Author: Julie Muhn (@julieschicktanz)

Bitbond Launches Alternative Investment Fund in Partnership with 1741 Fund Management

Bitbond Launches Alternative Investment Fund in Partnership with 1741 Fund Management
By Julie Muhn (@julieschicktanz) Posted on
Categories: Bitbond

Peer-to-peer small business financing platform Bitbond has entered into a partnership with 1741 Fund Management to launch an alternative investment fund.

The new investment opportunity is made possible through an open-ended investment fund from 1741 Fund Management. Through the partnership, any institutional investor will have access to a diversified portfolio of small business loans that are originated through Bitbond’s small business lending platform. The new product is set up as an Alternative Investment Fund under the E.U.’s Alternative Investment Fund Managers Directive.

Germany-based Bitbond offers small businesses across the globe fast access to working capital. Its platform connects small business owners with individual and institutional investors and leverages the blockchain to send cross-border payments quickly and inexpensively. Because Bitbond requires less manual involvement than traditional underwriting methods, it also has the advantage of scalability.

Since it was launched in 2013, the Bitbond platform has facilitated more than 2,300 loans worth $7.4 million (€6 million), most of which is used as short-term working capital for online retailers. Bitbond, which holds its own BaFin regulatory license, boasts more than 130,000 users from 120 countries.

At FinovateFall 2016, Bitbond launched an automated SME scoring engine. The tool offers a universal, automated scoring method that provides borrowers instant funding after their application is accepted. Last spring, the company brought in $5.4 million in debt financing and an undisclosed amount of equity funding, taking Bitbond’s total equity funds to more than $2.4 million. Radko Albrecht is founder and CEO.

Share this:

Send Post Twitter LinkedIn Facebook

Moven Enterprise Teams with SBI Holdings to Launch in Japan

Moven Enterprise Teams with SBI Holdings to Launch in Japan
By Julie Muhn (@julieschicktanz) Posted on
Categories: Moven

Financial engagement and digital experiences platform Moven Enterprise has partnered with Japanese financial services company SBI Holdings, which owns Softbank and is partnered with more than 60 financial institutions across Asia.

This is part of a joint venture agreement between the two in which SBI will bring Moven’s technology into Japan under the Moven brand, offering mobile banking tools to domestic and international banks. The agreement also gives SBI Holdings one of six seats on Moven’s board of directors.

Moven has already partnered with numerous financial institutions, including TD Bank and Westpac in New Zealand. Today’s agreement, however, with SBI is Moven’s first foray into Asia.

Launched at FinovateFall 2016, Moven Enterprise takes a software-as-a-service approach by allowing banks and financial services companies to white-label its financial management technology. Moven Enterprise offers tools to help banks engage with their existing customers, acquire new customers, and drive revenue through their mobile channel.

At FinovateAsia 2017, Moven Enterprise demonstrated a new credit offering, chatbot functionality, and an expansion of its wish list feature that leverages behavioral gamification.

American Banker announced today that Moven’s consumer-facing brand– a challenger bank that launched in 2011– is seeking to acquire a bank, though it has not disclosed which. The company’s founder, Brett King, said the reasoning behind a bank purchase would be to help Moven scale faster and access more services for its customers.

Moven last demoed its consumer-facing platform at FinovateFall 2016 with the launch of a daily digest feature and real-time receipt capabilities. Last June, the company’s enterprise offering, in partnership with Westpac, received the CANSTAR 2017 Innovation Excellence Award.

Share this:

Send Post Twitter LinkedIn Facebook

Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Bitbond, Ephesoft, EZBOB, Klarna, Moven, MX, nCino, PayNearMe, Revolut, Ripple, TIBCO Software

On Finovate.com

  • Moven Enterprise Launches in Japan, Lands $23 Million from SBI Holdings.
  • nCino Reels in Investment from SalesForce Ventures.
  • London-based lender EZBOB Raises $21 Million in New Funding.
  • Bitbond Launches Alternative Investment Fund in Partnership with 1741 Fund Management.

