Author: Julie Muhn (@julieschicktanz)

Coinbase Launches Wallet-as-a-Service

Coinbase Launches Wallet-as-a-Service
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Coinbase, Daily news
  • Coinbase is launching a Wallet-as-a-Service (WaaS).
  • The offering will enable businesses to build web3 wallets for their customers, using only web2 skills.
  • Initial customers for the launch include NFT marketplace Floor, gaming platform Moonray, and token-gated events site Tokenproof.

Digital currency platform Coinbase launched a Wallet-as-a-Service (WaaS) this week. The new offering is aimed to help any company build customizable wallets for their clients, bringing them into the web3 era.

The launch comes after Coinbase realized that web3 wallets were out of reach for many businesses. These on-chain wallets– which help users store digital assets, facilitate transactions, and act as a digital identity– are complex and require technical knowledge. Coinbase’s WaaS aims to simplify things by enabling companies to offer a digital wallet onboarding experience that requires only a username and password. Coinbase will also enable companies to offer the wallet within their own app, enabling in-app transfers of currency or digital assets all in one place.

The WaaS tool enables users to access a web3 wallet using a web2 interface. Also making things easier for those new to web3 is the security. With WaaS, users are not required to manage their own keys. Instead, Coinbase uses advanced multi-party computation to securely divide, encrypt, and distribute keys among multiple parties.

Coinbase has already secured a handful of clients for its WaaS, including NFT marketplace Floor, gaming platform Moonray, and token-gated events site Tokenproof. “Individuals will no longer have to come with knowledge of how the blockchain works in order to interact with the brands they love,” said Tokenproof Founder Fonz. “When users download the tokenproof app, we’ll help welcome them into web3 by creating their first wallet, which will be powered by Coinbase.”

With 1,110 verified users on its platform, Coinbase sees $145 billion in quarterly volume traded and has $80 billion in assets on its platform. The company went public in 2021 and now trades on the NASDAQ under the ticker COIN with a current market capitalization of $14 billion. Earlier this month, Coinbase acquired digital asset management company One River Digital Asset Management in an effort to bridge the gap between financial institutions and the crypto economy.

Photo by Lukas

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Ramp Lands $5 Million to Automate Revenue Forecasting

Ramp Lands $5 Million to Automate Revenue Forecasting
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Funding
  • U.K.-based Ramp raised $5 million in Seed funding for its business forecasting tools.
  • This marks the company’s first round of funding.
  • The round was led by AlbionVC and Eurazeo with participation from Triple Point Ventures and a group of Angel Investors.

Business forecasting company Ramp (not to be confused with business finance automation startup Ramp) raised $5 million in Seed funding this week. The round was led by AlbionVC and Eurazeo with participation from Triple Point Ventures and a handful of Angel Investors.

Ramp, which plans to use the funds to streamline and scale client onboarding, offers businesses forecasting tools to help finance teams enhance revenue predictions. The company aims to replace the Excel spreadsheets many businesses use for revenue forecasting with a more sophisticated tool. Ramp’s technology enables businesses to run scenarios and forecast in a matter of minutes and predict customer behavior, future revenue, and annual growth.

“Our platform dramatically increases the accuracy of revenue forecasting in a fraction of time it would take in spreadsheets,” said Ramp Chief Strategy Officer and co-founder Angus Lovitt. “What took us all a day in terms of number crunching we can now do in minutes. Yet what really excites me about the platform are the strategic decisions we empower businesses to make.”

Lovitt brings his experience from the computer gaming world to Ramp. He helped scale the popular Candy Crush game during his tenure at King Digital Entertainment. Lovitt also carries over his connections to the gaming community. He has brought on a handful of gaming clients– including Space Ape Games, FRVR, Pixel United, and Netspeak Games– to Ramp.

U.K.-based Ramp was founded in 2018 and specializes in cohort-based forecasting. With an ambition to become a tech unicorn, today was Ramp’s first round of funding. “Our long term goal is to position Ramp as a single source of truth for the future of businesses, from which prescriptive and proactive analytics services can stem,” said company CEO Dan Marcus. “We’re at the forefront of this new product category and it’s great to have such renowned investors believe in this vision and join us on this journey.” Marcus described the VC funding process in a recent blog post.

