Author: Julie Muhn (@julieschicktanz)

Novobanco Taps Feedzai for Risk-Ops platform

Novobanco Taps Feedzai for Risk-Ops platform
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Feedzai
Novobanco Taps Feedzai for Risk-Ops platform
  • Feedzai has partnered with Novobanco to offer the bank’s clients protection from financial crime.
  • Novobanco wil leverage the Digital Trust (DT) and Transaction Fraud for Banking (TFB) solutions within Feedzai’s Risk-Ops.
  • Novobanco anticipates the new technology will enhance trust, optimize customer engagement, and ultimately boost customer satisfaction.

Feedzai inked a partnership with Portuguese bank Novobanco this week. The risk management and fraud prevention company has agreed to protect the bank’s clients from financial crimes while not detracting from the customer experience.

Specifically, Novobanco will leverage the Digital Trust (DT) and Transaction Fraud for Banking (TFB) solutions within Feedzai’s Risk-Ops, a platform that helps firms protect users from financial crime. The tool is embedded into firms’ existing workflows to help uncover hidden criminal activity while not disrupting the customer experience.

“The Digital Trust and Transaction Fraud for Banking solutions which are part of our RiskOps platform will empower Novobanco to further enhance its fantastic service whilst providing the highest level of financial security for its customers,” said Feedzai Global Head of Sales Nuno Pires.

With 1.5 million clients and $47.8 billion (€43.8 billion) in assets, Novobank is the 4th largest bank in its domestic market. The bank maintains a customer-centric culture by offering an omnichannel customer experience and transparent, simple products.

Novobanco anticipates that DT and TFB will enhance trust, optimize customer engagement, and ultimately boost customer satisfaction. Combined, the two solutions will help Novobank analyze and understand customer behavior, flag security threats, and block fraud attempts in real time.

Also based in Portugal, Feedzai was founded in 2011. The company’s solutions help fight fraud in more than 190 countries. In 2021, Feedzai was valued at more than one billion dollars after receiving a $200 million funding round that boosted its total funding to $277 million. There is no word on an updated valuation.

Photo by JESHOOTS.COM on Unsplash

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What Banks Can Learn from Toast’s 99 Cent Fee

What Banks Can Learn from Toast’s 99 Cent Fee
By Julie Muhn (@julieschicktanz) Posted on
Categories: Julie's Column, Thought Leadership

Point-of-sale (POS) and restaurant management platform Toast unveiled recently that it is rolling out a new fee. At only $0.99, the new fee doesn’t sound particularly problematic initially. Many of the technology provider’s customers, however, are not happy. And looking deeper into the issue, it’s easy to see why.

The fee

Toast is imposing the new fee to the end customers who make purchases of $10 or more on online Toast POS systems. The charge will appear under the “taxes and fees” line item. According to the Boston Globe, if a consumer clicks to see more information, they will see the charge listed as an “order processing fee” that Toast explains is “Set by Toast to help provide affordable digital ordering services for local restaurants.”

Circumventing their merchant client and charging the end consumer directly not only places strain on a restaurant’s business relationship with Toast, but it is also likely to strain the end customer’s relationship with the restaurant. Many have had to increase menu prices over the past few years because of inflation, and they have had to work hard to pay their workforce a competitive wage while not driving away customers with higher meal prices. Toast’s move is certain to exacerbate this.

There has already been much insight into why publicly listed Toast is doing this from a business perspective. The company has yet to become profitable and it’s stock price is down 61% since its 2021 IPO. With 85,000 merchants, Toast is sure to benefit financially from the new fee. Whether it will be enough to turn the company profitable is yet to be seen.

The fee doesn’t take effect nationwide until July 10, so the fallout is yet to be seen. So what can banks learn from this?

The lesson

Banks need to maintain tight control of the customer experience. With the “as-a-service” model taking off in banking, it makes sense that banks are leveraging third party technologies to create efficiencies and focus on their core product. There’s nothing wrong with using third party providers to help create a better user experience, build out a product set, or create a more secure environment. However, if there is a flaw that is the fault of the third party provider, it is ultimately the bank’s reputation that is on the line– not that of the third party.

Prevention

Preventing the fallout of a rogue fintech partnership comes down to vetting the third party. It’s important that banks do their research by talking with other customers of the third party to garner feedback or run through customer scenarios to ensure optimal outcomes in all cases. Banks should also protect themselves by not locking themselves into a rigorous or limited contract.

