Daily news

CSI to Acquire Velocity Solutions

CSI to Acquire Velocity Solutions
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Mergers & Acquisitions, Velocity Solutions
  • CSI announced plans to acquire deposit growth firm Velocity Solutions.
  • CSI will integrate Velocity’s solutions that drive revenue, service, and compliance for community banks and credit unions into its existing offerings.
  • Financial terms of the deal were undisclosed.

Community bank technology provider CSI announced plans to acquire deposit growth firm Velocity Solutions. Financial terms of the deal were undisclosed.

Velocity Solutions was founded in 1995 to offer tools that help drive revenue, service, and compliance for community banks and credit unions. The company’s Velocity Intelligent Platform powers its solutions, among which are a Retail Performance Engine, Consumer Liquidity Engine, and Digital Business Lending. These tools leverage machine-led intelligence to help firms manage risk, drive revenue, increase engagement, and boost non-interest income.

Velocity Solutions, which demoed its Akouba cloud-based lending platform at FinovateFall 2021, services more than 30 million consumers and business owners.

“Our customers rely on us to provide the advanced tools and software that drive revenue, efficiency and cost savings,” said CSI CEO and president David Culbertson. “Velocity’s data-driven approach to deposit management and its intelligent overdraft decisioning engine are each designed to deepen relationships with account holders while minimizing risk exposure for financial institutions.”

CSI plans to integrate Velocity’s solutions into its existing financial services suite, which includes everything from core banking to lending to managed IT and cybersecurity, advisory services, and more. “We’re eager to identify more opportunities to evolve the differentiated financial software and technology solutions that make CSI the first choice for community and regional financial institutions nationwide,” added Culbertson.

“The CSI and Velocity teams are united by the same mission to empower community and regional financial institutions to compete and win against the largest banks in the country,” said Velocity Solutions CEO Christopher Leonard. “Our customers are facing increasing pressure to grow in a challenging rate and deposit environment and require innovative ways to acquire and serve their account holders. We are eager to tap into CSI’s deep expertise and development prowess to expand our banking management platform and support customers in meeting their goals.”

CSI expects that today’s purchase will complement the acquisition of community bank loan servicing platform, Hawthorn River, the company made in December of last year.

CSI, which recently launched an expanded developer portal, was founded in 1965. The company received an investment of an undisclosed amount from private equity firm TA Associates in January 2024.

Photo by Martin Adams on Unsplash

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ID-Pal Forges Strategic Partnership with CLOWD9

ID-Pal Forges Strategic Partnership with CLOWD9
By David Penn Posted on
Categories: Alumni News, Daily news, ID-Pal
  • Identity verification specialist ID-Pal announced a global strategic partnership with CLOWD9.
  • The partnership will integrate ID-Pal’s AI-powered identity verification technology into CLOWD9’s payment solutions portfolio.
  • ID-Pal made its Finovate debut at FinovateFall 2024 in New York.

Fresh off its Finovate debut at FinovateFall this month, identity verification specialist ID-Pal has announced a global strategic partnership with CLOWD9. Courtesy of the partnership, CLOWD9 will offer ID-Pal’s AI-powered identity verification technology via its payment solutions portfolio.

“This strategic partnership will allow CLOWD9 clients to access both a compelling end-to-end identity solution and an AML screening solution with advanced AI-fraud detection capabilities,” CLOWD9 CEO and Co-Founder Suresh Vaghjiani said.

Using a combination of document, database, and biometrics checks, ID-Pal enables businesses to verify the identity of their customers in real-time. Available via API, SDK, or through the Salesforce App Exchange, ID-Pal’s technology detects AI-generated documents, deepfakes, and injection attacks, providing advanced fraud detection without requiring direct access to customer data. ID-Pal also streamlines OFAC, AML, and KYC processes into a single compliant workflow to ensure a comprehensive audit trail.

