Social Investing App Public Secures $65 Million in Series C

Social Investing App Public Secures $65 Million in Series C

The Avengers may have a Hulk. But social investing app Public, which offers Millennial and older GenZ investors the ability to make commission-free fractional share investments in U.S. stocks and ETFs, has a Hawk.

The New York City-based company announced this week that it has closed a $65 million Series C round that featured participation from skateboarding legend Tony Hawk, as well as a host of VCs and angel investors.

“As technology continues to disrupt barriers, Public.com is creating a platform that makes investing accessible to everyone, while providing a place where they can share ideas and build their confidence as they build their portfolios,” Hawk said in a statement.

Public is not the only investment the famous skateboarder has made in his retirement. Hawk was an early investor in Nest, backed DocuSign, and put money into a San Diego brewery named Black Plague. Five years ago, Hawk participated in the Series C round for Blue Bottle Coffee, a roaster and retailer that offers coffee subscriptions. The company was purchased by Nestle two years later for $500 million. “I like startups because I like being on the ground floor of stuff,” Hawk told Reuters in 2017.

Public’s round was led by Accel. Joining in the Series C along with Hawk and Accel were Lakestar, Greycroft, and Advancit Capital – as well as former chairman and CEO of Time Warner Dick Parsons. The investment comes less than a year after the company’s successful Series B funding, and takes the firm’s total capital to $90 million.

Public is among a growing number of fintechs looking to capitalize on three of the most powerful trends in retail investing these days: commission-free trading, fractional share investing, and a rising demand for investment opportunities from Millennials entering their prime family formation years. In addition to enabling its members to make fractional share purchases of U.S. stocks and ETFs – investing as little as $5 – Public offers a transparent community of both subject-matter experts and fellow traders and investors to help newer members learn how to wisely participate in the markets.

“Our mission to change the culture of investing is resonating with a new generation of investors who value collaboration over competition,” Public.com co-CEO Leif Abraham said. “By building the social network for investing, we’re giving people a place to share ideas and discover new ways of thinking in the same place they invest.”

Hawk is not the only celebrity investor in Public. Also participating in the round was Mantis VC, a venture capital outfit founded by electronic music duo, The Chainsmokers. Launched in September with $35 million in commitments from investors like Mark Cuban and Keith Rabois, Mantis VC has also invested in startups like fitness app Fiton and mortgage-lending startup LoanSnap.

“We couldn’t be more thrilled about our investment in Public.com and the potential this company has,” MANTIS VC partner and member of The Chainsmokers, Alex Pall said. “We’re all about community and Public’s social focus makes the stock market a more inclusive space where everyone can get educated and excited about investing.”


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HooYu’s Investigate Platform Acquired in $5 Million Deal

HooYu’s Investigate Platform Acquired in $5 Million Deal

HooYu announced on Monday that GB Group (GBG), an identification verification specialist based in the U.K., has agreed to acquire its Investigate subsidiary in an all-share deal valued at approximately $5.34 million (£4 million).

“The acquisition of HooYu Investigate by an outstanding company like GBG is a testament to the technological achievement of the HooYu development team,” HooYu CEO Keith Marsden said. “We are now very excited to focus all our energy on taking the award-winning HooYu Identity platform forward.”

HooYu launched HooYu Investigate in 2017. The platform automates the fraud investigation process, leveraging data visualization to enhance the ability of users in compliance, anti-fraud, and law enforcement to identify and prevent cybercrime. GBG will add the technology to its portfolio of anti-fraud solutions, and both Investigate client contracts and the platform’s developers will join GBG as part of the transaction. HooYu will continue to run its digital customer onboarding and KYC solution, HooYu Identify, which includes NatWest and Vanquis Bank among its customers.

GBG CEO Chris Clark praised HooYu Investigate as an “exceptional product” that will complement GBG’s current business. He also looked forward to a future in which both the GBG and HooYu development teams are working together to build new solutions. “By joining forces with HooYu Investigate, GBG will create a scalable platform for growth, providing customers with a critical service to fight ever more sophisticated financial crime and reduce organizational risk in the U.K.” Clark said.

