Finovate Alumni News

On Finovate.com

  • “Actiance Brings on Naresh Bansal as New CFO”
  • “Twilio Readies for $100 Million IPO”
  • “PayNearMe Acquires Prism Money to Offer Bill Presentment for Enterprise Clients”
  • “Featurespace Falls on a Fresh $9 Million in Funding”

On FinDEVr

  • “OakNorth, ‘The First Cloud-Based Bank in the U.K.’ is Powered by Mambu”

Around the web

  • Dataconomy interviews Georg Ludviksson, Meniga CEO and co-founder.
  • The WSJ: “Lending Club Talking With Citigroup About Loan Purchases”
  • Cachet Financial Solutions to power Mobile Deposit for LCNB National Bank.
  • American Banker highlights Suresh Ramamurthi, chairman and CTO of CBW Bank.
  • eToro appoints Joe Hall as its new managing director of business in the U.K.
  • Let’s Talk Payments takes a look at the post-acquisition relationship between Envestnet and Yodlee.
  • Ethoca teams up with the Online Payment Exchange (ONPEX) to stop ecommerce fraud using early warning alerts.

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.

TWINO’s First Year: 2,500 Investors Fund $24.6 Million in Loans

TWINO’s First Year: 2,500 Investors Fund $24.6 Million in Loans

TWINOHomepage

European marketplace lending startup TWINO today turns one-year-old and has some impressive metrics to celebrate its first birthday.

Since launch, $24.6 million in loans have been funded through the Latvia-based company’s platform, which boasts a 13.92% average rate of return. TWINO has paid out $363,000 in interest to its community of investors, which currently totals 2,500 active users based in 29 countries.

TWINO debuted its marketplace that offers investors access to unsecured consumer loans from Denmark, Poland, and Georgia at FinovateEurope 2016 in London. The company differentiates its platform by promising to buy back the principal and interest of a loan if it is delinquent for 30 days or more.

TWINO released the following infographic detailing the metrics of its year-one successes:

TWINO_TURNS_1_EN

Trustly Goes Live with P2P Payments at Avanza Bank

Trustly Goes Live with P2P Payments at Avanza Bank

TrustlyHomepage2016

Here in the United States we’re still dreaming about bank settlements that occur a few times each business day; however, in Sweden, this increased frequency is already a reality, and customers want transfers to be even faster.

That’s why Stockholm-based Trustly announced today it has partnered with Avanza Bank. With the Trustly integration, bank-to-bank transfers occur in seconds and, as Avanza CEO Martin Tivéus explains, “even in the evenings and on weekends when the ordinary clearing system is closed.”

The agreement went live in December 2015 to offer the bank’s 500,000+ customers real-time direct-deposits over the web. Since then, Trustly has facilitated 115,000 transfers worth $240 million (2 billion Swedish Krona). Last month the bank added mobile capability and today almost 20% of Avanza’s deposits are made using Trustly. The average time for money transfers has dropped from 14,000 seconds to 10 seconds.

Founded in 2008, Trustly launched an alternative ecommerce payments solution at FinovateEurope 2013. In the demo, COO Carl-Henrik Somp demonstrates how the company facilitates payments over Sweden’s largest marketplace, Blocket.se.

Finovate Alumni News

On Finovate.com

  • “Trustly Goes Live with P2P Payments at Avanza Bank”
  • “TWINO’s First Year: 2,500 Investors Fund $24.6 Million in Loans”
  • “Ormsby Street Partners with Deutsche Bank to Launch CreditHQ in Germany”

On FinDEVr.com

  • “Speed of Lightning, Roar of Thunder: Blockchain Unveils Off-Chain Bitcoin Payments Network”

Around the web

  • Version 6.0 of PayPal app discontinues support for Amazon Fire, Windows, and Blackberry phones.
  • Neyber selects Cloud Lending Solutions for loan automation.
  • Mircea Mihaescu’s blog features Moven.
  • SafetyPay partners with online travel agency ViajaNet.
  • Santander to build international payments app using blockchain technology from Ripple.
  • Technology from Cachet Financial Solutions to power mobile deposit solution for LCNB National Bank.
  • Credit Suisse chooses FIS Derivatives Utility for post-trade futures and cleared OTC derivatives operations and technology.

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.

A Double-Edged Sword: Prosper Increases Rates to Attract Lenders

A Double-Edged Sword: Prosper Increases Rates to Attract Lenders

PropserHomepage2016.2

Peer-to-peer lending platforms serve two masters. Prosper, one of the largest, made an announcement today that favors one over the other.

The San Francisco-based company raised borrower rates in an effort to attract investors amid waning confidence in the industry. Rates have increased by a weighted average of 0.29% and only impact borrowers with a Prosper rating of C or below.

