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Top 10 Fintech Acquisitions of Summer 2024 (So Far)

Top 10 Fintech Acquisitions of Summer 2024 (So Far)
By Julie Muhn (@julieschicktanz) Posted on
Categories: American Express, Envestnet, Flywire, List series, ThetaRay

The summer heat usually comes with a slowing of news activity, and while this is generally still holding true this summer, there have been some notable merger and acquisition activity throughout the past few months.

This season, the fintech landscape has had its fair share of strategic moves, as companies look to expand their capabilities, enter new markets, and expand on their offerings. These acquisitions are not just reshaping individual companies but they are also working to build out what the future of financial technology will look like.

As venture capital funding has dwindled over the past few years, the fintech sector has had to get creative in staying afloat. That may be one reason why we are seeing a growth in deal numbers. Let’s dive into the top 10 fintech acquisitions so far this summer.

Pluto acquired by Robinhood

Robinhood, a commission-free trading platform that aims to democratize finance acquired Pluto, a fintech startup focused on personalized financial planning and investment tools.

Deal Details: Financial terms were not disclosed. The deal is expected to close in Q3 2024.

Strategic Rationale: Pluto’s AI-driven tools will enhance Robinhood’s financial advisory capabilities.

Impact on Industry: The deal may encourage other trading platforms to improve their advisory services, increasing competition.

Future Outlook: Integrating Pluto’s technology will help Robinhood offer personalized financial advice, boosting user engagement and retention.

Theorem acquired by Pagaya

Pagaya, an AI-driven asset management firm that focuses on portfolio optimization through machine learning and big data acquired Theorem, a provider of financial analytics and modeling tools.

Deal Details: The specific financial terms of the deal remain confidential.

Strategic Rationale: Theorem will strengthen Pagaya’s AI and data analytics capabilities, resulting in robust investment strategies.

Impact on Industry: Pagaya’s purchase highlights the importance of AI in asset management, pushing competitors to innovate.

Future Outlook: Pagaya’s platform will demonstrate enhanced analytical power, offering more value to institutional clients.

Aion Bank acquired by UniCredit

UniCredit, a leading European commercial bank that offers a wide range of banking services, acquired Aion Bank, which is known for its digital banking services and innovative financial products.

Deal Details: Financial details of the deal were not disclosed.

Strategic Rationale: Aion Bank will help UniCredit expand its digital banking capabilities and customer base.

Impact on Industry: The deal will help to increase competition in digital banking, driving more customer-centric services.

Future Outlook: Integrating Aion Bank’s technology will enhance UniCredit’s digital offerings and expand its market reach.

Envestnet acquired by Bain Capital

Bain Capital, a private investment firm that focuses on private equity, venture capital, and credit, acquired Envestnet, a provider of integrated portfolio, practice management, and reporting solutions.

Deal Details: The deal is valued at approximately $4 billion.

Strategic Rationale: Envestnet’s long-standing expertise will help Bain Capital enhance its capabilities in financial technology and wealth management solutions.

Impact on Industry: The move will bring Envestnet into the private sector.

Future Outlook: Bain Capital’s acquisition may fuel demand for other private equity firms to buy out wealth management fintechs.

Salt Labs acquired by Chime

Chime, a digital bank known for providing fee-free banking services, acquired Salt Labs, an employee savings and rewards program.

Deal Details: Financial terms were not disclosed, but some sources report that the deal could close for as much as $173 million after Chime provides an up-front payment of $14 million.

Strategic Rationale: Salt Labs will enhance Chime’s offerings by integrating employee savings and rewards programs.

Impact on Industry: Integrating Salt Labs will help Chime promote financial wellness and engagement among employees, setting a new standard for digital banking services.

Future Outlook: The combination of Salt Labs with Chime Enterprise will expand Chime’s client base through employer channels.

Rooam acquired by American Express

Financial services giant American Express has acquired Rooam, a mobile payment and digital tipping platform for the hospitality industry.

Deal Details: Financial specifics were not disclosed.

Strategic Rationale: American Express is expected to expand its mobile payment capabilities in the hospitality sector.

Impact on Industry: The purchase will fuel demand for more innovation in mobile payment solutions that increase convenience for users and businesses.

Future Outlook: Integrating Rooam’s technology will improve American Express’s digital payment offerings and customer experience.

Funding Circle acquired by iBusiness Funding

Small business funding solutions provider iBusiness Funding acquired Funding Circle, a peer-to-peer lending marketplace focused on small business loans.

Deal Details: Financial terms were not disclosed.

Strategic Rationale: Funding Circle will expand iBusiness Funding’s lending capabilities and customer reach.

Impact on Industry: The move will help strengthen small business lending options, ultimately supporting economic growth and entrepreneurship.

Future Outlook: Integrating Funding Circle’s platform into iBusiness Funding will enhance iBusiness Funding’s lending solutions and expand its market reach.

Invoiced acquired by Flywire

Flywire, a global payments enablement and software company, acquired Invoiced, an accounts receivable automation platform.

Deal Details: Financial specifics were not disclosed.

Strategic Rationale: Invoiced is expected to enhance Flywire’s payment solutions by adding advanced accounts receivable automation.

Impact on Industry: The deal promotes efficiency in payment processing and receivables management solutions.

Future Outlook: Flywire will benefit from integrating Invoiced’s technology, which will offer comprehensive payment and receivables solutions and improving cash flow management.

