This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Point of sale lending company Financeitteamed up with ServiceTitan this week to help Canadian home service contractors offer their homeowner clients immediate, integrated financing options.
“Alleviating home renovation debt and accelerating the home improvement business is an important focus for Financeit,” said the company’s Founder and CEO Michael Garrity. “Through this partnership, we’re providing ServiceTitan’s Canadian customers an integrated and efficient way to finance any project quickly and hassle free, beneficial to both homeowners and contractors.”
ServiceTitan is an all-in-one software solution for home services businesses such as residential HVAC, plumbing, and electrical. The company’s tools range from client scheduling and service dispatching to accounting, payroll, marketing, and more.
The Financeit integration, which taps Financeit’s payment plans, will help ServiceTitan’s contractor clients close larger deals more easily, as well as sell upgrades and higher-end products.
Financeit made its U.S. debut at FinovateFall 2013 in a joint demo with fellow Finovate alum FIS. In 2017, the company closed an investment round with Goldman Sachs that gave the financier a majority stake in the Toronto-based fintech.
Founded in 2011, Financeit has amassed more than 7,000 merchant partners and processed more than $3 billion (C$3.6 billion) in loan applications. The company has raised $38.4 million.
Omnio Group is the latest fintech to partner with turnkey open banking platform provider, Token.io. The firm, whose digital banking platform, bank.VISION, powers banking and payments for more than 300 companies around the world, will leverage its new relationship with Token.io to provide open banking and PSD2 compliance to its FI partners.
“Token has enabled us to provide our clients with a PSD2 Open Banking Hub, which delivers secure connectivity between third parties and financial institutions,” Omnio Group Director of Implementation and Delivery, Rob Liddell explained. “Our next step is to work with Token to create innovative banking and payment experiences that meet the evolving needs of our digital customers.”
The first customer to take advantage of Omnio Group’s new partnership with Token.io is Irish postal, retail and financial service provider, An Post. The integration of both bank.Vision and TokenOS will give An Post access to crypto-based security, Token’s programmable money technology, as well as operational support, monitoring, and reporting.
“Our commercial strategy relies on our ability to successfully deliver in the digital world,” An Post Financial Services Director John Rice said. “Leveraging Token’s API puts us ahead of the game, enabling us to build a better proposition for our customers.”
Token.io demonstrated its PSD2-compliant open banking solution at FinovateEurope 2017. The company’s platform provides both banks and third parties with better compliance, quicker data aggregation, and direct bank payments with its single API and smart token technology.
Banks benefit from the ability to deliver more services to their customers and generate new revenue. By integrating TokenOS via simple, secure SDKs, banks can leverage crypto-based security and programmable money to build and develop new open banking apps. Payment service providers and merchants both win with better, more secure connections to banks, as well as faster access and lower costs.
Omnio Group is the latest company to sign on to Token.io’s open banking solution. Earlier this month, Token.io announced a partnership with Khaleeji Commercial Bank of Bahrain. Back in March, the company reported that it was working with U.K.-based challenger bank Tandem to ensure PSD2 compliance and support open banking. Late last year, Token and thinkmoney agreed to work together to expand open banking opportunities for the U.K.-based FI. More than 4,000 banks are currently connected via Token.io’s technology.
In addition to partnering with financial institutions around the world, Token.io also teamed up with open banking third party provider and identity and regulatory specialist Konsentus earlier this year. Together, the two will offer FIs in Europe a “fast and powerful combined solution for PSD2 compliance.” Token.io began 2019 by hiring a new Chief Technology Officer, Gaurav Kohli. Before joining Token, Kohli was VP of Product Development, Architecture, and Platform Engineering at Visa.
Financial services democratization company LenddoEFL (a merger of Entrepreneurial Finance Lab and Lenddo) appointed Paolo Montessori as CEO this week. Montessori, who has served as Lenddo’s Chief Operating Officer since 2015, is taking over the role from Richard Eldridge, Lenddo co-founder.
Paolo Montessori
Prior to his work at Lenddo, Montessori was CEO of mobile financial services software developer eServGlobal. In all, he has more than 20 years of multinational experience in financial services, IT, and telecom.
“Paolo has been working closely with me over the last 4 years as COO and has demonstrated all the qualities the organization needs to grow in 2019 and beyond. With his experience in the fintech sector in emerging markets, as a previous CEO of a listed company and his intimate knowledge of LenddoEFL, I am confident that Paolo will take the company to the next level”, said Richard Eldridge, who is staying with the company in a non-executive capacity.
