Alumni News

Illuma Receives Financing for Voice Authentication Security Solutions

Illuma Receives Financing for Voice Authentication Security Solutions
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Funding, Illuma Labs
  • Illuma has secured strategic financing from Stifel Bank. The amount of the financing was undisclosed.
  • The funds add to the company’s $9 million Series A funding round it received in September of 2024.
  • Illuma plans to use the funds to accelerate product innovation, expand its market reach, and help financial institutions safeguard interactions.

Voice authentication solutions provider Illuma received strategic financing from Stifel Bank. While the amount of the financing was not disclosed, it adds to the $9 million Series A funding the company received in September of 2024.

“Our tech and operations teams went through deep due diligence and have been highly impressed with the quality and simplicity of Illuma’s offerings, which address a critical gap for mid-market FIs,” said Senior Vice President of Venture Lending and Banking Stifel Bank Nick Elsenpeter. “We are excited to support their continued growth.”

Illuma will use today’s financing to help community banks and credit unions enhance security and streamline authentication processes across voice channels. More specifically, the funds will help the company accelerate product innovation, expand its market reach, and further support financial institutions in safeguarding consumer interactions.

“This strategic financing marks an exciting milestone for Illuma as we continue to scale and provide financial institutions with cutting-edge authentication solutions,” said Illuma CEO Milind Borkar. “The support from Stifel underscores the growing demand for frictionless security solutions that reduce operational costs while enhancing consumer trust. With this financing, we are well-positioned to expand our capabilities and further solidify our leadership in the market.”

Headquartered in Plano, Texas, Illuma offers a flagship product, Illuma Shield. The Illuma Shield authentication tool replaces traditional knowledge-based authentication (KBA) practices, such as asking security questions or prompting for PINs, with a real-time voice authentication solution. The low-friction solution not only enhances the caller experience, but it also improves operational efficiency for the financial institution while helping prevent fraud.

When a consumer calls into a call center using Illuma Shield, they can complete enrollment simply by saying “yes” and continuing the conversation. The system does not require them to call into a specific line, wait on hold, or repeat a special phrase. As a result of the straightforward experience, Illuma reports that more than 95% of callers invited agree to enroll.

As fraud continues to rise and the need for a seamless customer experience escalates, organizations can no longer afford to rely on outdated authentication methods that frustrate customers and leave security gaps. Traditional KBA techniques are increasingly vulnerable to social engineering attacks and data breaches. Voice authentication solutions like Illuma’s can help reduce fraud risk while enhancing operational efficiency, cutting down on call times, lowering authentication costs, and ultimately building consumer trust. As the industry moves toward more sophisticated identity verification methods, voice authentication solutions like Illuma’s will play a crucial role in the future of secure and efficient financial interactions.

Founded in 2016, Illuma recently won Best of Show at FinovateFall 2024 in New York for its deepfake detection technology. Check out the award-winning demo below.

Photo by Tiger Lily

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Live Oak Bank Implements Finzly’s Fedwire Solution

Live Oak Bank Implements Finzly’s Fedwire Solution
By David Penn Posted on
Categories: Alumni News, Finzly
  • Live Oak Bank has enhanced its commercial and small business banking services by partnering with Finzly for its Fedwire solution.
  • Finzly’s technology enables 100% straight-through processing (STP) and will help ensure the bank is compliant with upcoming ISO 20022 regulations.
  • Finzly is a two-time Finovate Best of Show award winner. The company most recently demoed its technology at FinovateSpring 2022 in San Francisco.

Payment and financial solutions provider Finzly announced this week that Live Oak Bank has enhanced its commercial and small business banking services by implementing Finzly’s Fedwire solution. The deployment enables 100% straight-through processing (STP) and facilitates the bank’s compliance with upcoming ISO 20022 compliance requirements ahead of schedule.

Fedwire is a real-time electronic funds transfer system operated by the Federal Reserve Banks, enabling financial institutions to send and receive money. It is the main network in the US used by businesses and government agencies for large and/or time-critical payments. ISO 20022 refers to a new message format that will be adopted by the Fedwire Funds Service on July 14, 2025, four months later than the initial deadline of March 10 established in June 2022. The goal of the new format is to enhance the quality of financial messaging, facilitate cross-border payments, and reduce manual processing.

Finzly’s Fedwire solution provides instant settlement, real-time visibility, and complete automation for Fedwire payments. The technology leverages Finzly’s pre-wired, tested, and certified connections to the Fed to keep banks and other financial institutions a step ahead when it comes to implementing Fedwire, complying with ISO 20022 standards, and launching new value-added services. Banks benefit from not only faster settlements, streamlined payments, and automation of key tasks, but also from the ability to seamlessly support multiple cores. This enables banks to process transactions across multiple core systems while integrating with digital banking, Office of Foreign Assets Control (OFAC), and fraud monitoring via open APIs.

