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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
A new fintech called Fierce has emerged from stealth with $10 million in seed funding.
The company’s iOS-based app features a cash account with an APY of up to 4.25%; a Rewards Credit Card is planned for later this year.
Fierce is backed by investors including Pendrell, AP Capital, Wheelhouse Digital Studios, and Space Whale Capital.
Fierce, a fintech based in New York, emerged from stealth this week with an iOS-based app and $10 million in seed funding. The investment came from institutional investors including Pendrell, AP Capital, Wheelhouse Digital Studios, and Space Whale Capital, as well as angel investors. The funding will help Fierce add to its team, build up its customer base, and market its solution.
“Fierce is a customer focused, feel-good finance app,” Fierce founder and CEO Rob Cornish said. “We are truly mission-driven in our effort to bring the best of fintech to people, so we built an incredibly advanced platform with a simple UX to give as much yield as possible to our customers. Our goal is to help users increase their wealth while enjoying an empowering, positive experience on the app.”
Founded in 2021 by a team of financial services professionals with backgrounds in both challenger and traditional banking, as well as cryptocurrencies and U.S. stock exchanges, Fierce offers users an all-in-one financial app for savings, spending, investing, and more. Fierce features an FDIC-insured cash account with an APY of up to 4.25% and no monthly fees. The app also enables users to buy shares of both stocks and ETFs – including the purchase of fractional shares – as well as participate in Fully Paid Securities Lending (FPSL) through which investors can earn passive income by lending their stocks. Note that FPSL does not prevent investors from trading their shares at any time.
Fierce also said that it plans to introduce a Fierce Rewards Credit Card later this year. The card will offer 1.5% cash back on all spending, and all interest and rewards earned are automatically redeemed into the user’s portfolio. Additional functionality – such as access to personal loans, mortgages, insurance, and more – is planned, and Fierce expects to offer an Android version of its app later in 2023.
“Fierce is entering the market with a powerful solution that allows customers to take control of their finances while calming the financial anxiety that many people face today,” Fierce angel investor David Krell said. “We’re confident in the company’s ability to provide customers with the means to create financial stability for the long run.”
Bitcoin While Black: The impact of the cryptocurrency crisis on communities of color
One of the relatively underreported stories of 2022 – at least in the fintech press – was the impact of the cryptocurrency crisis on communities of color – especially African-American communities. At first glance, this might appear to be an odd take: why – and how – would a community that has historically been more un- and underbanked than the population at large end up being especially affected by a crisis in such a niche area of contemporary finance?
As Annie Lowrey wrote in a comprehensive article for The Atlantic back in November, it was years of “neglect” from the traditional financial system that made African Americans especially vulnerable to the appeal of cryptocurrencies as an alternative. Add to this the post-George Floyd “racial reckoning” and renewed emphasis on ethnic identity among many African Americans, and it is easy to see how many came to see investment in cryptocurrencies as a way of building the kind of generational wealth that has eluded black Americans for, well, generations.
And there was no lack of enthusiasts encouraging black Americans to pursue this path, either. For much of 2021 and into 2022, my inbox was filled with queries and requests for interviews from entrepreneurs eager to make the case that cryptocurrencies were the ticket to take black Americans to, if not wealth, then at least a greater sense of financial independence and empowerment. Books like Bitcoin & Black America and Bitcoin for Black People, as well as events like the Black Blockchain Summit all helped encourage African Americans to believe that they could do things with digital assets that too few had been able to accomplish via the world of traditional banking and fiat currencies.
I’ll leave it up to Lowrey to describe what went wrong – though the perennial problem of investors arriving late to a booming market helps explain a lot of it. Whether the cryptocurrency bust of 2022 sours African American investors on digital assets in an enduring way remains to be seen. But Bitcoin won’t be the last boom to come knocking on the doors of the African American community – after it has already visited every other neighborhood in town.
Revolut introduces crypto staking
Revolut announced this week that it is giving its customers in the U.K. and Europe the opportunity to earn cryptocurrency rewards if they allow financial institutions to “stake” their coins as part of a blockchain transaction verification process. Staking, as explained by Revolut’s Kirsty Daniel this week, involves participating in proof-of-stake blockchains which, like mining, help support the security of the overall network. Only certain coins are available for staking – Ethereum, Cardano, Polkadot, and Tezos, for example (not Bitcoin), and individuals who participate in staking can earn a significant percentage return for their (or the blockchain’s) efforts. Daniel noted that cryptocurrency stakers can earn up to 11.65% APY in crypto rewards by staking qualified crypto holdings.
