Author: Julie Muhn (@julieschicktanz)

Partior Connects to Nium’s Real-Time Payments Infrastructure

Partior Connects to Nium’s Real-Time Payments Infrastructure
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Nium has partnered with Partior, a blockchain-based fintech for clearing and settlement.
  • Through the partnership, banks can use Partior’s network to access Nium’s global payments infrastructure without needing additional API integration, offering seamless real-time transactions.
  • The move makes Nium the first payment service provider to join Partior’s blockchain-based network, enabling real-time cross-border payments, clearing, and settlement across 100+ markets.

Global payments platform Nium announced today that it has partnered with blockchain-based fintech for clearing and settlement Partior. The move makes Nium the first payment service provider to join the Partior network. 

Under the partnership, banks will be able to leverage Partior’s network to connect with Nium to conduct real-time payouts, clearing, and settlement to over 100 markets worldwide any day of the week. Banks will not need additional API integration to work with Nium, since it seamlessly integrates with existing systems to provide instant access to Nium’s cross-border payments network.

Co-headquartered in San Francisco and Singapore, Nium was founded in 2015 to provide banks, payment vendors, and businesses with access to payment and card issuance services. The company’s global infrastructure for real-time cross-border payments supports 100 currencies across 220+ markets. With regulatory licenses and authorizations in more than 40 countries, Nium offers card issuance services in 34 countries.

Not only will today’s partnership with Partior help Nium facilitate global transactions, it will also support new services, including intra-day FX swaps, cross-currency repos, programmable enterprise liquidity management, and Just-in-Time multi-bank payments for banks across the globe.

“Nium’s partnership with Partior brings us closer to becoming the most connected payments network globally. By integrating with advanced networks, such as Partior, we are ensuring that financial institutions can quickly and easily access our real-time payments infrastructure without the need for complex technical integrations,” said Nium Chief Payments Officer Alexandra Johnson. “Recognizing how resource-constrained financial institutions are, we’re eliminating barriers to using our network and increasing interoperability to deliver on our mission of having seamless and streamlined real-time payments to anyone, anywhere.”

Founded in 2021, Partior uses blockchain and distributed ledger technology to streamline digital payments, making them faster, more reliable, and secure. By leveraging the blockchain, Partior eliminates the need for manual reconciliation and account pre-funding, allowing financial institutions to access capital more efficiently and reduce operational overhead. The company’s network supports seamless, real-time clearing and settlement, empowering banks to optimize liquidity and enhance cross-border payment flows.

“Partnering with Nium marks a significant step in our journey to further advance the global payments landscape,” said Partior CEO Humphrey Valenbreder. “By combining Partior’s real-time blockchain settlement network with Nium’s vast global reach, we’re empowering financial institutions to break down long-standing barriers. Imagine a world where cross-border payments are instantaneous, transparent, and accessible to all. This is the future we’re building together.”

The demand for real-time payments is surging across the globe as both consumers and businesses increasingly expect instant access to funds. This boost is driven by regulatory support, the launch of FedNow in the U.S., the increased adoption of enabling technologies such as stablecoins, and rising global commerce. As more players add real-time payments, they will soon become tablestakes across the globe.

Photo by Shubham Dhage on Unsplash

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LendSaaS Taps Ocrolus for AI-Driven Document Analysis

LendSaaS Taps Ocrolus for AI-Driven Document Analysis
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Ocrolus
  • Alternative lending platform LendSaaS now integrates Ocrolus’ AI-powered document automation and fraud detection.
  • Through the partnership, LendSaaS customers gain access to Ocrolus’ automated document review, including bank statement analysis, which helps lenders make faster, more confident funding decisions.
  • The integration with Ocrolus will allow LendSaaS clients to more efficiently leverage data in everything from processing lending applications to accelerating loan origination and facilitating servicing processes.

Alternative lending origination and servicing software provider LendSaaS has teamed up with AI-powered document automation and analysis company Ocrolus this week. The strategic partnership will offer LendSaaS customers access to Ocrolus’ industry-leading document analysis, cash flow analytics, and fraud detection directly through the LendSaaS platform.

“LendSaaS is one of the leading platforms in MCA origination and servicing,” said Ocrolus CEO Sam Bobley. “Thanks to our new partnership, Ocrolus is now an embedded integration available within LendSaaS, allowing customers to achieve end-to-end automation.”