“We’re delighted to be adding our award-winning identity verification solution to the CLOWD9 technology portfolio,” ID-Pal Enterprise Sales Manager Mark O’Hara said. “Together we can help financial institutions adapt and thrive in a new world of digital payments and enhanced security by democratizing secure, robust fraud prevention tools.”

The partnership with CLOWD9 advances the company’s mission to revolutionize the payment industry through a combination of advanced payment processing and AI-powered identity verification. Founded in 2021 and headquartered in London, CLOWD9 was among the first B Corp certified payments companies. The firm offers a cloud-native, decentralized issuer payments processing platform that serves challenger, consumer, and SME banks; e-wallets and crypto exchanges; virtual and corporate card programs; and more.

ID-Pal is not the only Finovate alum that CLOWD9 has teamed up with in 2024; the company announced a partnership with reconciliation and reporting services provider Kani Payments in June. Like ID-Pal, Kani is a relative newcomer to Finovate, debuting at FinovateSpring last year. Additionally, this week’s news from CLOWD9 comes just days after the company introduced new Chief Technology Officer Paul Hansford. Hansford comes to CLOWD9 after six years as head of software engineering for payment company Thredd.

Founded in 2016 and headquartered in Dublin, Ireland, ID-Pal made its Finovate debut at FinovateFall 2024. At the conference, company CEO and Founder Colum Lyons demoed ID-Pal’s technology that uses “pure AI, not people,” to provide real-time identity verification. In his remarks, Lyons highlighted the fact that many legacy vendors in the space rely as much on people for identity verification as they rely on technology. In contrast, he said, ID-Pal’s 100% AI-powered platform leverages 160+ trusted data sources and 7,000+ identity documents to provide more accurate results and greater efficiency.

Photo by Luciann Photography

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MoneyLion Taps TransUnion to Personalize Offerings

MoneyLion Taps TransUnion to Personalize Offerings
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, TransUnion
  • MoneyLion will integrate TransUnion’s data and credit solutions into its hosted enterprise credit-decisioning platform and direct-to-consumer finance tools.
  • Leveraging TransUnion’s data will help MoneyLion deliver more personalized and relevant financial offers, and ultimately improve the user experience.
  • TransUnion also offers marketing, fraud, risk, and advanced analytics tools. The company showcased its Enchanced BreachIQ tool at FinovateSpring earlier this year.

Mobile banking platform MoneyLion will be adding personalized touches to its consumer-focused products and services thanks to a partnership with TransUnion.

Under the agreement, MoneyLion will integrate TransUnion’s data and credit solutions into its hosted enterprise credit-decisioning platform and direct-to-consumer finance tools. By using the data from TransUnion, MoneyLion will be able to deliver more personalized and relevant financial offers to its clients, which it expects will improve the user experience. For its part, TransUnion will see its credit solutions expand their reach into not only the MoneyLion platform, but also to its partner network.

TransUnion Executive Vice President and Head of Financial Services Jason Laky said that the partnership will drive efficiency and innovation in the industry. “By integrating our comprehensive credit data with MoneyLion’s innovative digital acquisition platform,” he added, “we can offer a more robust experience to consumers and our partners alike, ensuring informed decision-making and greater consumer satisfaction.”

TransUnion was founded in 1968 and entered into the consumer credit reporting industry in 1969. Since then, the Illinois-based company has expanded its services to offer marketing, fraud, risk, and advanced analytics. As part of its risk portfolio, TransUnion offers Enhanced BreachIQ, which it demoed earlier this year at FinovateSpring. The technology behind BreachIQ originated from Breach Clarity, a fintech founded by Jim Van Dyke that won Best of Show honors at FinovateSpring 2020.

New York-based MoneyLion, which was founded in 2013, offers both direct-to-consumer banking tools as well as a marketplace of embedded banking tools, called Engine, for businesses. This enterprise technology suite serves as a marketplace for financial products, enabling financial services and non-financial services companies alike to add embedded finance to their business leveraging MoneyLion’s API.

