Author: Julie Muhn (@julieschicktanz)

Fiserv to Acquire Monitise for $89 Million

Fiserv to Acquire Monitise for $89 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Fiserv, Mergers & Acquisitions, Monitise

Financial services company Fiserv has agreed to acquire U.K.-based Monitise for 2.9 pence per share, which equates to $89 million.

The acquisition comes after a storied history for Monitise, which was valued at $2.6 billion at its peak in 2014 and had formed successful partnerships with IBM, Santander, Telefonica, Virgin Money, and others. In 2015, however, the company changed its business model because of increased competition from tech giants such as Alphabet and Apple who offered mobile payment services for free. After the pivot, Monitise wasn’t able to recover and ended up putting itself up for sale in 2015.

Founded in 2003, Monitise demoed its mobile banking platform on a Nokia flip phone at FinovateFall 2007, the same year it went public on the London stock exchange. In 2009, Monitise’s mobile payments partner, Metavante, was acquired by Fiserv rival FIS. Most recently, Monitise launched FINkit, a cloud-based platform, in 2016 to foster collaboration between banks and fintechs. BehavioSec, Currencycloud, and Envestnet | Yodlee were among the founding FINkit members.

Fiserv anticipates the acquisition, which is subject to shareholder approval, to “accelerate the Fiserv digital strategy and the development of a next-generation digital banking platform for leading financial institutions worldwide.” The Wisconsin-based company will foster Monitise’s FINkit program to help its bank clients accelerate adoption of fintech services.

Jeffery Yabuki, Fiserv President and CEO said, “Monitise has been a global pioneer and innovator in digital banking for more than a decade.” He added, “Combining its talented associates and advanced technologies with leading digital solutions from Fiserv will expand our clients’ ability to provide differentiated experiences to their customers.”

Founded in 1984, Fiserv most recently presented at FinDEVr New York 2017, where the company’s Sr. Product Manager, Jon Zimmermann, and VP of Electronic Payments, Paul Diegelman, addressed the audience in a presentation titled Payments Processing: Bank-Grade Standards, Now Available to Anyone. Yesterday, the company announced that it will help banks and credit unions join the Zelle P2P payment network via its Turnkey Service for Zelle.

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Kony Appoints Former Hewlett Packard and NCR Exec as Chief Revenue Officer

Kony Appoints Former Hewlett Packard and NCR Exec as Chief Revenue Officer
By Julie Muhn (@julieschicktanz) Posted on
Categories: Kony

Mobile app development and omni-channel deployment company, Kony announced this week it has appointed Bruce Dahlgren (pictured) as Executive Vice President and Chief Revenue Officer.

Dahlgren assumes this newly-created position to further expand Kony’s global presence and capture more of the market. He has more than 30 years of experience in the IT industry, having most recently served as Senior Vice President, Enterprise Services and Managing Director, Asia Pacific and Japan Region for Hewlett Packard for almost five years. Prior to working at HP, Dahlgren held executive roles at Lexmark International, AT&T and NCR.

Kony CEO Thomas E. Hogan described Dahlgren as “an outstanding executive with a proven track record of success and results.” Specifically, Hogan applauded Dahlgren’s international experience and “reputation for the highest levels of integrity and leadership.”

Founded in 2007, Kony enables banks to design, develop, and visualize device-agnostic applications deployed across multiple channels. Last month, the company entered into a strategic partnership with Diebold Nixdorf in which Diebold Nixdorf white-labeled Kony’s mobile application suite, branding it DN Mobile. As part of the agreement, Diebold Nixdorf also acquired a minority equity stake in Kony. Earlier this year, Kony launched AppVantage to help organizations quickly develop customizable mobile apps from pre-packaged components. At FinovateFall 2011, the company debuted a commercial banking app.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: CrowdFlower, DefenseStorm, Fiserv, Icon Solutions, Jack Henry, Kony, Monitise

On Finovate.com

  • Kony Appoints Former Hewlett Packard and NCR Exec as Chief Revenue Officer.
  • Fiserv to Acquire Monitise for $89 Million.
  • CrowdFlower Raises $20 Million to Bloom AI Adoption

Around the web

  • Computerworld Recognizes Jack Henry as one of the 2017 Best Places to Work in IT.
  • Icon Solutions expands into the Hungarian market via partnership with T-Systems Hungary.
  • DefenseStorm hires Steve Soukup as Chief Revenue Officer.

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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FinDEVr London 2017: Welcome to Day Two

FinDEVr London 2017: Welcome to Day Two
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinDEVr 2017 London

This is FinDEVr’s first show in London, and we are loving it! After yesterday’s fun and thought-provoking day full of fintech developer presentations proved to be one for the record books, today we’re ready for the second round.