Around the web

  • TIBCO appoints Matt Quinn as COO, Nelson Petracek as CTO.
  • Revolut launches ability to buy, hold, & sell Bitcoin, Litecoin, & Ethereum in just 30 seconds directly from the app.
  • KIVA Group team with MX to offer AFCU members mobile banking app.
  • UK technology retailer Maplin integrates Klarna’s pay later option.
  • Ephesoft appoints Russ Hubbard as Chief Revenue Officer.
  • PayNearMe partners with Ria to make paying for international money transfers easier.

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.

Share this:

Send Post Twitter LinkedIn Facebook

TESOBE’s Open Bank Project Powering Santander’s First Hackathon

TESOBE’s Open Bank Project Powering Santander’s First Hackathon
By Julie Muhn (@julieschicktanz) Posted on
Categories: Open Bank Project, TESOBE

Courtesy of help from TESOBE’s Open Bank Project, Santander is hosting its first hackathon this spring. The bank will leverage the Open Bank Project’s white-labeled sandbox technology and expertise to host the competition, themed Building Banking Your Way.

Stephen Dury, Head of Customer and Innovation at Santander​, said, “​By launching a hackathon, we hope to see the future of open banking come to life through participants fresh ideas, creative new use cases and industry-changing solutions.”

Using a sandbox of emulated data, the hackathon aims to find innovative solutions to business challenges and tackle issues ranging from customer interaction, security, homeownership, and money management. Prizes will be awarded to participants who create submissions that “surprise, delight, and engage with users in a way that has never been done before” and the winning team will receive $14,000 (£10,000).

Santander’s upcoming hackathon will take place from 16 through 18th March in Shoreditch.

Simon Redfern, CEO of TESOBE / Open Bank Project, ​said that this hackathon comes at a particularly exciting time given the EU’s new open banking regulations. “A hackathon is a great way of gathering and focusing fresh perspectives and we’re excited to meet and support the up-and-coming innovators who have the vision, passion, and capability to rapidly deliver compelling fintech apps and services using Open Banking APIs,” Redfern added.

The Open Bank Project has partnered with a number of global banks, including Societe Generale and The Royal Bank of Scotland, to help them organize and execute successful hackathons. With new PSD2 guidelines in place, banks may be more likely to open themselves to new opportunities and feel more pressure to create and adopt new, innovative services.

Headquartered in Germany, the Open Bank Project was founded in 2005. At FinovateSpring 2013, Redfern demonstrated a fun application of open banking– the world’s first singing bank. The point of the demo was not the singing bank itself, but rather was intended to showcase the ease of use of the Open Banking Project’s API. At FinovateEurope this March, TESOBE’s Open Bank Project will demo its newest technology from stage (register).

Share this:

Send Post Twitter LinkedIn Facebook

Kabbage to Serve Larger Businesses by Expanding Line of Credit to $250k

Kabbage to Serve Larger Businesses by Expanding Line of Credit to $250k
By Julie Muhn (@julieschicktanz) Posted on
Categories: Kabbage

Alternative lending startup Kabbage is broadening its focus today. The Atlanta-based company has expanded its line of credit to $250,000 to offer more purchasing power to larger businesses for longer term loans.

This credit increase will not only serve existing Kabbage clients looking to borrow more, but will also add to the company’s customer base to include larger businesses. In a recent survey of 800 small businesses, Kabbage found that more than 73% of businesses expect to increase their revenue by more than 20% this year. Among the top investments businesses plan to make are:

  • Mobile technologies, such as apps, advertising or text automation for customer relationship management
  • Technologies to reduce manual process and paperwork
  • Social advertising
  • Cybersecurity tools and software to protect company and customer data

“Giving small businesses the peace of mind and security to focus less on their finances and more on their passions is a key tenet at Kabbage,” said Bob Sharpe, COO of Kabbage. “Increasing our lines of credit to $250,000 significantly enhances our ability to solve financial hurdles for larger and more specialized businesses that may otherwise be unachievable, which we see in the market today.”

Once they’re approved, businesses can draw on the $250,000 line of credit at any time, without having to reapply for each loan they take. Kabbage is not charging additional fees for the larger amount, has no annual withdrawal requirements, and no origination costs. Businesses can access the funds online, via the Kabbage mobile app, or on the Kabbage Card, which the company launched at FinovateSpring 2015. The Kabbage Card allows users to withdrawal from their line of credit at any point-of-sale where VISA is accepted.

