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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Cornèr and NDGITpartner to provide direct access to third-party service providers under PSD2 regulation.
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.
After yesterday’s demos we’re ready for four more today. The day begins with one of our favorite sessions, Analyst All Stars, and concludes with a crowd-favorite, the crowning of the Best of Show winners.
Registration opens at 8 a.m. and the first session begins at 9 a.m. Come early for some pre-show networking or catch up on email with a hot cup of coffee before the show.
Here’s an overview of what the agenda looks like today:
Global payments platform Flywire is extending its agreement with China’s UnionPay, the Massachusetts-based company announced today.
The two are re-launching a program that discounts foreign exchange rates on cross-border tuition and healthcare transactions. The initiative, which first launched last spring, is available to all UnionPay cardholders making payments originating in China. The rate on foreign exchange payments made to participating education and healthcare facilities will be the same as a local bank transfer.
“We strive to offer our clients’ payers the most convenient and secure payment options in each international market they serve,” said Ryan Frere, vice president of global payments for Flywire. “For Chinese students and patients making cross-border payments, UnionPay is the most preferred and trusted brand. We’re pleased to expand this program and bring valuable savings to more payers and institutions.”
UnionPay is a smart partner pick for Flywire. The bank’s home country is the number one origination of students studying abroad. More than 662,000 Chinese citizens studied abroad last year, a figure up 9% from 2017. Medical tourism is also popular among Chinese citizens; more than 630,000 Chinese patients traveled abroad for medical care in 2018.
Flywire originally launched as peerTransfer in 2011, when the company debuted its college tuition payment platform at FinovateSpring 2011. Flywire’s platform processes billions of dollars in payments every year in over 120 different local currencies, connecting more than 1,400 businesses and universities with their customers.
In addition to its Boston headquarters, the company has offices in Chicago, London, Manchester, Valencia, Shanghai, Singapore, Tokyo, Cluj, and Sydney.
Bahrain’s Electronic Network for Financial Transactions (Benefit) is designing and implementing a Know Your Customer (KYC) utility that incorporates blockchain technology, in partnership with Fenergo, a provider of digital Client Lifecycle Management (CLM) solutions, reports Henry Vilar of Fintech Futures (Finovate’s sister publication).
The utility platform will support sectors including retail and corporate banking and asset management, as well as insurance and telecommunications in the future. Fenergo says it deployed the first phase of the eKYC implementation project in four weeks.
Financial institutions that subscribe to Benefit can instantly complete KYC and anti-money laundering (AML) compliance procedures when onboarding new individual and corporate customers through the Fenergo’s eKYC hub and rules engine utilising blockchain.
The centralisation of customer data removes the need for duplicate requests for information, while the elimination of manual processes reduces costs and improves operational efficiencies.
The Fenergo API-first solution enables financial institutions to verify customer identity via biometric identity and verification (ID&V) technology, which links to Bahrain national identity card data before instantly connecting to the eKYC hub.
This will prompt Fenergo’s rules engine to determine the required KYC and AML data and documentation for customer due diligence (CDD) as subscribed by Central Bank of Bahrain. Once the customer is quickly and successfully onboarded, Fenergo will write data attestations to the blockchain for reuse by other financial institutions within the Bahrain ecosystem.
Fenergo CEO Marc Murphy said, “Regulatory mandated KYC utilities represent a massive opportunity to enable significant efficiency, improve customer experience and help drive regulatory certainty. In a digital economy, where open banking and customer choice are at the forefront, making the KYC process digital is a huge enabler for any digital transformation initiative.”
Fenergo is developing the cloud-based utility as part of an initiative mandated by the Central Bank of Bahrain (CBB) to enable financial institutions to seamlessly perform CDD checks for enhanced customer experiences and regulatory certainty. The initiative is part of a wider government scheme, Economic Vision 2030, to improve the kingdom’s economy.
Online and mobile billpay innovator doxo has announced a new integration with financial services data and insights network – and fellow Finovate alum – Plaid – that will help consumers avoid overdraft charges when paying bills via doxo’s service.
“doxo’s mission is to massively simplify bill payment and reduce anxiety of failed payments and overdraft fees,” doxo CEO and co-founder and Steve Shivers said. “Through this new integration with Plaid, we’re now providing real-time bank balance, at the time of every payment, to help our users avoid those fees. Now users can better time their payments to align with their bank balance, or switch to alternative payment accounts like credit cards when needed.”
In addition to providing transparency, better organization, and less stress for consumers, doxo believes billers will benefit from the improved confidence they will have for each incoming payment. Billers who join doxo’s payment network will be able to add the overdraft protection feature as a user benefit easily, without complexity or expense.
doxo will make the new solution available initially as a beta offering for a limited group. The company anticipates expanding access to all of its customers beginning in June.
