SynapseFI Raises $17 Million in New Funding

SynapseFI Raises $17 Million in New Funding

 

SynapseFI is making public what insiders have known for months: the Bay Area banking platform provider closed a $17 million Series A late last year. Trinity Ventures and Core Innovation Capital led the round.

In a blog post thanking the customers who “build awesome products on top of us and pay our bills,” company CEO and founder Sankaet Pathak explained both what SynapseFI does and what he called “our super secret plan” to democratize banking.

“Our super secret plan is to build a better operating system for banking that is less expensive to maintain and easy to innovate on top of,” he wrote. “Then to change banking from a lending or transactions business to a SaaS business.” In order to do this, SynapseFI focuses on three areas: back office automation to lower per customer costs, vertical integration of all products and services, and behavioral economic research to help firms build consumer-friendly financial solutions.

“I am beyond excited for what lies ahead,” Pathak wrote. “The capital infusion is not just a testament to the team executing well; it is also a testament to the need for democratized financial access for all people – regardless if they hold ten dollars in their bank account, or ten million.”

Founded in 2015, SynapseFI demonstrated its white label loan issuance solution at FinovateSpring 2018. The solution provides origination and servicing of unsecured consumer and business loans, including customizable decisioning, automated compliance, and smart notifications. With a goal of simplifying banking, SynapseFI provides an intuitively-designed bank with more efficient, automated back office and access to key services for all customers.

SynapseFI began the year with news that it would support interchange processing for debit and credit card transactions. Last month the company announced new custodial accounts for escrow, payment, and crowdfunding applications, as well as a new multi-bank savings account offering that enables per user FDIC coverage of up to $16 million.

In May SynapseFI unveiled its first Crypto Wallet for Bitcoin (recently updated). The company began the year with the launch of its Design Lab, which helps developers improve the UX for their financial solutions.

CAN Capital Receives $287 Million Financing Facility

CAN Capital Receives $287 Million Financing Facility

Small business lending solution company CAN Capital has accepted a $287 million financing facility from alternative asset manager Varadero Capital. This marks the second time Varadero Capital has facilitated funds for the New York-based company.

CAN Capital plans to use the funds to support growth, invest in talent and technology, and enhance the customer experience. “We look forward to utilizing this funding to expand our ability to provide access to capital for small businesses, enhance our technology stack, and continue to build a dedicated, customer-driven team,” said Parris Sanz, CEO of CAN Capital.

Additionally, the company reached a milestone this week, having provided small businesses access to more than $7 billion in funding through 190,000+ transactions. “Reaching $7 billion in working capital is a significant milestone for us. We are excited to use our deep experience and data to enable even more small business owners to grow with streamlined access to capital,” Sanz added.

Founded in 1998, CAN Capital has helped 81,000 small businesses ranging from restaurants to auto repair shops by offering capital for them to open new locations, purchase equipment, hire employees, and more. The company last demoed at FinovateFall 2013, where it showed off its mobile funding solution. Earlier this year, CAN Capital appointed Tom Davidson as Chief Financial Officer.

Finovate Global: Fintech News from Around the World

As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from Around the World is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.

Sub-Saharan Africa

  • BanQu launches partnership with Anheuser-Busch InBev to revolutionize supply chain transparency in Zambia.
  • WorldRemit unveils new digital money transfer service for Kenya, Rwanda, Tanzania, and Uganda.
  • Forbes looks at the presence of fintech specialists – including representatives from Azimo and Standard Chartered – during UK Prime Minister Theresa May’s recent visit to South Africa, Nigeria, and Kenya.

Central and Eastern Europe

  • Entrepreneur.com features Fintech OS in a discussion on fintech innovation in Romania.
  • Fortytwo Data opens its first international office in Kiev, Ukraine.
  • Hungary to go live with instant payments in July of 2019.

