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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
In the U.S., the tax deadline kicks off the week, but don’t let that get you down! Sit back, relax, and catch up on some of the latest fintech news headlines. Check back for real-time updates on how the fintech landscape evolves this week.
A look at the companies demoing at FinovateSpring in San Francisco on May 21 and 22. Register today using this link and save 20%.
Deeployalty
Deeployalty digitalizes paper receipts and plastic loyalty cards by integrating bank processing on one side and merchant CRMs on the other.
Features
Helps transition from paper receipts to digital receipts
Adds seamless loyalty features to banking applications
Provides an endless source of data for ML and scoring systems
Who’s it for?
Banks and retailers.
Instarails
Instarails is an intelligent, decentralized payout network that makes cross-border payments instant, inexpensive, and inclusive for all.
Features
Provides one connection to the world’s disparate real-time payment systems
Uses a decentralized network to eliminate fraud and disputes
Delivers one platform for inclusive payments in 50+ fiat currencies
Who’s it for?
Banks, remittance companies, mobile apps, e-commerce marketplaces, payment service providers, and enterprise businesses with offshore employees, gig workers, suppliers, and vendors.
QuickFi
QuickFi is the first and only embedded finance platform in the market for secured commercial equipment lending.
Features
Embeds easily into lender or manufacturer’s website
Offers 100% digital end-to-end borrower self-service, with 24/7 access
Provides automated credit, contract structuring, business verification, and compliance
Who’s it for?
Banks, equipment manufacturers, and equipment distributors.
Sherpas
Sherpas is a generative finance platform for wealth management that optimizes operations, personalizes advice at scale, and puts client engagement on autopilot through their AI model, Nima.
Features
Extracts data straight from documents
Provides information about products, funds, and client performance
Analyzes investments, and diagnoses and secures proposals
Skyflow recently released the Skyflow LLM Data Privacy Vault, which allows financial service organizations to leverage the power of LLMs, such as GPT, while maintaining privacy and security.
Features
Utilizes LLM while maintaining privacy and security
Isolates, protects, and governs sensitive data
Improves customer experience through new technologies while protecting sensitive data
Who’s it for?
Anyone who collects sensitive data such as PII, PCI, and PHI.
The new platform will have three main components to help businesses lower costs: Payment Gateway, Surcharge Management, and Interchange Fee Optimizer.
HighRadius has more than 800 clients, including 3M, Unilever, Anheuser-Busch InBev, and others.
Treasury Management software company HighRadius announced plans late last week to launch a B2B payments platform. The new tool will help HighRadius clients facilitate global payments for their end users.
HighRadius’ B2B payments platform, which aims to improve payment processes across 100+ global payment methods, is comprised of three main products. Each product is available in HighRadius’ single, standalone platform that will help companies make it easier for their customers to disburse payments globally.
The first product, Payment Gateway, supports more than 150 currencies from eCommerce, order management, and other digital commerce channels, creating a more cost-effective B2B payment solution. Surcharge Management helps companies validate surcharge applicability and pass on interchange fees to their buyers. The solution simplifies things for clients by automatically abiding by regional regulations, which vary by state and card brand. Finally, Interchange Fee Optimizer will automatically populate any missing data and will ensure the payment adheres to pre-configured rules in order to verify that the customer receives the lowest possible interchange fees.
“Payments are a critical part of a customer’s digital experience, and 70% of organizations are not satisfied with the customer experience they offer,” said HighRadius Chief Product Officer Sayid Shabeer. “Our goal is to reduce credit card processing costs through PCI-compliant payment solutions across all digital channels. The Interchange Fee Optimizer will ensure customers offer this at the lowest possible cost.”
Texas-based HighRadius was founded in 2006 and counts 800+ clients, including 3M, Unilever, Anheuser-Busch InBev, Sanofi, Engie GBS Solutions, Kellogg Company, Danone, and Hershey’s. The company earned unicorn status in 2020 when it raised $125 million in Series B funding. Sashi Narahari is CEO.