Read more about staking in this extensive explainer provided by Coinbase. What is staking?
Among the risks to staking are the fact that there tends to be a “lockup” or “vesting” period during which the cryptocurrency cannot be transferred. This can be a challenge because holders are not able to trade staked coins during this period – even in the event of a major market disruption. Revolut’s decision was seen by analysts as an affirmation of the company’s commitment to supporting cryptocurrencies as the industry has been rocked by scandal in recent months.
Blockchain infrastructure platform Paxos opens R&D center in Israel
Blockchain and tokenization infrastructure platform Paxos announced last week that it was launching an engineering research and development center for security and cryptography in Israel. The center will house senior, staff, and principal engineers that have specialized skills in enterprise-grade security, applied cryptography, and blockchain technology. Paxos expects the R&D center to serve as an incubation hub for research into building security and cryptography solutions on top of the blockchain.
“We’re redefining financial markets and we believe our next generation of both software and hardware technical experts call Israel home,” Paxos Senior Director of Engineering Vitaliy Liptchinsky said. “As a safe, regulated platform that has continuously and steadily grown amidst all past digital asset market volatility, Paxos offers talented developers the opportunity to join a strong team uniquely positioned to serve some of the most sophisticated global enterprises.”
Paxos’ infrastructure reaches more than 400 million users. The largest issuer of regulated, transparent stablecoins, Paxos uses technology to tokenize, trade, settle, and maintain custody of digital assets. The company has developed blockchain solutions for institutions like fellow Finovate alums PayPal, Mastercard, and Nubank; and has raised more than $540 million in funding. Charles Cascarilla is co-founder and CEO.
Cointelegraph unveils its list of the Top 100 “crypto heroes and villains” for 2023
For the fourth year in a row, Cointelegraph has released its list of the Top 100 most influential people in the cryptocurrency and blockchain industry. The publication will reveal the list in its entirety over the next three weeks.
Starting with #100 through #91, some of the more interesting – and unexpected – entries so far include Russian tennis star Maria Sharapova at number 96 (“Sharapova has been involved in a series of investment ventures in recent years, including in the cryptocurrency and blockchain industries, and is currently an investor in MoonPay, a blockchain payments company …”) and “Artificial Intelligence” at #93.
Writing on request about AI’s presence on the list, ChatGPT opined: “… it is expected that artificial intelligence will have a signifiant impact on the cryptocurrency and blockchain industry … one of the main ways that AI will impact the cryptocurrency and blockchain industry is through the use of smart contracts.”
The rise of AI-focused cryptocurrencies
Speaking of the relationship between cryptocurrencies and AI, CoinDesk published an interesting article this week on the way AI-focused cryptocurrencies have outperformed Bitcoin. “Vastly” in the words of author Shaurya Malwa.
What tokens are we talking about? In recent weeks, tokens for platform like Alethea’s artificial liquid intelligence (ALI) and Image Generation AI (IMGNAI) have turned in the kind of performances that have cryptocurrency investors and traders buzzing. Malwa noted that while Bitcoin and ether have returned a more-than-respectable 30% each over the past month or so, these AI-focused upstarts are producing returns that dwarf those – and in less time.
Malwa seems to suggest that much of what is driving these new assets is the same combination of novelty and opportunity that initially drove Bitcoin and ethereum. Malwa quotes Ravindra Kumar, founder of crypto wallet Frontier, who credited “early interest, potential, and hype” for the outperformance of AI-focused cryptocurrencies, but still observed that there are some “innovative and compelling use cases” emerging.
Canoe received $25 million for its alternative investment intelligence platform.
The Series B round was led by F-Prime Capital with participation from Eight Roads Ventures and others.
Canoe will use the funds to hire new employees, enhance its products, and expand into Europe.
Alternative investment intelligence company Canoe Intelligenceclosed out its Series B round today, announcing a $25 million round led by F-Prime Capital with participation from Eight Roads Ventures and others.