“This partnership with TransUnion exemplifies MoneyLion’s commitment to creating a dynamic digital consumer finance ecosystem where consumers can seamlessly access the financial tools and insights they need, while also enabling financial institutions to engage with customers more effectively,” said MoneyLion Co-Founder and CEO Dee Choubey. “By integrating our leading platform with TransUnion’s credit data solutions, we can offer consumers more personalized and relevant financial products that meet their unique needs at every stage of their financial journey.”

Photo by Christin Hume on Unsplash

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PayPal Unveils PayPal Everywhere

PayPal Unveils PayPal Everywhere
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, PayPal
  • PayPal enhanced its rewards program to allow consumers to receive 5% cash back on a spending category of their choice.
  • Shoppers can receive up to $1,000 in cash back in their selected category.
  • PayPal also announced that customers can add their PayPal Debit Card to their Apple Wallet.

Payments pioneer PayPal has spent the year working to make it easier for customers to make transactions. Today, the California-based fintech announced it is expanding its rewards program to incentivize customers to choose PayPal at the point-of-sale.

Under the new, enhanced rewards program, consumers choose a monthly category of spending, such as groceries or clothing, that they want to receive 5% cash back on while using their PayPal Debit Mastercard. Shoppers can receive up to $1,000 in cash back in their selected category.

Users can also stack cash back offers. For example, if a DoorDash customer selected restaurant as their monthly category, they will receive the 5% cash back offer for using their PayPal Mastercard and another 10% cash back if they save the deal from DoorDash in the PayPal app. The 15% total rewards would be automatically applied when checking out with PayPal.

“We know that consumers are looking for smart, simple and safe ways to make their everyday purchases while also getting more value out of every transaction. That’s why millions of customers can now enjoy the trust and convenience they love about PayPal everywhere – both in-store and online, with access to rich rewards that put more money back in their pockets,” PayPal President and CEO Alex Chriss. “It’s a pivotal moment for PayPal and its customers and a significant first step as we bring the power of PayPal to everywhere they shop.”

PayPal also unveiled today that customers can add their PayPal Debit Card to their Apple Wallet, which will offer even more options at the point of sale.

“We’re excited to work with PayPal to bring Apple Pay to PayPal Debit Card cardholders and help deliver a seamless shopping experience to even more users,” said Eddy Cue, Senior Vice President of Services at Apple. “Whether in-store, online or in-apps, PayPal debit card cardholders will be able to enjoy the convenience and security that Apple Pay brings to their everyday lives.”

Photo by Nick Fewings on Unsplash

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3forge Lands Funding from Morgan Stanley

3forge Lands Funding from Morgan Stanley
By Julie Muhn (@julieschicktanz) Posted on
Categories: 3forge, Alumni News, Daily news
  • Low code platform 3forge received funding from Morgan Stanley.
  • The amount of the round, which marked 3forge’s first external investment since it was founded in 2011, was undisclosed.
  • 3forge will use the funds to fuel its global go-to-market strategy and expand its development community. 

Low code platform 3forge has landed its first external investment round since it was founded in 2011. Morgan Stanley invested an undisclosed amount in the New York-based company.

3forge, which counts banks, hedge funds, asset managers, exchanges, and sovereign wealth funds among its clients, offers a low-code platform developers can use to build front-end, enterprise applications. The company is able to reduce development time, minimize maintenance costs, offer scalability and ensure uptime because it built its own web server, database, and messaging layer from scratch in-house.

“We are thrilled to close on an investment by Morgan Stanley, a longstanding partner who truly understands the value and performance of 3forge technology,” said 3forge Founder Robert Cooke. “This is an exciting milestone as we continually expand our capabilities to help enhance client workflows and productivity.”

3forge will use the funds to accelerate its global go-to-market strategy and expand its development community. 

3forge is known for its high-performance data visualization and application development platform. The company’s competitors include companies like Appian and OutSystems, which offer similar low-code solutions designed to streamline the development process. 3forge’s platform, however, differentiates itself because of its ability to handle complex data environments, an attribute that makes it a valuable tool for banks with large data volumes.