Nine Finovate alums raised more than $113 million in Q1 of 2024. The relatively low fundraising results for the first three months of the year do reflect larger trends in fintech funding. But the fact that nearly half of the alums that raised funds in Q1 did not disclose the amounts raised tells us that the quarterly funding haul for Finovate alums was higher than the $113 million we have been able to confirm.
The biggest fundraising month of Q1 was likely January, which featured the $58 million investment secured by Digital Onboarding. Again, the high number of “amount undisclosed” investments makes comparison difficult.
Top Equity Investments from Q1 2024
Digital Onboarding: $58 million
Argyle: $30 million
Amplify Life Insurance: $16.3 million
Altro: $4 million
As noted above, Digital Onboarding pulled in the biggest investment of any Finovate alum in the first three months of the year. Also noteworthy was the $30 million raised by Argyle, a real-time income data platform that made its Finovate debut at FinovateSpring in 2022.
Here is our detail alum funding report for Q1 2024.
January: More than $58 million raised by three alums
If you are a Finovate alum that raised money in the first quarter of 2024 and do not see your company listed, please drop us a note at [email protected]. We would love to share the good news! Funding received prior to becoming an alum not included.
Embedded finance innovator mmob announced a partnership with U.K.-based fintech Satago.
The partnership will make it easier for lenders and corporations to integrate Satago’s cash flow and invoice financing solutions for SMEs.
mmob won Best of Show in its Finovate debut at FinovateEurope 2022.
Embedded finance specialist mmobhas forged a partnership with U.K.-based fintech Satago. The partnership will help lenders and corporates more easily integrate and embed Satago’s Invoice Finance and Cash Flow solution – including its 3-in-1 Working Capital solution. This is courtesy of mmob’s hyper-efficient, “single snippet of code” integration that reduces the time required to embed Satago’s technology to “mere hours.”
After it has been embedded, the solution then enables SMEs to access Satago’s Invoice Financing, Risk Insights, and Credit Control offerings via their digital channels. Automatic, periodic updates ensure that the technology scales and optimizes as the business grows and expands.
“Satago’s invoice financing and cash flow management solution is a vital tool, and we are delighted to be able to help them integrate into SME-facing platforms at speed,” mmob Founder and CEO Irfan Khan said. “Mmob’s universal API adaptor removes the barriers of time and cost for companies who want to add a new solution for their customers, so now it’s easier than ever to work with Satago.”
Satago leverages real-time data, Open Banking, and API technology to help lenders and other businesses streamline operations, increase revenues, and improve the customer experience. Its 3-in-1 Working Capital solution combines invoicing financing, risk insights, and credit control to enable lenders to offer faster financing, control credit risk, and get repaid sooner. In February, the company announced that it was joiningNayaOne’s Tech Marketplace. Founded in 2012, Satago was acquired by Oxygen Finance in 2017.
Headquartered in London and founded in 2020, mmob won Best of show in its Finovate debut at FinovateEurope 2022. At the conference, the company showed its Intelligent Partnerships Infrastructure, which enables third-party providers to leverage no-code tools to build and deploy digital customer experiences. The solution includes an Analytics Module that allows companies to analyze both user behavior and revenue to further innovate and enhance the user experience.
mmob has raised $6.2 million (€5.8 million) in funding, according to Crunchbase. The company’s financial backers include high net worth individuals, banking executives, as well as angel investors.
Need some Friday insight to carry you into the weekend? We’ve got you covered.
Today, we’re unveiling four videos featuring interviews with fintech experts. These videos provide valuable perspectives on the escalation in geopolitical risk, key tech trends revealed at FinovateEurope, and a comprehensive overview of what’s hot and what’s not in the fintech space. Whether you’re a seasoned industry professional or just curious about the latest developments, these videos offer valuable insights from some of the brightest minds in the field.
Innovative technologies are proliferating. From the renewed excitement around cryptocurrencies and blockchain technology to the challenges and opportunities of AI, individuals and organizations alike are discovering novel ways to live, learn, and earn.
Banks, financial services companies, and fintechs are no exception – which makes us all the more excited to feature futurist, digital anthropologist, and author Brian Solis as our FinovateSpring Out of the Box Keynote speaker at our upcoming fintech conference in May.
