sets about consumer confidence and market sentiment, algorithmic investing models can win over consumers. On the human side, financial advisors also benefit by gaining the ability to better manage more portfolios at scale. Two companies exemplified this during the demo session.

First, YUKKA Labs showcased its language intelligence capabilities that evaluate financial news to help advisors and individual investors make better investment decisions.

Second, aixigo demoed how it leverages data to help advisors scale their offerings and manage millions of portfolios.

Finovate Alumni News

On Finovate.com

  • SME Financing Meets Cross-Border Payments as BlueVine Partners with Veem.
  • Experian Acquires ClearScore for $385 Million.
  • Pindrop Partners with Voice Solutions Provider Aeriandi.

Around the web

  • Ethoca launches Integrated Solution suite to eradicate chargebacks.
  • Revolut launches direct debits in Europe.
  • PayU, Kreditech to offer cardless EMI option of Rs 1 lakh for online purchases.
  • Lendio franchise announced in South Charlotte region.

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.

Nordic Capital Fund Acquires Majority Share of Trustly

Nordic Capital Fund Acquires Majority Share of Trustly

Payment solutions innovator Trustly announced today that Nordic Capital has taken a majority stake in the company. Trustly anticipates this move will assist in its journey to become the leading global online banking payments provider.

Nordic Capital will acquire Sweden-based Trustly from Bridgepoint Development Capital and other shareholders. Additional investors, including Trustly management, founders and investment company Alfvén & Didrikson, will remain significant shareholders in the company. The terms of the deal, which is subject to regulatory approvals, were not disclosed.

In a press release, Trustly CEO Oscar Berglund noted that online banking-based payment solutions are only in “infancy” and that the company seeks to “make it easier, safer and quicker for both consumers and merchants to make payments online.” He added that Nordic Capital’s support will be of great value as Trustly grows. As one of Europe’s largest private equity investors, Nordic Capital has indeed proven to be quite valuable to other fintechs in the space. In fact, the firm helped transform payment platform Bambora into a global payment market leader and also boasts a successful investment in Point, a payment terminal software company.

Fredrik Näslund, Partner and Advisor to Nordic Capital said, “Nordic Capital views Trustly as a highly strategic payment platform with unique capabilities. We intend to support the management team and founders in the journey to becoming the global account-to-account infrastructure player by providing capital and experience from our previous successful investments in payments.”

Adding to the accolades, Johan Dahlfors, Partner at Bridgepoint Development Capital said, “Trustly is very well placed to continue its strong growth trajectory in a structurally growing market with long-term tailwinds for real-time, account-to-account payments.”

At FinovateEurope 2017, Trustly debuted Direct Debit, a payment offering that removes the pain of entering payment card information by allowing users to transact using their current account by entering their bank login credentials.

In a separate release this week, Trustly announced it teamed with Z.com to serve as a payment option. Last fall, the company teamed with Qliro and in May of 2017, Trustly partnered with online fashion retailer Boozt.com, just after announcing its expansion into the U.K.

Welcome to Day Four of FinovateEurope

Welcome to Day Four of FinovateEurope

The days have flown by and it’s hard to believe we’ve arrived at the final day of FinovateEurope! We have a lot of content in store today and can’t wait to get started.

We’re at ExCel London and tickets are still available at the registration desk. If you missed the first part of the show, catch up by searching #Finovate on Twitter.

Here’s an overview of today’s agenda. For a detailed look, check out the event website.

From 10:10 to 12:00 our four-track summit panel discussions and fireside chats will cover four topics:

  • Payments
  • Digital Lending
  • New Tech
  • Special Interest

And that’s a wrap! Thanks to all of the presenters for braving the stage with their live demos, to all of the speakers and panel hosts, and of course to our audience– we couldn’t do this without you.

Demo videos will be available on Finovate.com in a couple of weeks and you can find panel discussions as well as bonus content and interviews on our YouTube channel. Until we see you again next year, tune into the Finovate blog for the latest in fintech news.

Celebrating International Women’s Day at FinovateEurope

Celebrating International Women’s Day at FinovateEurope

The midway point of FinovateEurope falls on a notable holiday– International Women’s Day. This combination makes it the perfect time to celebrate all of the women who have graced the Finovate stage over the past two days.

Out of our 68 demoing companies, 21 were represented by women presenters– that’s 31%. This figure is 35% higher than at FinovateEurope last year, when 23% of the presenting companies were represented by a woman on stage. And it’s 55% higher than at FinovateEurope 2016, when 20% of the companies featured a woman on stage; more than 2x higher than FinovateEurope 2015, where 15% of the companies had female speakers; and a huge leap from our first event in 2007 with zero (see note 1).

These numbers spell out definitive progress. And with this in mind let’s celebrate women in fintech today– and every day, recognize how far we’ve come, and make an effort to foster a more inclusive environment within our industry.