Screena acquired by ThetaRay

ThetaRay, a provider of AI-powered transaction monitoring technology, has acquired Screena, a cybersecurity firm specializing in fraud detection and prevention.

Deal Details: Financial terms were not disclosed.

Strategic Rationale: The deal will strengthen ThetaRay’s fraud detection capabilities with Screena’s advanced cybersecurity technology.

Impact on Industry: The move enhances current fraud prevention measures, which will increase security in financial transactions.

Future Outlook: Integrating Screena’s technology will improve ThetaRay’s AI-driven fraud detection and prevention solutions.

LemonSqueezy acquired by Stripe

Financial infrastructure platform Stripe acquired LemonSqueezy, a platform for managing digital product sales and subscriptions.

Deal Details: Financial terms were not disclosed.

Strategic Rationale: LemonSqueezy will expand Stripe’s capabilities in digital product sales and subscription management.

Impact on Industry: The deal will promote innovation in digital commerce, providing businesses with more comprehensive tools.

Future Outlook: Stripe will enhance its existing offerings with LemonSqueezy’s capabilities, further supporting digital entrepreneurs.

Photo by Lisa Fotios

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Bain Capital to Acquire Envestnet for $4.5 Billion

Bain Capital to Acquire Envestnet for $4.5 Billion
By David Penn Posted on
Categories: Alumni News, Daily news, Envestnet, Mergers & Acquisitions
  • Wealthtech innovator Envestnet has agreed to be acquired by Bain Capital in a deal valued at $4.5 billion.
  • Also participating in the deal is Reverence Capital. Strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors also have agreed to invest in the transaction.
  • Envestnet has been a Finovate alum since 2016. The company most recently demoed its technology on the Finovate stage at FinovateFall 2021.

Technology, data, and wealth solutions company Envestnet has agreed to be acquired by Bain Capital. The transaction values Envestnet at $4.5 billion or $63.15 per share. Also participating in the deal is Reverence Capital, along with a number of strategic partners that have agreed to invest in the transaction. These partners include BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors, and each will hold a minority position in the company once the transaction is completed.

“This is a validation of Envestnet’s proven ability to operate at market-leading scale – serving more assets, accounts, and advisors and effectively connecting our company and our technology,” Envestnet EVP Business Lines Tom Sipp said. Calling the acquisition an “exciting new chapter,” Sipp highlighted the opportunities that lie ahead in Envestnet’s status as a private company rather than a public one. “As a private company, we can accelerate our ability to further elevate our market-leading platform with greater functionality and an even broader solution set that enables advisors to better serve clients at all stages of their financial life.”

A giant in the field of wealth management, Envestnet manages more than $6 trillion in assets, nearly 20 million accounts, and counts 109,000+ financial advisors as users of its technology. This includes more than 800 asset managers that use Envestnet’s Wealth Management Platform. Founded in 1999 and headquartered in Berwyn, Pennsylvania, the company works with 17 of the 20 largest banks in the U.S., and 48 of the 50 largest wealth management and brokerage firms. This year, Envestnet has forged partnerships with Salesforce, Australian wealthtech HeirWealth, insurtech Ladder, and fellow Finovate alum Ocrolus, which specializes in financial document automation and analysis.

Envestnet made its Finovate debut at FinovateEurope 2016. More recently, the company brought its data aggregation and analytics platform, Envestnet | Yodlee, to FinovateFall 2021 in New York. At the conference, the company showed how the platform leverages Conversational AI to deliver hyper-personalized financial insights and goals-based micro-savings applications.

Takeover talk had been circulating around Envestnet for months. A report in Bloomberg from late May indicated that the company was “drawing takeover interest from buyers including Advent International and GTCR.” The report also noted an uptick in private equity’s interest in the sector, crediting “reliable cash flows” that can be “scaled up through acquisition.”

“This is a great outcome for Envestnet’s clients and employees, and one that maintains its entrepreneurial spirit,” Envestnet Co-Founder Bill Crager said. “Envestnet is exceptionally well-positioned to continue to build a gateway to the future of financial advice. I couldn’t be more excited about the company going forward, its continued success, and ability to serve more advisors – enabling them to deliver more holistic financial advice.”

Photo by cottonbro studio

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Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News
By David Penn Posted on
Categories: Alkami Technology, Alumni News, Coinbase, Daily news, Envestnet, Fintech Rundown, VISA

We’re starting off the newsweek with a bang as Bain Capital announces that it will take wealthtech and Finovate alum Envestnet private in a deal valued at $4.5 billion. Be sure to check back all week long with the latest fintech news and headlines.

Crypto / DeFi / Web3

Payment orchestration platform FinMont partners with Bitcoin and cryptocurrency payment servics firm, BitPay.

Coinbase launches new web app to help users better manage their digital assets portfolio.

Blockchain payment network Partior secures $60 million in Series B funding.

Wirex and Visa announce an expanded partnership to promote Web3 payments.

Payments

Mangopay teams up with European marketplace ManoMano to bring new payment capabilities to marketplace merchants.

Allied Payment Network introduces new Chief Financial Officer Hank Vanjaria.

U.K. payments platform Payset partners with ClearBank to access the U.K. payment system for local and cross-border transactions.

BNPL company Affirm teams up with Canadian retailer RONA, enabling the store to offer flexible online payment options.

