This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Retail banks face challenges when integrating sophisticated technologies, especially those that are internet-sourced. This tech from Aerospike introduces valuable capabilities, including languages, application frameworks, APIs, data management, and NoSQL databases. In this talk, the company will share real-world examples of adapting these internet-sourced technologies to fit older order-management and address-book systems like Hogan.
Why it’s a must-see
Want to take advantage of internet-sourced technologies but don’t know where to start? Learn how existing fintech companies use these technologies to provide access to more data (petabytes) and support agile, innovative algorithms and libraries, and glean some inspiration for your next project.
Eugene and Nivi will demonstrate Blend’s thoughtfully designed platform used today by lenders and borrowers alike to originate efficient, data-driven mortgages. They will highlight exactly how the technology streamlines the data-collection process, and show how Blend accelerates what has historically been a long, painful path in the mortgage process.
Why it’s a must-see
Modernizing a $10+ trillion industry that runs on paper and fax machines is no simple task. In this presentation, attendees will get a peek beneath the hood of Blend’s platform, learning how the company’s engineers employ everything from containers to computer vision to overhaul the mortgage process.
Personal Capital will show how, by enabling both the user and her adviser, to see the same holistic financial picture, we have transformed the traditional “opening and funding of an account” transaction into a natural conversation about the best way to implement a financial plan.
Why it’s a must-see
If you are interested in this user story then join us. As a fintech developer, ask: Have you ever wanted to build a product that leverages all of a user’s financial goals and profile data, one that makes each individual’s account-opening process conversational and collaborative.
Symphony Software Foundation(SSF) will show how enterprise collaboration has been historically dominated by proprietary platforms, especially in highly regulated industries like FinServ. Learn how SSF is building an open ecosystem that fosters industry-wide collaboration, enabling your firm to stay on top of the FinTech revolution.
Why it’s a must-see
Learn how open source in general, and the Symphony Software Foundation specifically, are accelerating growth of the ecosystem around the Symphony Communication Platform, while also delivering innovation faster and at a lower cost.
IBS Journal Interviews David Mitchell, NYMBUS president.
Startland interviewsEyeVerify CEO Toby Rush on hiring plans, global expansion.
PayPal and Vodafone partner to facilitate contactless payments in the U.K.
GreenKey Technologiesbegins rollout of new mobile app that will offer hard turrets through existing hardware and infrastructure.
nanoPayusing Liberty Village as a working lab for its MintChip digital currency.
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.
The writing is on the wall. The bank branch wall that is. In a world of ubiquitous smartphones, bank branch ROI continues to plummet. That leaves many financial institutions wondering how to replace the branch’s historic role as the center of customer acquisition.
There are many strategies:
Substantial digital marketing and sales efforts
Relationships with major local employers
Lending, and banking, small businesses
Leadership in K-12 financial education
Affinity programs with local retailers
Social media and PR champion
None of those are particularly novel. But one you may not have tried recently is becoming the go-to financial institution in your area for homeowners and apartment renters. Being the local bank that helps people meet one of their top priorities in life, having a roof over their head, puts you in an enviable position.
Again, this is a strategy that goes back decades (e.g., Savings & Loans in the United States, Building Societies in the United Kingdom), but digital technologies open up new avenues of integrating partner services into a cohesive “Home for Homes” strategy:
Finding a home/apartment: Integrations with Zillow, Redfin, newcomer Faira (which “wrapped” the Seattle Time Sunday paper this past weekend in 3-full-pages ad)
Traditional home financing: Standard and jumbo mortgages, purchase and refi
Alt-financing home/apartment (note 1): Rehab loans, crowdfunding integrations, rental-deposit loans, and so on
Home/apartment repair loans: Smaller loans, potentially more of “emergency” type
Traditional home equity lending: Installment loans, lines of credit, and so on
Realtor support: While there is no shortage of independent mortgage brokers working with real estate agents, many (most?) can’t provide a flow of inbound leads to the agents; this is where established FI brands can leverage their standing in the community (within RESPA guidelines, naturally)
After you find a new home buyer/renter/refinancer, the hard part begins. How to convince them you are the long-term home for their home? A novel approach, but one fraught with regulatory/risk/ROI concerns, is the lifetime mortgage, e.g., a mortgage preapproval that moves with you from home to home provided you continue to meet down payment and income requirements (NOT the UK meaning, a reverse mortgage).
While reprising the Third FederalMortgage Passport might not be possible in the current regulatory environment, there are ways to incent customers to move their other bank accounts (though, thanks to Wells Fargo, you better be super careful with sales incentives).
CFCU Community Credit Union’s First Home Club, a down-payment assistance program from the Federal Home Loan Bank of New York.
Here’s a list of perks to offer new homebuyers/renters:
Homeowners club with content, discounts and offers
Systematic savings program to save for down payment or rental deposits
Card rewards geared towards home expenditures
Significant interest-rate kicker and/or bonuses on the first few thousand in savings (see CFCU Community Credit Union at right)
Reward-point bonuses for home-related purchases on your credit/debit card
Homeowner/rental insurance
Homeowner repair services with financing discounts (integrate with Thumbtack, Angie’s List, etc.)
Energy-conservation services with financing discounts
AirBnB integration for renting out home/apartment
Bottom line: No matter how well your branches are doing today, most financial institutions need to pursue viable new-account generation alternatives to make up for falling branch traffic.