“Following a year of significant growth and progress for Canoe, we are thrilled to partner with F-Prime and Eight Roads to advance Canoe’s capabilities for the alternative investment ecosystem,” said company CEO Jason Eiswerth. “As alternative investments continue to gain popularity amongst institutional and individual investors, the new injection of capital will allow us to further serve our customer base and streamline alternative investment data globally.”
Today’s round follows the company’s Series A rounds, which were announced in 2020 and 2021 and led by The Carlyle Group and Nasdaq Ventures. All previous investment amounts were undisclosed, so Canoe’s total funding is unknown.
Canoe will use the funding to hire new employees, enhance its offerings for enterprise customers, develop new data products, and work on its core platform. The company will also begin a push to expand into European markets. “The EMEA alternative investment industry is nearly the same size as North America and its data challenges are identical, yet today there is no comparable local solution,” said Eight Roads Partner Alston Zecha. “Canoe has a significant opportunity to deliver customer value in Europe first where it already has a presence, as well as other regions in [the] future.”
Canoe was founded in 2013 to help alternative investment firms streamline their data management processes. The company’s platform leverages AI and machine learning to automatically collect and categorize documents, extract and validate data, and deliver the sorted data investors need to make more informed investment decisions.
Each year, Canoe processes over six million documents and extracts more than 20 million data points. When compared to a manual approach, Canoe’s AI-based automation results in a 20x increase in the number of funds each employee can process. The New York-based company, which currently supports more than $5 trillion in assets under advisement, grew its client base over 200% in both 2021 and 2022.
Investing and savings platform Stash introduced new CEO Liza Landsman.
Landsman will take the helm from co-founder Brandon Krieg, who will transition into the role of Head of Business Development.
Stash made its Finovate debut at FinovateFall 2017 in New York.
Investing and savings platform Stash is starting the month with a brand new Chief Executive Officer. Effective Monday, technology executive, veteran venture investor, and independent Stash board member Liza Landsman took over the top spot at the New York-based fintech. Landsman succeeds Stash co-founder Brandon Krieg, who will transition into the role of Head of Business Development. Co-founder Ed Robinson will continue to serve as company President.
“Liza is the right person to lead Stash as we continue to hit major revenue and customer milestones and evolve the business,” Krieg said. “Her experience and knowledge of consumer products, e-commerce, and fintech is ideally suited to the opportunities ahead.”
With more than two million active subscribers, Stash offers a banking and investing app designed to simplify personal financial management. With a starting price of $3 a month, the company offers a variety of investing, banking, education, and financial advice subscription-based products. Last year, Stash launched its new banking infrastructure Stash Core, that will enable the company to launch new capabilities in credit, savings, lending, and more. Stash’s new banking account experience – which includes access to Stash’s upgraded Stock-Back Debit Mastercard – was built on Stash Core, and is an example of the kind of solutions that will be available via the platform.
“Stash Core gives us flexibility and ownership of every customer touchpoint,” Krieg said when the technology was unveiled last September. “It’s the future of inclusive finance and transformative to our business.”
In her role as CEO, Landsman will lead a company that topped $100 million in revenue and achieved growth of nearly 30% in 2022. At a time of economic uncertainty – including concerns over inflation and fears of recession – Stash customers set aside nearly $3 billion on the Stash platform via regular, automated deposits averaging $30 each.
“Stash empowers millions of Americans to manage and grow their wealth,” Landsman said. “Its simple-yet-disruptive subscription platform, rooted in a deep commitment to the financial well-being of our customers, is exactly what millions of everyday Americans need today.”
Landsman comes to Stash after serving in major operations and leadership roles at Jet.com, Citigroup, BlackRock, and E*Trade. Most recently Landsman was a General Partner at global venture capital firm NEA.
Oracle launched Banking Cloud Services, a suite of six services to help banks modernize their offerings.
Banks can mix and match the services and use them as standalone capabilities or incorporate them within their existing infrastructure.
Oracle has financial services clients in 140 countries and manages risk for 24 of the 28 top systemically important financial institutions.
Cloud application services company Oracle unveiledBanking Cloud Services, a set of six composable cloud native services aimed to help banks modernize their capabilities.