Founded in 2015 – and making its Finovate debut two years later at FinovateEurope – HooYu offers businesses configurable tools to make the customer boarding process easy for customers while ensuring maximum KYC compliance. With just a selfie taken by a smartphone or webcam, HooYu applies both traditional verification methods such as database checks with ID document validation, digital footprint analysis, and facial biometrics to provide an identity confidence score that reveals how many of the customer’s identity attributes (name, address, birthdate, etc.) can be confirmed. This gives businesses the insight they need not just for customer onboarding and KYC, but for age verification, customer due diligence remediation, and fraud prevention, as well.


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Acquisitions, E-commerce and the Latest in Australian Fintech

Acquisitions, E-commerce and the Latest in Australian Fintech

Some of the hottest headlines in international fintech in recent days involved industry innovators from the Land Down Under. Late in the week, financial consultancy firm Synechron announced that it had agreed to acquire Australian payments provider Attra. Headquartered in Melbourne, Attra is notable for being one of pure play payments solution providers in Australia, with reach throughout the region as well as into North America, Europe, and MENA. Attra will retain its brand identity post-acquisition.

Meanwhile, National Australia Bank (NAB) unveiled a new smart receipt solution developed in collaboration with Australian fintech Slyp. The offering, Slyp Smart Receipts, are available via the NAB mobile app, and enable NAB customers to automatically get itemized smart receipts from participating retailers.

“Receipts are a burden for customers, create unnecessary cost for businesses and have a negative impact to our environment,” Slyp CEO and co-founder Paul Weingarth said. “The introduction of smart receipts allows businesses to offer a seamless and frictionless customer experience far beyond what we know it as today.”

On the e-commerce front, the buy now pay later revolution rolls on. Zip, a BNPL company based in Australia, inked a deal with Facebook this week that will enable small businesses to use its installment payment service to pay for Facebook ads.

Zip’s partnership with Facebook is its second big, e-commerce collaboration in recent months. In August, the company teamed up with eBay, bringing its buy now pay later offering to the online marketplace.

Looking to learn more about fintech in Australia? Check out KPMG Australia’s report on the country’s fintech industry from last fall. And for a more recent snapshot, take a look at FintechNews Singapore’s “9 Hottest Aussie Fintech Startups” from earlier this year.


We’ve covered a healthy amount of international fintech news on the blog this week. Here’s a quick digest of what you might have missed.

Tink Lands $103 Million in Funding, Boosts Valuation to $824 Million – The new round for the Swedish fintech was co-led by new investor Eurazeo Growth and existing investor Dawn Capital.

Xoom Adds Money Transfer Capabilities to 12 African Countries – The expansion focuses on facilitating remittances to underbanked consumers in 12 African nations. 

How to Manage and Exceed Evolving Customer Expectations – Our interview with the co-founder of Vancouver, British Columbia, Canada-based FI.SPAN.


Here is our look at fintech around the world.

Asia-Pacific

  • Risk decisioning leader Provenir announces data integration partnership with Philippines-based alternative credit scoring company FinScore.
  • South Korean payments firm CHAI scores $60 million in Series B funding.
  • Mastercard and Pine Labs to bring their integrated buy now pay later solution to five markets in Southeast Asia early in 2021.

Sub-Saharan Africa

  • The Banker looks at how Nigeria’s fintech industry is thriving in the face of economic challenges.
  • TechFinancial reviews the growth of fintech in South Africa through the lens of the country’s Financial Sector Conduct Authority.
  • Convergence Partners, a South African technology investment management company, announces $5 million investment in sub-Saharan mobile money services company Channel VAS.

Central and Eastern Europe

  • German digital asset custody technology provider Bitbond partners with Bankhaus von Der Heydt to issue a Euro stablecoin on the Stellar network.
  • Hungary’s Magyar Nemzeti Bank (MNB) inks cooperation agreement with the Monetary Authority of Singapore to boost collaboration in fintech innovation between Hungary and Singapore.
  • Berlin-based plug and play, European securities API provider Upvest raises additional €five million to boost its Series A to €12 million.

Middle East and Northern Africa

  • Egyptian fintech Zeal Rewards secures “six-figure” seed investment from an unnamed angel investor.
  • Israeli entrepreneur Uri Levine predicts that the next unicorn from the MENA region will come from the UAE.
  • SME10x looks at how the buy now pay later movement is transforming ecommerce in the Middle East.