“This partnership with Finzly gives our payment infrastructure the flexibility to adapt to customers’ needs, while also allowing us to streamline operations for our internal teams,” Mark Moroz, Live Oak Bank Head of Deposits and Payments, said. “With 100% STP in Fedwire processing and seamless multi-core integration, we are positioned to set new benchmarks in speed, efficiency, and customer experience.”

Headquartered in Wilmington, North Carolina, Live Oak Bank is a cloud-based digital bank that serves small businesses throughout the US. One of the largest SBA 7(a) lenders by dollar volume, Live Oak Bank initially specialized in providing financing for niche businesses such as veterinarians and dentists. Today, Live Oak Bank has more than $12 billion in assets as of Q4 2024 and is publicly traded on the NYSE under the ticker LOB. Founded in 2008, Live Oak Bank has a market capitalization of $1.49 billion.

“We are proud to partner with Live Oak, a bank led by visionary leaders, offering modern, connected banking services for its customers,” Finzly founder and CEO Booshan Rengachari said. “Our partners at Live Oak Bank are committed to delivering the best solutions without compromise. We are excited to support them in this mission.”

Two-time Finovate Best of Show winner Finzly most recently demoed its technology on the Finovate stage at FinovateSpring 2022 in San Francisco. At the conference, the North Carolina-based fintech showed how its bank operating system, FinzlyOS, enables organizations to quickly launch a modern, new digital bank from scratch. The bank featured direct connections to all payment networks, including ACH, wires, RTP, FedNow, and Swift, as well as a multi-currency general ledger, low-code customer-onboarding forms, online experiences, and more.

Live Oak Bank is only the latest partnership announced by Finzly this year. In February, the company reported that San Antonio, Texas-based Vantage Bank had chosen its unified payment hub to consolidate and future-proof its payment infrastructure. A family-owned community financial institution with a commitment to innovation and a strong focus on international services, Vantage Bank has $4.5 billion in assets. Also, at the beginning of the year, Wings Credit Union, Minnesota’s largest credit union with more than $9.3 billion in assets, announced that it was going live on Finzly’s Fedwire platform.

Photo by Mark Teachey

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Scalable Capital Teams Up with BlackRock to Expand Access to Private Equity Investments

Scalable Capital Teams Up with BlackRock to Expand Access to Private Equity Investments
By David Penn Posted on
Categories: Alumni News, Scalable Capital
  • Digital investment platform Scalable Capital has teamed up with BlackRock to make it easier for investors in Germany to add private equity investments to their portfolios.
  • The partnership will make Scalable Capital the first digital investment platform to enable investors to participate in the BlackRock Private Equity Fund.
  • Headquartered in Germany, Scalable Capital made its Finovate debut at FinovateEurope 2016 in London.

A new partnership with BlackRock will enable Scalable Capital to offer its customers in Germany access to alternative investments, including in private equity. The new offering will provide access to investments in companies that are not listed on stock exchanges, giving non-professional investors the benefit of potentially higher returns and greater diversification previously available only to a few.

“For decades, investing in private companies was reserved for institutions and the ultra-wealthy,” Scalable Capital CMO Maximilian Meyer wrote on LinkedIn this week. “Not anymore. Scalable Capital is making Private Equity accessible – in partnership with BlackRock.”

Scalable Capital will be the first digital investment platform to offer access to the BlackRock Private Equity Fund. The fund consists of co-investments in which majority stakes in private companies around the world are acquired together with a network of private equity managers. The fund differs from many other private equity funds insofar as it is an open-end fund, rather than closed-end. This, among other things, enables investors to redeem invested capital more regularly than they would with a closed-end fund. Further, returns and dividends are reinvested by the fund, which can provide greater compound interest and higher returns over time.

A minimum one-off investment of €10,000 is required to invest in the BlackRock Private Equity Fund but, after that commitment is made, investors can use the fund as part of a savings plan. To support access to the new asset class, Scalable Capital has enhanced its platform with a fully digitized suitability check, a two-week revocation option for purchase orders, and a comprehensive range of information to help investors make informed investment decisions.

The partnership between Scalable Capital and BlackRock comes at a time when the demand for private equity is growing. Especially for investors with a longer time horizon, private equity investment can provide both portfolio diversification as well as high return potential. In its partnership announcement, Scalable Capital noted that private equity has produced nearly 15% annual growth in US dollars over the past 20 years, outperforming the MSCI World Index. The company noted additionally that compared to a traditional portfolio with an asset mix of 60% stocks and 40% bonds, the inclusion of up to 20% in private market investment can provide a superior risk/reward profile as well.