The companies appear in demo order:

ApPello

Bernadett Nagy and Agnes Magyar

 

Opentech

Lisa Ann Caringi

 

ebankIT

Diana Winstanley

 

Google & KBC Bank

Petrina Grady and Deniz Oran

 

Avaloq

Esther Kaufmann

 

Salt Edge

Lisa Terziman-Gutu

 

CASHOFF

Yulia Clarke and Lina Perez

 

Horizn

Janice Diner

 

Fintech OS

Paula Costea

 

Electronic IDentification

Patricia Diez Diez

 

3rd-eyes

Stephanie Feight

 

Exate Technology

Sonal Rattan

 

IBM Trusteer

Eileen Turner and Sarit Kozokin

 

ING

Iwona Ziolkowska and Ewa Szerszen

 

CREALOGIX

Jo Howes and Eszter Vass

 

Solna

Inna Kaushan and Fatima Ayoub

 

Sensibill and NatWest

Wincie Wong

 

Smart Valley

Dr. Anna Elmirayeva

 

Partner HUB

Katalin Kauzli

 

SMART VALOR

Olga Feldmeier

 

ITSector

Luisa Silva


Editor’s Note: While sadly it’s true that no women were on stage during the 20 demos of the first Finovate. One company, iPay Technologies, was founded by Dana Bowers, but she chose not to speak that day. And Finovate might not even exist if it wasn’t for Melanie Flanagan, then Marketing Manager at Yodlee (also co-founded by a woman), who was the first person to agree to demo. Finally, Susan Hawkins, then SVP at Metavante,was instrumental in getting both her company and Monitise on stage. So there you have it, woman called the shots for at least 20% of Finovate v1.0’s content, even if they ended up delegating the on-stage pitching to men. Thanks Melanie, Dana and Susan! — Jim Bruene, Founder

Welcome to Day Three of FinovateEuorpe

Welcome to Day Three of FinovateEuorpe

The demo sessions of the first two days of FinovateEurope are complete and Best of Show winners have been named. Now we turn to industry thought leaders to not only help us digest what we’ve just seen but also turn to the future and anticipate what’s coming next.

We’re back at ExCel London for today’s sessions and tickets are still available at the front desk. You can check out the full agenda on the event website, but here’s a quick overview of what to expect today: 

From 14:05 to 17:45 our four-track summit panel discussions will cover four topics:

  • Banking
  • Investing
  • Regtech
  • New Tech

Registration will open tomorrow at 8 AM and the first session starts at 8:30 AM. Coat check is available outside the networking hall in the ExCel Center.

Welcome to Day Two of FinovateEurope

Welcome to Day Two of FinovateEurope

The week started off strong with an exciting first day of FinovateEurope. Continuing our momentum today, we have another 29 companies ready to demo their fintech on stage.

If you missed out on the first day, no problem! Come down to ExCel London and register today, and check out the action on Twitter by searching #Finovate.

Today’s format will look quite similar to yesterday’s. The full agenda can be found on the FinovateEurope website. Here’s what you can expect:

8 to 9 Registration and continental breakfast

9 to 10:10 Demo session

10:20 to 10:50 Intermission and refreshments

10:50 to 12:10 Demo session

12:10 to 13:10 Lunch and networking

13:10 to 14:30 Demo session

14:30 to 17:00 Cocktail reception and networking

Tomorrow, registration opens at 8 AM and the first session begins at 8:45. Please remember your name badge.

Excuse Me Europe, Your Finovate is Showing

Excuse Me Europe, Your Finovate is Showing

FinovateEurope begins tomorrow and we’re placing the finishing touches on this week’s event. Companies are practicing their demo pitches for March 6 and 7, breakout rooms are ready for panel discussions that will take place on March 8 and 9, and the networking hall is prepared.

Are you ready? Here’s all of the last minute information you need to know:

Arrival

The event will be held at ExCel London. Registration opens at 8 AM tomorrow and the first demo begins at 9 AM. If you still don’t have your ticket, be sure to arrive early tomorrow to register.

Agenda

You can find the four-day agenda online. We’ll also post basic agenda details here on the blog every morning.

Questions?

For specific questions, visit the FinovateEurope website or contact our events team.

Ready, Set, Go…. Finovate Lands in London

Ready, Set, Go…. Finovate Lands in London

If your idea of fun is hanging out with fellow fintech and banking enthusiasts and discussing what the future of the industry holds, then you’re in good company this week as FinovateEurope is taking place this week. Here are the details

Ready…

First, don’t forget to register ahead of time. Tickets are still available online. The event takes place March 6 through 9 and will be held at ExCel London (Finovate veterans, take note– it is a new venue!). Also, to help you prepare, we’ve compiled a Sneak Peek series to get an advanced look into what some of the companies will debut on stage.

Set…

Check out the list of demoing companies, view the agenda, and finalize your accommodations. And if you have additional questions or need help with a special ticket request, please contact our events team.

Go!

Registration and a continental breakfast take place at 8 AM on 6 March, and the first demo will begin at 9 AM. Come early to settle in with a coffee or tea and save your seat.

We’ll be live Tweeting throughout the event from @Finovate, using the hashtag #Finovate. Be sure to check the Twitter feed for presenter information, analyst insights, and even bonus video content throughout the four-day event.