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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Online insurance marketplace CoverHoundannounced today it has been picked up by insurance brokerage firm Brown & Brown in an acquisition deal this week. Terms of the arrangement, which also includes CoverHound subsidiary CyberPolicy, were not disclosed.
With 300 locations, Brown & Brown is the sixth largest insurance brokerage firm in the nation. The company has an 80 year history in the insurance industry and has since acquired more than 500 insurance agencies.
Today’s acquisition will help Brown & Brown tap into CoverHound’s and CyberPolicy’s digital reach into the insurance market for individuals and small businesses. The digital market has been growing quickly since the onset of the global pandemic. The deal will combine Brown & Brown’s strong carrier relationships and product knowledge with CoverHound and CyberPolicy’s partnership network and customer experience.
“We see CoverHound as an important platform for Brown & Brown’s expansion into the digital insurance marketplace while at the same time helping our traditional businesses to continually deliver an exceptional customer experience,” said Brown & Brown Senior Vice President of Technology, Innovation, and Digital Strategy Steve Boyd. “By combining CoverHound with our expertise and market strength, we will be able to meet more customers where they are and provide them with the appropriate coverage for their unique exposures.”
Brown & Brown will allow CoverHound and CyberPolicy to continue to operate independently under the Brown & Brown brand. The two tech firms will focus on scaling digital partnerships.
San Francisco-based CoverHound was founded in 2010 and has since raised $111 million. The company brings transparency to the insurance shopping process, offering a marketplace where shoppers can compare and purchase both personal and business insurance products.
The following is a sponsored post from InterSystems, Gold Sponsors of FinovateWest Digital, November 23 through 25, 2020.
In an increasingly digital world filled with chatbots, tap-and-go payments, and “buy now, pay later” credit lines, hyper-personalization is the new frontier on top of a new frontier in financial services.
What is hyper-personalization?
Hyper-personalization enables financial services organizations to leverage the huge volumes of customer data they have in their systems efficiently and effectively to make more specific and more relevant product recommendations, such as an increase of a credit limit at the point of sale, or a list of previous interactions pushed to the chatbot, allowing it to pick up where it last left off. It does so by analyzing the data available to it through the power of analytics, artificial intelligence (AI), and machine learning.
It offers immense growth opportunities for all financial services providers if they can cater to small and specific groups. Hyper-personalization can foster loyalty in an era in which loyalty has declined, and it pushes the next generation of consumers and investors towards those financial services which can be agile in what they offer.
Traditional firms and hyper-personalization
Traditional firms are often encumbered by processes built up over decades. These processes are ingrained and necessary for them to have operated the way they have successfully and for so long.
To these firms, those same processes hinder the uptake of advances such as AI, data analytics and machine learning.
Yet these and other new technologies do not require traditional firms to re-imagine how processes work, nor does implementing have to be as obtrusive and disruptive as a full digital transformation initiative, for example. Rather, technology can be implemented in the background and effectively manage itself, be installed quickly and efficiently in existing systems without disrupting the rest of the business. Some can even run adjacently to everything else the business does.
Traditional firms have decades or more worth of data. Analytics tools, AI, and machine learning work together to make sense of it all, wherever it might be and in whatever language it might be in, and surface actionable insights from all of it. Importantly, these technologies work in the background, without disrupting any mission-critical processes.
How can traditional firms hyper-personalize?
Traditional firms can deploy a smartdata fabric, which is effectively a layer which sits above all of the firm’s available endpoints and distributed services — whether it be in the cloud, on-premise or both — and ensures those endpoints and their capabilities speak the same language.
Next, the data needs to be put through proper governance procedures to ensure it is clean, relevant and has the necessary integrity to be used with confidence for the right reasons by the organization — it needs to be accurate, reliable, complete, appropriate, and credible. For this to occur, it goes through something of a digital centrifuge which analyses its health and cleans it before having it ready for primetime.
Once this is done, the rich streams of data inherent across the company can be mined, analyzed, and surfaced using the power of AI and machine learning.
