Finovate Alumni News

On Finovate.com

  • Temenos Acquires Avoka in $245 Million Deal.
  • More Than $400 Million Raised by 19 Alums in Q3 2018.
  • ShopKeep Closes $65 Million to Boost Small Business Financing Tool.

Around the web

  • The Open Bank Project wins Best Technology Provider for Open API Standards at Global Open Banking Awards.
  • InComm partners with Revolut to offer their prepaid cards at U.K. retail chain wilko.
  • U.K.’s Experian to buy Africa’s Compuscan.
  • First Data and China CITIC Bank International to join forces with launch of new merchant acquiring solutions.
  • PayPal launches Xoom International money transfer in Canada.
  • Docutech and Tavant integrate for digitally-focused loan origination process.

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

  • Daon Partners with Tradelink to Bring Biometrics to Dah Sing Bank.
  • AI Foundry Overhauls Agile Mortgages Solution.

Around the web

  •  Klarna partners with EMaC, a U.K. automotive service plan provider, for a drive now, pay later service.
  •  Paysend triples its customer base over the last 6 months.
  • eToro announces that clients can now invest directly in shares on the platform.
  • MX appoints Ben Holzman, a former managing director of Bain Capital Ventures, as new COO.
  • TechCrunch: Coinbase opens its crypto index fund to accredited U.S. investors.
  • Langley FCU to deploy Symitar Episys core processing platform from Jack Henry & Associates.
  • Mambu announces new board member, former SAP CEO, Henning Kagermann.
  • Revolut partners with Cyprus-based telecommunications company, PrimeTel.
  • First Data and Mastercard collaborate on a digital disbursement platform for business customers.
  • Entersekt opens new office in Atlanta, Georgia to support the company’s growth in North America.
  • The Open Bank Project collaborates with Citizens Bank on innovation event.
  • First National Bank Texas ($1.8B Assets) selects Insuritas to power turnkey insurance agency.
  • Prosper resumes operations for Montana residents

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

Around the web

  • TechCrunch talks with HackerOne CEO Marten Mickos on bug bounties and the value of white hat hackers.
  • Cardlytics bolsters executive ranks with pair of new group presidents: Randall Beard and Shannon Johnson.
  • American Banker interviews new SoFi CEO Anthony Neto.
  • First Data goes live with Clover Mini and Clover Flex smart terminals in Germany and Austria.
  • Chetu earns Best Custom Business Software Developer Award from US Business News.
  • Ivan Nabalon, CEO and founder of Best of Show winning Electronic IDentification discusses the mainstream potential for cryptocurrencies.
  • ChartIQ teams up with Trading Central to provide technical insights and tool to traders.
  • Blockchain healthcare platform HealthCombix partners with NuCypher.

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

  • AutoGravity Tops $2 Billion in Financing Requested Milestone.
  • Geezeo Powers PFM Platform for F&M Bank of Virginia.
  • Signicat Raises $2 Million to Build Out its Identity Assurance as a Service Technology.

Around the web

  • Forbes: Atlanta Startup Pindrop Makes Its Push To Power Security For The Voice Economy.
  • Chevy Chase Trust selects FIS for Unified Wealth Management Technology Platform and Services.
  • eMoney Advisor and Capital One announce new API data sharing agreement.
  • Check Point Technologies announces Infinity Total Protection, a new security model to prevent ‘Gen V’ threats and attacks
  • Investment News: Betterment beefs up 401(k) advisory board with ex-Vanguard expert.
  • BMO Financial Group chooses Up Real -Time Payments solution from ACI Worldwide.
  • Global payment providers IDT and Mercury FX to use Ripple’s XRP.
  • The Paypers interviews Roberto Valerio, CEO of Risk Ident, on getting the best from fraud prevention solutions.
  • First Data expands agreement with SBI Card.

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.