Last month, the company released 2017 growth figures, stating it has extended $4+ billion to more than 130,000 small businesses since it was founded in 2009. In November of 2017, Kabbage made headlines when it brought in a $200 million credit facility. Check out our video interview with Kabbage’s President and Co-Founder Kathryn Petralia at FinovateFall 2017.

Share this:

Send Post Twitter LinkedIn Facebook

Wealthfront Launches Homeownership Planning Tool

Wealthfront Launches Homeownership Planning Tool
By Julie Muhn (@julieschicktanz) Posted on
Categories: Wealthfront

The pressure is high in today’s housing market. Inventory is low in many parts of the U.S. and that, combined with the threat of rising interest rates and booming housing demand, is making home buyers feel the need to buy. Automated investment advisory company Wealthfront announced today that it is here to help with the addition of home planning tools for Path, the company’s automated financial planning solution.

The Path home planning tool aims to help buyers understand what they can afford today and what it may take for them to be able to afford a larger home in the future. Also importantly, the tool shows users how this purchase may impact future goals, such as retiring early or paying for a child’s college tuition. Path extends beyond traditional affordability calculators to show a cost estimate that considers the user’s financial standing and other financial goals.

Leveraging third party data, Path projects future home prices and mortgage rates that are specific to the borrower’s financial situation. The tool also takes into account the varying home prices in different zip codes. Once the borrower defines the specific location and type of house they’re looking for, Path lets them know if they’re on track to afford it. When they find the home they’re looking for, Path advises the user which account the downpayment funds should come from.

This is a noteworthy addition to Path, which originated as a retirement and education planning tool. With this week’s launch of homeownership planning, the tool still has one last financial frontier left– helping users financially plan to start a family.

Wealthfront allows users to invest up to $10,000 for free and currently manages $10.5 billion in assets for investors across the U.S. The company debuted as KaChing in 2009 in the early years of Finovate. Last June, Wealthfront was named to CB Insights’ Fintech 250 list and earlier this month received $75 million in funding, bringing its total raised to $205 million.

Share this:

Send Post Twitter LinkedIn Facebook

Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: AutoGravity, Blackhawk Network, BlueVine, Featurespace, FICO, Finastra, Finn.ai, Kabbage, Open Bank Project, SecureKey, Temenos, TESOBE, TIBCO Software, Wealthfront

On Finovate.com

  • Wealthfront Launches Homeownership Planning Tool.
  • Kabbage to Serve Larger Businesses by Expanding Line of Credit to $250k.
  • BlueVine Boosts Invoice Factoring Credit Line to $5 Million.
  • TESOBE’s Open Bank Project Powering Santander’s First Hackathon. Come see TESOBE’s Open Bank Project at FinovateEurope in March.

Around the web

  • Playtech integrates Featurespace’s real-time gameplay fraud detection into IMS.
  • ATB Financial joins SecureKey Concierge Authentication Service.
  • Blackhawk Network partners with Casey’s General Stores to enable ‘cash customers’ with Amazon Cash.
  • TIBCO and Singapore Polytechnic collaborate to address skills shortage for SMEs.
  • Finabank selects Temenos for end-to-end technology.
  • Finastra acquires FX e-trading platform, Olfa Soft SA.
  • 4finance Group to deploy AML and KYC compliance solutions from FICO.
  • Best of Show winner Finn.ai hires former Twitter executive Stephen Morse as new head of global strategic accounts.
  • Nissan Motor Acceptance Corporation (NMAC) joins AutoGravity platform.

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.

Share this:

Send Post Twitter LinkedIn Facebook

ThreatMetrix Acquired by RELX, Becomes Part of LexisNexis Risk Solutions

ThreatMetrix Acquired by RELX, Becomes Part of LexisNexis Risk Solutions
By Julie Muhn (@julieschicktanz) Posted on
Categories: Mergers & Acquisitions, ThreatMetrix

It’s the end of an era for ThreatMetrix. The authentication and fraud prevention company has been acquired by RELX Group for $830 million (£580 million). The deal is expected to close in the first half of this year.

