Ondot Brings Card Control Technology to PSCU

Ondot Brings Card Control Technology to PSCU
By David Penn Posted on
Categories: Ondot

The premier credit union services organization in the U.S., PSCU, has teamed up with mobile payments innovator Ondot to enable its members to add comprehensive card alerts and controls to their offerings. The solution adds to PSCU’s current card alerts offering and can be readily integrated into mobile apps, online account management apps, or delivered via PSCU’s digital experience platform.

“Members of our Owner credit unions will now have the ability to easily transact with their own card: (turn it) on and off, set spending limits, even create real-time alerts, all to ensure they can seamlessly manage their finances,” VP of Product Management for PSCU, Jeremiah Lotz said. “This is one of the many exciting developments in our mobile solution that our Owners can expect to see in the coming months.”

Ondot’s card alerts and controls technology has been credited with reducing fraud losses, including a more than 50% reduction in the number of fraud attempts. The solution also lowers the call volume to contact center representatives, and helps boost both card usage and top-of-wallet movement thanks to newly empowered and engaged members and customers.

“Mobile card control services are no longer an option to remain competitive and provide the highest level of member experience,” Ondot CEO Vaduvur Bharghavan said. “We are excited to partner with a CUSO, leveraging technology to ensure its Owner credit unions have the ability to deliver seamless and secure card management options to provide personalized and engaging card-based payment experiences.”

The card alerts and controls feature includes:

  • Geolocation-enabled alerts. Allow or restrict transactions beyond the cardholder’s current location.
  • Lock/unlock switch. Control access to and use of individual cards.
  • Enable/disable transaction types: Limit use of card to specific transactions such as in-store, ATM, and eCommerce.
  • Enable/disable merchant types. Limit use of card to specific kinds of merchants such as department stores, entertainment venues, and hospitality.
  • Threshold controls. Set specific transaction amounts or monthly spending limits.
  • Transaction type alerts. Receive notice of transaction merchant types (ATM, in-store, eCommerce) and transaction categories (restaurant, gas, travel)

Founded in 2011 and headquartered in Santa Clara, California, Ondot demonstrated its Digital Card Mobile app at FinovateSpring 2018. Earlier this year, the company also participated in our inaugural FinovateMiddleEast 2018, demonstrating its Card Control technology and winning Best of Show honors.

Last month, the company introduced its digital card services platform, which gives card issuers full digital card lifecycle management from initial invitation through secure payments. Ondot announced in May that more than 3,000 FIs are offering mobile card controls powered by its technology.

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Hydrogen Unveils FINDI Consortium to Boost Support for Public Blockchains

Hydrogen Unveils FINDI Consortium to Boost Support for Public Blockchains
By David Penn Posted on
Categories: Hydrogen

 

One month after launching Hydro, a blockchain-based security and identity management mobile app, development platform Hydrogen has introduced a new entity. The Financial Industry Decentralization Initiative (FINDI), unveiled this week, will “facilitate a more open, transparent, and decentralized global financial system” – all powered by public blockchains.

The goal of the consortium is to pave the way for Web 3.0, according to Hydrogen co-founders Michael and Matthew Kane. They see public blockchains as the ideal vehicle to ensure the kind of openness, transparency, and user controls that made blockchain technology so attractive in the first place. FINDI serves as an alternative to what Mike Kane referred to as “an aggressive campaign from private blockchain consortiums” that threatens to leave “billions around the globe” unable to take advantage of the benefits of what he called “the blockchain revolution.” This includes the estimated two billion people around the world who are among the unbanked.

“Private blockchain is an oxymoron and centralized financial security is obsolete, as we have seen with recent hacks of Equifax, BMO, Coinrail, Banco, and Bithumb,” Kane said. “Together the members of FINDI can change the financial paradigm by leveraging public blockchains.”

Hydrogen co-founder Michael Kane demonstrating the company’s platform at FinovateEurope 2018.

Membership in FINDI is free, and the consortium welcomes financial professionals, startups, consultants, academics, and governments. With a focus on public blockchains, the consortium is both chain- and protocol-agnostic, and will support joint research and product development, host symposia, and provide industry consulting. In a statement, FINDI reported that its members oversee more than $1 trillion in assets, and projected having more than 100 members in its first year. Among FINDI’s initial associate members are fellow Finovate alum Wipro, the Dubai International Finance Center (DIFC), Natixis Investment Managers, and Principal Financial Group.

