Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: AlphaPoint, Coinbase, Entrust Datacard, Five Degrees, Flywire, Insuritas, Q2 Holdings, Yoyo

On Finovate.com

  • Flywire Raises $100 Million for Global Expansion.
  • Five Degrees Acquires Icelandic IT Software Company Libra.
  • Yoyo Tops One Million User Milestone.
  • Coinbase Enables European Customers to Buy Virtual Gift Cards with Crypto.

Around the web

  • The Motley Fool interviews Q2 Holdings CEO Matt Flake.
  • AlphaPoint hires Kristin Boggiano as Chief Legal Officer.
  • Entrust Datacard unveils TruCredential 7.5 software that enables tablet and mobile-based capture and issuance of ID cards.
  • America’s Credit Union partners with Insuritas to launch member owned insurance agency.

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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Flywire Raises $100 Million for Global Expansion

Flywire Raises $100 Million for Global Expansion
By Julie Muhn (@julieschicktanz) Posted on
Categories: Flywire, Funding

Global payment and receivables company Flywire closed on $100 million in funding to facilitate foreign currency payments. The Series D round brings the company’s total funding to $143 million.

The financing was led by Singapore-based Temasek. Bain Capital Ventures and F-Prime Capital also contributed. While Flywire declined to disclose its new valuation, Forbes noted that the amount is significantly higher than Flywire’s 2015 valuation of $100 million, but falls short of $1 billion.

Flywire, which is headquartered in Boston and has operations in the U.K., China, Japan, Singapore, Australia, and Spain, will use the funds to advance its technology and expand geographically. The company also plans to invest in marketing by cross-selling its existing client base to new cross-border payment solutions for healthcare and business.

Flywire originally launched as peerTransfer in 2011, when the company set out to facilitate international tuition payments at colleges and universities. While this flagship market makes up 80% of Flywire’s revenue, the company has since rebranded and expanded to tackle international payments for healthcare and businesses. Flywire’s platform processes billions of dollars in payments every year in over 120 different local currencies, connecting more than 1,400 businesses and universities with their customers.

At FinovateSpring 2011, the company presented its original tuition payment platform. In June, Flywire partnered with UnionPay International to provide Chinese students and patients with discounted foreign exchange rates on cross-border tuition and healthcare payments. A few weeks earlier, EY named Flywire CEO Mike Massaro a finalist for Entrepreneur of the Year.

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Five Degrees Acquires Icelandic IT Software Company Libra

Five Degrees Acquires Icelandic IT Software Company Libra
By Julie Muhn (@julieschicktanz) Posted on
Categories: Five Degrees, Mergers & Acquisitions

Banking technology company Five Degrees is expanding its geographic footprint today with the acquisition of Iceland-based Libra, a core banking technology firm.

The purchase is expected to boost Amsterdam-based Five Degrees’ global footprint and will bring additional expertise in securities and loans to Five Degrees’ clients, ultimately offering a more robust digital transformation experience. The integration of Libra into Five Degrees helps the company offer banks a more efficient, less expensive way to replace their outdated core system.

Martijn Hohmann, CEO of Five Degrees, described Libra as “a very strong player” in Iceland’s financial market. He added that the integration of the two companies will help banks “transfer smoothly to ‘digital’ and to benefit from increased flexibility and reduced costs.”

Libra’s 40 employees will work alongside and collaborate with the Five Degrees workforce. The company’s CEO, Thordur Gislason, said that the acquisition enables the company to support clients with new technology, products and services. “Besides,” he added, “it creates opportunities to utilize our knowledge and experience in a larger market. We believe that our future plans have a great fit with the vision and strategy of Five Degrees.”

Founded in 2009, Five Degrees has raised a total of $11.6 million. At FinovateEurope earlier this year, the company showcased Prospery, its digital wealth management solution. Among Five Degrees’ partners are KPMG, Lexis Nexis, and Microsoft. Earlier this year, the company collaborated with BillPro to launch a cross-border banking service.