Photo by Sujira Su

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Modern Treasury Unveils Global ACH Payment Tool

Modern Treasury Unveils Global ACH Payment Tool
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Modern Payments and Silicon Valley Bank partnered to launch a cross-border money movement tool called Global ACH.
  • Global ACH leverages local payment rails to enable mutual clients to send cross-border payments.
  • Global ACH differs from SWIFT in that it is less expensive and works better for fast, one-off transactions.

Payment operations platform Modern Treasury has teamed up with Silicon Valley Bank to create a new cross-border payments solution. Global ACH, the new tool, will allow mutual clients to send cross-border payments via local payment rails.

The goal of Global ACH is to provide users an option other than the SWIFT network to send payments internationally. Global ACH enables customers to automate international payments using the local payment rails– equivalent to ACH and RTP– in each country. Leveraging local rails promotes efficiency and helps to lower the costs associated with cross-border payments.

“Payments are in the midst of a massive transformation, and it’s critical that we support our customers with an international footprint in the same way we support them domestically,” said Modern Treasury CEO and Co-founder Dimitri Dadiomov. “Global ACH means providing customers with more choice, greater efficiency, and lower costs. We’re happy to work with Silicon Valley Bank to bring this capability to our mutual clients to help them scale.”

Potential use cases for Global ACH include:

  • Marketplaces that pay out users and suppliers in international markets
  • Shipping and logistics firms that disburse funds to vendors and suppliers abroad
  • Financial services such as payroll and lenders sending funds to international recipients
  • Companies that need to pay large numbers of international suppliers and contractors
  • Software providers offering accounts payable services for clients paying out globally or facilitating remittances

Today’s partnership builds on an existing relationship between Modern Treasury and Silicon Valley Bank. The two currently offer international payment capabilities using the SWIFT network. SWIFT differs from Global ACH in that it works well for fast, one-off international payments. SWIFT is also more expensive than Global ACH. This is why the two anticipate Global ACH to be more popular for companies with recurring international payments and smaller value payouts.

“We are always looking to enhance the payments experience for our fast-growing and innovative clients, many of whom have, or plan to have, an international presence,” said Silicon Valley Bank Head of Payments Kathleen Pierce-Gilmore. “By bringing together the power of SVB’s Global ACH capabilities and the strength of Modern Treasury’s platform, we will enable more of our mutual clients to move money faster, with real-time data visibility and more efficient workflows.”

Founded in 2018, Modern Payments offers APIs to automate money movement while providing control over fund flows with approval workflows, notifications, reporting, and more. The company has raised $183 million and is headquartered in California.

Photo by Pixabay

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The Five People You’ll Meet at FinovateEurope

The Five People You’ll Meet at FinovateEurope
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinovateEurope 2023, List series

It’s the first day of March, which means FinovateEurope is officially taking place this month on March 14 through 15 at the Intercontinental O2 in London (there’s still time to register). As you preview the agenda and prepare your notes on must-see company demos, you’re probably also filling your schedule with meetings and after parties. Because, let’s face it– sometimes the networking is just as good as the on-stage content.

After 12 years of attending Finovate events, I’ve seen some unique attendees on the networking floor– including a dog and a baby. But who can you expect to see this year? Our audience is generally comprised of financial institution executives, startup representatives, industry analysts, and venture capitalists. However, everyone has a unique “conference personality.” Below, I’ve broken down these personalities into five categories.

The Front Row Fiend

This is the person that arrives extra early to secure their seat in the front row. They’re usually analysts or journalists in search of taking quality, up-close pictures of the on-stage discussions. As an added bonus, because they have their choice of auditorium seat, they usually secure a spot next to a much-coveted power outlet.

The Standing Room Only

Opposite in personality to the Front Row Fiend, the Standing Room Only person prefers the back row. They like being in the back so much that they forgo the luxury of sitting, even during the longest sessions. Whether they stand in the back because they are hoping to run into a colleague or because they enjoy watching the people in the audience, it is possible that the handful of people that stand in the back of the auditorium know something that the rest of us don’t.