According to the Wall Street Journal, Prosper had to slow its lending volume by 12% earlier this year due to lack of lender funds. Today’s move is an effort to maintain the critical balance. “The rate increase demonstrates our commitment to operating a marketplace that balances the economic incentives for both our borrower and investor communities,” said Brad Pennington, the company’s chief risk officer.

This marks the second time this year Prosper raised rates (after raising them 142 basis points in February) and is stated to be in an effort to keep up with the Fed—anticipated to raise rates next month—and to match the “risk-reward tradeoff of investing in newly originated loans.”

It has been a rough quarter for the marketplace-lending industry and for Prosper in particular. The company lost a securitization deal with Citigroup in April and cut 28% of its staff earlier this month.* But Prosper has had recent successes: In March, the lending platform teamed up with HomeAdvisor to improve access to home improvement financing and bolstered its consumer-facing mobile app to appeal to rejected borrowers.

Prosper presented at FinovateSpring 2009 as well as the inaugural Finovate in 2007.


* The layoff is not as dramatic as it might seem. Prosper doubled its workforce in 2015 after acquiring BillGuard.

Dashlane’s $22.5 Million in New Funding Comes with a Strategic Partner

Dashlane’s $22.5 Million in New Funding Comes with a Strategic Partner

DashlaneHomepage2016.2

Password-management company Dashlane closed on $22.5 million in a round led by TransUnion, which has joined the company as a strategic partner. Bessemer Venture Partners, FirstMark Capital, and Rho Ventures also contributed to today’s round, which brings Dashlane’s total funding to $52.5 million since its 2009 launch.

CEO Emmanuel Schalit says of the milestone: “This new round of funding—combined with the strategic relationship with TransUnion—will strengthen our ability to achieve our vision by giving us the capital to accelerate our roadmap, as well as the ability to further integrate new and powerful services for our users.”

The strategic partnership with TransUnion comes at a time when consumers are at an increasingly high risk for account breaches. Together with TransUnion, Dashlane will create integrated services focused on credit monitoring, identity and fraud protection, credit information, and breaches. Additionally, Dashlane will use TransUnion as a channel partner to expand its distribution across the globe.

President of TransUnion Consumer Interactive, John Danaher, says, “We feel TransUnion, with its vast array of credit- and identity-protection services and its global consumer reach, can help accelerate Dashlane’s growth even further.” Danaher will join Dashlane’s advisory board along with Carl Pascarella, former CEO of Visa.

Dashlane, which presented at FinovateEurope 2013, has focused primarily on the direct-to-consumer market, helping more than 5 million consumers in 150 countries manage their identities. However, the company has recently broadened its focus to partner with banks. The New York-based company is currently working with the largest bank in Mexico, Banamex, and will announce more partnerships with large banks and payment networks this year.

TransUnion took the stage at FinovateSpring 2010 to demo ZenDough, an interactive tool that displays an organization’s finances and credit scores in an easy-to-read visual.

FinDEVr APIntelligence

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

Developer news

  • Magic Leap to give 10 Twilio developers early access to its SDK.

On FinDEVr.com

  • “Fintech Developers, Lock in Presale Savings for FinDEVr Silicon Valley”

The latest from FinDEVr New York 2016 presenters

  • OnDeck adds to credit offerings available to Canadian small businesses.
  • Markit unveils compliance solution to help meet new FRTB, market-risk capital requirements.

Alumni updates

  • “Trulioo’s GlobalGateway Available in BRIC Countries”
  • “Kabbage Reaches $2 Billion in Loans in 5 Years”
  • TechCrunch column on APIs features Plaid, and Twilio.
  • “CardFlight Adds Global Payments as EMV Processor”
  • “New Investment for Personal Capital Takes Valuation to $500 Million”

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

TransferWise Lands $26 Million, Crossing into Unicorn Territory

TransferWise Lands $26 Million, Crossing into Unicorn Territory

Foreign Exchange platform TransferWise, which announced geographic expansions last month, today reports an expansion of a different nature. The London-based company pulled in $26 million, bringing its total funding to $117 million and burgeoning its valuation to $1.1 billion (according to TechCrunch), thereby making it a fintech unicorn.

The round, which the company plans to use to fuel future growth, was led by Baillie Gifford. Existing investors, which include Andreessen Horowitz and Sir Richard Branson, also participated.

At FinovateEurope 2013, TransferWise co-founders Taavet Hinrikus and Kristo Kaarmann stood up in front of an audience of bankers with a decidedly non-bank-friendly message. There, the company announced its mission to reduce foreign exchange fees by circumventing financial institutions. Today, the company transfers $750 million each month on its platform.

TransferWise employs a workforce of more than 600 across its offices in United Kingdom, Europe, and the United States, where a separate money-transfer license is required for all 50 states. The company recently received heat after one of its U.S. banking partners was scrutinized by regulators for “unsafe and unsound banking practices,” though co-founder Hinrikus states that he is confident TransferWise is in compliance.

