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Student-targeted banking platform, Waspit, announced last week that it received $3 million in funding from New York-based private investors.
The interactive banking platform will use the funding to enhance its sales and marketing efforts and create new features for its registered user base of 5,500 students.
The names of the investors remain undisclosed.
To learn more about Waspit, watch its FinovateFall 2012 demo.
Earlier this month, I was briefed by the COO of Entrepreneurial Finance Lab (EFL), Dennis DiDonna, on how they are increasing small business lending in developing countries while lowering default rates. EFL demonstrated at FinovateAsia last month in Singapore.
Company overview
Origin
EFL began as a Harvard Kennedy School of Government research project by professor Asim Khwaja, and PHD student Bailey Klinger. Khwaja and Klinger were studying the “missing middle,” meaning the lack of small- to medium-sized enterprises in developing countries. The project was so successful that the two went on to co-found the company.
Operating in 16 countries
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EFL from the borrower’s perspective
Prospective borrowers begin the loan application by answering about 200 assessment questions. Using their finger or a stylus on an Android tablet app or PC, 80% of participants finish within 40 minutes because the questions are written at at third-grade reading level.
The questions are different from what you would expect on a typical loan application and use techniques such as memory recall to keep users engaged (see samples below). It seems more like a game than a test.
Since the application doesn’t require cellular or mobile data, it can be completed offline. This flexibility is crucial when doing business in countries with limited Internet access. The app can be taken into the field (e.g., the borrower’s home or business) or it can be completed in the branch.
Sample question 1 (memory recall challenge):
Sample question 2 (honesty assessment):
Sample question 3 (business intelligence assessment):
From the bank’s perspective
The FI has two options for the underwriting process:
1) They can send one of their loan officers to the customer’s place of business, where the assessment can be taken on a tablet
2) The customer can come into the bank branch and complete the assessment on a PC or tablet
Completed loan applications are submitted to EFL, where the startup analyzes the answers, generates a risk score, and sends the score to the FI within 30 minutes.
In addition to the risk score, the EFL application can also capture:
Each of these extra inputs increases the likelihood that the loan will be repaid.
EFL maintains a database of applicant-info that FIs can use to analyze their borrower base.
What’s next
This week, EFL will be launching in Zimbabwe and is heavily focused on more geographic expansion. Because countries are culturally different, each requires a tailored interaction with the borrower base. EFL is also researching the use of biometrics for additional security on the system.
To learn more about EFL, watch its FinovateAsia 2012 demo.
Yesterday, Social Money debuted iWish, a product powered by GoalSaver, in India.
ICICI Bank, India’s largest private sector bank, now allows customers to publicly save for a goal using iWish, a product that has similar features as SmartyPig, one of Social Money’s consumer products.
One difference between iWish and SmartyPig, however, is that iWish offers an interest rate of 7.5% while SmartyPig offers 1%.
While ICICI is the first to offer a GoalSaver-powered product to its customers, there are many more FIs interested in the product, according to Scott McCormack, Social Money CEO.
To learn more about Social Money’s GoalSaver product, watch its FinovateSpring 2012 demo.
VentureBeat talks with PayPal’s Dan Schatt about its integration with Coinstar kiosks.
Yesterday, iPad-based POS solution provider ShopKeep POS brought in $10 million in series B funding. It has now raised more than $12 million.
Participating investors include:
The New York-based company plans to use the $10 million to integrate with new partners to create a more robust solution for its SMB users and hire engineering talent to build out the iPad-based POS platform.
ShopKeep POS has experienced an eightfold growth since the beginning of this year, with more than 3,000 SMB retailers using the platform.
To learn more about ShopKeep POS, watch its Best of Show-winning FinovateFall 2012 demo.
Finextra features Simple (formerly BankSimple).
American Banker looks at how UMB is implementing Dynamics’ ePlate card technology.
Cloud-based accounting platformXero announced last week a NZ$82 million (US$67 million) investment from the following two companies:
Of the total, NZ$60 mil (US$49 mil) was new money and another NZ$22 million (US$18 million) went to purchase shares from Xero’s three largest shareholders. The new investors purchased the shares in order to minimize dilution to existing shareholders.
To learn more about Xero, watch its FinovateSpring 2011 demo.
Iowa-based payment platform Dwolla made some key announcements today on its blog.
1.) Guest checkout
Users no longer need a Dwolla account to check out online with Dwolla. Instead, users authorize a one-time transfer from their bank account (via ACH).
Once customers opt to pay as a guest, they are routed to Dwolla’s external payment gateway where it takes 60 to 90 seconds to complete the process (assuming you have your checking account number handy) as follows:
a.) Enter name, Zip code, email address
b.) Enter phone number where a text or voice-authentication code is transmitted
c.) Enter the authentication code
d.) Enter bank account and routing numbers
To finalize the transaction, the consumer completes the normal checkout process back at the merchant.
2.) The “Dwolla Price”
Merchants can encourage consumers to use Dwolla by sharing the interchange savings. In the example below, a $100 unit is sold at the discounted price of $98.75 after the 3% interchange savings is split 50/50 with the customer and then the Dwolla flat 25 cents is added back in.
3.) POS integrations
Change and ShopKeep POS can initiate payments with Dwolla instead of using the Dwolla app or mobile wallet partner.
To learn more about Dwolla, watch its FinovateSpring 2012 demo video.
*ShopKeep POS announced its integration at FinovateFall 2012.