Author: Julie Muhn (@julieschicktanz)

BizFi Lands $20 Million from Metropolitan Equity

BizFi Lands $20 Million from Metropolitan Equity
By Julie Muhn (@julieschicktanz) Posted on
Categories: Bizfi, Funding

Screen Shot 2016-06-30 at 8.24.47 AM

Who said alt-lenders are going out of style. Small business financing provider BizFi garnered some funding of its own today. Metropolitan Equity Partners, which has been a backer of the New York-based company since 2013, funded BizFi with $20 million this week.

Combined with the company’s December 2015 round of $65 million, this brings its total capital to $85 million. BizFi will use the round to bolster its small business financing products, offer funding faster, and boost marketing to small-to-medium sized businesses.

Launched in 2005, BizFi offers a host of funding options, including equipment financing, invoice financing, SBA loans, and more. At FinovateFall 2015, BizFi showed its aggregation engine that supplies 35 online and offline partners, including OnDeck, Kabbage, and Bluevine, with a white-labeled, co-branded funding solution.

In April, Stephen Sheinbaum, the company’s founder, was featured on CNBC’s Squawk Box. During the segment Sheinbaum says, “I think you’re going to see the major banks and the community banks leverage our technology and our ability to make decisions in fractions of seconds, as opposed to the weeks and months it takes now.” BizFi’s marketplace and funding technologies have furnished $1.7 billion in financing to more than 30,000 small businesses.

Share this:

Send Post Twitter LinkedIn Facebook

Kreditech Launches Online POS Financing Solution

Kreditech Launches Online POS Financing Solution
By Julie Muhn (@julieschicktanz) Posted on
Categories: Kreditech

Screen Shot 2016-06-29 at 8.30.21 AM

Consumer financing company Kreditech announced a new business line today. In an effort to empower underbanked individuals, the company launched a new POS financing solution called Monedo Now. It gives online shoppers more payment flexibility with instant financing of up to $5,550 (€5,000) for up to 36 months at rates comparable to local banks.

POS Financing_Kreditech_Monedo

The first partner to go live with the solution is PayU Global, a payment services provider who recently launched a beta test with one of its merchant clients. Kreditech plans to expand the service. Alexander Graubner-Müller, CEO and co-founder said, “We are already in talks with further clients in the e-commerce, travel and other online sectors and look forward to providing our innovative technology as an online payment method in the checkout process.”

Screen Shot 2016-06-29 at 10.42.45 AMKreditech’s Sebastian Diemer and Alexander Graubner-Müller, presenters at FinovateSpring 2014.

Monedo Now uses Kreditech’s credit-scoring technology which underwrites risk on thin-file credit clients. At FinovateSpring 2014, the company showed off its algorithm that provides a risk score of the customer by studying their financial situation at the time of their application without pulling in historical data. Kreditech uses 20,000 data points, updated every minute, to offer 24/7 access to credit decisioning for anyone in 35 seconds.

Kreditech plans further integrations with companies using its Credit-as-a-Service API which offers support for financing more than just physical goods at the POS. The company will support financing for online services and travel purchases as well as direct integrations with online wallets, prepaid cards and bank offerings.

In March, Kreditech closed a $103 million Series C funding round from contributors such as World Bank Group’s International Finance Corporation, Blumberg Capital, and Peter Thiel. That round boosted the company’s total funding to $151 million.

Share this:

Send Post Twitter LinkedIn Facebook

FinDEVr APIntelligence

By Julie Muhn (@julieschicktanz) Posted on
Categories: Avalara, Cloud Lending, Fidor Bank, FinDEVr APIntelligence, On Deck Capital, OutsideIQ, Xero

FinDEVrSV16-LogoV2(wdate)Our FinDEVr New York developer showcase was a success! FinDEVr Silicon Valley will be held October 18 & 19 in Santa Clara. Register today and save.

On FinDEVr.com

  • Avalara Adds New Stripe Integration, Earns Dual Honors at American Business Awards
  • Apply Now to Present at FinDEVr Silicon Valley 2016!

The latest from FinDEVr New York 2016 presenters

  • Canadian Government Selects OutsideIQ to Bring DDIQ to Brazil and London
  • Wired UK profiles Fidor, “the fintech bank run by its customers.”
  • OnDeck launches Accountant Advisor Program to help accountants arrange financing for their small business clients.

Alumni updates

  • Major update to Xero’s online invoicing technology to help businesses avoid phishing scams.
  • Fintech profile interviews Snehal Fulzele, Cloud Lending CEO.