Central and Southern Asia

  • IBS Intelligence features five top digital lenders in India.
  • Bangalore-based i-exceed reports gains in digital onboarding adoption rates in corporate banking.
  • SafePay, a company that enables B2C payments, secures funding from new Pakistan-based VC firm backed by Gobi Ventures.

Latin America and the Caribbean

  • Bitso, a cryptocurrency platform based in Mexico, raises $62 million in Series B.
  • Cross border B2B paytech provider TransferMate announces licensing approvals in Brazil and Chile.
  • Mexican challenger bank albo secures $45 million in funding.

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API Security Innovator Salt Security Locks in $30 Million

API Security Innovator Salt Security Locks in $30 Million

Courtesy of a Series B funding round led by Sequoia Capital, API protection platform company Salt Security has doubled its total equity capital. The company, which is based in Palo Alto, California, picked up $30 million in new funding this week. Existing investors Tenaya Capital, S Capital VC, and Y Combinator also participated in the investment.

“APIs have become a fundamental unit of software,” Sequoia Partner Carl Eschenbach explained. “Salt Security enables organizations to discover APIs, prevent real-time attacks, and facilitate remediation, so customers can continue to operate and innovate in an increasingly digitized world.”

Salt Security’s Series B comes only a few months after the company completed a $20 million Series A round in June. The firm said that the new capital will help the company invest in product development, sales and marketing, and customer acquisition in 2021. As part of the deal, Eschenbach, as well as representatives from Tenaya Capital and S Capital, will join Salt Security’s board of directors.

“Raising both Series A and B, growing our customer base 200%, and building unmatched technical capabilities – all during this tumultuous year – gives us a formidable lead in the market we created and defined,” Salt Security co-founder and CEO Roey Eliyahu said. “Having someone of Carl’s caliber and experience guiding us will simply accelerate our success in the API security market.”

Salt Security notes that its API Protection Platform is the only patented API security solution designed for each stage of the API lifecycle. The technology learns the behavior of company APIs at a granular level, and uses machine learning and AI to automatically identify and block API attacks. The technology can be deployed in minutes with no configuration or customization required.

Salt’s platform was named a 2020 Cool Vendor in API Strategy by Gartner and a SINET 16 Innovator Winner for 2020. This fall, the company has announced partnerships with Carrefour, a French multi-national retail corporation, and U.S.-based, global colocation data center company Equinix.

Founded in 2016, Salt Security is headquartered in Silicon Valley, California; and in Israel. Forbes featured company co-founder Eliyahu in its 30 Under 30 roster earlier this month.


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Xoom Adds Money Transfer Capabilities to 12 African Countries

Xoom Adds Money Transfer Capabilities to 12 African Countries

There may not be snow in Africa this Christmastime, but there will be cross-border payments.

PayPal-owned money transfer service Xoom announced today that customers can send money transfers to consumers in 12 Africa-based countries.

The expansion focuses on facilitating remittances to underbanked consumers. Xoom customers in the U.S., Europe, and Canada can now send funds directly to mobile wallets of users in Burundi, Cameroon, Ghana, Kenya, Madagascar, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia, and Zimbabwe. Xoom will add more countries to this list next year.

“Sending money to Africa through traditional channels has always been expensive. We wanted to help bring down the cost and speed up the process to boost financial inclusion,” said Xoom VP and GM Julian King. “There is nowhere else in the world that moves more money on mobile phones than Sub-Saharan Africa. While there are only five bank branches per 100,000 people as of 2019, there are 1.04 billion registered mobile money accounts in Sub-Saharan Africa.”

Today’s launch is an enhancement of Xoom’s existing offerings in Africa, which already enable money transfers for cash pick-up, direct bank deposits, and mobile reloads to 41 countries in Africa.

Xoom’s money transfer service not only minimizes fees, but also increases transparency surrounding fees. While the cost of sending $200 to the Sub-Saharan African region averaged $18 in 2018, Xoom’s rate to send funds to a mobile wallet in Zambia, for example, is $0.99 when sent with a debit or credit card and free when sent via a bank transfer or the user’s PayPal balance.