The Demo Obsessed

Finovate was a pioneer of the tech demo model back in 2007, and many veteran attendees return each year just to watch the demos. This is where the Demo Obsessed personality comes from. These are the people that pay attention to every detail of every demo. They are both quick to applaud and quick to critique. This brings me to the next personality…

The Tweeter

This person is the perfect combination of someone who thinks quickly on their feet and who knows how to work a social platform. During every session, the Tweeter always has their two thumbs ready to type a comment, reply, critique, or a recently stated statistic into Twitter– and they always do so using the correct hashtags while tagging the proper username.

The Hallway Conference Caller

If you go to enough conferences, there’s no doubt you’ve been the Hallway Conference Caller at some point. This is the person huddled in a corner wearing ear pods and holding their computer so they can jump on a weekly scheduled call and quickly have their input before returning to the auditorium or networking floor.

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Wise Launches Two New Products, Undergoes Rebrand

Wise Launches Two New Products, Undergoes Rebrand
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, TransferWise, Wise
  • Wise is unveiling a new look and feel, as well as two new products.
  • The company anticipates its “visual makeover” will create a more consistent user experience.
  • The two new products include the Wise Business Card and a money transfer link.

It can be tough for a legacy fintech to make noise among the onslaught of new competing digital tools released on a weekly basis. Despite the challenge, cross-border money transfer product Wise is finding a way.

The U.K.-based company has swapped its color scheme from blue to green. But that’s not all that has changed. As Wise described in a press announcement, “The complete visual makeover features a fresh green palette and a bold new font, and draws from global currencies, languages, alphabets and places around the world.”

Interestingly, Wise changed its name from Transferwise two years ago in an effort to broaden its image from a money transfer company to a more holistic global banking services provider. Today’s change could be seen as a next step in that process. Wise explained that the new look and feel will make its customer experience consistent regardless of the customer’s geographical location or language. This new experience reinforces Wise’s mission to “build money without borders.”

Describing the visual change, Wise Co-founder and CEO Kristo Käärmann said, “Our new look is inspired by the millions of people and businesses worldwide that use Wise today. It draws from where they come from, but also represents the excitement of the world open for them to conquer.”

Today’s announcement also highlighted two new products for the global money firm. The first is the Wise Business Card, which is an extension of the company’s Wise Account. The card is currently available to U.S. customers. The second new product– also for U.S. users– enables users to transfer money to recipients via a link. Instead of requiring the sender to know the recipient’s bank details, the recipient can securely enters their bank credentials after clicking on the link.

Despite today’s progress, Käärmann says the company still has a long road ahead. “People and businesses are still being duped by hidden fees, and losing over £180 billion each year to their banks,” he explained. “This is money they could have otherwise used to pay bills, expand their businesses or even save for a rainy day. We don’t accept it and we’re committed to solving this for everyone, everywhere.”

Wise also celebrated a new milestone in today’s announcement. The company has reached 16 million customers since launching in 2011. Wise’s technology enables people and businesses to hold funds in more than 50 currencies, as well as move money between countries and spend money across international borders. The company went public in mid-2021 and now trades on the London Stock Exchange under the ticker WISE with a current market capitalization of $5.94 billion.

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Klarna Reports Loss But Plans to Return to Profitability by Summer

Klarna Reports Loss But Plans to Return to Profitability by Summer
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Klarna
  • Klarna reported a $1 billion operating loss in 2022, up from a $680 million operating loss in 2021.
  • Despite the loss, Klarna plans to return to profitability by this summer.
  • Klarna last reported a full year profitability in 2018.

Consumer payment services company Klarna is inching toward profitability, but is still in the red.

The Swedish company released its operating figures this week, reporting an operating loss of $1 billion for 2022 (10.5 billion crowns). The negative side of the news is that Klarna’s operating loss increased– the company reported a loss of $680 million in 2021. But the positive spin is that Klarna plans to return to profitability by summer.

Last week, the buy now, pay later (BNPL) player reported it has seen a large amount of growth in its U.S. market. The region generated a 71% year-over-year increase in gross merchandise volume, while improving credit loss rates by 37%. As of December 2022, the U.S– with its 34 million consumers– has become Klarna’s largest market by revenue.