“Banks must innovate to succeed in today’s hyper competitive environment,” said Oracle Financial Services Executive Vice President and General Manager Sonny Singh. “We have built one of the world’s most comprehensive suites of cloud-native SaaS solutions so that banks of all sizes can innovate with speed, security, and scale without compromising their existing environments.”
Banks can select any combination of the six services as standalone capabilities or to work within their existing infrastructure. The Banking Cloud Services include:
Banking Accounts Cloud Service This service offers scalable demand deposit account processing that integrates with a bank’s existing process flows and technology.
Banking Payments Cloud Service The payments tool facilitates real-time processing for payment types including for cross-border, high-value, bulk, retail, and 24×7 payments.
Banking Enterprise Limits and Collateral Management Cloud Service This service offers banks a holistic view of their collateral management exposure and reduces risk by tracking exposure, credit underwriting, decisions, and approvals.
Banking Origination Cloud Service This tool helps banks streamline the onboarding process and automate underwriting decisioning for retail and small business customers. The automation helps banks scale originations to increase deposit and credit volumes.
Banking Digital Experience Cloud Service This digital banking solution serves as a customer acquisition tool that offers digital experiences supported by video, chatbot, AI, and natural language processing-based engagement tools.
Banking APIs Cloud Service Oracle Banking APIs Cloud Service offers more than 1,800 banking APIs to help banks establish an open banking platform that boosts innovation while remaining compliant. Banks can leverage open banking to improve their customer experience and increase revenue by embedding their services among third party providers.
Oracle is a 46-year-old company based in San Francisco. The firm has financial services clients in 140 countries and manages risk for 24 of the 28 top systemically important financial institutions. Oracle is publicly listed on the New York Stock Exchange under the ticker ORCL and has a current market capitalization of $236 billion.
Customer engagement innovator Larky has teamed up with Wisconsin-based Forward Bank.
Courtesy of the partnership, Forward Bank has integrated Larky’s nudge push notifications into its banking app.
Nudge provides personalized, timely push notifications and can increase customer engagement by 7x compared to traditional marketing methods.
Larky, a fintech that specializes in helping banks and other financial institutions better engage with their customers and members, has partnered with Wisconsin-based Forward Bank. The institution has deployed Larky’s nudge solution, which delivers personalized, timely push notifications to account holders. The technology is integrated into the FI’s existing mobile banking app and Forward Bank plans to use nudge for a variety of use cases including post-visit surveys, geofenced event announcements, and on-site financial service recommendations, as well as thank you messages to account holders after they opt in to receive nudge notifications. The goal is to help Forward Bank better anticipate customer needs, preferences, and behavior.
“Previously, we reached our account holders through email and direct mail, which presented challenges with timeliness,” Forward Bank VP and Marketing Director Jennifer Sobotta said. “By now delivering nudge notifications that reach account holders more quickly with relevant messages, we hope to strengthen our commitment to them as a trusted financial resource and ultimately strengthen our long-term customer relationships.”
A customer-owned, independent community bank, Forward Bank serves communities in central Wisconsin and nearby areas. Founded in 1919 and headquartered in Marshfield, Forward Bank has more than $930 million in assets and is a major supporter of local businesses, schools, clubs, and sports organizations.
Headquartered in Ann Arbor, Michigan, Larky made its Finovate debut at FinovateFall 2014 in New York. Founded in 2012, Larky enables financial institutions to better engage their customers by leveraging push notifications as a sophisticated marketing tool to promote products and services, popularize financial literacy and financial wellness initiatives, and important branch information and updates. The company says its technology can help financial institutions boost mobile app engagement and generate revenue growth via an engagement rate that is 7x better than traditional marketing strategies.
“This collaboration signifies a momentum step forward and reinforces our belief that push notifications are not optional, but rather an integral must-have for financial institutions seeking to successfully compete in today’s digital age and enhance customer engagement,” Larky CEO Gregg Hammerman said when the Finastra integration was announced.
Larky has raised $2.4 million in funding according to Crunchbase. The company’s investors include Michigan Angel Fund and North Coast Technology Investors.
Fraud prevention fintech SEON has acquired anti-money laundering (AML) due diligence software company Complytron in a deal today.
SEON is leveraging Complytron’s expertise to launch a new AML API, which will help companies comply with the European Union’s Sixth Anti-Money Laundering Directive (6AMLD).
Terms of the deal were not disclosed.