“Account overdraft is a huge problem in the U.S. that could be solved in part with more tools that provide real-time insight into consumers’ own bank accounts,” Plaid Head of Sales Paul Williamson said. “Solutions that give people transparency into their financial life are a real win for consumers and can make a serious impact on their ability to understand and manage money.”
doxo made its first Finovate appearance in 2011, demonstrating the web-based Control Panel interface of its technology, and returned to the Finovate stage this week as part of FinovateSpring. Plaid is an alum of our developers conference, presentingPlaid: API for Financial Infrastructure at FinDEVr Silicon Valley 2014.
San Francisco, California-based Plaid was founded in 2013. The company began 2019 with a major acquisition, purchasing rival and fellow Finovate/FinDEVr alum Quovo for $200 million. Named to the Forbes Fintech 50 in February, Plaid has raised more than $309 million in funding from investors including New Enterprise Associates, Kleiner Perkins, Index Ventures, Spark Capital, and Goldman Sachs Investment Partners.
Founded in 2008 and headquartered in Seattle, Washington, doxo launched itsdoxoINSIGHTS report last month. DoxoINSIGHTS is an anonymized, crowdsourced report on household expense data from the largest 25 metropolitan areas of the U.S.
In March, doxo added Apple Pay as a billpay option for its customers – the same month the company announced a partnership with R.R. Donnelley & Sons Company to provide the firm’s clients with access to doxo’s electronic billpay solutions. Winner of a Gold Stevie award from the American Business Awards last year, doxo serves more than 2.5 million users who make payments to more than 45,000 local and national businesses.
doxo has raised $18.8 million in funding, and includes Sigma Partners, Bezos Expeditions, and Mohr Davidow Ventures among its investors.
U.S. challenger bank-turned BBVA subsidiary Simplehas a surprising new offering for its mostly millennial client base. The bank wants its customers to start using paper checks.
The Portland-based bank unveiled the news in an email to members yesterday. “We heard you: sometimes you just gotta write a check, even if you do your banking online. So here they are in all their glory—Simple paper checks,” the email read.
The checkbooks are available for $5 for a book of 25 checks and, as Simple noted, “they work just like regular checks (Cursive not required.)” For its clients who may not be familiar with checks, Simple included a special section in its FAQ on paper checks, including a subsection titled, “writing a check” that offers step-by-step instructions.
So why checks, and why now? Simple’s addition of paper checks is likely a patch of sorts. That’s because, along with today’s announcement, the bank also told clients that it is shutting down its billpay service. Starting July 9, users will need to use paper checks to pay bills.
It’s also possible that Simple truly did receive pressure from customers requesting the service. If this is the case, it says two things about the state of fintech. First, it’s a downvote for cash. It’s also a humble reminder that, despite all of the tech available, fintech still lacks proper digital channels that connect consumers with the right recipients. The checks aren’t a substitute for peer-to-peer payment apps such as Venmo and Zelle. Instead, Simple’s customers will likely use the paper checks to pay bills and small contractors who do not accept credit cards.
Founded in 2009 and launched two years later under the name BankSimple, Simple debuted at FinovateFall 2011. In 2014, BBVA purchased the challenger bank for $117 million. In September of 2018, Simple announced it will pay 2.2% interest on savings accounts with balances of more than $2,000. Late last year, seven months after Simple’s CEO and Co-Founder Josh Reich announced plans to leave, the digital bank appointed David Hijirida, a former executive at Amazon, as CEO.
Insuritas and Tower Hill Specialty partner to bring Tower Hill’s property products to market through Insuritas’ bank partner network.
NIIT Technologiespartners with Blue Chip to bring its wealth management application to Blue Chip’s IBM POWER.
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.
While some of the audience got a head start yesterday with the Summit Day discussions, today is the start of our mainstage event.
As a reminder, we’ve moved the event to the Hilton Union Square in San Francisco. And tickets are available at the registration desk so there’s still time to take part in the action.
Registration opens at 8:30 a.m. Be sure to come early to grab your badge and enjoy a cup of coffee and breakfast while you network. The demos will start at 9:30 a.m., so give yourself enough time to find a good seat in the auditorium.
Here’s an outline of the rest of today’s schedule:
Prepaid payments innovator InComm is expanding into wearables this week. The Georgia-based company announced its MyVanilla Prepaid Mastercard is compatible with Fitbit Pay and Garmin Pay.
This is the first prepaid card to work with Fitbit and Garmin; prior to today’s announcement both were limited to debit and credit cards.
“The payments industry is steadily moving toward a digital ecosystem, and we are ensuring both consumers and our retail partners are ready for this change,” said Michael Parlotto, Vice President of Emerging Technologies at InComm. “Bringing MyVanilla to Fitbit Pay and Garmin Pay allows consumers to quickly and confidently use their prepaid cards on the go.”