The schedule will be quite similar to yesterday. Today, however, we are hosting a panel discussion which will take place on the main stage between the final presentation and the open bar and happy hour.

Presentation Session: 9:30 to 10:55

  • 09:35 TestDevLab
    Mobile Automation Security Scanner Tools
  • 09:55 Streamdata.io
    Coding real-time trading/investments on your mobile device in less than 15 mn with any API? Yes, we can.
  • 10:15 Harborx
    When Trading Meets Gaming
  • 10:35 eSignLive by VASCO
    E-Signatures for Mobile Account Openings & Customer Behaviour Insights

<<Coffee Break: 10:55 to 11:30>>

Presentation Session: 11:30 to 12:30

  • 11:30 aixigo
    Digital Wealth Management with APIs
  • 11:50 Simility
    Fraud Mutates – Detect, Understand and Block It
  • 12:10 Aerospike
    Rapid Application Design in Financial Services

<<Lunch Roundtable Discussions: 12:30 to 13:30>>

  • 12:30 ISARA’s CEO, Scott Totzke leading discussion: We’re all in it together: Making global fintech crypto-agile
  • 12:30 LeanXcale’s CEO & Co-Founder, Ricardo Jimenez-Peris leading discussion: Let’s get technical: Data management for fintech
  • 12:30 Aerospike’s CTO & Founder, Brian Bulkowski leading discussion: The great beyond: Innovation in your enterprise

Presentation Session: 13:30 to 14:50

  • 13:30 CASHOFF
    Collecting and Analyzing Financial Data
  • 13:50 eWise
    Managing Transition to Open Banking and PSD2 Account Aggregation
  • 14:10 Avaloq
    Avaloq Open Platform
  • 14:30 IdentityMind Global
    Entity Link API

<<Coffee Break: 14:50 to 15:20>>

Fintech Panel: 15:20 to 16:00

Hosted by David Penn, Analyst at Finovate

<<Networking with open bar & appetizers: 16:00 to 17:00>>

Here are a few reminders before heading out to today’s event:

  • Please remember to bring your name badge with you
  • Don’t forget to download the FinDEVr London event app. You can use the app to schedule meetings, vote for your favorite presentations daily, access the attendee list and more. To download the app, search FinDEVr in the Apple App Store or Google Play Store. Join by logging in with the email address you used to register for the event. If you’re not able to join, please email london@findevr.com.
  • Free coat and luggage check is available today between the west and east Pennington Street entrances

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Payfone to Power Mobile ID Authentication for Zelle

Payfone to Power Mobile ID Authentication for Zelle
By Julie Muhn (@julieschicktanz) Posted on
Categories: Payfone

There’s been a lot of hype around real-time P2P payment app Zelle, which is launching at select banks this month, aiming to take on Venmo and PayPal as the leading P2P payment platform. Facilitating the launch, Zelle has tapped New York-based Payfone as a key partner.

Payfone signed an agreement with Early Warning Systems, the parent company of Zelle (formerly clearXchange), which was launched in 2011 in a joint effort among Bank of America, Capital One, JP Morgan Chase, U.S. Bank and Wells Fargo. Under the agreement, Zelle will leverage Payfone’s mobile identity authentication and risk assessment solutions to streamline client enrollment and authentication for transactions.

Rodger Desai, Payfone CEO, said that the company is “uniquely positioned” to provide “instant mobile authentication,” something he described as a crucial element in faster payments. Desai added, “Collaborating with Early Warning to help add further seamless security to Zelle is a shining example of how Payfone makes customer transactions safer and smoother.”

Eric Woodward, group president of the Risk Solutions business at Early Warning, said that Payfone will “significantly simplify” enrollment for new Zelle users via a “non-intrusive” user experience. “This helps us balance the requirements for speed and security in the faster payments space,” Woodward said.

Founded in 2008, Payfone originated as a mobile payments company. It has since pivoted to focus on authentication solutions, processing millions of signals per day to authenticate and score transactions with its new Lotus Trust Score. The company currently authenticates 10 million transactions per day and by year end it anticipates that number will reach 50 million transactions.

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Cardlytics Closes $12 Million Round

Cardlytics Closes $12 Million Round
By Julie Muhn (@julieschicktanz) Posted on
Categories: Cardlytics, Funding

Card-linked offers company Cardlytics has raised $12 million, according to an SEC filing and a report from BizJournals, which reported the round was led by a new, strategic investor with contributions from existing investors. The name of the strategic investor was not disclosed. This round brings Cardlytics’ total funding to $200 million.