Singapore based fintech Qashier launches its payment linked loyalty program, Treats.

TerraPay partners with YeePay to enhance the customer experience.

Nala raises $40 million to build B2B payments platform, scale remittance services.

Stripe reaches $70 billion valuation.

Klarna considers Goldman Sachs, Morgan Stanley, and JPMorgan for lead banking positions for a potential 2025 IPO.

Payments processor Tapi lands $22 million.

Temenos teamed up with Visa to integrate Visa Direct with Temenos Payments Hub and make available to banks via Temenos Exchange.

Investing and wealth management

Apex Fintech Solutions launches its real-time, B2B investment infrastructure, Ascend for Fintechs.

Bain Capital to buy Envestnet for $4.5 billion.

InvestFi forges partnership with HiFin Technology.

Small business finance

America First Credit Union turns to Loquat to enhance onboarding for small business members.

J.P. Morgan Payments selects Slope to provide clients access to a short-term financing solution, leads the fintech’s new round of $252 million in combined debt and equity.

9Spokes launches automated cashflow tool to help financial organizations elevate financial insights for SMBs.

Digital banking

Digital wealth management solutions company Quantifeed forges partnership with banking technology firm Thought Machine.

Digital banking solutions provider Alkami receives certification by J.D. Power for its mobile banking platform.

Banco Santander introduces a new digital service for customers with hearing challenges that translates the bank’s website into British Sign Language (BSL).

Flybits integrates with Q2’s Digital Banking Platform.

Trexis launches suite of digital banking solutions.

Anne Boden quits Starling Bank to focus on AI.

Brightfin launches healthy spending app to remove anxiety around money.

Insurtech

Digital insurance firm Lemonade launches new home insurance offering in the U.K.

Insuritas partners with Integral Group Solution (IGS) to integrate home services product into its embedded insurance platform.

Lending

Mexican fintech OCN secures $86 million in Series A funding.

Open banking

Salt Edge launches the latest version of its Open Banking Gateway API, API V6.

Goldman Sachs’ alternatives unit is leading a consortium investing $540 million in a continuation vehicle created by VC firm NEA, which includes stakes in 11 of NEA’s companies, including Plaid.

Photo by Lukas

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Finovate Global Germany: Investing in Embedded Finance, Open Banking in Payments, N26 in France

Finovate Global Germany: Investing in Embedded Finance, Open Banking in Payments, N26 in France
By David Penn Posted on
Categories: Alumni News, BioCatch, Daily news, Envestnet, Finovate Global, Temenos, Yodlee

This week’s edition of Finovate Global features the latest fintech news from Germany, where investors are backing innovations in embedded finance, payments companies are taking advantage of open banking, and the green shoots of crypto spring are growing ever more apparent.

Solaris secures funding

Germany’s embedded finance platform Solaris secured $103 million (€96 million) in a Series F round this week. The investment was led by SBI, one of Solaris’ earliest investors, with other existing investors also participating. Solaris will use the additional capital, which takes the firm’s total funding to more than $486 million (€450 million), to onboard its ADAC (Allgemeiner Deutscher Automobil-Club) credit card program, strengthen its core capital, and invest further in its platform.

“This is a significant milestone for Solaris on our path to sustainable, profitable growth,” Solaris CEO Carsten Höltkemeyer said. “The funding underlines the high level of confidence our investors have in the transformation of our company.”

In addition to the investment, the Series F also included a financial guarantee of up to $108 million (€100 million) capital equivalent.

A pioneer in the banking-as-a-service business for nearly a decade, Solaris has grown into a major banking and technology provider with more than 750 employees at ten locations in both Europe and India. The company’s BaaS solution enables businesses to embed digital banking services – including payments, lending, and identity verification – directly into their platform. In addition to making it easier for companies to launch customized financial products and services, Solaris has secured the requisite licensing – including an e-money license for both the UK and EEA – to help companies navigate the regulatory complexities of doing business across the region.

Headquartered in Berlin, Solaris realized net revenues of $140 million (€130 million) in 2022. Last fall, the company issued a study – Disrupting the value chain for financial services – How to drive revenue growth with embedded finance – that highlighted “easier access to services” as a major driver of demand for embedded financial solutions.

Micropayment partners with Tink for Pay by Bank

Berlin-based payment processor Micropayment has turned to open banking platform Tink to add Pay by Bank to its payments offering. Live in Germany, Austria, and Switzerland, Micropayment’s Pay by Bank enables consumers to initiate payments directly from their bank account to the seller’s account when purchasing goods and services. A growing preference for both merchants and consumers, account-to-account (A2A) payments provide a secure and streamlined experience for customers and lower costs for merchants.

“The DACH region is a key market for us, and Tink’s dedication to serving merchants across various industries has been invaluable,” Micropayment CSO Thomas Knoth said. “Their payment method offers consumers the speed, reliability, and security they expect, making it a seamless experience for both merchants and consumers.” In a statement, Micropayment noted that it plans to take further advantage of Tink’s pan-Europe connectivity in the future.

Founded in 2005, Micropayment is a full-service payment provider that provides its customers with software implementation, payment processing, detailed analysis, and more. The company offers nine different payment options designed specifically for e-commerce and paid content services. Micropayment customers can integrate the technology via ready-made payment windows and preconfigured shop logins, as well as white-label APIs and interfaces.