“As alternative investments such as private equity are becoming increasingly relevant for participation in economic growth, we now make them accessible to investors,” Julius Weller, Vice President Broker at Scalable Capital, said. “With the expansion of our investment platform to include this segment, clients gain access to the high return potential of private companies. We also achieve the favourable terms and simple handling for private equity that Scalable Capital is known for.”

Scalable Capital made its Finovate debut at FinovateEurope 2016 in London. In the years since then, the Munich, Germany-based company has become a leading digital investment platform in Europe. More than €27 billion is held on Scalable Capital’s platform by more than one million customers.

BlackRock is a leading provider of investment, advisory, and risk management solutions. The company is also the world’s largest asset manager with $11.5 trillion in assets under management, $40 billion of which are in alternative assets. Founded in 1988, BlackRock is headquartered in New York.

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TransUnion Teams Up with Credit Sesame to Launch  Direct-to-Consumer Experience

TransUnion Teams Up with Credit Sesame to Launch  Direct-to-Consumer Experience
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Credit Sesame, Daily news, TransUnion
  • TransUnion is partnering with Credit Sesame to launch a freemium credit education platform.
  • The new platform will give U.S. consumers daily access to their credit score, tailored financial offers, and premium credit monitoring services.
  • By leveraging Credit Sesame’s expertise in the freemium credit space, TransUnion expects to increase consumer engagement and grow its direct-to-consumer business.

Credit protection platform TransUnion and consumer credit management company Credit Sesame have teamed up this week. TransUnion has tapped Credit Sesame to launch a direct-to-consumer, freemium credit education solution for US users.

TransUnion is positioning the new credit education solution as an “experience” that will be integrated with premium credit monitoring services. The new tool will bring consumers their daily credit score and report from TransUnion and offer them access to third-party financial offers that are tailored to their individual goals and credit profile.

TransUnion’s US consumers will have access to the new platform beginning in the first half of 2025. 

“Personal empowerment is a key component of our commitment to Information for Good,” said TransUnion President of US Markets Steve Chaouki. “By providing a free-first experience that includes financial offers, we engage with more consumers, enabling them to better understand their financial situations and take action to manage their financial futures. By integrating our freemium offering with our enhanced premium credit and identity monitoring services, we expect to deliver a more expansive product offering to consumers and position our direct-to-consumer business for sustainable growth.”

Credit Sesame was founded in 2010 to show consumers their daily credit score, credit report summary, and credit monitoring alerts. In 2020, the California-based company launched Sesame Cash, digital banking tools, including a pre-paid debit card and credit builder solution.

Headquartered in Chicago, Illinois, TransUnion provides tools to help businesses and consumers assess creditworthiness, detect fraud, and make informed financial decisions. The company operates in more than 30 countries, helping organizations manage risk and empowering consumers with access to credit and wealth-building tools.

“We’re committed to empowering consumers to take charge of their financial health,” said Credit Sesame CEO Adrian Nazari. “We have a track record of success in the freemium credit space, helping millions of Americans effectively manage their credit and create better opportunities for themselves and their families. By leveraging our Sesame platform, we expect that TransUnion will be able to deeply engage consumers and support them in achieving their financial goals.”

Photo by RDNE Stock project

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ION Commodities Announces Strategic Partnership with Avalara

ION Commodities Announces Strategic Partnership with Avalara
By David Penn Posted on
Categories: Alumni News, Avalara
  • ION Commodities and tax compliance automation company Avalara have forged a strategic partnership.
  • The partnership will integrate ION Commodities’ commodity management platform with Avalara’s AvaTax for Energy tax engine solution.
  • Headquartered in Durham, North Carolina, Avalara made its Finovate debut in 2015 at FinDEVr Silicon Valley.

Energy and commodity management solutions provider ION Commodities and tax compliance automation innovator Avalara announced a strategic partnership this week. ION Commodities has joined Avalara’s Partner Program to standardize integration of its technology with Avalara’s AvaTax for Energy tax engine solution.

“Tax compliance is one of the most onerous factors impacting energy and commodities enterprises, and their ability to scale and operate efficiently,” Avalara Vice President and General Manager Steve Lacoff said. “Our partnership with ION gives mutual customers in these sectors a greatly simplified path to compliance automation, with reduced compliance risk, and greater operational efficiency.”

