Temenos Acquires Avoka in $245 Million Deal

In a $245 million deal, banking software company Temenos will acquire fellow Finovate alum Avoka. The transaction, which is subject to regulatory approvals, is expected to close in the first quarter of next year.

A public company, Temenos will finance the purchase with cash and debt. The deal marks the company’s 14th acquisition since it was founded in 1993 and its second purchase this year, following the buy of its British competitor, Fidessa Group for $1.96 billion in February.

Temenos will integrate Avoka’s customer acquisition and onboarding technology into its Digital Front Office product, which serves 300 banking clients. “This is a highly strategic acquisition for Temenos as it not only reinforces our leadership position within the Digital Front Office space but it also strengthens our capabilities in the U.S. market where we are seeing significant traction as banks accelerate their digital transformation plans,” said Max Chuard, chief financial officer and chief operating officer of Temenos. “The combination of Avoka’s capabilities along with the extensive Temenos Digital Front Office product offers banks the most complete set of services which through APIs can be easily integrated either with the market-leading Temenos T24 Core Banking product or as a standalone on a third party banking system.”

Since it was founded in 2002, Avoka has grown to offer customer acquisition and onboarding technology to the financial services sector as well as government entities. In fact, the company’s first major client was the Australia Capital Territory government. Avoka also provides form filling technology to Australia’s Federal Department of Industry, Innovation, and Science’s business.gov.au portal. And according to ITNews, the company has provided services to Australia’s Defense, Centrelink, Attorney General’s Department, Customs and Border Protection, AUSTRAC, Education, Home Affairs, Human Services, as well as state and local clients. Temenos has not disclosed its plans for the government side of Avoka’s business.

Avoka CEO Philip Copeland said, “By combining our strengths with Temenos’ expertise and reach, we will expand our scope and scale to deliver winning omni-channel, digital experience solutions to banks globally. The combination of Temenos and Avoka is an excellent fit for our customers and employees and will catapult our growth to the next stage. Together, with the leadership on both sides, we are committed to the group’s future success.”

Founded in 1993, Temenos debuted its Connect Mobile Banking application at FinovateEurope 2015 in London. Last month marked the company’s 25th birthday. With clients in 145+ countries, Temenos employs more than 4,600 people in 63 offices. The company has a market capitalization of $9.14 billion.

Avoka most recently demoed Transaction Insights at FinovateEurope 2017. Transaction Insights is a digital account opening tool that helps financial services companies measure where customers are spending time, making errors, requesting help, or abandoning their session. Headquartered in Colorado, Avoka has offices in London, England and Sydney, Australia. The company has digitized more than 100 million transactions for 150+ global clients. Prior to today’s acquisition, Avoka had raised $28 million.

Finovate Alumni News

On Finovate.com

  • Temenos Acquires Avoka in $245 Million Deal.
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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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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.

Avoka Enables 40+ App Digitization for First Tech FCU

First Tech Federal Credit Union, a $12+ billion credit union based in San Jose, California, has leveraged technology from Avoka to deploy an omnichannel digital platform that digitizes account opening for more than 40 offerings. These include deposit accounts, home loans, credit cards, insurance and more. The result is an enhanced, more efficient experience for members and lower application abandon rates for the firm.

Mike Upton, chief digital officer at First Tech FCU, called the launch “transformational,” and the metrics readily support the claim. He noted that the new platform has enabled more than 2,300 applications from all channels to pass through the platform in the first week of operation. In the first few weeks after the launch, overall completion rates had rallied to 65%, well above industry averages which are closer to 20%. Additionally, using Avoka’s Insights analytics capability enabled First Tech to determine that the time required by its members to complete account opening applications had been reduced by nearly 50%.

“The results speak for themselves,” Avoka general manager for North America David Gaydon said. “As far as we can tell, no community bank or credit union in North America has as many product applications available online as First Tech Credit Union.”

Founded in 2002 and headquartered in Denver, Colorado, Avoka demonstrated its Transact Insights offering at FinovateEurope 2017. This summer, the company released its Springboard Deposit Account Opening Solution, an off-the-shelf technology that combines digital KYC, fraud and risk evaluation, and funding to enhance customer acquisition and onboarding. In May, RACQ Bank of Australia announced that it would partner with Avoka, bringing digital account opening to the world’s first automobile club to launch a bank. Also this spring, the company teamed up with Alpine Bank – a Colorado-based FI with more than $3.5 billion in assets, using its Avoka Transact platform to enhance account opening, loan application, and business onboarding processes.

Avoka has raised $28 million in funding, and includes Regal Funds Management, Moelis Australia Asset Management, and individual investor Roger Allen among its investors. Philip Copeland is CEO.