Klarna, which last posted a full-year profit in 2018, may be able to reach its 2023 profitability goal. The company has seen increased growth in the U.S. and the U.K. “The U.S. and the U.K. [are] growing at a very high pace, pushing up the average growth number for the whole company,” said company Chief Executive Sebastian Siemiatkowski in a statement to Reuters. Additionally, the company restructured in 2022. Klarna let go of 10% of its staff in May of last year in an effort to rein in costs.

With 150 million customers across the globe, Klarna is one of the pioneers in the BNPL arena and currently offers its BNPL payment tools in 45 markets. More than 400,000 retailers, including H&M, Macy’s, and IKEA, offer Klarna within their checkout flow. The company has raised $4.5 billion since it was founded in 2005.

Photo by Mac Mullins

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Western Union Taps Beforepay for Send Now, Pay Later

Western Union Taps Beforepay for Send Now, Pay Later
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Western Union
Western Union tapped Beforepay to enable clients in Australia to pay for money transfers in installments after the transfer has been sent.
  • Western Union and Beforepay announced a partnership that will enable Australians to pay for money transfers in installments after the money has been sent.
  • Called Send Now, Pay Later, the tool enables users to borrow around $1,400 (AUD $2,000) and repay in installments over a short period of time.
  • 44% of Australia’s consumers said they would like an option to Send Now, Pay Later.

Global money transfer company Western Union is teaming up with payment innovator Beforepay to offer its Australia-based customers a short-term loan option. Dubbed Send Now, Pay Later, the tool leverages Beforepay’s wage-advance product to enable users to borrow up to around $1,400 (AUD $2,000) via Western Union’s digital channels.

Registration for the new service takes “minutes” and users can repay the amount in multiple installments. Western Union is hoping the new capability will enable Australia users to increase the amount of their money transfers. The company reports that 44% of Australia’s consumers said they would like an option to Send Now, Pay Later.

“We are committed to supporting our customers and their communities by offering financial services that are accessible, ethical, and reliable,” said Western Union Regional Vice President of Australia, New Zealand, and the Pacific Islands Gregory Laurent. “Western Union’s mission is to make financial services accessible to people everywhere. Our collaboration with Beforepay is another step towards achieving this mission – giving customers the opportunity to access additional funds as they send money to families and communities. We are excited about the positive impact it can have for consumers, as they proactively look for convenient options to meet their financial needs.”

Western Union was founded in 1851 and is one of the oldest cross-border money transfer pioneers.  The company enables users to send international money transfers in more than 130 currencies to over 200 countries and territories. Last August, Western Union expanded its partnership with Visa to bring Visa Direct to its U.S. clients.

With 750,000 registered users, Beforepay offers a wage advance product that extends small dollar loans over a short period of time. The company charges a 5% fee for its flagship product, but does not charge interest, late fees, or penalty fees. The average Beforepay advance totals $275 (AUD $400), and is repaid in an average of three to four weeks.

“We’re excited to collaborate with Western Union to support their customers with access to safe, affordable short-term lending,” said Beforepay CEO Jamie Twiss. “Beforepay and Western Union share a vision of providing inclusive financial services to aspiring consumers around the world.”

Photo credit: Western Union

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Pinwheel CEO Kurt Lin on the Impact of the CFPB on Open Finance

Pinwheel CEO Kurt Lin on the Impact of the CFPB on Open Finance
By Julie Muhn (@julieschicktanz) Posted on
Categories: Speaker series
CFPB Open Finance

The U.S. is still in the early stages of implementing open banking, but the conversation is well underway. Kurt Lin, CEO and co-founder of Pinwheel, is an industry expert who has spent his career building infrastructure to enable innovators to build the future of the financial system. In a recent interview, he discussed how the role of the Consumer Financial Protection Bureau (CFPB) has evolved and how recent regulations may bring open banking to the U.S.

How has the role of the CFPB evolved and how will these changes impact consumers?

Kurt Lin: As the fintech space continues to evolve, so does the CFPB. Amid the industry’s boom in recent years, the CFPB has taken the stage as the primary regulator of the sector, supervising and creating regulation at pace with innovation. The CFPB remains dialed into consumer abuses and works to uproot long-accepted but malignant practices such as overdraft fees and depositor fees, along with creating new regulations for emerging technologies. 

