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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
FinDEVr Silicon Valley: Celebrating the Best of the Builders
Around the web
FinDEVr alum Thinking CapitallaunchesLucy, an AI-powered chatbot for small business borrowers.
Narrative Scienceforges strategic partnership with Deloitte to promote broader adoption of advanced NLG technology.
AdviceRobolaunches Seedrs crowdfunding campaign as part of U.K. growth plan.
CME Group to deployTickVault from TickSmith to improve access to historical data.
New mobile app from Azimoenables money transfers via Siri, among other enhancements.
FISintroduces unified mobile payments solution, BuyWay.
FinDEVr alum Symbiontunveils SDK for Assembly, a distributed ledger for use in institutional finance.
EVRYlicensesG&D Convego CloudPay from Giesecke & Devrient to offer NFC, HCE mobile payments.
FinDEVr newcomer Smartwaveannounces its first banking client, Societe Generale Serbia.
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.
Q. If you are Toronto-based identity and authentication specialist, SecureKey Technologies, what’s a nine-letter word for Canadian FIs commited to improving online security?
Greg Wolfond, SecureKey founder and chairman, said the support from “Canada’s largest financial institutions” would help his firm “develop and deliver a national ecosystem that puts consumers first.” Rizwan Khalfan, EVP and chief digital officer for TD, echoed this point and credited SecureKey for leading the way in making it easier for customers to manage their digital assets, as well as for the company’s willingness to work with and receive “substantial input from TD and other banks.” Khalfan added that TD was “uniquely positioned to help shape [SecureKey’s] offering” due to TD’s commitment to security and privacy.
Along with its collaborators, SecureKey anticipates launching its digital identity network in 2017. And with Wolfhound’s return as CEO, the company plans to further drive development of its SecureKey Concierge service, as well. “We want to help put the consumer back in the middle and let them take control of their digital assets, to share what they want, with whom they want, and always with informed consent,” Wolfond said.
Drop-in Moneytree’s mobile SDK to easily connect its MT LINK aggregation platform to third-party products and services. Once exclusive to Mizuho Bank’s Direct app, the SDK will be widely available in November.
Features:
Brings a powerful data-aggregation platform to everyone
Easily integrates with new or existing services
Becomes the core of a user-centric data-portability platform for consumers and business
Why it’s great Moneytree’s MT LINK platform brings efficient, cost-effective data portability to the masses. With MT LINK, consumers and business can easily choose the data they provide to platform partners.
Presenters
Mark Makdad, Head of Platform
A graduate of University of Illinois, Urbana-Champaign, Makdad’s professional career began in Japan over a decade ago. Before co-founding Moneytree, he was the head of IT contract staffing at en world (Tokyo). LinkedIn
Zach Taub, Chief of Marketing Originally from Chicago, Taub has spent most of his 20 years in Japan engaged in sales, business development, and marketing for global companies, including adidas Group, Ogilvy & Mather and Getty Images. LinkedIn
Lleida.net is an electronic communications operator providing registered and certified communications as the vehicle for easy, fast, secure evidence for any electronic document.
Features:
Reliable evidence for e-documents (contracts, notifications…) compatible with all kinds of esignatures
Easy-to-use, seamless integration
Digitally signed certificate provided in a durable medium
Why it’s great
The Lleida.net telecom operator, thanks to its seamless registered and certified communications service for any electronic document, provides digitally signed evidence of any communication and its contents.
Presenters
Manuel Gallo, Chief Operations Officer EMEA
Gallo studied engineering and computer science and holds an executive MBA from Babson College. He specializes in “Go-to-Market” strategies with telecomm operators and services. LinkedIn
Viviana Company, Business Executive EMEA & Customer Service
Company has extended experience supporting sales efforts of consumer-oriented digital solutions. She has boosted growth of businesses in India, South Africa and Japan. LinkedIn
Gradatim IT Ventures India will show its Rapid Deployment Insurance and Banking Systems: Cloud up, OnDemand, Analytics Driven. They are flexible, standard systems that manage all core processes.