Avoka Unveils Springboard Deposit Account Opening Solution

Could Avoka make digital customer acquisition any easier? With the release of its Springboard Deposit Account Opening Solution, Avoka is offering FIs an off-the-shelf solution that integrates digital KYC, fraud and risk evaluation, and funding that will help them provide “outstanding customer acquisition and onboarding journeys.” In its announcement, Avoka cited Aite Group Senior Analyst Tiffani Montez who said the new solution “gives financial institutions a digital account opening and on boarding solution prebuilt with best-in-class customer experience and Fintech integration.”

Built on Avoka’s Transact platform, Springboard Deposit Account Opening leverages technologies from a number of partners to deliver a range of features. These include Data Pre-Fill, courtesy of an integration with Mitek’s Mobile Fill solution; Fraud Screening and Scoring via iovation’s FraudForce technology; and Risk Screening using ChexSystems’ Product Suite. Address Lookup and Instant Funding are also components of the new solution. The Springboard Deposit Account Opening Solution features configurable branding, decision rules, and deposit account type options, as well.

Avoka Chief Product Officer Steve Demchuk called digital account opening “the most rapidly changing capability on the U.S. retail banking landscape.” He cited a company report from earlier this year that pointed to a large and growing gap between the digital account opening capabilities of larger banks and those of smaller regional and community banks and credit unions. “It’s clear consumers already expect a first-class digital experience for deposit opening, so banks of all sizes must act fast to remain competitive,” Demchuk said.

At its most recent Finovate appearance – FinovateEurope 2017 – two-time Best of Show winner Avoka demonstrated the Transact Insights module of its Transact digital sales platform. Insights continuously optimizes the account opening journey by measuring and analyzing how customers progressing through the application process, noting areas of friction, requests for assistance, and even abandonment. This enables businesses to quickly spot problems in the process, make necessary changes, and then measure results.

Recent headlines for Avoka include the company’s partnership with RACQ Bank of Australia to enhance account opening and on boarding at the newly-launched financial institution – the first bank in the world to be opened by an automobile club. In April, Avoka teamed up with Alpine Bank, a Colorado-based bank with more than $3.5 billion in assets that will use the company’s Transact solution to support expansion and better serve current customers.

Avoka has raised $28 million in funding courtesy of rounds led by Moelis Australia Asset Management and professional investor Roger Allen. Philip Copeland is CEO.

Finovate Alumni News

On Finovate.com

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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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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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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.

Avoka Partners with Alpine Bank to Provide Custom Account Opening Experiences

Customer acquisition and onboarding technology innovator Avoka has partnered with Alpine Bank, who will use the multiple Best of Show winner’s Avoka Transact platform to enhance its account opening, loan application, and business onboarding processes.

The solution will integrate the company’s core banking platforms – including Silverlake System from Finovate alum Jack Henry – to provide a thoroughly digital account-opening experience for the Colorado-based bank’s customers. The new account opening experience will include ID verification, funding, and immediate establishment of the account. And as an omnichannel solution, the technology enables users to begin an application on one channel (i.e., at home or office) and complete the application in another (i.e., in branch).

“One of the reasons we chose Avoka is because we did not want the limitations of an off-the-shelf system that would limit our ability to fully serve customer needs and expectations,” Alpine Chief Digital Officer Andrew Karow explained. He added that Avoka’s technology will enable Alpine Bank – with assets of more than $3.5 billion and 38 banking offices across Colorado – to “reach beyond our current branch network” as well as better serve existing customers.

David Gaydon, GM for Avoka North America, praised Alpine Bank’s embrace of technology as a way to help drive expansion into new markets. “Alpine Bank is approaching their growth in the most innovative way possible,” Gaydon said, “using proven technology to build a competitive advantage. Alpine’s expansion plan to serve all Colorado residents across the Western Slope and the Front Range alike increase their footprint in the most efficient way possible.”

“Coloradans will be able to open accounts on their mobile phones with a regional bank that puts Colorado first,” the Avoka North America GM added.

Headquartered in Denver, Colorado; London, England; and Sydney, Australia, Avoka demonstrated its Transact Insights technology at FinovateEurope 2017. Insights is a module of the company’s Transact 5 platform, and gives firms insights and analytics that help optimize the account opening process by identifying areas of friction or abandonment for customers. Avoka counts five of the top 10 banks in Australia, four of the top 10 banks in Europe, and eight of the top 50 banks in the U.S. among its customers, and has raised $28 million in funding. Founded in 2002, the company is led by co-founder and CEO Philip Copeland.

Finovate Alumni News

On Finovate.com

  • Avoka Partners with Alpine Bank to Provide Custom Account Opening Experiences.
  • Fidor’s New Partnership Takes Aim at Financial Inclusion.

Around the web

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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.