Tuum Teams Up with Debt Management Specialist Flexys

Tuum Teams Up with Debt Management Specialist Flexys
By David Penn Posted on
Categories: Alumni News, Daily news, Tuum
  • Core banking platform provider Tuum announced a partnership with debt management specialist Flexys.
  • The partnership will help banks improve their debt collection workflows.
  • Tuum won Best of Show in its Finovate debut at FinovateEurope earlier this year.

U.K.-based core banking platform Tuum has teamed up with debt management specialist Flexys. The partnership will help banks streamline and enhance their debt collection processes at a time when legacy core systems are limiting financial institutions’ ability to better serve their customers. These “old cores” also make it more difficult for FIs to keep up with stricter regulations surrounding credit and debt management.

“Flexys and Tuum are tackling debt management pain points head-on,” Tuum VP of Global Partnerships Jean Souto said. “Our partnership gives banks high-tech tools to streamline collections from end-to-end, reducing hassles through automation – a win for everyone involved.”

The partnership will help banks deal with the dual problem of tightening regulations and outdated, cumbersome debt management technology. Not only can legacy core systems inhibit the ability of financial institutions to readily meet compliance requirements, they can also fall short when it comes to providing more personalized service to customers. Integrating the two platforms enables FIs to swap out their old core systems in favor of cloud-based, debt collection workflows, and benefit from real-time data to help personalize the experience for each customer.

“We’re thrilled to team up with Tuum and help banks break out of the legacy debt management rut,” Flexys CEO James Hill said. “With our integrated platforms, lenders can ditch inefficient processes in favor of frictionless digital experiences that genuinely support customers when they need it most.”

U.K.-based Flexys offers state-of-the-art debt management solutions that enable financial institutions to automate and digitize their customer interactions. The company’s flagship offering, Control+, is a cloud-native, real-time, “intelligent debt resolution” platform that provides enterprise-grade collections functionality from digital self-serve to agent management and recoveries. Founded in 2016, Flexys began this year partnering with another Finovate alum, Thought Machine, which integrated Flexys’ Control+ platform into its core banking solution, Vault Core.

Tuum made its Finovate debut at FinovateEurope 2024, winning Best of Show in its demonstration of its modular, cloud-native, API-first banking platform. In the months since then, the company has forged partnerships with Islamic fintech solution provider DDCAP Group, digital banking and wealth management firm CREALOGIX, and KYB/KYC automation solutions company TransactionLink. In June, Tuum announced a strategic partnership with open banking company Ozone API. The union will help Tuum’s bank and financial institution customers comply with open banking regulations.

“Our collaboration with Tuum marks a new chapter for open banking and finance globally,” said James Bushby, Ozone API GM for Europe and Global Partnership Lead. “Our combined strengths will enable financial institutions to tackle compliance challenges while harnessing the immense opportunities of open banking.”

Founded in 2019, Tuum has raised more than $48 million in funding according to Crunchbase. In March, the company announced that Citi Ventures has become a strategic investor in the firm as a follow-on to its Series B round.

Photo by micheile henderson on Unsplash

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The Evolution of the Customer Experience Discussion in Fintech

The Evolution of the Customer Experience Discussion in Fintech
By Julie Muhn (@julieschicktanz) Posted on
Categories: Streamly

The conversation around customer experience in financial services pre-dates fintech. And while the topic surged after the great digitalization of services took place in 2020, conversation about customer experience in banking and fintech has once again slowed.

This regression is taking place not because we’ve perfected the customer experience or because the topic is no longer relevant. Rather, it is because other topics, like the inclusion of GenAI or the consideration of multiple, new regulations have taken the spotlight. These two factors, however, are contributing to a change in how we discuss customer experience in banking and fintech. That’s because we are now leveraging GenAI tools to use data analytics and behavioral insights to respond to and anticipate customer needs. Regulatory compliance factors, such as new privacy acts, have also caused conversations around the customer experience to mature.

At FinovateSpring earlier this year, we spoke with multiple experts to better comprehend how the conversation around the customer experience has evolved, to grasp where we are now, and to understand where the concept is headed in the future.

