Savings Platform Plinqit Teams Up with SUMA FCU to Help Members Enhance Financial Wellness

Savings Platform Plinqit Teams Up with SUMA FCU to Help Members Enhance Financial Wellness

The jury is still out on whether or not January is officially Financial Wellness Month. But savings platform Plinqit isn’t waiting around for any verdict. The Ann Arbor, Michigan-based fintech announced this week that it has partnered with SUMA Federal Credit Union to help give the institution’s 7,000+ members the resources they need to become better savers.

The partnership will enable SUMA FCU’s members to access tools such as Plinqit’s Build Skills solution. Build Skills provides users with content that helps them build their personal finance awareness and savings skills, and then pays them for learning new skills. In turn, the funds earned from learning more about financial wellness can help propel users toward their Plinqit savings goals. SUMA FCU members will be able to access the functionality via SUMA FCU’s digital banking platform, thanks to Plinqit’s integration with Jack Henry’s Banno Digital Toolkit.

SUMA FCU expects the new technology will help attract new members to the credit union as well as enhance the banking experience for existing members. The institution serves communities in Yonkers and Spring Valley, New York, as well as New Haven and Stamford, Connecticut. Both regions feature sizable populations of Ukrainian immigrants and parishioners of St. Michael’s Archangel Ukrainian Catholic Church. Established more than 55 years ago, SUMA FCU has more than $400 million in assets today.

“Credit unions are known for having strong relationships with their member base and SUMA Federal Credit Union has exemplified this for decades,” Plinqit CEO and founder Kathleen Craig said. She highlighted SUMA FCU’s support of local institutions, including churches, Ukrainian youth groups, and other cultural organizations. “Plinqit is proud to partner with an institution that consistently strives to make a meaningful impact in its community,” Craig said.

Plinqit made its Finovate debut at FinovateFall 2019 in New York. At the conference, Plinqit demoed its Build Skills offering – “created by Millennials for Millennials” – which aligns data, behavior, and incentives to make savings goals easier to set and attain. Last year, the company secured $5 million in Series A funding. The round, co-led by Fintop Capital of Nashville, Tennessee, and JAM FINTOP of New York, took Plinqit’s total funding to nearly $10 million.

Plinqit’s partnership announcement comes just a week after the company released its latest State of Savings Report. This survey, which measures top savings priorities for consumers, showed that 43% of consumers are actively contributing to an emergency fund for both short-term and long-term potential expenses. “While the price increases for everyday necessities leave many U.S. households with financial stress, consumers remain focused on building up their emergency savings even in these trying times,” Craig said. “Providing tools to help them be successful in their savings goal is critical for financial institutions.”


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LendInvest to Use New Funding to Enter Mortgage Market

LendInvest to Use New Funding to Enter Mortgage Market
  • LendInvest received increased funding from Lloyds Bank this week, bringing its total warehouse investment to $367 million (£300 million).
  • The boost in investment will help LendInvest enter the homeowner mortgage market, a $1.5 trillion (£1.2 trillion) opportunity.
  • LendInvest now has more than $4.4 billion (£3.6 billion) in funds under management.

U.K.-based property finance asset manager LendInvest scored an increase in warehouse funding from Lloyds Bank totaling $367 million (£300 million) this week. The purpose of the investment is to facilitate LendInvest’s entry into the mortgage market, which the company estimates to be a $1.5 trillion (£1.2 trillion) opportunity.

LendInvest was founded in 2008 to serve as an online marketplace for property lending and investing, enabling everyday investors to access a wider variety of asset classes, including opportunities to gain exposure to the U.K. property market. The company launched its homeowner mortgage product in beta last month and plans to launch the product to a wider audience this year.

“There are a significant number of people in the U.K. with complex income streams – from barristers to actors to NHS contract workers – who find it harder to get a mortgage because of multiple income sources or less regular pay cheques,” explained LendInvest CEO Rod Lockhart. “Our offering is tailored to their needs, providing access to the finance they require to buy the home of their dreams, and without all the stress and hassle.”