Titled The Cycle for Emerging Technologies: Which Will Really Matter to Financial Services Providers and Why?, Solis’ keynote address will encourage financial institutions to be proactive when it comes to engaging emerging technologies. Indeed, the extended title of his presentation warns: “If You’re Waiting for Someone to Tell You What to Do, You’re On the Wrong Side of Change.”
Referred to as “one of the more creative and brilliant business minds of our time” by Forbes, Brian Solis specializes in the impact of technological innovation on business and society. In his most recent book, Lifescale: How to Live a More Creative, Productive, and Happy Life, Solis discusses the challenges of – and solutions to – living in a world of ever-present digital distractions. His upcoming book, Mindshift: Ignite Change, Inspire Action, and Innovate for a Better Tomorrow, is designed to help people navigate, or even lead, in a digital-first, post-industrial era.
Formerly VP of Global Innovation for Salesforce, Solis is currently Head of Global Innovation for ServiceNow. As such, he leads vision, strategy, and programming for the company’s international innovation and Executive Briefing Centers. In addition to his keynote address on Day One of FinovateSpring, Solis will also join attendees for a book signing during the networking session immediately following his presentation.
Keeping up-to-date in the fintech world takes more than just reading what’s going on in the fintech news cycle. It’s important to read takes on different trends and themes from across the industry, as well. To help span this gap, we’ve brought insights from thought leaders across the industry to our Streamly videos.
Today, we’re featuring six videos recorded at FinovateEurope that showcase the expertise of some of the speakers in attendance. The first, 15-minute video highlights VC investors’ thoughts on fintech valuations, M&A activity, partnerships, and more.
The remaining videos we’re showcasing today are part of Streamly’s Fintech Founders Partnership series, a set of three-to-four minute videos that detail thought leaders’ opinions on a wide range of partnership issues.
Potential partnerships– assessing the strategic fit
Partnership goals– maintaining goal alignment
Data security & privacy– sharing sensitive financial information
Fraud and risk platform DataVisor announced a partnership with identity verification company Mitek this week.
DataVisor will integrate Mitek’s Check Fraud Defender solution into its platform to offer FIs real-time check fraud decision orchestration.
DataVisor made its Finovate debut last year at FinovateFall in New York. Mitek has been a Finovate alum since winning Best of Show at its Finovate debut at FinovateSpring in 2011.
AI-powered fraud and risk platform DataVisor has teamed up with identity verification innovator Mitek. Courtesy of the partnership, DataVisor will integrate Mitek’s Check Fraud Defender with its own advanced machine learning and real-time data analysis to give financial institutions comprehensive check fraud protection in a single platform. The partnership will enable financial institutions to execute real-time orchestration of check fraud decisions, minimize fraud losses, and boost operational efficiencies.
“Our vision has always been to create an end-to-end, comprehensive platform that effectively combats all types of financial fraud,” DataVisor CEO and Co-Founder Yinglian Xie said. “By joining forces with Mitek, we’re elevating our check fraud protection capabilities. It also streamlines the experience for our customers, eliminating the need to engage with multiple solutions in silo and therefore can address different fraud challenges more effectively with a centralized, holistic view.”
Mitek’s Check Fraud Defender puts AI and computer vision technology to work to visually evaluate distinct check attributes in real-time. The solution leverages a consortium model, which enables DataVisor customers to proactively flag future check deposits connected to stolen or fraudulent checks across participating institutions. Additionally, the combination of Mitek’s check image analysis and DataVisor’s analysis of check and customer lifecycle data will enable users to detect a wide variety of check fraud tactics including check kiting, remote deposit capture fraud, check washing, counterfeit checks, and identity theft.
“Together, we leverage our collective advanced technologies to safeguard financial transactions,” Mitek VP of Digital Banking Strategy Kerry Cantley said. “By combining DataVisor’s comprehensive platform with Mitek’s robust Check Fraud Defender consortium, we’ve created a top-tier solution, setting new standards in proactive fraud prevention.”
