Finovate Alumni News

On Finovate.com

  • NatWest, RBS to Offer Clients Business Banking Solutions from FreeAgent.
  • Card-Linked Offers Consolidates: Edo Interactive Acquired by Augeo.
  • Dwolla Raises Capital, Relaunches Access API.

Around the web

  • Persia International Bank chooses core banking technology from Temenos.
  • Kensho Technologies CEO Daniel Nadler weighs in on cybersecurity in the Age of Trump.
  • Rabobank to deploy UP Immediate Payments from ACI Worldwide.
  • Asset manager Schroders picks Capriza to help drive digital transformation.
  • Stuart Frankel of Narrative Science writes about bots and advanced natural language generation technology in Harvard Business Review.
  • De Surinaamsche Bank expands relationship with Fiserv to deepen core banking

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.

Finovate Alumni News

On Finovate.com

Around the web

  • Visa builds new blockchain payments platform, Visa B2B Connect, in partnership with Chain.
  • Wipro to acquire cloud services firm, Appirio, for $500 million.
  • Open source subscription billing and payments platform, Kill Bill, integrates with Dwolla.
  • Revolut wins Best New Customer Facing Innovation at Emerging Payments Awards 2016.

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.

Finovate Alumni News

On Finovate.com

  • Check out this week’s FinDEVr APIntelligence.
  • Payoneer Closes $180 Million Series E Round
  • Finovate Alums Earn Spots in FinTech Forward 20 “Companies to Watch”

Around the web

  • IBM announces $200 million investment in its Watson IoT business in Munich. See IBM at FinDEVr Silicon Valley, October 18 & 19.
  • Novum Bank chooses Netverify from Jumio to speed client onboarding. Be sure to check out our recent interview with Jumio CEO Stephen Stuut.
  • Thomson Reuters launches ONESOURCE InDirect Tax Development Partner Program.
  • Top Image Systems wins $450,000 deal with U.S. government to deploy eFLOW.
  • BankNXT interviews Dwolla’s Jordan Lampe about real-time ACH.
  • PaySimple introduces an online store built specifically for service providers.

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.

Finovate Alumni News

On Finovate.com

  • CoverHound Launches Insurance for Small Businesses
  • Avalara Raises $96 Million in New Funding

Around the web

  • Dwolla to power same day ACH transfers with new API.
  • Let’s Talk Payments interviews Tommy Petrogiannis, eSignLive CEO.
  • WePay chooses Workflow Manager from Sphonic to help meet KYC and KYB requirements.
  • Kony Wins First Place Honors for 2016 CTIA Emerging Tech Awards.
  • Expensify launches Concierge, and AI virtual assistant.
  • Cachet Financial Solutions to Deploy Select Mobile Deposit Solution for Mobile-Only Bank Varo Money.

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.

Finovate Alumni News

On Finovate.com

  • Finovate Debuts: How the Kore Bots Deliver More than Your Average Chatbot
  • DriveWealth Expands APIs for Wealth Managers
  • Braintree, Finicity, and Twilio Take Top Honors at API World Awards

Around the web

  • BankBazaar wins “Emerging Brand of the Year” and “CEO of the Year” at seventh CMO Asia Awards.
  • Fintech News Switzerland highlights Currency Cloud and Zopa in a look at London’s top rising fintech stars.
  • Boku brings direct carrier billing to Windows 10 phones in the United Kingdom and Italy.
  • Markit enhances WSO software suite to offer new levels of automation for syndicated loan market.

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.

 

Dwolla Launches New Dashboard for White-Label Partners

Dwolla_homepage_August2016

Dwolla’s got a brand new Dash.

Designed to help companies to better manage customer and transaction data, Dwolla’s new dashboard and administrative interface will save its white-label partners time and money while providing actionable insights into business activity and trends. The company hinted at its plans for the new interface in July 2016 when Product Manager James Eliason said that with the “ever-increasing adoption of our white-label bank-transfer API, we understood the need to build a dashboard that accurately reflects the power of that product.” And he noted that partners “need a way to manage the customers they are onboarding, as well as a simple way to view the health of their business from a volume and transactional perspective.”

