Daily news Archives - Page 123 of 133

FIS Unveils Portal to Help SMEs Access PPP Loan Forgiveness

By David Penn Posted on May 12, 2020
Categories: Alumni News, Daily news, FIS

Photo by **Andrea Piacquadio** from **Pexels**

There may be no second acts in politics. But with the Small Business Administration’s Paycheck Protection Program (PPP) rolling out the next phase in its loan forgiveness initiative for SMEs, it’s good to see that the economic rescue plan has another shot at getting it right.

We chronicled some of the challenges that PPP 1.0 faced. Fortunately, this time around, many of the cooperating financial institutions, financial services companies, and fintechs are in a better, more informed position to help make sure the businesses that need the help actually get the help.

One example of this is the new portal powered by the FIS Real-time Lending Platform. This portal, available to FIs and merchants participating in the SBA’s PPP, automates and streamlines the process of applying for loan forgiveness under the provisions of the new program.

“As a critical infrastructure provider, FIS is focused on making it as easy as possible for small businesses and merchants to complete the loan forgiveness process and help them get back to business as soon as possible,” FIS Head of Global Core Banking and Channels Rob Lee said. “Our new portal uses advanced automation technology to handle the entire process, reducing the time and complexity for businesses in getting forgiveness of the essential loans that are critical to their business.”

Using pre-filled applications and documentation uploads for efficiency, the portal figures loan forgiveness amounts, and allows FIs to review and e-sign the requests. The document packages are sent to the borrower and bank for e-signing and then, via the portal, the materials are submitted to the SBA for validation. The portal is 100% digital and can be easily deployed by banks who can get started by uploading a file of eligible loans from their current PPP customers. FIS notes that via its Real-Time Lending Platform, it has facilitated “billions” in PPP loan funds through lenders to SMEs whose businesses have been affected by the COVID-19 crisis.

A Finovate alum since 2013, FIS made fintech headlines last month when the company unveiled a new venture arm and a plan to invest $150 million in fintech startups. Last year, FIS was part of fintech’s biggest transactions of 2019 with its $34 billion acquisition of fellow Finovate alum Worldpay.

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Eltropy and Prisma Campaigns Help Credit Unions Better Engage Members

By David Penn Posted on May 11, 2020
Categories: Alumni News, Daily news, Eltropy, Prisma Campaigns

Text messaging platform Eltropy and omnichannel marketing innovator Prisma Campaigns have teamed up to help credit unions communicate more effectively with their customers. The new solution, which integrates technologies from both companies, will enable credit unions to leverage online banking, mobile banking, text, and SMS channels to launch targeted marketing campaigns.

“Increasingly, credit unions are hearing from members that they want (to use) text messaging to communicate,” Global Solution Manager at Prisma Campaigns Gastón Vizziano said. “Prisma Campaign’s omnichannel approach and ease-of-use of Eltropy’s platform make this new partnership a powerful value proposition for credit unions.”

Eltropy offers financial services companies a secure and compliant way to engage with their customers on the messaging platforms they prefer such as iMessage, Facebook Messenger, and WeChat. Demonstrating its technology at FinovateSpring (now FinovateWest) in 2018, Eltropy leverages AI to analyze 24 data points within message conversations in order to provide behavioral analytics that can guide institutions when marketing products and services to their customers.

Prisma Campaigns CEO Felipe Gil praised Eltropy’s ability to “give credit unions exactly what they want – personalized communications capabilities, in a way that is uncomplicated, secure, and compliant.” Founded in 2017, Prisma Campaigns leverages customer data to enable financial services companies to build and launch targeted, personalized marketing campaigns on both digital and non-digital channels. The Boston, Massachusetts-based company, which made its Finovate debut in 2018, partnered with fellow Finovate alum Jumio last month to empower credit unions to adopt automated digital ID verification technology.