The California-based company will operate as part of RELX’s Risk & Business Analytics under the LexisNexis Risk Solutions brand. LexisNexis, which offers authentication solutions to fight fraud, has been one of ThreatMetrix’s long-standing partners. LexisNexis leverages ThreatMetrix’s device intelligence solutions in its Risk Defense Platform and is planning further integration of ThreatMetrix’s capabilities in device, email, and social intelligence.

ThreatMetrix President and CEO Reed Taussig said that the previous partnership exemplifies “strong synergies” between the two organizations. Taussig added, “The benefits our shared customers have realized from the integration of our respective products are unmatched in the industry…. by combining the strength of LexisNexis Risk Solutions and ThreatMetrix into a single business, our customers, partners, and employees will benefit with a unique and compelling market opportunity.”

Founded in 2005, ThreatMetrix analyzes connections among locations, devices, identity, and threat intelligence, and combines this information with behavioral analytics to identify high risk transactions in real time. The company is known for its Digital Identity Network that analyzes 100 million transactions per day across 35,000 websites from 5,000 customers. This digital identity repository encompasses 1.4 billion unique online identities from 4.5 billion devices in 185 countries.

The Digital Identity Network is likely one of the reasons RELX was enticed to make the acquisition. In fact, the $830 million RELX paid for ThreatMetrix is $593 million higher than Pitchbook’s valuation of ThreatMetrix after the company’s 2014 funding round.

ThreatMetrix launched its Digital Identity Graph, which leverages information from the Digital Identity Network, at FinovateAsia 2016. The Digital Identity Graph gathers information on billions of transactions collected from tens of thousands of websites to build a user’s digital identity by analyzing connections between the user, their locations, behaviors, and devices. At FinovateSpring 2017, the company’s CTO, Andreas Baumhof, and Sr. Director of Product Management, Dean Weinert, launched SmartAuthentication for banks with multiple authentication methods. Earlier this month, ThreatMetrix teamed up with GlobalOnePay to power its Sentinel Defend, a fraud detection and scoring engine that protects cross-border transactions.

Share this:

Send Post Twitter LinkedIn Facebook

BehavioSec Closes $17.5 Million Series B

BehavioSec Closes $17.5 Million Series B
By Julie Muhn (@julieschicktanz) Posted on
Categories: BehavioSec, Funding

Behavioral biometrics company BehavioSec landed $17.5 million in funding today. This brings the company’s total funding to almost $26 million.

The Series B round was led by Trident Capital Cybersecurity with Cisco Investments, ABN AMRO, and existing investors Octopus Ventures and Conor Venture Partners also contributing. The Sweden-based company will use the funds to expand global operations and relocate its headquarters to the U.S. This comes after BehavioSec’s expansion to the U.S. last April.

Since it was founded in 2009, BehavioSec has secured billions of transactions for 40+ million users. The company’s flagship offering technology leverages machine learning to verify a user’s identity by how they interact with their device. This layered and continuous approach takes place in the background so as not to interfere with the user experience. At FinovateFall 2015, the company’s COO, Olov Renberg debuted BehavioSec On Demand. The solution is a transaction-based behavioral biometrics service in the cloud aimed to help organizations control who accesses that service without compromising the integrity of companies and individuals.

Alberto Yépez of Trident Cybersecurity cites two main reasons for the firm’s investment in BehavioSec. “We decided to invest in BehavioSec given production deployments authenticating user sessions for some of the most sophisticated financial institutions and governments around the world. In addition, the company continues to lead the innovation in behavioral biometrics through close partnership with leading cybersecurity vendors and government agencies, including DARPA,” said Yépez.

In an era when data breaches, hacks, and compromises occur on an almost monthly basis, there will be plenty of demand for online security companies for some time. That said, there will also be increased competition. Last October, Zighra launched a continuous authentication solution that leverages behavioral cues. Additionally, companies such as BioCatch, NuData Security, and IBM Security Trusteer all have offerings similar to BehavioSec’s behavioral biometrics solution.

At FinDEVr San Francisco 2015, the company’s VP of Engineering Ingo Deutschmann and COO Olov Renberg gave a presentation titled Behavioral Biometrics as a Service. Last November, BehavioSec teamed up with Crossmatch to add keystroke capture to Crossmatch’s authentication platform.