Headquartered in New York City, Hydrogen demonstrated its platform at FinovateEurope 2018. The company’s technology enables developers to quickly build advanced fintech solutions to help consumers save, invest, buy insurance, and better manage their financial lives. Hydrogen is also responsible for developing the Hydro Blockchain, a public ledger for financial services, and IonAI, a next generation machine learning technology also geared to the financial services market.

Last month, Hydrogen was honored by the Fintech Awards Luxembourg 2018, sponsored by KPMG Luxembourg and the Luxembourg House of Financial Technology. The company picked up €50,000 in prize money and will receive four months of hosting at Luxembourg’s co-working space, Technoport. Hydrogen was founded in 2017.

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Finovate Alumni News

By David Penn Posted on
Categories: AI Foundry, AlphaPoint, Hydrogen, Jscrambler, Mortgage Cadence, Ondot, Tinkoff Credit Systems

On Finovate.com

  • Onfido Helps TransferGo Onboard New Users Faster.
  • Hydrogen Unveils FINDI Consortium to Boost Support for Public Blockchains.
  • Ondot Brings Card Control Technology to PSCU.

Around the web

  • AI Foundry teams up with ECM software provider MTS Software Solutions.
  • Joint solution between Jscrambler and Intertrust to provide protection for mobile and JavaScript apps.
  • Home Bank implements Loan Fulfillment Center (LFC) from Mortgage Cadence.
  • Tinkoff Bank begins offering loans to SMEs.
  • AlphaPoint hires Srikant Manda as Chief Information Security 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.

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Onfido Helps TransferGo Onboard New Users Faster

Onfido Helps TransferGo Onboard New Users Faster
By David Penn Posted on
Categories: Onfido

Identity verification specialist Onfido will work with international remittance specialist TransferGo to accelerate the company’s onboarding process. With more than 650,000 users and adding 1,000 new customers a day, TransferGo will leverage Onfido’s machine learning-based technology as it brings new users to its platform during its global expansion.

“Onfido enables us to deliver the swift service our customers expect, without compromising on security,” TransferGo CEO Daumantas Dvilinskas said. “Their risk-based approach means we can confidently verify our users, and don’t have to add unnecessary friction where it’s not needed.” Dvilinskas called the company’s partnership with Onfido “imperative to our international growth.”

Onfido’s automated identity verification technology will make it that much easier for TransferGo to facilitate money transfers across borders for new customers. All TransferGo’s users need to do is take a selfie and present a photo of their identity document. Onfido’s technology compares the two images to ensure they are identical, and cross-references the customer’s identity against international sanctions and watch lists.

“As a RegTech, we know how critical a smooth, secure and speedy onboarding process is for users,” Onfido CEO Husayn Kassai added. “(We) look forward to helping TransferGo deliver that to new global markets and across new products.”

Onfido was founded in 2012. The company made its Finovate debut earlier this year, demonstrating its Facial Check with Video technology at FinovateEurope 2018. Featured in Gartner’s Cool Vendors in AI for Banking and Investment Services report for 2018, Onfido partnered with Claim Technology earlier this month and, last month, teamed up with LendInvest to help the company enhance its due diligence process.

Named one of the 100 hottest startups in Europe by WiredUK, Onfido also announced recently that it would secure drivers for India’s largest ride share company, Zoomcar. Additional partnerships forged this year include agreements with HBUS, the strategic partner of cryptocurrency exchange, Huobi; as well as with P2P ride sharing firm, Snappcar, and bitcoin exchange, Bitstamp.

Onfido has raised $60.3 million in funding. The company’s investors include Idinvest Partners (acquired by Eurazeo); Wellington Partners, and Crane Venture Partners.

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Q2 To Acquire Cloud Lending Solutions

Q2 To Acquire Cloud Lending Solutions
By David Penn Posted on
Categories: Cloud Lending Solutions, Q2 Holdings, Q2ebanking

Digital banking solutions provider for community-based FIs, Q2 Holdings has announced an agreement to acquire fellow Finovate alum, Cloud Lending Solutions. Terms of the deal were not immediately disclosed, though the transaction has been approved by the boards of directors for both companies.

“By acquiring Cloud Lending, we will be able to help our community and regional financial institutions more effectively manage and grow their lending portfolios – their fundamental income-generating activity,” Q2 CEO Matt Flake explained in a statement. “There’s a substantial market opportunity for digital lending, and the addition of Cloud Lending’s talented team and next-generation technology solutions will help Q2 expand our footprint in existing markets, as well as enter new ones.”

Cloud Lending provides an end-to-end lending solution built natively on Salesforce.com. The platform enables lenders to conduct origination, underwriting, servicing, collections, and reporting activities. In joining with Q2, Cloud Lending Solutions will be able to leverage the scale, infrastructure, and resources of its larger acquirer.