Finovate Alumni News

On Finovate.com

  • “TransferWise Lands $26 Million, Crossing into Unicorn Territory”
  • Check out this week’s FinDEVr APIntelligence”
  • “Dashlane’s $22.5 Million in New Funding Comes with a Strategic Partner”
  • “Mitek and Avoka Team Up to Provide New Mobile Onboarding Solution”
  • “A Double-Edged Sword: Prosper Increases Rates to Attract Lenders”

Around the web

  • Lendio partners with GoDaddy marketplace to offer small business owners access to working capital.
  • Misys to integrate its FusionBanking Loan IQ technology with Debtdomain from Ipreo.
  • iSignthis announces pilot agreement with iFOREX.
  • CSI globalVCard teams up with MacNair Travel Management to develop a payment solution for travel managers and procurement professionals.
  • NuData Security partners with the National Anti-Organized Retail Crime Association (NAORCA).

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.

MaxMyInterest Launches Client Invitation Feature

MaxMyInterest Launches Client Invitation Feature

MaxMyInterestHomepage

Today, Six Trees Capital’s MaxMyInterest announced a new client-onboarding feature for its automated cash management system. The new client-invitation element enables advisers to fill in customer data to preregister them for an account, saving the client time and effort during the tedious onboarding process and helping to reduce abandonment.

Advisors who preregister clients receive read-only access to their balance information. This comprehensive view of a client’s account helps the adviser throughout the financial planning process. In a release, CEO Gary Zimmerman, founder, says, “In 2015, we eliminated the need for clients to enter their name and address multiple times to open multiple bank accounts. Now, clients don’t have to enter their name and address even once.”

At FinovateFall 2014, MaxMyInterest launched its Intelligent Funds Transfer technology that uses an algorithm to determine the optimal cash allocations in a user’s bank account to, as the name suggests, maximize interest received.

While the New York-based company still maintains its consumer-facing brand, it has recently launched several features for advisers, who turn to MaxMyInterest for the higher yield and broader FDIC insurance that it offers for cash accounts. New adviser features include an adviser dashboard and a co-branding option.

Kabbage Reaches $2 Billion in Loans in 5 Years

Kabbage Reaches $2 Billion in Loans in 5 Years

KabbageHomepage

Small-business-funding platform Kabbage was founded in 2009 with a mission to use big data to help underwrite small business loans. Today, the Georgia-based company announced it has originated $2 billion in loans during the past five years.

The 75,000 small business customers on Kabbage’s platform hail from all 50 U.S. states. The company links more than 1 million data sources to the company’s underwriting engine which pulls information such as business revenue, vendor payments, and tax and accounting data to assign the proper line of credit in real time. The credit line is dynamic and automatically adjusts to furnish businesses with the right amount of capital they need to grow.

Earlier this month, Kabbage partnered with alt-lenders OnDeck and CAN Capital to launch the Innovative Lending Platform Association and Smart Box. The new initiatives aim to foster transparency in online lending by creating an environment in which all lenders can openly collaborate on small business loan pricing and fee disclosures.

At FinovateSpring 2015, Kabbage launched the Kabbage Card, a payment device that offers businesses immediate access to their loan without the need to transfer funds into a PayPal account.

The company’s CTO Andy Badstubner presented at FinDEVr San Francisco 2015 on how to integrate into the Kabbage platform.

Trulioo’s GlobalGateway Available in BRIC Countries

Trulioo’s GlobalGateway Available in BRIC Countries

TruliooHomepage

Identity verification provider Trulioo has expanded the geographic coverage of its online electronic identity-verification service GlobalGateway to support Brazil, Russia, India, and China.

This group of countries, known as BRIC, houses 41% of the global population and supports an emerging middle class of 1.2 billion people. In these markets, business-to-consumer ecommerce is estimated to grow faster than in well developed markets.

Trulioo president Jon Jones says their efforts were focused in securing data sources in these particular markets because of the “significant growth in cross-border commerce, which has been made possible [through] Internet penetration and mobile technology.” He added that these emerging BRIC markets “are ripening to become the main markets of tomorrow, and require versatile identity-verification tools to do so.”

GlobalGatewayGlobalGateway enables businesses and banks to verify 4 billion new and existing client identities from 45 countries via 145 data sources to maintain KYC and AML compliance. The product is available as an API or through an online portal.

Last month, Trulioo won the Innovation in Cyber Security Award at the 2016 Fintech Innovation Awards. Late last year, the company closed on $15 million in a round led by American Express Ventures, bringing its total funding to more than $23 million.

Vancouver, B.C.-based Trulioo demoed how its GlobalGateway works at FinovateFall 2015. During FinDEVr San Francisco 2014, the company presented the GlobalGateway API.