Ultimately, banks are in business to serve the customer, and if a third party is ruining that relationship, it’s time for the bank to look elsewhere to suit their needs instead of sacrificing the customer experience.

Looking at Toast’s move, it’s difficult to say how (or if) the move will impact user behavior. When asked about potential customer reactions, Dustin Magaziner, CEO of PayBright, said, “I actually don’t think this will impact sales or customer relationships much. Many customers are accustomed to paying additional fees these days. However, I do think the angle to review this from is the lost revenue for the business owner. If a merchant runs 1000 online sales per month, it’s $1,000 the merchant is essentially not earning.”

Photo by cottonbro studio

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Robinhood Acquires Credit Card Upstart X1 for $95 Million

Robinhood Acquires Credit Card Upstart X1 for $95 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Robinhood has acquired credit card company X1 for $95 million.
  • X1 launched an in-app stock purchasing capability late last year.
  • Robinhood CEO and co-founder Vlad Tenev said that the acquisition will bring his company closer to serving the entirety of customers’ critical financial needs.

Stock brokerage app Robinhood signed an agreement this week to acquire six-year-old credit card startup X1. The deal is expected to close in the third quarter of this year for $95 million in cash.

Prior to the acquisition, X1 had raised $62 million. The company, which was founded in 2017 by Deepak Rao and Siddharth Batra, refers to its credit card as “the smartest card ever made.” The no-fee Visa credit card has many features that customers have come to expect of a modern card. It offers competitive rewards, instant payment notifications via a tandem mobile app, a virtual card number, and it allows customers to turn the card on and off within the app.

There are a handful of features that set the card apart, however. The first is the physical card itself– it is made of 17 grams of stainless steel. The card also allows users to create a single-use card number that is automatically cancelled after one use, which can come in handy for subscriptions users don’t want to forget to cancel. Users can also create a card number for free trials that is cancelled after 24 hours.

Robinhood CEO and co-founder Vlad Tenev explained the reasoning behind today’s buy. “This acquisition will bring us closer towards our goal of serving the entirety of our customers’ critical financial needs. Together with X1, Robinhood will now be able to offer our customers access to credit,” he said.

The acquisition aligns with X1’s direction, as well. The company launched an in-app stock purchasing capability that enables cardholders to buy stocks in the X1 app using their rewards points. X1 guides investors by recommending stocks based on the cardholder’s spending habits, risk preferences, investment goals, income, and time horizon.

Logistically the X1 team will join the Robinhood team. Rao and Batra will oversee Robinhood’s new card business. Rao will serve as GM of Credit Cards and will report to Tenev.

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A Look into Why and How Wade Arnold Built Moov

A Look into Why and How Wade Arnold Built Moov
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinovateSpring 2023, Speaker series

At FinovateSpring last month, Moov CEO Wade Arnold talked to us about how and why he built his company, what his greatest hurdles have been, and what he is looking forward to next.

For those unfamiliar with Moov, it is a fintech that provides a payment orchestration API that allows customers to accept, store, send, and spend money. The all-in-one experience offers customers direct connection with card brands, The Clearing House, and the Federal Reserve.

And if you’re unfamiliar with Wade Arnold, you’re missing out! He’s always the smartest guy in the room, and he’s humble enough to share his knowledge with anyone who will listen. Here are the highlights of our conversation with him at FinovateSpring.

What was the impetus to build Moov?

I was inspired to build Moov because, through three different startup companies inside of the financial service space, we spent a lot of time dealing with legacy infrastructure rather than building the product that we wanted to take to market. And so, rather than building another abstraction, I decided to take on the job of building straight to the payment that works.

How many times did you pivot?

I think [we’re] pivoting daily, but for us the biggest pivot was doing payment rails linearly. I definitely wanted to go do everything all at once but thankful that we started with ACH, started with our wallets, then to card acquiring, and just building out each component as our customers needed.

What were the biggest hurdles you faced early on?

The biggest challenge for Moov was getting the Federal Reserve, the Clearing House, and four card brands to say, “yes” to a brand new startup wanting to build directly onto the backbone of their payment infrastructure. So once we were able to overcome that, we were able to start writing code and developing the platform.

If you could repeat the process and start over, what would you do differently?

I’d slow down on sales, and focus on customers. So there’s always a drive to create revenue faster and faster, and that’s an area that I think you have to wait until the company’s ready to go very fast and invest into that opportunity to grow your market.

What’s the biggest lesson you’ve learned from VCs during the funding process?