Avalara’s AvaTax for Energy tax engine solution helps firms manage the complexities of tax compliance in energy trading and logistics. The energy markets typically feature complex and dynamic tax rates and rules across multiple jurisdictions. Keeping pace with regulatory requirements — including monthly filing requirements — is operationally costly. What’s worse is that attempts to shortcut these costs “can lead to tax errors and risk significant fines and penalties,” Avalara noted in a recent whitepaper, Fuel Tax Compliance Best Practices.

AvaTax for Energy calculates energy excise taxes for firms ranging from the smallest fuel distributors, energy traders, and mobile refuelers to the largest oil, gas, and chemical companies. The integration between Avalara’s compliance automation and ION Commodities’ commodity management platform will give energy companies an automated, scalable tax compliance solution that improves accuracy, reduces reliance on manual processes, and enables real-time tax calculation.

“Collaborating with Avalara aligns with our mission to deliver comprehensive, integrated solutions for the energy and commodities industry,” ION Corporates CEO Sunil Biswas said. “This partnership enhances our offering with advanced tax compliance capabilities, empowering our community to navigate the complexities of tax regulations with confidence.”

With more than 1,200 clients, ION Commodities provides data-driven energy and commodities trading and risk management solutions across the supply chain. The company’s Energy Trade and Risk Management (ETRM) and Commodity Trading and Risk Management (CTRM) solutions give customers real-time risk analytics and reporting and automate critical business processes to enable faster, more informed decisions. Headquartered in New York, ION Commodities is a division of London-based financial data and software company ION Group.

Avalara introduced itself to Finovate audiences in 2015 as part of Finovate’s developers conference, FinDEVr Silicon Valley. Headquartered in Durham, North Carolina, and founded in 2004, Avalara offers automated tax compliance solutions that boost efficiency and accuracy, streamlining the experience for customers and simplifying tax management for businesses. According to a study by Forrester Consulting, Avalara customers have benefitted from a 90% increase in tax research efficiency, a 50% reduction in time spent on exemption certificate management, an 85% increase in audit preparation efficiency, and an 85% reduction in time spent managing tax returns. Scott McFarlane is co-founder and CEO.

Photo by Nataliya Vaitkevich

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Experian Selects ValidMind to Help Banks Manage AI Compliance

Experian Selects ValidMind to Help Banks Manage AI Compliance
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Experian
  • Experian is integrating ValidMind’s AI governance and risk management tools into its Ascend Platform to help banks automate and streamline AI compliance.
  • The collaboration enables financial institutions to automate model validation, risk tracking, and audit readiness.
  • The combined solution will not only simplify AI adoption in financial services, but will also ensure compliance with key regulations like SR 11-7, E-23, SS1/23, and the EU AI Act.

Today’s environment of ever-changing regulations and technological developments in AI is making it difficult for banks to stay on top of AI compliance. To help banks manage these challenges, Experian is integrating its Ascend Platform with AI governance and risk management platform ValidMind.

Experian Ascend helps organizations make better decisions by providing them with access to extensive data and advanced analytics tools. The tool combines information from various sources, including credit and market data, and leverages AI and machine learning to offer insights to help firms better understand their customers, manage risks, and identify new opportunities.

Integrating ValidMind will help Experian automate model development and validation documentation using customizable, pre-built templates for credit, fraud, and other models. It will also enhance risk governance with robust racking, monitoring, and audit readiness features, ultimately enhancing regulatory compliance.

“Our collaboration with ValidMind complements our Ascend Platform and offers our customers innovative technology to automate and accelerate their model risk management processes,” said Experian Software Solutions President Keith Little. “This partnership empowers financial institutions, insurance companies, and fintech organizations to meet regulatory challenges with confidence and agility.”

The new combined solution, which meets compliance requirements including SR 11-7, E-23, SS1/23, and the EU AI Act, integrates AI into templates to ensure that banks generate consistent, high-quality documentation organized to streamline regulatory submissions.

“This partnership is poised to establish a new industry standard for scalable, automated model risk management,” said ValidMind CEO Jonas Jacobi. “Together, we can help financial institutions reduce risk, improve efficiency, and accelerate the adoption and implementation of AI, Gen AI and statistical models.”

California-based ValidMind was founded in 2022. The company’s enterprise platform helps organizations document, validate, and govern models at scale. ValidMind also offers statistical models, AI models, and GenAI models to streamline documentation, simplify compliance, future-proof existing models, and unlock new business models in a transparent way. The company raised just over $8 million in its first funding round last year.