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Feedzai to Help Credorax Fight Merchant Fraud

Feedzai to Help Credorax Fight Merchant Fraud
By David Penn Posted on
Categories: Feedzai

A new partnership between financial services risk management solutions provider Feedzai and Credorax is designed to help merchants better protect themselves against fraud.

“Feedzai and Credorax will provide the best solution for merchants that need a powerful risk management and fraud prevention platform to protect their customers in a seamless way,” Feedzai CEO Nuno Sebastiao said. “With Feedzai technology backing Credorax, we are helping to keep payments safe, while ensuring real-time processing – which is especially important in a world where digital means now.”

A technology company founded in 2008 that was among the first to transition into a fully-licensed commercial bank, Credorax credits itself as the first bank designed for e-commerce. A specialist in merchant acquiring, the firm has merchant acquiring banking licenses in 32 countries in Europe.

“Credorax is proud to partner with Feedzai to market AI solutions that better safeguard merchants and their customers,” Credorax CEO Igal Rotem said. “We continue to dedicate significant resources to help solve complex issues and are confident that, working together, we will fuel growth in the digital economy.”

Founded in 2008 and headquartered in San Mateo, California, Feedzai demonstrated its Feedzai Fraud Prevention platform at FinovateEurope 2014. The company’s technology leverages Big Data technology to stop payment fraud in real-time, and uses machine learning models to reduce incidents of false alarms.

In April, Feedzai launched OpenML, an open machine learning engine to help data science teams develop tools to combat fraud. The previous month, the company announced a new head of APAC, Steve Liu, and the opening of a new office in Hong Kong. Feedzai’s platform scores $5 billion in transactions daily, with ten of the largest 25 global banks using the company’s technology.

Named to the Forbes Fintech 50 for the first time earlier this year, Feedzai has raised $82 million in funding. The company includes Data Collective, Sapphire Ventures, Citi Ventures, and Oak HC/FT among its investors.

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Switch Brings Voice Technology to its CardSavr API

Switch Brings Voice Technology to its CardSavr API
By David Penn Posted on
Categories: SWITCH

Switch CEO Chris Hopen announced today that the company’s CardSavr API will leverage natural language processing to accelerate the process of managing cards on file and getting new and renewed cards provisioned with merchants. The technology will enable cardholders to use their voice to make commands to update autopay information, add a new card to an online account, and more.

“Switch has been preparing for the convergence of voice and fintech and brings an exclusive approach with our CardSavr API that can advance the evolution of voice technology and fintech,” Switch Co-Founder and CEO Chris Hopen explained. He pointed to the growing use of natural language technology to manage online payments and conduct other financial activities, and highlighted how easy it was for financial institutions to add these technologies to their solutions. “The CardSavr API can be implemented immediately into banking apps, website, and other financial technology platforms, without changing the inherent environment,” Hopen said.

Switch’s announcement came as part of a panel discussion on fintech and voice technologies at the VOICE Summit in New Jersey.

Tailor-made for a world in which the average consumer carries more than three credit cards and an ever-growing volume of commerce is taking place online via credit card, Switch’s CardSavr API empowers card issuers to get new and re-issued cards into circulation with online merchants immediately after activation. The API builds on the company’s previous success in providing solutions for consumers to make it easier for them to manage their credit card accounts.

“Switch offers the only automation platform that can power the entire virtual ecosystem with strategic, voice-first experiences that benefit consumers,” said Weber Marketing Group CEO Mark Weber. He added that the growth of voice payments is likely to “accelerate exponentially faster than mobile payments” and would contribute to both faster profit growth for companies and less friction for consumers.

Founded in 2014 and headquartered in Seattle, Washington, Switch demonstrated its platform at FinovateSpring 2016. Last month, the company, which has raised more than $1.9 million in funding, announced that its CardSavr API could be deployed to help card issuers transition to virtual cards.

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Finovate Alumni News

By David Penn Posted on
Categories: Feedzai, Five Degrees, Flywire, Global Debt Registry, Inc., Kensho, SWITCH, Temenos, YUKKA Lab

On Finovate.com

  • Switch Brings Voice Technology to its CardSavr API.
  • Feedzai to Help Credorax Fight Merchant Fraud.
  • Five Degrees Acquires Icelandic IT Software Company Libra.
  • Flywire Raises $100 Million for Global Expansion.