Dream Payments Integrates with QuickBooks and First Data’s Clover

Cloud-based payment platform Dream Payments has teamed up with Quickbooks, and First Data’s Clover to bring QuickBooks capabilities to U.S. merchants this week.

This comes three months after Dream Payments first initiated a partnership with First Data last year, launching the Dream Payments POS for merchants using First Data’s Clover. It also follows Dream Payments’ successful pilot of a QuickBooks integration in Canada.

The partnership will allow Dream Payments’ business clients using any POS device in Clover’s line to sync with QuickBooks. After a purchase, QuickBooks will automatically and in real time record the sale, update inventory, collect and close invoices, and import sales tax.

CEO of Dream Payments Brent Ho-Young said that the integration will help businesses succeed. He added that, by combining QuickBooks and Clover in the Dream Payments POS, “we’re unlocking the cloud and simplifying the most complex aspects of running a successful business — customer experience, payments and accounting. Now businesses of any size can access a powerful commerce platform that traditionally only the largest retailers could afford.”

Founded in 2014 and with operations in Stamford, Connecticut, Dream Payments helps small businesses accept all payments, including chip cards, contactless cards, and mobile wallets. In addition to ties with Quickbooks and First Data, the company also counts TD Merchant Solutions and Chase Paymentech in its partnership ecosystem.

At FinovateSpring 2015, Dream Payments debuted its mobile POS device. Last fall, the company partnered with IBM to leverage its cloud and security capabilities. Dream Payments has raised $14.9 million. Brent Ho-Young is CEO.

Worldline Buys First Data Baltics for $85 Million

European payments and transactional service provider Worldline has agreed to acquire First Data Baltics, the leading payment processor in the region, for $85 million (73 million euros). The deal is slated to be finalized in the third quarter of this year.

Worldline’s acquisition of the 200-person First Data Baltics branch helps the France-based company break into the Lithuanian, Latvian, and Estonian markets. Gilles Grapinet, Worldline CEO said that the deal is a “significant development” that will “accelerate the execution of our pan-European consolidation strategy in financial processing services.” Grapinet added, “In one transaction, we gain a leading position in the fast-developing countries of Latvia, Lithuania and Estonia, we reinforce our group capabilities in the north of Europe and will establish new relationships with numerous prestigious Baltic and Nordic banks.”

This marks the company’s second acquisition this year, after it acquired Digital River World Payments earlier this month. Worldline anticipates these acquisitions are the first of many for the company. Grapinet said that the company sees, “an unprecedented level of M&A opportunities in the payment space, notably in Europe.”

Founded in 1973, Worldline showcased a connected piggy bank. The IoT device pairs with a companion mobile app on a child’s phone to serve as a physical savings account for the kid. The app helps the child recognize and count their coins, while the parent-facing side of the app enables parents to deposit money into the child’s online account using NFC.

Worldline went public in 2014 and Earlier this week the company and Total partnered with InTouch to deploy Guichet Unique, a digital solution for retail networks. Worldline has ranked as a Market Leader in the Ovum Decision Matrix for its white label mobile wallet solution and was recently awarded Best Chile 2017 for its commitment to the well-being of its collaborators.

Finovate Alumni News

On Finovate.com

  • BioCatch and Experian Form Partnership.
  • Finovate Debuts: Icon Solutions’ Instant Payments Helps Keep Banks PSD2 Compliant.

Around the web

  • unblu receives European patent protection for 3rd generation co-browsing technology.
  • Bluefin Payment Systems earns EMV certification from First Data.
  • Payment solutions provider Buckaroo chooses AML solution from Fiserv.
  • Tech Loop interviews GMC Software Technology’s Michaela Rýdlová and Jan Růža.
  • Infosys recognized as “major player” in IDC MarketScape: Service Providers for EMA Utilities Vendor Assessment.
  • Quantopian to deploy order/execution management technology from FlexTrade.
  • BusinessWorld profiles BankBazaar and co-founder Rati Shetty.
  • Neener Analytics accepted into the Citibank WorldwideT4I Accelerator. Come see Neener Analytics at FinovateSpring on April 26  & 27.
  • Standard Chartered announces digital wealth advisory tool

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

  • AutoGravity Earns Multi-Million Euro Investment from Daimler.
  • Roostify to Power Self-Serve Mortgage Platform for Chase Bank.