“Collaboration with Micropayment has got off to an excellent start and we are gaining traction in a highly competitive landscape, by offering merchants a payment method that offers everything a consumer has come to expect – familiarity, speed, reliability, and convenience,” Tink DACH Payments Director Thomas Gmelch said.

A Finovate alum since its Best of Show winning debut in 2014 at FinovateEurope, Tink returned to the Finovate stage three years later to earn its second Best of Show award. Most recently, the Sweden-based company announced a partnership with German modern mobility sharing services provider Deutsche Bahn. The company will deploy Tink’s Account Check solution to enable instant, secure account onboarding.

Berlin’s N26 launches cryptocurrency product N26 Crypto

Crypto spring is alive and well in Europe as the region’s most prominent digital bank, N26, announced that its first cryptocurrency product, N26 Crypto, will be available to its customers in France. N26 began the year with the unveiling of its new Stock and ETF trading product – and the bank’s crypto solution already has been available in seven of N26’s 24 European markets. This week’s announcement adds French traders and investors to the ranks of those N26 customers who will be able to transact in nearly 200 cryptocurrencies on the N26 app.

N26 Crypto will be available to all eligible customers in France, or at least with a French or a German IBAN. All membership tiers will be able to access the technology, including customers using free accounts. There will be no additional charge for using N26 Crypto, which the bank says will offer the broadest range of cryptocurrencies for trading and investing compared to all other European banking apps.

“Last summer, we installed our local French Iban to be able to accelerate the deployment of the global banking offer that we want to provide to our approximately 3 million customers in France,” N26 General Manager France & Benelux, Jérémie Rosselli explained. “With this, customers can go beyond managing their money simply and intuitively on their smartphone to also invest within the N26 ecosystem,” Rosselli said.

The new offering is made possible via a partnership with Bitpanda GmbH, which manages the execution of trades as well as the custody of coins. With only €1 to get started, N26 Crypto users pay 1.5% in fees on Bitcoin and 2.5% on other cryptocurrencies. Users can upgrade to N26 Metal to take advantage of reduced transaction fees, as well as other perks.

Founded in 2013 by Valentin Stalf and Maximilian Tayenthal, N26 has eight million customers and operates in 24 different markets. The bank’s crypto product announcement follows a slew of recent headlines from the German bank. These include the launch of its Instant Savings solution in 13 new markets, and the appointment of Mayur Kamat as new Chief Product Officer.

Here is our look at fintech innovation around the world.

Central and Eastern Europe

  • German challenger bank N26 launched new cryptocurrency trading product N26 Crypto.
  • Flowpay, a Czech-based fintech that provides financing for small businesses, raised $2.3 million (€2.1 million) in seed funding.
  • German embedded finance platform Solaris raised $103 million (€96 million) in a Series F round led by SBI Group.

Middle East and Northern Africa

  • Israel-based BioCatch and Google Cloud partner to bring fraud prevention solutions to expanding markets.
  • UAE-based Tungsten secured a license from the FSRA to operate at the Abu Dhabi Global Market (ADGM).
  • Bahrain’s Eazy Financial Services joined forces with Tabby to provide BNPL services via its EazyPay POS terminals network.

Central and Southern Asia

  • Business Recorder’s Syed Yousuf Raza looked at how Pakistan’s banking and fintech industry is dealing with evolving fraud threats.
  • The Indian government signed a $23 million loan agreement with the Asian Development Bank (ADB) to enhance access to fintech education, research, and innovation at the Gujarat International Finance Tec-City.
  • FinTech Alliance Nepal joined the Asia FinTech Alliance.

Latin America and the Caribbean

  • Colombian fintech Addi secured $86 million in a combination of equity and debt financing.
  • Uruguayan digital payments firm dLocal anticipates record total payment volumes in 2024.
  • Nubank Brazil CEO Livia Chanes talked with Bloomberg News about the state of fintech in Latin America.

Asia-Pacific

  • Singapore-based cross-border payments company Thunes expanded its strategic partnership with Visa.
  • Australia’s HeirWealth integrated with Envestnet | Yodlee to bring open banking data sharing to its wealth register for high net-worth families.
  • HSBC and the Hong Kong Science and Technology Parks startup hub announced the first “public-private cooperation between the city’s largest innovation and technology ecosystem and leading global bank.”

Sub-Saharan Africa

  • Ethiopia’s Cooperative Bank of Oromia partnered with Temenos to launch its CoopApp and CoopApp Aluhuda for both conventional and Islamic digital banking experiences.
  • dLocal teamed up with Ebury to bring African customers optimized payment solutions.
  • Safaricom, a telecom based in Kenya, partnered with Onafriq to offer remittance services to Ethiopia.

Photo by Kai Pilger

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Envestnet | Yodlee Taps Ocrolus for Financial Document Automation

Envestnet | Yodlee Taps Ocrolus for Financial Document Automation
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Alumni profile, Envestnet, Ocrolus, Yodlee

Document automation platform Ocrolus announced it has teamed up with financial data aggregation and account verification expert Envestnet | Yodlee this week.

Under the agreement, Envestnet | Yodlee will leverage Ocrolus’ technology to enhance digital document capabilities for its clients. Specifically, Envestnet | Yodlee’s 47 million customers will be able to improve their user experiences by offering their end-users the option to either submit documents or digitally connect bank accounts. Customers will also be able to automate the extraction of financial data from the documents that the end consumer uploads.