Low-code/no-code platforms became popular in fintech in the mid-2010s. Today, their use is changing how banks and developers build and deploy applications. That’s because they enable organizations to create custom solutions quickly– without the need for coding skills. This not only speeds up the development cycle, but it also reduces operational costs.

Banks need to make changes to their applications faster and more frequently than ever before, but there is a talent gap of banks that demand strong developer talent and the availability of developers. The promise of a low-code platform can help banks and fintechs adapt to evolving customer demands and regulatory requirements, while limiting the need to hire new developer talent.

Photo by Sven Piper on Unsplash

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Ncontracts Acquires Third Party Risk Management Company Venminder

Ncontracts Acquires Third Party Risk Management Company Venminder
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Mergers & Acquisitions, Ncontracts
  • Ncontracts has acquired Venminder, a third-party risk management SaaS platform, to enhance its governance, risk, and compliance services.
  • The acquisition will broaden Ncontracts’ expertise in third-party risk management and strengthen its position in both SaaS and knowledge-as-a-service markets.
  • Ncontracts also announced that Hg has acquired Venminder’s previous shareholders and Ncontracts’ investor Gryphon.

Risk management and compliance solutions provider Ncontracts made an acquisition today to help broaden its governance, risk, and compliance capabilities. The Tennessee-based company has bought third party risk management program company Venminder.

Financial terms of the deal were not disclosed.

Kentucky-based Venminder offers a SaaS platform for third-party risk management that helps more than 1,200 customers manage their vendor relationships– from onboarding to offboarding. With Venminder, firms can manage vendors, track contract data, perform due diligence and oversight, send and score questionnaires, conduct risk assessments, systemically monitor risks across domains, order due diligence assessments on vendor controls, and more.

Ncontracts anticipates the purchase will offer it more depth and expertise in third-party risk management, and will enhance its position in the software-as-a-service (SaaS) and knowledge-as-a-service (KaaS) space.

“We are excited to join forces with Venminder,” said Michael Berman, Ncontracts Founder and CEO. “With our teams coming together to help reduce risk, improve compliance and control costs, we will continue to strengthen the financial industry and the communities they serve.”

Also this week, Ncontracts, which demoed its technology at FinovateFall 2022, announced that investor Hg bought out prior Venminder shareholders as well as Ncontracts shareholder Gryphon Investors– which acquired Ncontracts in 2020. With its purchase, Hg will bring both resources and expertise.

“With the investment and support from Hg, we are well positioned to continue our rapid growth,” said Berman. “Gryphon has been a valuable partner, and I want to thank their outstanding team of operating partners, operating advisors and investment professionals.”

Third party risk management is a hotter topic than ever in today’s banking and fintech landscape, especially as the number of banks hit with consent orders rises due to regulatory breaches and compliance issues. With the increasing reliance on third-party vendors for technology, payment processing, and other services, the potential for vulnerabilities and risk has grown significantly.

Exacerbating the issue, regulatory bodies are tightening scrutiny on how banks manage their third-party relationships, ensuring that banks maintain strict oversight, due diligence, and risk mitigation strategies to safeguard sensitive data and operational resilience.

Photo by Edmond Dantès

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Experian to Offer Debt Consolidation in Partnership with Paylink Solutions

Experian to Offer Debt Consolidation in Partnership with Paylink Solutions
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Experian
  • Experian has partnered with affordability software and payments company Paylink.
  • Experian will leverage Paylink’s ReFi solution, which will validate and repay consumers’ outstanding debts by consolidating them into a new loan with better terms.
  • ReFi will allow consumers to conduct a financial reset, while offering lenders the assurance that the new loan is affordable.

Data analytics and consumer credit reporting company Experian is broadening its services this week by expanding its debt consolidation offering. The Ireland-based company is leveraging a partnership with affordability software and payments company Paylink, which will help work around affordability restrictions with debt consolidation loans.

