Finovate Alumni News– May 30, 2014

  • Finovate-F-Logo.jpgThreatMetrix wins Judges Choice for Best Overall Fraud/Security Solution at 2014 CNP Awards.
  • HelloWallet acquired by Morningstar in $52.5 million deal.
  • PandoDaily takes a look at Venovate and its platform for enabling alternative investments.
  • Gonzobanker lists five ingredients in his Franken-banking product: all Finovate alums in Q2ebanking, Digital Insight, ACI Wordwide, and Alkami Technology, and Jwaala.
  • Fast Company profiles NICE Systems in a new feature on voice biometrics.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateSpring: Behind the Scenes with ChiaraMail, Dealstruck, and LendingRobot

In continuing our Behind the Scenes followup from FinovateSpring 2014 in San Jose, we’re taking a closer look at:

If you missed previous posts, you can check out previous Behind the Scenes with:

We’ll have further coverage next week, so stay tuned!



What they do
ChiaraMail makes email communication more secure and lightweight to enable financial institutions to communicate sensitive account details via email. It uses Envelope Content Splitting to send the subject of the email separately from the contents of the email. 
This separation, which stores the body of the email on a separate and secure server, also enables institutions to send large files, as well as lets them change the contents of the email after it has been sent.
For an extra layer of security, it uses an email plug-in that indicates the bank’s authenticity to the end user with a color-coded subject line.
    • Founded November 2012
    • Launched in April 2014 at FinovateSpring
The experience
ChiaraMail’s solution hinges on its Envelope Content Splitting (ECS) technology which allows two parties to communicate sensitive information directly in the body of the email. It can also communicate limited-time offers that the bank can update after the message is sent, and can send items that may be too large to send via email, such as a promotional video. 
The screenshot of the email below, which uses ECS, shows how a bank can communicate sensitive account information in the body of the email.
For the customer to get started, they first must download the ChiaraMail Android extension or plug-in on their computer (the company is working on an iOS version). The extension requires a one-time username and password. After it is set up, there is no need for the user to sign in each time, since it is embedded into their email client.
ChiaraMail install screen Android
Once the extension is on their device, fraudulent emails are indicated with red text in the subject line, while secure emails appear with a green subject line. If a fraudulent email is selected, the user sees a customized error message.

ChiaraMail can be useful for internal and external email communications. It is ideal for retail banks that want to ensure they are not being spoofed, and insurance brokers sending sensitive information back and forth with their customers. 

While ChiaraMail is currently focused on FIs, other potential uses include companies in healthcare, online retail, and medical verticals. Overall, it is ideal for any company that wants more control over their email communications, both internal and external.

Check out ChiaraMail’s live demo video here.

What they do
Dealstruck’s P2P lending platform is designed to progressively graduate small business borrowers who can’t qualify for a bank loan on to conventional financing sources. You can think of it as the step between predatory loans and a traditional loan for business financing. 
Dealstruck is unique because it pre-funds all of the deals on its platform; this practice allows the borrower to receive funding within four days. After the business receives funds, Dealstruck opens the investment for the crowd to fund it. 
    • 15 employees
    • For borrowers seeking $50,000 to $250,000 in financing
    • Offers 10% to 30% yields
    • Terms range from 12 to 36 months
The borrower experience
First, Dealstruck determines what amount the borrower qualifies for based on the information they supply about their funding goals, their company, personal information about the owners, and business financials.
Next, the borrower is presented with potential loan options and are asked to verify their information and to provide financial documents and bank statements.
Once the borrower supplies all the information, Dealstruck’s team of underwriters reviews
it in two business days, then calls the applicant to discuss their financing options. Financing is generally provided within four business days.
The investor experience
The investor dashboard shows the user how much money they have available to invest. They can view how their portfolio breaks down and can see details about their investments and their returns. 
The doughnut chart shows them how their investments are divided. The chart in the below screenshot divides the portfolio by industry. Investors can also toggle to view their investments by how many years the borrowers have been in business.
Investors looking for additional opportunities can view all borrowers in a list. The slide bars on the left enable them to filter by the business’ annual revenue and by the number of years they’ve been in business.