LendSaaS helps lending businesses succeed by offering tools to support everything from loan origination to servicing. The New York-based company offers daily collections through ACH and credit card processors, public data and credit searching, as well as merchant interviews for underwriting, detailed reporting, daily collections, and more. Founded in 2014, LendSaaS has funded $6 billion and processes more than $16 million in average daily ACH volume.

New York-based Ocrolus leverages AI to capture and analyze data from 1,000 different types of documents and digital forms. The company counts more than 400 clients, including Enova, PayPal, Brex, CrossCountry Mortgage, Plaid, and SoFi, who use the solution to detect fraud, analyze cash flows and income, and streamline decisions.

Under today’s partnership, LendSaaS customers will have access to Ocrolus’ technology that will enable them to automate all tasks, such as reviewing documents, including reviewing bank statements and processing independent sales organization (ISO) applications. LendSaaS expects the move will help its customers more efficiently offer businesses with capital.

“Businesses seeking working capital often opt for the first offer they receive. To compete in this fast-paced market, our customers need to be able to make quick and confident financial decisions,” said LendSaaS Owner and Founder Josh Carcione. “By partnering with Ocrolus, we’re working to eliminate the need for manual document review by providing digital access to high-quality data so our customers can get a competitive edge through quick, confident financial decision making.”

Photo by Agence Olloweb on Unsplash

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Wise to Power Cross-Border Payments for Standard Chartered

Wise to Power Cross-Border Payments for Standard Chartered
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Alumni profile, TransferWise, Wise

Global bank Standard Chartered unveiled this week that it has teamed up with cross-border payments fintech Wise (formerly TransferWise). The bank has selected Wise Platform, Wise’s global payments infrastructure for banks, to power international payments for SC Remit, Standard Chartered’s cross-border payment service.

Wise will facilitate fund transfers for SC Remit customers in Asia and the Middle East. Users will be able to send money in 21 currencies– including USD, CAD, EUR, GBP, SGD, HKD, and JPY. Wise will send the funds in seconds using its transparent, low-fee pricing model.

“We’re continually improving how we deliver exceptional banking experiences for our clients,” said Standard Chartered Global Head, Wealth Solutions, Deposits and Mortgages, and Chief Client Officer Samir Subberwal. “We chose to partner with Wise Platform due to their extensive currency coverage and stellar cross-border payments experience they are known for. This collaboration is a key step in enhancing our international payment services as we offer an even more seamless, faster, and efficient digital global payments experience to our clients.”

Standard Chartered said that the service will be available for SC Remit customers “in the coming quarters.” The bank also plans to expand the service to include more currencies, as well as into more markets.

Wise has been facilitating cross-border money transfers since it was founded in 2011. Today, in addition to its transparent, direct-to-consumer money transfer capabilities, Wise also offers a multi-currency account that allows users to save and hold funds in 50 different currencies, and send and receive money in 22 currencies. Wise holds more than 65 payment licenses, as well as six direct connections to payment systems.

Wise Platform, the infrastructure that Standard Chartered is leveraging, offers an API that allows banks and fintechs to embed cross-border payments capabilities into their existing website or app, allowing their customers to transfer 40+ currencies in 160+ countries. The majority (63%) of Wise’s cross-border payments are completed in under 20 seconds, while 95% take less than 24 hours. The U.K.-based company processes $154 billion (£118 billion) annually. Among Wise Platform’s customers are Monzo, N26, deel, and Shinhan Bank.

The topic of cross-border payments has accelerated in recent months, with traditional financial institutions and fintechs recognizing the need to compete by offering low-cost, rapid transactions across the globe. The rise of e-commerce, combined with new needs to pay remote workers, has led to a refreshed demand for cheaper, faster international payments. Today’s digital world has prompted consumers and businesses to expect speed and transparency when transacting, and banks are under new pressure to modernize their cross-border payment services to meet those needs.

Another factor that has brought cross-border transactions into the spotlight this year is the rise in stablecoin usage. As stablecoins become more mainstream and integrated into traditional payments infrastructure, they offer an international funds transfer solution that combines speed, cost-effectiveness, and digital accessibility.

Wise, however, currently does not use stablecoins and has not implemented blockchain technology into its operations. Instead, Wise has established a highly efficient, transparent, and compliant platform that meets compliance standards worldwide. It is unlikely that Wise will seek to leverage stablecoins any time soon, though, as adding stablecoins to its strategy could introduce new regulatory and operational complexities, which could potentially outweigh any benefits.