Interacting with VCs is kind of funny for me. I didn’t really do a market analysis. I just said, “This is broken, I’ve dealt with this my entire life, and want to go build something to fix it.” It was fascinating interacting with VCs, but coming from the opposite angle. As a builder, that’s kind of a bottoms up approach. And they were coming from a market dynamics [perspective]. Both of us landed in the same place.

Where do you see Moov in 10 years?

The vision for the business in 10 years is to really just keep on focusing on customers. You know, a delighted customer is the best reference possible. So we’ll keep on doing that. My long-term aspirations are that we’re a legacy incumbent someday, which just means that, for a period of time, we were the best thing that people could build on top of and that would be an incredible privilege.

Photo by Ivan Samkov

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StockRepublic Raises $2.81 Million for Social Trading Platform

StockRepublic Raises $2.81 Million for Social Trading Platform
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Funding, StockRepublic
  • StockRepublic has raised $2.81 million (SEK 30 million).
  • The round was led by Avanza subsidiary Placera Media, which contributed $1.4 million (SEK 15 million).
  • The relationship between Placera Media and StockRepublic began at the start of this year when StockRepublic helped Placera Media operate and modernize its stock forum.

B2B social trading platform StockRepublic has raised $2.81 million (SEK 30 million) this week. The new investment is more than double the company’s existing funding and brings its total to $5.2 million (SEK 55.6 million).

Leading the round is Avanza’s subsidiary Placera Media, which contributed $1.4 million (SEK 15 million). The remaining $1.4 million (SEK 15 million) comes from existing investors and business angels.

Founded in 1999, Avanza is one of Sweden’s largest financial websites. The firm’s media subsidiary, Placera Media, covers news and updates on equities, funds, and savings. The company publishes articles, produces podcasts, and launches several TV segments each week.

StockRepublic’s partnership with Placera Media began earlier this year. The social trading company operated and modernized Placera Media’s stock forum. Today’s strategic partnership between the two will help StockRepublic ramp up hiring, further develop its service offering, and continue its expansion.

“We are very proud to have Sweden’s leading savings platform on board, both as customers and investors,” said StockRepublic CEO Fabian Grapengiesser. “StockRepublic has previously raised capital from customers, so it is a proven and successful model for us. This collaboration brings Avanza closer to us in a very positive way and allows us to continue to develop Avanza’s platform with exciting new services.”

Sweden-based StockRepublic was founded in 2018 and demoed its technology at FinovateEurope earlier this year.. The company’s platform offers customized apps and APIs to help banks and financial services providers increase customer engagement. Specifically, StockRepublic’s technology allows investors to leverage the experience and knowledge of other investors and, in turn, share their success. The company’s platform is currently available in six markets. Commerzbank is among its clients.

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Baker Hill Acquired by Private Equity Firm

Baker Hill Acquired by Private Equity Firm
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Baker Hill, Daily news, Mergers & Acquisitions
  • Baker Hill is being acquired by private equity firm Flexpoint Ford.
  • Financial terms of the deal were not disclosed.
  • Company President and CEO John M. Deignan will continue to lead the business.

Lending-as-a-Service provider Baker Hill has agreed to be acquired by private equity firm Flexpoint Ford. Riverside-owned Baker Hill has not released financial terms of the deal, which is expected to close upon the receipt of regulatory approvals.

Baker Hill will tap into the Flexpoint team’s experience and fintech knowledge and will be able to leverage the private equity firm’s capital to fund product developments and acquisitions. The Indiana-based company will also be able to benefit from Flexpoint’s insight into the needs of bank and credit union clients. As Vilas Nair, Flexpoint Principal explained, the firm can “support Baker Hill’s mission of helping banks and credit unions foster more profitable relationships with their customers and drive economic development in their communities.”

“Baker Hill has a long-standing reputation for being a trusted provider of differentiated loan origination and risk management software, which has helped fuel our consistent growth each year. This ongoing market validation is a source of inspiration for our team and by partnering with Flexpoint we can continue to elevate the lending experience for our bank and credit union clients,” said Baker Hill President and CEO John M. Deignan. “Our team is confident this partnership will provide new opportunities to deliver more value for our clients and the communities they serve.”

Deignan, along with the company’s existing leadership team, will continue to lead the business and remain shareholders.

With $7.5 billion of regulatory assets under management, Flexpoint Ford’s portfolio is comprised of companies in the financial services and healthcare industries. The firm has invested in more than 40 companies since 2005.

