Courtesy of an integration with ComplyAdvantage, trusted identity as a service innovator Jumio is launching a new, fully-automated AML solution, Jumio Screening. The new solution leverages ComplyAdvantage’s automated watchlist and politically exposed persons (PEPs) screening and monitoring to streamline the compliance process.
Chief Product Officer for Jumio Philipp Pointner highlighted the role of sanctions lists in helping fight financial crime such as money laundering. “This integration equips our clients with market-leading data and best-of-breed digital identity and screening technologies to make the right AML risk decisions with automated customer onboarding and ongoing monitoring,” Pointner said.
ComplyAdvantage’s technology is integrated into the dashboard of Jumio’s Netverify platform, making identity verification, sanctions and adverse media screening available from one location. The screening solution automatically flags new online customers during initial onboarding if their name appears on any of the sanctioned lists, and alerts compliance professionals who can conduct a more detailed review.
Jumio’s technology leverages AI, computer vision technology, machine learning, and live verification experts to verify the authenticity of ID documents and real-world identities, as well as provide authentication, in seconds. The company has verified more than 170 million identities issued by 200+ countries, and its solutions have been deployed in use cases ranging from customer onboarding to high-risk transaction monitoring.
Founded in 2010, Jumio demonstrated its Netverify platform at FinovateAsia last fall. Earlier this month, the company announced the latest stage in its expansion in Latin America: the opening of a sales office in Brazil. Jumio was recognized recently with top honors in the compliance, biometrics, and fraud prevention categories at the 2019 InfoSec Awards, and began the year winning a 2019 Innovation Award from the Business Intelligence Group. The company is headquartered in Palo Alto, California.
A pair of Finovate alums – including a Best of Show winner – are among the nine companies chosen to participate in the incoming group of startups for Plug and Play’s Fintech Europe. Nordigen, which made its Finovate debut at FinovateFall last year, and Sensibill, which won Best of Show in its FinovateFall debut in 2017, will join the fintech accelerator’s 12 week program.
“This batch has a strong focus on AI and Machine Learning,” Program Director Fernando Zornig said, “with startups in their seed stage all the way to Series C.” Also participating in the upcoming class are: Bankify, Digital Shadows, E-bot7, Fino Digital, Labest, Precire, and Spin Analytics.
The nine startups in the incoming cohort, Fintech Europe’s third, were selected from more than 214 applicants. The program will give startups the opportunity to meet and work with Plug and Play’s corporate partners, as well as examine pilot projects and potential business and investment opportunities. “We are very excited with this new class of companies that are bringing a new atmosphere to the corporate ecosystem,” Zornig said. “They will get connected with financial institutions from all over the Euro-Zone and beyond.”
Fintech Europe also announced that its partner base had expanded to nine financial institutions: Deutsche Bank, TechQuartier, BNP Paribas, Nets Group, Aareal Bank, Abanca, Danske Bank, DZ Bank, and Elo.
Nordigen demonstrated its Nordigen Report at FinovateFall 2018. The Report gives banks and lenders more information about applicants with little credit history, and supports verification of any current liabilities or “red flags” like previous debt collection. The solution also gives lenders new predictive features for credit risk modeling. Founded in 2016 and headquartered in Riga, Latvia, the company returned to the Finovate stage earlier this year.
Last month, Nordigen was featured in EU Startups’ article, 10 Latvian startups to look out for in 2019. The company raised $800,000 in new funding last fall.
Sensibill was founded in 2013 and is based in Toronto, Ontario, Canada. The company demonstrated its Insights+ technology, which helps FIs spot revenue opportunities from on- and off-card purchase data, at FinovateFall 2017, earning a Best of Show award. Named to KPMG and H2 Venture’s Fintech 100’s Emerging Stars, Sensibill since then has announced partnerships with NatWest, Quontic Bank, and Royal Bank of Scotland.
As part of the #FinovateLive series, April Rudin, Founder and CEO of The Rudin Group and global wealth marketing strategist, explores the current wealth management space, and why this year the industry looks set to merge closer with fintech, as incumbent players realise they need to embrace technology to meet demands of younger generations.
The old guard wealth management industry and fintech have kept each other at arm’s length for years, claiming the other lacks the tools to meet current client needs. But in 2019, we expect they’ll put past differences aside and finally cozy up to each other.
“Partnerships” will be the buzzword for the new year as incumbent players realize they must embrace tech to meet the demands of their millennial clients, while so-called fintech players realize sometimes clients really do want the intimacy of a face-to-face meeting.
As proof of concept, look no further than Morgan Stanley’s recently announced bid to buy Solium Capital in a $900 million all-cash deal – its biggest acquisition since the financial crisis.
We expect to see more of this in 2019 – whether it’s outright acquisitions of smaller players or strategic partnerships between incumbents and fintech players.