Experian reports that the number one reason consumers search for loans on its marketplace is for debt consolidation. However, lenders are unable to directly pay off customers’ debts when they take out a debt consolidation loan. This means that, during the underwriting process, lenders need to double count both the new loan and existing debts. As a result, some consumers are unable to qualify for debt consolidation loans, since the new loan is considered ‘unaffordable.’ This can result in consumers borrowing from an unlicensed lender, loan shark, or friends and family.

“The benefit of this partnership is twofold, as the ReFi solution offers a valuable tool for lenders to expand their offerings and reach a broader customer base that may have originally been overlooked,” said Experian Consumer Services Managing Director Eduardo Castro.

In today’s partnership, Experian aims to promote financial inclusion and improve access to credit using Paylink’s ReFi tool. ReFi validates and repays consumers’ outstanding debts by consolidating them into a new loan with better terms. After validating a consumer’s card, loan, and overdraft accounts, ReFi confirms balances and settlement amounts, pays creditors, and offers evidence that the accounts are closed.

“ReFi enables a financial ‘reset,’ potentially leading to significant savings and quicker debt repayment,” said Paylink CEO Jake Ranson. “It also provides lenders with assurance that the new loan is affordable and will be used to clear previous debts, helping customers achieve their financial goals. With unparalleled access to data, analytics and market insight, Experian is singularly placed to help ReFi reach thousands more people seeking to realize the opportunities access to reasonably priced credit brings.”

Experian and Paylink are not alone in trying to help consumers struggling with debt. There are a handful of other players in fintech seeking to help consumers solve their debt burdens. Finovate alums Peach, Payitoff, and Debbie, which demoed their technologies at FinovateFall last year, each bring a fresh approach to debt management and payoff. These platforms are not just about numbers; they aim to empower consumers with tools that simplify debt repayment, offering tailored strategies to help users regain financial stability.

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Community Bank & Trust Leverages ValidiFI to Verify Bank Account Information

Community Bank & Trust Leverages ValidiFI to Verify Bank Account Information
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, ValidiFI
  • Community Bank & Trust selected ValidiFI to help verify bank account ownership and possession for prospective borrowers.
  • Community Bank & Trust will leverage ValidiFI’s vAuth to verify bank account status and account ownership and possession for its Tax Refund Advance loan program.
  • ValidiFI was acquired by alternative bank and payment data firm Ribbit last June.

Risk mitigation and compliance solution provider ValidiFI announced this week that Community Bank & Trust selected its technology to help verify bank account ownership and possession for potential borrowers.

Community Bank & Trust will leverage ValidiFI’s vAuth to verify bank account status and account ownership and possession for its Tax Refund Advance loan program. Using vAuth will allow Community Bank & Trust to make real-time, accurate approval decisions. The bank will also have more visibility into scams from fraudulent bank accounts, and will ultimately allow Community Bank & Trust to meet customer lending needs quickly.

“Partnering with ValidiFI and implementing their vAuth technology is a natural progression in enhancing our Tax Refund Advance loan program,” said Community Bank & Trust President & CEO Steve Jefferies. “This collaboration allows us to verify account ownership and possession with unparalleled accuracy and speed, ensuring our customers can access their funds quickly and securely while we mitigate the risks associated with fraudulent accounts.”

ValidiFI was founded in 2014 to offer predictive bank account and payment intelligence. The Florida-based company leverages workflow automation company Omni Platform to offer organizations and financial institutions actionable insights. ValidiFI analyzes connections between bank accounts, consumers, and payment performance to help validate bank accounts, detect fraud, and assess credit risk.

“We are excited to be able to help Community Bank & Trust ensure applicants have current authorized access to an account leveraging our real-time microdeposit solution,” said ValidiFI CEO Greg Rable. “This cutting-edge technology enhances the accuracy and security of the verification process, helping to ensure that every applicant is properly validated.”

ValidiFI was acquired by alternative bank and payment data firm Ribbit last June. Greg Rable is CEO.