“This partnership means more lenders will provide greater access to credit for more people and businesses across the globe,” Cloud Lending CEO Snehal Fulzele said. “Cloud Lending’s team members are excited to partner with Q2 and to continue delivering on our proven track record of innovation in digital lending and leasing.”

Cloud Lending demonstrated its CL Exchange offering at FinovateSpring 2015. CL Exchange enables online marketplaces and lenders to exchange business and consumer loan applications in order to build the most appropriate loan portfolios for their businesses. Cloud Lending was founded in 2012, and is based in San Mateo, California. Heading into the acquisition announcement, the company had raised more than $14 million from investors including Cota Capital and SF Capital Group.

Headquartered in Austin, Texas, Q2 is a leading cloud-based digital banking solutions provider. Delivering actionable data insights, and equipped with open development tools, Q2’s platform helps FIs enhance and improve the customer experience, while becoming more efficient and growing faster. Broadway Bank, Inwood National Bank, and First Financial Bank are just a few of the company’s FI clients who have leveraged Q2 technology to grow assets, improve marketing campaigns, and increase the number of online users.

Q2 demonstrated its Biller Direct solution at FinovateSpring 2018. The technology benefits consumers by enabling them to aggregate their bills and pay them with a debit or credit card. At the same time, FIs benefit from the interchange revenue generated from card-based bill pay. Also this spring, Q2 – working with StoneCastle Partners – announced a deal with MoneyLion to help the New York-based fintech launch deposit accounts and debit cards. In February, Q2 inked a multiyear partnership with financial services platform, Acorns, which will leverage the company’s Q2 Open API portfolio – launched last year – to deliver new services to its more than three million customers.

Trading on the New York Stock Exchange under the ticker “QTWO,” Q2 has a market capitalization of $2 billion. The company was founded in 2004.

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Dynamics’ Battery-Powered Cards Hit Japan

Dynamics’ Battery-Powered Cards Hit Japan
By Julie Muhn (@julieschicktanz) Posted on
Categories: Dynamics

Payment technology company Dynamics announced today it has introduced its battery-powered, interactive debit and cash cards to the Japanese market. The move comes via a partnership with GMO Aozora Net Bank.

The Tokyo-based bank is a technology-focused bank aimed to help clients better manage their money. Offering the Dynamics card, which features a touch keypad and digital display, will further GMO Aozora Net Bank’s technology-first reputation.

The keypad and digital display work together to secure the card by requiring the user to enter a passcode to activate the card for use. If the passcode is correct, the card number appears in the display screen on the card. Using the keypad, the user selects whether they want the card to act as a debit or cash card. Once it is activated, they can swipe, tap, use the mag stripe, or contact/contactless EMV chip to make a payment at a traditional payment terminal; no special infrastructure is required.

In the press release, Dynamics CEO Jeffrey Mullen said, “Through this new card, we shall provide new convenience and security to the Japanese consumer, and together with GMO Aozora Net Bank we will deliver further value into the future.”

Headquartered in Pennsylvania, Dynamics maintains APAC headquarters in Singapore, LATAM headquarters in Brazil, and EMEA headquarters in New York. The company is partnered with financial institutions in Europe, the U.S., and Asia for card distribution. Dynamics also maintains a processing partnership with a major Canadian financial institution, and a mobile payment partnership with a major mobile handset carrier in Korea.

Dynamics has won Best of Show eight times since its first Finovate appearance in 2010. At its most recent demo at FinovateSpring 2018, the company showed off its Wallet Card, a network-approved payment card that uses Sprint’s wireless network and boasts a 65,000 pixel display that depicts all cardholder information.

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A Peek at FinovateFall in Full Force

A Peek at FinovateFall in Full Force
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinovateFall 2018, FinovateFall 2018 Sneak Peek

We may have reached peak summer heat, but it’s time to leave vacation-mode behind and start preparing for FinovateFall, which is coming up next month on September 24 through 27* at the Marriott Marquis Times Square in New York.

Last month, we announced the 80 presenting companies that will demo their new technologies and this month we’re finalizing the agenda for the discussion day that will take place the day after the demos. Register today to secure special discounts.

Your sneak peek into the demos

Now that the groundwork has been laid, the real fun begins. Starting next week, we’ll take a company-by-company look at each upcoming demo via our Sneak Peek series. In the weeks leading up to FinovateFall, we’ll reveal what each company plans to demo and why it’s worth paying attention to.

The blog will also highlight notable speakers, keynote addresses, and discussion day panel highlights in the coming weeks.