LeanData’s Matt Lyman on LeanData’s approach to transforming CRM in financial services

Next Step’s Shirin Oreizy on unlocking behavioral insights in financial services marketing

Beyond the Arc’s Steven Ramirez on revolutionizing customer experience with AI and embedded finance

SVB’s Christopher Hollins on personalizing the banking experience

EMARKETER’s Tiffani Montez on BaaS in financial services

Photo by Jon Tyson on Unsplash

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Monzo Unveils Unique Fraud Controls

Monzo Unveils Unique Fraud Controls
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Monzo is implementing new security controls to limit fraud occurring from stolen devices.
  • In order to transfer funds over a user-designated amount, users can implement one of three security controls, including authorizing funds from a specific geolocation, asking a friend or a family to confirm the transfer, or photographing a printed QR code.
  • The new controls will be implemented in addition to Monzo’s biometric and PIN authentication fraud checks.

U.K.-based digital banking platform Monzo announced some new security controls today. Writing in the company’s online community forum, representatives from the Monzo’s product security team unveiled a new security feature and three new, user-imposed controls to further protect consumers.

“We wanted to tell you about some new controls we’ve been working on that we’ll be launching soon,” the team said. “The security feature will let you add an extra layer of protection on payments and pot withdrawals over a daily allowance – to help stop fraudsters in their tracks, even if they get hold of your phone.”

Monzo built the new security feature in light of the fact that many users manage their financial lives on their phones, and devices are often lost or stolen. According to the BBC, one mobile phone is stolen every six minutes in London.

The new, optional security feature will allow users to set up daily allowances for sending bank transfers and withdrawing money from an Instant Access Savings Pot. If users want to move money that amounts to over their daily allowance, they will undergo an extra security check that will be comprised of one of three suggested controls. The controls will be implemented in addition to Monzo’s biometric and PIN authentication fraud checks.

The three new controls include:

  • Known locations
    Users choose a specific location from which they plan to send large sums . Monzo recommends users use their home, office, or any location that fraudsters may not be able to access.
  • Trusted contacts
    Users will ask a close friend or family member who also uses Monzo to double check bank transfers and savings withdrawals that total more than the user’s daily allowance. The user will need to consent to their selected friend or family member seeing some details about their funds transfer. After consent is received, Monzo will ask the friend or family member to confirm the user’s identity and verify that it looks safe by calling the user.
  • Secret QR codes
    Monzo will email the user a confidential QR code to print out and keep in a safe digital location, or store digitally on a stationary device. The QR code includes a high-security password that only works with their account and does not include any personal information.

While users will only need to use one of these methods to move money over their daily allowance, Monzo is requesting that users set up at least two of these three controls so that they have a backup. In the event a user cannot pass any of the three extra security controls, they will still be able to make the payment and access their money by confirming their identity with a short selfie video.

Users will also be subject to additional security checks in the event they want to change their controls or modify their allowance amount.

“Our aim with these new controls is to create an experience that’s both secure and simple – so we wanted to delve deeper into how we approached the design and product development process,” the security team explained. “We had to think carefully about how to add a new layer of (optional) friction over our existing security measures, to help stop fraudsters and reassure customers. While still making sure people can make payments and move money in a way that’s easy to use and convenient.”

While these extra controls add a necessary layer of fraud protection, they also add a considerable amount of friction for users. I can’t imagine asking a friend or family member to take time out of their day for a call in order to get their permission to use my own money. I’d rather default to Monzo’s fail-safe option– confirming my identity with a selfie video. That said, the fraud controls could come in handy for limiting very large transfers or for putting funds on hold when traveling.

Photo by Fernando Arcos

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Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News
By Julie Muhn (@julieschicktanz) Posted on
Categories: Fintech Rundown

We’ve made it to the halfway mark of 2024, which leaves us six months to finish off our 2024 initiatives. While the news usually slows down in July, however, some of the drama between banks and regulators is heating up. Stay tuned to read this week’s news as we post updates and evolutions.

Wealth management

BlackRock to buy U.K. data group Preqin for $3.2 billion.

Robinhood acquires AI-driven investment-advice platform Pluto.

intelliflo redblack named WealthTech Provider of the Year by InvestmentNews.

Payments

Comfi secures $5 million debt facility to expedite BNPL plans.