Features:
Create dynamic consumer segmentations
Set up and launch products
Set up channels
Manage the entire insurance or banking life cycle
Why it’s great
Gradatim IT Ventures India will demo the Gradatim MFInsure OnDemand Insurance System, a solution that delivers rapid deployment capability to set up, launch and manage retail and mass-consumer insurance products.
Presenters
Prakash Viswanathan, CEO and Founder
Prakash is a serial entrepreneur who is successful in identifying business opportunities, building companies. LinkedIn
Siva Kumar, Head, Product Engineering
With a background in enterprise and cloud development and strategy, and having worked across many countries, Kumar has a passion for innovation, specifically for financial institutions.
Forte Payment Systems to serve as the single premier gateway provider for Acryness Inc.
Portugal’s Banco CTT choosesFusionBanking Essence from Misys.
International payments provider, OFX, integrates with cloud accounting-software innovator, Xero.
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.
We’re back! After taking FinDEVr on the road for a very successful inaugural New York show this spring, our fintech developers conference has returned to the Left Coast for two days of APIs, SDKs, and enough case studies, integrations, and code to choke a Python (see what I did there?). If you haven’t picked up your tickets yet, there’s still time to swing by our registration page and save your spot.
FinDEVr Silicon Valley 2016 begins Tuesday morning with registration at 9:00 a.m. and the first pair of presentations starting at 10:05 a.m. Our dual-track event continues into the afternoon, with the final pair of presentations beginning at 3:25 p.m., followed by an hour-long networking session with open bar and appetizers lasting until 4:30 p.m. For more information, check our event agenda and schedule.
So what else do you need to know about getting your FinDEVr experience off to a great start? Here are a few last-minute details:
What? FinDEVr Silicon Valley 2016, a conference for fintech developers, CTOs, and technologists
Where? Santa Clara Convention Center; 5001 Great American Parkway, Santa Clara, CA 95054
Why? Because from the blockchain and chatbot technology to artificial intelligence and machine learning, the innovations in fintech are among the most ambitious in all of technology. Not only that, but fintech innovations are built for real-world use by everyone from soccer moms and dads to corporate treasurers and data scientists.
How (to make the most of your FinDEVr experience)? Once you’ve got your ticket, the first thing to do is to let the FinDEVr world you’re coming via our event app on Bizzabo. Just download the app (iOS or Android), search for “Finovate,” and register using the same email information used when you bought your ticket. And that’s it—you’ve just joined FinDEVr’s community on Bizzabo!
In addition, you can follow all of the action in both tracks by following us @FinDEVr. This way you can check out the presentations you like most, without being afraid that you’ll miss something cool in the presentation around the corner. Please tag your tweets #FinDEVr so everyone will hear what you’ve got to say.
As always, if you’ve got questions, take a look at our FAQ or email us at siliconvalley@findevr.com for answers. We’ll see you at FinDEVr!
Alkami Technology is partnering with credit-union service-organization Open Technology Solutions (OTS) to bring its ORB Digital Banking Platform to member CUs in states from Colorado to Maryland. ORB from Alkami will give credit unions a “unified platform across all devices and functional offerings” including PFM and P2P payments, billpay, retail and business financial services, mobile, and more. The platform also supports the ability of CUs to develop their own apps and product extensions, as well as add new features. Credit unions can take advantage of ORB’s integrated content-management system to conduct “one-to-one” product marketing and cross-selling.
User experience and cross-channel consistency were two aspects of Alkami’s technology that were underscored by Open Technology Solutions CEO Mike Atkins: “With Alkami’s ORB platform, our member institutions can deliver the same capabilities across different platforms while optimizing user experience.” Atkins says he believes the new solution will lead to better member engagement as well as help with prospective member acquisition.
