Author: Julie Muhn (@julieschicktanz)

Stratumn Lands $7.8 Million, Forms Strategic Partnership with NASDAQ

Stratumn Lands $7.8 Million, Forms Strategic Partnership with NASDAQ
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Stratumn

Regtech blockchain startup Stratumn just landed $7.8 million in Series A financing. This sum brings the company’s total funding to just over $8 million when combined with the $670k seed money it received in March of 2016.

The round was led by CNP Ventures, with contributions from Otium Venture, Nasdaq and Digital Currency Group. Stratumn will use the funds to accelerate development by focusing on research, product design, and business development. The company will also address human resources, with a plan to double its 15-person workforce by the end of next year. While Stratumn has already developed 10 projects with NASDAQ, along with a handful of France-based corporations– including CNP Assurances, Allianz France, Thales, Bureau Veritas and Bouygues Immobilier.

Stratum also announced today that it is deepening its collaboration with the Nasdaq via a new, strategic partnership. The co-research and development partnership aims to leverage Proof of Process Technology “to enhance the software solutions and products for the capital markets, particularly in Nasdaq’s Market Technology business and its own enterprise technology unit.”

In a press release, Stratumn CEO Richard Caetano said:

“We are very confident about Stratumn’s development prospects in the upcoming months and years. The successful closing of this round, as well as our investor’s commitment as strategic partners, is rocket fuel which will power the development and launch of Proof of Process Technology.”

Above: Stratumn CEO Richard Caetano presenting at FinDEVr New York 2016

Founded in 2015, Paris-based Stratumn’s Proof of Process technology helps streamline and secure the exchange of data among partners, customers, and regulators by leveraging the blockchain. At FinDEVr New York 2016, Caetano, gave a presentation titled Building and Securing Smart Workflow Using Chainscript and the Stratumn Blockchain Development Platform.

Want to see more fintech aimed at developers? FinDEVr London is happening next week on 12 & 13 June. Register today to save your spot.

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Klarna Receives Investment from Brightfolk

Klarna Receives Investment from Brightfolk
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Klarna

Online payments company Klarna announced a major new strategic investor this week. Brightfolk has reportedly become a qualified owner of Klarna, meaning it has purchased at least 10% of the company. Brightfolk is held by Anders Holch Povlsen, owner of European fashion company, BESTSELLER. Povlsen will acquire shares from existing shareholders General Atlantic, DST Global and Niklas Adalberth, all of whom will retain a stake in Klarna.

Specific terms of the deal were undisclosed, but based on Klarna’s most recent valuation of $2.25 billion we can extrapolate that Brightfolk contributed $225 million or more in equity funds. TechCrunch reported that today’s deal is an up round, meaning Klarna is now valued at more than $2.25 billion.

Writing in the press release announcing the investment, Sebastian Siemiatkowski, Klarna co-founder and CEO said, “Klarna has successfully been partnering with BESTSELLER for a number of years. This has given him a firsthand insight into the strengths of our offerings and therefore a unique ability to strategically support the future development of the company. I am delighted to welcome such a strong partner into Klarna.”

Klarna helps 70,000 merchants offer payment solutions to 60+ million users in Europe and North America. Founded in 2005 in Stockholm, Klarna is active in 18 countries. The company is now headquartered in Ohio with 1,500 employees working in offices in Columbus, Ohio; San Francisco; New York; Tel Aviv; and throughout Europe.

Klarna demonstrated its online payment-processing service at FinovateSpring 2012. In 2016, the company experienced a 50% increase in transaction volumes YOY. Also in 2016, 12 million users tried Klarna’s services for the first time. Earlier this year, the company acquired online payment provider BillPay from Wonga for $75 million.

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Fidor Solutions Brings on Former ABN Amro Exec as CIO

Fidor Solutions Brings on Former ABN Amro Exec as CIO
By Julie Muhn (@julieschicktanz) Posted on
Categories: Fidor Bank

Fidor Solutions (formerly Fidor Bank) has a new secret weapon for its expansion strategy. The Germany-based company bolstered its team this week with the appointment of Geert Ensing (pictured) as interim Cheif Information Officer.

Ensing has a background in retail and commercial banking IT, having led complex IT infrastructures and managed IT outsourcing. He most recently served as Executive Vice President of IT at ABN AMRO. Ensing previously worked as an executive advisor for financial institutions and has advised IT service providers on digitalization, IT-legacy strategy, IT-transformation, and governance of IT-sourcing. His geographical range of service is just as diverse; he has worked with FIs in The Netherlands, Belgium, Germany, the Middle East, Finland, Denmark, Italy, and in the U.K.