Founded in 1983, Baker Hill offers banks and credit unions a SaaS solution for commercial, small business, and consumer loan origination, as well as risk management tools. The company, which most recently demoed at FinovateFall 2021, has received numerous awards in recent years. The IndyStar selected it as a top workplace in Central Indiana, Aite-Novarica recognized Baker Hill NextGen as best in class product, and, most recently, the company received a Product Innovation of the Year Mira Award nomination.

Photo by Sora Shimazaki

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Thought Machine to Power Jordan Ahli Bank’s Social Payment App

Thought Machine to Power Jordan Ahli Bank’s Social Payment App
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Thought Machine
  • Jordan Ahli Bank has tapped Thought Machine to launch its new social payments app.
  • Qawn, the new app, is built on Thought Machine’s Vault Core cloud-native core banking platform.
  • Using Vault Core’s Universal Product Engine, Jordan Ahli Bank was able to tailor the new app to its diverse customer base.

Core banking technology provider Thought Machine is helping Jordan Ahli Bank launch Qawn, its new social payments app.

Powering Qawn is Thought Machine’s Vault Core cloud-native core banking platform. The banking technology provider’s Universal Product Engine enabled Jordan Ahli Bank to customize the tool based on its customers’ needs.

“Our aim is to help people prosper by creating a social financial experience that addresses real-life problems with cutting-edge technology,” said Jordan Ahli Bank Chief Innovation Officer Nidal Khalifeh. “Money is inherently social, and we want to reinvent digital money with a social aspect. Our app is designed to be secure, user-friendly, and to offer guidance with a focus on technology.”

With Qawn, Jordan Ahli Bank is helping a diverse group of users to send and receive money, request payments through chat, or scan a QR code for hassle-free money management. The app, which supports both Arabic and English languages, is also aimed at commercial banking users and can function as a payment acceptance tool.

Thought Machine was founded in 2014 and has since raised $563 million in funding. The U.K.-based company offers two main products: Vault Core, a tool that leverages smart contracts to help organizations design and build new financial products; and Vault Payments, a payments processing platform that enables banks to run all payment types for different payment methods, schemes, and regions across the globe. 

“Bringing Qawn to the market is just the start – we look forward to expanding our partnership with Jordan Ahli Bank to bring further innovative financial solutions to Jordan, and elsewhere in the MENA region,” said Thought Machine CEO and Founder Paul Taylor.

Photo by Ketut Subiyanto

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Glia Taps Illuma Labs to Bring Voice Authentication to its Customer Service Platform

Glia Taps Illuma Labs to Bring Voice Authentication to its Customer Service Platform
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Alumni profile, Glia, Illuma Labs

Digital customer service provider Glia is enhancing its Glia Interaction Platform with a partnership with voice authentication provider Illuma Labs. Glia has integrated Illuma’s voice authentication technology into its customer service platform to help organizations streamline voice authentication for customer service interactions.

Glia anticipates the new addition will not only prevent fraud, but also enhance the customer experience and improve operational efficiency. “Illuma Shield fits seamlessly with the Glia Interaction Platform, adding more efficiency by making voice authentication effortless,” explained Illuma CEO and Founder Milind Borkar. “Our joint customers are experiencing the real value that the Glia and Illuma partnership delivers.”

Illuma Shield is Illuma’s flagship voice biometrics product that integrates signal processing, AI, and machine learning. The technology works in the background to authenticate customers during an interaction and prevent account takeover. Meanwhile, the customer service representative doesn’t need to make unnecessary clicks or spend time on data entry during or after the call. And because the user interface shows up on the agent’s existing screen, they don’t have to open up a different window.

The Glia Interaction platform is comprised of digital, phone, and self-service customer service options. The range of solutions not only provides customers a variety of options when seeking out customer service, but it also offers end users a seamless, omni-channel experience in the event they need to change communication channels.

“Authentication, particularly for phone banking, has traditionally been cumbersome and a major source of friction,” said Glia SVP of Alliances Steve Kaish. “By verifying enrolled customers in the first few seconds of natural conversation with the Illuma Shield software, Glia quickly enables an authenticated interaction, reducing fraud and letting customers focus on their immediate need, be it an account balance, mortgage inquiry or loan origination.”