The new homeowner mortgage product targets borrowers with multiple sources of income, those who are self-employed, and those who are small-business owners. The company’s technology simplifies complex mortgage cases to improve and streamline the process of closing on a home loan.

“The complexity of this part of the U.K. mortgage market makes it ripe for disruption by our purpose-built technology and is a natural evolution for us following our launch into buy-to-let mortgages in 2017,” added Lockhart.

With more than $4.4 billion (£3.6 billion) in funds under management, LendInvest is headquartered in London. The company’s funders and investors include pension funds, insurers, and global institutions including HSBC, J.P. Morgan, Citigroup, and National Australia Bank. LendInvest went public in 2021 and is listed on the London Stock Exchange under the ticker LSE. The company has a market capitalization of $141 million (£115 million).


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Australian Billionaire Richard White Acquires KYC/KYB Specialist Kyckr

Australian Billionaire Richard White Acquires KYC/KYB Specialist Kyckr
  • KYC/KYB specialist Kyckr has agreed to be acquired by tech entrepreneur and billionaire Richard White.
  • Terms of the transaction were not disclosed.
  • Kyckr is an alum of our developers conference, FinDEVr Silicon Valley 2016, where the company presented “Corporate Identity on the Blockchain.”

Kyckr, a technology company that provides corporations with authoritative real-time data on potential and existing customers and suppliers, has agreed to be acquired by Richard White, an Australian technology entrepreneur. White, who founded Australian technology company WiseTech Global in 1994, will acquire the company via his personal investment vehicle RealWise KYK AV Pty Ltd. Terms of the transaction were not disclosed.

“The Kyckr team is delighted to have the strategic guidance, support, and vision that successful tech-entrepreneur and founder Richard White provides,” Kyckr CEO Ian Henderson said. “We are embarking upon an exciting evolution of our powerful offering to broaden its scope by building an integrated global software solution to enable businesses to navigate the highly complex and dynamic compliance and counterparty risk challenges that they face in an increasingly interconnected and digital marketplace.”

Kyckr specializes in providing businesses with real-time access to aggregated corporate Know Your Customer/Know Your Business (KYC/KYB) and Ultimate Beneficial Owner (UBO) data from more than 300 company registries and primary sources worldwide. This reach enables Kyckr to conduct real-time due diligence on more than 120 million companies around the globe. White noted that this capacity was especially important in a world with ever-expanding compliance laws and regulations on one hand and innovative financial criminals on the other. He described the contemporary challenge of KYC/KYB compliance as “increasingly high-risk, complex, time-consuming, and costly.”

White’s WiseTech Global bills itself as the “operating system for global logistics.” In a statement, White compared Kyckr’s ability to automate manual processes and aggregate data from real-time sources to the way WiseTech’s CargoWise solution has replaced legacy logistics systems with integrated technology. Both solutions, White indicated, are designed to “drive productivity, reduce compliance risk, and facilitate planning, visualization, and control.”

A Finovate alum since its appearance at our developers conference FinDEVr SiliconValley in 2016, Kyckr has raised more than $18 million in funding to date. The company maintains offices in the U.K., Ireland, and Australia.


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AliPay Taps SplitIt to Enable Customers to Pay After Delivery

AliPay Taps SplitIt to Enable Customers to Pay After Delivery
  • Splitit partnered with Alipay to power the firm’s Pay After Delivery payment option.
  • Splitit is leveraging Checkout.com’s payment-acquiring capabilities to facilitate Alipay’s Pay After Delivery.
  • Splitit was founded in 2012 as PayItSimple. The company rebranded in 2015 under its current name.

Installments-as-a-service company Splitit announced a new tie-up with global payments platform Alipay this week. Under the partnership, Splitit will power Alibaba Group-owned AliExpress’ Pay After Delivery.

The new payment option enables shoppers to pay after delivery using their existing credit card. Pay After Delivery leverages Splitit’s Installments-as-a-Service platform that embeds a branded experience within AliExpress’ checkout flow.