Conotoxia adds the next currencies, HUF, RON and AED, to its multi-currency cards.

Wise customers may be impacted by Evolve Bank & Trust data breach.

Fraud and identity management

KarmaCheck raises $45 million.

Evolve Bank & Trust hit by ransomware attack, confirms customer data stolen.

Digital banking

Nubank acquires Hyperplane to accelerate AI-first strategy.

Flybits partners with Logicom Solutions.

Plaid has grown its enterprise customer base to over 1,000.

Revolut reaches record profit of $545 million, confident of U.K. bank license approval.

Former Backbase exec Mark Geneste joins Mambu as Chief Revenue Officer.

Bling raises $12 million to scale its family super-app.

DeFi and crypto

Coinbase sues SEC, FDIC over FOIA requests, says federal regulators trying to cut out crypto.

Paxos gains Singapore approval for stablecoin issuance, DBS to provide custody.

Banking-as-a-Service

Thread Bank receives FDIC consent order to increase BaaS oversight.

Small business finance

U.K. fintech Triver lands £2.5 million to provide working capital to SMEs.

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Sezzle Expands Loyalty Program to Canadian Users

Sezzle Expands Loyalty Program to Canadian Users
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Sezzle
  • Sezzle is expanding its Payment Streaks loyalty program to Canada.
  • The program uses a gamified approach to reward shoppers for on-time payments.
  • The program is not available in Quebec.

Just in time for Canada day (which is July 1, for those who may not celebrate), buy now, pay later (BNPL) technology provider Sezzle announced it is expanding its Payment Streaks loyalty program to users in Canada, with the exception of shoppers in Quebec.

Sezzle launched Payment Streaks in May of this year to reward consumers for consistent and timely payments. Through the gamified approach, when users consistently make their payments on time over the course of 90 days, they qualify to advance through to the next loyalty tier. The loyalty tiers offer a range of benefits to users, including entries in monthly giveaways and bonuses for friend referrals.

“Launching Payment Streaks for our Canadian users is a game-changer in promoting financial responsibility and customer satisfaction,” said Sezzle Canada GM Patrick Chan. “By turning on-time payments into a rewarding journey, we’re empowering users to manage their finances wisely while enjoying exclusive perks.”

Failed or rescheduled payments, or payments associated with refunded or canceled orders, do not qualify for streaks. Long-term financing payments and payments charged back by banks are also excluded from streaks. In the case of a failed payment, however, Sezzle allows users that resolve the issue within the same day to stay in their existing loyalty tier.

“By gamifying timely payments, we’re not only encouraging smart spending habits but also creating a more engaged community of shoppers. For merchants, this means stronger customer loyalty and trust, ultimately driving growth and success.” said Chan. “As we introduce Payment Streaks to Canadian users, we are reinforcing our commitment to shaping a future where financial empowerment is accessible to all.”

As one of the original BNPL players, Sezzle was founded in 2016. The company went public on the Australian Stock exchange in 2019 and shortly thereafter benefitted from the BNPL growth of 2020. Sezzle listed on the Nasdaq in August of 2023 and has a current market capitalization of $464 million.

Photo by Hermes Rivera on Unsplash

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Chime Acquires Salt Labs, Launches Chime Enterprise

Chime Acquires Salt Labs, Launches Chime Enterprise
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Mergers & Acquisitions
  • Chime plans to acquire Salt Labs, an employee savings and rewards program to help companies motivate their workforces.
  • Along with the acquisition, Chime is launching Chime Enterprise, a new business unit that will help Chime grow users via the employer channel.
  • Salt Labs Founder and CEO Jason Lee will lead Chime Enterprise.

Challenger bank Chime made an acquisition today that will help it expand into the enterprise arena. The San Francisco-based digital bank announced today that it has acquired Salt Labs, an employee savings and rewards program to help companies motivate their workforces.

Salt was founded in 2022 to offer enterprises a new way to incentivize their hourly employees. The company helps mitigate turnover while engaging employees by allowing workers to earn one “Salt Asset” for each hour they work. If they stay with the company for long enough, employees can exchange accumulated Salt Assets for a special purchase, college fund distribution, or an investment.