This lower cost helps promote financial inclusion, drive economic growth, and lift underserved communities out of poverty.


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Stripe Ties into Zuora

Stripe Ties into Zuora

Subscription management platform provider Zuora is partnering with payments infrastructure player Stripe this week.

Through the partnership, Zuora has integrated Stripe into its subscription offerings to enable its 1,000 clients to enhance their payment capabilities. Zuora customers can now access Stripe’s payment tools from the Zuora platform.

“Winning subscription companies want to use the best technologies to build a competitive advantage,” said Zuora Chief Product Officer Chris Battles. “We’re thrilled to work with Stripe in an ecosystem of new world partners that helps to optimize and automate processes throughout our customers’ journey in the Subscription Economy.”

Some of the advanced capabilities include:

  • Integrated payment processing capabilities into the Zuora platform, including fraud detection, AI-enhanced payment retries, and payment processing capabilities.
  • Increased payments flexibility so subscribers can pay when, where, and how they choose across a range of subscription options.
  • A modern ecosystem that can scale to meet clients’ global growth.

Zuora has more than 1,000 clients, including Box, Ford, Penske Media Corporation, Schneider Electric, Siemens, Xplornet, and Zoom. The company’s platform helps firms manage recurring subscription business models and serves as a hub to automate the entire subscription order-to-revenue process across billing and revenue recognition. Zuora was founded in 2007 and is headquartered in California.

Valued at $36 billion, Stripe helps businesses of all sizes with finance and treasury management functions.

“Stripe’s mission is to grow the GDP of the internet, and this partnership with Zuora extends that goal by giving Zuora users access to the full capabilities of Stripe payments,” said Stripe’s Chief Business Officer Billy Alvarado. “With the internet powering a rapidly growing portion of the global economy, it’s never been more important to provide subscription businesses with the economic infrastructure they need.”


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Financial Education Specialist gohenry Raises $40 Million in New Funding

Financial Education Specialist gohenry Raises $40 Million in New Funding

Yesterday we shared news that EVERFI and Sallie Mae were teaming up to promote financial literacy for high school kids in California. Today we share news on another youth finance-related front. gohenry, which specializes in providing financial education for youth and their families, has secured $40 million in financing. The round was led by Edison Partners, and featured participation from Gaia Capital Partners, Citi Ventures, and Muse Capital.

The funding takes the company’s total capital to more than $56 million.

“For too long, kids have been locked out of the digital economy and parents lacked the tools to help their children gain confidence with money and finances,” gohenry CEO Alex Zivoder said. “gohenry was the first to respond to these needs in 2012 when we launched a groundbreaking financial education app and debit card that truly empowered children. In 2020, we’ve achieved three key milestones: becoming profitable which many B2C fintechs seek, raising $40 million during COVID, and partnering with world leading funds. All three will help us fuel our U.S. expansion.”

gohenry specializes in helping kids aged six to eighteen develop sound money and financial habits. Launched in the U.K. as a financial literacy app and debit card in 2012, the company has grown its offerings to include its Teen and Eco cards – both of which feature built-in parental controls. The company’s solutions enable youth to learn how to manage allowances and other earnings and give parents the opportunity to guide their children as they learn the basics of digital finance. The company noted that young customers on its platform earned “nearly $150 million in allowances” and “contributed more than $140 million back into the global economy.”

As part of the agreement, Edison Partners managing director Chris Sugden will join gohenry’s board of directors.

“gohenry is catering to millions of parents who are looking to raise smart, financially literate children but are currently underserved by existing solutions,” Sugden said. “We’re thrilled to partner with Alex and the gohenry management team on this next milestone in their growth journey and look forward to realizing their ambitions to improve the financial fitness of kids across the globe.” 


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Upserve Acquired by Lightspeed in $430 Million Deal

Upserve Acquired by Lightspeed in $430 Million Deal

Restaurant payments and analytics innovator Upserve is the latest company to be acquired by point of sale (POS) and ecommerce solutions firm Lightspeed.

The $430 million purchase was announced earlier this week, marking Lightspeed’s 10th acquisition since it was founded in 2005. The deal comes on the heels of Lightspeed’s November purchase of ShopKeep that is anticipated to close for $440 million.