Stephen Bohanan, founder as well as chief strategy and sales officer for Alkami Technology, praised the credit unions working with OTS for recognizing the increased consumer preference for the mobile channel in banking. Citing a Javelin report that said half the U.S. adult population used smartphones and tablets to do their banking—a 29% gain over the previous year—Bohanan said growing pressure will require FIs not only to provide a digital experience for their customers, but also a “superior” experience, as well. “We look forward to supporting this journey as their digital banking partner of choice,” he said.
AlkamiBrings its ORB Digital Banking Platform to Open Technology Solutions
Around the web
Thomson Reuterslaunches Thomson Reuters Labs, Capetown, the latest addition to the firm’s global network of innovation labs.
Islamic Finance House upgrades to latest version of Temenos T24 core banking system.
Ripple says Crypto Facilities will be first derivatives-exchange to list regulated XRP futures contracts.
Misys to provide cloud-ready corporate banking technology to Commonwealth Bank of Australia.
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.
Our developer show that’s more than a year in the making, FinDEVr Silicon Valley, is just one day away and there’s a lot to be excited about. Aside from watching dozens of companies show off the tools and code they’ve built, we’ll have plenty of networking breaks full of opportunities. We’ve added some fun twists this year; expect to make connections during a game of foosball or chat over a latte from the espresso cart or a beer from the bar. There’s still time to get in on the action, so register today and don’t miss out.
And while there will be plenty of fun, it’s the content we’re really looking forward to. Check out this word-cloud for an overview of what you can expect to see on stage over the course of the two-day event:
The presenting companies will be showing tech from a variety of fields within fintech. Check out our FinDEVr Preview blog series to see which sessions pique your interest.
Mobile app
The FinDEVr Silicon Valley mobile app is powered by Bizzabo. Download Bizzabo in the app store (Android & iOS), search FinDEVr and join the community to connect with other attendees, follow along with the agenda, read more about the presenters and vote for your favorite presentation.
A look at the trending topics of the past two weeks, co-authored by Finovate’s research analysts David Penn and Julie (Schicktanz) Muhn.
Big handshakes
Cardtronics acquires DirectCash Payments
In a $460 million deal, Texas-based ATM operator Cardtronics has acquired Canada-based DirectCash Payments. The deal is expected to help Cardtronics expand into Canada and the United Kingdom. DirectCash Payments has 25,000 ATMs around the globe, primarily in Australia, Canada, and the U.K. Once the deal closes in Q1 of 2017, it will boost Cardtronics’ network to 225,000 ATMs across North America, Europe, and Asia Pacific.
Jack Henry & Associates (F10) teams up with Visa (F10)
In a new partnership, Jack Henry & Associates has integrated with Visa to allow customers to send P2P payments directly to a recipient’s Visa debit card. This eliminates the need for a recipient to provide their account and routing number to the sender. With increased competition in the P2P payments industry (PayPal/Venmo (FDNY 16), Square Cash, Zello), banks are feeling pressure to compete by offering faster delivery of funds. The partnership enables banks to offer funds-transfers a day sooner, or even same-day. Jack Henry began offering P2P payment capability in 2005 and expects the new method to boost usage.
Sberbank (F16) and MasterCard (F11) partner to launch ApplePay in Russia
Starting this week, Mastercard cardholders in Russia can now pay using ApplePay, thanks to a new partnership between Russian bank Sberbank and Mastercard. In a statement, the bank’s Deputy Chairman of the Executive Board, Alexander Torbakhov, said, “Apple Pay is driving the popularization of contactless payments in Russia and globally. Many of Sberbank clients actively use new technologies, and an increasing number of them will prefer cash-free and contactless payment using their smartphones.”
This is the Russian bank’s second big move this week. On Monday the company inked a partnership with Hyperledger to begin working on the Hyperledger Project.