Eltropy was founded in 2013 and is headquartered in Milpitas, California. Last month, the company announced that it had inked agreements with 12 credit unions ranging in size from $11 million Paducah Teachers Federal Credit Union to $3.92 billion BCU. Company CEO and co-founder Ashish Garg credited Eltropy’s relationship with the Credit Union National Association (CUNA) for its ability to secure the trust of these smaller, community-oriented financial institutions.

“We have been signing an average of two credit unions a week for the last seven weeks,” Garg said. “Team Eltropy is thankful for its partnership with CUNA and state leagues across the country who have helped accelerate our business by spreading awareness of our product throughout the industry.”

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Samsung and SoFi Team Up to Offer Debit Card

By Julie Muhn (@julieschicktanz) Posted on May 8, 2020
Categories: Daily news, Samsung, SoFi

Alternative finance solutions provider SoFi and Samsung’s Samsung Pay joined forces this week to launch a debit card.

The two have spent the last year collaborating to make a mobile-first money management platform with its own debit card and cash management account.

The initiative is part of Samsung’s broader Samsung Pay mobile payments platform that the company launched in 2015. Samsung’s mobile payments platform uses built-in magnetic secure transmission technology (MST) and NFC functionality to enable users to make contactless payments.

“Our vision is to help consumers better manage their money so that they can achieve their dreams and goals,” said Sang Ahn, Vice President and GM of Samsung Pay, North America Service Business, Samsung Electronics in a blog post. “Now more than ever, mobile financial services and money management tools will play an even bigger role in our daily lives while also opening up new possibilities.”

Specific details about the card are still pending.

The new debit card offering will provide Samsung with a unique way to compete with Apple’s Apple credit card. Compared to Apple’s credit card, however, Samsung’s debit card product sounds more sticky. That’s because budgeting and cash management features built into the app will encourage users to spend more time in Samsung’s app and will keep the company’s debit card– along with its mobile payments service– top-of-mind for consumers.

Samsung’s announcement also comes shortly after news leaked that Google has its own debit card in the works. The debit card will work in conjunction with the Google Pay app.

Samsung’s timing on the launch is fairly ideal, despite the global economic crisis. The coronavirus has turned consumers’ attention toward their finances. Because of this, many banks are seeing record downloads of and engagement with their mobile banking tools. This shift to digital, combined with the new low-touch economy when it comes to everyday payments, provides an ideal environment to launch a contactless payment option.

Despite these conditions, the challenger banking space is becoming increasingly crowded in the U.S. However, Samsung’s choice to partner with an existing player instead of creating a product from scratch is a favorable one.

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Currencycloud and Carta Worldwide Power Real-Time FX at the Point of Sale

By David Penn Posted on May 7, 2020
Categories: Alumni News, Currency Cloud, Daily news

Photo by **Ithalu Dominguez** from **Pexels**

B2B cross-border solutions provider Currencycloud is teaming up with Canadian transaction processor Carta Worldwide to bring transparency, accuracy, and cost-competitiveness to international transactions.

“This is an exciting partnership and the first of its kind, combining our respective skills sets to drive innovation and give customers further transparency on their international card payments,” Currencycloud co-founder and Head of Strategic Partnerships Steve Lemon said. He noted that the partnership would put customers “at the center of the offer” and enable issuers to offer real-time foreign exchange rates at the point of sale to fintechs and challenger banks.

The two companies said in a statement that they are presently in the development phase of the collaboration. Their first joint offering is expected in the second half of 2020.

“We are very excited about this partnership,” Carta Worldwide Managing Director EMEA Richard Wray added. “Carta’s innovative processing capabilities collaborating with one of the most reputable platforms in the industry will enable us to deliver some real change to customers across the world.”

Named one of Canada’s top fintechs by the Digital Finance Institute, Carta Worldwide specializes in processing mobile and prepaid transactions. Founded in 2006 and headquartered in Ontario, Canada, and London, U.K., the company includes Vodafone, Westpac NZ, and Novum Bank among its customers.