With the launch, consumers using the MyVanilla general purpose reloadable (GPR) prepaid card can make payments using Fitbit’s and Garmin’s mobile wallets at locations where Mastercard prepaid payments are accepted. Compatible devices include the Fitbit Charge 3, Fitbit Ionic, and Fitbit Versa; as well as the Garmin D2 Delta, Garmin fenix 5, Garmin Forerunner 645, and Garmin vivoactive 3.
The consumer’s card number is never stored on their wearable device. Rather, the device generates a unique token to process the transaction, ensuring card number secrecy in the event the watch is lost or stolen.
Along with the wearables announcement, InComm unveiled it will bring NFC capabilities to retailers in its payment network. This update will allow InComm prepaid cardholders to reload Vanilla Prepaid cards that are connected to mobile wallets by tapping their NFC-capable phone. “[O]ur launch of tap-to-reload capabilities expands our suite of payment processing tools to include full lifecycle management of the mobile payments ecosystem, from provisioning capabilities to reload processing,” said Parlotto.
Fiserv has gained three Canadian credit unions for its DNA core system, reports Martin Whybrow of Fintech Futures (Finovate’s sister publication).
These are Carpathia Credit Union, based in Winnipeg, Manitoba, and Toronto-based duo, Estonian Credit Union, and Parama Credit Union.
Canadian service provider, Celero, has been recruited to work on the projects, having implemented Fiserv solutions at other Canadian credit unions over the years.
Drivers given for the decision include a desire to automate and streamline operations, simplify the creation of new products, and activate a full range of integrated digital services for their members.
Among other reasons for the selection, Nick Rawluk, CEO at Carpathia Credit Union, cites, “the proven track-record of continuous investment in DNA”.
DNA, which Fiserv acquired with Open Solutions in early 2013, is used by more than 100 credit unions in Canada, including 60 of the top 100 based on assets, serving more than 1.2 million members.
The Microsoft and Oracle-based system started life in the early 1990s as The Complete Banking Solution (TCBS). From the outset there was a credit union version with the same code base, The Complete Credit Union Solution (TCCUS), and this has always been a strong sector for the system.
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.
Silicon Canals listsKantox among 10 hottest Barcelona fintech startups to work for in 2019.
PYMNTS interviewsEntersekt’s country manager of Canada Christian Ali.
Tunisian bank selectsTemenos to drive digital transformation and future growth.
Diebold Nixdorfexpands partnership with Belgian-owned Belfius Bank and Insurance to improve the UX for the bank’s 3.5 million consumers.
BlueVine and Nationwide partner to launch Pitch to Win small business contest with $100,000 prize.
Kabbage partners with the Building Trades Employers’ Association to provide members, specifically women and minority-owned business contractors, access to funding.
Micronotessees triple-digit YOY client growth in Q1 2019
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.
Two of the hottest trends in fintech – AI technology and the prioritization of the customer experience – will be the focus of our special, pre-FinovateSpring Summit Day, that begins Monday morning here at the Hilton San Francisco Union Square on O’Farrell Street in San Francisco, California.
Our Summit Day will feature two parallel tracks – one focused on AI and the other dedicated to the customer experience – that will include keynote addresses, case studies, panel discussions, and debates all designed to help conference attendees better understand how these trends are shaping technology in general and fintech in specific.
Here’s a look at what we’ve got in store for you today. For more about our Summit Day speakers and topics, check out our previews for both the AI and CX summits.
Artificial Intelligence Summit
8:15am – 9am – Registration, Breakfast, and Networking
9:05am – 9:30am – Keynote Address: How Artificial Intelligence Will Transform the Financial Services Industry
9:30am – 9:50am – Special Address from an AI Pioneer: Making AI Walk the Talk
9:50am – 10:30am – Strategy Roundtable: Transforming Legacy Businesses with AI – Machine Learning is King Now But Image, Voice, and Natural Language Processing Are Coming Up Fast. What are the Internal Challenges? The Ethical Challenges? And the Business Opportunities?
9:05am – 9:30am – Keynote Address: The Evolution of Innovation: Build, Buy, Or Partner?
9:30am – 9:50am – Analyst Insight: Return on CX – 80% of the Potential ROI is Left Untapped
9:50am – 10:30am – Strategy Roundtable: How Can Financial Institutions Transform Customer Experience through Deep Customer Insights? Why Powerful Data Analytics Will Be Critical for Success?
11:00am – 11:25am – Fireside Chat with a Fintech Founder: How to Innovate on Behalf of the Customer & to Build a Business Around their Needs to Drive Loyalty and Sustained Growth
11:25am – 11:45am – Presentation: Customer Experience Promise vs. Reality: Getting to Measurable Impact
11:45am – 12:25pm – Leaders Debate: How to Align Your Whole Organization to a Common Customer Purpose & to Harness Future Tech to Redraw the Customer Experience Landscape
12:25pm – 1:25pm – Lunch & Networking Break
1:25pm – 1:45pm – Fireside Chat: Creating a Seamless Digital Customer Experience