“While the financial services industry has undergone significant digital transformation, documents are still a critical source of data,” said Ocrolus Co-founder and CEO Sam Bobley. “We are thrilled to partner with Envestnet | Yodlee to provide a more comprehensive and smoother customer experience across a variety of financial services use cases.”

New York-based Ocrolus leverages AI to capture and analyze data from 1,000 different types of documents and digital forms and boasts an accuracy rate of more than 99%. The company counts more than 400 clients, including Enova, PayPal, Brex, CrossCountry Mortgage, Plaid, and SoFi, who use the solution to detect fraud, analyze cash flows and income, and streamline decisions.

With these capabilities Envestnet | Yodlee anticipates its clients will benefit from more efficient and confident decision-making. “With added document automation capabilities, Envestnet | Yodlee will improve and streamline the onboarding process for credit and lending use cases,” explained company Chief Operating Officer Arun Anur.

Envestnet | Yodlee’s client list includes more than 1,300 financial services and fintech companies, including 17 of the top 20 U.S. banks. The company was founded in 1999 as Yodlee, and changed its name to Envestnet | Yodlee after Envestnet acquired Yodlee for $660 million.

In a digital world, sharing documents can be a huge headache. However, automation platforms such as Ocrolus, this process has become much smoother. Today’s collaboration between Envestnet | Yodlee and Ocrolus marks a significant step forward in enhancing the customer experience.

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Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News
By David Penn Posted on
Categories: Alumni News, Daily news, Envestnet, Fintech Rundown, FIS, Marqeta, Moneyhub, MX, Plaid, Weekly Alumni News, Zafin

We’re already well into the second month of 2024, and while funding has slowed down a bit, news in the decentralized finance world has picked up. Take a look at some of the top headlines in fintech and banking this week.

Digital Banking

Israel-based digital bank oneZero unveils its new GenAI-powered assistant, Ella.

HighRadius acquires Cforia.

Payments

Tuition payments solution for trade and technical school students Mia Share raises $6.5 million in funding.

Fiserv expands in-person bill payment network to NCR Atleos ATMs.

Airbase appoints Mathew Schulz from Forrester as its new Vice President of Procurement Strategy. 

Blackhawk Network launches Select Codes to allow quick distribution of rewards.

NMI launches NMI Payments, a comprehensive embedded payments solution.

Tradeshift appoints Iain Balchin as Chief Financial Officer.

i2c Inc. adds new clients in Brazil, Dominican Republic, Mexico, Peru, and Puerto Rico.

Banking-as-a-Service

Nordic Capital inks agreement to acquire majority stake in SaaS core modernization provider Zafin.

Crypto

Crypto wallet app COCA introduces virtual cards.

Cryptocurrency exchange OKX expands to Argentina.

Crypto custodian BitGo acquires private securities and alternative investment infrastructure provider Brassica.

Open banking / Open finance

Moneyhub named supplier of Crown Commercial Service’s (CCS) Open Banking Dynamic Purchasing System framework for the U.K. government.

Akoya, Envestnet | Yodlee, MX, and Plaid to integrate into FIS’ Open Access platform.

FIS and Banked partner to create new pay-by-bank solutions.

Wealth management & Investing

Swedish investment platform Kameo secures $1.3 million (£1.1million) investment from Incore Invest.

Attune Solutions launches Attune WealthData powered by BridgeFT.

Clearwater Analytics launches Clearwater MLx, mortgage loan investment solution.

Blue Ocean Technologies and DriveWealth partner to expand geographic reach and trading services.

Exponential Markets receives strategic investment from Citi.

Card Issuance/Management

Card issuing platform Marqeta inks travel management software company, Internet Travel Solutions (ITS).

ConnexPay launches ConnexPay Flex, a new variable-rate virtual card.

Mastercard and the Bank of Punjab expand their partnership to cover the commercial segment.

Lending

Yardline and AMZ Pathfinder partner on ecommerce funding.

Traditional finance

Barclays to acquire Tesco Bank’s retail banking business.

AtlasClear combines with SPAC and acquires Wilson-Davis & Co.

NCR Atleos to bring surcharge-free cash access to American Express checking customers.

Clearwater Analytics extends support for accounting with fund accounting and pooled participant interaction.

Fraud & security

Signzy launches one-touch KYC for seamless digital onboarding.

TruShield Insurance collaborates with Visa to help address cybersecurity risks facing small businesses.

Tina Stewart joins Utimaco as Chief Marketing Officer.

Data Zoo names former London Stock Exchange Group executive Charlie Minutella as new CEO.

Canada’s EQ Bank partners with Trulioo for identity document and biometric verification.

Armilla AI lands $4.5 million in Seed funding to help de-risk AI adoption for enterprises.

Mortgagetech

Better launches digital VA loans powered by Tinman.

Photo by AbsolutVision on Unsplash

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Experian Teams Up with Envestnet | Yodlee to Bring the Benefits of Open Data to Lenders

Experian Teams Up with Envestnet | Yodlee to Bring the Benefits of Open Data to Lenders
By David Penn Posted on
Categories: Alumni News, Envestnet, Experian, Yodlee
  • Experian announced a partnership with Envestnet | Yodlee to help lenders in Australia take advantage of open data.
  • The collaboration will help Experian manifest its open data strategy in the country following its application to be an Accredited Data Recipient.
  • Both Experian and Envestnet | Yodlee have been Finovate alums since 2012 and 2016, respectively.