Around the web

  • Global Debt Registry adds new Chief Financial Officer and new Product Director.
  • Pakistan’s Silkbank upgrades its core banking system with technology from Temenos.
  • ACI Worldwide unveils its UP eCommerce Payments API.
  • Yukka Lab selected to participate in the Swiss Kickstart Accelerator.
  • S&P Global and Kensho Technologies launch Kensho Labs.

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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Zooz Acquired by PayU in Deal Valued at More than $80 Million

Zooz Acquired by PayU in Deal Valued at More than $80 Million
By David Penn Posted on
Categories: Mergers & Acquisitions, Zooz

In an extended post at the Zooz blog, company CEO Oren Levy announced that the eight-year old global payments platform he co-founded had agreed to be acquired by PayU. Financial terms were not disclosed, but Reuters reported that the deal was valued between $80 million and $100 million.

“Although it wasn’t entirely out of the blue, I can honestly say that PayU is a natural buyer for Zooz,” Levy wrote. “It simply makes sense.” He explained that given the options of continuing to raise capital and remain independent or seek the opportunity to grow “under the umbrella of PayU. The choice was clear.”

PayU will use Zooz’s technology to provide more payment options for its merchants, and help the company expand into cross border payments markets in developing, high-growth areas. This includes building a payment infrastructure with fraud management and smart routing. With a strong presence in India, Netherlands-based PayU currently has operations in 17 markets around the world.

The acquisition of Zooz also represents a win for the company’s open platform approach that gives merchants the ability to connect with a variety of payment providers. “In the choice between building a closed walled garden and an open platform, we decided to go with the second model,” PayU CEO Laurent le Moal told The Indian Wire. “The reality is that you need to be neutral and work with everyone.”

Levy and Zooz CTO Ronen Morecki will join PayU’s leadership team. The company’s 70 employees will also become a part of PayU.

“While Zooz will continue to innovate and further disrupt the payments world,” Levy wrote,” the scale that will be introduced through the sheer number of merchants using the PayU payment solution, coupled with the huge trove of data that can accelerate our analytics and machine learning capabilities, make this an exciting opportunity that we’re eager to explore.”

Zooz demonstrated its Transforming Checkout solution at FinovateFall 2013. Based in Raanana, Israel, Zooz announced a partnership with PayU last year that combined its cross border payment expertise with PayU’s presence in emerging markets. This spring, the company launched its open-payments-platform-as-a-service solution, PaymentsOS.

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Figure Eight Collaborating with Google Cloud on Machine Learning

Figure Eight Collaborating with Google Cloud on Machine Learning
By Julie Muhn (@julieschicktanz) Posted on
Categories: Figure Eight, Google Cloud Platform

AI data enrichment platform Figure Eight (formerly known as CrowdFlower) announced a collaboration this week with Google Cloud. Through the partnership, Figure Eight will serve as the data launch partner for Google Cloud AutoML, helping AutoML customers collect and prepare data and experiment with models.

Google Cloud’s AutoML is a set of machine learning tools that help developers leverage Google’s transfer learning and Neural Architecture Search technology to train machine learning models. These tools require developers to have little knowledge of machine learning and therefore allow for fast scalability.

To simplify the process for developers, Figure Eight will offer AutoML-specific templates to simplify the process of uploading training data to AutoML, as well as consultation services and guidance for developers. With these tools and resources, AutoML customers can create training data to train, test, and improve their machine learning models.

Figure Eight already provides training data to other Google teams, such as Jigsaw; the newly formed collaboration with AutoML is an extension of those capabilities. Figure Eight CEO Robin Bordoli said that the collaboration stems from a common mission of democratizing AI. “We’re excited companies can use the Figure Eight platform to create the necessary training data to deploy computer vision machine learning models faster, more effectively and at a larger scale without having to build an internal team of machine learning experts,” said Bordoli.