Glia was founded in 2012 as SaleMove. The New York-based company offers digital communication environments, on-screen collaboration, and AI-enabled assistance tools for clients who need to support end customers online, over the phone, in home office environments, and via video. In total, Glia has facilitated more than 10 billion customer interactions. The company has raised $152 million and counts Envestnet, Deutsche Bank, and United Healthcare among its clients.  Glia has taken home 10 Finovate Best of Show awards for its live demos and most recently showcased its tools at FinovateSpring 2021. 

Founded in 2016, Illuma seeks to help credit unions boost their brand reputation with a modern and seamless member experience and better security. The Texas-based company has raised $2.5 million. Illuma appeared on the FinovateSpring stage last month in San Francisco with a demo of how it brings passive voice authentication to Glia’s customer service interactions.

Photo by MART PRODUCTION

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BlackRock Takes Minority Stake in Avaloq

BlackRock Takes Minority Stake in Avaloq
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Avaloq, Daily news
  • Avaloq has received a strategic investment from BlackRock.
  • The amount of the investment is undisclosed, but it gives BlackRock a minority stake in Avaloq.
  • BlackRock will integrate Avaloq’s wealth management technology into its Aladdin Wealth product.

BlackRock announced a strategic investment in wealth management technology provider Avaloq this week. The amount of the investment was not disclosed, but BlackRock has taken a minority stake in the Switzerland-based company.

“This partnership will help us empower our clients to streamline processes, enhance risk analytics, and make more informed portfolio decisions, ultimately delivering greater value to their clients,” explained Avaloq Co-CEO Martin Greweldinger.

Their collaboration will combine Avaloq’s core banking, client relationship management, and mobile banking services with the risk analytics and portfolio management capabilities of BlackRock’s Aladdin Wealth. This combination will empower wealth managers and private banks to offer enhanced, more holistic services.

“BlackRock and Avaloq joining forces will help clients reduce the complexity and friction inherent in many of today’s digital transformations,” said Aladdin Wealth Tech’s Global Head Venu Krishnamurthy. “Our combined offering will make it extremely convenient for clients to implement and adopt Aladdin Wealth’s industry leading capabilities as it will be deeply integrated with Avaloq’s core banking solutions.”

Founded in 1991, Avaloq was acquired by Japan-based NEC in late 2020 for $2.2 billion. Prior to the acquisition, Avaloq had raised $392 million in funding.

Originally a core banking provider, Avaloq has narrowed its focus to serve private banks and wealth managers and now counts more than 150 clients across 35 countries. The company has four main product lines: Avaloq Engage increases client engagement, Avaloq Wealth supports the client journey, Avaloq Insight offers access to data, and Avaloq Banking Operations supports the back office.

Photo by Kindel Media

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Navan Launches Business Expense Management Tool

Navan Launches Business Expense Management Tool
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Navan is launching Navan Connect, a card-linked, automated expense management tool.
  • Navan Connect is an upgraded version of the company’s expense management product, Navan Expense, which it launched in 2020.
  • With Navan Connect, businesses can link their existing corporate Visa and Mastercard cards to Navan Expense.

Corporate travel and expense management company Navan (formerly TripActions) is giving its Navan Expense product an upgrade this week. The San Francisco-based company is launching Navan Connect, a card-linked, automated expense management tool.

Navan first debuted Navan Expense tool in 2020 and has since seen 80x growth in spend volume. The expense tool’s features, such as smart policy controls and auto-itemization, help reduce out-of-policy spend.

Similar to Navan Expense, the Navan Connect program offers a business’ finance team access and control over corporate cards by ensuring the spending lines up with company policy. It also offers visibility into both pending and cleared transactions in real time. Unlike with Navan Expense, however, Navan Connect, allows the company’s business clients to be keep their existing corporate card programs, along with the loyalty rewards, rebates, and banking relationships that come with the program.

“This is a game-changer when it comes to managing expenses,” said Navan Expense EVP and General Manager Michael Sindicich. “It’s a big step forward for finance leaders, who want to keep their employees happy with a modern solution but without the disruption caused by changing corporate card programs. We’re excited about this groundbreaking solution, which helps organizations streamline their processes and focus on what really counts.”

To take advantage of Navan Connect, businesses can link their existing Mastercard or Visa corporate cards to benefit from the Navan Expense corporate card control features. “With Navan Connect, we’re expanding this convenience and efficiency to the corporate cards that our customers prefer, harmonizing personal choice with corporate needs,” said Navan Co-Founder and CEO Ariel Cohen. “It’s not just a product; it’s our pledge to simplify expense management while enhancing flexibility and control for businesses.”