Information services company Experian has picked a partner as its official Open Data API provider in Australia. The company is teaming up with data aggregation and analytics platform Envestnet | Yodlee in an alliance that will allow Experian to access data under the Consumer Data Right (CDR) from data holders including Australia’s Big Four banks and more than 70 Australian FIs.

“Open Data solutions have the capability to solve two of the biggest challenges for Australian lenders: the accuracy of data to support responsible lending and streamlining the customer experience to get a faster decision,” General Manager of Experian Digital Simone Jemmett explained. “The more consumers that opt in to share data through Open Banking, the faster it will deliver the value it has in more mature data markets spurring innovation and greater competition among lenders,” Jemmett said.

The partnership news comes in the wake of Experian’s application to the Australian Competition ad Consumer Commission (ACCC) to become an Accredited Data Recipient under the CDR back in December. This is key step in becoming a part of Australia’s open banking ecosystem, and enabling Experian to focus on delivering fast and accurate affordability assessments. By leveraging Envestnet | Yodlee’s APIs, Experian will be able to help lenders shift to an emphasis on using Open Data sources rather than the traditional credit application process that requires manual uploads and data entry, as well as other inefficient practices.

“Lending is a valuable use case for Open Data with tangible benefits for lenders and borrowers,” Envestnet | Yodlee A/NZ Country Manager Tim Poskitt said. “With Experian coming into the CDR ecosystem, Australian Open Banking is reaching a tipping point and we’re ready for adoption to accelerate in 2023.”

A Finovate alum for more than a decade, Experian made its most recent appearance on the Finovate stage at FinovateFall in 2018. More recently, the company has partnered with fellow Finovate alum Zopa, which integrated Experian Boost into its credit-decisioning process. Experian began the year teaming up with decentralized and secured lending portfolio provider Credefi, and launching a new solution called CreditLock. This new feature enables customers to lock their Experian Credit Report to defend themselves against fraud and identity theft. “Our goal is to create products that help improve people’s financial wellbeing and give them more control over their finances,” Experian Head of Product Management Jayne Sankoh-Beacom said. “With this new feature we can now give our customers that extra layer of protection against identity fraud.”

Making its most recent Finovate appearance at FinovateFall 2021, Envestnet | Yodlee finished 2022 with news of a “deeper integration” between its Redi2 BillFin client billing solution and Schwab Advisor Services. This deeper integration gives advisors on Schwab’s platform who are using BillFin to access capabilities such as flexible billing setup and standardized templates, as well as reminders and alerts. “This deeper level of integration will allow even more data to seamlessly flow back and forth between the BillFin and Schwab platforms,” Envestnet Head of Billing Technology Fermin Garcia explained.

Photo by Catarina Sousa

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Envestnet Goes Live with its Wealth Data Platform Powered by Snowflake

Envestnet Goes Live with its Wealth Data Platform Powered by Snowflake
By David Penn Posted on
Categories: Alumni News, Daily news, Envestnet
  • Envestnet launched its Wealth Data Platform this week.
  • Powered by Snowflake, Envestnet’s enhanced platform gives financial advisors a more comprehensive view of clients’ finances
  • Envestnet made its Finovate debut in 2016 at FinovateEurope, one year after acquiring Yodlee for $660 million.

With the launch of its Wealth Data Platform this week, Envestnet has enhanced its data and analytics business by providing financial advisors with the ability to connect and enrich data – as well as give clients actionable data at scale – via a single platform. The new offering is powered by data cloud company Snowflake, and will enable Envestnet customers to benefit from a more holistic, comprehensive view of their clients’ financial information.

“Our Wealth Data Platform solves the very real challenge wealth advisors face in connecting, analyzing, and deriving insights from their clients’ various data sources,” Envestnet Data and Analytics Group President Farouk Ferchichi said. “And we know this is important for clients; our research shows that for a majority of Americans, financial technology and apps are key to achieving their financial goals.”

“By partnering with Snowflake, our Wealth Data Platform will become more holistic and allow advisors to better serve their clients,” Ferchichi said.

Envestnet’s enhanced solution improves data access and efficiency, enabling research and analytics teams to access multiple capabilities such as valuation, client aggregations, advisor analytics, and more on one platform. Customers will be able to leverage outside data, as well, combining, normalizing, and enriching that data along with other data sets available on the Envestnet platform. By partnering with Snowflake, the platform “will help transform the way wealth professionals advise and interact with their customers,” according to Snowflake Global Head of Financial Services Rinesh Patel.

Envestnet’s Wealth Data Platform adds to the company’s suite of data, digital solutions, and differentiated experiences known as Envestnet Data and Analytics. Through both APIs and standalone portals, Envestnet’s solutions help its clients – which include financial advisors as well as small and medium-sized businesses and their customers – better grow and manage the financial wellness of their businesses.

Founded in 1999 and headquartered in Chicago, Illinois, Envestnet made its Finovate debut eight years ago at FinovateEurope in London – just one year after the company acquired Finovate alum Yodlee for $660 million. In the years since, Envestnet has provided technology and services to more than 105,000 advisors and more than 6,500 companies. This figure includes 16 of the 20 largest banks in the U.S., 47 of the 50 largest wealth management and brokerage firms, more than 500 of the largest registered investment advisors (RIAs) – as well as hundreds of fintechs.