Photo by Monstera Production

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PayPal and Fiserv Tighten Ties for Faster Checkout

PayPal and Fiserv Tighten Ties for Faster Checkout
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Fiserv, PayPal
  • Fiserv is tapping PayPal to help its merchant clients offer faster checkouts through PayPal’s Fastlane.
  • Fastlane recognizes returning customers via email, allowing them to autofill payment details and complete purchases in as little as one click.
  • PayPal estimates Fastlane users convert more than 80% of the time, with a 50% higher conversion rate and a 32% faster checkout process compared to non-users.

After first partnering more than a decade ago, PayPal and Fiserv have furthered their partnership to help Fiserv’s merchant clients leverage PayPal to offer shoppers a faster checkout experience.

Specificaly, Fiserv will allow its merchant clients to connect to PayPal’s Fastlane, which will ultimately help speed up guest checkout flows in the U.S. Fiserv joins BigCommerce, Bold, Adobe, and Salesforce, which also offer PayPal’s Fastlane.

“We’re excited to deepen our collaboration with Fiserv and extend our innovative products and solutions to a broader audience,” said PayPal Executive Vice President and General Manager Large Enterprise and Merchant Platform Group Frank Keller. “This partnership reinforces our commitment to driving excellence in checkout convenience by partnering with leading payment service providers and e-commerce platforms.”

Fastlane, which PayPal first launched in January and then made generally available earlier this month, recognizes customers early in the checkout process by their email. After customers receive a one-time passcode sent via email, Fastlane allows shoppers to access their saved information by autofilling the fields in the checkout flow. Once verified, customers can complete their purchase in as little as one click. If Fastlane does not recognize a shopper by their email, it allows them to create a Fastlane profile by opting in during their purchase process, enabling faster transactions in the future.

Because the tool does not require users to fill out forms or remember passwords, PayPal estimates that guest shoppers using Fastlane convert more than 80% of the time, have up to 50% higher conversion rates compared to non-Fastlane users, and reduce the time to checkout by 32%.

“Fiserv is committed to simplifying the complexities of commerce, creating value for our clients by making it simple for businesses to enable new, engaging experiences for their customer base,” said Fiserv Head of Merchant Solutions Jennifer LaClair. “Our expanded partnership with PayPal supports our mission to enhance client value by providing simple, cutting-edge solutions to our clients that elevate and accelerate the commerce experience.”

Photo by David Rado

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Numeral Teams Up with HSBC Innovation Banking UK to Boost Embedded Payments

Numeral Teams Up with HSBC Innovation Banking UK to Boost Embedded Payments
By David Penn Posted on
Categories: Alumni News, Daily news, Numeral, Qover
  • Paris-based paytech Numeral announced a collaboration with HSBC Innovation Banking UK.
  • The partnership will enable customers of both companies to embed HSBC Innovation Banking UK’s payment and account services via Numeral’s APIs.
  • Numeral made its Finovate debut at FinovateEurope 2023 in London.

French fintech Numeral is collaborating with HSBC Innovation Banking UK to enable clients of both companies to embed HSBC Innovation Banking UK’s payment and account services via Numeral’s APIs. Among the first companies to embrace this new offering is insurtech and fellow Finovate alum Qover, which will leverage the technology to enhance its claim payout operations.

“Innovative companies, for which payments are core to their products, often struggle to find banking partners that understand their unique needs,” Numeral CEO and Co-founder Édouard Mandon said. “This is why we are thrilled to collaborate with HSBC Innovation Banking UK to bring together our unique expertise and offer joint customers an out-of-the-box integration.”

The integration of Numeral’s platform with HSBC Innovation Banking UK’s cash management infrastructure will enable partnering fintechs, insurtechs, and marketplaces to send and receive UK Bacs, CHAPS and FPS payments, as well as SEPA and SWIFT payments. The integration will also facilitate access to HSBC Innovation Banking UK account balances and transactions in real-time. Qover has leveraged the technology as part of an initiative to streamline its end-to-end claim processing, specifically with regards to claim payouts.