Two Hungary-based fintechs have combined this week. Fraud prevention company SEONacquired due diligence software company Complytron for an undisclosed amount.
Complytron was founded in 2019 after the founders received Google DNI funding for Source Code Leak, a project that used digital fingerprinting software to form connections between seemingly unrelated companies. The group found a commercial use for the software in helping firms comply with AML requirements. The company has received a total of $275k (€257k) funding from a Seed round in 2020.
SEON is leveraging the purchase to launch its new anti-money laundering (AML) API, which incorporates Complytron’s AML expertise. The new API aims to help clients comply with the European Union’s Sixth Anti Money Laundering Directive (6AMLD) by enabling them to check customer names against politically exposed persons, relatives and close associates, and crimes and sanctions lists.
“Our goal at SEON has always been to deliver the best products to our customers with maximum efficiency,” said SEON CEO Tamas Kadar. “Rather than building an AML solution from the ground up, it made perfect sense for us to integrate Complytron’s proprietary algorithms and worldwide databases – as well as the expertise of its talented team.”
The new API offers continuous monitoring that makes it easy for users find and block suspicious customers, add them to monitoring lists, and export the data for Suspicious Activity Reports. The AML API is currently available for all SEON clients, including those using the free version, which the company released last year.
In combining its flagship fraud prevention tools with the new AML API, SEON aims to help companies reduce information silos, run more thorough onboarding checks, and centralize customer data. The company is calling the integration a “crucial first step” in the process of creating a complete risk management toolkit.
Since it was founded in 2017, SEON has raised a total of $108 million. Earlier this year, the company partnered with Bulgaria-based tbi bank, which will deploy SEON’s fraud detection tools.
Neobank Oxygen has raised $20 million in Series B funding, taking its total capital to $45 million according to Crunchbase.
The funding -“led largely by return investors” – will help Oxygen further develop its product, improve the user experience, and grow its workforce.
San Francisco, California-based Oxygen won Best Digital Bank in the 2021 Finovate Awards.
San Francisco-based digital banking platform Oxygen has secured $20 million in Series B funding. The funding round was “led largely by return investors,” and will support product development and enhancements to Oxygen’s core offerings. The funding will also help Oxygen grow its team to help meet demand. The company’s total capital raised now stands at $45 million, according to Crunchbase.
Oxygen’s funding announcement comes at the same time that it is introducing a new CEO. David Rafalovsky, former Group CTO and Global Head of Operations & Technology for European digital banking ecosystem Sber, will take the helm, succeeding company founder Hussein Ahmed. Ahmed will remain with the company as Oxygen’s Chief Product Officer.
The new funding and new CEO “mark a new era” for Oxygen, Rafalovsky said in a statement. He underscored the size and importance of the small business community in the United States, and said that he believed Oxygen should play a role in helping these enterprises grow and thrive. “I look forward to charting the path forward for the company, building world class solutions for small businesses and gig economy participants,” Rafalovsky said. “Not only are small businesses driving the U.S. economy, but they also keep the American dream alive.”
A neobank designed from the start to serve both consumers and small businesses, Oxygen offers digital natives, creatives, and entrepreneurs an all-in-one digital banking platform that provides cashback rewards, early direct deposit, money transfers, and high-yield savings. Oxygen offers four tiers of membership – from the $0 annual fee “Earth” level to the $199.99 annual fee “Fire” level – which enable accountholders to choose their preferred debit card spending and payroll direct deposit limits – as well as the annual spending required in order to access these features. Banking services are provided by The Bancorp Bank, which also issues the Oxygen’s Visa debit card.
Founded in 2020, Oxygen was named Best Digital Bank in the 2021 Finovate Awards and Best Overall Mobile App in the Fintech Breakthrough Awards that same year. In December, the company launched its OTags functionality that makes it easier for Oxygen accountholders to send and request money, OGifts – which enable multiple Oxygen members to send money to a single Oxygen member – and more.
U.K.-based digital bank Zopa landed $92 million from existing investors IAG Silverstripe, Davidson Kempner Capital Management LP and Augmentum.
The funding, which “cements and enhances” the company’s unicorn status, brings Zopa’s total raised to $880 million.