A Finovate alum since its Best of Show winning debut at FinovateSpring in 2011, Mitek has grown into a leader in digital access solutions. The company’s technology helps increase approval rates while keeping fraudsters at bay, and enables companies to meet compliance demands from AML and KYC to GDPR and PSD2. In addition to its solution for check fraud, Mitek also offers a low code identity verification solution, an biometric authentication solution MiPass, and Mobile Deposit, the company’s mobile remote deposit capture offering. Today, 99% of U.S. banks and 7,900 of the world’s largest organizations use Mitek’s technology for mobile check deposits.
Headquartered in San Diego, California, Mitek was founded in 1986. The company trades on the NASDAQ exchange under the ticker “MITK,” and has a market capitalization of $673 million. Max Carnecchia is Chief Executive Officer.
Among Finovate’s newest alums, DataVisor made its Finovate debut last year at FinovateFall 2023. At the conference, the company demoed its Fraud & Risk Platform that enhances fraud detection and minimizes fraud losses via a combination of device intelligence, rules and decision engines, case management, and the ability to seamlessly integrate any data source, including third-party data.
DataVisor’s partnership with Mitek comes less than a month after the Mountain View, California-based firm launched its end-to-end anti-money laundering (AML) solution. The new offering integrates with the company’s fraud platform natively to provide additional support against emerging cybersecurity threats.
Founded in 2013, DataVisor has raised more than $94 million in funding, according to Crunchbase. The company includes TruStage Ventures and NewView Capital among its investors.
A look at the companies demoing at FinovateSpring in San Francisco on May 21 and 22. Register today using this link and save 20%.
APIMatic
APIMatic’s mission is to make integrating APIs quick and straightforward for developers via automatic code generation. Customers include fintech giants Paypal, VISA, Maxio, and many others.
Features
APIMatic’s developer experience platform adds a layer of technology between fintech partners and developers to make onboarding faster and more accessible through the power of automation and GenAI.
Who’s it for?
Banks and fintechs heavily invested in API programs.
Blee
Blee helps compliance and legal teams automate the review and oversight of marketing, product, and sales materials using AI, ML, and custom automation.
Features
Centralized platform for content review and approval, powered by AI
Ongoing monitoring and oversight of websites and social media
Faster content approvals while maintaining oversights
Who’s it for?
Direct-to-consumer and direct-to-SMB regulated entities such as banks, credit unions, and fintechs.
Finalytics.ai
Finalytics.ai is a real-time data analytics platform, empowering community financial institutions with tailored customer experiences through big data and machine learning.
Features
Personalized customer journeys using a “segment-of-one” approach
Dynamic segmentation and content tailoring
Enhanced digital strategy and implementation consulting
Who’s it for?
Community financial institutions, including banks, credit unions, and potentially other payment providers seeking advanced data analytics solutions for personalized customer experiences.
TransUnion
TransUnion is a global information and insights company that makes trust possible by ensuring each person is reliably represented in the marketplace.
Features
Enhanced BreachIQ helps consumers proactively protect their identities by
Generating personalized Identity Safety Scores
Measuring incident severity via Breach Risk Scores
Tailoring Action Plans to incidents
Who’s it for?
Banks, credit unions, and fintech companies.
Winnow
Winnow AI leverages the power of LLP and NLP artificial intelligence to deliver lightning-fast answers to basic legal questions around topics that Winnow covers.
Features
Quickly answers basic legal questions
Generates responses based on Winnow’s 60,000+ attorney-reviewed legal requirements
Reduces time and effort typically spent on legal research
Santander is launching its Openbank digital banking brand in the U.S. and Mexico.
Openbank currently serves two million customers across Spain, Germany, the Netherlands, Portugal, and Argentina, and counts $19.3 billion (€18 billion) in deposits.
Santander aims to launch in the new regions in the second half of this year.
Spain-based mega bank Santanderannounced plans to launch a new digital offering in the United States under the Openbank brand in the second half of this year.