With the $30 trillion generational wealth transfer in its early innings, pure-play robo-advisers are finding that their algorithmic services aren’t enough to win over millennials on the brink of their asset accumulation years. A robo-adviser may be sufficient when a plan is in place, but fintech and artificial intelligence (AI) have yet to replicate the insights gleaned or the comfort level achieved through one-on-one conversations. This is especially true for young families balancing student loan payments, first homes, and education planning for young children.
Even my millennial son told me he was frustrated that robo-advisers kept being pushed on him when he really wanted a human adviser to help him navigate through the world of investments.
But it’s not just the robo-advisers that gain from partnering with incumbents. Traditional wealth managers also benefit by having their services buttressed by fintech players. It’s no longer an all-or-nothing dance between the two: Incumbents can leverage in-house technology to spend more time forging meaningful client relationships. What we’re seeing in 2019 is that an industry once known for its left-brained quantitative skills can now work the right side of its brain – all thanks to technology, ironically.
Clients will soon be benefiting from hybrid advice. While algorithms can quickly churn out portfolio options that advisers previously spent days crafting, advisers today can use the time saved to think more critically about their recommendations. Rather than prescribing financial advice, they can embrace a more holistic approach to determine what their clients want and how they feel about their portfolio and wealth.
But the expected partnerships in the wealth management industry don’t just apply to adviser-client dynamics. Total investable assets in North America are expected to grow by nearly 10%, to $28.8 trillion by 2021, according to a 2018 Ernst & Young study. And that wealth is not just concentrated in a mix of stocks and bonds. The era’s low interest rates have compelled households to allocate some of their wealth to alternative asset classes. For this reason, advisers need to know how to manage and analyze diverse holdings.
And as the wealth management industry continues to grow – both in terms of assets and clients from the wealth transfer – it will need to attract a young, engaged workforce to meet increasing and evolving demands. Analog solutions won’t cut it in a digitized world, especially when it comes to luring talent away from Silicon Valley. While many firms previously relied on a patchwork of legacy systems to conduct business, today’s younger workforce wants clean, reliable interfaces to complete their work.
We expect to see increased intergenerational team partnerships in the wealth management industry. After all, the “average” adviser is 55 – and perhaps thinking of their own retirement. We anticipate they will be leaning on their younger staffs and calling on their expertise. While advisers may have the years of experience, younger employees – and digital natives – will know new ways of reaching existing clients and prospects.
The room for partnerships in 2019 extends throughout the wealth management pipeline. From mergers between incumbent and fintech players to generationally diverse teams amid the wealth transfer, it’s clear we’re moving from conversation to commitment.
Urban FT Group, a fintech provider, is launching Community Access, an agent bank program that delivers financial tools on mobile banking for community banks’ consumer and commercial customers, reports Henry Vilar of Fintech Futures (Finovate’s sister publication).
Richard Steggall, Urban FT CEO, said: “With Community Access, community banks can truly compete with the bigger, national banks by offering a product that serves their entire communities with tools, features and support. This program doesn’t just empower the underdogs, it puts them on an entirely new path when it comes to reach and the ability to serve new demographics.”
The official launch of Community Access is taking place at ICBA Live in Nashville in cooperation with ICBA Bancard, the payment services subsidiary of the Independent Community Bankers of America, and Mastercard.
Heather Schumacher, newly appointed Urban FT COO, will oversee the deployment and support of this program as it reaches “untapped demographics”. Schumacher is the former COO of Sunrise Banks and comes comes to Urban FT with over 11 years of experience in card issuing, platform operations and program delivery.
The program features a managed card service for community banks that includes program setup and compliance, card issuance and fulfillment, instant account opening and cardholder support.
ICBA member banks can take advantage of special pricing and incentives provided by Urban FT and Mastercard. Additionally, ICBA members will have access to Urban FT’s full suite of digital banking and digital payment services, such as consumer and commercial RDC.
Urban FT demonstrated the Workshop, a real time, multi-tier mobile app management platform, at FinovateFall 2016. The company was founded in 2013 and is headquartered in New York City.
As part of the #FinovateLive Digital Week, we bring you exclusive interviews with the leading minds in fintech. Hosted by David Penn, Finovate Analyst, and William Mills, these interviews cover a range of topics, from why it’s riskier to not take risks when it comes to retail banking, to whether or not robots are going to need passports in the future (hint: they will!), to what trends these experts are keeping a close eye on this year.
Brett King, CEO and Founder of Moven, on what the most disruptive technologies in history all have in common
Community Access from Urban FTBrings Digital Tools to Small Banks.
Around the web
PayPalteams up with JP Morgan Chase to offer instant transfer option.
Coinbase’sCustody service completes its first over-the-counter trade directly from offline storage.