Since launching its digital bank in 2020, Zopa has attracted $3.69 billion (£3 billion) in deposits, added more than $2.46 billion (£2 billion) in loans on its balance sheet, and issued more than 400,000 credit cards.
Zopapulled in $92 million (£75 million) this week to bolster its digital banking capabilities, proving that the race is still going strong in the challenger banking arena. The funding brings the U.K.-based company’s total raised to more than $880 million.
While Zopa did not disclose an updated valuation, the company said it “cements and enhances” its unicorn status. Zopa originally became a unicorn in 2021 after its $304 million funding round.
Also undisclosed is the round’s lead investor. Interestingly, the lead investor in the company’s 2021 round, SoftBank, is not participating in today’s investment. Zopa CEO Jaidev Janardana told TechCrunch, however, that SoftBank is still an active board member. He also mentioned that today’s funding included investments from existing investors IAG Silverstripe, Davidson Kempner Capital Management LP, and Augmentum.
Founded in 2005, the former peer-to-peer lending platform launched its digital bank in 2020 and has since attracted $3.69 billion (£3 billion) in deposits, added more than $2.46 billion (£2 billion) in loans on its balance sheet, and issued more than 400,000 credit cards.
“We are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories,” said Janardana. “This has already led to several profitable months in 2022 and will very likely convert into full-year profitability in 2023 for the first time.”
Zopa said that it will use the funding received today to pay off its debts and fuel upcoming mergers and acquisitions, which could begin this quarter.
Cion Digital announced a rebrand to UPTIQ this week.
The new name is designed to reflect the company’s focus on bringing financing solutions to wealth managers and advisors.
Headquartered in Texas and founded in 2021, the company made its Finovate debut at FinovateSpring 2022.
Financial intelligence platform provider Cion Digital, which made its Finovate debut at FinovateSpring last May, has rebranded. The Austin, Texas-based company announced this week that its new name is UPTIQ. The new moniker is designed to underscore the company’s commitment to bring its lending solutions to businesses in the wealth management industry.
“As our business model evolves, we want our name to reflect who we are and what we do,” company Chief Marketing Officer Katie Robinson said. “UPTIQ reflects the results we expect our solutions to bring to advisors and their clients – the upward movement we want for all our stakeholders. We want to inspire and establish our trustworthiness as a partner to financial advisors.”
UPTIQ offers a platform that enables wealth advisors to grow their AUM by providing loans to help finance purchases, liquidity, and working capital. The company’s Financial Intelligence Platform leverages data analytics and AI to ensure clients are offered financing solutions that match their goals and preferences. The company has secured partnerships with a number of lenders such as Credibility Capital, Bank 34, and Celtic Bank that have made their lending solutions available on the platform.
“With the UPTIQ Financial Intelligence Platform, wealth advisors can collaborate with lenders and their clients throughout the loan origination process and feel confident they’ve identified the best loan product to meet their clients’ needs,” UPTIQ founder and CEO Snehal Fulzele said. “Our new name reflects the value we offer to all stakeholders.”
UPTIQ will also offer wealth managers and advisors other services in addition to financing. These offerings include access to deposits, alternative investments, and insurance. The goal is to enable wealth managers to grow their businesses by offering more holistic services that encompass more than traditional wealth management.
Founded in 2021, the company demoed its Crypto Dealership Platform at FinovateSpring 2022. The technology, a blockchain orchestration platform, enables auto dealers and other retailers of “big ticket” items to accept cryptocurrency as payment. The company ended last year with a new partnership, teaming up with fellow Finovate alum upSWOT to bring embedded finance solutions to wealth managers and commercial loan brokers to help them serve their SME customers. UPTIQ raised $12 million in seed funding a little over a year ago in a round led by Green Visor Capital and 645 Ventures.
Risk management and compliance software company Ncontracts unveiled its new risk management suite, Ncontracts RPM, this week.
Ncontracts RPM integrates four of the company’s solutions — Nrisk, Nvendor, Ncomply, and Nfndings – into a combined offering that will help FIs leverage data to enhance risk and compliance management.
Headquartered in Tennessee, Ncontracts made its Finovate debut at FinovateFall 2022 in September.
