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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
nCinoannounces expansion to Canada, opens doors on new Toronto, Ontario office.
Avaloqacquires structured products and derivatives data provider Derivative Partners.
Singapore’s Fintech News featuresaixigo, Nutmeg, and nextmarkets in its look at top European wealthtech solutions “that Singaporean banks should know.”
Anorakteams up with protection and mortgage advice company Albany Park.
NDGITannounces new strategic customer in Portuguese challenger bank, Banco BNI Europa.
The ID Co. joins North American division of the Financial Data & Technology Association (FDATA).
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.
Just one day shy of Canada day, Visa and PayPalinked a deal to enable Canadian consumers to instantly access funds via Instant Transfer, a tool PayPal launched in the U.S. earlier this year.
While the U.S. service is powered via a partnership with JPMorgan Chase, PayPal’s Instant Transfer in Canada is powered by Visa’s push payments system, Visa Direct. The Canadian rollout of the new tool uses Visa debit card rails to move money from a customer’s PayPal account to their bank account in real time.
President of PayPal Canada Paul Parisi said that the company is focused on creating efficiencies for customers. “Instant Transfer is just one more way we are giving control and flexibility to our customers, allowing them to send and spend their money on their own terms,” he added.
The launch of Instant Transfer is expected to offer gig economy workers faster access to their earnings, which often are paid via PayPal or Venmo. The tool will also help PayPal compete with Zelle, a bank-owned P2P money transfer tool (and PayPal competitor) which relies on ACH to move funds, a process which often takes three days to complete.
PayPal charges the same for its Instant Transfer service as it does for its debit card transfer. Users pay one percent of the transaction up to $10.
PayPal was founded in 1998 and has a market capitalization of $138 billion. The company showcased its Instant Account Creation feature at FinovateFall 2012.
Visa demoed at FinovateSpring 2010 and also showcased at our developers conference in 2014. The company has 39 APIs that offer developers tools for commercial payments, data and analytics, identity an security, offers and benefits, payments, and more.
Biometric solutions company Daon is leveraging its partnership with North African technology company GEMADEC to help create a life certificate digitalization solution for the Moroccan Interprofessional Pension Fund’s (CIMR’s) mobile app.
Leveraging Daon’s IdentityX platform the mobile app, CIMR DIALCOM, provides CIMR with the client’s proof of life. The app prompts the user to take a dynamic selfie that certifies not only identity but also liveness by having the user complete a series of “life challenges” such as eye blinks and head movements.
To complete authentication, the app compares the selfie with a picture on the user’s photo ID. After the user is authenticated and is confirmed living, the app authorizes their pension payment.
Daon most recently presented its authentication technology at FinovateFall 2016. The company offers verification technology that uses a range of biometrics, including fingerprint, face, voice, iris, keystroke, palm, or a combination. Founded in 2002, Daon is headquartered in Reston, Virginia. Tom Grissen is CEO.
Astana International Financial Centre (AIFC) and Fidor Solutions have signed a memorandum of understanding (MoU) to drive fintech innovation in Kazakhstan and economic development in Central Asia, reports Jane Connolly of Fintech Futures, Finovate’s sister publication.
As a result of the MoU, the two organizations plan to foster fintech collaboration by developing initiatives to support a cashless economy in Kazakhstan and provide joint fintech education programs with key regional universities.
The understanding also includes support in developing the AIFC fintech marketplace and providing mentorship and partnership for accelerator programs.
Created by President Nursultan Nazarbayev in 2015, the AIFC drives innovative financial and technology initiatives with accelerator and incubator programs. It also attracts partnerships and investments from fintechs and venture capital firms.
Dubai-based Fidor Solutions – sister company to Fidor Bank – offers technology and advisory services to financial institutions with a focus on open digital banking.
“AIFC has great ambitions for its fintech innovation programme that go beyond borders,” said Kairat Kelimbetov, governor of AIFC. “We are proud to be growing our fintech network by signing an MoU with Fidor, a European fintech that has successfully developed internationally. Their contribution will be valuable to all our members and partners.”