“When claims are paid, customers benefit from the safety net that an insurance policy provides,” Qover Chief Customer Officer Ed Ackerman explained. “At Qover, we see the claims journey as the moment of truth for customers. We, therefore, decided to fundamentally reshape the claim experience, leveraging AI at key stages such as claim submission and review.” Integrating with HSBC Innovation Banking UK via Numeral’s API, Ackerman said, enables Qover to automatically initiate claim payouts upon approval and track payouts in real time. “Customers receive their payouts much faster and Qover’s operations have been streamlined,” he said.

HSBC Innovation Banking UK was formed in the summer of 2023, combining the innovation expertise and services of Silicon Valley Bank (SVB) UK (now HSBC Innovation Bank) with HSBC innovation teams in the U.S., Israel, and Hong Kong. HSBC UK bought SVB UK after parent company Silicon Valley Bank was shut down last year. With more than 650 employees, HSBC Innovation Banking UK serves businesses from early-stage growth stage startups to late-stage public and private corporations with investment banking, private banking, and asset management services.

Making its Finovate debut at FinovateEurope in 2018, Qover offers an embedded insurance orchestration platform that provides coverage for more than four million customers across 32 European countries. The company’s technology enables any business to embed insurance as a native component or as an add-on to their core offering. Founded in 2016 and headquartered in Belgium, Qover announced its entry into the Irish automobile insurance market in July and, in June, launched its AI-powered embedded insurance solution, which accelerates the claim settlement process.

Founded in 2021, Numeral made its Finovate debut at FinovateEurope 2023. At the conference, the company showed how its API platform enhances payment operations for financial institutions by automating bank payment processing. This year, Numeral forged partnerships with BNP Paribas in June, and with current account provider Deblock in April. The company introduced its support for Swift payments in February.

Photo by Nil Castellví on Unsplash

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Shift4 to Acquire Gift Card and Loyalty Company Givex

Shift4 to Acquire Gift Card and Loyalty Company Givex
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Mergers & Acquisitions
  • Shift4 is acquiring gift card and loyalty solutions Givex for an undisclosed amount.
  • The deal will expand Shift4’s client base by 130,000+ locations across 100+ countries.
  • The acquisition is expected to close in Q4 2024, and follows Shift4’s recent acquisitions of Revel Systems and Vectron Systems.

Payments processing technology company Shift4 announced plans to acquire gift card and loyalty solutions company Givex. Financial terms of the deal were undisclosed.

Givex was founded in 1999 to help businesses launch and manage gift card and e-gift solutions, loyalty programs, point-of-sale (POS) systems, and more. The company’s clients include Nike, Marriott, 7/11, Wendy’s, Best Western, Texas Roadhouse, and others.

Founded in 1994, Shift4 offers a range of in-person and online payments solutions, including physical point-of-sale, mobile ordering, and contactless payment solutions. The Pennsylvania-based company also offers fraud prevention and business intelligence tools, as well as a gift card platform to help clients manage, sell, and redeem gift cards. “By combining Shift4’s end-to-end payment solution with our value-added engagement services, we can deliver an unparalleled package to both of our customer bases,” said Givex CEO Don Gray.

Once it is finalized, today’s deal will offer Shift4 an additional 130,000+ client locations across more than 100 countries where Givex’s solutions are implemented.

“Givex has a considerable footprint around the world which will dramatically increase Shift4’s overall customer base,” said Shift4 President Taylor Lauber. “At the same time, their gift card and loyalty solutions are second to none and will add significant value for our current customers, creating stickier relationships and enhancing our overall value proposition. Similar to other deals we have recently completed, this acquisition aligns perfectly with how we like to deploy capital – adding blue-chip merchants at a low customer acquisition cost while delivering additional benefits to our customer base.”