Much as we are working to create a fairer financial system at Pinwheel, the CFPB is working to do the same, as is further signaled by recent remarks given by Director Chopra. The latest guidelines indicate that the CFPB is pushing for a world where consumers have more control over their data, leading to increased agency and choice over their primary financial institutions. 

What major regulatory changes are coming that will impact banks and fintechs?

Lin: The CFPB is further codifying Section 1033 of the Dodd-Frank Act to promote open finance. A few examples of initiatives we can expect to see this year: 

Increasing consumers’ ownership over their financial data. Income and employment data is arguably the most important part of someone’s financial life, but the amount of regulation around portability, security, and ownership, doesn’t match up to the significance of this type of information. Under new regulation, we expect things like Direct Deposit Switching (DDS) to become the norm. DDS is at the core of open banking. Income starts at the direct deposit, and having more control over that information and the flow of funds is critical for consumers to remove the immense friction that prevents them from quickly setting up or moving their direct deposits. 

Subsequently, as consumers will have more control over their data, we expect an improvement in how we evaluate creditworthiness and underwrite loans. As it stands, income still isn’t a key factor in a traditional credit score. However, a recent study we just conducted found that over 80% of consumers are comfortable sharing their income and payroll data. That’s a pretty clear signal that the general population is aware that it will be advantageous for them to control and share this information to access better financial products. 

After last year’s FTX scandal, it is very apparent that crypto regulations are coming. What do you envision new crypto regulations will look like? 

Lin: Crypto is not my main domain, however, I have a few thoughts:

There’s a lot of talk about things like regulations to require crypto exchanges to have proof of reserves, etc. to create more transparency and trust in the ecosystem.  

While it’s productive to see this dialogue, there is still a lot of work to be done around establishing clear guidance. For example, what are the right standards, how should this be audited, how do you get visibility into what the true liabilities are, etc.  

I don’t expect clear or immediate action, but I expect increased scrutiny of the ecosystem, particularly around centralized exchanges. This increased scrutiny will also include market participants taking an even more active role in building new tools to better monitor behavior on-chain and using those tools to inform future regulations.  

Are there any areas in fintech and/or banking that you see lacking regulation or oversight?

Lin: Speaking broadly about this topic as a whole, it can be extremely slow to enact new policies such as these. In the meantime, we’re excited about helping to cultivate an open banking-like structure by furthering our partnerships with payroll providers. This is something we’re hyper-focused on this year, which will help more broadly unlock consumer-permissioned income data. This has two benefits: it will give consumers more control over their financial info and enable banks and fintechs to use this data to build more robust offerings.

Photo by Leyre Labarga on Unsplash

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finway Raises $10 Million for its Business Financial Management Tool

finway Raises $10 Million for its Business Financial Management Tool
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Funding, Fundings
  • Business financial management (BFM) company finway received $10 million in Series A funding.
  • The investment, which was led by Capital 49, brings the Germany-based company’s total funds to $12.6 million.
  • finway’s BFM tools target the 80% of SMBs in the European Union that have not fully digitized their financial processes.

German fintech finway closed a $10 million (€9.2 million) Series A round this week. The funds bring the company’s total funding to $12.6 million since it was founded in 2019.

Leading today’s investment is early-stage investor Capital 49. New investor Force Over Mass also contributed, as well as existing investors btov Partners and 10x Group.

finway will use today’s funds to advance the development of its business financial management (BFM) platform. The company offers the 23 million SMBs in the European Union a BFM tool that replaces manual tasks with digital workflows. Eighty percent of these SMBs have not digitized their financial processes. finway’s platform– which offers invoicing, accounting, spend, and travel expense management tools all in a single place– seeks to change that.

“We are thrilled by the support of ambitious, successful investors who see the potential of fintech in B2B,” said finway Co-founder and Co-CEO Jennifer Dussileck. “The need for efficient and automated spend management has never been greater, as cost control becomes more of a priority due to ongoing economic challenges. This is the time for finway to continue growing and proceed with our vision of productive, smooth, and hassle-free finance processes in every SMB.”