“Fidor share similar core values to AIFC, such as openness and knowledge sharing,” added Gé Drossaert, board member and group CCO of Fidor. “The collaboration between our organizations will pave the way for fintech success in the region with a direct impact on the digital economy and financial access.”
The MoU was signed during the launch of the Fintech Summit of the Astana Finance Days in Nur-Sultan.
Fidor Solutions provides digital solutions for Fidor Bank, which demoed at FinovateEurope 2011. In 2016, the challenger bank was acquired by France’s Groupe BPCE for $158 million. Last year, however, Fidor requested a split from the 200-year-old bank and earlier this year the company’s founder and CEO, Matthias Kröner, stepped down citing “different views on future strategy.”
Apex Clearingpartners with Apex Crypto to launch cryptocurrency platform that helps financial advisors introduce digital currency trading into their clients’ portfolios.
Revoluttaps banking veteran Richard Davies as Chief Operating Officer.
Klarna and BigCommerce expand partnership to also include Klarna’s European core markets.
eToro’s cryptocurrency wallet adds support for 120 ERC-20 standard tokens.
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.
As seems to be the trend this year, D3 Banking Technology has found itself a buyer–and it’s a big one. The digital banking services company announced this week it has been acquired by ATM giant NCR for an undisclosed amount.
Georgia-based NCR, which owns 27% of the global ATM market, anticipates that adding D3’s digital banking expertise will help it move its own digital banking services into new markets. Most notably, NCR plans to expand from cloud-based tools for community financial institutions into on-premise solutions for large banks.
“D3 has a well-earned reputation for innovation and product excellence and delivers one of the most advanced digital platforms for large banks,” said Michael D. Hayford, president and CEO of NCR. “NCR’s Digital First Banking solutions help financial institutions connect with consumers whenever, wherever, and this acquisition helps NCR provide banks of all sizes with an exceptional digital experience.”
D3 CEO Mark Vipond called NCR “a great fit” for D3 and said that the timing of the deal is right. “This transaction enables us to capitalize on new market opportunities and bring top-tier capabilities to our mutual and future clients,” he added.
For NCR, the purchase comes at an interesting time. The $3.7 billion company put itself up for sale in May of this year. And, according to the New York post, two firms have bid on NCR but have recently left the negotiating table. A deal has yet to be finalized.
Since it was founded in 1997, D3 Banking has raised $35 million. The Nebraska-based company debuted its small business banking capabilities at FinovateFall 2015.
NCR, which is traded on the New York Stock Exchange under the ticker symbol “NCR,” has roots dating back to 1884, when the company was founded as the National Cash Register Company. NCR most recently demoed its VR collaboration for ATMs at FinovateSpring 2017.
To help support its rapid growth, online SME lender Kabbage has closed a $200 million revolving credit facility. The financing comes courtesy of an unnamed subsidiary of a life insurance firm, and was managed and administered by 20 Gates Management and Atalaya Capital Management. The funding adds to the $700 million securitization Kabbage announced earlier this year, and marks the longest period of committed debt funding for the company.
“This transaction further diversifies Kabbage’s committed sources of funding and prepares us to meet the escalating demand for capital access among small businesses,” Kabbage Head of Capital Markets Deepesh Jain said. He called 2019 a “tide-shifting year,” citing the more than $670 million customers accessed via Kabbage in the second quarter.
Kabbage provides SMEs with a line of credit of up to $250,000 with six-, 12-, and 18-month term options available. Businesses can apply for funding online via Kabbage’s mobile app and get a decision in as little as ten minutes. Since it was founded in 2009, the company has provided more than 185,000 U.S. small businesses access to more than $7 billion in capital.