HackerOne announces detecting vulnerabilities in up to 43 digital asset projects.
Ping Identitywins the DeveloperWeek 2019 Devies Award and the Info Security Global Excellence Award.
The Paypers interviewsModo CEO and founder Bruce Parker.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Welcome to FinovateLive! Tune in between 19 – 21 March to delve deeper into the biggest issues impacting the finance sector.
FinovateLive! will feature expert discussions via a series of interactive webinars, live Q&As, whitepapers and articles to shed light on the areas most ripe for innovation. The program will also highlight the technologies that have the potential to transform the entire banking, payments, insurance and investment industries.
Catch the future of fintech in real-time from the comfort of your desk with our exciting agenda built around business challenges and innovative solutions. Register here >>
Agenda
Tuesday 19 March
Hear from Jeremy Balkin, as he showcases how doing things differently adds value and truly transforms business. We also put forward the question: “Is innovation essential in banking?” and look to get Jeremy’s take on how to create touch points and deepen long term personalized human relationships in a highly technology driven environment.
Featuring: Jeremy Balkin, Head of Innovation, HSBC
Wednesday 20 March
In this webinar, Clara takes a practical approach to developing an AI strategy. She discusses why designing a long term AI strategy is essential, and why patchwork innovation with AI is not going to pay off. The discussion will draw from Clara’s direct experience working with decision makers, as well research lifted from her upcoming book on how AI is transforming financial services.
Featuring: Clara Durodié, Executive Chair, Cognitive Finance Group
Banks are in trouble. Every modern bank dependent on branch revenue is in virtual survival mode, hoping for a miraculous reversal of emerging customer behavior. Brett King, discusses the future of banking and fintech, finally deciding which banks will make it, and which won’t.
In this webinar we’ll focus on the findings of the just released 2019 Retail Banking Trends and Predictions research, published by the Digital Banking Report. The report is now in it’s 8th year and combines insights from a crowdsourced panel of more than 80 industry leaders and a quantitative survey of more than 300 financial services organisations worldwide.
Featuring: Jim Marous, Co-publisher, The Financial Brand
In the last webinar of #FinovateLive, we speak with JP Nicols, Managing Director at FinTech Forge about the fintech revolution, why banking hasn’t yet been ousted by apps and wearables, and what has been seperating the winners and the losers in fintech.
Webinars have been editorially curated by Adela Knox, Editor in Chief, Finovate Digital Week.
More than just webinars
During FinovateLive, we’ll also be bringing you expert insights and exclusive interviews.
The decisions your bank makes today could have major implications on how you stay competitive—for years to come. Developing one app or digitizing a process might appear to suffice, but that is just the tip of the iceberg. It’s time to align your bank’s digital transformation strategy with the entire customer lifecycle by providing a personalized omnichannel experience. The result? Your bank improves customer satisfaction, increases customer retention rates, and drives overall customer profitability.
OutSystems enables a genuine end-to-end digital transformation. With our versatile and flexible low-code platform, you can leave behind an organization based on product lines and build experiences that focus on the customer and give you a competitive edge.
Don’t miss our eye-opening interviews and thought-leadership from prominent women in the fintech landscape. Featuring April Rudin, Founder & CEO of The Rudin Group and Mary Wisneiwski, Consumer Banking and Fintech Reporter at Bankrate, we discuss the trends impacting the fintech landscape and hone in on what the industry can be doing better to attract, retain and advance female talent.
Banking technology giant FIS is acquiring payments firm Worldpay via a cash and stock combination – bringing Worldpay’s enterprise value to approximately $43 billion (including the assumption of Worldpay debt, which FIS expects to refinance), reports Henry Vilar of Fintech Futures (Finovate’s sister publication).
According to Bloomberg, FIS is spending $34 billion on this purchase.
“Scale matters in our rapidly changing industry,” said Gary Norcross, chairman, president and CEO, FIS. “Upon closing later this year, our two powerhouse organisations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions.”
“At Worldpay, our focus has always been on delivering more value to our clients and partners and making decisions that achieve our growth and performance objectives,” said Charles Drucker, executive chairman and chief executive officer, Worldpay.
Organic revenue growth outlook has grown from 6% to 9% through 2021 for FIS, in conjunction with $700 million of total EBITDA synergies from the combination of revenue and expense opportunities over the next three years.
This acquisition comes hot on the heels of another massive deal in the payments space: Fiserv, another US heavyweight and direct rival of FIS, buying First Data.
The combined company of Worldpay and FIS will have pro forma 2018 annual revenue and adjusted EBITDA of approximately $12.3 billion and $4.9 billion, respectively.
Upon closing, the combined company’s Board of Directors will consist of 12 members, seven of which will come from FIS’ board of directors and five of which will come from Worldpay’s.