This may sound like a lot of steps and go against the grain of what we’ve been discussing in this article. But rest assured, all of these technologies can be implemented with little to no disruption to operations, and they work in the background while delivering key insights for the data almost in real-time. It’s through using these technologies that traditional firms can, at last, unlock those rich and extensive streams of historical data dating back decades, which in turn provides a clear method to fostering loyalty. Research shows that customers want a hyper-personalized experience. According to Accenture, 91 percent of consumers are more likely to shop with brands who recognize them, remember them, and provide them with relevant offers and recommendations.
Conclusion
Traditional firms have a hyper-personalization advantage thanks to possessing a trove of legacy data and brand recognition. They just need to embrace what is available to help leverage their data and analytics to get them to their intelligent future — and trust that it can and will co-exist with existing processes.
If they allow technology to do the heavy lifting for them alongside their existing processes, traditional firms will be able to leverage decades of data to their advantage and engage in new ways with customers, without having to re-invent the wheel.
Cloud-based point of sale solution ShopKeep is taking an exit after 12 years in the business. Lightspeed, a competitor in the cloud-based POS space, has acquired ShopKeep for $440 million.
Lightspeed anticipates the buy will help position it as a leader for complex retailers and restaurateurs seeking to modernize their operations. The deal will also give Lightspeed increased market share. The company will serve over 100,000 customer locations worldwide, generating approximately $33 billion in gross transaction volume.
For its part, Shopkeep will benefit by offering clients access to Lightspeed’s analytics, loyalty, ecommerce, and payments modules. Shopkeep clients will also be able to tap Lightspeed’s multi-location solution.
“ShopKeep’s commitment to enabling independent businesses to dream big and rise above industry and economic challenges is deeply aligned with our own mission to power the future of commerce,” said Lightspeed Founder and CEO Dax Dasilva. “This acquisition will bring ShopKeep merchants, small and medium-sized businesses that make up the backbone of the U.S economy, into the Lightspeed family, providing them even more crucial product innovation and world-class support as they drive the reinvention of American commerce.”
The deal is subject to customary closing conditions and is expected to close by the end of this year.
ShopKeep helps more than 20,000 clients across the U.S. accept a range of payment types and enhance their business with features such as automatic inventory tracking, employee management, and real time sales reporting. Since it was founded in 2008, the company had raised $137 million in funding.
A look at the companies demoing at FinovateSpring Digital on May 10 through 13, 2021. Register today and save your spot.
DeepTarget‘s 3DStoryteller will create a radically new marketing experience inside your current digital banking platform.
Features
Rich, relevant content delivery
Rapid deployment in weeks
Deep consumer engagement to drive conversions
Why it’s great Revolutionize your digital marketing experience in weeks, driving dramatically higher sales.
Presenters
Jill Homan, President Homan uses her deep experience in technology, digital marketing, and leadership to drive success for DeepTarget and their customers. LinkedIn
Jacob Shaefer, Implementation & Support Engineer Shaefer speeds implementations for DeepTarget customers and ensures their success. LinkedIn
A look at the companies demoing at FinovateSpring Digital on May 10 through 13, 2021. Register today and save your spot.
txtsmarter will introduce an effective compliance solution specifically designed for the new age of text and social media messaging. The company archives iMessage, Android SMS/MMS, and WhatsApp messages in accordance with FINRA, SEC, FDIC, MiFID II, Dodd-Frank, & FCA regulations.
Why it’s great txtsmarter creates a better user experience for employees and clients by allowing the use of native apps such as iMessage and WhatsApp, while creating data completeness and a high level of control.
Presenter
Nuri Otus, CEO & Founder Otus has 20+ years of experience in strategic planning, sales, services, marketing, business and organizational development, product leadership, operations, and market-making in early stage companies. LinkedIn
A look at the companies demoing at FinovateSpring Digital on May 10 through 13, 2021. Register today and save your spot.
Breach Clarity identifies and diagnoses every consumer’s unique breach history to prescribe personalized protective actions that improve the financial health of both the financial provider and consumer.