In addition to the launch of its Wealth Data Platform, Envestnet also recently announced a partnership between Tata Consultancy Services (TCS) and its Data and Analytics business. The agreement calls for TCS to help Envestnet Data and Analytics scale internationally. Earlier this month, Envestnet unveiled its Intelligent Financial Life Advisor Practice Score, which helps financial advisors learn how effectively they are helping clients “achieve peace of mind and financial security” while on the journey to reach their financial goals.

“Our mission has always been to help advisors make sense of their clients’ overall financial picture and empower them to take the advice they give – and their practice – to the next level,” Envestnet Chief Marketing Officer Mary Ellen Dugan said. “This assessment provides advisors with a way to understand how well they’re positioned to help clients navigate their complex financial lives – through their day-to-day and more long-term financial decisions.”

Photo by Jill Wellington

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Envestnet to Acquire Redi2 Technologies to Boost Billing & Accounting

Envestnet to Acquire Redi2 Technologies to Boost Billing & Accounting
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Envestnet, Mergers & Acquisitions
  • Envestnet acquired revenue management and hosted fee-billing solutions company Redi2 Technologies.
  • Envestnet will use the buy to modernize its billing, accounting, and back office capabilities.
  • Terms of the deal were not disclosed.

Financial wellness technology firm Envestnet announced its 16th acquisition today. The Chicago-based company announced it has purchased revenue management and hosted fee-billing solutions company Redi2 Technologies. Terms of the deal were not disclosed.

Founded in 2002 and headquartered in Massachusetts, Redi2 offers a revenue management platform tailored to financial services companies. The tool offers fee calculation, invoice creation, payouts and accounting, and billing compliance. Among Redi2’s products are Revenue Manager, which provides client revenue accounting and billing services for asset managers; Wealth Manager, which delivers multi-party billing and payouts for broker-dealers and asset managers; and BillFin, which offers advisory billing and invoicing for financial advisors.

Envestnet will use Redi2’s technology to modernize its billing, accounting, and back office capabilities. The company anticipates the additional expertise will drive client engagement and ultimately boost revenue.

“Redi2 is a pioneer and innovator in the cloud-based delivery of wealth and investment management billing software, making them an ideal partner as we continue to strengthen our financial wellness ecosystem,” said Envestnet Executive Vice President of Business Lines Tom Sipp. “This acquisition enhances our strategic enablement of service and data, and over the next two years will create operating leverage by bringing Envestnet and Redi2’s administrative, revenue, and billing services together.”

Envestnet was founded in 1999. The company’s most noteworthy acquisition was its purchase of Yodlee in 2015. The Yodlee acquisition broadened Envestnet’s wealthtech offerings, launching it into the world of open finance. Envestnet is a publicly-traded company on the New York Stock Exchange under the ticker ENV and has a market capitalization of $4.66 billion.

Photo by Nataliya Vaitkevich

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Secure Document Exchange Platform FutureVault Teams up with Envestnet | Yodlee

Secure Document Exchange Platform FutureVault Teams up with Envestnet | Yodlee
By David Penn Posted on
Categories: Alumni News, Daily news, Envestnet, FutureVault, Yodlee
  • Secure document exchange and digital vault platform FutureVault announced a partnership with Envestnet | Yodlee.
  • FutureVault made its Finovate debut in 2016 at FinovateFall in New York.
  • FutureVault CEO Daniel Kenny took the helm of the Toronto, Ontario, Canada-based company in January.

Last week we announced that Envestnet | Yodlee had partnered with fellow Finovate alum Backbase to bring new data aggregation, account verification, and enriched transaction data insights to banks. This week we report that Envestnet | Yodlee has forged a collaboration with another Finovate alum, FutureVault.

The partnership will enable FutureVault to leverage Envestnet | Yodlee’s data aggregation and analytics platform to enhance its ability to serve its financial services and advisor clients with advanced document exchange solutions. FutureVault’s platform supports front, middle, and back-office teams with the tools they need to securely access, share, and manage sensitive information and documents. These tools give organizations the ability to aggregate and centralized financial documents and data from multiple institutions into FutureVault’s secure digital vault, provides financial planning professionals with a holistic view of client finances, and enables trusted advisors to build better relationships with their customers.

“The integration with Envestment | Yodlee is another milestone in our aggressive 2022 technology roadmap,” FutureVault CEO Daniel Kenny said. “This integration is driven by our plan to continue building the most comprehensive digital vault solution and will contribute toward our strategic platform vision that brings together Documents, Data, and Digital Assets.”

FutureVault put the partnership in the context of the company’s Personal Life Management initiative. This thesis is based on aggregating financial documents and data in a secure location while giving financial planners and advisors the ability to leverage FutureVault’s technology to provide a “family office” type of service.

“This integration with Envestnet | Yodlee is not only driven by improving the relationship advisors will have with their clients,” FutureVault co-founder and Executive Chairman G. Scott Paterson said. “It is about ultimately providing clients with access to the best tools to manage their financial lives that extend beyond the advisor.”

FutureVault made its Finovate debut at FinovateFall 2016 in New York. Recently, the company has partnered with companies like PureFacts to facilitate secure and automatic delivery of financial statements, and with enterprise wealth management platform d1g1t. With this collaboration, FutureVault’s secure document exchange technology will help the d1g1t better manage its compliance, document retention, and document sharing responsibilities.