Offering 85 APIs across four modules – Collect, Convert, Pay, and Manage – that support the full, B2B cross border payments workflow, Currencycloud provides enterprise-grade payments solutions to partners such as Visa and Starling Bank. Headquartered in London and founded in 2012, Currencycloud is regulated in the U.K., the E.U., the U.S., and Canada. The company began the year with an $80 million Series E fundraising round that featured participation of new backers such as Siam Commercial Bank, SBI Group, and Visa – whose SVP and Treasurer Colleen Ostrowski joined Currencycloud’s board of directors.

More recently, Currencycloud announced a partnership with Derivative Path to enable community and regional banks to offer more FX and interest rate derivative trading options to customers. The company has been a Finovate alum since 2012, and demonstrated its Global Collections solution at our west coast conference in 2018.

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Emailage Acquired by LexisNexis Risk Solutions

By Julie Muhn (@julieschicktanz) Posted on May 7, 2020
Categories: Daily news, Emailage, Mergers & Acquisitions

Fraud prevention solutions provider Emailage recently announced it has been acquired. LexisNexis Risk Solutions, owned by parent company RELX, closed the deal for $480 million.

Emailage was founded in 2012 by Rajesh Pandey and Rei Carvalho. The company offers an email risk score that uses email address metadata to help businesses assess transactional risk and validate digital identities. Access to this data enables companies to expedite approvals, prevent chargebacks, and automate workflows. Emailage also offers a Digital Identity score that layers in additional data to offer businesses a fuller picture of the user’s online reputation.

LexisNexis Risk Solutions purchased Emailage to integrate the company’s email assessment capabilities into its Digital Identity Network offerings. The integration should be somewhat smooth since the two had an existing commercial partnership prior to the acquisition.

“This acquisition is a natural fit as LexisNexis Risk Solutions and Emailage are both committed to continuously evolving our solutions to combat fraud,” said LexisNexis Risk Solutions Business Services CEO Rick Trainor. “This acquisition will enhance and expand our email data intelligence to provide our customers a more comprehensive view of risk with minimal friction for their customers.”

This isn’t the first fintech RELX has snapped up to boost its fraud and risk management services. The firm has been making a steady stream of purchases in the sector, including ID Analytics, ThreatMetrix, Accuity, and ChoicePoint. RELX has also formed numerous partnerships in the space, including with BioCatch and Blockbid.

LexisNexis Risk Solutions initiated its purchase of Emailage before COVID-19 had overtaken the globe. However, the increased interest in security players is something we can expect to see more of as the virus steers us toward the low-touch economy and drives traditionally brick-and-mortar services into the digital realm.

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TransUnion Launches Fraud and Identity Unit

By Julie Muhn (@julieschicktanz) Posted on May 6, 2020
Categories: Daily news, TransUnion

Credit reporting agency TransUnion unveiled a new division this week that will unite the company’s fraud and risk offerings.

The new unit, Global Fraud & Identity Solutions Group, will tie together TransUnion’s identity verification and authentication tools that help businesses do everything from fight originations fraud to target consumers in their risk profile. The Global Fraud & Identity Solutions Group will also contain the company’s fraud detection and prevention solutions that range from detecting synthetic identities to providing background checks.

The initiative will also accelerate TransUnion’s go-to-market strategy for CallValidate and TransUnion IDVision with iovation. The CallValidate solution was formed in 2018 as the result of TransUnion’s acquisition of Callcredit Information Group. TransUnion’s IDVision solution is also the result of an acquisition the company completed in 2018.

TransUnion has brought on Shai Cohen, former general manager of RSA’s Fraud and Risk Intelligence business, to lead the effort. “We’re excited to bring in a proven leader from some of the world’s most respected cybersecurity and technology companies to unite these efforts and take our fraud prevention solutions to the next level,” said Tim Martin, executive vice president and chief global solutions officer at TransUnion.

The acceleration of a formalized fraud and risk division speaks to the global need for such solutions. The move comes at a time when demand for digital solutions has risen exponentially as consumers seek to conduct many aspects of their daily lives online during social distancing and stay-at-home orders.