For more details on FinovateFall, view the list of demoing companies, check out the full speaker lineup, and plan your visit. Have questions? Send us your inquiry and we’ll respond as soon as possible.

*The general conference will take place on September 24 through 26. We’re hosting a separate summit session, not covered with a general admission ticket, that will take place on September 27.

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Finovate Alumni News

By David Penn Posted on
Categories: App Annie, Cloud Lending Solutions, Meniga, On Deck Capital, Ondot Systems, Outsystems, Q2, Temenos, Tuition.io

On Finovate.com

  • Dynamics’ Battery-Powered Cards Hit Japan.
  • Q2 to Acquire Cloud Lending Solutions.
  • Onfido Helps TransferGo Onboard New Users Faster.

Around the web

  • OnDeck reports record net income for second quarter, credits asset growth and margin expansion.
  • Outsystems announces record-breaking quarter across all key business metrics, including a 63% gain in annual recurring revenue for Q2.
  • Varo Money to deploy Temenos’ T24 core banking system.
  • Ondot partners with PSCU, the premier payments credit union service organization to provide its card alerts and controls technology.
  • Tuition.io partners with Carhartt to help employees pay down student debt.
  • App Annie selected for JMP’s Hot 100 Best Privately Held Software Companies of 2018.

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.

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Behalf Brings in Funding from Visa

Behalf Brings in Funding from Visa
By Julie Muhn (@julieschicktanz) Posted on
Categories: Behalf, Funding, VISA

Alternative small business lending platform Behalf has benefitted from its ties with Visa this week. The New York and Israeli-based company announced it landed an undisclosed amount of funding from the payments giant, marking Visa’s first investment in an Israeli company.

The investment will be added to Behalf’s previous total funding of $306 million in combined debt and equity. As part of today’s deal, Visa will have access to Behalf’s small business clients to market its tokenized Visa Virtual Card, a payment solution that offers businesses instant financing for business purchases. Visa will begin marketing the card in the U.S. and expand to more markets later this year.

“Our network of B2B merchants can fit Behalf seamlessly into their eCommerce flow, receive payment immediately and provide their business customers with more buying power and flexible payment options at checkout,” said Benjy Feinberg, Behalf CEO. “We are proud to partner with Visa with the goal of making purchases easier.”

The partnership is part of Visa’s strategy to promote its products through collaborations with startups and fits with the company’s commitment to invest up to $100 million in fintechs. Shahar Friedman, acting general manager for Visa in Israel, described small businesses as being “the backbone” of the global economy. “This partnership is a result of a close collaboration between the Visa Innovation Studio Tel Aviv and the dynamic Israeli start-up ecosystem to bring the power of the VisaNet global network to promising young companies in Israel such as Behalf,” he added.

Founded in 2012, Behalf offers short-term purchase financing for small-to-medium-sized businesses (SMBs). Unlike other alternative SMB lenders such as Kabbage or OnDeck, Behalf does not issue funds directly to the SMB. Instead, the startup pays the small business’ vendors on the SMB’s behalf. Having flexibility in repaying their suppliers helps merchants increase their production and ultimately grow their business.

Feinberg showcased Behalf’s vendor payment platform at FinovateFall 2014. Since then, the company has partnered with FinWise bank to offer SMB clients a broader range of financing solutions and, earlier this year, secured $150 million in debt financing.

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Finicity Inks Secure Data Exchange Agreement with Capital One

Finicity Inks Secure Data Exchange Agreement with Capital One
By David Penn Posted on
Categories: Finicity

More data sharing and more security are the goals of a new secure data exchange agreement signed between Capital One Financial and real-time financial data aggregation and insights specialist Finicity. The announcement follows the company’s July data sharing agreement with USAA.

“Finicity is hyper-focused on delivering the data insights our partners need to drive their services and enable their customers to make better financial decisions,” Finicity CEO Steve Smith said. He called Capital One Financial an “excellent partner in pursuing these common goals of empowering consumers to have more access to their financial data and better manage their financial health.”

The agreement leverages Capital One’s Customer Transactions API to enable Capital One customers to securely share financial data with Finicity-supported third-party solutions and services. In addition to being able to access a broader range of resources for financial management, customers also will benefit from having increased control over how and when their data is used. The partnership with Finicity, according to Capital One, was in many ways spurred by the firm’s customers, whose demand for fintech solutions encouraged the bank’s decision.

“We know many of our customers actively use and rely on third-party services to help them manage and track their finances, and we appreciate the value these services provide,” Managing VP of Enterprise Digital Products and Data Connections at Capital One Becky Heironimus said. Customer migrations are expected to begin in the first quarter of 2019. At that time, Capital One customers will be able to connect with the financial solutions that use Finicity’s financial data API.