Photo courtesy Standard Chartered

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Fiserv Leads $150 Million Round in Accounts Payable and Receivable Platform Melio

Fiserv Leads $150 Million Round in Accounts Payable and Receivable Platform Melio
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Funding
  • Melio raised $150 million in a Series E round led by Fiserv.
  • Today’s round values the accounts payable and receivable platform at $2 billion.
  • The company’s 10x revenue growth over the past three years reflects its expansion into medium-sized businesses and new partnerships, significantly broadening its customer base.
  • Melio and Fiserv initially began working together in 2023, when the two launched a combined solution called CashFlow Central.

Accounts payable and receivable platform Melio has landed $150 million in a strategic Series E round led by Fiserv. The investment, which brings the company’s total raised to $654 million, also saw strategic contributions from Shopify Ventures and Capital One Ventures, which are expected to boost Melio’s partnerships. Accel, Bessemer, Coatue, Frontline Ventures, General Catalyst, Latitude, and Thrive Capital also contributed.

Notably, today’s round values Melio at $2 billion. This comes as the New York-based company saw a 10x increase in revenue in the past three years. This growth was fueled by Melio’s move to add medium-sized businesses (SMBs) to its customer base, as well as its addition of new partners.

Melio and Fiserv initially began working together in 2023 in a partnership that combined Melio’s accounts payable and receivable workflows with Fiserv’s payment capabilities and biller and merchant network. The combined solution, called CashFlow Central, allows Fiserv’s 3,500+ financial institution clients to help their SMB customers manage their payment operations and cash flow needs.

“Through our partnership with Melio, CashFlow Central is designed to create significant value for financial institutions and their business clients or members,” said Fiserv Head of Financial Institutions Group John Gibbons. “We are excited to leverage our unique position at the intersection of financial institutions and businesses to deliver a comprehensive, integrated experience that enables our clients to compete and grow their portfolios with this important segment of their communities.”

Melio was founded in 2018 with the mission to empower small businesses and their accountants by enhancing cash flow and streamlining payment operations. The company’s platform simplifies both accounts receivable and accounts payable processes. It allows businesses to manage payments and invoices. Melio integrates with QuickBooks, Xero, and Amazon Business to enable features such as ACH transfers, automated bill payments, and the creation of virtual payment cards. Integrating with a business’ existing accounting tool not only reduces their administrative burden, but it also provides them with greater control, visibility, and flexibility over their finances.

“We’re proud to witness our embedded solution helping our partners better service their business clients, leading to increased deposits, higher engagement and creating new revenue streams,” said Melio CEO and co-founder Matan Bar.

Photo by David Becker on Unsplash

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My Thoughts on the Dopamine Rush of Money20/20

My Thoughts on the Dopamine Rush of Money20/20
By Julie Muhn (@julieschicktanz) Posted on
Categories: Julie's Column, Thought Leadership

74 hours, 52,012 steps, 6 cups of coffee, 8 selfies, and one unforgettable experience.

I am, of course, talking about Money20/20, the mega fintech and banking event that has been taking place in Las Vegas since 2012. With over 10,000 attendees and 300+ vendors, this year’s U.S. event was just as brilliant as in years past.

Themes

Money20/20 is a choose your own adventure type of show, with six stages and two podcast recording studios that each host a range of rotating content throughout the course of four days. Given the wide variety of content available, it was hard to see everything. However, there are three major themes that stand out as highlights: open banking, AI, and the evolution of the payments experience.

Open banking

Open banking– specifically the recently released Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act– was one of the hottest topics of the show. The majority of people on the networking floor I spoke with had not read the entire, 594-page ruling. However, everyone seemed to agree that the scope of 1033 extends far beyond simple account switching capabilities. Panel discussions surrounding the rule also tended to agree that the purpose of the rule is data ownership, and not necessarily data portability.

AI

The topic of AI pulsed throughout almost all on-stage conversations, and was very visible in sponsor pitches on the exhibit hall floor. Money20/20 even featured its own AI bot named Aiana who interacted with the MC on one particular stage. At times, Aiana’s conversation with the MC seemed to be quite coherent and relevant, but the bot occasionally missed the mark.

Perhaps the thing about the AI discussions that surprised me the most was that it was rarely the main feature of a discussion. Instead, conversations tended to pose AI more as a technological enhancement to current offerings, rather than featuring it as the main technology that firms should focus on. This shift gives me some hope that we have moved past talking about the hype of AI and into thinking of it as an enabling technology.