As the -as-a-service economy in fintech picks up, companies have been increasingly integrating digital gift cards into their existing apps apps, making them more accessible and easier to manage. The rise of e-gift cards has also been fueled by the post-2020 increase in online shopping, with consumers opting for digital solutions that can be easily redeemed at a wide range of retailers, both online and in-store. Financial services platforms also leverage gift cards to promote customer engagement with personalized rewards and loyalty programs that drive consumer spending.

Moving forward, as firms continue to leverage consumer data we will likely see further data-driven marketing and personalization efforts that will allow companies to tailor gift card offerings to consumer preferences and enhance the user experience.

The deal, which is subject to closing conditions, is expected to be completed in the fourth quarter of this year.

Shift4 has made a total of 14 acquisitions, including Revel Systems and Vectron Systems earlier this summer. The company went public in 2020 under the ticker symbol FOUR on the New York Stock Exchange and has a current market capitalization of $7 billion.

Photo by Suzy Hazelwood

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CPI Card Group Teams Up with Rippleshot for Fraud Prevention

CPI Card Group Teams Up with Rippleshot for Fraud Prevention
By David Penn Posted on
Categories: Alumni News, Daily news, Rippleshot
  • Fraud prevention company Rippleshot has forged a strategic alliance with paytech CPI Card Group.
  • CPI Card Group will leverage Rippleshot’s AI, machine learning automation, and predictive analytics to prevent credit and debit card fraud.
  • Chicago-based Rippleshot made its Finovate debut at FinovateSpring 2014 and returned later that year to demo its technology at FinovateFall.

A strategic alliance between payment technology company CPI Card Group and fraud prevention specialist Rippleshot will help the paytech proactively defend itself against card fraud.

Headquartered in Littleton, Colorado, CPI Card Group offers a range of credit, debit, and prepaid solutions, as well as complimentary digital solutions and Software-as-a-Service (SaaS) instant issuance. The company’s partnership with Rippleshot will enable its customers to take advantage of the fraud prevention firm’s technology that leverages AI, machine learning automation, and predictive analytics to identify and stop credit and debit card fraud.

“Our partnership with CPI furthers our commitment to collaborating and helping financial institutions better protect their revenue and their account holders,” Rippleshot Co-Founder and CEO Canh Tran said. “Keeping up with evolving fraud trends is complex, labor intensive, and impossible to tackle alone. We’re excited to team up with CPI and their partners to help financial institutions proactively transform fraud prevention with a data-driven fraud management approach.”

Rippleshot’s fraud analytics platform spots fraud patterns and creates intelligence and rules to proactively identify emerging fraud risks and stop fraud incidents before they take place. With the backing of an expansive data consortium of 5,000+ financial institutions, the platform also enables banks and financial institutions to block merchants deemed “high risk” and limit the potential damage from major data breaches.

Rippleshot clients using the platform on a consistent basis have experienced a decrease in fraud activity of up to 35% a year. These clients have also identified 10x more compromised incidents compared to average network alerts. Thanks to Rippleshot’s risk score-based reissuance strategies, the fraud prevention process does not create additional friction for the client; institutions report 5x less disruption to customers’ transactions with Rippleshot’s technology.

“Rippleshot is a technology-forward solutions provider with a human-centric approach to decreasing fraud,” CPI Card Group VP of Business Development and Digital Solutions, Rob Dixon, said. “Through this partnership, our customers will be able to reduce costs associated with fraud loss, chargebacks, and manual monitoring while increasing profits and retaining top-of-wallet status with their cardholders.”

Founded in 1982 as Colorado Plasticard, CPI Card Group today is the largest manufacturer of credit, debit, and prepaid cards. The company went public in 2015, trades on the NASDAQ under the ticker PMTS, and has a market capitalization of $303 million. CPI Card Group began the year with the appointment of its new President and CEO John Lowe.

Headquartered in Chicago, Illinois, and founded in 2012, Rippleshot made its Finovate debut at FinovateSpring 2014. The company returned later that year to demo its fraud prevention technology at FinovateFall in New York.

Photo by Bhargava Marripati

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