Atlanta, Georgia-based Kabbage demonstrated its Kabbage Card at FinovateSpring 2015. The card enables small business owners to take their Kabbage line of credit with them to make purchases for inventory or supplies wherever they are. The company is also a veteran of our developers conference, presenting its automated lending platform at FinDEVr Silicon Valley 2015.
Featured last month in CEO World’s look at companies that are fighting for fair lending, Kabbage teamed up with online banking platform Azlo in May to launch a new financing program for SMEs called Mission Street Capital. Also in May, the company announced a partnership with the Building Trades Employers’ Association to help provide funding to female and minority-owned business contractors.
Data connectivity expert Ninth Waveannounced it received a strategic investment from private equity firm SARORAS Private Capital.
The amount of the minority investment was undisclosed but the company said it is “significant.” Ninth Wave said it will use the funds to accelerate the growth of the Ninth Wave Platform, form new sales and marketing initiatives, and expand its leadership team.
“We have been continually focused on advancing our technology, team and strategic partnerships with companies and individuals that help us provide the highest level of services and counsel,” said George Anderson, Founder and CEO of Ninth Wave. “SARORAS is the perfect partner for us and pairs an expertise in our industry with the experience and proven playbook to scale our business.”
SARORAS, which typically invests in middle market technology and business services companies, said that Ninth Wave’s management team, reputation, and technology were the top factors for its investment.
Ninth Wave positions itself as the financial data supply chain, offering a SaaS solution that delivers financial data through a universal standard that satisfies open banking requirements. In addition to data access and data aggregation tools, Ninth Wave also provides tax services that streamline and simplify tax reporting.
Last year, Ninth Wave was spun out from its parent company, Enterprise Engineering, Inc. (EEI). Anderson debuted the newly-formed company at FinovateFall 2018 in New York. The Ninth Wave platform offers access to more than $8 trillion in AUM for eight of the top 10 wealth managers. Since launching last year, Ninth Wave has analyzed more than 10 billion transactions.
Backbase is named a leader in the Forrester Wave for Digital Banking Engagement Platforms for the third year in a row.
InCommbecomes exclusive distributor of Amex prepaid cards in Canada.
TradeshiftlaunchesTradeshift Go 2.0, a payments product offering that increases visibility into employee spending.
Gustopartners with Accelo to sync time-off requests from Gusto to Accelo’s real-time scheduling and resource management module.
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.
Customer preferences and expectations are rapidly changing. For banks to remain relevant – or better yet – increase their relevance in customer’s eyes, they need to operate from an entirely different CX paradigm. Banks need to orchestrate increasingly complex systems of engagement and support a broad range of use cases along the shop-buy-use continuum. Beyond just sales and marketing, banks must develop and nurture customer relationships flexibly along the entire customer lifecycle with fewer in-person interactions.
In this webinar, Celent’s Bob Meara will review recent consumer research which suggests a significant and tangible gap between transactional and advisory trust among U.S. banked adults.
What was discussed?
Defining the Trust Gap in retail banking and illustrate its root causes
How leading banks are closing the Trust Gap through redefining the in-person and digital customer experience
How banks must re-tool to deliver excellent CX as engagement becomes increasingly digital
Practical next steps to take in improving your customers’ trust in your organization, regardless of where you are in your transformational journey
Two of Finovate’s earliest alums – Jack Henry and Geezeo – are joining forces in an acquisition announced today. The deal will enable Jack Henry to sell Geezeo’s financial management solutions to its core bank and credit union customers, as well as offer Geezeo’s technology to its non-core clientele working with the company’s ProfitStars division.
Terms of the acquisition were not disclosed.
“We’ve already enjoyed a long relationship with Jack Henry & Associates, so we’re thrilled by this acquisition,” said Shawn Ward, Geezeo co-founder and CEO. “We look forward to what comes next as Jack Henry continues to build best-in-class digital platforms for financial institutions.”