Fidor Chief Commercial Officer Gé Drossaert described Ensing’s expertise as “essential” for the company’s international expansion strategy. In a press release, Drossaert said, “Geert’s role will not only focus on Fidor Bank’s run the bank infrastructure, but also optimizing the environment for B2B Services, such as Fidor Payments Avenue and Fidor Bank As A Service.”

Fidor, which is derived from the Latin word for trust, launched as a bank in 2009. In July of 2016, the bank was acquired by Groupe BPCE of France and now operates as Fidor Solutions, bringing banking expertise and consulting services to banks and non-banks alike. Just prior to last year’s acquisition, Fidor presented at FinDEVr New York on How to Start Your Digital Bank – Mobile Apps and APIs Included.

For more fintech developer content with a European flavor, check out FinDEVr London next week. The developer-specific conference will be held at the Tobacco Dock in London on 13 & 12 June. Tickets are still available through this week so register online today.

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FinDEVr APIntelligence

By Julie Muhn (@julieschicktanz) Posted on
Categories: FinDEVr APIntelligence

Our first developers conference in the U.K. is just days away! Join us for two days of developer-focused presentations, demonstrations, and conversations at FinDEVr 2017 London, June 12 and 13. Stop by our registration page today and save your spot.

On FinDEVr.com

  • Fidor Solutions Brings on Former ABN Amro Exec as CIO
  • Expensify Exceeds 35,000 Customers
  • 3 Steps to Take During the Countdown to GDPR and PSD2

Alumni updates

  • DefenseStorm experiences 100% customer renewal rate for second consecutive year.
  • The largest bank in the Philippines, BDO Unibank, reups with Fiserv.
  • NuData wins CNP 2017 Customer Choice Award for Best Identity Verification/Authentication Solution
  • Symbiont partners with PrivateMarket.io to build alternative investment marketplace for closed-end funds.
  • AutoGravity Brings its Auto Loan Financing Solution to the Garden State.
  • Clients of Nodus Technologies gain access to PCI-validated P2PE technology courtesy of new partnership with Bluefin Payment Systems.

Stay current on daily news from the fintech developer community! Follow FinDEVr on Twitter.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Coinbase, DefenseStorm, Ethoca, Fidor Bank, HedgeCoVest, Klarna, Moven, Newchip, StrategyCorps, ThreatMetrix, Zopa

On Finovate.com

  • Fidor Solutions Brings on former ABN Amro Exec as CIO.
  • European Alums Shine in FinTechCity’s FinTech50 2017 Roster.
  • Klarna Receives Investment from Brightfolk
  • Newchip Helps New Investors Own a Piece of the Startup Economy.

Around the web

  • PSCU partners with Ethoca to improve CNP fraud loss recoveries for CUs.
  • Zopa opens development centre in Barcelona, Spain ahead of bank launch.
  • HedgeCoVest launches DEPLOY to handle day-to-day operations of separately managed accounts
  • StrategyCorps BaZing rewards-based mobile app has deployed nearly 400k geofences in conjunction with local deals
  • Western Union reveals pilot Coinbase integration.
  • DefenseStorm experiences 100% customer renewal rate for second consecutive year.
  • Moven fintech partnership wins CANSTAR Award for innovation excellence.

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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ThreatMetrix Teams Up with Gemalto

ThreatMetrix Teams Up with Gemalto
By Julie Muhn (@julieschicktanz) Posted on
Categories: ThreatMetrix

Authentication and fraud prevention company ThreatMetrix announced a new partnership with digital security company Gemalto. The two fintech players will offer “holistic authentication” to banks, payment services providers, credit card networks, international payment transfer companies, and fintech companies across the globe. Specifically, the companies have joined forces today to combine insights from ThreatMetrix’s Digital Identity Network with Gemalto’s authentication solutions. The user-friendly security solutions help financial institutions expand their online offerings securely.

“Authenticating digital identities has become essential for the financial services industry,” says Pascal Podvin, SVP of field operations for ThreatMetrix. “This allows financial institutions to deliver superior customer experiences while driving online revenue growth. Crucially, this also prevents massive losses from rising fraud attacks, particularly in cases of identity spoofing.” Podvin added that today’s partnership also helps banks “deliver superior customer experiences” and prevent “massive losses from rising fraud attacks.”

ThreatMetrix’s Andreas Baumhof (CTO) and Dean Weinert (Sr. Director Product Management) demo at FinovateSpring 2017

Founded in 2009, the San Jose-based company verifies more than 20 billion annual transactions supporting 30,000 websites and 4,500 customers across the globe through its Digital Identity Network. The network feeds into ThreatMetrix’s Digital Identity Graph. Launched at FinovateSpring 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 Product Management, Dean Weinert, launched SmartAuthentication for banks with multiple authentication methods.