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

Share this:

Send Post Twitter LinkedIn Facebook

GBG Group Agrees to Acquire IDScan Biometrics

GBG Group Agrees to Acquire IDScan Biometrics
By Julie Muhn (@julieschicktanz) Posted on
Categories: IDscan Biometrics, Mergers & Acquisitions

Screen Shot 2016-06-29 at 6.00.07 AM

It was a fast turnaround for FinovateEurope 2016 Best of Show winner IDScan Biometrics, a document authentication and facial recognition company. The London-based company today announced it is being acquired by identity intelligence company GB Group.

The companies anticipate the deal will close for $50 million (£37 million), with another $10.7 million (£8 million) contingent on reaching revenue and EBITDA targets 18 months after close. The deal is expected to add to GBG Group’s earnings per share in the first 12 months after the acquisition.

24570175424_b52dadc87a_kCEO Tamlyn Thompson and Dr. Zaher Zaidan, CFO, demoed IDScan Biometrics’ facial recognition algorithm.

IDScan offers a digital onboarding suite that reduces manual data entry and offers KYC and facial recognition tools for automation, speed, and efficiency. The company’s document-scan offering uses artificial intelligence and a digital library containing thousands of documents. At FinovateEurope 2016, the company demonstrated how its facial recognition algorithm tests a user’s face against the image on their ID.

IDScan brings more than 1,000 global clients to the table, including American Express, Barclays, and Gatwick Airport. GBG CEO Richard Law said, “GBG has followed IDscan Biometrics over the years and we have seen this business grow strongly, winning significant enterprise customers.”

Share this:

Send Post Twitter LinkedIn Facebook

Canadian Government Selects OutsideIQ to Bring DDIQ to Brazil and London

Canadian Government Selects OutsideIQ to Bring DDIQ to Brazil and London
By Julie Muhn (@julieschicktanz) Posted on
Categories: OutsideIQ

Screen Shot 2016-06-28 at 9.52.41 AM

Toronto-based OutsideIQ has been selected by the Canadian government to showcase their products on two Canadian fintech trade missions, one to Brazil and the other to London.

The company will meet with local financial institutions and others in the fintech industry. OutsideIQ’s CEO Dan Adamson said that the missions will enable the company “to collaborate with other fintech leaders and find partners that will adopt and implement [its] solutions.”

OutsideIQ will showcase its DDIQ platform which it debuted at FinovateSpring 2016. The product is already being used at “top, global financial institutions” to mitigate risk by generating profiles of individuals and companies. The technology uses artificial intelligence to imitate human judgement and offer auditable reports for regulators.

Screen Shot 2016-06-28 at 1.20.29 PMDan Adamson, CEO and founder of OutsideIQ, demoed the DDIQ API at FinDEVr New York 2016.

Earlier this month OutsideIQ formed a distribution partnership with Alacra, a KYC and reference data management platform. At FinDEVr New York 2016, company CEO and founder Dan Adamson showed how developers can use OutsideIQ’s API.

Share this:

Send Post Twitter LinkedIn Facebook

Lending Club Appoints Scott Sanborn as CEO

Lending Club Appoints Scott Sanborn as CEO
By Julie Muhn (@julieschicktanz) Posted on
Categories: Lending Club

LendingClubHomepage

Screen Shot 2016-06-28 at 8.33.46 AMEven if you’re not a fintech fanatic, you likely know that in early May, Lending Club’s CEO resigned amid accusations of loan-documentation errors. At the time CMO Scott Sanborn and director Hans Morris stepped in as acting co-CEOs. Today the company announced the official appointment of Sanborn (pictured) as CEO and Morris as board chairman.

This bit of stability was enough to send the San Francisco-based company’s shares up 6% this morning after having tumbled 61% since the start of this year; however, with the good news, comes a flip side. Lending Club cut 179 jobs—12% of its workforce—as a reaction to lower loan volumes in the second quarter and in recognition that “fully restoring investor confidence may take time.” The company expects loan volumes for the second quarter of this year to be one-third less than its first quarter volume of $2.75 billion.

Lending Club will spend $9 million this quarter on investor incentives and $20 million on the ripple effects of job cuts—severance pay and employee-retention efforts—and advisory relationships. The company holds its annual meeting later today.

Founded in 2006, Lending Club demoed at FinovateSpring 2009 and at the inaugural Finovate in 2007.

Share this:

Send Post Twitter LinkedIn Facebook

Encap Security Acquired by Client, AllClear ID

Encap Security Acquired by Client, AllClear ID
By Julie Muhn (@julieschicktanz) Posted on
Categories: Encap, Mergers & Acquisitions

Screen Shot 2016-06-27 at 11.03.51 AM

Software-based multifactor-authentication provider Encap Security has been acquired by AllClear ID, an Austin-based company that provides data-breach and identity-protection services. Terms of the deal were not disclosed.