Middle East and Northern Africa

  • Finastra joins Bahrain FinTech Bay to promote fintech innovation in the Middle East.
  • FinTech Hive, the biggest accelerator in the Middle East, Africa, and South Asia introduces its incoming startup cohort – 50% of which is fintech.
  • Sarwa, a wealth tech innovator based in the UAE, raises $1.3 million in pre-Series A funding.
  • United Bank of Egypt leverages technology from Finastra to upgrade its core banking infrastructure.

Central and South Asia

  • India-based IT consultancy Wipro inks agreement with Alight Solutions.
  • Legendary investor Warren Buffett reportedly casts his gaze on India’s fintech market.
  • Tech in Asia features the 20 top-funded fintech companies in India.

Latin America and the Caribbean

  • NICE provides its Desktop Automation solution to Latin American CRM and BPO solution provider, Liq.
  • Fintech Futures publishes a look at neobanks in Latin America.
  • LATAM Tech features Christine Chang of Startupbootcamp on the fintech startup scene in Latin America.

Asia-Pacific

  • Fiserv to power Philippine Veterans Bank’s digital transformation.
  • Bangkok Bank invites fintech startups to apply to its 12-week, InnoHub accelerator program.
  • Standard Chartered appoints Deniz Güven as CEO for its virtual bank in Hong Kong.
  • Visionet Data International and SmartPesa bring mPOS payment service, Mobey, to Indonesia.

Top image designed by Freepik

“View Your Career as a Marathon, Not a Sprint,” says Mary Jane Ajodah to Future Women in Fintech

“View Your Career as a Marathon, Not a Sprint,” says Mary Jane Ajodah to Future Women in Fintech

MARY JANE AJODAH_FinovateFall

Mary Jane Ajodah covers fintech and emerging technology within the Client Service Delivery Strategy Group at Bank of New York Mellon. Her responsibilities entail developing use cases for emerging technology with various business areas, identifying and driving opportunities for partnerships with third parties, and articulating a strategic vision around new technology for operations. Ahead of her session at FinovateFall – Industry Discussion: Transforming Legacy Businesses with AI – Building win-win Partnerships while Focusing on Utility, Practicality and Efficiency – we speak to her about her career path and her words of advice to the future women in fintech.

Finovate: How did you start your career?

Mary Jane Ajodah: I started my career in IBM’s internal strategy consulting practice. I worked on several projects core to IBM’s reorganization and transformation, including the launch of the IBM Digital business unit. I gained invaluable experience at IBM, particularly around how innovation and change are executed in a mature enterprise.

In late 2015, a recruiter from BNY Mellon reached out to me on a role focusing on fintech within the bank’s Operations Strategy team. Around this time, interest in topics such as ‘enterprise blockchain’ and AI was accelerating, with a great deal of discussion around the future role of custodians and other financial intermediaries. It was a unique opportunity and key point in time. Since joining, I’ve worked on a number of projects related to BNYM’s overall growth and innovation strategy. I’ve also appreciated the opportunity to cultivate our relationships with startups and VCs where there is mutual benefit.

The recurring theme for both of these roles has been driving change within enduring organizations (IBM at 100+ years, and BNY Mellon at 234 years). Mostly, I’ve been fortunate to have learned from inspiring senior leaders, and to have worked with excellent teams.

Finovate: What sparked your interest in fintech?

Ajodah: I was interested in both finance and technology separately, and my current role brings both together. I studied economics and international relations at NYU, and wrote my undergraduate honors thesis on sovereign debt and default. As I started my career, I wanted to ensure I had a skill set that would endure over the long-run – understanding the impact of technology on changing business models is a core component.

Finovate: What was your lightbulb moment?

Ajodah: I’ve had a few lightbulb moments on specific projects during my career, generally uncovering some root cause or issue and proposing a solution after interviews with various stakeholders and subsequent analyses. It is very rewarding when those moments happen.

Finovate: What inspires you?