Payments

Payments was a huge focus for multiple on-stage discussions at the show. Among the hottest topics were cross-border payments, stablecoins, and instant payments. What was missing from many conversations that I saw in this realm, however, were discussions of the impact of fraud and regulation. I think this may have been because many speakers on stage represented larger firms or fintechs in the payments space who wanted to get a more positive message across without bringing up the topic of risk.

AI Adoption Index

In addition to these on-stage themes, I was able to review data published in Money2020’s very first AI Adoption Index report, All in on AI: Financial Services Adoption Index 2024. Produced in conjunction with Acrew Capital, the index surveys 221 leading financial institutions and combines that with data about all publicly announced AI initiatives since the start of 2023. Here are some of the top highlights:

  • 76% of companies indicated they have announced an AI initiative
  • 46% of companies have announced GenAI initiatives
  • Out of all initiatives, 57% are put in place to generate revenue, while 43% aim to reduce costs
  • Public companies announced 40% more initiatives compared to private companies
  • Block, Intuit, JP Morgan, Chime, and Stripe account for 15% of the total AI initiatives
  • 51% of companies surveyed have built AI into their core customer-facing product. This figure does not include AI usage in a CRM setting.

Conversations

As always, the highlight of the event was the people. After working in this space for 15 years, I’ve found a diverse network that fosters community and works to build each other up. During last week’s event, I met Finnovator Founder Michelle Beyo, who discussed the benefits of personal data ownership; caught up with Sam Maule, who talked about the downsides of pay-by-bank (and was forced into yet another conversation about Walmart); Tiffani Montez, who explained why open banking is far superior to ye olde account aggregation; as well as multiple others who added depth and color to the topics being discussed.

Experience highlights

Money20/20 is now part of a newly launched Informa division called Informa Festivals, and the conference fits this description quite nicely. There are multiple elements of the conference that are all about the experience. And while not all of them are officially sanctioned by Money20/20, each element comes together to craft an amazing conference experience.

Throughout the event venue there were multiple photo opportunities, including a talking selfie wall that lit up, greeted conference goers, and invited them to get their picture taken. Then there was the connection wall, where attendees could scan their badges in conjunction with others, see their names projected onto a wall, and receive a Money20/20 branded coin that they could use to exchange in a merchandise store. There was also a video studio where the conference recorded a video of attendees in front of an animated “honey wall,” complete with a live beekeeper who danced at the end (yes, you kind of had to be there for that one).

Outside of the event, I enjoyed a morning of yoga sponsored by Mesa, Visa, and JP Morgan; a women in fintech happy hour event (complete with a Dolly Pardon impersonator) sponsored by Alloy; and a Halloween-themed happy hour with costumes and Beetlejuice selfies sponsored by SentiLink. Thanks to everyone for putting on such great events, and a huge thank you to Money20/20 for hosting me!

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Affirm Makes Flexible Pay Options Available in the U.K.

Affirm Makes Flexible Pay Options Available in the U.K.
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Affirm is launching its services in the U.K., marking its third market entry following the U.S. and Canada.
  • U.K. shoppers can now access Affirm’s interest-free and fixed-interest BNPL options.
  • Affirm joins Klarna, Clearpay (Afterpay), and Laybuy as major BNPL players in the U.K. region.

California-based buy now, pay later (BNPL) player Affirm announced this week that it is taking its services overseas. The company is now allowing U.K. consumers to use its pay-over-time payment tools to receive more flexible payment options.

The move marks Affirm’s third geography and will add to the company’s network of 300,000 merchants and 50 million end customers in the U.S. and Canada. At launch, U.K. shoppers will have access to Affirm’s interest-free payment option as well as its interest-bearing option that applies a fixed interest on purchases calculated on the original payment amount.

“Affirm was founded on the premise of putting people first and empowering consumers to take greater control over their finances. Building on our leadership in the U.S. and Canada, where we partner with top retailers and commerce platforms, we see a significant opportunity to extend our mission of building honest financial products to the U.K.,” said Affirm Founder and CEO Max Levchin. “We know that U.K. consumers are savvy shoppers who appreciate upfront, no-nonsense products. We look forward to offering them responsible credit options that truly put consumers first and working collaboratively with our U.K. partners to demonstrate how honest finance is good business.”