Over the past five years, the number of SaaS-based BFM tools on the market has grown, and the tools themselves have developed rapidly. The advent of technologies such as cloud computing and machine learning offer businesses access to a wide range of tools to help them manage their finances more effectively. In addition to providing businesses with greater visibility into their finances, these tools also offer real-time insights, allowing organizations to make data-driven decisions quickly. Many, including Brex and Ramp, go a step further by offering businesses corporate credit cards and business bank accounts.

“It’s no secret that technology is reshaping the future of money and banking, and finway is rising to the challenge by building a solution that automates financial processes and increases efficiency for SMBs,” said Airwallex and Capital 49 Co-founder Jack Zhang. “We are so excited to be leading the investment round, and strengthen the ecosystem that is aligned with our vision to reshape the future of financial services for modern businesses.”

Photo by Ketut Subiyanto

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Globalization Partners Taps Wise to Lower the Cost of Global Contractor Payments

Globalization Partners Taps Wise to Lower the Cost of Global Contractor Payments
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, TransferWise, Wise
  • International hiring and employment platform Global Partners (G-P) has tapped cross-border money transfer company Wise for its payment tools.
  • Under the agreement, G-P will embed Wise’s international payment tool in its Contractor platform with an aim to simplify worker disbursements.
  • With Wise, businesses will be able to use their payment method of choice to pay contract workers, while the contractors will be able to select their preferred payout method.

International hiring and employment platform Global Partners (G-P) has turned to cross-border money transfer company Wise to help its business clients to pay some of their workforce.

G-P was founded in 2012 to help businesses quickly hire contract and freelance workers across borders in a compliant manner while solving for legal, tax, and HR issues. Under the partnership, Wise will enable G-P’s business customers to access Wise’s payment solution directly from the G-P Contractor platform. As a result of the integration, G-P will offer their customers more flexible payment options, as well as more transparency into the payments process.

“Together with Wise we are creating a world that is unhindered by traditional financial systems, providing customers and contractors an ethical and transparent employment and payment process for all talent through our Global Employment Platform,” said G-P Chief Product and Strategy Officer Nat Rajesh Natarajan. “At G-P, our mission is to create a borderless and equitable world of work. Delivering flexible payment options is critical to delivering on that mission and meeting the needs of today’s professionals.”

Wise was founded in 2011 under the name TransferWise and has since helped 13 million people and businesses send money across international borders. The company offers a multi-currency account that enables users to hold up to 50 currencies and get account details to receive money in 10 currencies. TransferWise prides itself on its transparency by showing fees up front and charging the mid-market rate for money transfers.

With Wise, G-P Contractor clients will be able to use their payment method of choice. They’ll also benefit from batch payments for invoices in the same or different currencies, and will be able to see payment summaries that show a breakdown of costs. Additionally, contract and freelance workers receiving payment via G-P’s platform will have their choice of payout method, including bank transfer, virtual card, digital wallet, ACH, wire and international wire.

Photo by Markus Spiske

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TransUnion Rebrands Business Solutions

TransUnion Rebrands Business Solutions
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Alumni profile, TransUnion

TransUnion’s business solutions are getting a fresh start this week with a new look. The global information and insights company has rebranded its lines of business solutions in the U.S., organizing them into seven different categories.

“TransUnion’s rebrand clarifies our product offerings and better demonstrates our expertise in both our heritage and new markets, while also making it easier for customers to find what they need,” said company President and CEO Chris Cartwright. “It’s the next logical step in the company’s evolution. We can now offer more powerful consumer insights than ever before, allowing us to meet the needs of our customers in more ways, and at a much deeper level.”

The seven business solutions leverage TransUnion’s “organic investments,” as well as the company’s recent acquisitions of digital identity solutions companies Neustar and Sontiq which TransUnion purchased in 2021 for $3.1 billion and $638 million, respectively. The company has built upon its expertise in consumer identity to expand beyond credit into fraud management, marketing solutions, and communications.