Share this:

Send Post Twitter LinkedIn Facebook

Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: BehavioSec, Ellie Mae, Figo, Meniga, Payoneer, ThreatMetrix

On Finovate.com

  • ThreatMetrix Acquired by RELX, Becomes Part of LexisNexis Risk Solutions.
  • figo Announces ‘License As A Service’ PSD2 Solution, RegShield.
  • BehavioSec Closes $17.5 Million Series B.
  • Payoneer Partners with Waze to Power Local Payments.

Around the web

  • Ellie Mae partners with COCC to offer its members access to Ellie Mae’s Encompass all-in-one mortgage management solution.
  • Meniga wins best App and best Web Solution at the Icelandic Web Awards 2017.

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.

Share this:

Send Post Twitter LinkedIn Facebook

LenddoEFL Launches in Vietnam

LenddoEFL Launches in Vietnam
By Julie Muhn (@julieschicktanz) Posted on
Categories: Entrepreneurial Finance Lab

Entrepreneurial Finance Lab (EFL) furthered its reach across Asia this week. The Bermuda-based company has formed a partnership with Orient Commercial Joint Stock Bank (OCB) in conjunction with Lenddo, an alternative credit scoring company with which EFL merged last year.

OCB will be the first bank to offer LenddoEFL’s psychometric scoring solution in Vietnam, a region where many citizens lack traditional financial and credit information. Using the scoring tools, OCB aims to serve more self-employed and salaried banking members. “This partnership with one of Vietnam’s leading banks marks our launch in Vietnam and part of our expansion plans as we provide fast, affordable and convenient financial products for more than 1 billion people worldwide,” said Richard Eldridge, CEO of LenddoEFL.

OCB Community Banking Director, Phu Nguyen said the bank chose the solution “due to proven performance of their solutions around the world.” Nguyen added, “We expect this partnership will allow us to grow quickly by approving more people without increasing our risk, shortening turnaround times and improving the onboarding experience for our clients.”

LenddoEFL leverages AI and advanced analytics, bringing together behavioral and digital data to help lenders in emerging markets underwrite loans and serve traditionally underserved borrowers. LenddoEFL has provided credit scoring, verification, and insights products to 50+ financial institutions, serving 6 million people and lending $2 billion.

EFL showcased its credit scoring tool at FinovateAsia 2012 in Singapore. In 2017, the company teamed with FICO to enhance its credit scoring methodology. Soon after, EFL was nominated as a finalist in the 2017 MIT Inclusive Innovation Challenge.

Share this:

Send Post Twitter LinkedIn Facebook

StreetShares Brings in $23 Million in Equity Funding

StreetShares Brings in $23 Million in Equity Funding
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, StreetShares

StreetShares has landed $23 million in equity funding, bringing the company’s total investment to $43 million. This comes just months after the military veteran-focused lending platform closed $10.3 million for its “shark tank meets eBay” approach to small business lending last August.

Today’s Series B round was led by Rotunda Capital Partners, with additional contributions from existing investors, including veteran-focused venture firm, Stony Lonesome Group. In a press release, Mark Rockefeller, CEO of StreetShares said, “This injection of capital allows us to continue to provide red-carpet treatment to our very special members— the veteran entrepreneurs, small business owners, government contractors, and impact investors—that make up our country’s next Greatest Generation.”

The StreetShares platform enables small business owners to pitch their loan requests to a community of investor members. Founded by military veterans, StreetShares is focused on offering financing for small businesses run by military veterans and their families, but serves non-veteran run small businesses, as well. The company offers loans with terms ranging from three to 36 months and lines of credit from $2,000 to $100,000. Investors can lend from $25 to $100,000 in Veteran Business Bonds and earn 5% interest.

StreetShares COO Mickey Konson said that the funding is a “huge step” in the company’s growth. He continued, “StreetShares is proud to fuel this special class of great American small businesses, and our partnership with Rotunda demonstrates that we are just getting started.”

At FinovateEurope 2015, the company’s CEO and co-founder Mark Rockefeller and COO and co-founder Mickey Konson showcased the StreetShares platform. The company began leveraging Title IV (Regulation A+) of the JOBS act in 2017 to allow unaccredited investors to lend to small businesses. It is now one of only a handful of P2P lending platforms open to unaccredited investors.

Share this:

Send Post Twitter LinkedIn Facebook