Photo by RDNE Stock project

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Fenergo Partners with PwC to Bring AI-Powered CLM and KYC to More Financial Institutions

Fenergo Partners with PwC to Bring AI-Powered CLM and KYC to More Financial Institutions
By David Penn Posted on
Categories: Alumni News, Fenergo, PwC
  • Financial compliance software company Fenergo has teamed up with PwC.
  • The partnership is designed to bring AI-powered CLM and KYC solutions to more financial institutions around the world.
  • Fenergo made its Finovate debut at FinovateEurope 2012. PwC won Best of Show in its Finovate debut at FinovateFall 2021.

Fenergo and PwC have announced a new partnership that will help put Fenergo’s AI-powered Client Lifecycle Management (CLM) and Know Your Customer (KYC) solutions in the hands of more financial institutions. The combination of PwC’s financial crime expertise with Fenergo’s AI-powered CLM technology into a single offering will make it easier for financial institutions to digitally transform their financial crime operations.

Fenergo’s Global VP for Partnerships and Alliances Matt Edwards said that the collaboration between the two firms will “deliver an optimum target operating model for CLM.” Edwards added that the solution “empowers financial institutions to efficiently mitigate financial crime risk while driving growth and efficiency gains.”

Fenergo’s CLM helps ensure that financial services firms realize tangible benefits and return on investment from the digital transformation of their client management and compliance processes. The platform provides faster client onboarding, including streamlined onboarding for low-to-medium risk clients; improved operational efficiencies with fewer touchpoints; policy-driven accurate risk assessments aligned with regulatory requirements; and a reduced total cost of ownership thanks to advanced API integrations.

Complementing Fenergo’s CLM technology are PwC’s Target Operating Model design, end-to-end customer experience journey mapping, operational readiness, data migration, systems integration, and business change management.

PwC Partner Mark Hunter highlighted Fenergo’s technology as “uniquely positioned to serve mid-market to large multinational organizations.” Hunter praised the company’s platform for its “scale, flexibility, and advanced capabilities” that help institutions better manage complex regulatory environments and large volumes of transactions.

A UK-based multinational assurance, advisory, and tax services provider, PwC counts more than 85% of the Global Fortune 500 companies as its clients. PwC maintains offices in 152 countries and reported gross revenues of more than $55 billion for the year ending 30 June 2024. The company participated in Finovate’s developer conference, FinDEVr SiliconValley 2016, and won Best of Show at FinovateFall 2021 for a demonstration of Customer Link, its customer data platform that helps institutions build better, more personalized experiences.

Dublin, Ireland-based Fenergo made its Finovate debut at FinovateEurope 2012. The company offers simplified client and product onboarding, automated AML and KYC due diligence, and a centralized CLM platform that helps financial institutions, asset management, and fintechs manage customers throughout the entire client lifecycle.

Fenergo’s partnership news with PwC comes a few days after the company announced the launch of its all-in-one KYC, onboarding, and trade request management platform for businesses in the energy and commodities sector. The new Trader Request Portal combines KYC, onboarding, and trade request management capabilities.

Photo by Mark Dalton

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FIS Taps Affirm to Give Bank Clients BNPL Tools for Debit Cardholders

FIS Taps Affirm to Give Bank Clients BNPL Tools for Debit Cardholders
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, FIS
  • FIS is partnering with Affirm to enable banks using its debit processing services to integrate Affirm’s BNPL payment options.
  • FIS clients can now offer consumers pay-over-time solutions including both biweekly interest-free installments and longer-term financing plans.
  • Offering BNPL tools can help smaller financial institutions stay competitive, improve their digital offerings, and meet evolving consumer demands.

Payment, banking, and investment systems provider FIS and buy now, pay later (BNPL) player Affirm have teamed up this week. The partnership will allow FIS to enable its debit processing bank clients to integrate Affirm’s BNPL solution into their existing debit card program.

Affirm offers two different payment products, Pay in 4 and Monthly Installments. With Pay in 4, shoppers can split up purchases ranging from $50 to $1,000+ into four interest-free installments paid every two weeks. The Monthly Installments tool is a more traditional borrowing product that allows consumers to finance purchases ranging from $50 to $5,000+ over the course of three to 60 months with a rate of 0% to 36% APR.

FIS anticipates that integrating Affirm’s tools into banking products will help its clients meet evolving consumer demands, ultimately fostering customer loyalty and boosting growth. The company’s debit processing clients can offer their eligible customers biweekly and monthly payment plans via the bank’s existing debit card programs. Banks can also leverage Affirm’s traditional financing offers, funded by Affirm’s 335,000+ merchant partners.