Integrated risk management and compliance software provider Ncontractslaunched its risk management suite this week. The Ncontracts RPM Suite blends risk, vendor, compliance, and finding management solutions to help boost efficiency and drive better-decision making. Known separately as Nrisk, Nvendor, Ncomply, and Nfindings, the combined elements of Ncontracts’ RPM Suite help financial institutions turn data into the kind of relevant, actionable insights to reduce the burden of risk and compliance management.
“Financial institutions need better, more comprehensive risk management tools to successfully respond to digital disruption, economic uncertainty, regulatory change, staffing shortages, and other challenges,” Ncontracts CEO Michael Berman said. “Our RPM suite brings knowledge and insights to our clients to create a high-performing system that helps financial institutions efficiently leverage data to drive success.”
Headquartered in Brentwood, Tennessee, and founded in 2009, Ncontracts made its Finovate debut at FinovateFall 2022. With a customer base of more than 4,200 financial institutions, mortgage companies, and fintechs in the U.S., Ncontracts offers a cloud-based technology solution that encompasses vendor, organizational, audit, and compliance risk management.
In the months since the company’s Finovate appearance in September, Ncontracts added C-suite talent in the form of new Chief Customer Officer Melissa Outlaw, new Chief Sales Officer Michelle Amato, and new Chief Human Resource Officer Cathy Guthrie. Named to the Inc. 5000 roster of the fastest-growing private companies in the U.S. for the fourth year in a row in 2022, Ncontracts raised $1.1 million in funding prior to being acquired by Gryphon Investors in 2020 for an undisclosed sum.
“The risks facing financial institutions are multiplying and becoming more complex, and no bank, regardless of size, can justify using spreadsheets today to manage the process when the stakes are so high,” Gryphon Investors Software Principal Jon Cheek said when the acquisition was announced. “Ncontracts’ software has made it easy for financial institutions of all sizes to manage the spectrum of complex risks and regulations facing them today.”
American Express is launching American Express Business Blueprint, a set of digital cash flow management tools for small businesses.
Small businesses can access the MyInsights cash flow solution within Business Blueprint at no charge.
Business Blueprint evolved out of Kabbage, an alternative lending startup that the company acquired in 2020. With the launch of Business Blueprint, the Kabbage brand is now retired.
Cash flow management tools are not new to fintech, but the industry gets excited when card giant American Express launches new tools. That’s the case today– the company unveiledAmerican Express Business Blueprint, a set of digital cash flow management tools for small businesses.
Business Blueprint offers small business users digital financial products, payment card management tools, and cash flow insights via its MyInsights tool. The platform offers to lighten the load of small business owners by helping them manage cash flow, take out a loan, pay bills and vendors, check their account balances, deposit checks, accept card payments, and more. Additionally, the tool projects cash balances out to 30 days and sends spending alerts, as well as enables users to view and redeem their membership rewards points.
“Business Blueprint marks a critical next step in American Express’s vision of becoming a digital one-stop shop for small businesses’ financial needs, whether to manage their cash flow, make payments, get paid, or access working capital,” said company Group President of Global Commercial Services and Credit & Fraud Risk Anna Marrs.
American Express is onboarding small businesses onto Business Blueprint for free, and offering its MyInsights cash flow solution to them at no charge. That’s because the company is looking to sell businesses on its small business lending products, including:
American Express Business Line of Credit for a commercial line of credit ranging from $2,000 to $250,000 with interest rates ranging from 2% to 27%, depending on the term
American Express Business Checking for a digital business checking account that earns 1.30% APY on balances up to $500,000, and the ability to earn Membership Rewards points
American Express Payment Acceptfor accepting all major card payments from customers online
The new offering is rising out of the ashes of Kabbage, an alternative lending company launched in 2009 that American Express acquired in 2020. As Kabbage Co-Founder Rob Frohwein explained in a post on LinkedIn, “The end of era – for me and my Kabbage from American Express colleagues. Our company is fully integrated with Amex (and I’ve been gone for over a year).”
Frohwein went on to reminisce about how the day his team named the company “Kabbage.” One of the company’s early investors, Nicholas Steele, wanted to go with the name Cabbage. However, the “C” was changed to a “K” when the team discovered the cost of the Kabbage domain name was $73,800 cheaper. “Congrats to all Kabbagers – old and current. You may now refer to our business as Business Blueprint, but you’ll always bleed green and think twice when you enjoy actual cabbage in your salad or soup,” Frohwein added.