Splitit, which leverages Checkout.com’s payment-acquiring capabilities to offer the new installment service, was founded in 2012 as PayItSimple. Splitit’s Installments-as-a-Service tool is similar to well-known buy now, pay later (BNPL) technologies in that it enables consumers to pay for a good or a service in installments, interest-free.

Splitit’s tool differentiates itself from BNPL, however, because it is completely white-labeled and offers customers a merchant-branded experience. Because of this, during the checkout flow, customers are not redirected to a third party. What’s more, because Splitit relies on a consumer’s existing credit card, the company does not require additional credit checks. All of this results in less friction for the customer and better control over customer relationships for the merchant.

“Our work with Alipay is a testament to the flexibility of Splitit’s platform and the strength of our new partnership with Checkout.com. Together we are providing a valuable resource for sellers and shoppers by powering payment after delivery,” said Splitit CEO Nandan Sheth. “We are thrilled to collaborate with two exemplary companies like Alipay and Checkout.com. I look forward to building on this initial launch by expanding into other markets in the future.”

Splitit is based in Atlanta with offices in London and Australia, as well as an R&D center in Israel. The company is listed on the Australian Securities Exchange (ASX) under ticker code SPT and also trades on the US OTCQX under ticker SPTTY and STTTF. Splitit has partnered with both Stripe and Shopify in recent years to act as an installments-as-a-service option for their merchant clients.


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Xoom Adds Cross-Border Money Transfers to Debit Card Deposit Product

Xoom Adds Cross-Border Money Transfers to Debit Card Deposit Product
  • PayPal-owned Xoom has added international money transfers to its Debit Card Deposit product.
  • Leveraging a partnership with Visa, U.S. users can send funds directly to recipients’ eligible Visa debit cards.
  • Debit Card Deposit originally launched domestic transfers in 2020.

PayPal’s international money transfer service Xoom added a new debit card feature today that will help users send money across international borders. Leveraging a partnership with Visa, Xoom’s Debit Card Deposit product now facilitates international money transfers.

Debit Card Deposit originally launched in 2020 to allow customers to send funds within the U.S. Today’s addition will enable Xoom customers in the U.S. to use the Xoom mobile app or web interface to send money across the international border directly to friends or family using their debit card. Recipients, who will receive the funds on their eligible Visa debit card, will be able to access the funds in real-time.

“We know that getting funds quickly and easily is important for many of our customers, which is especially true around the winter months and the holidays when people are sending money to their friends and family around the globe,” said PayPal Vice President of Remittances Wei-Lin Lee. “This expansion, through our partnership with Visa, will help more customers around the world get a fast and convenient way to access necessary funds needed for everyday essentials.”

Funds can be sent to 25 countries, including Bosnia and Herzegovina, Bulgaria, Costa Rica, Croatia, Czech Republic, Great Britain, Greece, Guatemala, Hungary, Indonesia, Israel, Italy, Jamaica, Lithuania, Malaysia, Pakistan, Philippines, Romania, Singapore, Slovakia, Spain, Sri Lanka, Thailand, Ukraine, and Vietnam. Xoom will add more regions later this year.

Xoom was founded in 2001 and was acquired by PayPal in November of 2015 for $890 million. The company enables peer-to-peer money transfers that can be sent directly to the recipient’s bank account or debit card. Recipients also have the option to pick up physical cash at brick-and-mortar partner locations or receive the cash at their doorstep via a delivery.


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Deel Acquires Capbase to Launch a New Equity Management Product

Deel Acquires Capbase to Launch a New Equity Management Product
  • Payroll and compliance company Deel is acquiring digital governance platform Capbase.
  • Terms of the deal were not disclosed.
  • Deel will leverage Capbase’s expertise to launch a new product dedicated to equity management and issuance.