Until now, Chime has strictly offered services directly to end consumers. With the acquisition of Salt, however, Chime will make a move to acquire new users through their employers. Salt Founder and CEO and Founder of DailyPay Jason Lee will lead Chime’s new business unit, Chime Enterprise, to help Chime grow its client base via the employer channel.

“This is a one-of-a-kind opportunity for Chime to acquire an innovative employee rewards company that has key employer relationships, and a founding team that has created some of the most disruptive technology in the enterprise earned wage access space,” said Chime COO Mark Troughton. “Through this acquisition, we will aim to partner directly with employers to reach millions of consumers and introduce them to the Chime platform. We look forward to leveraging Salt Labs’ existing relationships with employers and building upon the Chime MyPay earned wage access platform to further address the needs of everyday people.”

Chime is well known in fintech for offering tools and services that cater to its low-to-middle income target market. In addition to its earned wage access tool that allows users to receive their paycheck up to two days earlier when they set up direct deposit, Chime also offers a credit-building tool and a feature that will spot users up to $200 to avoid account overdrafts.

Chime did not publicly disclose the acquisition amount. However, some sources report that the deal, which is expected to be finalized later this week, could close for as much as $173 million after Chime provides an up-front payment of $14 million.

“We’ve always believed that financial progress begins with employment and should be centered around the primary financial account,” said Lee. “We are thrilled to be part of this next stage of growth at Chime and to build Chime Enterprise alongside the incredible team at Chime.”

Photo by Jason Tuinstra on Unsplash

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Earnix Enters Strategic Collaboration with NTT DATA

Earnix Enters Strategic Collaboration with NTT DATA
By David Penn Posted on
Categories: Alumni News, Daily news, Earnix, NTT Data
  • Earnix and digital business and IT services company NTT DATA announced a new collaboration.
  • The partnership will help property and casualty insurers enhance the pricing, rating, and underwriting process, as well as increase policy personalization.
  • Israel-based Earnix made its Finovate debut at FinovateSpring 2016.

Financial services solutions provider Earnix has announced a collaboration with digital business and IT services company NTT DATA. The partnership will enable Earnix to give property and casualty insurance carriers intelligent solutions for pricing, rating, underwriting, and policy personalization. The integration, combined with NTT DATA’s pedigree in data migration, will accelerate insurers’ time to market and enhance their ability to put data to work in fostering innovation.

“We take pride in driving transformative change in the insurance industry with AI-powered solutions,” said SVP of Insurance Services at NTT DATA North America Rob Baughman. “By integrating our products and services, we help clients achieve long-term success and identify opportunities for growth.”

Earnix and NTT DATA are joining forces at a time when the international insurance analytics market is expected to grow from $11 billion, where it stood in 2022, to $35 billion by 2030, an annual rate of more than 15%. Accompanying this growth is an expectation from insurance consumers for products that are more relevant and tailored to their needs. Earnix has leveraged AI to address these preferences, enhancing the rate-making process and creating personalized experiences by incorporating real-time feedback.

“Our partnership with NTT DATA is a game changer for insurers,” Earnix Head of Business Development Ruth Fisk said. “Bringing together their powerhouse expertise in data management and pricing modernization with the strength of the Earnix platform, we can equip insurers with the insight and flexibility to respond quickly to shifting market needs.”

NTT DATA first demoed its technology on the Finovate stage at FinovateSpring 2018, and returned the following year to demo its latest innovation at FinovateFall in New York. The Tokyo, Japan-based company serves 75% of the Fortune Global 100 with business and technology services including consulting, data and AI, and industry solutions. NTT DATA also assists in the development, implementation, and management of applications, infrastructure, and connectivity.

Headquartered in Tel Aviv, Israel, and founded in 2001, Earnix made its Finovate debut at FinovateSpring 2016. In the years since, Earnix has grown into a major provider of cloud-based intelligent solutions for analytical underwriting, dynamic pricing, product personalization, and customer engagement. The company’s solution for insurers inserts a new SaaS layer into the firm’s existing tech stack, adding both intelligence and agility to the pricing, rating, and underwriting process. For banks and lenders, Earnix offers a digital decisioning solution that enables lenders to manage portfolio risk, loan profitability, origination volume, speed to market, and regulatory compliance.