Ajodah: Travel inspires me the most. I like to do a lot of solo travel, and have visited a lot of cool places. I visited Svalbard, the last human settlement before the North Pole, when it was 24 hours of night. This trip inspired an Off-Broadway show that I wrote and produced this past July — “Savage Force”. We sold out for all the nights of our run.

I am inspired the most by those that can be successful in multiple fields of endeavor – Fridtjof Nansen – who discovered most of the Arctic, along with being a scientist and diplomat, is one of them!

Finovate: Why is the #WomenInTech movement important?

Ajodah: My generation has tremendous opportunities thanks to the success and contributions of the women of generations prior. During the time I spent both at IBM and BNY Mellon, there have always been senior women at the highest levels of management with tremendous energy, experience, and knowledge.

Finovate: What piece of advice would you give women starting their careers in fintech?

Ajodah: View your career as a marathon, not a sprint. The ability to contribute consistently and effectively over time, and put in the intensity where it is truly needed is crucially important.

Xero Learn Sets Stage for Next Generation of Number Crunchers

Xero Learn Sets Stage for Next Generation of Number Crunchers

Accountants of tomorrow have a new hero in Xero. The cloud-based small business technology provider announced the launch of its Xero Learn solution this week, providing a new tool to improve financial literacy in the workplace and the classroom. Five institutions, including Swinburne University of Technology, University of Southern Queensland, Auckland University of Technology, Macquarie University, and AccountingPod, have already signed on to use the technology with their students.

“Xero Learn will revolutionize and future-proof the way educators teach their financial lessons,” Chief Partner Officer for Xero, Anna Curzon, said. Curzon underscored the number of schools and universities that have already embraced the technology, referring to the partnership as a “joint mission to empower the next generation of accountants, bookkeepers, and business owners with in-demand skills, knowledge, and job opportunities.”

Xero Learn helped the company earn Best Services Innovation honors at the Australian Financial Review (AFR) Innovation Awards this summer. The platform enables educators to establish business scenarios and gives students the ability to solve problems and work through tasks using Xero’s professional cloud accounting technology. Xero Learn can be integrated readily into business or accounting course curricula, and was “fine-tuned” in cooperation with more than 30 educational institutions during an early access program last year.

The company’s success with Xero Learn is only the most recent headline from the New Zealand-based fintech. In addition to opening new Americas headquarters in Denver, Colorado last month, Xero announced an integration with B2B payments platform and fellow Finovate alum, Paystand. The company acquired paperless accounting firm, Hubdoc  in August, as well, and forged a strategic alliance with fellow Finovate alum Gusto in July. Earlier this year, Xero integrated with BBVA’s API Market for small businesses, launched Connected Accounting to give businesses better visibility into their finances, and partnered with IT management solutions provider, Kaseya.

Xero is a publicly traded company, headquartered in Wellington, New Zealand, and trades on the Australian Stock Exchange under the ticker, XRO. Founded in 2006, the company has a market capitalization of $4.6 billion ($7 billion NZD) and 2018 revenues of more than $262 million ($400 million NZD).

Finovate Alumni News

On Finovate.com

  • Xero Learn Sets Stage for Next Generation of Number Crunchers.
  • SynapseFI Raises $17 Million in New Funding.

Around the web

  • iSignthis acquires core banking platform software business.
  • HooYu teams up with U.K. casino operator, Bear Group.
  • United Bank of Egypt leverages technology from Finastra to upgrade its core banking infrastructure.
  • Ripple and TransferGo partner on real-time, blockchain-enabled remittances.
  • Striata inks partnership with UK-based customer communications specialist Communisis.
  • Experian to launch comparison service feature that gives consumers the real rate charged when applying for a credit card.
  • Tibco has started a research lab to develop new products and services in emerging areas such as blockchain, machine learning, artificial intelligence (AI) and the internet of things (IoT).
  • BeSmartee integrates with Fannie Mae’s Desktop Underwriter to Accelerate Mortgage Process.
  • Kasasa names Amy Gililland Chief Financial Officer.