It has been a week of consolidation in the capitalization table management space. Fidelity announced plans to acquire Shoobx this week, and payroll and compliance company Deel recently unveiled that it is acquiring digital governance platform Capbase.

Deel, which launched as a payroll and compliance platform for international employees and contractors, has acquired one of the biggest players in the capitalization table management arena, Capbase. Terms of the deal were not disclosed.

Deel will leverage Capbase’s expertise to launch equity management and issuance services that can help businesses operating with legal and tax questions such as taxable events, local laws, required reporting, and more– across 90 different geographic regions.

“We looked at U.S. compliance and realized it was a very, very hard thing to do,” Deel Co-founder Alex Bouaziz told TechCrunch in an interview. “Equity is such an important part of companies, so enabling other companies to grant it across geographies and at scale felt like something we should tackle.”

Capbase was founded in 2018 to help startups manage the complexities of securities transactions. The company’s services range from helping companies with incorporation, setting up their board, purchasing shares, managing their capitalization table, finding funding, and facilitating due diligence for potential investors and buyers. Capbase has raised a total of $6 million in funding.

After the deal closes, Capbase will continue with business as usual, but Deel will leverage the company’s expertise to launch a new product dedicated to equity management and issuance. All of Capbase’s 20 employees will join the Deel team.

San Francisco-based Deel was founded in 2018 and enables companies to hire employees across the globe and pay them in more than 150 currencies. The company was valued at $12 billion last May and has raised a total of $680 million in funding. Deel has made a total of five acquisitions, including this week’s Capbase buy. Deel’s previous acquisitions have focused on payroll, HR, and work visa management.


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Robinhood Launches New Retirement Account Offering with 1% Match

Robinhood Launches New Retirement Account Offering with 1% Match
  • Robinhood announced that its Robinhood Retirement offering was now available to all eligible customers.
  • The company, which offered a waitlist for interested customers in December, said that more than one million people have signed up for the new investment service.
  • Robinhood will provide a 1% match for every eligible dollar customers contribute to their Robinhood Retirement plan.

Robinhood, which gained notoriety in recent years as a platform for traders of meme stocks like AMC and Gamestop, announced this week that it is making its Robinhood Retirement offering available to all eligible customers. Unveiled via waitlist in December, the new IRA product offers a 1% match for every eligible dollar contributed – the first and only individual retirement account to do so, according to Robinhood.

Baiju Bhatt, company co-founder and Chief Creative Officer said in a statement: “Systems are failing to catch up to the needs of how many people live and save (or don’t) … We see an opportunity to be a part of the solution, to build products that adapt to the way work and savings will evolve, and ensure people have the tools to control their financial future – just like the way we started.”

Robinhood claims that more than one million people have signed up for the new service via the company’s waitlist. A significant number of these individuals, according to Robinhood, are freelancers and members of the so-called “gig economy,” who often struggle to find solutions to help them prepare for retirement. Robinhood Retirement will enable customers to open multiple Robinhood brokerage accounts and earn a 1% match from Robinhood on eligible contribution dollars. Customers will be able to grow their earnings in tax-free or tax-deferred accounts, and can invest in both stocks and ETFs. The product’s Portfolio Builder feature helps customers build their own investment portfolio, use a custom recommended portfolio, or a combination of both – all without having to pay a commission. Robinhood added that the company plans to authorize options trading in retirement accounts as well – also with no commission or per-contract fees.

“In 2023, Robinhood remains a company fundamentally focused on the unmet needs of the next generations,” Bhatt noted in a blog post announcing the availability of Robinhood Retirement. “No matter how income is earned, we believe the impact of providing long term savings incentives are just as powerful today as they were for our parents’ generation.”

Founded in 2013 by Bhatt and Vlad Tenev, Robinhood offers commission-free trading of stocks, exchange-traded funds, and cryptocurrencies. With total assets of more than $19.7 billion and revenues of $1.8 billion – both as of 2021 – Robinhood boasts more than 22 million funded accounts and nearly 16 million monthly average users as of the spring of 2022. Robinhood is a publicly traded company on the NASDAQ under the ticker HOOD. The firm has a market capitalization of $7.8 billion.