TransUnion’s announcement comes on the same day its competitor Experian unveiled Precise ID Model Suite, a new fraud fighting solution. The tools are specifically aimed to help organizations distinguish between first party fraud and third party fraud to determine their best course of action.

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SEC Eases Crowdfunding Restrictions for Small Businesses

By Julie Muhn (@julieschicktanz) Posted on May 5, 2020
Categories: Daily news

The Securities and Exchange Commission (SEC) announced today that it is temporarily easing up on reporting requirements for small businesses that use crowdfunding as a means for fundraising.

Small businesses looking to raise between $107,000 and $250,000 via crowdfunding are not subject to financial statement review requirements. The SEC also said it will fast-track the approval of crowdfunding listings.

The move is in response to small business’ need for funding to stay afloat while stay-at-home orders have diminished consumer demand– and therefore, revenue. While some were aided by the government’s stimulus package, the Paycheck Protection Plan, many small businesses either did not qualify for the funds or were not able to submit their application.

These small businesses may now more easily solicit the American people to help. “In the current environment, many established small businesses are facing challenges accessing urgently needed capital in a timely and cost-effective manner,” said SEC Chairman Jay Clayton. “Today’s action responds to feedback we have received from our Small Business Capital Formation Advisory Committee and others about the difficulties these companies may face in conducting an offering within a time frame that meets pressing capital needs, while continuing to provide appropriate protections for investors.”

To benefit, companies must disclose to investors that they are relying on the money because of COVID-19. Fundraisers must also meet eligibility requirements, including:

Must have been organized and operating for longer than six months prior to the start of the offering

Must be a U.S. business

Must not be a blank check or an investment company

Must have complied with Securities Act requirements in previous crowdfunding campaigns

The relaxed requirements will be in place until the end of August, so small businesses have just under four months to initiate their campaigns.

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Bento for Business Names New CEO; Partners with San Francisco Achievers

By David Penn Posted on May 5, 2020
Categories: Alumni News, Bento for Business, Daily news

Photo by **Kaboompics .com** from **Pexels**

Small business expense management platform Bento for Business has a new man at the top. The company announced today that Guido Schulz will join the company as its new CEO. Schulz will team up with co-founder Farhan Ahmad who will remain as chairman of the company’s board of directors.

“Bento for Business has built an incredibly intuitive product that directly addresses the core cash flow and operational problems faced by the businesses that drive much of our economy, create jobs, and help build our communities,” Shulz explained. He called expense management “the single largest area of opportunity” for small businesses.

Founded in 2014, Bento for Business provides expense management solutions that are designed specifically for small businesses and nonprofits. Bento offers business debit cards with spending controls – including virtual cards that can be issued and used instantly – as well as Bento Pay, a B2B digital payments service that only requires the fund recipient’s email address in order to send money. Bento made its Finovate debut at our west coast conference in 2015.

“As we’ve reached a new phase of growth ourselves, bringing on Guido is an important step for delivering the same exceptional experience to businesses as Bento’s footprint continues to expand,” Ahmad said. He praised Schulz’s record in scaling companies and said he looked forward to working together to “deliver a healthy bottom line for businesses through unprecedented visibility and control over monthly expenses.”

Schulz comes to Bento from global hospitality payment gateway provider Merchant Link, where he was Chief Commercial and Strategy Officer. The company was acquired by Shift4 last August. Previously, Schulz worked for Bluefin Payment Systems, where he was also Chief Commercial Officer and, before that, at AFEX as Global EVP and Chief Strategy Officer. He was educated at the University of Erlangen-Nuremberg and was a visiting scholar at the University of Notre Dame.

Bento’s C-suite addition comes almost a year after the company bolstered its executive ranks with the addition of Paula Bachman as Chief Financial Officer. The news also arrives as the company announces a partnership with San Francisco Achievers, a youth development program that is using the Bento for Business app to manage scholarship funds and learn responsible budgeting habits.