Navan was founded in 2015. The company leveraged AI to create an enhanced user experience around booking corporate travel. Since then, Navan has made four acquisitions and now counts 2,900+ employees across 40 markets. The company expanded into India in April of this year after acquiring Tripeur.

Photo by Andrea Piacquadio

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Experian’s New Launch Helps Prevent Money Mule Account Fraud

Experian’s New Launch Helps Prevent Money Mule Account Fraud
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Experian
  • Experian is launching its Mule Score, a new service to help banks identify and close down money mule accounts.
  • Money mule accounts are used by criminals to launder money and facilitate fraud.
  • According to Experian, 42% of first-party checking account fraud is mule-related.

Information services company Experian has unveiled the Experian Mule Score, a new service that will help U.K. banks identify and shutter so-called money mule accounts, or accounts that criminals use to launder money and facilitate fraud.

The “mules” are people that allow criminals to use their legitimately obtained accounts in exchange for cash. Banks can’t see where the money is coming from or being sent to. This lack of visibility makes it difficult to identify and investigate accounts being used by money mules. The issue is widespread– according to Experian, 42% of first-party checking account fraud is mule-related.

“Mule Score is the first solution of its kind, giving financial companies a comprehensive view of account activity, helping prevent them from onboarding potential mule accounts and detect already opened accounts which are suspicious,” said Experian UK&I Managing Director, Identity and Fraud Eduardo Castro.

Experian anticipates the new solution will help banks avoid onboarding suspicious accounts before they are opened, reduce fraud losses and operational costs, support at-risk consumers, and prevent fraudulent funds entering the financial system. 

Experian is leveraging its bureau data, combined with account opening history and turnover activity to create the Mule Score that flags potential money mule activity. The score, which was developed by Experian DataLabs, also uses machine learning to model characteristics of more than 200,000 historical mule cases. As a result, banks can assess their accounts to easily spot suspicious activity.

“The level of fraud and financial crime in the U.K. represents a threat to financial institutions and their customers,” said Castro. “Experian, thanks to our data, analytics and technology, is uniquely placed to help. We are committed to helping eliminate financial crime and ensuring safe financial access for all.”

Originally known for its consumer credit reporting, Experian has leveraged its extensive access to data and has honed its expertise in fraud prevention technology. In 2021 alone, the Ireland-based company prevented more than $2.25 billion (£1.8 billion) in fraudulent transactions. In addition to consumer credit reporting and fraud prevention tools, the company also offers identity theft protection, credit building tools, and a loan comparison marketplace. And on the commercial side, Experian provides a range of services for small businesses, including business credit reporting, marketing products and services, debt collection tools, and more.

Photo by Donald Tong

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SoFi at Work Launches Student Loan Verification Service 

SoFi at Work Launches Student Loan Verification Service 
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, SoFi
  • SoFi’s SoFi at Work is launching a Student Loan Verification service this week that will help employers match their workforce’s student loan repayments with retirement contributions.
  • The tool comes in response to Congress’ SECURE 2.0 Act that allows employers to match their employees’ student loan repayments with retirement contributions.
  • In addition to Student Loan Verification, SoFi at Work also helps employers offer student loan refinancing, repayment options, a debt navigator tool, financial education resources, and more.

SoFi’s SoFi at Work program is launching a new Student Loan Verification (SLV) service this week. The new tool will help companies match their employee’s student loan repayments with retirement contributions.

SLV will be added to SoFi at Work’s portfolio of employer financial wellness benefit solutions. The launch comes in response to Congress’ Securing a Strong Retirement Act (SECURE 2.0), which allows employers to match their employees’ student loan payments with contributions toward retirement plans.

“At SoFi, we’re dedicated to helping people get their money right, and SECURE 2.0 and the provision that makes it easier for companies to support all employees’ financial well-being is a great example of that,” said SoFi at Work Vice President, Business Lead Barrett Scruggs. “Our Student Loan Verification service makes it easy for companies to put this emerging, yet highly impactful benefit into action for a more inclusive future.”

According to a 2019 study from MIT, 84% of adults with student loan debt say it has impacted the amount they’re able to save for retirement. With SLV and SECURE 2.0, companies can enable their workers to contribute to their 401(k) or 403(b) plan while paying down their student debt.

Launched in 2016, SoFi at Work aims to help employers offer their workforce student loan refinancing, repayment options, a debt navigator tool, financial education resources, and more. Seven out of 10 Fortune 500 tech firms currently offer the perk to their employees.

Photo by RDNE Stock project

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