PayPal (F11) and Vodafone partner for in-store NFC mobile payments
Acting on a partnership it first initiated in February, PayPal partnered with Vodafone to enable U.K. users to make NFC payments from their PayPal accounts using their Android phones. The agreement enables consumers to make transactions of up to £30 ($36.60) at 400,000 retail locations. For more expensive purchases, Vodafone Pay users can use their Vodafone wallet (launched in 2013), which requires a PIN.
The NFC payment capability with Vodafone was piloted in Spain. PayPal also has agreements in place with other global telcos, including America Movil, Telcel, and Claro.
Regulation
Happy birthday, U.S. EMV. It’s been one year since EMV regulation in the United States was placed into effect. If you live in America, you’ve likely noticed that adoption is low. In fact, according to a recent report from Mastercard, 88% of consumers have been issued chip cards, but only 33% of merchant locations accept them.
Mobile POS company CardFlight (F13) released data on EMV usage in the U.S. over the course of the year and found:
78% of cards now contain EMV chips, up from 46% in October 2015
American Express leads the way in EMV card issuance, with 96% of their cards now EMV-enabled
Mastercard is the runner-up: 71% of cards issued contain an EMV chip
Though usage remains low, Mastercard reported this week that it has seen an overall decrease in fraud since the EMV change. The company reports that between April 2015 and April 2016, retailers who have transitioned to EMV experienced a 54% decrease in counterfeit fraud.
Ready, set, ACH
As of September 30, a new rule from NACHA requires all banks to process incoming same-day ACH credits. Most ACH payments are currently settled on the next business day: the new rule-change offers originators the option to send an ACH transaction to any recipient account for same-day processing. NACHA has imposed a same-day fee on every same-day ACH transaction to help financial institutions receiving the funds to recover the cost to enable same-day ACH. Phase two of NACHA’s Same-day ACH initiative will take effect 15 Sept 2017.
Capital One integration with Amazon Echo
Technologies: AI, chatbots, and natural language processing (NLP)
The industry-wide obsession with chatbots continues. Finovate last month showcased a dozen variants on the chatbot theme. One of our newer alums, Personetics (F16), is even holding a Chatbot Bootcamp next month in San Francisco. And our chatbot-banking post in March is our fourth most-read. But the bigger conversation is around natural language processing (NLP) and how it can be used to retrieve information and perform tasks. A new report from Juniper Research estimated that NLP would drive $2.1 TRILLION in annual purchases via mobile five years from now (2021).
The tech world is in a tizzy over Amazon’s Alexa capabilities. We showcased two demos of her at FinovateFall from BankJoy (F16 demo) and FIS (F09) (F16 demo). Capital One is the only bank with a live Alexa integration (called “Skill”), but Lloyds Bank put together a proof of concept this spring. There are currently 2,904 skills listed in the unofficial Alexa database, but very little in the financial realm. Expect to see much more activity as financial institutions and fintech companies develop applications using Amazon’s Alexa and the new Google Assistant.
Sibos 2016 celebrates the blockchain
The annual Sibos 2016 conference in Geneva took place at the end of September—between the last Fintech Trending meeting and this one. Organized by SWIFT, Sibos is considered to be the world’s premier financial services event covering areas such as payments, securities, cash management, and trade.
So what was big at Sibos 2016 this year? The blockchain. 2016 was the first year that Sibos dedicated a track “exclusively to distributed ledger” technology. And the event’s startup-industry challenge was all about how to use the blockchain in the securities industry. The three startups that won the challenge will develop PoCs using technologies like smart contracts (SmartContract), distributed ledgers (Rise Financial Technologies), and open-source blockchain platforms (Coin Sciences).
Some have ascertained the irony in SWIFT’s embrace of the blockchain: Its $6 billion payment-messaging service is one of the technologies “widely perceived to be at risk for disintermediation” by blockchain technology. And indeed, companies like Finovate alum Ripple (F13) have made great strides in helping FIs like Bank of America, Santander, and Royal Bank of Canada use distributed-ledger technology to provide a global blockchain-payments network with “near-instant” settlement. Interestingly, Ripple recently hired former SWIFT board member Marcus Treacher as its new global head of strategic accounts. Treacher told CoinDesk in September that SWIFT was the “de facto way everyone moves money through countries.” And cross-border payment is something he specifically believes Ripple “can do better.”