“We have an orientation for our scholarship students,” Duane Wilson, the program’s Executive Director explained. “For some of them, this is their very first card. It allows them to have the experience.”

Headquartered in San Francisco, California, Bento for Business has raised $18.5 million in funding. The company includes Edison Partners, Anthemis Group, and Comcast Ventures among its investors.

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Robinhood Raises $280 Million; Earns $8+ Billion Valuation

By David Penn Posted on May 4, 2020
Categories: Daily news

Score another bullseye for Robinhood.

The millennial-focused social trading and investing app, which drew criticism during the market meltdown in March for repeated outages, is now sitting with $280 million in additional funding. The new capital comes courtesy of a just-completed Series F round led by Sequoia Capital, and gives the company a valuation of $8.3 billion. NEA, Ribbit Capital, 9Yards Capital, and Unusual Ventures also participated in the round.

“Amid challenging times and market volatility, we’re humbled that people are turning to Robinhood to participate in the markets and build their financial future,” the company’s blog read this week. The announcement included data points such as the three million funded accounts the company has added in 2020, as well as Robinhood’s effective outreach to new investors. The company also noted that the funding would be used to scale the Robinhood platform, develop new solutions, and add to its workforce.

Fortune’s coverage of Robinhood’s fundraising features observations on the company’s rumored IPO, the diversification of its revenue and profitability, as well as a potential launch in the U.K.

Founded in 2013 by Baiju Bhatt and Vladimir Tenev, Robinhood offers users the ability to trade and invest, commission-free, in a variety of assets including stocks and ETFs, options, gold, and cryptocurrencies. The app-based platform supports fractional share purchasing, enabling investors to buy equity in thousands of companies with as little as $1, and provides 0.30% APY on uninvested cash. The company began the year with news that its financial newsletter and podcast, Robinhood Snacks, had surpassed 10 million downloads. More recently, to help customers understand recent turbulence in the financial markets, Robinhood unveiled a new Market Volatility page with information on the various steps exchanges take to help mitigate market extremes.

Robinhood became notorious in some circles for the “race to zero” movement last fall in which major brokerages including E-Trade, Charles Schwab, and TD Ameritrade announced plans to eliminate trading fees in stocks and ETFs. Competition with Robinhood was cited as the reason.

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Post-Compromise Fraud Specialist Breach Clarity Partners with Xtensifi

By David Penn Posted on May 4, 2020
Categories: Alumni News, Breach Clarity, Daily news

A collaboration between fraud prevention and detection company Breach Clarity and digital consulting firm Xtensifi will bring additional machine learning technology to bear in the battle against cybercrime in financial services. The new integration will enable the company’s Breach Clarity Premium for Financial Services platform to empower banks, credit unions, brokerage firms and insurance companies to address the impact of data breaches – from financial losses to identity theft – after they happen.

“We sought out a company we knew would execute our vision and provide us with the knowledge and expertise to get these entirely new products to market,” Breach Clarity CEO Jim Van Dyke said. He credited Xtensifi not only for helping develop the new platform, but also for giving the company the ability to market its technology to a new client base: financial services companies. “Initially consumer focused, we are now able to provide financial institutions with hyper-personalized, customer-level breach risk intelligence, capable of making a measurable difference in a variety of areas – from customer engagement to fraud loss mitigation,” Van Dyke explained.

Founded in 2019 and based in Walnut Creek, California, Breach Clarity analyzes more than 1,000 elements to gauge and score the risk level of a data breach. The company’s proprietary, machine learning algorithm analyzes 50 data breaches a week on average, and Breach Clarity said that it has 4,000+ such incidents in its database. This resource is maintained by the Identity Theft Resource Center.

“Breach Clarity is working to revolutionize the fraud detection, prevention, and mitigation landscape by providing a greater degree of transparency into breaches and their effects,” Xtensifi CEO George Kelley said. “Providing the industry with more clarity, confidence, and direction around breaches will ultimately result in stronger consumer financial health and safety.”