Gary Norcross will remain as FIS chairman of the board, president and chief executive officer. Charles Drucker, Worldpay’s current executive chairman and CEO, will serve as the executive vice-chairman of the board.
The transaction is subject to receipt of required regulatory and shareholder approvals and other customary closing conditions and is expected to close in the second half of 2019.
FIS demonstrated its Cardless Cash solution at FinovateFall 2016. Cardless Cash provides consumers with faster, more secure options when it comes to sending and accessing cash via ATMs, including the ability to pre-order funds from their mobile banking app.
Founded in 1958 and headquartered in Jacksonville, Florida, FIS trades on the New York Stock Exchange under the ticker “FIS.” The company has a market capitalization of $35 billion.
Worldpay participated in our developers conference, FinDEVrSiliconValley 2015. The company’s Head of Strategic Partnerships discussed how businesses can add secure payments to any website, app, or mobile device via the Worldpay Securenet API.
Worldpay was founded in 1971 (as Midwest Payment Systems) and is headquartered in Cincinnati, Ohio. With a market capitalization of $33 billion, Worldpay trades on the NYSE under the ticker “WP.”
IBM has unveiled a global blockchain network, Blockchain World Wire, that will offer near real-time cross-border payment exchange and international settlement. Blockchain World Wire can transfer funds in 47 currencies to locations in 72 countries, and the company is calling it the first blockchain network of its kind to integrate payment messaging, clearing and settlement in a single unified network.
“We’ve created a new type of payment network designed to accelerate remittances and transform cross-border payments to facilitate the movement of money in countries that need it most,” General Manager of IBM Blockchain Marie Wieck said. “By creating a network where financial institutions support multiple digital assets, we expect to spur innovation and improve financial inclusion worldwide.”
Blockchain World Wire leverages the Stellar protocol to support point-to-point money transfers, cutting out the intermediaries of conventional correspondent banking. World Wire also shortens settlement time by transmitting value via digital assets (i.e., cryptocurrencies or stable coins).
The network currently supports settlement with Stellar Lumens and a U.S. dollar-based stable coin. Six global banks have signed letters of intent to issue their own stable coins on the network, which will add the Euro, the Indonesian Rupiah, the Philippine Peso, the Korean Won, and the Brazilian Real to the mix.
Rizal Commercial Banking Corporation (RCBC) of the Philippines and Banco Bradesco of Brazil are among the banks that have announced their participation in IBM’s new initiative. Representatives from both institutions highlighted “innovation” and the need to “enhance” or “add value” to the customer experience as key factors in the decision to join the network. Also believed to have signed a letter of intent is South Korea’s Banco Busan.
IBM participated in our developers conference, FinDEVrNewYork 2017, discussing the IBM Cloud for Financial Services. The company’s security division, IBM Trusteer, demonstrated its latest technology to fight new account fraud at FinovateEurope earlier this year. A leader in open source blockchain technology solutions for the enterprise, IBM has a market capitalization of $124 billion, and trades on the New York Stock Exchange under the ticker “IBM.”
Finovate Global is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.
Latin America and the Caribbean
PayPalinvests $750 million in Argentina-based e-commerce company MercadoLibre.
First Data to acquire Brazilian electronic funds transfer (EFT) solution provider Software Express.
NCR, Bluefin, and Powertranz team up to support POS card processing for Caribbean quick serve restaurants.
BlueRushdeploys its Individeo platform with a large Colombian bank courtesy of a partnership with Bee Concept.
The Wall Street Journal looks at how global FIs are gaining interest in the Latin American alternative lending market.
Asia-Pacific
Experianlaunches Singapore-based incubator, Experian X Labs.
South Korean crypto company Kakao raises $90 million via private coin offering.
Thai Stock Exchange to launch a digital asset exchange next year.
Sub-Saharan Africa
Front office and core banking technology from Temenos to drive digital revamp for African challenger bank, Vista Bank.
Financial Software and Systems takes 46% stake in South Africa’s Ecentric Payment Systems.
South Africa’s second largest retail bank, Capitec, extends its partnership with ACI Worldwide.
ThreatMetrixteams up with Blue Turtle Technologies to help market its fraud prevention solution to customers in Africa.
Central and Eastern Europe
Tinkoff Bankreports 2018 highlights including launch of new mortgage app, a joint P2P money transfer offering with Sberbank, and more than 2.7 million new active credit customers.
iSignthisInks Banking and Payments Deal with Ibanera.
Bulgaria-based Software Group scores €18 million loan from Europe Investment Bank.
EU Startups features lending platform Inlock its look at 10 Hungarian startups to look out for in 2019.
Bulgaria’s Municipal Bank to deploy new core and payments solutions from Oracle.
Middle East and Northern Africa
Dubai International Financial Center (DIFC) launches $10 million fund for fintech startups in the MENA region.
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