Dwolla_dashboard

The new dashboard makes it easier to view transactions, reconcile payments, deliver more specific customer support, and to monitor the overall payments integration. Charts and graphs of the data from their own integration with Dwolla’s white-label ACH API provide a clearer, more visually compelling view of each company’s KPIs and overall financial health. Dwolla partner GOAT says it reduced cashout-related support tickets by 80% after its integration with Dwolla’s technology.

Founded in 2008 and headquartered in Des Moines, Iowa, Dwolla demonstrated its FiSync technology at FinovateSpring 2015. In May, the company announced  it was adding banks to its instant account-verification flow, and in February, CoinDesk took a look at how Dwolla was turning its attention to the blockchain. The company was featured in Inc. magazine earlier this year in an article looking at Dwolla’s potential to “disrupt the payments industry.”

 

 

Finovate Alumni News

On Finovate.com

  • PayNearMe Powering Cash Payments for Comcast
  • Lendio by the Numbers: $250 Million in Loans to 10,000+ Small Businesses
  • Azimo Launches Money Transfers on Facebook Messenger
  • Dwolla Launches New Dashboard for White-Label Partners

Around the web

  • Trustly announces new partnership with Nordnet Bank to speed new customer onboarding.
  • Sberbank adds brokerage services to its online system.
  • Wealthfront upgrades its Android app, adding PIN and fingerprint lock and support for IRA contributions.
  • TipRanks launches new feature to allow users to Import their Online Brokerage Portfolio to TipRanks.
  • The International Swaps and Derivatives Association and Markit launch ISDA Amend 2.0.

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.

Finovate Alumni News

On Finovate.com

  • Experian and Neustar Partner to Empower Marketers with More Data
  • Financial Guard Acquired by Legg Mason

Around the web

  • FIS wins “Most Disruptive” award at 2016 PYMNTS.com/Alexa Challenge.
  • Corezoid’s Alexander Vityaz talks chatbots and the mobile OS market in Venture Beat.
  • iSignthis to provide automated, digital KYC solution for TRADOLOGIC.
  • Cachet Financial launches two new enhancements to its Select Business Merchant Capture Solution.
  • Dwolla hints at a new dashboard for white-label integrations.
  • Entrepreneur interviews Josh Reeves, Gusto co-founder and CEO.
  • Jwaala now powers mobile banking for Avadian CU.

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.

Finovate Alumni News

On Finovate.com

  • “Trulioo’s GlobalGateway Available in BRIC Countries”
  • “Kabbage Reaches $2 Billion in Loans in 5 Years”
  • “Coinbase to Support Ether; Rebrands Exchange Service as GDAX”
  • “MaxMyInterest Launches Client Invitation Feature”
  • “Finovate Debuts: Personetics Helps Banks Provide Personalized Guidance to Customers”

Around the web

  • OnDeck adds to credit offerings available to Canadian small businesses.
  • Thomson Reuters and Hong Kong Exchange and Clearing Ltd. to create new indices for the Chinese currency, the renminbi.
  • ACI Worldwide earns technical accreditation to provide access to real-time, faster payments in the U.K.
  • Markit unveils compliance solution to help meet new FRTB, market risk capital requirements.
  • Fiserv to integrate ADAPA from Zementis to enhance its Financial Crime Risk Management Platform.
  • TSYS launches Virtual Payment Precept to streamline B2B virtual payments and enhance the ePayables process flow.
  • Dwolla adds more banks to its instant account-verification flow.

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.

 

Finovate Alumni News

On Finovate.com

Around the web

  • Business Insider profiles the all-female management team of Betterment for Business.
  • The Des Moines Register reports on Dwolla and how its FiSync payments network could serve as a model for a nationwide effort.

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.

CFPB Sets Sights on Data-Security Practices

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Guest post by Erica A.N. Kramer and Justin B. Hosie*
________________________________

caution_signIt’s hard to imagine that the Consumer Financial Protection Bureau (CFPB), which is not tasked with enforcing information-safeguarding (Congress left that with the FTC), would impose civil fines on a company for safeguarding representations, when the company in question didn’t have a data breach.