Dealstruck works to keep its process fast, flexible and transparent for all parties involved. Its new API that gives institutional investors access to all borrower data, and helps them tailor decision-making criteria, supports this goal. 
What they do
LendingRobot uses a proprietary algorithm to determine available and profitable P2P loans within one second and immediately invest on behalf of the user. Right now, it can invest users’ available balances in their existing Prosper and Lending Club accounts, and is working on supporting more platforms. 
LendingRobot serves as a middleman to reinvest users’ account balances so quickly that it is able to access loans that potentially have better returns than the ones users were previously accessing.
    • Charges a 0.45% per year fee
    • No minimum investment requirement
    • No setup fees
The experience
LendingRobot pulls details about loans listed on Prosper’s and Lending Club’s P2P lending platforms. To get started, the user links their Prosper or Lending Club account. In our case, we had to set up a separate API login password through Prosper before proceeding.
Users can view a list of all loans on LendingClub and Prosper accounts, as seen below, but LendingRobot recommends using its automated investment tool, which selects the best investment opportunities within seconds.
Those using the automated invest feature can select the types of loans they are interested in. For example, they can choose the amount, term, loan purpose, and expected return. 
This automation massively simplifies the investment process, while aiming to get higher returns for users by helping them invest more quickly, thereby beating other investors to loans with potentially better returns.

Stay tuned later this week for more behind-the-scenes features.

Finovate Alumni News– May 12, 2014

  • Xero and ASB launch business to bank payments.
  • Bancbox and Kingdom Trust Company partner to streamline the crowdfunding and P2P lending platform for the IRA investor.
  • Actiance tops Forrester’s social risk and compliance product list.
  • Strands hires new CEO, Erik Brieva.
  • Dealstruck and Entrepreneurial Finance Lab named finalists in Core Innovators Challenge.
  • FIS announces launch of FIS Instant Card to accelerate FI’s ability to provide new or replacement cards.
  • Chris Skinner highlights the relationship between SmartyPig and ICICI Bank in a feature on Banking-as-a-Service.
  • ZDnet takes a look at ShopKeep POS, including its recent $25 million investment form Thayer Street Partners.
  • The Motley Fools calls Loop, the invention that “will change the way you pay for everything.”
  • The Rock Trading Ltd. partners with Jumio for real-time ID verification services.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Dealstruck’s New API Helps Institutional Investors by Giving Them Data About Borrowers


This post is part of our live coverage of FinovateSpring 2014.

First up after lunch, Dealstruck launched its online investor API that caters to institutional investors:
“Historically, Dealstruck has offered an online matching service for individual lenders and a pooled investment vehicle for institutional investors. This has limited institutional investors to only one aggregate investment option. 
At Finovate, Dealstruck is announcing an online investor API specifically catered to the institutional investor, allowing them to access all data for individual borrowers and to tailor investment decision-making criteria for whole loan and fractional loan investment flexibility.”
Presenting: Ethan Senturia (CEO & Co-Founder) and Russell McLoughlin (CTO & Co-Founder)
Product Launch: April 2014
Metrics: $1.2M raised to date, 13 employees
Product distribution strategy: Direct to Consumer (B2C), Direct to Business (B2B), through financial institutions, through other fintech companies and platforms
HQ: Carlsbad, CA
Founded: July 2012
Product Demoed: Investor API
Twitter: @dealstruck

FinovateSpring 2014 Sneak Peek: Part 1


The northern hemisphere’s first day of spring last week can mean only one thing: FinovateSpring 2014 is just around the corner. To help you prepare for the upcoming onslaught of innovation, we’ll be dishing up bite-sized pieces of some of the companies you’ll see in San Jose on April 29 and 30.

In this first installment, we showcase ChiaraMail, Dealstruck, Digital Insight,, LendingRobot, and Verde International:


ChiaraMail offers the first technology to protect your customers from becoming victims of e-mail address spoofing, while providing them unprecedented e-mail privacy without the use of encryption.