“Customer conversion and retention have become major priorities for card-issuing banks in our increasingly digitized economy, where consumers have endless options,” said FIS Co-president of Banking Solutions Jim Johnson. “Consumers today are looking for innovative and user-friendly experiences that give them flexibility and control over their money and optimize how their money is put to work. That’s why so many of them choose to pay with Affirm. This new program will deliver Affirm’s leading-edge technology, flexible and transparent payment options, and extensive merchant network to our banking clients, enabling them to continue meeting these needs and offer more competitive, differentiated services through their own banking channels.”

This move is particularly significant for FIS’ smaller financial institution clients, such as credit unions and community banks, as it provides a straightforward way to offer BNPL tools to their customers. By integrating these options, institutions can enhance the customer experience with greater payment flexibility while positioning themselves as more tech-savvy and innovative. This distinction can be crucial in attracting and retaining customers in a competitive landscape.

“Millions of consumers prefer using a debit card from their trusted financial institution, and we believe they should have easy access to exceptional credit options through their preferred payment method. That’s why, for the first time, we’re bringing Affirm’s proprietary underwriting technology and full suite of pay-over-time solutions to third party issuers in partnership with FIS,” said Affirm Chief Revenue Officer Wayne Pommen. “This new program will expand access to Affirm’s wide range of payment options, giving more consumers a responsible way to pay over time. It will also connect them directly to Affirm’s vast and growing merchant network – delivering an even more valuable and differentiated experience.”

Established in 1968 and based in Florida, FIS serves 15,000 clients across the globe. The company’s product suite includes payment solutions, risk management services, and customer communication tools. Its technology supports the processing of $50 trillion in transactions annually and oversees assets totaling $16 trillion.

Photo By: Kaboompics.com

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Zeta Secures $50 Million Strategic Investment

Zeta Secures $50 Million Strategic Investment
By David Penn Posted on
Categories: Alumni News, Alumni profile, Funding, Zeta

Banking technology provider Zeta has raised $50 million in new funding. The investment — from an unnamed strategic investor — boosts the company’s valuation to $2 billion, a significant increase from the firm’s most recent pre-money valuation of $1.45 billion. That valuation followed a capital infusion of $250 million from Softbank Vision Fund 2 and other investors in 2021.

Headquartered in San Francisco, California, Zeta enables financial institutions and fintechs to launch a wide variety of financial products via its modern, microservices-based, API-first, cloud-native, and Headless (MACH) platform. These products include credit cards, checking accounts, savings accounts, unsecured loans, and more. Zeta’s SaaS suite provides solutions for the entire lifecycle of a banking product: core banking and issuer payments; merchant acquiring and payment services; digital banking and AI applications; issuer operations and servicing; customer engagement and rewards; as well as commercial cards and benefits.

“We are incredibly excited at the pace at which clients are embracing our modern stack,” Zeta Global CEO and Co-Founder Bhavin Turakhia said. “Over the past few years, we have supported over 25 million accounts on our cloud-native processing platform Tachyon and are on track to add 25 million more with contracts already in flight. Our clients are breaking away from decades of legacy systems to deliver amazing digital experiences, thereby increasing their customer satisfaction and accelerating new user acquisition.”

Founded in 2015, Zeta won Best of Show in its debut at our all-digital Finovate conference in 2020. The company returned to the Finovate stage the following year for FinovateFall 2021 in New York. More recently, Zeta has collaborated with fellow Finovate alum Mastercard as part of a five-year partnership and teamed up with Featurespace to combine credit card processing and fraud detection. Last August, Zeta announced that India’s HDFC Bank was leveraging its technology to power its new Credit Line on UPI (CLOU) solutions.

“Zeta’s mission to be a trusted partner to financial institutions is possible through the patient efforts of the best team ever assembled in banking technology,” Zeta Co-Founder Ramki Gaddipati said. “While the past few years have been challenging for the banking-tech industry, our organization has delivered multiple winning programs for our clients in record time.”

To date, Zeta customers around the world have issued more than 25 million cards on Zeta’s platform. The firm’s card processing capabilities were recognized by Celent in its 2023 Next-Gen Card Issuer Processors in the US report, which noted that, in the words of Celent Head of Retail Banking and Payments Research Zil Bareisis, “Zeta is among the likeliest partners for banks considering a shift to next-gen processing.”

Photo by Zyanya BMO on Unsplash

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India’s Perfios to Acquire Clari5 (CustomerXPs)

India’s Perfios to Acquire Clari5 (CustomerXPs)
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, CustomerXPs, Daily news, Mergers & Acquisitions
  • Financial data company Perfios has acquired Clari5 to enhance its fraud prevention and risk management capabilities using Clari5’s real-time financial crime management platform.
  • Clari5 offers AI-driven fraud detection tools, including customer-looped alerts, identity resolution, trade-based AML, and real-time transaction monitoring across multiple channels.
  • Perfios anticipates that the acquisition will strengthen its presence in India, the Middle East, North Africa, and Southeast Asia.