LenddoEFL was formed in 2017 as the result of a merger between psychometric credit scoring company Entrepreneurial Finance Lab (EFL) and alternative credit scoring company Lenddo. EFL showcased its credit scoring tool at FinovateAsia 2012 in Singapore.
Through its efforts to make financial products available to 1 billion people across the globe, LenddoEFL has provided credit scoring and verification to 50+ financial institutions, helping them lend in excess of $2.5 billion to 8+ million people.
Kazakhstan-based Eurasian Bank has signed with Fiserv to streamline and automate its cash management processes with technology from Fiserv, reports Henry Vilar of Fintech Futures (Finovate’s sister publication).
The bank is implementing a range of cash and logistics solutions to enable web-based cash supply chain management and provide real-time visibility into cash needs.
This can allow the bank to centralize currency management, giving the bank a unified view of cash needs “rather than needing to piece together multiple sets of information.” Staff can then more accurately forecast cash needs across the bank’s ATM and branch network based on customer demand.
“Kazakhstan has a cash-based economy, and our customers have to be able to reliably access cash in order to conduct their daily lives,” said Natalia Iliyashenko, head of operations at Eurasian Bank. “With Fiserv, we will be able to gain a better view of where cash is across our entire network, so we can make sure money is available when and where our customers need it.”
“Access to cash is a defining component of banking convenience for Eurasian Bank customers,” said Lee Cameron, managing director of EMEA at Fiserv.
“Being able to optimise cash levels at our branches and self-service devices allows us to reduce our overall operating expenses,” continued Iliyashenko.
When cash sits idle in a bank or in a self-service device, like an ATM, it is costly for the financial institution because that money cannot be used for another purpose, such as funding a consumer loan.
Yet if there is not enough cash in the device for a customer to make a withdrawal, there is increased risk that a customer will take their banking business elsewhere. Through technology, banks can make certain the right supply of cash is available at branches, ATMs or any other self-service devices.
Fiserv recently appeared on the FinovateSpring 2018 stage alongside Samsung SDS, where the two showcased how Samsung SDS integrates its biometric authentication and collaboration solutions into Fiserv’s Commercial Center: Security (CC:S) to create a more secure and convenient digital banking experience. Some of the company’s recent partners include Eurasian Bank, NBT Bank, and Hellenic Bank.
Token.ioTeams Up with Omnio Group to Boost Open Banking.
Financeit to Power Mobile POS Financing for ServiceTitan.
ExpensifyIntegrates with Southeast Asia Ridesharing Company Grab.
Around the web
The Five Minute Founder podcast interviews Jake Tyler, Finn AI CEO.
STRANDS and adorsys expand their partnership for digital transformation for global financial services.
Signifyd to power fraud protection for Solupay’s NetSuite SuitePayments.
KonyshipsKony Quantum for Microsoft Azure and Kony DBX digital banking suite on Kony Quantum for Azure.
Connect Financial Software Solutions partners with CuneXus to offer the CuneXus perpetual loan automation platform to its credit union clients.
Georg von Brevern joinsIxaris as Chief Legal and Compliance Officer.
Telenor to acquire majority stake in the Finnish telecom operator DNA.
CrypteriumlaunchesCrypterium SX, an AI-based system that ensures all transactions get the best exchange rates available.
Omnio Group and Token.iopartner to deliver open banking and PSD2 compliance to Omnio’s financial institution customers.
Raiffeisen Bank International partners with Feedzai to bring advanced ML to European banking to fight fraud.
Jack Henry’s ProfitStarsunveilsGladiator Total Protect, a suite of managed IT, network security, and compliance services to enhance banks’ cybersecurity and compliance management.
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.
Financial services startup SoFi is building out its insurance offerings with the help of two insurtech startups.
The San Francisco-based company teamed up with Lemonade and Root, adding three types of insurance to the company’s existing portfolio. An integration with New York-based Lemonade will provide home and renters insurance, while Ohio-based Root will offer an auto insurance option.
Until this month, SoFi’s insurance offering was limited to life insurance, a product made possible through a partnership the company initiated in 2018 with California-based Ladder.
“Protecting yourself and your assets is a critical and often overlooked piece of your overall financial well-being,” said Anthony Noto, SoFi CEO. “People come to SoFi to get their money right, and we’re pleased to now provide them with more tools to be able to do so by partnering with companies that share our values in ease of use, transparency, and efficiency.”
