Financeit’s Fresh $17 Million to Fund TD Financing Acquisition

screen-shot-2016-10-06-at-8-26-08-am

Today, Financeit pulled in a $17 million venture funding round that was led by new investors Pritzker family business interests advised by The Pritzker Organization and DNS Capital. Existing investors also contributed. The new installment boosts the Canada-based company’s total funding to more than $38 million since it was established in 2011.

This comes less than a month after Financeit announced the acquisition of TD Bank Group’s indirect home improvement financing assets. Today’s installment will be used to fund the $339 million transaction, which included the purchase of more than 800 merchant dealer agreements. Once things have settled from the deal, Financeit will be servicing 45,000 existing TD consumer loans.

The secondary purpose of today’s round will be to “support the ongoing needs of the company as it continues its rapid growth.” In a press release, Michael Garrity, founder and CEO of Financeit, said, “As more merchants embrace the benefits of offering cloud and mobile-based financing options to their customers, Financeit expects to increase its sizable signature in this market. We continue to focus on innovation for our merchant partners and market growth through both organic tactics and acquisition.” The company has already increased its lending activity in the home improvement industry by almost 2X since 2015.

Last month, Financeit made headlines when it recruited Ian Hanning, the CFO from Capital One Canada. Earlier this fall the company debuted its direct-to-consumer financing platform, Financeit Direct, which enables consumers to apply for funds via their mobile device. At FinovateFall 2014, Financeit made its U.S. debut in conjunction with FIS.

Finovate Alumni News

On Finovate.com

  • A Deep Dive into the Upcoming FinDEVr Silicon Valley 2016

Around the web

  • Idaho Central CU to deploy Alkami ORB platform.
  • Thomson Reuters unveils blockchain dev platform, BlockOne ID.
  • Banking Technology looks at Misys and its plans for a November IPO.
  • Revolut partners with Bank of Lithuania to promote cross-border payments.
  • Hyperwallet introduces its Tax Compliance Services initiative.
  • Cloud Lending Solutions appoints new chief revenue officer and chief financial officer.
  • Yandex.Money to offer mobile money-transfers and support-group chats for crowdfunding via Apple’s iMessage.

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.

Financeit Recruits CFO from Capital One Canada

screen-shot-2016-09-27-at-10-38-04-am

Point-of-sale customer financing solution Financeit expanded its team this week. The Toronto-based company brought on Ian Hanning from Capital One Canada as its new chief financial officer.

Hanning comes to Financeit after having served for five years as Capital One Canada’s CFO; he has 20 years of experience in managing finance teams across the United Kingdom and Canada. Prior to taking the CFO position at Capital One Canada, Hanning held various senior leadership positions within the bank. In a press release Michael Garrity, founder and CEO of Financeit, said that Hanning “will be a great asset to our company as we expand our loan portfolio and grow our business.”

This news comes weeks after Financeit’s acquisition of TD Bank’s indirect home-improvement financing assets, in conjunction with wholesale finance and trust solution provider, Concentra. Through the partnership, 800 merchant dealers will transition to Financeit.

At FinovateFall 2014 Financeit launched in the U.S. in partnership with FIS. Since its founding in 2011, Financeit has received more than $1.5 billion in loan applications from 5,400+ merchant partners. In August 2016, Financeit introduced Financeit Direct, a direct-to-consumer financing platform that allows customers to complete loan applications on their mobile devices. In fall 2015, the company closed on an undisclosed amount of funding from Goldman Sachs, bringing its funding to more than $22 million. Financeit planned to use the funding to add to its merchant partner base, which at the time was at 4,000.

Finovate Alumni News

On Finovate.com

  • Financeit Recruits CFO from Capital One Canada
  • Wave Mechanics: FT Partners Report Highlights Trends Driving Rise of Insurtech

Around the web

  • Fiserv inks deal with FCTI to provide transaction processing for 8,000 ATMs in 7-Eleven convenience stores in U.S. Video of Fiserv’s recent live demo from FinovateFall is now available.
  • NCR launches cloud-based developer portal.
  • ACI Worldwide and Vocalink partner to provide real-time payments solution.
  • Let’s Talk Payments interviews Tom Burgess, Linkable Networks founder and CEO.
  • Visions FCU signs with MX for money-management app.
  • Zopa releases its first-ever rating of a batch of securitized Zopa loans.
  • Sezzle Wins $10,000 from Securian in Minnesota Cup Startup Competition.
  • Aurionpro joins Temenos MarketPlace.
  • OnDeck launches marketing campaign featuring Shark Tank judge Barbara Corcoran.
  • RightCapital launches Leads, a tool to help financial advisers turn leads into clients.

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.

Fintech Favorites

Featured

Banks

  • TD Bank began rolling out its Flybits (F15) powered digital concierge TD for Me (press release). Check out its FinovateSpring ’16 demo. A first in Canadian banking, TD for Me enhances the popular TD app to include a “digital concierge” feature that curates content and services to create personalized, contextual experiences for customers based on their location and interests. Powered by Canadian start-up Flybits‘ secure cloud-based mobile intelligence product, TD for Me provides customers with useful TD-related content, like special nearby offers, helpful tips and details on local events, with more content and capabilities to be added in future updates.