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Expensify Exceeds 35,000 Customers

Expensify Exceeds 35,000 Customers
By Julie Muhn (@julieschicktanz) Posted on
Categories: Concur, Expensify

Travel and expense management company Expensify announced today it has surpassed 35,000 global customers this month. Contributing to this milestone, the San Francisco-based company has added about 15,000 new customers in the U.S. this year alone.

This accomplishment places Expensify as the second most widely used expense management company, positioned just behind fellow Finovate alum, Concur, which demoed at FinovateSpring 2012. And while Expensify has more customers than Concur, Concur’s average customer size is larger than Expensify’s — giving Concur more active users than Expensify.

In the blog post announcement, Expensify also reported it has updated its mobile app. The consumer-facing app has moved the Expenses, Reports, and Trips lists behind the hamburger menu. The company notes that this is significant because it exemplifies Concierge’s AI automation capabilities. The Concierge bot, which we featured after its launch in 2016, automates expense management tasks such as credit card matching, reimbursable/non-reimbursable splits, and expense policy analysis. Writing about the app update in the Expensify blog, the company’s CEO David Barrett said, “if everything is configured correctly, you should almost never need to look at them yourself, because Concierge is looking at them for you.”

Expensify launched in 2008 with its flagship receipt-scanning app and a simple motto, “Expense reports that don’t suck!” In the almost-10 years since then, the company has shipped multiple updates, expansions, and new products that “don’t suck.” Most recently, at FinDEVr Silicon Valley 2016, Expensify presented Bedrock, an open sourced relational database management system. Last month, the company announced it partnered with Finovate alum Xero to provide an in-house expense management system for the New Zealand-based company. Expensify last demoed at FinovateSpring 2013, where the company showed off its integrated invoicing technology.

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3 Steps to Take During the Countdown to GDPR and PSD2

3 Steps to Take During the Countdown to GDPR and PSD2
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinDEVr 2017 London, FinDEVr London 2017 Roundtable

The run up to the General Data Protection Regulation (GDPR) and the second Payment Services Directive (PSD2) in Europe has created a few opportunities and multiple challenges for banks and fintechs alike. As banks scramble to understand the changes and adapt their policies, a handful of fintech companies has seized the opportunity, launching solutions to help banks comply with the new regulations. No matter if you’re a bank or a fintech, early preparation is key to success. Here are a few steps to take before the regulations hit:

Prepare your team

Communication is key to any large endeavor, and this is no exception. Take the time to brief members of your team; not only the ones whose jobs will be directly impacted by GDPR and PSD2 changes, but also those who have a less direct connection. Building a fundamental understanding of data security and an open API mindset into your company or bank’s culture can effect the passion and drive behind the adoption of new tools and innovations to comply with the new regulations.

Revamp consent disclosures

Under GDPR, companies can no longer have complicated, illegible terms and conditions. End users must be able to access these documents without difficulty and they must be presented in an easy-to-understand format. Because legal ramifications hinge on these documents, it is key to include all necessary elements to protect your company, bank, and employees.

Implement early

The earlier you implement changes, the more time you will have to adjust and adapt your policies (and re-adjust and re-adapt). You’ll be better off, as well. If you’re a fintech, get ahead of your competitors by offering a product that facilitates GDPR and PSD2 compliance. If you’re a bank, start shopping now for third-party solutions that span the scope of your needs and fit your existing model.

At FinDEVr London next month, NuCypher CEO MacLane Wilkison, along with the company’s CTO, Michael Egorov, will be leading a roundtable discussion titled Regulatory compliance and data protection in the era of GDPR and PSD2. Check out the FinDEVr London website for the full agenda and information on how you can become involved in the discussion. Register today and save your spot.

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Signicat Launches Mobile Authentication

Signicat Launches Mobile Authentication
By Julie Muhn (@julieschicktanz) Posted on
Categories: Signicat

Identity assurance provider Signicat added a new tool this week to help banks meet new PSD2 standards and reduce customer abandonment. The mobile authentication solution, MobileID, leverages the user’s device to offer fast onboarding while providing strong customer authentication and identity assurance.

MobileID’s multi-factor authentication offers a low-friction way for banks to get ahead of upcoming PSD2 compliance standards, which mandate that the consumer must authorize transactions over €30 with at least two-factor authentication. The new solution supplies three factors of authentication: the device (something the user has), a PIN (something the user knows), and a biometric fingerprint (something the user is).

“A speedy onboarding and application experience is a must for financial services providers who don’t want to lose 40% of their potential customers at this stage,” said Gunnar Nordseth, CEO, Signicat. “Keeping these customers means giving them the best experience possible when accessing services and authorizing transactions – MobileID gives customers that simple experience while meeting PSD2 requirements way ahead of these regulations being adopted.”