Features
Higher levels of digital engagement
Lower fraud costs and attrition
Reduced contact center costs
Why it’s great Breach Clarity’s technology is based on the process used in the largest data breach cases (Anthem, Equifax, Yahoo!, etc.) to establish the harms created for affected consumers.
Presenters
Al Pascual, COO & Co-founder Pascual is the COO and co-founder of Breach Clarity. He formerly led Javelin Strategy & Research and is a recognized expert on identity theft and fraud. LinkedIn
Jim Van Dyke, CEO & Founder Van Dyke is the CEO and inventor of Breach Clarity. He previously founded Javelin Strategy & Research and has a deep fintech product management background. LinkedIn
A look at the companies demoing at FinovateSpring Digital on May 10 through 13, 2021. Register today and save your spot.
WealthConductor’s flagship platform, IncomeConductor, is an intuitive software and strategy that allows advisors and clients to truly collaborate to achieve a successful retirement performance.
Features
Dynamic visual income plan editor
Data aggregation to link client assets into their plan
Daily tracking analytics and insights to manage retirement income plans in a scalable way
Why it’s great Advisors and their firms are bringing in millions in new AUM due to IncomeConductor’s unique and compelling approach to retirement income plan design, presentation, and management.
Presenter
Sheryl O’Connor, CEO O’Connor has spent over 25 years in the financial services industry at insurance and investment management firms, leading strategic business growth and technology innovation. LinkedIn
A look at the companies demoing at FinovateSpring Digital on May 10 through 13, 2021. Register today and save your spot.
JUDI.AI provides SMB lenders with an AI driven analytics platform to support loan origination with instant cash flow analysis, automated underwriting, and continuous financial monitoring.
Features
Increased operational efficiencies
Improved customer experience
Reduced risk
Why it’s great The JUDI AI-drive platform provides instant cash flow analytics of bank statements to glean insights of the financial health of small businesses.
Presenter
Su Ning Strube, Chief Product Officer Strube is a digital strategist who has spent 20 years at the intersection between technology and business, having held various senior management roles driving innovation in growth stage companies. LinkedIn
A look at the companies demoing at FinovateSpring Digital on May 10 through 13, 2021. Register today and save your spot.
Loyalty Group‘s GoPoints is a provider of a new format of B2B2C loyalty and reward solutions and white-label consumer products for financial institutions, merchants, and their customers.
Features
Allows consumers to easily tailor financial products to their needs and preferences
Increases engagement
Increases transactional activity
Why it’s great GoPoints makes financial products adjustable to consumer needs and expectations through choice of partners, reward programs and schemes, and flexible product settings capabilities.
Presenter
Tarek Al-Oveyd, CEO Al-Oveyd is the founder with 15 years of experience in designing, launching, and managing frequent flyer and loyalty programs for the largest Russian airlines and retailers. LinkedIn
A look at the companies demoing at FinovateSpring Digital on May 10 through 13, 2021. Register today and save your spot.
With Q2 dynamic personalization, your institution can quickly and easily tailor your user’s experiences based on the intersection between known data points and your institution’s objectives.
Features
Dynamically composed experiences
Fluid audience grouping
Targeted UI presentation
Why it’s great Digital is today, personalization is tomorrow. Through dynamic personalization you can improve your relationship with accountholders and understand their needs.
Presenters
Adam Blue, CTO As CTO, Blue is responsible for creating and coordinating the company’s technology strategy, while supporting the teams at Q2 responsible for customer satisfaction and technology innovation. LinkedIn
H.O. Maycotte, CEO, Molecula Maycotte is the CEO of Molecula, an enterprise future store that centralizes data for machine-scale analytics and AI. LinkedIn
A look at the companies demoing at FinovateSpring Digital on May 10 through 13, 2021. Register today and save your spot.
VRAY‘s recurring payment solution leveraging the EMVCo tokenization standard that will provide merchants the dual benefit of increasing conversion and decreasing fraud cost (including chargebacks).