In a blog post announcing the change, Norway-based Encap made it clear that it will proceed with business as usual. The company will not only support its Smarter Authentication platform for new and existing customers, but also enhance its offerings by leveraging AllClear ID’s technology.

AllClear ID will use the acquisition to enhance its existing offerings using Encap’s device-authentication and e-signature technology. The move also allows AllClear ID to establish a presence in Europe to “capitalize on emerging opportunities, including major regulatory changes such as the introduction of the General Data Protection Regulation (GDPR) and the Payment Services Directive (PSD II).”

Screen Shot 2016-06-27 at 1.09.07 PMAdam Dolby, Encap vice president of business development, presented at FinovateFall 2015 in New York.

Founded in 2007, Encap debuted Omnichannel Enablement platform at FinovateFall 2015. VP of Business Development Adam Dolby began his presentation by describing why people dislike security. Dolby continued the demo by showing how Encap keeps things simple for end users by keeping the complexities of security behind-the-scenes.

Last week Norway-based BankID partnered with Encap to pilot in-app authentication for its online identity service. In the spring of 2015, Encap integrated with Apple’s TouchID to help financial institutions leverage a new authentication method.

Share this:

Send Post Twitter LinkedIn Facebook

LendingTree Launches CRA-Eligibility Tool

LendingTree Launches CRA-Eligibility Tool
By Julie Muhn (@julieschicktanz) Posted on
Categories: LendingTree

Screen Shot 2016-06-27 at 2.55.38 PM

Online loan marketplace LendingTree launched a new tool to help lenders comply with Community Reinvestment Act (CRA) regulations, which were enacted in 1977 to encourage banks to rebuild communities.

Banks subject to CRA evaluations can use the new tool to identify low- to moderate-income borrowers, extending credit to typically underserved individuals. Doug Lebda, founder and CEO of LendingTree, said the new capability “offers more financing opportunities to borrowers who may otherwise find difficulty in securing loans due to income requirements.”

At FinovateSpring 2015 North Carolina-based LendingTree debuted My LendingTree, an online dashboard where users view all credit-related accounts. LendingTree alerts users to money-saving and other opportunities through its recommendation engine.

Earlier this month, LendingTree partnered with the Innovative Lending Platform Association in building a small business lending disclosure model, SMART Box. The model not only offers transparency to small business borrowers, it also provides a concise way for lenders to explain the loan terms.

Share this:

Send Post Twitter LinkedIn Facebook

D3 Banking Brings in $10 Million from West Partners

D3 Banking Brings in $10 Million from West Partners
By Julie Muhn (@julieschicktanz) Posted on
Categories: D3 Banking

Screen Shot 2016-06-27 at 7.13.52 AM

Nebraska-based D3 Banking secured $10 million from West Partners this week to bolster its Data Driven Digital banking technology. As part of the deal, San Diego-based West Partners is offering D3 the ability to borrow under a 3-year credit facility.

After today’s round, D3’s funding totals just over $27 million. CEO Mark Vipond said that West Partners offered the funds in response to recognizing “the pace and direction of change in the digital landscapes and the role D3 Banking can play in arming banks and credit unions with the tools they need to competitively differentiate themselves.”

D3 will use the funds to expand its digital banking offering to keep up with demand, invest in R&D and build its team. The company works with banks such as Arvest, First Tennessee Bank, and IBERIABANK and counts more than 1.5 million end users of its personalized banking offerings.

Screen Shot 2016-06-27 at 10.03.24 AM

At FinovateFall 2015, D3 launched its small business banking offering that provides PFM tools to help entrepreneurs manage their small business. The platform analyzes transactions to generate cash flow and income statements and offer budget suggestions. In addition, banks gain visibility into the cash flow of the business, which provides insight into optimal times to extend loan offers and other banking products.

Earlier this year D3 integrated FI Navigator’s mobile banking module, furnishing the company with market intelligence on mobile banking services offered by 6,000 financial institutions. D3 was founded in 1997.

Share this:

Send Post Twitter LinkedIn Facebook

Azimo to Launch Facebook Messenger Bot

Azimo to Launch Facebook Messenger Bot
By Julie Muhn (@julieschicktanz) Posted on
Categories: Azimo

Screen Shot 2016-06-24 at 11.03.30 AM

Global money transfer platform Azimo recently announced plans to make sending and receiving money more social by launching a chatbot for Facebook Messenger.

The U.K.-based company will use artificial intelligence and machine learning to create a natural, human-like conversational chat experience. At a WIRED event in London, the company’s co-founder Marta Krupinska said, “We want to get to a point where the experience is like going into a branch.” Krupinska went on to note that, in addition to simply conducting transactions, users can interact with the bot as they would a human, for example, by asking about international transfer rates.