Affirm, which is regulated by the U.K. Financial Conduct Authority (FCA), is launching in partnership with payments processor Fexco and flight booking site Alternative Airlines, which will be the pilot merchant for Affirm’s BNPL tools. The company plans to announce additional U.K. and international brand partnerships in the future.

“There are many brilliant businesses in the U.K. that make this country what it is – and we can’t wait to start working with them,” said Affirm’s U.K. Country Manager Ruth Spratt. “The U.K.’s open economy, mature consumer market, and world-class talent makes it the perfect place for the next phase of Affirm’s journey. By entering the U.K. alongside a leading travel provider and platform partner, we’re able to expediently and deliberately begin growing Affirm’s U.K. network of consumers and merchants. We look forward to continuing to expand in the coming months.”

Spratt, who most recently served as U.K. Country Manager and Board Director for Affirm competitor Zip, will lead a team of more than 30 U.K. employees to expand Affirm’s merchant and channel partnerships. Spratt plans to onboard more staff by the end of the year, adding to Affirm’s base of 2,000 employees across the globe.

Founded in 2012, Affirm has facilitated more than 17 million purchases and counts brands including Amazon, Shopify, Walmart, and others among its merchant partners. In the past five years, the company has processed more than $75 billion. Affirm, which went public in 2021, currently trades on the NASDAQ under the ticker AFRM with a market capitalization of $13.8 billion.

Affirm’s entry into the U.K. BNPL market adds a competitive new player to the space, which already hosts established players including Klarna, Clearpay (Afterpay), and Laybuy. While Affirm will face strong competition from these brands, the company’s reputation for transparency may resonate with consumers, and will prove helpful as the FCA prepares to tighten regulatory oversight on BNPL providers by requiring affordability checks, advertising standards, and credit reporting.

Photo by Pixabay

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Finix Brings in $75 Million

Finix Brings in $75 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Funding
  • Finix raised $75 million in a Series C round led by Acrew Capital, with contributions from Citi Ventures, Tribeca Venture Partners, and other prominent investors.
  • The new funds boost Finix’s total funding to over $208 million.
  • Finix processes 432 million transactions daily across the U.S. and Canada.

Payments processing company Finix has landed $75 million this week. The Series C investment, which brings the company’s total funding to just over $208 million, was led by Acrew Capital and co-led by Leap Global and Lightspeed Venture Partners. New investors Citi Ventures and Tribeca Venture Partners also contributed alongside existing investors Homebrew, Insight Partners, Inspired Capital, and Cap Table Coalition.

Finix was founded in 2015 to help banks, acquirers, and enterprises own, manage, and monetize their payments with a low-code user experience. The company processes 432 million transactions on a daily basis for software platforms, marketplaces, retail, and e-commerce businesses across the U.S. and Canada.

“Finix offers no-code payment solutions for the 22 million businesses without developers, ​​enabling seamless payment integrations with little to no technical expertise,” said Finix CEO and Co-founder Richie Serna. “When we started Finix, we were big believers in the developer movement, and we still are! But over time we’ve seen a major shift in the market. Even businesses that have developers don’t want to spend their time or resources on payments — they want highly brandable, configurable payment solutions that require little to no technical expertise to implement. From startups to publicly traded companies, merchants to vertical SaaS companies, customers of all sizes are taking advantage of Finix’s no-code solutions. Today, every feature in our broad product suite is now available in no-code, low-code and API-driven solutions.”

The funds come at a time of growth for the California-based company. Finix has quadrupled its revenue in the last year. And while the company has not disclosed how many merchants it currently serves, Finix told TechCrunch that it supported more than 12,000 merchants in 2022 and that it has so far closed a record number of merchant deals this year. This growth was likely spurred by Finix becoming a full-stack acquirer processor in May 2023.

As for the next evolution of Finix, Serna said that the company has evolved into a full-stack acquirer/processor. As a testament to this, Finix currently offers real-time payouts, no-code/low-code capabilities, omnichannel support for both card-present and card-not-present transactions, and cross-border payments capabilities.

Photo by Marcel Eberle on Unsplash

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Socure Acquires Real-Time Risk Decisioning Company Effectiv for $136 Million

Socure Acquires Real-Time Risk Decisioning Company Effectiv for $136 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Effectiv, Mergers & Acquisitions, Socure
  • Socure has acquired risk decisioning company Effectiv for $136 million
  • Socure will integrate Effectiv’s AI-powered orchestration platform into its digital identity verification and fraud solutions.
  • The acquisition will enable Socure to enhance fraud prevention, automate identity verification, and manage risk across onboarding, authentication, payments, account changes, and more.