With customers in more than 35 countries across six continents, Earnix has raised more than $100 million in funding from investors including Vintage Investment Partners and Israel Growth Partners. Insurance and fintech industry veteran Robin Gilthorpe joined the company as CEO in February of last year.

Photo by Haley Black

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Paytech Tyro Teams Up with StoreConnect

Paytech Tyro Teams Up with StoreConnect
By David Penn Posted on
Categories: Alumni News, Daily news, Tyro
  • Payments company Tyro has announced a new partnership with StoreConnect
  • The partnership adds integrated payments to StoreConnect POS, the first POS solution build on Salesforce for SMEs.
  • Australia-based Tyro Payments made its Finovate debut at FinovateSpring 2017.

A new partnership between paytech Tyro and StoreConnect will launch integrated payments on the first point-of-sale solution built on Salesforce. The solution, StoreConnect POS, is designed for small to medium-sized businesses and offers an e-commerce website, POS terminal, cash drawer, and receipt printer. Built on Sales Cloud, all components of StoreConnect POS fully integrate with Tyro to enable merchants to accept payments natively from within StoreConnect’s Salesforce POS.

“At Tyro, we believe nothing should get in the way of success for Australian businesses,” Tyro Payments Chief Growth Officer Deanne Bannatyne said. “We’re so thrilled to be able to work with StoreConnect to power this Australian-first innovation, to help more merchants take payments seamlessly with an exciting all-in-one POS solution.”

Bannatye noted that the integration also will enable Australian business owners who use Salesforce for CRM to benefit from deeper insights into their customers and streamlined operations. StoreConnect is available as a self-install SaaS package on the Salesforce AppExchange and is suitable for mid-market firms and non-profit organizations, as well as SMEs.

“We’ve been on a mission to build StoreConnect to be a powerful tool to help SMEs around the world to remain competitive,” StoreConnect founder and CEO Mikel Lindsaar said, “and we’ve delivered on that mission with our Point-of-Sale release here in Australia.”

Tyro made its Finovate debut at FinovateSpring 2017. Headquartered in Sydney, Australia, and founded in 2003, the company today is Australia’s largest EFTPOS provider of all Authorized Deposit-taking Institutions (ADIs) – aside from the country’s big four banks. With more than 68,000 customers throughout Australia, Tyro processed more than $34 billion in transaction value in fiscal year 2022.

The company’s partnership news with StoreConnect comes just days after the paytech announced that it has teamed up with real-time payments and loyalty platform Hello Clever. The partnership enables shoppers at more than 70,000 merchants on Tyro’s network to redeem instant cashback rewards in person and online via Hello Clever.

Tyro has raised more than $103 million from investors including Ellerston Capital and TDM Asset Management. Jonathan Davey is CEO.

Photo by Joey Csunyo on Unsplash

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Avaloq Implements OpenWealth at LGT Private Banking

Avaloq Implements OpenWealth at LGT Private Banking
By David Penn Posted on
Categories: Alumni News, Avaloq, Daily news
  • In partnership with Avaloq, Liechtenstein-based international private bank LGT has implemented a new standard to give financial intermediaries real-time access to investment positions and transaction data.
  • The new standard, OpenWealth API, was implemented in collaboration with Synpulse8, the integration specialist of Synpulse.
  • Based in Switzerland, Avaloq won Best of Show at FinovateAsia 2018.

In collaboration with Avaloq and Synpulse8, Liechtenstein-based private bank LGT has implemented a new standard that will make it easier to provide financial intermediaries with real-time access to LGT’s investment positions and transaction data. The new standard is called OpenWealth API and will help the custodian bank better serve its customer base of independent asset managers, multi-family offices, and fund companies with customized investment solutions, personal advice, and fast order processing.

“With this latest joint innovation, LGT is taking a leading role in helping to create a more interconnected financial marketplace while enhancing the value that financial intermediaries deliver for their investors,” Avaloq Chief Technology Officer Martin Büchi explained.

The partnership between Avaloq and LGT extends back nearly 20 years, when the bank first adopted Avaloq’s core banking solution, Avaloq Core. The OpenWealth implementation was conducted in partnership with technology and integration specialist Synpulse8, a division of Synpulse. Synpulse is the founder and orchestrator of the OpenWealth Association, the standardization body for OpenWealth. The standardized connectivity made possible by OpenWealth will lower operational risks for financials and empowers intermediaries to keep their platforms updated with more timely and accurate data than can be provided via daily batch processing.