Financial data analysis company Perfios has agreed to acquire Clari5 (also known as CustomerXPs). India-based Perfios will use Clari5 to strengthen its own fraud and risk management capabilities. Financial terms of the deal were not disclosed.

Clari5 was founded in 2006 to help protect banks against fraud and money laundering. Among the company’s tools for fighting fraud are a customer-looped alert management service, payments fraud reporting, identity resolution, trade-based anti-money laundering, an inbound scam detection solution, and more. Additionally, Clari5 uses AI-driven analytics and machine learning to improve the detection of fraud patterns. The company monitors transactions in real-time across multiple channels to ensure that financial services organizations can quickly detect and prevent fraud.

“Joining forces with Perfios marks a new chapter of growth and innovation for Clari5,” said Clari5 CEO Rivi Varghese. “With Perfios’ deep expertise in the financial technology ecosystem and our advanced real-time financial crime management platform, we are creating a powerful synergy to redefine fraud prevention, risk intelligence, and AML compliance at scale. This partnership enables us to expand our reach, accelerate product innovation, and strengthen our ability to help financial institutions combat evolving financial crime with unmatched speed and precision. Perfios’ scale, global presence, and stability position us to serve the largest banks worldwide, enabling us to deliver impactful solutions to financial institutions of all sizes and complexities.”

Founded in 2008, Perfios builds customized solutions for financial services firms to make data-based, real-time decisions in lending, wealth management, embedded finance, insurance, and KYC. The company serves over 1,000 lenders in India, including each of the top 10 banks.

Perfios anticipates that adding Clari5 will help it build its leadership in the financial sector in India. The company also plans to use the move to strengthen its presence across its key geographies, including the Middle East, North Africa (MENA), and Southeast Asia (SEA).

“The acquisition of Clari5, a leader in EFRM and AML, marks a significant milestone in our journey to build the most comprehensive fraud and risk management ecosystem,” said Perfios CEO Sabyasachi Goswami. “Clari5’s real-time financial crime management platform, trusted by marquee financial institutions worldwide, perfectly complements Perfios’ mission to deliver secure, scalable, and tech-first solutions. Together, we are set to redefine fraud prevention, risk intelligence, and AML compliance, empowering financial institutions to stay ahead of evolving threats while powering financial security to billions across the globe.”

Photo by Christina Morillo

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Backbase and Feedzai Integrate Financial Crime Prevention with Engagement Banking

Backbase and Feedzai Integrate Financial Crime Prevention with Engagement Banking
By David Penn Posted on
Categories: Alumni News, Backbase, Feedzai
  • Engagement Banking company Backbase has announced a strategic partnership with financial intelligence solutions provider Feedzai.
  • The partnership will integrated Feedzai’s Digital Trust solutions with Backbase’s Engagement Banking Platform.
  • Backbase most recently demoed its technology on the Finovate stage at FinovateFall 2021. Feedzai made its Finovate debut at FinovateEurope 2014 in London.

A newly announced strategic partnership between Backbase and Feedzai aims to bring advanced financial crime prevention technology to engagement banking. The integration of Feedzai’s Digital Trust solutions with Backbase’s Engagement Banking Platform will empower financial institutions to fight fraud more effectively while preserving the customer experience.

Feedzai’s Digital Trust platform analyzes user behavior, device health, and potential threats in real-time. The cloud-based solution operates in the background, enabling financial institutions, financial services organizations, and fintechs to detect and counter online identity impersonation and manipulation attacks, while allowing legitimate users to conduct their activities unimpeded. Feedzai’s Digital Trust is effective against account takeover (ATO) attacks as well as new account fraud attempts during onboarding. It combines behavioral biometrics, behavioral analytics, advanced malware detection, and network and device assessment to provide active and preemptive defense against threats. The integration with Backbase’s engagement banking platform will provide banks with real-time, AI-powered, proactive fraud prevention, plus lower operational costs thanks to AI-powered risk assessment that minimizes false positives.

“By combining Backbase’s engagement banking expertise with Feedzai’s advanced security capabilities, we’re giving financial institutions the complete package — superior customer experience and intelligent fraud prevention in one integrated platform,” Backbase CEO and Founder Jouk Pleiter said. “Together, we’re setting a new standard for how banks can build trusted digital relationships with their customers.”