At FinovateEurope 2017, the company demonstrated Signicat Assure, which combines national e-identities, commercial e-identities, and multiple other methods that offer a fast way to verify the customer’s identity for onboarding. Signicat also showed off Signicat Sign, a digital signature solution that ensures the origin and integrity of the document while maintaining non-repudiation from the sender.

Earlier this month, the Norway-based company teamed up with Rabobank to launch a joint Digital Identity Service Provider branded as Rabo eBusiness. For more on Signicat, check out our overview of the company’s on-demand, digital identity verification service. Signicat was founded in 2007.

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FinDEVr APIntelligence

By Julie Muhn (@julieschicktanz) Posted on
Categories: aixigo, BBVA, CardLinX, eWise, Expensify, FinDEVr APIntelligence, Fiserv, Harborx, IBM, Markit, NuCypher, TestDevLab, Trulioo, Twilio, WorldPay, Xero

Our first developers conference in the U.K. is next month. Join us for two days of developer-focused presentations, demonstrations, and conversations at FinDEVr 2017 London, June 12 and 13. Stop by our registration page today and save your spot.

On FinDEVr.com

  • Trulioo and the Regtech Revolution: How Smaller Teams Tackle the Compliance Challenge.
  • Inside BBVA’s Open API Marketplace

Alumni updates

  • NuCypher earns finalist spot in BBVA Open Talent 2017. Join NuCypher at FinDEVr London, Jun 12 & 13.
  • Expensify exceeds 35,000 global customers, adding Xero, HappyFresh, GoCardless, and Adroll as clients
  • Cisco and IBM team up on security.
  • Glenmede taps IHS Markit for data management.
  • Bank of Sydney replaces its digital banking platform with DigitalAccess from Fiserv.
  • eWise integrates its Aegis data aggregation platform into Backbase’s Open Banking Marketplace.
  • Xero Partners with Expensify for In-House Expense Management.
  • PYMNTS.com features The CardLinx Association’s success.
  • Xero expands online-invoice payment options in Xero for Australia.
  • Worldpay tests payments in virtual reality

Stay current on daily news from the fintech developer community! Follow FinDEVr on Twitter.

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Backbase and eWise Team Up

Backbase and eWise Team Up
By Julie Muhn (@julieschicktanz) Posted on
Categories: Backbase, eWise

Omni-channel banking provider Backbase and data aggregation company eWise have joined forces this week. The two veteran fintechs have formed a partnership that will offer Backbase bank clients access to eWise’s account aggregation technology via the Backbase Open Banking Marketplace.

Backbase’s Open Banking Marketplace, which launched in 2015, now hosts 53 fintech APIs which offer banks access to a range of services. The Backbase Open Banking Marketplace also helps banks ready themselves for EU PSD2 regulatory requirements.

Today’s launch of eWise’s Aegis in Backbase’s Marketplace gives end users a full picture of their financial well-being. The platform allows users to aggregate, manage, and share their financial account information from multiple banks and financial institutions. At FinovateAsia 2016, eWise showcased the Aegis API along with TrackWealth, the company’s personal digital wealth management tool for Singaporean investors.

In the press release, eWise CEO David Hamilton said, “Through integrating the eWise Aegis platform into the Open Banking Marketplace, we can further help financial institutions to transition to PSD2 and Open Banking and manage multiple financial data channels: Direct & In-Direct channels. The eWise Aegis platform offers a global approach to easily connect all of the users’ accounts.”

Founded in 2003, Backbase helps banks create a seamless customer experience for their end users. At FinovateEurope earlier this year, the company won Best of Show for demonstrating how its platform creates a personalized customer journey with a simplified interaction. Headquartered in Amsterdam, Backbase also has offices in Atlanta, London, and Singapore. Jouk Pleiter is CEO and cofounder.

eWise will be presenting at FinDEVr London next month as a part of London Tech Week. We interviewed the company’s CTO, Allan See, as a part of our FinDEVr Feature series. eWise has raised more than $26 million since it was founded in 2000. The company holds offices in Switzerland, the Philippines, the U.K., Australia, the U.S. and Singapore. Interested in seeing how eWise works from a developer’s point-of-view? Check out FinDEVr London and register today.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Entrepreneurial Finance Lab, HedgeCoVest, Holvi, M1 Finance, Prosper

Around the web

  • Estonia’s e-Residency program partners with Holvi to launch borderless digital banking for its borderless digital nation.
  • Prosper Closes $495 Million Securitization Transaction.
  • EFL is a finalist in the WSJ’s Financial Inclusion Challenge.

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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