“Lightspeed is quickly emerging as a world-leading commerce platform for SMBs and partnering with them to deliver data-based insights through a single digital hub was a natural choice,” said Upserve CEO Sheryl Hoskins. “Together we look forward to empowering North American restaurateurs to deliver superior guest experiences and make them wildly successful.”

Lightspeed anticipates the acquisition will accelerate product innovation and boost its analytics commerce platform. The company’s purchase of Upserve will also help Lightspeed reach an additional 7,000 U.S.-based clients in the hospitality industry.

Originally founded under the name Swipely in 2009, the company rebranded to Upserve in 2016 to reflect the company’s focus on the restaurant industry.

Upserve has raised a total of $40.5 million from 14 investors, including Greylock and Vista Equity Partners. From October 2019 to October 2020, the company recorded approximately $40 million in revenue.


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ReceiptHero Secures €2 Million Seed Investment

ReceiptHero Secures €2 Million Seed Investment

It’s been a grand week for Finland’s ReceiptHero. The company announced a few days ago that it was teaming up with SEB Kort to have its digital receipt functionality integrated into SEB Kort’s corporate card, Eurocard. Then, we learned that ReceiptHero had inked a deal with fellow Finovate alum ETRONIKA that will enable the launch of the first e-receipt solution in the Baltic region. The new offering will allow ETRONIKA’s business customers to use their KASU retail network management system and ReceiptHero’s technology to issue digital receipts to their customers.

“ETRONIKA has built a truly modern retail chain management and POS product and we are thrilled to be partnering on a wider partnership that allows us the initial steps of building out the Baltic ecosystem.” ReceiptHero CEO Joel Ojala said.

Today comes more news from the Finland-based fintech. Courtesy of an investment from VC Lifeline Ventures, Superhero Capital, and Vidici Ventures of Sweden, ReceiptHero has picked up $2.43 million (€2 million) in seed funding.

“We’re making some real strides now with merchants and potential bank partners,” Ojala said. “We’ve hit an inflection point where banks understand the potential of digital receipts and value for their customers. For merchants they feel safe with ReceiptHero protecting their customer data and payment information.”

Growing interest in ReceiptHero’s technology, which transmits digital receipts from merchants directly to customer banking or account apps, comes as Finland’s government has decreed that digital receipts will be mandatory by 2025. Finland launched a digital receipt pilot project in 2019 that saw more than 50,000 state workers shopping exclusively with merchants using ReceiptHero’s platform.

ReceiptHero made its Finovate debut earlier this year at FinovateEurope in Berlin. Headquartered in Helsinki, the company is also partnered with Nordea, integrating its technology with the bank’s Nordea Wallet offering at the beginning of last year. Other recent ReceiptHero partners include SKJ Systems, Diebold Nixdorf, and global IT system integrator CGI.


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PhonePe Makes Partial Split from Parent Company Walmart

PhonePe Makes Partial Split from Parent Company Walmart

PhonePe is selling a $700 million stake in its company to existing investors, including Walmart, which led the financing round. The digital wallet and online payments company will use the funding to distance itself from Flipkart, which Walmart purchased in 2018. As part of the deal, Flipkart’s ownership of PhonePe will drop from 100% to 87%, according to TechCrunch.

India-based PhonePe anticipates that the $700 million in capital– along with independence from parent company Flipkart, which operates an ecommerce division– will help boost its growth in the ever-growing digital payments arena.

Further cementing PhonePe’s independence, the company has appointed its own board of directors, including PhonePe Founder and CEO Sameer Nigam and former Flipkart executive Binny Bansal.

“We are really excited to have access to dedicated long-term capital to further our ambitions in the financial services distribution sector as well as creating large innovative growth platforms for India’s micro, small, and medium enterprises,” said Nigam.

Founded in 2015, PhonePe is estimated to be worth around $5.5 billion. The company anticipates it will be profitable by 2022 and plans to go public in 2023. PhonePe currently has 100 million active users and recorded almost one billion transactions on its platform in October.


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Lloyds Bank Facilitates Real Time Cross-Border Payments

Lloyds Bank Facilitates Real Time Cross-Border Payments

Lloyds Banking Group is making instant, cross-border payments possible, thanks to a partnership with global secure financial messaging services provider SWIFT.