Headquartered in San Mateo, California, Feedzai offers technology that leverages AI to help businesses fight fraud and financial crime. The company’s RiskOps platform uses machine learning and Big Data to detect and defend the world’s largest banks, payment providers, and merchants from malicious online actors. Founded in 2011 and now reaching 900 million people in 190 countries with its technology, Feedzai began 2025 by announcing a partnership with Credibanco to help the Colombian payment processing company strengthen its defenses against fraud.

“As the financial services industry evolves, security can no longer be an afterthought — it must be woven into the very fabric of the customer journey,” Feedzai CEO and Co-Founder Nuno Sebastiao said. “By partnering with Backbase, we’re empowering financial institutions to deliver a unified, seamless journey that not only protects customers from fraud but also ensures they feel valued, understood, and safe.”

Backbase has been a Finovate alum since 2009. The company has won Finovate’s Best of Show award four times, including back-to-back wins at FinovateEurope in 2017 and 2018. Backbase’s Engagement Banking Platform is a composable solution that empowers banks to accelerate their digital transformations by progressively modernizing each step of the customer journey, including onboarding, servicing, lending, and investing.

Backbase’s partnership news comes a few weeks after it announced it was teaming up with Alliant Credit Union, a digital-only financial institution with $20 billion in assets and more than 900,000 members. The company also recently partnered with Nordic digital transformation consultancy Knowit. Founded in 2003, Backbase is headquartered in Amsterdam.

Photo by Liene Ratniece

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Spreedly Partners with Trustly to Give Clients Pay-by-Bank Capabilities

Spreedly Partners with Trustly to Give Clients Pay-by-Bank Capabilities
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Spreedly, Trustly
  • Spreedly and Trustly have partnered to offer Spreedly’s merchant clients pay-by-bank capabilities through its Open Payments platform.
  • Adding the new payment option will help merchants enhance payment flexibility, conversion rates, and consumer insights.
  • Pay-by-bank adoption is growing in 2025 due to lower fees and faster settlement times for merchants. To encourage its use, some merchants offer monetary incentives at checkout.

Open payments platform Spreedly has teamed up with pay-by-bank expert Trustly this week. The two are collaborating to offer Spreedly’s merchant clients access to Trustly’s pay-by-bank capabilities.

Under the partnership, Trustly will take charge of the pay-by-bank tools in Spreedly’s Open Payments platform. Spreedly anticipates that merchants who use the new pay-by-bank tools will see improved conversion rates without having to overhaul their existing payments infrastructure. The company also envisions that the new capabilities will empower merchants with more payment flexibility and further insight into consumer habits. 

“Our collaboration with Spreedly represents a significant step towards a unified payments experience becoming the industry standard,” said Trustly VP of Enterprise Growth Ross McFerrin. “By integrating Trustly’s pay-by-bank offerings with Spreedly’s orchestration platform, we’re providing merchants an all-in-one solution that allows them to choose the best payment methods to offer their customers while simplifying the complexity of payment integrations.”

Sweden-based Trustly’s pay-by-bank network currently processes over $42 billion in transaction volume each year. The company offers Trustly Pay for open banking payments and Trustly Payouts for payouts. It also provides open data tools like Trustly Connect for data retrieval, Trustly ID for identity verification, and Trustly Insights for real-time underwriting decisions. In 2018, Nordic Capital bought Trustly for an undisclosed amount, and since then, Trustly has acquired three companies of its own, including SlimPay, Ecospend, and PayWithMyBank. The company anticipates that partnering with North Carolina-based Spreedly will increase its market reach in the U.S.

Spreedly was founded in 2007 to help merchants build their payments stack on a single platform. The company’s payment orchestration stack offers merchants more than 140 gateway connections of more than 40 payment methods. Spreedly also offers fraud prevention, payment optimization tools, and more.

“Spreedly has long demonstrated its ability to securely vault and orchestrate payments across card networks, and by partnering with Trustly, we are excited to extend these benefits by embedding pay-by-bank flows directly into our Open Payments platform,” said Spreedly VP of Global Partnerships and Business Development Rose Francois. “Together, we’ll enhance payment flexibility and security, empowering merchants to meet the growing demand for efficient, data-driven payment solutions, while driving stronger outcomes for the broader payments ecosystem.”

Pay-by-bank has been cited by analysts as one of the top trends to watch in 2025 as consumer and merchant adoption continues to grow. Merchants often favor pay-by-bank because of the lower fees and faster settlement times. And while consumers may be hesitant to ditch their credit cards in favor of pay-by-bank, some merchants offer a monetary incentive at the point of purchase to promote using pay-by-bank.

Photo by terence b

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