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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
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 [email protected] 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.
Like proud grandparents counting the place-settings at a big family dinner, we were thrilled to realize that with FinDEVr Silicon Valley 2016 (tickets still available) we have onboarded our 1,000th alum. Durham, North Carolina-based Cognitect helped us make the milestone, and will join us next week at our upcoming developers conference in the Bay Area.
Founded in 2013, Cognitect specializes in enterprise software and data management. The company’s suite of technologies includes Datomic, a distributed database solution that leverages both traditional database functionalities with new features that enable full auditability and the ability to model future scenarios. Writing about Datomic in a blog post titled, “The New Normal: Data Leverage,” Cognitect VP Michael Nygard explained how the legacy of object-oriented programming (OOP) poorly serves developers in an era when “the majority of our work is with data.”
This is why I like working with Datomic. My transaction is data, just a vector of vectors or a vector of maps. What I get back as a result is data, a set of tuples. If I want to look at any of the built-in attributes of any of the attributes I’ve added—any of the metadata—I just do an ordinary query and get back ordinary data. My query is specified as data. Results come back as data.
Nygard said that developers have come up against an “upper bound” when it comes to scaling with OOP. “Too many companies have created golden anchors out of their multimillion-line code-bases,” he said. “We are uncovering new ways to structure applications that enforce even stronger encapsulation and decision-hiding than object-oriented programming.”
Cognitect’s customers include a number of top 50 global companies including BBC, Verizon, Walmart, Best Buy, and more. Among FIs, Cognitect has worked with Brazilian financial services startup Nubank, using Datomic to drive the firm’s micro services platform. Cognitect has also partnered with Finovate alum Pellucid, helping scale the company’s data analysis system for investment bankers.
Join Cognitect and more than 40 other innovative companies next week at FinDEVr Silicon Valley 2016. Our two-day event begins on Tuesday, 18 October, and continues through Wednesday, 19 Oct, with live, 15-minute presentations, and extended, high-quality networking opportunities to enable you to get to know the talent behind the technology. So stop by our registration page and pick up your ticket today.
North Carolina Data Management Innovator Cognitect is Alum 1,000. Join Cognitect at FinDEVr Silicon Valley 2016 next week.
Around the web
Strandshires former CaixaBank veteran Oscar Sala as head of product strategy.
Misysearns top spot in Asia Risk Technology Rankings 2016 for overall trading systems.
Thomson Reutersunveils new AML solution, TRAC, specifically targeting trade-based money laundering.
PYMNTS.com looks at the launch of Wipro’s new cloud-based, analytics platform for corporate treasurers, Treasury DNA.
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.
As our “Hail to the Chief” themed word-cloud shows, our upcoming developers conference FinDEVr Silicon Valley 2016 is dedicated to the women and men whose talents and insights drive not just the technologies we appreciate today, but also the solutions we dream about for tomorrow. (And, yes, tickets are still available!)
From serial entrepreneurs looking to power their next big thing with the brightest minds and best solutions, to startups eager to show new ways to solve old problems, FinDEVr is a unique opportunity to meet the teams behind the technology. Our two-track, 15-minute presentation format (slides allowed, code encouraged) combined with high-quality, end-of-day networking on both Tuesday and Wednesday is designed to maximize your exposure to the latest in SDKs, APIs, case studies and new integrations in the industry.
Brandon Dewitt, MX CTO, during his presentation, How You Build Something Is More Important Than What You’re Building
Join us 18/19 October for a two-day trip inside the laboratories where fintech’s future is being made. Find out how innovators are paving the way for safer, more efficient online transactions, better mobile app security, broader financial inclusion, and more. Tickets are on sale now. So visit our registration page today and save your spot. We’ll see you next week in Silicon Valley!
FinDEVr Silicon Valley 2016 is sponsored by The Bancorp.
Xignite makes it simple to build digital financial technology. Using our cloud-based REST APIs, developers can integrate in minutes and call real-time reference and market data directly to apps.
Features:
Cloud-based market-data distribution platform
Helps banks centralize, distribute, and optimize access to data
Data can instantly be pulled into portals within in-house systems
Why it’s great
Cloud-based market-data APIs are transforming banking, driving innovation while reducing infrastructure costs.
Presenter
Stephane Dubois, CEO and founder
Listed on Institutional Investor’s Tech 50 list of financial visionaries and nominated for FTF News fintech person of the year, Dubois founded Xignite to pioneer market data in the cloud. LinkedIn
This summer, Best of Show winner DriveWealth announced a partnership with Chinese marketplace lender and wealth manager CreditEase to bring roboadvisory to China. Today we learn the innovative broker-dealer has made a deal with Silicon Valley-based Alkanza to bring similar services to Latin America.
DriveWealth founder and CEO Robert Cortright credited his company’s platform for helping bring access to U.S. equities to “investors everywhere, at every income level.” Cortright said, “Our partnership with Alkanza makes it possible for investors in Latin America not only to gain access to the U.S. stock market, but also have their portfolios be managed by experienced professionals for an affordable cost.”
DriveWealth Chief Information Officer Harry Temkin demonstrated Real Time Fractional Trading with Passport 2.0 at FinovateEurope 2016.
This combination of access and advisory is what Andrés Villaquiran, founder and CEO of Alkanza, praised in his firm’s new partnership with DriveWealth. “By marrying our premium investment advisory programs with DriveWealth’s low-cost access to U.S. securities,” Villaquiran said, “our Latin American clients can now add a unique investment option to their investment plans.” Alkanza will use DriveWealth’s wealth management APIs, which were launched earlier this year. Advisers will be able to offer their clients varying levels of support: non-discretionary, blended, and fully discretionary—the latter level giving Alkanza full management, trading, and rebalancing of client portfolios. Alkanza will first offer the new services in Argentina and Chile.
The book is in use at a number of credit unions, but none more prominently than 
Presenter