Jack Henry made its Finovate debut in 2010. Geezeo’s first Finovate appearance was even earlier, at FinovateFall in 2007. The two companies have been “strong business partners” for years, according to Jack Henry VP Ron Moses who praised Geezeo as a company that “takes personal financial management (PFM) to the next level” – in part by leveraging data to build better relationships between FIs and their customers.
“The result is better control for consumers and businesses over their daily and long-term finances so they can achieve greater financial confidence,” Moses said.
Jack Henry sees Geezeo as a company that has effectively evolved beyond its origins as a PFM solution provider into a “critical data partner” for banks, credit unions, financial service providers, and other fintechs. The company seamlessly integrates its technology into client digital banking platforms to help support better customer engagement, drive more effective cross-selling, and leverage data to provide deeper insights into customer preferences.
Founded in 2006, Geezeo demonstrated its PFM technology at FinovateFall 2014. In addition to partners like Alliant, Suncoast Credit Union, and Regions, Geezeo announced last fall that Best Innovation Group would use its SDK to add PFM functionality to their Financial Innovation Voice Experience (FIVE) voice banking platform. Also last year, Geezeo released its Responsive Tiles product that gives credit unions and banks a new way to readily incorporate PFM into mobile and online digital banking platforms.
A three-time winner of Forbes Best Large Employers award, Jack Henry & Associates is the primary technology partner for more than a 1,000 financial institutions ranging from credit unions and community banks to billion-dollar mid-tier banks and multi-bank holding companies. Founded in 1976 and headquartered in Monett, Missouri, Jack Henry trades on the NASDAQ exchange under the ticker symbol JKHY and has a market capitalization of $10 billion. The company demonstrated its technology at FinovateFall 2015.
Courtesy of a new partnership with Sigma Securities and Trove Technologies, global digital trading technology specialist DriveWealth is launching a new digital U.S. equities trading product for retail investors in Nigeria.
“Making U.S. securities available to investors of any size in countries all around the globe is an essential element of the mission of DriveWealth,” company CEO Robert Cortright said. “We are delighted to work with Sigma Securities and Trove Technologies on this effort to democratize investing in Nigeria by bringing to its retail investors the largest and most liquid, transparent financial market.”
Sigma Securities is a leading Nigerian brokerage firm, founded in 1995 and headquartered in Lagos. Trove Technologies is a financial app developer based in Nigeria that offers investors the ability to purchase stakes in U.S., Chinese, and Nigerian stocks, as well as government bonds and U.S. exchange-traded funds with as little as $2.80 (NGN1,000).
Leaders from both Sigma Securities and Trove Technologies highlighted the way the partnership would help “(break) through the trading barriers” in the words of Sigma Securities CEO Dunama Balami and “eliminate the longstanding bottlenecks” according to Trove Technologies CEO Oluwatomi Solanke. “Our partnership with DriveWealth and Sigma Securities brings the world’s largest stock market to Nigerian investors, regardless of spending power,” Solanke said. Balami referred to the partnership as “a groundbreaking feat” for the Nigerian capital markets.
Founded in 2012 and headquartered in Chatham, New Jersey, DriveWealth demonstrated its platform at FinovateAsia 2016, following its Best of Show winning demo at FinovateEurope earlier that year. The company provides a suite of APIs that enable global investors to participate in the U.S. stock market at a reasonable cost, including the ability to purchase fractional shares. DriveWealth offers both digital investment products to help brokerages around the world provide broader options for their clients, as well as dollar-based, real-time investing via its brokerage service.
Recent headlines for DriveWealth include a collaboration with Investor Cash Management announced in May, in which DriveWealth will power new white-label cash management accounts that are linked to government money market and ultra-short term bond funds. DriveWealth began the year with an announcement that it would expand its partnership with Stake to bring commission-free trading in U.S. stocks and ETFs to investors in South America.
With clients and partners in more than 140 countries around the world, DriveWealth has raised $29.4 million in funding. The company includes Route 66 Ventures, Raptor Group, SBI Group, and Point72 Ventures among its investors.