On FinDEVr.com

  • Payoneer Launches Cross-Border, Mass Payment APIs

Around the web

  • Northern California’s Kaiperm Diablo FCU to deploy core banking technology from NYMBUS.
  • Shopkeep integrates its POS technology with First Data’s Clover platform in extension of current partnership.
  • Arxan launches Arxan Application Protection for JavaScript to protect JavaScript-based applications.
  • CuBroadcast interviews CUneXus CEO Dave Buerger.

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

  • Azimo Lands $20 Million in Series B Investment Led by Frog Capital
  • Narrative Science Launches Quill Portfolio Review

Around the web

  • INETCO teams up with Printec Partners to bring customer transaction data and analytics to FIs in Central and Eastern Europe.
  • MasterCard to provide tokenization support for private-label credit cards used in digital wallets.
  • Dwolla joins steering committee of Fed Fast Task Force dedicated to creating a faster payment system.
  • iSignthis partners with IPGPAY Ltd., bringing online identity-verification to clients in the Asia Pacific region.
  • Avalara acquires Belgium-based VAT Applications. Check out Avalara at FinDEVr on 6/7 October 2015 in San Francisco.
  • Kabbage partners with UPS Capital Partners to offer more SMBs access to a loan through UPS. Kabbage will present at FinDEVr in San Francisco this 6/7 October.
  • SandHill mentions SnoopWall as 1 of 5 cool, pre-VC cybersecurity startups.
  • First Data launches Clover Mini for accepting Apple Pay, Android Pay, and other NFC-enabled wallets.
  • Thinking Capital announces new name, visual identity and tagline.
  • Insuritas partners with Gate City Bank to install insurance-agency solution in the North Dakota-based bank.
  • BizEquity signs distribution agreement with Four Seasons Financial Group, a wholesale insurance and investments provider for institutional markets.
  • Social Money and Sallie Mae Partner to Create New Digital Banking Solution.
  • The Coin Telegraph talks open source software and fintech innovation with Quantopian.

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.

Technology is Transforming Banking and Payments

With the recent Motorola/C-Sam mobile payments announcement followed by similar payments platform launches from PayPal, Black Lab Mobile Inc., Commerciant LP, Sify Ltd. in India, Q-Pass, and SVC Financial Services Inc., it’s obvious that mobile payments aren’t the mere pipedream they seemed to be last year.

What’s less obvious is the change about to befall the payments industry and, especially,  banks, that mobile payments embodies. To hear Ray Kurzweil tell it in his newest book, The Singularity is Near (Viking, 2005), the rate of such change in the next ten years will be exponential, and a line graph of it will be vertical. The change grows slowly and imperceptibly at first, he says, but when the pieces are all in place, its acceleration explodes.

This is important not just because the world we’ve lived in is about to more or less end, but because of the backdrop against which innovations like mobile payments will take place. The current crop of cell phone-based payments will preserve bank and card brands, but the second generation of mobile payments will be made with very small devices that will eliminate the possibility of displaying any sort of logo and, thus, branding. The third generation—taking place in hyperspace, for all we know—will follow in less than ten years, and make the second generation’s futuristic world seem quaint.

Technology has ceased being only a more efficient tool to accomplish traditional jobs; now, it’s changing the jobs themselves. The capabilities created by technology create the premise for ever-greater changes in what’s achievable, in turn raising expectations of what can be accomplished; meanwhile, the abilities of that transforming technology lay a foundation for even more change. Banking and payments is unlikely to escape this phenomenon, and in the approaching world, the past is a poor predictor for future performance.