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.

Starling, Anorak Merge Insurtech with Mobile Only Banking

Starling, Anorak Merge Insurtech with Mobile Only Banking


Starling Bank, the U.K.’s first mobile-only bank, is innovating in another way this week. The challenger bank is teaming up with Anorak to bring personalized, transparent, compliant life insurance advice to its customers. Accessible via Starling’s in-app marketplace, customers will be able to link their accounts to Anorak’s technology, which analyzes the customer’s banking transactions to provide specialized advice on what kind of life insurance would be the best fit for them and why.

“Partnering with Starling enables Anorak to deliver on its mission to give everyone easy access to regulated life insurance advice and personalized options,” Anorak CEO David Vanek said. “By using Starling APIs, we’re harnessing the power of Open Banking to enable consumers to make the right choice and help them protect their families financially.”

Anorak’s technology scans major insurers including AIG, Legal & General, Zurich, Scottish Widows, and Royal London and gives consumers the best, personalized insurance options based on their family and finances – including customer-permissioned analysis of banking transactions. Anorak joins fellow Finovate alum Wealthify in Starling’s marketplace, along with firms such as robo advisor Wealthsimple, mortgage broker Habito, and pension provider, PensionBee.

“Starling’s Marketplace is designed to give customers ever greater control of their financial lives,” Megan Caywood, chief platform officer at Starling Bank said. “Our new partner Anorak does just this – bringing impartial life insurance to our customers within a few minutes. Like Starling, Anorak combines industry experience with great tech to provide a disruptive force for good.”

Founded in 2016, Anorak made its Finovate debut earlier this year at FinovateEurope. The company’s technology leverages advanced data science and machine learning to match consumers with the most appropriate, personalized, compliant policy from a major insurer. Anorak’s API integrates readily with apps and websites, enabling PFM solutions, banks, insurance comparison sites, and brokerages to use its smart data service to provide a better and more transparent insurance-buying experience for customers.

Anorak began the year with its first major fundraising, a seed round investment of more than $5 million (£4 million) from France’s Kamet Ventures.

HooYu Brings its Identity Verification Technology to EasyMoney

HooYu Brings its Identity Verification Technology to EasyMoney

Identity security firm HooYu is partnering with EasyMoney to verify customer identity and improve user experience for the platform’s investors, reports Henry Villar of Fintech Futures, (Finovate’s sister publication).

EasyMoney has launched a range of “innovative finance” ISAs. These contain peer-to-peer (P2P) loans where lenders are matched online with borrowers, cutting out the banks, which allows them to offer substantially higher interest than currently available via traditional ISAs.

“(EasyMoney) aims to make quality financial products more accessible to everyone,” said Andrew de Candole CEO at EasyMoney. “One part of making these products accessible as possible is by making sure we can onboard customers as easily as possible with minimal friction, HooYu Identify enables us to do this.”

David Pope, marketing director at HooYu, commented: “HooYu Identify combines and blends new identity technologies such as digital footprint analysis, online ID document validation and facial biometrics with traditional database checks and PEPS [politically exposed persons] and sanctions screening.”

EasyMoney has picked HooYu’s tech to be implemented throughout the investors’ account opening process and to ensure AML compliance.

The team behind HooYu has built several database check businesses such as 192.com and 192business.com.

HooYu is also in charge of other firms’ KYC processes, such as challenger bank Countingup and gold-as-currency enabler Glint.

Founded in 2016, HooYu demonstrated its verification technology at FinovateEurope this spring. The company launched its HooYu Investigate data visualization tool to accelerate investigations and create actionable intelligence earlier this year. In August, the company launched its new hooyubusiness.com website, combining its identity verification and investigation services businesses.

FinovateFall Sneak Peek: SaleMove

FinovateFall Sneak Peek: SaleMove

A look at the companies demoing live at FinovateFall on September 24 through 26, 2018 in New York. Register today and save your spot.