“We know that there is a significant need across the industry for all-encompassing solutions,” Kenny said when the strategic partnership with d1g1t was announced in late March. “By partnering with the exceptional team at d1g1t, we can bring that type of integrated solution to the market that addresses the many workflow challenges firms and advisors face, while elevating the experience for both clients and advisors.”

Founded in 2014, FutureVault has raised $2.3 million in funding. Current CEO Daniel Kenny was appointed to the position in January of this year after serving briefly as the company’s Chief Operating Officer. Previously, Kenny was an executive at HSBC for more than 22 years.

Photo by Tara Winstead

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Backbase and Envestnet | Yodlee Partner to Bring Data Aggregation, Account Verification, and Enriched Transaction Data to Banks

Backbase and Envestnet | Yodlee Partner to Bring Data Aggregation, Account Verification, and Enriched Transaction Data to Banks
By David Penn Posted on
Categories: Alumni News, Backbase, Envestnet, Yodlee
  • Two Finovate alums, Backbase and Envestnet | Yodlee are teaming up to help financial institutions better serve their customers.
  • The collaboration will offer pre-built integrations with Envestnet | Yodlee’s Data Aggregation, Account Verification, and Transaction Data Enrichment solutions.
  • Both Backbase and Envestnet | Yodlee made their most recent Finovate appearances at FinovateFall in New York in September.

A newly announced partnership between Backbase and Envestnet | Yodlee will enable financial institutions to offer their customers a holistic view of their finances, as well as an improved customer experience. Specifically, the partnership will bring account data aggregation, account verification, and transaction data enrichment from Envestnet | Yodlee to the Backbase Engagement Banking platform. The move enhances Backbase’s financial wellness capabilities and intuitive customer journeys, and supports the company’s goal of becoming a category leader in the engagement banking platform space.

Backbase CPO Karan Oberoi called the collaboration a “major milestone” in the company’s efforts to “bring value to every step of the full customer lifecycle on a single, unified platform.” Oberoi highlighted the ability of the Backbase Engagement Banking platform to help financial institutions leverage technologies from innovative fintechs like Envestnet | Yodlee “while limiting implementation, procurement, and risk assessment time.”

Adding Account Data Aggregation to the platform will enable customers to combine and maintain all of their financial accounts in a single application. In addition to making it easier for customers to better understand their financial status, the feature also increases stickiness – as well as the potential for cross-selling opportunities – as customers spend more time on the bank’s app. Account Verification allows customers to add and verify their financial accounts in a single app without requiring the use of micro-deposits. Both KYC and AML compliance are also enhanced by the addition of the account verification capability. Lastly, by providing transaction data enrichment, the platform will lower the cost- of-serve for financial institutions and improve customer engagement.

“Entering into this strategic partnership with Backbase is another proof point on how industry leaders are relying on quality data, comprehensive coverage, and intelligent insights from Envestnet | Yodlee to meet fast-growing banking demands,” Envestnet Data and Analytics Group Head Farouk Ferchichi said.

Both multiple-time Finovate Best of Show winners, Backbase and Envestnet | Yodlee made their most recent appearances on the Finovate stage at FinovateFall in New York last September. Backbase demoed a customer onboarding solution that consolidates customer finances via direct deposit, billpay auto linking, and debit card account opening. Envestnet | Yodlee showed how Conversational AI technology can be deployed to deliver hyper-personalized financial insights and goals-based micro-savings applications.

Photo by Essow

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Envestnet Makes Strategic Investment in YieldX

Envestnet Makes Strategic Investment in YieldX
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Envestnet, Funding

Investment solutions provider Envestnet announced it has made a strategic investment in fixed income investing platform YieldX this week. Illinois-based Envestnet was the lead investor in YieldX’s most recent, Series A funding round.

The round, which totaled $18 million, brings YieldX’s total funding to $36 million. YieldX will use the money to scale its quant, engineering, and analytics teams and to expand its API suite. Specifically, YieldX aims to further personalize its offerings, add new data and integrations, expand existing ESG customization, and execute its go-to-market strategy.

Through the newly formed partnership, Envestnet will distribute YieldX’s products to its nearly 108,000 advisors and 6,000+ enterprise customers. The tie-up will help Envestnet clients offer their end consumers better fixed-income investment outcomes.

“We are fully vested in enhancing our ecosystem to intelligently connect financial lives, and we believe income and protection solutions are critical to helping make financial wellness a reality,” said Envestnet Chief Strategy Officer Rich Aneser. “Through our strategic partnership with YieldX, and investing to expand its capabilities, we are able to bring more income related solutions to market for helping advisors meet a critical client need.”

Founded in 2019, YieldX offers tools for fintechs, wealth managers, broker dealers, and asset managers. Company Cofounder and CEO Adam Green called the partnership a “powerful way to level the fixed income playing field for Envestnet’s broad network of advisors and end investors with solutions that simplify the traditional complexities of sourcing and trading fixed income assets.”

Envestnet was founded in 1999 and has since made 13 acquisitions, including its most notorious buy, Yodlee, in 2015. The company’s purchase of data aggregation firm Yodlee broadened its offerings from advisor technology and launched it into the world of open finance. Envestnet is a publicly-traded company on the New York Stock Exchange under the ticker ENV and has a market capitalization of $4.66 billion.

Photo by Allef Vinicius on Unsplash

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