Founded in 2009 as CrowdFlower, the company rebranded to Figure Eight in April to refocus on AI and machine learning opportunities. At FinovateFall 2014, the company won Best of Show for its demonstration on how its crowdsourced workforce quickly collects, cleans, and labels financial transaction data to help banks curate a better customer experience. Headquartered in California, Figure Eight has raised $58 million from firms including K9 Ventures, Industry Ventures, Trinity Ventures, and Bessemer Venture Partners.

Google Cloud presented a talk titled Journey to Cloud: First Steps, Production and Machine Learning at FinDEVr New York 2017.

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Finovate Global: Fintech News from Around the World

By David Penn Posted on
Categories: Finovate Global, Onfido, Personetics, Temenos, Trulioo, VISA

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

  • Mookh Africa, a fintech startup from Kenya that has developed a social business payments solution, wins Visa’s Sub Saharan Africa Everywhere Initiative contest.
  • Techpoint declares 2018 The Year of the Nigerian Fintech Startup.
  • Temenos taps Alexandre Menage as new Head of Sales for Africa.

Central and Eastern Europe

  • Equities.com reviews the 10 Hottest Places to Launch a Fintech Startup in Central and Eastern Europe.
  • Total Croatia News looks at money transfer startup, Aircash, which has gained 15,000 users in the first 12 months of operation.
  • Ukraine’s Financial Stability Council issues digital currency regulating document as popularity of crytocurrency trading in the country grows.

Middle East and Northern Africa

  • Salaam Gateway discusses how Dubai’s FinTech Hive supports Islamic fintech with the organization’s executive Vice President, Raja Al Mazrouei.
  • UAE-based merchant acquirer Network International introduces e-commerce platform for SMEs.
  • Daily Sabah looks at venture investment in Turkey in the first half of 2018.

Central and South Asia

  • Aurora talks with President and CEO of Telenor Bank, Shahid Mustafa about microfinance and e-commerce in Pakistan.
  • Onfido to Secure Drivers for India’s Largest Rideshare Company.
  • Fortune India interviews PayU India’s CEO Amrish Rau.

Latin America and the Caribbean

  • Incoming cohort for Startupbootcamp FinTech’s second Latin America-oriented program features fintechs from Mexico, Costa Rica, Ecuador, Chile, and Peru.
  • The Sociable profiles Microsoft-backed Imagine Lab Chile.
  • PYMNTS.com looks at how financial institutions in Latin America are coping with cyber fraud.

Asia-Pacific

  • Trulioo extends its identity and business verification service to the Philippines.
  • Personetics Scores Minority Stake Investment from United Overseas Bank.
  • Hong Kong Monetary Authority unveils Open API framework.

Top image designed by Freepik

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Finovate Alumni News

By David Penn Posted on
Categories: ACI Worldwide, Arxan Technologies, Currency Cloud, Figure Eight, IdentityMind Global, Infosys, Prosper, TransferTo, Zooz

On Finovate.com

  • Figure Eight (formerly CrowdFlower) Collaborating with Google Cloud on Machine Learning.
  • Zooz Acquired by PayU in Deal Valued at More than $80 Million.

Around the web

  • Currencycloud announces new CRO Nick Cheetham.
  • Rabobank to leverage ACI Worldwide’s ACI Issuer to manage and modernize its card portfolio business.
  • TransferTo teams up with distributed, open-source blockchain platform, Stellar.org to make cross border money transfers easier.
  • Infosys Finacle to power Ayeyarwaddy Farmers Development Bank’s digital transformation.
  • The Silicon Review names Arxan and IdentityMind Global among 50 best companies to watch in 2018.
  • Prosper moves from providing investors estimated return data to historical return data.

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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nCino Partners with Secure Trust Bank

nCino Partners with Secure Trust Bank
By David Penn Posted on
Categories: nCino

Secure Trust Bank (STB), a U.K.-based commercial and retail challenger bank with $2.5 billion (£1.9 billion) in assets, will leverage the nCino Bank Operating System to digitize operations and improve the customer experience in its real estate finance (REF) business.