SaleMove helps companies identify the highest-value visitors in real-time; communicate with them using chat, audio, or video; and guide them through inquiries with cobrowsing and screensharing technology.

Features

  • Identify your highest-value customers
  • Communicate with clients using anything from chat to phone to video
  • Engage with customers by collaborating with cobrowsing and screen sharing technology

Why its great
SaleMove creates the most elegant online interactions between a business and their customers.

Presenter

Dan Michaeli, Co-Founder and CEO
Michaeli is the CEO and co-founder of SaleMove and is the driving force behind its mission to meet or exceed the in-person customer experience online. He is originally from Guatemala and is a proud UPenn grad.
LinkedIn

FinovateFall Sneak Peek: Simpler Trading

FinovateFall Sneak Peek: Simpler Trading

A look at the companies demoing live at FinovateFall on September 24 through 26, 2018 in New York. Register today and save your spot.

Simpler Trading’s Simpler Charts is an easy-to-navigate charting platform that equips traders with the tools they need while lowering the barrier to entry for trading education.

Features

  • One-click access to moderator’s charts in trading room
  • Push notifications for entry/exit triggers predetermined by the user
  • Customizable integrated trading journal

Why it’s great
Combining the tool’s easily-navigated interface and explanatory pop-ups with Simpler Trading’s educational content lets traders consistently and confidently put what they’ve learned into practice.

Presenters

John Carter, CEO, President
Carter, a life-long trader and the author of Mastering the Trade, has combined his passion for trading and helping others to create Simpler Trading.
LinkedIn

Fred Bryant, COO
Bryant has a diverse business background with experience advising top executives of small and newly-established businesses on how to create, grow and maintain their enterprises.
LinkedIn

FinovateFall Sneak Peek: Digital Onboarding

FinovateFall Sneak Peek: Digital Onboarding

A look at the companies demoing live at FinovateFall on September 24 through 26, 2018 in New York. Register today and save your spot.

Digital Onboarding helps banks and credit unions turn account holders into engaged and profitable relationships by making it easy for customers and members to adopt account-related services.

Features
The platform’s E.W.E. machine learning capability helps marketers automatically test and discover the most effective message cadence, content, and incentive offers to drive optimum performance.

Why it’s great
While most marketers say that they are not using most marketing automation system features effectively, the Digital Onboarding platform is designed to to be simple and cost efficient.

Presenters

Ted Brown, CEO
Brown cofounded Digital Onboarding after leading sales at Andera, a company that first made it possible to open deposit accounts online. (Andera was acquired by Bottomline in 2014).
LinkedIn

Jonathan Crossman, CTO
Before cofounding Digital Onboarding, Crossman gained more than a decade of experience working in web and mobile development for companies like Digication and DePuy Synthes.
LinkedIn

FinovateFall Sneak Peek: MuniRisk

FinovateFall Sneak Peek: MuniRisk

A look at the companies demoing live at FinovateFall on September 24 through 26, 2018 in New York. Register today and save your spot.

MuniRisk is an application available via the Bloomberg terminal designed to address the longstanding issue of information fragmentation in the municipal marketplace.

Features

  • Strategically aligned with Bloomberg L.P.
  • World’s largest municipal finance database
  • Designed by industry-recognized market practitioners

Why it’s great
MuniRisk is the only platform that provides investors with complete municipal market coverage, leveraging proprietary organization and delivery of data to cut research time from hours to minutes.

Presenters

James Frischling, Chief Executive Officer
Frischling is currently serving as the chief executive officer of MuniRisk. In addition to his role at MuniRisk, Frischling serves as president of NewOak Capital which he co-founded in 2008.
LinkedIn

Joshua Noble, Head of Product
Noble is currently serving as head of product for MuniRisk. Prior to joining MuniRisk full time he spent 2.5 years as an analyst in NewOak Capital’s Fundamental Credit Advisory Practice.
LinkedIn