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Fidelity Acquires Equity Management Company Shoobx

Fidelity Acquires Equity Management Company Shoobx
  • Fidelity Investments has acquired equity management company Shoobx, marking Fidelity’s first acquisition since 2015.
  • Terms of today’s deal were not disclosed.
  • The acquisition will help Fidelity expand its offerings for startups and early-stage companies.

Fidelity Investments announced this week it has acquired equity management company Shoobx. Financial terms of the agreement were not disclosed and the deal marks Fidelity’s first acquisition since it purchased eMoney Advisor in 2015 for $250 million.

Ultimately, the move will help Fidelity expand its offerings for startups and early-stage companies. In fact, today’s acquisition contributes to Fidelity’s growing portfolio of tools that support the startup ecosystem. Fidelity Labs, the organization’s innovation arm, has invested in several startups and fintech companies, and has developed its own technology to improve the investment process.

Fidelity will integrate Shoobx’s technology into its Stock Plan Services business, an arm that offers equity compensation plan recordkeeping and administration services. Part of Fidelity’s Workplace Investing division, the Stock Plan Services is a workplace benefits provider that serves almost 700 companies with 2.5 million end users holding $250 billion in plan value.

Shoobx was founded in 2013 and helps private companies streamline compliance related to incorporation, raising capital, and exiting so that they can focus on their business. That’s because Shoobx helps them manage their shareholders, the shares they own, and information such as the share class, the price paid for the shares, and any information on options or warrants.

“Given the success of our commercial relationship with Shoobx and the increasing demand from private companies to support them as they scale and grow, including helping their employees manage their financial well-being, acquiring Shoobx was a natural next step in our relationship,” said Fidelity Workplace Investing Head Kevin Barry. “Together, we will accelerate the development of new and innovative solutions designed to help private companies confidently navigate the complex journey all the way through to an exit or IPO.”

Fidelity and Shoobx first partnered in 2021 to provide an equity management solution to the private market. At the time, Fidelity offered a Shoobx-branded tool that combined Fidelity’s equity compensation and benefits administration with Shoobx’s equity management capabilities, board management tools, and data room solutions.


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Spanish Fintech Divilo Tuns to ThetaRay for AML Transaction Monitoring

Spanish Fintech Divilo Tuns to ThetaRay for AML Transaction Monitoring
  • Spanish fintech Divilo partnered with financial crime prevention specialist ThetaRay.
  • Divilo will deploy ThetaRay’s SONAR platform, a SaaS-based AML transaction monitoring and sanctions list screening solution.
  • ThetaRay made its Finovate debut in 2015 at FinovateFall in New York.

A partnership between Spain-based fintech Divilo and ThetaRay will enable the B2B financial services provider to better defend itself against money laundering, sanctions violations, and other financial crimes. Divilo will deploy ThetaRay’s SaaS-based AML transaction monitoring and sanctions list screening platform, SONAR. The technology is capable of detecting the earliest indications of sophisticated money laundering activity infiltrating the domestic and cross-border payments process.

“Our advanced AI solution also makes the entire process of transaction monitoring much more efficient and effective, while improving customer satisfaction, reducing compliance costs, and increasing risk coverage with safe and secure payments,” ThetaRay CEO Mark Gazit said.

SONAR leverages advanced AI, as well as proprietary and patented algorithms, to identify anomalies in data sets to detect potential cases of money laundering. SONAR delivers transaction monitoring with very low (“virtually no”) false positives, giving firms like Divilo the ability to provide trusted and reliable payment services to the SMEs and self-employed professionals it serves.

“Divilo is a fintech leader providing valuable and innovative payment solutions that are growing the global financial system,” Gazit said. “ThetaRay is thrilled to provide Divilo with technology that instills trust into cross-border payments, enabling revenue growth by opening doors to business with new customers and financial partners.”