It’s even harder to imagine such an action when the very same agency announced a policy to encourage consumer-friendly financial innovations just a few weeks before imposing the fines. However, we now live in an age when the CFPB seeks to encourage financial innovation one day and stifle it in the next, even when no consumer harm appears to exist.

What happened
Earlier this month, the CFPB announced a consent order in its “first data-security action.” The announcement sends a clear message that the CFPB now has its sights on data-security practices. This enforcement action clearly shows that the CFPB is once again stretching its authority by simply labeling a representation as deceptive and blurring the lines between federal agencies’ jurisdictions. Consequently, we’re likely to see a significant increase of regulatory scrutiny in the data-security arena in the upcoming months.

DwollaLogo2015The action targeted Dwolla, a Finovate alum operating a digital payment network that allows members to send and receive money. It has more than 650,000 members and transfers as much as $5 million per day. The CFPB alleged that Dwolla misrepresented its data-security practices by describing its network as “safe” and “secure” and its data-security practices as exceeding industry standards. While there appears to have been no consumer harm whatsoever, according to the CFPB’s unilateral assertions, Dwolla’s data-security practices did not live up to its claims and the representations constituted deceptive acts and practices. As a result, the CFPB imposed restrictions on Dwolla’s future conduct and ordered Dwolla to pay $100,000 into the CFPB Civil Penalty Fund.

Implications
Imposing civil penalties on innovative companies like Dwolla seems particularly heavy-handed when you consider the lack of evidence of consumer harm. Despite the extremely high volume of money and personal information moving through its network, Dwolla never experienced a data breach or received a consumer complaint regarding its data-security policies.

As Dwolla explained in its blog on March 2, “Dwolla was incorporating new ideas because we wanted to build a safer product, but at the time we may not have chosen the best language and comparisons to describe some of our capabilities.” Dwolla also explained that it is continually learning, growing, and adjusting its data-security practices to ensure members are provided with the security they expect. Unfortunately, the CFPB’s order demonstrates little tolerance for the growing pains and adjustments often accompanied by developing new technologies.

Recommendations
Given the CFPB’s none-too-subtle foreshadowing that more data-security-enforcement actions are on the horizon, we urge Fintech companies to consider several important factors:

  • Understate, don’t exaggerate: The CFPB has little tolerance for puffery when it comes to data security. Make sure your claims match your practices.
  • Act, don’t react: Address potential data-security vulnerabilities as soon as they come to your attention. Don’t wait for a problem to arise.
  • Evolve your practices and your claims: Make sure that your data-security practices are growing and changing in lockstep with your product’s development.
  • Follow the rules: Make compliance your top priority. Institute and follow a robust compliance management system that includes regular oversight and input by your company’s management and board.

Since there’s no way to avoid regulatory scrutiny, make sure your data-security practices are above reproach before the CFPB set its sights on your company.

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*Justin B. Hosie is a partner at Hudson Cook LLP, licensed to practice law in Florida and Tennessee. Erica A.N. Kramer is an associate at Hudson Cook LLP, licensed to practice law in Florida. You can contact Justin for more information at 423-490-7560 or jhosie@hudco.com.

 

Finovate Alumni News

On Finovate.com

  • “Pamela Joseph Tapped as New President, COO at TSYS
  • “Wells Fargo to Deploy Biometric Authentication Technology from EyeVerify

Around the web

  • PYMNTS reports: Worldpay transactions up 14% post-IPO.
  • Mitek launches mobile deposit in the United Kingdom with other countries to follow.
  • Dwolla’s Jordan Lampe contributes TechCrunch article about the state of faster payments in the United States.
  • Fiserv adds new features to its Unified Wealth Platform.
  • Jack Henry’s ProfitStars division unveils its ECS RDC conversion technology.
  • Betterment to extend account aggregation to all its customers.
  • BBVA Compass introduces Sandra Lee as brand ambassador to its BrightFutures platform.
  • Zooz reports that Gett, an on-demand taxi service, now routes global transactions through its platform.

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.