Like a number of companies in the fintech space, Breach Clarity is making its services easier to access during the COVID-19 crisis. More than a month ago, the company announced that it was waiving per-user costs for financial institutions using its Breach Clarity Premium for Financial Services solution for six months.

Breach Clarity co-founder and COO Al Pascual underscored the value of these services at a time when shifting computer use patterns – from business offices to private homes – during the global pandemic have given rise to a shifting set of risks. “As cybercriminals experiment with new forms of cyber scams,” Pascual said, “newly remote workers and the systems to which they are attached will be a high value target.”

Breach Clarity demonstrated its consumer-facing solution last year at FinovateFall. A specialist in post-compromise fraud, Breach Clarity enables users to search any publicly-reported data breach and receive a fraud risk rating, a list of top identity-holder risks, and a set of action steps ranging from freezing credit to modifying alerts to limit exposure to potential identity theft and related cybercrimes.

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Autobooks Unveils New Way for Businesses to Receive Payments Online

By Julie Muhn (@julieschicktanz) Posted on May 4, 2020
Categories: Daily news

Small business payments and accounting platform Autobooks unveiled a new initiative today that works directly with small businesses to help them receive credit card payments online.

The program, Get Paid with Autobooks, deposits transaction revenue directly into the business’ existing bank account. The tool was previously only available to small businesses via Autobooks’ existing bank partners. In fact, Autobooks partners with more than 50 banks and credit unions to help them compete with fintechs such as PayPal and Square by offering their small business clients an online payment acceptance tool.

Autobooks is waiving its $10 monthly fee for Get Paid through the end of this year. This offer comes at a time when many businesses have been pushed to accept payments online in order to provide a no-contact experience for their clients. Businesses will still be charged the standard 2.75% on each transaction.

Autobooks lowers the barrier of entry for businesses to accept payments by using a model called payment facilitation. “Non-bank providers such as PayPal, Square, and Stripe have long benefited from this model and it’s now time financial institutions can too,” said Autobooks CEO and Cofounder Steve Robert. “By providing a digital, self-service onboarding and automated underwriting process – a small business can now begin receiving payments directly into their existing checking account within a few minutes.”

Autobooks was founded in 2015 and has since raised $17.5 million in funding. The company offers banks a range of tools, including invoicing, accounting, and billpay, to help them support their small business customers.

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Tencent Pays $300 Million for Stake in Afterpay

By Julie Muhn (@julieschicktanz) Posted on May 1, 2020
Categories: Daily news

China-based internet giant Tencent laid out $300 million to acquire a 5% stake in buy-now-pay-later firm Afterpay.

The move is part of a strategic partnership that will offer Afterpay easy access and collaboration opportunities with Tencent, a Hong Kong-based fintech giant with a $500 billion market capitalization. In comparison, Afterpay’s market capitalization on the Australian Stock Exchange tops just over $8 billion.

Afterpay was founded in 2014 by Nicholas Molnar and Anthony Eisen, who now serves as the company’s CEO. The Australia-based company has 4.6 million users and its revenues totaled over $160 million last year.

“Afterpay’s approach stands out to us not just for its attractive business model characteristics, but also because its service aligns so well with consumer trends we see developing globally in terms of Afterpay’s customer centric, interest free approach as well as its integrated retail presence and ability to add significant value for its merchant base,” said Tencent Chief Strategy Officer James Mitchell.

Tencent’s move comes shortly after its rival Ant Financial took a minority stake in Afterpay competitor Klarna. Afterpay has 3x the web traffic of Klarna and 1.5x the traffic of its other major competitor Affirm.

The buy-now-pay-later segment of fintech has been heating up this year, despite– or perhaps because of– the current economic and health crises. A few weeks back, Goldman Sachs launched MarcusPay, a tool to help borrowers make purchases ranging from $750 to $10,000 and pay for them over the course of 12 to 18 months.

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