“The standardized solution will ensure that our partners have access to the latest data to better serve their clients,” LGT Bank AG Executive Board member Markus Werner said. “We look forward to strengthening our long-term partnership with Avaloq in the coming years and to continuing our joint development activities for enhanced connectivity with financial intermediaries globally.”

Founded in 1985, Avaloq provides technology solutions to private banks and wealth managers, investment managers, retail and commercial banks, as well as challenger and neobanks. The Switzerland-based company won Best of Show at FinovateAsia 2018, and has since grown into an international financial services solutions provider with more than 160 clients in 35 countries and $4.4 trillion (CHF 4 trillion) in client assets managed by Avaloq software.

The company’s signature solution is Avaloq Core, a core banking solution for private banks and wealth managers. Avaloq also offers three standalone digital products lines: Avaloq Engage, Avaloq Wealth, and Avaloq Insight. Avaloq Engage helps institutions boost client engagement. Avaloq Wealth supports the entire client journey in wealth management from prospect to trusted relationship. Avaloq Insight offers technical and business users access to insightful data from their banking systems. Avaloq was acquired by Japan-based NEC Corporation in the fall of 2020.

This spring, Avaloq announced the retirement of Co-CEO Thomas Beck, with Martin Greweldinger taking over the role of Avaloq Group CEO. Beck had served as Co-CEO with Greweldinger since the spring of 2021, having joined the company in 2012.

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The Finovate Podcast: Best of Show Conversations with Bloom Credit and Kobalt Labs

The Finovate Podcast: Best of Show Conversations with Bloom Credit and Kobalt Labs
By David Penn Posted on
Categories: Bloom Credit, Kobalt Labs, Podcasting

What better way to celebrate the start of summer than with some of the latest conversations from Greg Palmer and the Finovate Podcast!

The podcast has just kicked off its series of interviews with Best of Show winners from FinovateSpring. First, Greg Palmer talked with Christian Widhalm, CEO of Bloom Credit, about building credit and creating new lending opportunities. Episode 217.

“We are an infrastructure platform that’s really leading the modernization of credit data and credit data transmission,” Widhalm said in his Finovate Podcast conversation earlier this month. “There’s a significant amount of value to be uncovered within the ecosystem right now, specifically around credit data, and that’s what Bloom has set out to do.”

Headquartered in New York City and founded in 2016, Bloom Credit is a B2B credit data infrastructure platform. The company is building the next generation of rails for “all things credit data,” including transmission and compliant storage. Bloom’s technology helps facilitate the extension of affordable credit to the millions of consumers who are either subprime borrowers or have thin/no file with major credit agencies.

Watch Bloom Credit’s Best of Show winning demo from FinovateSpring 2024.

Most recently, Greg Palmer sat down with Kalyani Ramadurgam, CEO of Kobalt Labs, to discuss third-party regulations, the rise of AI, and the broader regulatory environment for fintechs, banks, and financial services companies. Episode 219.

“We automate all things third party diligence,” Ramadurgam explained. “When I say third party diligence that usually includes everything from vendor risk assessment all the way to monitoring, as well as partner and merchant risk assessment – whether you’re a partner bank or a fintech that’s looking to do business with new entities.”

New York City-based Kobalt Labs enables FIs to accelerate and fortify compliance operations. The company’s technology also provides automatic alignment with the latest regulations in privacy, lending, money movement, BSA/AML, ACH, and more. At FinovateSpring this year, Kobalt Labs demoed its AI-powered co-pilot that streamlines this process. The company was founded in 2023.

Watch Kobalt Labs’ Best of Show winning demo from FinovateSpring 2024.

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Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News
By David Penn Posted on
Categories: BlueVine, Daily news, Finastra, Fintech Rundown, Finzly, Klarna, MasterCard, Salt Edge, Trustly, Tyro, Weekly Alumni News, Weekly News

As 2024 works its way toward halftime, we’re seeing an uptick in partnership and collaboration activity from crypto to regtech. Check back all week long for updates on the latest in fintech news.