———
Notes:
Apartment financing is a relatively new need (see previous post). And the magnitude of it might surprise anyone who hasn’t checked out the urban rental market in recent years.
Looking for more inspiration for your technology stack? Don’t miss our third annual FinDEVr Silicon Valleynext week (18/19 Oct).
FinDEVr returns to Silicon Valley next week on 18/19 October, and we’re preparing for the wave of fintech by examining the companies, their presentations, and the audience in more detail. In the past few weeks, we’ve showed off highlights of each company’s presentation in our Preview series and showcased content from their slide deck in a special Deep Dive feature. Don’t miss out on this year’s FinDEVr Silicon Valley. Register today to join us.
During the dual-track show, each company will give a 15 minute presentation and the audience will have multiple networking opportunities to get a closer look at the tech and talk with the developers involved. Here’s a look at the headquarters/locations of the 46 presenting companies we’ll see on stage next week.
While 10 companies call the Bay Area home, nine will cross national borders to come into the U.S. and showcase their technology at FinDEVr. The two companies traveling the farthest are Kyckr and OCR Labs, which are both based in Australia.
Stay tuned later this week for more about what to expect at FinDEVr, who else will be in attendance, and last-minute conference details.
FinDEVr Silicon Valley 2016 is sponsored by The Bancorp.
“Our Phoneprinting technology is highly resilient and very quickly identifies and analyses a call’s audio to indicate if a caller is suspicious,” says Matt Peachey, Pindrop’s VP and GM International. “This shines a spotlight on fraudulent activity before it becomes an issue—both for the organization and the customer—and also helps ensure a positive customer experience.”
CEO, CTO, and founder Vijay Balasubramaniyan demonstrated Pindrop’s Fraud Detection System at FinovateFall 2012.
The technology uses 147 unique call features such as location, number history, and call type to defend against many common fraud tactics such as ID spoofing, voice distortion, and social engineering. Lloyds Banking Group will deploy the technology across its Lloyds Bank, Halifax, and Bank of Scotland brands in early 2017. “Protecting our customers, their money and their information is our priority. Investing in ground-breaking technology is just one of the many ways we are able to remain a step ahead of potential fraudsters,” Lloyds Banking Group MD Martin Dodd explained. “Our partnership with Pindrop will enable us to further strengthen our multilayered defenses and allow us to continue to lead the industry in this important area.”
Writing about Lloyds Banking Group for Banking Technology, Antony Peyton noted that the firm has been on a fintech innovation streak of late. At its Bank of Scotland subsidiary, the firm this week unveiled “selfie technology” to enable customers to open current accounts online using their smartphones. CNBC reported that when Lloyds initially trialed Pindrop’s technology, the solution accurately identified fraudulent calls 85% of the time. The success rate has since reached 95%.
eSTORM has 17+ years of business history. All previous authentications focused on user authentication but eSTORM has designed and implemented a brand new concept of Service Authentication.
Why it’s great
Do the right authentication with DualAuth. Let’s change the 50-year-old, vulnerable, one-way user authentication into more secure, mutual authentication.
Presenters
John Woo, CEO
Woo has been leading eSTORM for 17 years as CEO. He wants to help people do right by using eSTORM products and seeks to help employees find out their natures and pursue happiness. LinkedIn
BongHo Kang, CSO
Kang had been working for global companies such as Cisco and NDS Corp. Initially he began his career as an embedded software developer and is now chief strategic sales officer for eSTORM. LinkedIn
EyeVerify’sEyeprint ID is a convenient, secure, eye-based biometric authentication for mobile banking and payments that is today used by more than 40 financial services companies.
Features:
Software-only and can be used on almost all popular smartphones
The only mobile biometric that generates a high-entropy key
Advanced spoof detection
Why it’s great
Eyeprint ID is the only mobile biometric that generates a high-entropy key-equivalent to a 50-character complex password.
Presenter
Tinna Hung, Director of Marketing
Hung joined EyeVerify in May 2015. She has 18 years of experience in strategic planning, product planning and strategic marketing, mostly at mobile/technology companies. LinkedIn
WeInvest’s end-to-end robo-advisery platform on mobile and web is backed by a robust middle-to-back-office platform, global investment strategies and execution, and custody with Pershing, BNY Mellon.
Features:
AUM-based fee structure. Pay as you scale.
Mutiple asset classes, currencies, brokers and custodians supported
Investment strategies App Store to gain access to the best global strategies
Why it’s great Asia’s first platform-as-a-service robo-adviser can help you launch your version in three months with an investment of less than US$150,000.
Presenters
Bhaskar Prabhakara, CEO
Prabhakara has over 14 years’ consulting experience with various banks, brokerages and asset-management firms across India, Middle East, United States, and London. He graduated from IIT Madras and has an MBA from IIM, Ahmedabad. LinkedIn
Aananth Solaiyappan, CTO
Solaiyappan is changing wealth management and investing through technology in Asia with a passion for design-led innovation and the transformative power of fintech in Asia. He formerly worked for Stanchart, Amazon, Oracle, and Sequoia. LinkedIn
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.
FinDEVr Previews highlight companies presenting new developer tools, platforms, and integrations at FinDEVr Silicon Valley 2016, 18/19 October. Tickets are on sale now. Visit our registration page and save your spot today.
The writing is on the wall. The bank branch wall that is. In a world of ubiquitous smartphones, bank branch ROI continues to plummet. That leaves many financial institutions wondering how to replace the branch’s historic role as the center of customer acquisition.