Deals

  • In more TD Bank news, Financeit (F12) teamed with Concentra to purchase TD Bank’s indirect home-financing dealer-network and 45,000-loan portfolio for C$340 million. It’s a huge win for Financeit which assumes originations for 800 dealers previously working through TD Bank (check out its demo at FinovateFall).
  • Standard Chartered, Siam Commercial Bank and Banco Santander participated in Ripple’s (F13) $55 million Series B round announced today. In addition to those three, five more banks signed long-term contracts to integrate Ripple into their own banking platforms: Westpac, National Australia Bank, Mizuho Financial Group, MBO Financial Group, and Shanghai Huarui Bank

Tech

  • Mitek (F11) released an SDK for mobile check-capture to make it easier for third-party developers to deploy (press release). Check out their latest Finovate demo last May. Our new SDK is a self-contained set of screens, workflows, and APIs that comprise a complete multi-check capture experience allowing developers to quickly deploy their commercial mobile banking app offerings,” said Michael Diamond, general manager, payments solutions, Mitek. “Previously, our partners and banks were on their own to develop the app-level functionality around our core MiSnap multi-check capture engine. With this SDK, we’ve done the heavy lifting for them.
  • Yandex (F13) introduces AI capabilities to browser to warn users when it’s unsafe to bank or pay online
  • Technologists! Don’t miss the upcoming FinDEVr in Santa Clara, October 18-19 (register now)

Finovate Alumni News

On Finovate.com

  • Blackhawk Network Acquires Grass Roots for $118 Million
  • FutureAdvisor Brings RoboAdvisory to U.S. Bank Wealth Management

Around the web

  • Avoka reports record levels of orders for fiscal 2016. Join Avoka in New York for FinovateFall 2016 next week.
  • Financeit earns spot on the TechVibes’ Fintech Five.
  • Chain CEO Adam Ludwin warns against “blockchain hype” on Fortune.com.
  • Narrative Science teams up with Franklin Templeton Investments to bring Quill technology to their fund commentary process.
  • SmartyPig switches to Sallie Mae Bank to enable partial withdrawals, direct deposit, and to offer a higher interest rate.

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.

Financeit Launches Direct-to-Consumer Financing Platform, Financeit Direct

FinanceIt_homepage_August2016

Financeit Direct is a new, direct-to-consumer financing platform from Financeit that transforms traditional point-of-sale financing into a mobile-enabled, paperless process that works for small- and medium-sized business.

“Throughout beta testing, merchants described Financeit Direct as a revolutionary tool that can be customized for their work schedules and routines,” Financeit founder and CEO Michael Garrity said. “Consumers love the quick and easy application process and the added privacy and security, along with Financeit’s competitive interest rates.”

Financeit_stage_FF2013

(Left to right): COO Casper Wong, CTO Paul Sehr, and CEO and founder Michael Garrity demonstrated Financeit at FinovateFall 2014.

Financeit Direct allows customers to use their mobile devices to complete financing applications by uploading documentation such as a voided check or a pay stub. Customers can review rates and get instant credit decisions via their mobile device as well. Calling Financeit Direct “the first point-of-sale financing platform to take full advantage of the mobile revolution,” Financeit CTO Paul Sehr said the technology was already seeing “huge traction” among beta testers, most of whom have begun to use the platform for financing “big-ticket purchases.”

Founded in 2011, Financeit announced the launch of its U.S.-compliant platform at FinovateFall 2014 and demonstrated the technology in partnership with fellow Finovate alum, FIS. The company has processed more than $1.5 billion in loans from more than 5,000 merchant partners since inception. Financeit is headquartered in Toronto, Ontario, Canada, and has raised more than $21 million in funding. In June, it announced an agreement with ClearFlow for a $30 million credit facility. The company’s COO, Casper Wong, was featured in Notable this spring.

Finovate Alumni News

On Finovate.com

  • Financeit Launches Direct-to-Consumer Financing Platform, Financeit Direct
  • Meet The ID Co.: miiCard Rebrands as DirectID Spurs Growth
  • Nous Launches New Trading App TIQL for a Safer Way to Trade
  • Check out this week’s FinDEVr APIntelligence

Around the web

  • Uber partners with Betterment to offer drivers flexible retirement accounts that will be fee-free for a year.
  • CU Broadcast features NopSec CTO Michelangelo Sidagni.
  • True Potential teams up with UBS Asset Management to launch five, new multi-asset funds.

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

  • “Personal Capital Exceeds $2 Billion AUM”
  • “WorkFusion Raises $14 Million Series C Round Led by Nokia Growth Partners”
  • “DoubleNet Pay, Token Earn Spots at Plug and Play Accelerator”
  • “SocietyOne Appoints Former WestPac Exec as CEO”

Around the web

  • Payoneer powers international payments for South American e-commerce merchant, Linio.
  • TSYS certifies the new mobile EMV solution from Handpoint.
  • Global Retail Banker interviews Dilip Rao, head of business development and operations for Ripple in the Asia-Pacific region.
  • “Micronotes Names Artificial Intelligence Innovator and MIT Expert Dr. Luis Perez-Breva to Board of Advisors”
  • “Avoka Named Top Ten FinTech Worldwide by KPMG”
  • Notable features Financeit’s COO, Casper Wong.

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: RedCloud Technology Helps Financial Institutions Build Regulatory Compliant Products”
  • “PRUDENA Launches Online Marketplace for Stock Market Research”

Around the web

  • PYMNTS looks at Akimbo’s next venture, Akimbo Now.
  • Dealstruck crosses the $100m mark.
  • Deluxe Corporation celebrates its 100th birthday by ringing the opening bell at the New York Stock Exchange.
  • PYMNTS interviews Michael Garrity, co-founder and CEO of Financeit.
  • Inside Big Data interviews Dr. Venkat Krinivasan, CEO of RAGE Frameworks.
  • The Financial Brand’s Ron Shevlin takes a look at the future of Venmo.
  • InvestinGoal provides a free eToro base course to help introduce new investors to social trading.
  • Strands brings its PFM solution to Temenos Connect and Mobile Internet Banking.
  • Geezeo builds custom financial event app: Life by Geezeo.

This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.