Payments

Payment orchestration platform Gr4vy extends its partnership with open banking payments company Trustly.

Tyro Payments teams up with StoreConnect to enable integrated payments for a Salesforce-based POS solution.

Intelligent verified payouts solutions provider Verituity closes $18.8 million funding round.

MENA and Africa-based consumer fintech Pyypl to issue prepaid Visa cards from its UAE headquarters as part of a new partnership with Visa.

Clair partners with Check to seamlessly offer on-demand pay. 

Tribe Payments appoints Andrew Hocking as CEO.

Frost Bank taps Finzly to provide FedNow and RTP instant payments to its business clients and consumers.

Digital banking

Mahalo Banking introduces its latest partner: Industrial Credit Union.

Bluevine teams up with Mastercard to launch its new Small Business Cashback Mastercard.

Bank Midwest partners with Finastra to launch its new digital bank, OnePlace.bank.

Tuum expands its partnership with Amazon Web Services (AWS) to deliver its next generation core banking platform through the AWS Marketplace.

Quail Creek Bank chooses Jack Henry to stay competitive and enhance customer experience.

MoneyLion appoints Jon Kaplan as Chief Revenue Officer.

Avidia Bank partners with Q2 and Personetics to modernize its digital banking experience and strengthen engagement.

Eltropy announces key enhancements to unified conversations platform.

Fraud and Identity management

Risk-decisioning software provider Provenir launches onboarding fraud solution.

Email address intelligence firm AtData forges strategic partnership with unified identity platform Dodgeball.

DataVisor enhances multi-tenancy capabilities for scalable, secure, and flexible fraud and AML solutions.

E-Commerce

Klarna divests its Klarna Checkout (KCO) division for $520 million.

Regtech

E-document management platform A-Cube API announces collaboration with Salt Edge to facilitate compliant document digitization.

DeFi

Decentralized finance (DeFi) platform 1inch partners with Web3 security provider Blockaid.

Embedded finance

Cotribute, an embedded fintech platform serving credit unions, partners with APCU and Center Parc Credit Union to launch an automated digital account opening solution.

Embedded finance platform for technology purchases Gynger raises $20 million in a Series A round led by PayPal Ventures.

Banking-as-a-Service

Payments and financial solutions provider Finzly partners with Frost Bank to bring FedNow and RTP Instant Payments to business and retail customers.

Egyptian Banking-as-a-Service startup Connect Money secures $8 million.

Lending

USMI names Enact MI President and CEO Rohit Gupta as Chair of the Board.

Conotoxia makes loan applications and processing available in its mobile app.

Small business finance

Airwallex integrates with Intuit QuickBooks to provide seamless multicurrency reporting.

Photo by Nubia Navarro (nubikini)

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Finovate Global Mexico: A Fundraising Unicorn and Open Finance’s Contribution to Financial Inclusion

Finovate Global Mexico: A Fundraising Unicorn and Open Finance’s Contribution to Financial Inclusion
By David Penn Posted on
Categories: Alumni News, Finovate Global, Refine Intelligence

This week’s edition of Finovate Global looks at recent fintech developments in Mexico.

Mexican digital payments and commerce enablement platform Clip announced a major investment this week. The company, which offers a suite of payments and other financial services solutions to small and medium-sized businesses in Mexico, has raised $100 million in new funding. The capital came courtesy of investment funds managed by Morgan Stanley Tactical Value and an unnamed West Coast mutual fund manager.

In a statement, the company noted that the funds raised value the company “in line” with the company’s Series D round from 2021. That round, led by SoftBank Latin America Fund and Viking Global Investors, added $250 million to Clip’s coffers and gave the Mexican fintech a valuation of “nearly $2 billion.”

Clip Founder and CEO Adolfo Babatz praised this week’s investment as “a testament to Clip’s opportunity to continue to lead the digital transformation of Mexico’s commerce ecosystem.” Babatz continued, “More broadly, (the investment) provides even further validation of our mission to open access to digital payments, financial services, and technology solutions to SMBs in the country. We are excited to leverage this financing round to continue to expand and strengthen our offerings to empower more stakeholders across Mexico’s economy.”