The U.K.-based bank announced it is the first bank to go live with SWIFT’s gpi Instant Connection, a new service that helps consumers and businesses send money in seconds across the globe.

gpi, which stands for Global Payments Initiative, was launched in 2017 to facilitate international payments. Since then, SWIFT has amassed more than 4,000 financial institution clients who collectively use gpi to send more than $300 billion each day in more than 150 currencies.

“At Lloyds Bank we strive to continually evolve and create innovative solutions for our clients,” said Ed Thurman, Managing Director and Head of Global Transaction Banking at Lloyds Banking Group. “The gpi Instant service is set to be a game changer in cross-border payments and we are very excited to be the first bank globally to offer the service here into the U.K.”

The new service leverages SWIFT gpi, SWIFT’s high-speed cross-border rails, and connects with a country’s own real-time infrastructure. In Lloyds’ case, SWIFT gpi is connecting with the U.K.’s Faster Payments, the region’s own real-time payments initiative.

“We developed gpi Instant with our community through responsible innovation and equal emphasis on four core needs — speed, security, transparency and compliance,” said David Watson, Chief Strategy Officer at SWIFT. “We look forward to continuing our work with market infrastructures and financial institutions to bring the benefits of seamless cross-border payments to customers across the globe.”

The launch with Lloyds comes after SWIFT tested out the service earlier this year in a pilot with Lloyds, Barclays, Commonwealth Bank of Australia, DBS, Wells Fargo, and BBVA. The real-time payments capabilities are part of SWIFT’s new strategy to retool cross-border infrastructure to facilitate instant and frictionless transactions.


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MX Brings the Benefits of Data Enhancement to VyStar Credit Union

MX Brings the Benefits of Data Enhancement to VyStar Credit Union

With more than $9 billion in assets, VyStar Credit Union is the latest community-based financial institution to partner with open finance money experience innovator MX. VyStar, one of the 20 largest credit unions in the U.S., will leverage MX’s data connectivity APIs, account aggregation, and data enhancement tools to enhance the online experience for its more than 735,000 members in Georgia and northeastern Florida.

“Our strategy is to harness innovation and strategic fintech relationships that provide the best experiences that will improve our members’ financial well-being, and this partnership with an innovative fintech like MX is a big step in furthering that strategy,” Joseph R. Colca, SVP of Digital Experience at VyStar Credit Union, said. “We’ve been impressed not only with MX’s world-class data enhancement tools, but also with the alignment of our missions to empower financial strength through member advocacy.”

The partnership will enable members of VyStar Credit Union to aggregate and view accounts from all of their financial institutions into a single interface. MX’s technology collects, cleanses, and enriches transaction data, providing insights that help users more accurately plan their financial futures, as well as take smarter financial actions in the present. VyStar believes that embracing the technology will enable the Jacksonville, Florida-based credit union to gain wallet share among its customers by removing any need to log in to other apps or websites.

“With MX, VyStar is giving its customers greater clarity into their finances, which is exactly the kind of innovation, partnership, and money experience that MX loves to enable through our powerful data platform,” Chief Customer Officer for MX Nate Gardner said.

A multiple time Finovate Best of Show winner, MX most recently demonstrated its technology last year at FinovateFall. A leading data platform for banks, credit unions, fintechs, and other financial services providers, MX offers solutions to quickly and accurately collect, enhance, analyze, and present financial data. The company enables financial institutions to better understand and serve their customers, and helps them empower their customers to make better, more informed financial decisions.

Founded in 2010 and headquartered in Lehi, Utah, MX has made headlines in recent months via its partnerships with companies like Borrowell, a leading credit education firm based in Toronto, Ontario, Canada; Advicent, a SaaS technology solution provider for financial advisors and planners headquartered in Milwaukee, Wisconsin; and Central Pacific Bank , a full-service financial institution based in Honolulu, Hawaii. Named to the 2020 CB Insights Fintech 250 and highlighted as one of the fastest growing companies in Utah, MX unveiled its open finance platform, MX Open, in September. Ryan Caldwell is co-founder and CEO.


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