Atlanta-based Cardlytics was founded in 2008. The company’s first product was a card-linked offers solution, Cardlytics Direct. This flagship product allows financial institutions to provide merchant-funded rewards within its online or mobile banking application to boost customer loyalty. Almost 10 years later, big-name financial institutions such as Bank of America, PNC, MasterCard, and Fiserv use Cardlytics Direct.

The hype of card-linked offers peaked around 2012, and Cardlytics appears to have undergone a bit of restructuring since then. In April of 2016, the company laid off 15 percent of its workforce and while there is still demand for consumer rewards, the company’s attention has expanded to capitalizing on the data gathered from consumer interactions. In 2016, Cardlytics began leveraging the wealth of consumer spend data, launching Platform Solutions for retailers and marketers to gain insights on consumer spending behavior and optimize marketing strategies.

Cardlytics demoed its geolocation application at FinovateFall 2013. Scott Grimes is CEO and cofounder.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Bill.com, Expensify, Featurespace, Payfone, PayNearMe, TSYS

On Finovate.com

  • Cardlytics Closes $12 Million Round.
  • Payfone to Power Mobile ID Authentication for Zelle.

Around the web

  • PayNearMe facilitates $1.6M in child support payments for the state of Michigan.
  • TSYS partners with Featurespace to deliver real-time decision capabilities.
  • Expensify and Bill.com deepen integration for shared clients.

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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FinDEVr London: Around the Corner and Across the Globe

FinDEVr London: Around the Corner and Across the Globe
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinDEVr 2017 London

We’re nearing the end of the work week and shifting our focus to FinDEVr London, which starts on Monday, 12 June. This is the first FinDEVr outside of the U.S. and marks our most international FinDEVr event to date. The presenter map (above) highlights the geographic diversity of this year’s presenting companies.

Don’t forget to register before the event– tickets are still available, but act soon! Here are a few, quick reminders to help you get ready:

Where
Next week’s show will be held at Tobacco Dock in London (Tobacco Quay, Wapping Ln, St Katharine’s & Wapping, London E1W 2SF)

When
The first presentation takes place at 9:30 AM on 12 June and registration opens at 8:30 AM so feel free to come early, take advantage of the free breakfast, and save your seat. Check out the full agenda on our website.

Who
The agenda is loaded with fintech companies working on relevant issues for the global finance industry. View the presenter list on our website, check out previews of the companies’ presentations, and read interviews from company representatives on our blog.

Attendees traveling to FinDEVr London will be coming in from all over the world. Check out the presenter map to see the locales:

 

FinDEVr London 2017 is sponsored by TestDevLab.

FinDEVr London 2017 is partnered with Aite Group, Banking Technology, BayPay Forum, BiometricUpdate.com, Brave New Coin, Breaking Banks, Byte Academy, The Canadian Trade Commissioner Service, Celent, Cointelegraph, Colloquy, Cooper Press, Distributed, Economic Journal, Empire Startups, Femtech Leaders, Finmaps, Fintech Finance, Global Data, Harrington Starr, Holland Fintech, Level39, London Tech Week, Mapa Research, Mercator Advisory Group, The Paypers, Plug and Play, SecuritySolutionsWatch.com, SME Finance Forum, Startupbootcamp, Swiss Finance + Technology Association, and Women Who Code.

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Financeit Receives New Funding Capacity of $85 Million

Financeit Receives New Funding Capacity of $85 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinanceIt, Funding

Point-of-sale consumer financing company Financeit announced $85 million in new funding capacity this week. The funds are made available to the Canada-based company through a $75 million renewable securitization facility and $10 million warehouse line of credit.

The warehouse line of credit comes from a major Canadian life insurance company. While Financeit declined to name the specific contributor, the company said it is a “major” player in the space. Financeit COO Casper Wong said, “We have a history of managing successful securitization programs, and we’re thrilled to be launching this new partnership.” He added, “We see this as the natural evolution of our growth and a major milestone. The company is a known leader in this space and we’re proud to be working with them.”

Financeit will use the new funds to “execute on its growth strategy.” Since acquiring TD Bank’s home improvement financing assets in September 2016, Financeit has experienced notable growth. The company’s founder Michael Garrity said last December that the deal had “transformed the business” and doubled its loan value and revenue. Because of this success, Garrity went on to state that he is open to considering more acquisitions.

In October 2016, Financeit closed on $17 million in venture funding from the Pritzker Organization and DNS Capital to fund the $339 million purchase of TD Bank’s home improvement financing assets and to fuel the company’s growth. Earlier in 2016, Financeit debuted its direct-to-consumer financing platform, Financeit Direct, which enables consumers to apply for funds via their mobile device. At FinovateFall 2014, Financeit made its U.S. debut in conjunction with FIS.

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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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