TransferWise Secures $6 Million in Series A Funding

By David Penn Posted on
Categories: TransferWise

TransferWise_logo3.jpgLed by Valar Ventures, the $6 million in capital represents the first European investment for Peter Thiel’s venture fund, and a major boost to the London-based, peer-to-peer money transfer startup.

Also participating in the round were existing investors including SV Angel.
In the two years since inception, TransferWise has raised more than $7 million in capital. The company, headquartered in London’s Tech city, was founded by Taavet Hinrikus and Kristo Kaarmann, and serves as an alternative to traditional money transfer services offered by banks and other FIs.
TransferWise supports transfers between major European currencies such as the Euro, British Pound, and Polish Zloty, as well as the Danish, Norwegian, and Swedish Krone. 
At this time, transfers from the U.S. dollar into European currencies are not available through the service, but are expected in the near future. TransferWise is also looking to add another 12 new currencies, as well as launching in France, Germany, Italy, and Spain in 2013.
TransferWise has been referred to as a “simplified PayPal for business banking” and last month won Estonia’s “Best E-Service” contest. Hinrikus also made headlines this spring with his project to provide $100 million in fee-free cash transfers to European startups. The company has transferred more than £100 million for its customers since inception, more than half of that amount in the last six months.
TransferWise presented their technology as part of FinovateEurope in February. To see their demo, visit them at our FinovateEurope 2013 video page here.

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What to Expect When You’re Expecting….

By Julie Muhn (@julieschicktanz) Posted on
Categories: FinovateSpring 2013

…To come to FinovateSpring tomorrow?  We’re here at the Concourse Exhibition Center (635 8th Street at Brannan), watching presenters place the final touches on their live demos.

We’ve seen all types of fintech solutions from companies ranging from 1 employee to more than 35,000. These companies are coming to us from across the globe, with a heavy concentration in the bay area. 
Here’s the complete picture (click to enlarge):
finovate_reportmap_US13_PRESS.jpgDon’t miss your opportunity to meet executives from fintech startups and established companies and see their brand new technology demonstrated live. Get your ticket here.
Our new in-conference networking tool, FinovateConnect, is now available in beta and will be debuted to the audience tomorrow. This makes it even easier to introduce yourself to individual presenters and attendees in a crowd of 1,200+ people. Attendees will receive an email detailing the sign-up process and instructions.

If you have last-minute questions about FinovateSpring, please see our FAQ. We’re looking forward to seeing all of you tomorrow!

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Finovate Alumni News– May 13, 2013

By David Penn Posted on
Categories: EyeVerify, FIS, Flint Mobile, Heckyl Technologies, Quantopian
  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgHeckyl Technologies named fastest growing enterprise startup in Indian brokerage industry.
  • InvestorPlace interviews Flint Mobile CEO and co-founder, Greg Goldfarb.
  • EyeVerify raises $2.3 million in Series A round. See them demo at FinovateSpring in San Francisco this week.
  • Advanced Trading takes a look at Quantopian and the rise of the new quants. Meet them at FinovateSpring.
  • FIS to provide core banking, back-office processing support to UK-based Sainsbury’s Bank.
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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If You’re Going to San Francisco … Join Us for FinovateSpring 2013

By David Penn Posted on
Categories: FinovateSpring 2013

FinovateSpring2013widelogo.jpg

Before every Finovate event, we try to provide a sense of the areas in which our presenting companies, large and small, are innovating.

Our Themes Word Cloud for FinovateSpring 2013 includes some familiar topics, as well as a number of new themes that have moved to the front of the pack this year.

FS2013 Word Cloud v7b.jpgIn addition to presenting some of the most interesting innovations in fintech, FinovateSpring is a great opportunity for industry professionals to meet, network, and get to know one another. 

The fact that titles like “Director”, “CEO,” and “SVP” (senior vice president) are so prominent in our Titles Word Cloud is a testament to the role Finovate plays in helping both fledgling startups and established innovators introduce their technologies to the public.

Version2TitleWordCloudV3.jpgFinovateSpring 2013 is the largest Finovate yet, besting last year’s record-setting event. Be sure to follow us here at Finovate.com and on Twitter (@Finovate) Tuesday and Wednesday for our all-day coverage, live from San Francisco. Also, download the latest edition of the FinovateSpring 2013 mobile app, available for free on iPhone, iPad, and Android devices.

Lastly, if you’d like to take a look at who’s presenting when, please visit our Demo Schedule page for more information.

See you in the City by the Bay.

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AuthenticID Available to US Bankcard Services Members

By David Penn Posted on
Categories: authenticID

gI_81220_authenticID-logoF.jpg

US Bankcard Services has announced that the identity authentication services of AuthenticID will be available to its merchants.