Global Banks Partner to Form Blockchain Payments Network—CoinDesk
Speaking of blockchain, a number of companies with blockchain and distributed-ledger technologies will be presenting at our developers conference, FinDEVr Silicon Valley, next week. These companies include PwC, which will present its blockchain-as-a-service technology to improve trade finance, and IBM with its hyperledger implementation in the cloud that helps manage and test blockchain-dev projects. Also on hand will be distributed database specialists Aerospike (FD16) and Cognitect (FD16).
InsurTech rising
From FT Partnersrecent report on the boom in insurance-technology innovation, to InsurTech Rising’s event, Informa, to launch on 21 Oct, this area of financial technology is garnering increasing attention.
Why? As FT Partners pointed out in their 247-page report, the insurance industry is one of the areas of finance that so far has been least affected by the technological disruption nearly commonplace elsewhere. The insurance industry is a multitrillion dollar business; property and casualty insurers alone generated more than $64 billion in net income in 2014. And it sits at the nexus between the drive to better engage customers (is there anything enjoyable about insurance from a consumer perspective) and the need to accommodate complex and shifting regulatory landscapes (something the rest of finance is becoming increasingly familiar with).
What are the focuses of insurtech? Most technology innovation in the area revolves around trends in distribution and administration: data and analytics, and marketing and customer engagement. This includes everything from the kinds of products offered to consumers, such as micro-insurance, to using mobile channels and interactive technologies to make insurance products easier to understand, choose from, and purchase.
How are industry players responding and what to watch for? From partnering with innovative startups to acquisitions, incumbent insurance firms are increasingly aware of the challenge. FT Partners reports that more than 40% of traditional insurers surveyed by Ptolemus Consulting said they were planning to “acquire, or have already acquired, innovative startups to help them expand their digital capabilities” and more than half say they have already invested in social media, data mining, and predictive modeling. Nearly 70% have embraced mobile technology.
Wave Mechanics: FT Partners Report Highlights Trends Driving Rise of Insurtech—Finovate
Prepare for the InsurTech Wave: Overview of Key Insurance Technology Trends—FT Partners
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Note: Finovate alums have the year of their first appearance listed after their name. For example, FIS first appeared at Finovate in 2009, so there is a (F09) after their name, with a link to that first demo.
I thought I’d left behind Berenstain Bears 15 years ago when my youngest graduated to Animorphs books. But they made an appearance today when I discovered how they are helping kids get involved with saving and managing money. And before you dismiss their appeal, did you know the Bears have sold 300 million copies in a 54-year run which includes 300 titles!
Three years ago, Franklin Mint FCU, through its CUSO CUNFL, developed a financial literacy program based on the series. It includes a book written by none other than Mike Berenstain himself, called Berenstain Bears Visit a Credit Union. It is licensed to other credit unions to appeal to grade schoolers.
The book is in use at a number of credit unions, but none more prominently than O Bee FCU in the Tacoma, Washington, area. Its Berenstain-themed Cub Account for under-12 members includes a 7.5% rate on the first $500 in savings, an important feature so you can use something other than pennies to show your youngster the benefits of savings. More impressive for the kids, every branch-deposit earns a free Dairy Queen ice-cream cone coupon (see inset for full list).
O Bee also offers a classroom financial literacy program with visits from the bears themselves, along with a jumbo version of the book to read to the class.
O Bee Credit Union’s Cub Account landing page
Bottom line: Efforts aimed at banking the kids of your customers are a clear win-win. It’s the right thing to do; kids, and their parents, need these services. And it helps keep both the child and their parents as customers for the rest of their lives. See our previous posts for more examples.
The book is in use at a number of credit unions, but none more prominently than 