Digital identity verification company Socure has acquired risk decisioning company Effectiv in a $136 million deal.

The agreement, which is set to close next month, will bring Effectiv’s developer-friendly, AI orchestration and decisions platform into Socure’s digital identity verification and fraud solutions platform. Socure expects the purchase will enhance its customers’ fraud-fighting efforts while offering the ability to verify identities across the entire customer journey.

Socure will use Effectiv to create complex, combinatorial rules that apply not only to its own solutions but also to those from third parties. Effectiv will provide a unified approach to enhancing identity verification for Socure, automating risk and trust decisions across various processes, including onboarding, authentication, payments, account updates, account recovery, and regulatory filings.

Effectiv, which demoed at FinovateFall 2023, was founded in 2021 to provide an open platform that integrates a wide range of risk solutions– including identity and payment fraud controls, underwriting, Know Your Business (KYB) and anti-money laundering (AML) tools– to facilitate decisions in real-time. Using Effectiv’s technology, firms can combat identity theft, account takeover, scams, and real-time payment fraud. Among the company’s clients are Ouro/Netspend, Lightspeed Commerce, Cardless, and Payco.

Today’s move positions Socure in the $200 billion enterprise fraud industry. The Nevada-based company, which currently serves 2,700 customers, will now be able to help its clients tackle payments fraud, credit underwriting, and AML transaction monitoring.

“With a world-class platform from Effectiv and analytics that allows for adaptive and progressive risk decisioning, we will be able to help our partners with a single view of identity to drive instant risk and trust decisions anytime, anywhere,” said Socure founder and CEO Johnny Ayers.

This isn’t Socure’s first time working with the Effectiv team. The company worked with Effectiv founders Ravi Sandepudi, Ritesh Arora, Jonathan Doering, and Anupam Tarsauliya when they worked at fraud prevention platform Simility before it was acquired by PayPal for $120 million in 2018.

Logistically, the Effectiv team will join Socure. The group will work to develop and promote Socure’s platform product, engineering, data science, and will immediately contribute to its enterprise go-to-market strategy.

“Socure has uniquely built everything required to solve for new account opening at the identity level—arguably the hardest problem because it’s the first time you’ve seen the consumer,” said Effectiv CEO and Co-founder Ravi Sandepudi. “Now we can review and analyze the user’s risk profile across transactions and accounts over time, maintaining an up-to-date perspective which was impossible before.”

Sandepudi will become Head of Platform Products at Socure.

Photo by Fernando Arcos

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Streamly Snapshot: Leveraging AI for High-Touch Experiences

Streamly Snapshot: Leveraging AI for High-Touch Experiences
By Julie Muhn (@julieschicktanz) Posted on
Categories: Finalytics.ai, Marketing, Streamly

Personalizing the customer experience has consistently been a hot topic in fintech and banking over the past decade. This persistence suggests that the financial services industry continues to fall short when it comes to providing a high-quality, tailored user experience.

In the past year, we have seen significant promise from AI tools that can integrate personalization into the customer workflow while still maintaining a high-touch user experience. In today’s Streamly Snapshot, Research Analyst David Penn talks with Craig MacLaughlin, CEO at Finalytics.ai and Baron Conway, CSO at Finalytics.ai about the meaning of personalization, how financial institutions stand to gain from it, the role AI is playing in enhancing personalization, and how firms can embark upon their journey of personalization.

“The ability to deliver the high-touch service– something you were able to do on the phone or in the branch– has really been taken away. So we look at the opportunity to use personalization to get back that experience, but deliver it digitally,” said MacLaughlin. “We’re basically giving community FIs the ability to deliver the same experiences that mega brands are able to do in the digital channel.”

“So to build upon that,” added Conway, “from an institution’s perspective, it enables them, in the digital channel, to build closer relationships, build more loyalty, and– crucially– drive more product sales. Because, if you give someone what they’re looking for, they’re more likely to engage, and purchase, and come back for more.”

Finalytics.ai seeks to help community banks and credit unions compete with larger organizations by helping them personalize the customer journey. The California-based company leverages AI along with real-time data analytics to help drive growth, loyalty, and operational efficiencies.