Santander launched Openbank in 1995 as a telephone bank. The bank moved online in 1999, becoming an online broker for real-time trading in domestic and international markets. Openbank currently offers payment cards, including debit and credit cards, prepaid cards, and travel cards; personal loans and mortgages; bank deposit tools; home, life, car, and digital insurance; as well as mobile banking capabilities and PFM tools. Openbank serves two million customers across Spain, Germany, the Netherlands, Portugal, and Argentina, and counts $19.3 billion (€18 billion) in deposits.
“Openbank is the largest digital bank in Europe by deposits with among the highest customer loyalty and satisfaction,” said Openbank Executive Chair Ana Botín. “We remain committed to growing our business in the United States, the largest financial services market in the world, leveraging our proprietary technology and global expertise to deliver a winning customer experience.”
In addition to launching Openbank in the U.S., Santander also announced it will be rolling out the digital bank to users in Mexico around the same time.
To promote the U.S. launch, Santander global ambassador and golfer Jon Rahm and his team will wear an Openbank logo on their shirts during all golf competitions, starting at the Masters in Geogria this weekend. “The golfer will help Santander and Openbank increase their visibility in North America, where Santander has a significant presence,” the bank explained.
Many non-U.S.-based digital banks have experienced difficulty launching in the U.S., citing the difficulty to obtain a banking license from the U.S. OCC. As Finovate Analyst David Penn wrote in a blog post yesterday, “…it has not been easy for financial institutions outside the U.S. to secure approval to operate within the U.S. For example, Monzo, a U.K.-based challenger bank, tried and walked away from the process in 2021 when approval seemed unlikely. Unfortunately, new U.S.-based firms looking for bank charters have only fared a little better. For every Savi Financial, there is a New Canaan Bank.” Openbank should not have the same issue, however, as the bank will likely rely on Santander’s banking license it received after buying out Sovereign Bank in 2008.
Empower announced plans to acquire Petal for an undisclosed amount.
The deal will help Empower expand into the credit card market.
Empower also announced it closed the acquisition of Philippines-based consumer credit and lending fintech Cashalo.
Empower, a fintech helping to extend credit to underserved consumers, announced plans to acquire underserved credit card provider Petal. Financial terms of the deal, which is expected to close later this quarter, were not disclosed.
New York-based Petal was founded in 2018 to offer underserved consumers access to credit cards. To better help marginalized consumers access the credit they need, the company doesn’t require them to have a credit score to qualify for the card. Instead, Petal leverages users’ open banking data as underwriting data to offer them credit and help them establish a credit history. Empower anticipates integrating Petal’s technology into its own will help it broaden into the U.S credit card market.
“Safe, affordable credit is unavailable to tens of millions of consumers in the U.S. and billions worldwide. We believe that modern product design and new technologies like cash flow underwriting can be used to radically improve credit access around the world,” said Petal Co-founder Jason Rosen. “This merger brings together two of the leading innovators in this arena. Our combined product offerings, financial strength, technical capabilities, and global reach will allow us to move much faster to close the equity gap in credit.”
The news comes after Petal has been struggling with high interest rates as the cost of borrowing has increased. By June of last year, Petal had cut 20% of its staff and, though it raised $240 million in combined debt and equity funding in August, by November, rumors swirled that Petal would become insolvent if it did not find a buyer quickly.
As part of today’s news, Empower also announced it completed its acquisition of Cashalo, a Philippines-based consumer credit and lending fintech. Empower plans to combine both companies under the Empower name.
“In both companies, we found a shared commitment to harnessing technology and rich alternative data to unlock financial opportunity for more people who merit our consideration,” said Empower Co-founder and CEO Warren Hogarth. “I’m confident that by merging Petal and Cashalo into Empower, we amass new product, operational, and analytical capabilities to help alleviate the credit insecurity that billions of people around the world struggle with.”
Empower was founded in 2016 and uses its technology to underwrite consumers using real-time cash flow, other nontraditional data, and machine learning to assess credit risk. The company offers lines of credit, which are issued by FinWise Bank, and no-interest cash advances. Empower has two million active subscribers and achieved profitability in 2022.