The new insurance offerings aim to be simple to understand and transparent about pricing and benefits, without agents, middlemen, or phone calls. SoFi said that its client base requested more affordable insurance offerings. Over the past year, the company counted 8,000 conversations between financial planners and under-insured or uninsured clients.
Lemonade uses AI to craft an insurance policy tailored to each customer. With the company’s chatbot interface, users can select and start their coverage in 90 seconds. The charge is structured as a flat fee– homeowners insurance starts at $25 per month and renters insurance starts at $5 per month– and claims are paid in three minutes.
With Root’s auto insurance, drivers can potentially save up to 52% over their current coverage. The company uses data from clients’ smartphones to measure driving behavior and habits, offering better rates to better drivers. “Our priority at Root is to put the power back into consumers’ hands by making auto insurance clear and understandable,” said Alex Timm, Root Insurance co-founder and CEO. “We’re excited to partner with the SoFi team as a means for members to have access to more affordable, accurate and fair auto insurance.”
To boost interest in its existing life insurance product, SoFi announced it is offering $25 for life insurance applicants to invest in stocks, ETFs, or SoFi’s roboadvising. This comes as a response to research findings that indicate that millennials are misinformed about the costs and benefits of life insurance.
Founded in 2011, SoFi offers a range of millennial-focused financial products and resources. SoFi’s addition of the new insurance offerings “fulfills its ability to offer members every financial product they may need at any stage of life.”
At FinDEVr New York 2017, the company gave a presentation in combination with Quovo titled How Quovo and SoFi Perfected Bank Authentication. SoFi has raised $2 billion from 29 investors across 11 rounds of funding.
U.S. peer-to-peer lending pioneer Lending Clubclosed the doors on its in-house small business lending operation. The good news is that it opened a window for small business clients through a round of partnerships.
Opportunity Fund, a non-profit small business lender; Funding Circle, one of the largest alternative small business lending platforms in the U.S.; and Lending Club have teamed up to offer Lending Club’s small business clients access to credit. Businesses can now borrow up to $300,000 for rates as low as 5%.
“With partners like Opportunity Fund and Funding Circle, we’re creating an ecosystem where LendingClub’s members can take advantage of additional services from trusted providers that can help them generate more savings,” said Scott Sanborn, CEO of LendingClub. “This enables us to both deliver greater value to our applicants and capture a new revenue stream for LendingClub, while further simplifying our business and setting the stage for more partnerships and innovations for Club Members.”
Opportunity Fund will leverage LendingClub’s online application technology to provide prequalified offers to underserved small businesses, while Funding Circle will apply its credit assessment process to fund loans for established small businesses. Overall, the three will be able to serve a broader range of applicants, including those that may have previously been rejected because of limited credit, including businesses owned by minorities, women, and immigrant entrepreneurs.
Lending Club entered the small business lending market in 2014, before the company’s original CEO, Renaud Laplanche, resigned in 2016 amid accusations of loan-documentation errors.
Founded in 2006, Lending Club demoed at FinovateSpring 2009 and at the inaugural Finovate in 2007. The company went public in 2015 and today has a market capitalization of $1.46 billion.
Less than a year after making its Finovate debut, Boulder, Colorado-based cybersecurity specialist PasswordPing has rebranded as Enzoic.
“2019 begins a new era for our company and the name change to Enzoic reflects our growth and evolution,” company co-founder, CMO, and Head of Product Management Kristen Ranta Haital Wilson said. “Customers are using our products in different ways, from risk-based authentication signals to bundling our solutions into their own product suites. Our name needs to reflect the diverse use cases for our solutions.”
These use cases include providing identity theft protection via its flagship IDShield solution whether users are accessing their accounts online or on the app. Enzoic serves as an additional layer of security at the point of authentication, detecting compromised credentials and prompting password resets when unauthorized logins are identified.
The company also highlighted a new service, IDShield Credential Screening, that monitors online sources, including the dark and deep webs, for exposed credentials. Offered as part of the base level plan, the new feature alerts users in the event their credentials – typically paired usernames and passwords – are found. The service then prompts users to make necessary changes. Enzoic’s IDShield also offers password screening at both new account setup and during password reset to ensure that new passwords are suitably strong.
Enzoic sees itself as part of the solution to a problem that represents 81% of hacking-related breaches in 2018: the challenge of compromised credentials. The company notes that losses from account takeover (ATO) climbed 1.2x from 2016 to 2017, and increased by another 1.6x the following year. And unfortunately, the “friendly fire” of people reusing passwords – more than 70% according to some studies – makes the battle against compromised credentials that much harder to fight.