    • Eliminates spoofing and the resulting identity theft.
    • Ensures in-transit privacy.
    • Adds critical functionality such as changing e-mails after sending, and improved mail network efficiency.
Why it’s great:
ChiaraMail technology assures your customers that a message that claims to be from you is actually from you.  

Robert Uomini, CEO/President
Uomini is founder of ChiaraMail and inventor/developer of the patented technology behind ChiaraMail. He has been developing disruptive technologies for many years.

David Head, Chief Marketing Officer
Head is a senior marketing and sales executive with more than 20 years of experience in enterprise and start-up companies bringing game-changing technologies to market.


Dealstruck is a web-based peer-to-peer lending company that offers a suite of financing products to small business borrowers designed to progressively graduate them toward conventional financing.


    • Real-time access to borrowers and deals
    • Ability to manipulate data from Dealstruck loan packaging to augment underwriting/yield
    • Opportunity to participate alongside others or take down full loans
Why its great:
Dealstruck provides the most complete suite of financing options for business borrowers and investment opportunities for lenders.  


Ethan Senturia, co-founder and CEO
Senturia is Wharton Business School graduate who previously ran Internet marketing for a lead generation startup, Ampush Media, and in distressed credit at Lehman Brothers.


Russell McLoughlin
McLoughlin, co-founder and CTO, is a B.S./M.S. who has worked at the Biodefense Knowledge Center at Lawrence Livermore National Laboratory, and at Google Machine Translation and Apple.


Digital Insight’s Promotion Suite for mobile reaches the right customers on their mobile device with the right offers at the moment of truth.


    • Brings personalized, relevant cross-sell offers from financial institutions to their customers.
    • Engages consumers in their moment of need anywhere, anytime and on any device.
Why it’s great:
Provides personalized engagements and enhanced communications to connect financial institutions with their customers like never before. 


Karishma Anand
Anand is the director of product management for Digital Insight. She is responsible for driving product strategy, execution for digital banking and payments solutions.


Marshall Yuan 
Yuan is a senior product manager at Digital Insight. In this role, he oversees the strategy and go-to-market plan for Android banking applications.

IDmeLogo verifies attributes of a consumer’s identity and ties them to a payment medium


    • CRM, Offers, Loyalty and Authentication via a payment medium
    • Elimination of physical credentials needed at checkout
    • Fraud prevention for high-value transactions via authentication
Why it’s great:
User-centric digital identity, attribute verification and a mobile device enables the holy grail of marketing: personalization  


Blake Hall 
Hall is a former Army Ranger and Harvard Business School graduate. Thanks to The Economist, he is the first Google result for “muscly entrepreneur.”


Matthew Thompson
Thompson is a former Army Ranger and a decorated combat veteran. He co-founded while attending Harvard Business School.


LendingRobot automates loan selection and investment in Peer Lending.

    • Fully automates investment in LendingClub and Prosper
    • Submits orders within one second after new loans appear
    • Automated definition of investment strategies
Why it’s great:
LendingRobot makes investing in Peer Lending simple and efficient, and allows individuals to compete with institutional investors.  


Gilad Golan, CEO 
Golan shipped almost every product he ever built (and he built a lot of them).


Emmanuel Marot, President
Marot uniquely mixes backgrounds in both user experience design and quantitative finance.


Verde International’s Verde Aurora is a next-gen automated loan-underwriting optimization engine satisfying customers, shareholders, regulators, dealers, and other stakeholders, instantly.

    • The best possible decisions and counteroffers, delivered in seconds
    • Loss models that outperform industry leading models by fourfold
    • Scalable deployment that any financial institution can afford
Why it’s great:
Verde Aurora obsoletes today’s decision systems by integrating behavioral models, DCF analysis and MPP-driven optimization for perfect instant offers, pleasing customers and shareholders alike. 

Patrick Reily, CEO and Co-Founder Verde International
Reily’s multidisciplinary approach to strategic planning and business development is the result of 25 years of experience in banking and financial services. 

Robert Hughes, CEO of Finance and Thrift Co.
Bob has over 30 years of experience as the President/CEO of federally insured financial institutions.

Stay tuned for a sneak peek of another six companies later this week.