By blending personalization and innovation, Finalytics.ai helps its financial institution clients meet the evolving needs of their customers in today’s competitive landscape.

Photo by cottonbro studio

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U.K.-Based Moneybox Lands $90 Million for its Saving and Investing Platform 

U.K.-Based Moneybox Lands $90 Million for its Saving and Investing Platform 
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Funding
  • Moneybox raised $90 million (£70 million) in a round led by Apis Global Growth Fund III and Amundi.
  • Today’s investment boosts Moneybox’s total funding to $213.4 million (£165 million).
  • Moneybox has grown rapidly, achieving an 84% increase in valuation since 2022, and will use the funds to further innovation and strengthen its market position.

Savings and investment platform Moneybox landed $90 million (£70 million) today. The round was led by Apis Global Growth Fund III and includes funds from Amundi.

“We are excited to welcome Apis and Amundi, who share our vision for how we can help millions of customers build wealth so they can live the life that they want – whether that’s saving for their first place in their 20s, being their own boss in their 40s, or taking the gap year that they never got round to in their 60s,” said Moneybox Co-founder and Executive Chair Ben Stanway.

Today’s funds boost the U.K.-based company’s total funding to $213.4 million (£165 million). This investment will largely be achieved via a secondary share sale in which existing investors will sell 10% to 15% of the current share capital. 

“We are also delighted to be able to facilitate this secondary share sale to recognize the hard work of our team and also our investors, many of whom have supported us since inception. We want to enable our shareholder community to realize some of the value of their investment at this important juncture,” added Stanway.

Founded in 2015, Moneybox offers investing, saving, pension, and home-buying Lifetime ISA tools in a single app. The company, which currently counts one million users and surpassed £10 billion in assets under administration in 2023, will use today’s funds to further its innovation, build on its growth, and ultimately strengthen its market position.

The investment comes two-and-a-half years after Moneybox’s £35 million ($45 million) Series D round in 2022, which valued the company at $388 million (£300 million). Moneybox has made an impressive acceleration since then, boosting its valuation by 84% to $711 million (£550 million).

“Moneybox is revolutionizing the way people approach personal finance by making saving and investing more accessible and understandable,” said Apis Co-Founder and Managing Partner Matteo Stefanel. “Moneybox’s mission to help everyone save and build wealth for the future aligns with Apis’ democratisation of finance theme and Impact goals, and we’re excited to support the team in this phase of their journey.”

Photo by cottonbro studio

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How the CFPB’s 1033 Final Rule Differs from the Initial Proposal

How the CFPB’s 1033 Final Rule Differs from the Initial Proposal
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Thought Leadership

Today is a day the U.S. financial services community has been waiting for for at least a year– the Consumer Financial Protection Bureau (CFPB) issued its final 1033 rule making. The new rule, issued in the form of a 594-page document, aims to enhance consumers’ rights, privacy, and security over their own personal financial data.

In order to accomplish this, the CFPB is requiring financial institutions, credit card issuers, and third-party fintech providers to make consumers’ personal financial data available to transfer to another provider for free. As a result, consumers will be able to add or switch providers in order to access better rates, receive better terms, and find services that best suit their needs. The CFPB states that the rule promotes competition and consumer choice, and will ultimately help improve customer service.

“Too many Americans are stuck in financial products with lousy rates and service,” said CFPB Director Rohit Chopra. “Today’s action will give people more power to get better rates and service on bank accounts, credit cards, and more.”

Today’s rule comes about a year after the CFPB issued a much shorter, 29-page document that proposed the change. So, aside from the document length, how does last year’s proposal differ from this year’s official ruling? Here are a aspects to note.

As you may expect the final ruling provides a much more comprehensive and detailed explanation of the CFPB’s approach to regulating consumer access to financial data. The new document offers the rationale behind the rule, defines key terms, specifies requirements for data providers and third parties, and analyzes the rule’s potential impact on the market. Here are some specific differences between the proposed rule-making and today’s official rule.

Transitioning away from screen scraping

The final rule-making discusses the issues of screen scraping and emphasizes the aim to promote safer and more standardized methods to access data via developer interfaces.

Liability considerations

Today’s rule touches on the liability that stems from data sharing and explains the CFPB’s approach to addressing the liability with regulations and industry standards.

Interaction with other laws

The final rule includes a discussion on how it interacts with other existing laws, such as the Fair Credit Reporting Act (FCRA) and the Gramm-Leach-Bliley Act (GLBA).