“We have reached the point where compromised credential screening is really a must-have in order to adequately secure the authentication layer of your customer applications and corporate systems,” Enzoic founder and CTO Mike Wilson said. “Balancing security with user experience is a business imperative; unlike some other solutions on the market, our solutions provide protection without unnecessary friction.”
Founded in 2016, the company – as PasswordPing – demonstrated its credential screening technology at FinovateFall 2018. A finalist in the Innovation Quotient awards last year, Enzoic was namedStartup of the Year at the 13th Annual 2018 IT World awards back in October.
A look at the companies demoing live at FinovateSpring on May 8 through 10, 2019 in San Francisco, California. Register today and save your spot.
AlignMoney from Digital Align is the world’s first digital Banking-as-a-Benefit platform for employees offered by employers to enable financial success at the workplace.
Features
A new benefit for employers to attract talent and retain loyal employees
Easy to apply and get instantly approved by multiple lenders
A new distribution channel for banks and credit unions.
Why it’s great AlignMoney is a Banking-as-a-Benefit platform that provides easy access to banking products and services at the workplace to assure employee financial inclusion and financial success.
Presenters
Rajeesh Patil, Founder and President Patil is a leader and solution architect with expertise in building strategy and execution plans for transforming all banking business functions in the areas of customer and employee experience. LinkedIn
Praveen Shekar, Head of Sales Shekar is a passionate sales leader with experience in selling software to enterprise customers. He has extensive experience working in banking and technology with a focus on digital transformation. LinkedIn
A look at the companies demoing live at FinovateSpring on May 8 through 10, 2019 in San Francisco, California. Register today and save your spot.
Wizely Finance is a white-label product that empowers financial institutions to deploy any new lending product to their best customers in a matter of weeks, from scratch.
Features
Understand customer behavior and cross sell opportunities with predictive analytics
Execute an automated, multi-channel marketing strategy
Leverage an all-in-one loan origination platform, payoff process and administrative dashboard.
Why it’s great Wizely Finance is a consumer loan division in a box, providing everything necessary to offer on-demand consumer loans and an elegant user experience.
Presenter
Paris Benson, Founder and CEO Benson is a three-time fintech entrepreneur, technical founder and customer acquisition specialist who has developed, run, and exited fintech companies over the last decade. LinkedIn
A look at the companies demoing live at FinovateSpring on May 8 through 10, 2019 in San Francisco, California. Register today and save your spot.
DataDock Solutions empowers its clients to make better decisions about what customers they trade with and where they allocate their risk wallet.
Features
Delivers data analytics, advanced metrics, and rich visuals
Helps make rigorous, consistent, and precise decisions
Provides 90% of the functionality with less than 10% of the cost, and delivers in weeks not years
Why it’s great Trading revenue is like a soup that has already been cooked: you can’t take the ingredients back out. DataDock uses powerful simulations to provide the next best thing: a recipe book and a taste test.
Presenters
Kumaran Vijayakumar, CEO and Co-founder Vijayakumar was global head of equity derivatives and convertibles at BofA. He led the build-out of equities trading at MF Global, and traded exotics/index options at Goldman Sachs and Citi. He has a BS from UC Berkeley, and an MBA from Wharton. Vijayakumar is also a CFA. LinkedIn.
Thomas Wadsworth, COO and Co-founder Wadsworth was formerly senior derivatives trader (MD) at Goldman Sachs, focused on single stock options, cross-asset opportunities and technology projects. He co-headed single stock volatility trading at BofA. Wadsworth earned a BE from Vanderbilt University.
A look at the companies demoing live at FinovateSpring on May 8 through 10, 2019 in San Francisco, California. Register today and save your spot.
Ziggurat is building an AI trading assistant for short term trading and execution for active investors in the stock market. The solution provides seamless, end-to-end, unlimited trades with real-time monitoring features.
Features
Search engine for finding the best opportunities
Future prediction for getting heads up for different stocks on the next trading day
Real-time position tracking for alerting and monitoring
Why it’s great Ziggurat’s live AI trading assistant provides seamless, unlimited free trades.
Presenter
Sia Nazari, Founder and CEO Nazari is formerly a scientist at UC Berkeley, and Berkeley Lab. He has experience as an investment advisor at Morgan Stanley, and a background in physics and finance. He is passionate about trading and financial markets. LinkedIn