Founded in 2020, Divilo offers a complete payments, collections, and accounting services for small businesses and freelancers. The company offers payments cards, facilitates money transfers and, offers technology to enable businesses and freelancers to manage payments through mobile devices courtesy of PINs or QR codes. In 2022, Divilo launched a new solution called Diveep that enables charging via mobile device simply by tapping a card or another mobile device.

“Divilo is on a mission to transform payments and collections by providing greater agility, a better user experience, high-security measures, transparency, and simplicity,” Divilo founder and CEO Juan Guruceta said. “Using ThetaRay’s AML solution, we will be able to grow our network of relationships and increase business internationally with the assurance that next-generation AI detection will provide enhanced coverage and highly accurate alerts to allow businesses to focus on what really matters.”

ThetaRay made its Finovate debut in 2015 at FinovateFall. In the years since then, the company has grown to support more than one billion users, and its platform monitors more than $15 trillion in transactions every year. ThetaRay closed out 2022 with a pair of partnership announcements, teaming up with mobile banking solution NOW Money and partnering with fintech platform Ontop, both in December.


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Nuvei Acquires Paya for $1.3 Billion

Nuvei Acquires Paya for $1.3 Billion
  • Business payments technology company Nuvei will acquire B2B payments company Paya.
  • Nuvei anticipates the purchase will help it add integrated payment capabilities, diversify its business, and grow in the B2B payments space.
  • The deal is expected to close for $1.3 billion.

Payment technology solutions provider Nuvei announced this week it has acquired B2B payments company Paya. The all-cash transaction is expected to close for $9.75 per share for a total value of around $1.3 billion.

Paya’s payment technology helps businesses accept payments and get paid faster and more efficiently. The company’s solutions range from payment acceptance, disbursement, and ACH, to marketing services and developer integrations.

Canada-based Nuvei anticipates the purchase will help it add integrated payment capabilities, diversify its business, and grow in the B2B payments space. Specifically, combining Paya’s integrated payment capabilities into Nuvei’s platform will add value and growth potential. Additionally, Nuvei will be able to leverage Paya’s integrations with 300 independent software vendors and commerce solutions to enter into the software-led market.

“The proposed acquisition of Paya is a powerful next step in the evolution of Nuvei, creating a preeminent payment technology provider with strong positions in global eCommerce, Integrated Payments and business-to-business,” said Nuvei Chief Executive Officer Philip Fayer. “The proposed transaction will combine two people-first, technology-led, high-growth payment platforms. It will accelerate our integrated payment strategy, diversify our business into key high-growth non-cyclical verticals with large addressable end markets, and enhance the execution of our growth plan.”

Founded in 2003, Nuvei offers global card acquiring services, alternative payment methods, crypto payments, fraud and risk management, analytics and more. The company serves businesses across a range of industries in more than 200 global markets, facilitating 150 currencies. Nuvei went public in 2020 and now has a market capitalization of $5.58 billion.

Today’s buy marks Nuvei’s 6th acquisition. The company acquired Smart2Pay and BaseCommerce in 2020, and purchased Mazooma, Simplex, and Paymentez in 2021.


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Tax Status Partners with authID to Protect Tax Data with Human Factor Authentication

Tax Status Partners with authID to Protect Tax Data with Human Factor Authentication
  • Tax Status announced a partnership with authID this week.
  • The partnership will give Tax Status’ customers access to authID’s Human Factor Authentication (HFA) technology to better protect sensitive data and fight fraud.
  • Based in Texas, Tax Status made its Finovate debut last September at FinovateFall.

Tax Status, a Texas-based fintech company that offers a digital IRS account monitoring solution, has announced a partnership with identity authentication solutions company authID. The collaboration enables Tax Status to go live with the full range of authID’s identity authentication technologies, including authID’s Human Factor Authentication services (HFA). These resources will enable Tax Status’ enterprise partners to better protect sensitive tax data, as well as prevent password compromise and ensure secure account onboarding for new customers.