With offices in both Mexico City and Buenos Aires, Argentina, Clip offers a range of solutions to enable SMBs to accept digital payments, sell goods and services online, secure financing, and streamline their operations. The company will use the new capital to accelerate product development and support its efforts to leverage technology to enhance financial inclusion in Mexico. Clip was founded in 2012.

Speaking of financial inclusion in Mexico, Latin American open finance platform Belvo and Citibanamex, the second largest bank in the country, have forged a new partnership designed to put open finance to work in bringing credit access to the unbanked.

Via the collaboration, Citibanamex will extend credit and credit card options to applicants without credit histories. Instead of traditional underwriting, the bank will review factors such as outstanding debt levels and the number of credit applications outstanding, as well as leverage Belvo’s open finance technology to secure income verification for applicants whose data is otherwise difficult to retrieve.

“At Citibanamex, we are continuously seeking financial inclusion solutions to facilitate access to banking products for individuals who have not been able to benefit from current solutions,” Citibanamex Director of Digital Business Development Miguel Lavalle said. “With this new functionality, it will be easier for our customers to verify their income, making credit opening processes more agile.”

Belvo’s open finance and payments platform helps financial institutions and their customers benefit from user-permissioned, secure data sharing. The platform validates employment histories, as recorded by employers, to the Mexican Social Security Institute (IMSS). This enables banks, fintechs, and financial services companies to process financial data and initiate payments directly from users’s accounts.

“This is pioneering and exciting work, aligned with our mission to help financial innovators create new, more efficient, and inclusive experiences for their users,” Belvo General Director, Mexico, Federica Gregorini said. “We are excited to see how financial entities in Mexico are betting on open finance models due to their positive impact on reducing the gap in access to financial services.”

Headquartered in Mexico City, Belvo was founded in 2019. Last month, the company launched its employment data aggregation solution in Colombia. The launch followed Belvo’s partnership with Colombian digital wallet Nequi, a move considered to be a significant advance for the cause of user-permissioned, secure data sharing.

“This connection via API is just the first of many other integrations that will come soon, which portends a promising future in the development of Open Finance in Colombia and in the region,” Belvo’s General Director in Colombia, David Ballesteros, said.

Here is our look at fintech innovation around the world.

Latin America and the Caribbean

  • Uruguayan cross-border payment platform dLocal forged a partnership with Lithuanian gaming marketplace Eneba.
  • Brazil-based fintech Celcoin raised $125 million in funding in a round led by Summit Partners.
  • PayGoal, a fintech based in Argentina, teamed up with Paraguayan acquirer Bancard to launch contactless payments solution Tokefon in Paraguay.

Asia-Pacific

  • Open finance technology provider Brankas and Global Finteq forged a strategic partnership to launch Lending-as-a-Service (LaaS) platforms in the Philippines.
  • South Korean fintech Travel Wallet secured $10 million in funding from U.S.-based VC firm Lightspeed Venture Partners.
  • Japan’s Softbank entered a strategic partnership with Gen AI search startup Perplexity.

Sub-Saharan Africa

  • African paytech Flutterwave announced plans to build a cyber crime research center in Nigeria.
  • South African fintech Ukheshe rebranded as EFT Corporation.
  • Ethiopia’s cabinet approved a legal framework for CBDCs.

Central and Eastern Europe

  • German corporate card platform Pliant inked a partnership with Commerzbank
  • Lithuanian regtech iDenfy launched its AI-enabled Customer Risk Assessment solution.
  • Tietoevry Banking expanded its card personalization services in Riga, Latvia.

Middle East and Northern Africa

  • Courtesy of a partnership with Revolut, UAE-based fintech GTN will offer bond trading to EEA customers via the Revolut app.
  • Israel-based Refine Intelligence unveiled its new check fraud prevention solution.
  • Innovation Village profiled Egyptian wealth management fintech Bokra.

Central and Southern Asia

  • India’s Pine Labs is considering a $1 billion IPO.
  • The Economic and Social Commission for Asia and the Pacific (ESCAP) profiled women-founded Nepal-based fintech Aloi.
  • TBC Bank Uzbekistan announces a $10 million line of credit from Switzerland’s responsAbility Investments AG.

Photo by Pixabay

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