STB’s real estate finance business has developed a $763 million (£581 million) loan book in the four years since it was launched. In addition to looking for a platform that would support this growth and increase operational efficiency, Secure Trust Bank sought a fintech partner with a track record of successfully working with financial institutions.

“It was important to us that our operating platform provider was able to demonstrate both a depth and breadth of banking knowledge and offer solutions for real industry issues, not just technological ones,” REF Head of Operations, Stephen Marrow, said. He credited nCino for living up to its “built by bankers, for bankers” mantra.

“With nCino’s Bank Operating System, STB will be able to reduce manual processes in favor of increased automation, and provide new levels of productivity, transparency, and faster loan turnaround times,” nCino Managing Director – International, Pullen Daniel said. “Combined, these efficiencies will lead to stronger customer relationships and a better experience for customers and bank employees alike. We are proud to be on this growth journey together with STB.”

Built on the Salesforce platform, nCino’s Bank Operating System features customer relationship management (CRM), loan origination, deposit account opening, workflow, enterprise content management, business process management (BPM), digital engagement, and instant reporting in a single cloud-based environment. In addition to improving the quality and access of data across the customer experience, nCino’s platform provides an out-of-the-box functionality that will make it easier and quicker for Secure Trust Bank to tailor the platform to its specific business needs.

Wilmington, North Carolina-based nCino demonstrated its Bank Operating System at FinovateEurope 2017. The company has had a busy 2018 – partnering with Santander earlier this month, teaming up with Tech Qualled in May to help veterans land jobs in fintech, and working with Banesco USA in April to enhance the company’s commercial lending process.

TD Bank announced that it would deploy nCino’s Bank Operating System in March, the same month the company reported the Yorkshire Building Society would also adopt nCino’s technology. The company began the year picking up an investment from Salesforce Ventures that took its total funding beyond $81 million. Pierre Naudé is CEO.

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Dynasty Financial Partners Teams Up with Cash Management Innovator MaxMyInterest

Dynasty Financial Partners Teams Up with Cash Management Innovator MaxMyInterest
By David Penn Posted on
Categories: MaxMyInterest

With short term interest rates perking up, opportunities for savers to make the most of their cash are all the more worth pursuing. This is one way to view the decision by Dynasty Financial Partners to add MaxMyInterest as a cash option for its network of 45+ wealth management companies.

“We are always seeking to find ways to give Dynasty’s network advisors the best and most innovative offerings in the market,” Dynasty Financial Partners Director of Investments Joseph Dursi explained. “High net worth clients typically hold a relatively large cash position and offering a new higher-rate option through Max gives our independent advisors a solution for cash that will really benefit their clients.”

A service of Six Trees Capital, MaxMyInterest provides intelligent cash management via an easy to use, automated platform. Once the customer’s checking or brokerage account is linked, Max goes to work finding the best interest rates available and automatically reallocating cash balances. Customers can track their balances, track optimization status, and access their cash directly as they would from any brick and mortar or online bank.

The solution can be linked to a customer’s primary checking account and used as a cash sweep to take advantage of the higher rates from online banks. MaxMyInterest can also be linked to a brokerage account and managed as a strategic cash reserve. Max members typically earn between 1.50% and 1.70% more on their cash balances than they would at traditional banks, picking up an average 1.78% on cash compared to the national average of 0.09%.

“Dynasty Financial Partners, as the leading platform for successful wealth management firms, seeking to operate with independence, was a perfect fit for offering Max,” Head of Business Development and Partnerships for Six Trees Capital Michael Halloran said. He noted that advisors are referring to the platform as “a fiduciary solution for cash” for the way it gives high net worth clients the ability to get higher returns on their cash while at the same time providing broader FDIC insurance coverage.

New York-based MaxMyInterest demonstrated its platform at FinovateFall 2014.  The company’s solution works with checking accounts at many of the leading banks and brokerage firms in the U.S., including Bank of America, JP Morgan Chase, Citibank, Charles Schwab, and TD Bank. MaxMyInterest is also compatible with online banks such as Ally Bank and Marcus by Goldman Sachs.

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