AuthenticID’s solution uses scanners with built-in barcode and magnetic stripe readers. With access to most international and North American government identity document issuers, the company’s software is able to compare a scanned ID to the ID in its document library.

The process is quick and works with driver’s licenses, green cards, and other types of government issued-identification.

US Bankcard Services was founded in 1996 by Chris Chang, who currently serves as president. The company is headquartered in City of Industry, California. Here are some additional metrics on US Bankcard Services:

  • Serves more than 10,000 merchant accounts
  • Has processed more than $11 billion
  • Offers a 95% approval rate within 24 hours
  • Has more than 100 employees

AuthenticID will be presenting its technology as part of FinovateSpring, May 14 and 15 in San Francisco. To learn more about the event, visit our FinovateSpring page here.

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Finovate Alumni News– May 10, 2013

By Julie Muhn (@julieschicktanz) Posted on
Categories: Bolstr, Palo Alto Software, Ping Identity, QuantConnect, Virtual Piggy
  • Finovate-F-Logo.jpgPalo Alto Software and Ping Identity partner to provide single sign-on.
  • PC World features Virtual Piggy. Come see its live demo at FinovateSpring next week.
  • Bolstr launches in Chicago neighborhoods.
  • ForexThink takes a look at QuantConnect and the rise of algorithm-based trading.
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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Mobile Marketing: USAA Embeds Preapproved Loan Offers within Mobile App

By Jim Bruene Posted on
Categories: Advertising & Promotion, Loans & Credit, Mobile Banking, USAA

usaa_mobile_preapproved.jpg

Now that the U.S. personal credit crisis of 2008 to 2010 is in the rear-view mirror (but still visible), banks and credit unions are getting more aggressive with credit. And guess what new marketing vehicle is available in 2013 that didn’t exist five years ago? Yep, mobile this and mobile that.

So far, the sales component in mobile banking has been minimal. Generally, users must already be a customer of the bank and even pre-registered with online banking. And cross-selling? About the only thing you can buy remotely is an ATM withdrawal.

But that will change as more customers only deal with their bank and cards through mobile apps, a number that is already pushing 30% of the online banking base of Bank of America (see previous post).

Eventually, most financial products will be sold through the mobile app. Not convinced? Look internationally where mobile was a thing even before the iPhone. I still remember Bankinter’s 2007 BAI Retail Delivery presentation where they said 20% of their retail interest-rate swaps were done via mobile phone.

In the United States, we are starting to see banks pushing the envelope. USAA has been the leader in most areas. So no surprise that they are the first (that I know of) to place preapproved credit offers within their mobile app (see screenshots below).

In the bank’s Dec. 2012 update (see inset), it added the ability to:

  • Accept pre-approvals in the app
  • Apply for checking and savings accounts in the app
  • Apply for life insurance after getting a quote in the app

Bottom line: The power of the pre-approved credit offer is well known. Traditionally, snail mail has been the medium of choice. But that’s expensive, time-consuming, and oftentimes not delivered at the optimal moment. Delivering offers via mobile phone can solve all those problems.

And as an added bonus: The sales results will create a better business case for your entire mobile initiative.

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USAA delivers preapproved credit card offer within its mobile app (Dec 2013)
Note: Screenshots shown are from a customer with an existing USAA life insurance relationship.
Price disclosures (right screenshot) displayed after clicking “Rates and Fees” under “Accept Offer” (left screenshot)

image         image

Source: comScore Q4 2012, Mobile Financial Services Advisor

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Note: We cover online mobile delivery and marketing in depth in our subscription-based Online Banking Report.

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Palo Alto Software and Ping Identity Partner to Provide Single Sign-On

By Julie Muhn (@julieschicktanz) Posted on
Categories: Palo Alto Software, Ping Identity

PingIdentityLogo.jpg

Cloud-based security company, Ping Identity announced earlier this week that it has partnered with Palo Alto Software, creator of LivePlan small business software. 

As a part of the partnership, Palo Alto Software will use Ping Identity’s single sign-on (SSO) technology. This will benefit:

1) Palo Alto Software employees: Employees can access frequently-used internal applications by using SSO.

2) Palo Alto Software customers: Many of Palo Alto’s sites require customers to log in multiple times per day. Palo Alto has already begun to roll out SSO capability to 6,000 of its customers and will continue to scale usage.

To learn more about Ping Identity, watch its FinovateEurope 2012 demo. Palo Alto Software will demo its LivePlan software at FinovateSpring next week in San Francisco.

