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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
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, 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.
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.
Featuring: Brett King, CEO & Co-Founder, Moven
Thursday 21 March
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.
IBMDebuts Blockchain Network for Cross-Border Payments.
Finovate Global:PayPal in Argentina; TemenosBacks African Challenger Bank.
Around the web
Envestnet to acquire PIEtech, maker of MoneyGuide, in $500 million deal.
HooYupartners with online lottery betting operator, Lottomart, to help the Gibraltar-based firm meet AML requirements.
Wiprolaunches its AI and machine learning-powered accounts payable, KYC, and other solutions on Amazon Web Services.
Polish neo bank Nest Bank unveils new lifestyle services module, Finanteq’sSuperWallet, to its mobile banking app.
FindBiometrics interviewsBiometric Signature ID CEO, President, and founder, Jeff Maynard.
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.
Prepaid payments technology firm InComm marked its eighth acquisition this week with the purchase of Linq3 Technologies, an Atlanta, Georgia-based digital lottery company. Terms of the deal were not disclosed.
The deal gives InComm access to Linq3’s suite of lottery products that leverage consumer interaction at retailers’ point of sales systems. Brooks Smith, InComm founder and CEO, noted that incorporating the new technology will enable InComm “to deliver new product solutions to create experiences that will engage the consumer – right at the retailer’s point of sale.”
Smith also noted that this week’s purchase extends beyond technology and into Linq3’s human resources, offering InComm lottery industry intelligence. “This transaction brings us an experienced management team with a great deal of industry knowledge that can be leveraged to transform and grow lottery business across North America.”
In anticipation of the acquisition, InComm has already integrated with central gaming system vendors in the U.S. In fact, the company plans to launch lottery products including point of sale-activated draw games, prize payouts and validations, and prepaid state lottery gift cards for its retail clients.
Tom Spiegel, CEO of Linq3, noted that InComm will especially benefit from state lotteries. “Today, state lotteries face many challenges tied to retailer expansion, new player acquisition, and product innovation in an increasingly digital world. Through InComm’s acquisition of Linq3, state lotteries will now have the ability to reach more players through new and current retailers, retailers can realize more revenue by driving new consumer traffic to their locations, and lottery players will benefit from easy, simple and new ways to purchase and play lottery products.”
LendingFront, Veridium, and Voca.ai are three of the seven companies recently selected to participate in Mastercard’s startup engagement program, Start Path. The accelerator program works with startups from a variety of fields ranging from banking and biometrics to data intelligence and security. Participating companies will access Mastercard’s worldwide ecosystem and leverage their new relationship with Mastercard and its customers to expand into new markets.
“After searching around its presence in 210 geographies and beyond,” a statement from Mastercard Start Path read, “Mastercard and seven startups are descending upon Dublin this week to ignite their collaboration.”
Start Path begins with a kick-off event that helps the program administrators get to know the companies, define goals and introduce startups to Mastercard’s partners, as well as future channels and customers. The majority of the program consists of a six-month virtual engagement that companies participate in from their home location.
Upon successful completion of the Start Path program, companies that have produced what the program referred to as “tangible value” for Mastercard’s partners will be eligible for potential strategic investment.
“The diverse technologies comprising the latest Start Path wave is a snapshot of the nearly 10,000 startups and fintechs connected to Start Path since its founding in 2014,” the program announcement noted. “It also shows how, through Mastercard Labs, we partner successfully to explore new technologies, accelerate new concepts and deliver transformative growth and change to the commerce landscape.”
The full roster of companies also includes Fligoo, mfarmPay, Monsoon CreditTech, and Segasec.
LendingFront demonstrated its Small Business Platform at FinovateFall 2016. Founded in 2015 and headquartered in New York City, the company offers an automated lending platform that consolidates processes typically conducted by disparate systems. The technology features application workflow for loan processing, a data engine, decision engine, offer screens, documentation and booking functionality, as well as servicing. LendingFront raised $4 million in Series A funding at the beginning of the year.
Massachusetts-based identity and access management solution provider Veridium demonstrated its VeridiumID with 4Fingers Touchless ID technology at FinovateEurope 2017. Earlier this month, the company unveiled its InMotion solution that leverages user behavior analytics to help secure online identities and prevent cyberfraud. Also this spring, Veridium partnered with Blue Turtle Technologies to drive adoption of biometric technology in Africa.
Best of Show winner Voca.ai demonstrated its intelligent virtual agent for call centers at FinovateEurope 2019 in February. It was the second Best of Show win for the company, which made its Finovate debut at FinovateAsia last fall. Founded in 2017 and headquartered in Herzliya, Israel, the company’s technology provides a flexible, natural-sounding, automated human voice system that improves customer satisfaction, and helps businesses convert and qualify more leads.
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.
Billpay solutions company doxoannounced a new partnership with R.R. Donnelley & Sons Company (RRD) recently that will offer the marketing and communications solutions provider’s clients access to doxo’s electronic billpay solutions.
Tim Reedy, president of RRD Business Communications Solutions said, “We partnered with doxo because consumers are increasingly seeking a seamless, digital bill pay experience, and doxo has developed a capability that delivers that experience.” doxo’s secure payment solution enables customers to access and pay bills from more than 45,000 providers using a single set of login credentials. “Like our other business communications solutions, doxo integrates easily into our clients’ current workflows and processes to further enhance their communications program without any down time,” Reedy added.
doxo is compatible with existing billing systems and allows billers to electronically connect for free. The platform offers a simplified experience for end users and provides a complete online payment system for billers who have yet to go digital. Among the company’s list of billing partners are AT&T, National Grid, Puget Sound Energy, Kansas City Light, and more providers across finance, utilities, healthcare, telecom, banking, and insurance sectors.
Founded in 2008, doxo debuted its Control Panel at FinovateSpring 2011. The Seattle-based startup is among the companies that will take the Finovate stage at FinovateSpring to demo its newest technology. doxo has raised $18.8 million and counts Mohr Davidow Ventures, Sigma Partners, and Bezos Expeditions as investors.