This is the second step we’ve seen Azimo take toward integrating its money-transfer services into messaging applications. Last month the company raked in $15 million from Rakuten, the owner of messaging service Viber. Azimo says it plans to integrate the funds into messaging services.

Azimo, which is already using AI in an algorithm to detect originality of scanned documents, lets users send money to and from 204 different countries. The company debuted at FinovateEurope 2013 in London and prides itself on being a cheaper, faster, and simpler way to send money across the globe.

Founded in 2012, Azimo has raised a total of $40 million; its estimated value is $100 million.

Share this:

Send Post Twitter LinkedIn Facebook

With Ripple, Seven Banks Test Out the Blockchain

By Julie Muhn (@julieschicktanz) Posted on
Categories: Ripple

RippleHomepage

Enterprise block chain solutions-provider Ripple has reached a “tipping point” as bank clients have transitioned from blockchain experimentation to deployment. This week the California-based company announced it is helping seven banks accelerate and improve their cross-border payments.

These aren’t just any seven financial institutions. The addition of the new players place 12 of the top 50 global banks as clients in the Ripple network. Here’s the list of new clients:

  • Santander
  • UniCredit
  • UBS
  • Reisebank
  • CIBC
  • ATB Financial
  • National Bank of Abu Dhabi

In a blog post, Ripple CEO Chris Larsen says, “This is a major step forward for the global financial system, and as the Ripple network grows, together we are paving the way for new connected commerce opportunities and growing demands for real-time, high-volume, low-value global payments.”

Ripple, which has completed 30 bank pilots, uses a distributed financial ledger technology that lowers the cost of real time payments by using algorithms to find the lowest foreign exchange rate. Many of the company’s bank partners already use Ripple’s ledger to transfer real money, and all have plans to use the ledger in commercial production. Earlier this year Santander became the first U.K. bank to use Ripple for cross-border payments and currently ten of Ripple’s bank clients are in various phases of commercial deals.

So far Ripple has received positive feedback. ATB Chief Strategy and Operations Officer Curtis Stange said, “Using blockchain technology, ATB Financial became the first financial institution in Canada to complete an overseas payment in a matter of seconds.” He added, “Without blockchain, that transaction would have taken two to six business days.”

Earlier this month, we reported a partnership between Ripple and Expertus Payment Platform that lets banks test transmittal of real-time payments using the blockchain in a safe environment with minimal disruption to a bank’s existing infrastructure. Founded in 2009, Ripple launched the Ripple Network at FinovateSpring 2013 under the name OpenCoin.

Share this:

Send Post Twitter LinkedIn Facebook

A Score for Socure: The Digital ID Company Lands Funds from Santander

A Score for Socure: The Digital ID Company Lands Funds from Santander
By Julie Muhn (@julieschicktanz) Posted on
Categories: Socure

Screen Shot 2016-06-23 at 6.44.45 AM

Digital identity-verification company Socure received a strategic investment from Santander’s $100 million fintech VC firm, Santander Innoventures. The Spanish bank’s investment arm will offer Socure access to resources and an undisclosed amount of funding.

This marks the ninth investment Santander Innoventures has made since it launched in 2014. The firm has also invested in Finovate alums Ripple, Kabbage, and most recently SigFig.

Socure’s founder and CEO Sunil Madhu described Santander Innoventures as “the perfect fit as a VC partner that can help us grow globally.” The New York-based company’s online identity-verification technology works in real time by analyzing a user’s digital footprint to fight identity fraud, increase acceptance rates for online account opening, and reduce KYC and AML costs. Because it does not rely on traditional credit-reporting systems, Socure’s Social Biometrics works especially well for thin-file, unbanked, and underbanked customers. Socure customers include Finovate alums Feedzai and Kabbage.

SocureDemoAt FinovateFall 2015, Socure’s co-founders Sunil Madhu, CEO, and SVP Johnny Ayers, business development, demoed Perceive (a facial biomentrics solution).

At FinovateFall 2015, Madhu debuted Perceive, the facial biometrics solution created to reduce account takeover. The Perceive SDK can be added to a web or mobile app to identify customers by their unique facial characteristics. The key to Socure’s new technology is that it doesn’t need the user to train the system on what their face looks like. Instead, Perceive uses pictures of the applicant already available through social platforms such as Google Plus, Facebook, and LinkedIn.

Prior to this week’s announcement, Socure had raised a total of $4.7 million in three rounds of funding. Last month the company expanded coverage for global watch-list compliance and earlier this year joined the FIDO (Fast IDentity Online) Alliance.

Share this:

Send Post Twitter LinkedIn Facebook