Finicity’s real-time financial data aggregation and insights platform provides FIs with financial management, payment initiation, and credit decisioning solutions. The company seeks to empower account owners by democratizing financial event data, improving the security of data delivery, and driving innovation by making it easier for consumers to access the fintech solutions they want most.

Founded in 1999 and based in Salt Lake City, Utah, Finicity demonstrated its Credit Decisioning solution at FinovateFall 2017. The company is also an alum of our developers conference, having presented The Frictionless Aggregation Experience at FinDEVr New York 2017.

Last month, Finicity announced a pair of new partnerships. The company integrated with SimpleNexus’ enterprise digital mortgage platform and mobile app to automate the borrower asset verification process for lenders. Finicity also integrated its asset verification technology into Cre8tech’s Lender Price Digital Lending platform. Other major partnerships this year include collaborations with digital lender Blue Sage and fellow Finovate alum Mortgage Cadence.

Awarded API World’s 2016 Finance API of the Year and named to the 2018 HousingWire Tech100, Finicity has developed more than 16,000 bank integrations. The company has raised more than $50 million in funding, and includes fellow Finovate alum Experian and Bridge Bank among its investors.

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Finovate Global: Fintech News from Around the World

By David Penn Posted on
Categories: Cryperium, Finovate Global, Infosys, Sberbank, Temenos, Worldline

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.

Middle East and Northern Africa

  • Turkey’s Albaraka Turk introduces interest-free digital banking app designed for Europe’s Muslim community.
  • National Bank of Bahrain launches digital payment and trade finance portal.
  • Ziraat Bankası KSA, a Saudi Arabian subsidiary of Turkish banking Group Ziraat, upgrades its core banking system to Temenos T24.

Central and South Asia

  • JP Morgan establishes Financial Inclusion Lab in partnership with the Indian Institute of Management Ahmedabad’s Centre for Innovation, Incubation and Entrepreneurship (CIIE).
  • India Post Payments Bank (IPPB) scheduled for August launch with core banking technology from Infosys Finacle.
  • City Bank unveils end-to-end digital supply chain finance facility in Bangladesh.

Latin America and the Caribbean

  • EBANX and Wordline partner to launch new debit card payment option for Spotify Brazil.
  • Brazil’s Zen Finance to offer $1 billion in working capital to SMEs courtesy of funding from BRL Trust and BRZ Investments. In Portuguese.
  • Crypto Insider sees a lot to like in Mexico’s fintech industry.

Asia-Pacific

  • United Overseas Bank plans digital-only bank to appeal to South East Asia’s mobile-first consumers.
  • Australian challenger bank Judo Capital raises $140 million in funding.
  • Singapore Ministry of Education launches IBF Careers Connect to help train and retrain financial professionals.

Sub-Saharan Africa

  • Central Bank of Nigeria (CBN) develops risk-based cyber security framework for banks and PSPs.
  • Absa Group of South Africa launches WhatsApp banking.
  • Nigeria’s Paylater reaches one million download milestone for its financial services app.
  • Pan-African banking group Ecobank names finalists for its annual fintech challenge competition.

Central and Eastern Europe

  • Cryperium Releases Crypto-Fiat Solution.
  • Sberbank Group CTO David Rafalovsky selected to lead Sberbank’s Technology Block.
  • IBM Ukraine wins bid to develop information technology for NJSC Naftogaz Ukrainy.
  • Google Pay arrives in Croatia, making it the third CEE country to gain support for the technology.

Top image designed by Freepik

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Finovate Alumni News

By David Penn Posted on
Categories: ACI Worldwide, Behalf, Bluefin Payment Systems, CurrencyFair, Entersekt, Five Degrees, Lendio, Onfido

On Finovate.com

Around the web

  • Dutch fintech Five Degrees purchases core banking IT systems provider, Libra.
  • QuickBridge to participate in Lendio’s turndown lending program.
  • PasswordPing announces new Chief Executive Officer, Michael Greene. See PasswordPing at FinovateFall next month.
  • Identity-as-a-service specialist Onfido forges partnership with Claim Technology.
  • Alphacomm Solutions to deploy ACI Worldwide’s UP eCommerce Payments technology.
  • CurrencyFair acquires Hong Kong-based Convoy Payments.
  • PYMNTS.com interviews Entersekt SVP of engineering, Richard Bailey.
  • Bluefin and payment service provider Anderson Zaks partner to provide Bluefin’s PCI-validated Point-to-Point Encryption (P2PE) security solution to merchants and retailers.

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.

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