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Finovate Alumni News– May 9, 2013

By David Penn Posted on
Categories: Billhighway, Compass Plus, eToro, FIS, Flint Mobile, Locaid, mFoundry, OneID, Perfectsen, SAGE SA, SaveUp, Striata
  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgForbes.com takes a look at the competition between Square and Flint Mobile.
  • Compass Plus presents instant card issuance in debut appearance at CARTES America conference.
  • SAGE SA names Amir Suleman as Head of Sales for Middle East.
  • Striata receives PCI compliance for its Grade 1 infrastructure in the UK.
  • New Europe Online interviews eToro’s Head of Product Marketing, Alon Levitan, about how eToro is changing online trading.
  • Good.is features SaveUp’s Priya Haji.
  • PEHub interviews Drew Sievers, who led mFoundry to an acquisition by FIS.
  • Fraternity and Sorority Political Action Committee leverages Billhighway Give to Reach Fundraising Goals.
  • Perfectsen selected as a semi-finalist for the Innotribe Startup Challenge 2013.
  • OneID wins 2013 North America Frost & Sullivan Award for New Product Innovation. Come see their presentation at FinovateSpring next week.
  • Locaid earns extended relationship with LaaS company Timesheet Mobile. See Locaid demo at FinovateSpring in San Francisco.
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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Metrics: Mobile Banking, Payments, Insurance and Investment Usage

By Jim Bruene Posted on
Categories: Insurance, Investment Products, Market Research & Metrics, Mobile Banking

imagecomScore is compiling a wealth of digital usage data, both for desktop and mobile (see previous post). And luckily, they have agreed to let me share some of it here (see note 1).

The following chart is financial services usage data across 230 million U.S. mobile phone users aged 18 or older (note 2) in the United States as of year-end 2012. It includes any type of financial content, secure or public (i.e. this is not limited to secure access by account holders).

The data shows that 62 million (27%) of mobile users accessed financial content during the prior month (Dec. 2012 figures). The vast majority of those (87%) accessed bank content. Credit card or electronic payments (e.g. PayPal) were each used by about half the segment. And brokerage or insurance content was accessed by about 20% of mobile financial users.

Observation: The banking numbers have been widely circulated, but I hadn’t seen recent breakouts in insurance and brokerage. Both were surprisingly high, especially insurance. If you assume there is generally one mobile financial user per household, that means that about 10% of all U.S. households are using mobile insurance info. Same on the brokerage side.

image
Source: comScore, compiled Dec. 2012

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Notes:
1. If you have requests, drop me a line and I’ll see what I can find.  
2. Users of any type of mobile phone, smartphone or otherwise. Also includes text-message queries.

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Finovate Alumni News– May 8, 2013

By David Penn Posted on
Categories: authenticID, BillGuard, Check Point, Currensee, Holvi, Jemstep, MoneyDesktop, OpenCoin, SoMoLend
  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgThe Wall Street Journal takes a look at “bitcoin startups” including OpenCoin. Come meet them at FinovateSpring in San Francisco.
  • Currensee announces launch of Trade Leaders managed fund.
  • US Bankcard Services now providing AuthenticID service to its merchants.  See AuthenticID demo at FinovateSpring next week.
  • Check Point introduces 600 Series security appliances for SMBs.
  • Forbes lists SoMoLend as 1 of 10 top crowdfunding sites for fundraising.
  • Investor Junkie reviews Jemstep. Come see what’s new at Jemstep at FinovateSpring next week.
  • MoneyDesktop honored with Bronze award in the Telly Awards, which recognize the finest video, film, & web commercials. See them demo at FinovateSpring.
  • Business Insider names BillGuard as 1 of the 20 hottest startups from Israel.
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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Discover Card’s Email Balance Alert is a Thing of Beauty

By Jim Bruene Posted on
Categories: Alerts & Messaging, Discover Card

image While it will never hang in the Louvre, Discover Card’s email alert is a true masterpiece (at least to fintech geeks). The message is nicely laid out with plenty of white space and it’s chock full of links to get more information.

Here’s eight specific elements I like (in no particular order). See the corresponding number on screenshot below:

1. Personalized with first name, last name and last four digits of account number; an important anti-phishing security precaution

2. Big orange button that leads to detailed transaction info

3. Table outlining the key data (yellow highlight is ours):
     – Date of notice
     – Balance limit set by user
     – Current account balance
     – Total credit line

4. Email subject line that explains exactly what’s in the message (important for scanning email messages), "Your balance exceeds the limit you set". Also, note how they ease your fears by saying it’s over the limit "YOU SET," which is much less of a problem than if it was over the card limit

5. Brief explanation of factors that might be impacting the balance (such as car rental holds)

6. Concise pitch for Discover’s mobile app, with text message option

7. Link to log in to adjust alert settings

8. Navigational links to: Statements | Payments | Rewards

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Discover Card email balance alert (4 May 2013)
Note: Yellow highlighting is ours

Discover Card email balance alert

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Notes:
1. We previously blogged about Discover Card alerts here
2. For more info see our report, Email Banking: Revitalizing the Channel (published 2010, subscription).

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