“authID’s innovative biometric authentication has proven to be a cut far above other identity management solutions,” Tax Status CEO and founder Charles Almond said. “We are proud to offer the most fortified fraud prevention and enterprise security technology on the market, without compromising on convenience and user experience.”

authID’s Human Factor Authentication enhances the online customer onboarding process by leveraging strong identity and document authentication to eliminate fraud. HFA relies on FIDO2 passwordless authentication that provides seamless login across devices. The technology also offers an unphishable authentication protocol of passkeys and device biometrics for high-risk transactions or transactions that mandate an audit trail.

“Our next-gen Verified platform, which prioritizes ethical, consent-based biometrics, provides Tax Status and their clients with a comprehensive fraud prevention solution and ‘unphishable’ authentication that is more secure than legacy MFA,” authID CEO Tom Thimot explained.

Founded in 2017 and based in Frisco, Texas, Tax Status made its Finovate debut last September at FinovateFall. At the conference, the company demoed its Tax Status Platform, a fully-automated IRS account monitoring solution that provides continuous access to official IRS financial data for use in real-time income, account status, and compliance verification. Tax Status works with companies in a wide range of verticals – from wealth management to lending to accounting – providing critical notifications and insights to help them make more informed decisions.

Tax Status ended 2022 with a partnership with Morningstar. The collaboration will enable Morningstar to offer Tax Status to enterprise wealth management firms and fintechs via Morningstar’s Dynamic Services APIs. By automating the collection and maintenance of client tax data – including income, social security tax withheld, and capital gains and losses – companies will be able to better apply this information to not only client onboarding, but also to investment and financial planning, as well.


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NorthOne Teams Up with The Bancorp Bank to Launch Real-Time Payments Via The Clearing House

NorthOne Teams Up with The Bancorp Bank to Launch Real-Time Payments Via The Clearing House
  • Challenger bank NorthOne announced a partnership with The Bancorp Bank to launch real-time payments via The Clearing House’s network.
  • NorthOne customers initially will be able to receive real-time payments. The ability to send real-time payments will come with “future updates” the company said.
  • With offices in New York and Toronto, NorthOne has raised more than $90 million in funding for its deposit account that helps small businesses and freelancers better manage their finances.

U.S.-based challenger bank NorthOne has teamed up with The Bancorp Bank to launch real-time payments via The Clearing House’s Real-Time Payments network.

NorthOne co-founder and CEO Eytan Bensoussan called the new offering a “huge milestone” for both his company as well as for the fintech industry writ large. Bensoussan also underscored the value of real-time payments to NorthOne’s small business customers. “For small business owners, cash flow and liquidity are paramount,” he said. “By removing payment waiting times, we’re able to free up a frustrating technical bottleneck for our customers, making it easier for them to operate their business efficiently.”

Founded in 2016, NorthOne specializes in helping small business owners, startups, and freelancers better manage their finances. The company offers a deposit account that enables users to view full account histories and manage receipts, and provides automatic categorization of purchases. Users can connect their NorthOne accounts to their POS or payment processor to get paid faster, as well as leverage the account to pay invoices, manage payroll, and send ACH or wire payments.

With offices in New York and Toronto, Canada, NorthOne sees the introduction of real-time payments as a way to help the 61% of small businesses that it says are struggling because of poor cash management. The update announced this week will enable NorthOne customers to receive instant payments. The ability to send real-time payments will come as part of a separate, future update.

This week’s product launch is the latest news from NorthOne, which most recently made fintech headlines with a $67 million fundraising in October. The Series B investment featured participation from both new and existing investors, and brought the company’s total equity capital to more than $90 million.

“50% of small businesses in America fail over a five-year time horizon,” NorthOne co-founder and COO Justin Adler said when the company’s latest fundraising was announced last fall. “And the majority of those failures are due to financial mismanagement and a lack of financial systems and controls. Our team is proud to be able to de-risk entrepreneurship and make starting and running a successful small business accessible to anyone.”


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