CFPB oversight and enforcement

The rule released today includes the CFPB’s plans for overseeing and enforcing the rule’s requirements, including details on supervising third parties and addressing consumer complaints.

Scope of data coverage

The final rule offers a detailed look at the types of data covered by the rule, including discussions about specific data fields and potential exclusions.

Definition of consumer

Today’s rule specifically defines what constitutes a consumer for the purposes of the rule. It also offers explanations about why it includes trusts established for tax or estate planning purposes in its definition of consumers.

Requirements for developer interfaces

The final rule lays out specific requirements that data providers must adhere to when it comes to the performance, security, and functionality of their developer interfaces.

Prohibition on fees

Today’s rule offers an explanation on why it is prohibited to charge fees to access data.

Authorization and revocation procedures

The final rule details how consumers can authorize and revoke third-party access. It also discusses what organizations must put into their authorization disclosures, and details the consumer notification process.

Third-party obligations

Today’s final rule details obligations for third parties that access consumer data, including limitations on data collection, use, and retention, as well as requirements for data accuracy and security.

Impact analysis

The final rule analyzes the potential benefits and costs of the rule for various stakeholders, including data providers, third parties, and consumers.

Photo by Gratisography

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What Stripe’s Purchase of Bridge Means for Stablecoins in the U.S.

What Stripe’s Purchase of Bridge Means for Stablecoins in the U.S.
By Julie Muhn (@julieschicktanz) Posted on
Categories: Julie's Column, Thought Leadership

After rumors swirled over the weekend, we now know that it is official: payments processing company Stripe has acquired stablecoin platform Bridge for $1.1 billion.

For Stripe, which was valued at $70 billion earlier this year, the Bridge deal marks its largest acquisition since it was founded in 2010.

Bridge was founded in 2022 to serve as an alternative payment method to compete with SWIFT and credit cards. The company’s technology allows businesses to move, store, and accept stablecoins using just a few lines of code. Companies can also leverage Bridge’s Issuance APIs to issue their own stablecoin and accept USD, EUR, USDC, USDT or any other stablecoin. After integration has taken place, companies can move money near-instantly and at a low cost around the globe.

“As we’ve gotten to know the Stripe team, it’s become clear that we both share a vision for what’s possible with stablecoins and an excitement around the opportunity to create and build this future,” said Bridge Co-Founder Zach Abrams in a LinkedIn post. “Stripe operates globally and understands better than almost anyone the problems created by our existing localized payment systems. Our teams share an excitement about stablecoins and vision for how to maximize their impact. Together, we’ll be able to solve bigger problems, support more developers, and help more consumers and businesses all across the world.”

Stripe processed $1 trillion in payment volume in 2023, a metric that places the fintech among the top payment processors in the U.S. With this influence, there are a few implications that Stripe’s Bridge acquisition holds for the U.S. stablecoin market.

Increased stablecoin adoption

Once it integrates Bridge’s technology, Stripe will be able to offer instant, low-cost settlements through stablecoins. Creating a low-cost alternative to traditional payments will make stablecoins more attractive for businesses and could lead to wider adoption in mainstream payment systems.

Cross-border payments expansion

The Bridge acquisition may enable Stripe to enhance its global payments infrastructure. This will place stablecoins as a go-to method for faster, cheaper cross-border transactions. In today’s landscape, where large, traditional players are developing new tools for cross-border payments, many still face high fees and longer settlement times. Stripe’s usage of stablecoins will help it circumvent many of those issues.

More competition

Stripe’s entry into the stablecoin space will increase competition among fintechs offering stablecoin-based payment services. The introduction of Stripe’s real-time, cross-border payment service may pressure other companies to create new offerings or improve their existing products to keep up with Stripe’s client base and new resources brought on by today’s acquisition.

Regulatory focus

As Stripe begins to use stablecoins in more traditionally regulated financial environments, it may gain the attention of U.S. regulators. This increased attention toward the stablecoin space may prompt regulators to increase enforcement efforts and could even lead to them creating clearer guidelines around stablecoin use.

Stripe’s acquisition of Bridge will position it as a key player in the stablecoin space. With Stripe’s long-standing payment processing infrastructure and global reach, once Stripe integrates Bridge’s stablecoin technology, it is poised to accelerate stablecoin adoption across mainstream payment systems.

Photo by Scott Webb

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