TransUnion’s new business solutions include:

  • TruAudience includes omnichannel audience targeting and advanced analytics to enhance marketing and media performance. The solution includes all TransUnion marketing products, as well as all marketing offerings from Neustar.
  • TruValidate offers fraud prevention and identity proofing products. TruValidate includes all of TransUnion’s fraud products, as well as all fraud offerings from Neustar.
  • TruVision is comprised of risk management products that help balance risk and identify best-fit customers across the account. Among the products in the TruVision line are all TransUnion risk tools, including those formerly known as CreditVision, CreditVision Link, and DriverRisk.
  • TruIQ offers advanced analytics products and services that provide insights into the decision-making process. TruIQ includes offerings formerly known as Prama and Innovation Lab, as well as other custom analytic services.
  • TruEmpower is comprised of consumer engagement products including consumer-facing tools such as those formerly known as CreditView Dashboard, as well as offerings from IdentityForce and Cyberscout.
  • TruLookup offers investigative products that help organizations conduct faster due diligence or issue resolution, and includes TLOxp, TransUnion’s skip tracing, investigative research, and risk management tool.
  • TruContact includes communications and contact center products to help restore trust in communications, enhance customer outreach, and streamline delivery of telecom connectivity services. TruContact includes products from Neustar’s Communications and Contact Center Solutions.

TransUnion’s Chief Global Solutions Officer Tim Martin anticipates that the move to rebrand will both simplify its offerings and allow customers from a range of industries to navigate the products.

Launched as a consumer credit reporting agency in 1968, TransUnion has since pivoted to focus more holistically on data. The company is publicly listed on the New York Stock Exchange under the ticker TRU and has a market capitalization of $12.8 billion.

Photo by Vojtech Okenka

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Mizuho International Taps SymphonyAI to Bolster AML

Mizuho International Taps SymphonyAI to Bolster AML
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Mizuho International selected SymphonyAI’s Sensa to enhance AML detection within its European Capital Markets Division.
  • Sensa’s machine learning models– including changes in behavior, risk similarities, anomaly detection, and hotspot identification– help organizations detect money laundering activity.
  • Sensa operates under SymphonyAI, which acquired the company in 2019.

Mizuho International selected SymphonyAI’s Sensa to bolster its fight against Anti-Money Laundering (AML). Specifically, the London-based securities and investment banking arm of Mizuho Financial Group will use Sensa to enhance AML detection within its European Capital Markets Division.

Sensa leverages advanced machine learning models that include changes in behavior, risk similarities, anomaly detection, and hotspot identification. The company combines these models with its set of scenario rules to help firms detect money laundering risk. With 46 patents and $100 million in research and development, Sensa’s technology won Aite-Novarica Group’s 2021 Fraud & AML Impact Innovation Award and is a top 10 DARPA innovation. The company was founded in 2008 and has since garnered $106 million in funding from the likes of Kleiner Perkins, Khosla Ventures, and others.

“We are thrilled to be deploying industry-leading AML transaction monitoring (TM) capabilities. Our next-gen AML TM strategy sought a more refined rule detection and advanced AI solution to find real AML risk and reduce false positives and analyst review times by holistic scoring. We needed a solution that helps analysts, through user interfaces, to deliver all the information needed to expedite investigations,” said Mizuho EMEA’s Chief Compliance Officer Dinesh Joshi. “SensaAML will make a significant difference in our long-held fight against money laundering. Our financial crime team will be empowered and more effective.”

SymphonyAI, the company behind Sensa, offers AI SaaS solutions for enterprises across a range of verticals, including retail, consumer packaged goods, finance, manufacturing, media, and IT/enterprise service management. Founded in 2017, the California-based company acquired Sensa in 2019 for an undisclosed amount.

The topic of AI– specifically generative AI– has received a lot of attention since Open AI launched its consumer-facing ChatGPT tool late last year. The fraud and financial crime space is prime for AI enhancement, especially generative AI enhancement. As Bain Capital Ventures Partner Sarah Hinkfuss explained in a recent blog post, “Generative AI can produce new training data to train and re-train fraud models. One of the challenges with piracy and fraud has been the cat and mouse game of security providers building to address the latest exploited weakness, only for fraudsters to find the next weakness. Training models on yet-unseen examples of fraud generated by generative AI provides the opportunity to stay one step ahead.”

Photo by Karim MANJRA on Unsplash

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