Features
No need for subscribers to provide card information
No need for subscribers to create an account (no password needed)
Subscribers authorize payment via biometrics at each recurring event
Why it’s great VRAY’s solution has the dual benefit of increasing conversion and decreasing fraud cost (including chargebacks).
Presenter
Jack Shauh, CEO & Co-Founder Shauh has an extensive background in wireless communication and mobile security. He had worked for Qualcomm for over 20 years prior to founding VRAY. Shauh has over 30 granted US patents. LinkedIn
Apple launched its newest iPhone, iPhone 12, earlier this month. While many of the new features were expected, such as 5G and a refreshed design, there was one aspect on the iPhone 12 Pro that caught my eye– LiDAR.
LiDAR stands for light detection and ranging and has been around since 1961. So while the technology in and of itself isn’t new, many of the applications it’s used for are cutting edge. Take self-driving cars, for example. Self-driving cars rely on LiDAR to map the surrounding area by measuring distances of nearby objects using light rays.
So with such a powerful technology now placed into the hands of everyday consumers, how can fintechs put their developers to work to leverage the technology? Here are a handful of applications the fintech sector might be able to use iPhone 12 Pro’s LiDAR for.
Mortgagetech
With COVID keeping us socially distant, many lenders are waiving home appraisals for real estate transactions. While this may benefit the homeowner by saving them $500 or more on the appraisal, the lender, which must rely on third party data from Zillow or Trulia, may be at a disadvantage when it comes to estimating collateral values.
The LiDAR on the iPhone 12 Pro may be able to bridge the gap with its room-mapping technology. Combined with AI and machine learning technologies, computers may be able to estimate a home value more efficiently based on a home’s 3D mock-up created by LiDAR.
San Francisco-based Cape Analytics already offers a service like this. The company provides intelligence on the risk of a property for remote buyers and lenders. However, the service is limited to property exteriors.
Insurtech
When it comes to underwriting home insurance policies, the process relies heavily on input from the homeowner. This honor system offers plenty of room for error. Not only may the homeowner incorrectly enter the square footage, they also may not know the difference between flooring types and other important details.
Once again, this is an opportunity for iPhone 12 Pro’s LiDAR room-scanning capabilities. The map may not only help insurers underwrite the home itself, but may also be able to help renters determine the appropriate amount of insurance on their belongings.
Canvas app by Occipital already offers this technology for LiDAR-enabled iPads (11-inch iPad Pro 2nd Generation and 12.9-inch iPad Pro 4th Generation). The company plans to launch room-scanning for iPhone 12 Pro soon.
Security
Using facial recognition for authentication is so commonplace these days that most consumers– even those of older generations– are familiar with how it works. Unfortunately, some consumers who have tried to use facial recognition to log into their account may also be familiar with the technology’s shortcomings. For example, I was originally excited to enroll in my bank’s facial recognition login process when it came out a few years ago, but became frustrated when the technology stopped recognizing my face just weeks later.
With the LiDAR in iPhone 12 Pro promising enhanced photos, false negative issues like this could be less common. This is especially true in low-light photos, where the LiDAR captures more detail. Per Apple’s website, “Night mode comes to both the wide and ultra wide cameras, and it’s better than ever at capturing incredible low-light shots. LiDAR makes night mode portraits possible. And the wide camera lets in 27 percent more light, for greater detail and sharper focus day or night.”
The enhanced facial detail in selfie photos can not only reduce consumer frustration with false negatives, but also has the potential to augment security by reducing false positives, as well.
Across sectors
One of the most versatile capabilities the addition of LiDAR brings is upgraded augmented reality (AR). LiDAR technology allows for better object occlusion, meaning that virtual objects can now appear more real by disappearing behind real objects.
While versatile, however, AR brings little value to banks and fintechs beyond entertainment and novelty. The best use cases for AR seem to be for gaming and interior design. While the fintech sector showed a bit of hype around AR and mixed reality in 2015, there still hasn’t been much value-added development in the area.
However, augmented reality is still worth keeping on the fintech radar. This is especially true as social distancing measures remain in place and people try to find entertainment online and in the virtual realm.