Sound familiar? Sure. Consultants and other wise men have been intoning about this for 20 years, and financial professionals can be excused for being skeptical about this latest round of warnings that the sky is falling—especially since the sky’s still blue.

But technology has always been the instigator of change and not just its messenger. The telephone and private automobile turned concentrated cities with economic specialties into sprawling, economically-diversified megalopoli, eventually allowing people like this reporter to live in rural America and still make a living in the mass market (I was doing this before the Internet). The idea of just-in-time delivery didn’t just turn Indianapolis and Nashville into thriving metro areas because each is at a nexus of the Interstate Highway system. It made the idea of a national industrial base obsolete, which in turn paved the way for the minimization of the nation state.

That still-evolving transformation took two generations following World War II to become visible, even though the pieces were in place before World War I. But this next chapter will take much less time, and be more transformational: Scientists, for instance, have already created two different types of machine-based muscle tissue, paving the way for real androids right out of Bladerunner, while experiments leading to computer-enhanced humans—cyborgs—are underway today.

Finance cannot escape the revolution it helped create. Ten years ago, foreign-exchange trades were cleared over long time periods, all over the globe. Today, most are cleared outside Coventry, England, at the Continuous-Linked Settlements Bank. Credit derivatives, now a multi-trillion dollar market made possible by computers, barely existed ten years ago; today, the global hedging market is probably bigger than the equities market being hedged. And certainly Basle II compliance, which frees so much capital for business purposes from regulatory reserves, is built entirely on the idea that creating a computer-generated, intraday picture of institutional risks is achievable.

But in most cases, banks have been following change and trying to adapt it to their internal considerations. They have rarely embraced it. This may be rational and seems prudent—both virtues in a period of great change.

But as Harvard’s Clayton Christensen points out in his work, this is also what destroys institutions—even industries. Acting rationally and prudently, institutions focus on building on their core competencies, and serving their best customers: Little-regarded businesses pick up the unwanted crumbs, and sooner or later, the market for the big company’s products is hollowed out, and the disregarded company, now a dominating giant, is buying the former colossus.

That phenomenon is what created First Data Corp., and what today undermines the business case for credit cards. It’s also what underlays the idea of the so-called “cannibal” bank of the 1990s: An entirely new institution sponsored by a traditional bank that, using the latest technology, would create the next generation of banking and eventually “eat” the parent.

Jamie Dimon pretty much scuttled that latter idea when he shut down Wingspan Bank and took the reins of Bank One. The dot-com bust did the rest. But the dot-com bust didn’t bury technology or technological change—it just weeded out businesses whose primary asset was a preposterous story, and left the adults in charge. The Internet is still growing, and computers are faster, smaller, more common and more capable than ever.

It’s not impossible that the Wingspan idea was just a little early. Certainly banks, which rely more and more on payments—entirely a computer operation—can’t afford to minimize how computers are changing the nature of their business, just because their internal politics finds “Wingspan” to be a convenient buzzword for dismissing a threatening new idea.

Those discussions typically revolve around banks being either this, or that—fully automated, or merely assisted by useful tools. This premise is nonsense. The world banks and payments operations we live in today wasn’t created by Kierkegaard; it was created by people like Ray Kurzweil and Andy Grove. The Medici Bank closed a long time ago.

Mobile payments is the path to the next generation of retail payments, and even if they do threaten to minimize—or atomize—the idea of what a bank’s brand is worth, that’s no reason to avoid the reality that there’s plenty of money to be made in the future of payments, and that clinging to old forms is unlikely to prove a useful response to new facts.

In the American Civil War, infantry doctrine was still attached to ideas of how to overwhelm the enemy’s position, based on the idea that slow-loading muskets made it possible to march up to their line in formation, and give ‘em the bayonet. But new guns made mincemeat of that idea—and of the men who charged entrenched positions defended with those guns. There’s no reason for banks and their payments operations to suffer similar fates if they embrace change.