Finovate Alumni News

On Finovate.com

  • Stash Scores $65 Million; Launches Stock-Back Rewards.
  • TickSmith Teams Up with CanDeal to Power DataVault Innovations.
  • First Wave of Demoing Companies for FinovateSpring Revealed.

Around the web

  • Aerospike launches suite of add-on modules, Aerospike Connect, to make it easier for businesses to integrate the company’s database.
  • Identitii renews its partnership with HSBC Global Services (UK).
  • Onfido appointed to the FIDO Alliance Board of Directors.
  • ACI Worldwide announces the extension of its partnership with South Africa’s Capitec Bank.
  • IdentityMind Global to support Koi Trading’s AML Compliance-as-a-Service offering.
  • Gusto appoints Square’s former Head of Information Security Fredrick Lee as its new Chief Security Officer.
  • PayPal adds instant transfer feature for bank accounts.
  • Insuritas and ReliaQuote partner to offer ID theft protection to 10 million consumers.
  • Fenergo enables financial firms to digitally visualize risk in fight against financial crime.
  • GroundFloor partners with Dwolla to make payments more efficient for borrowers and investors.

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 Alums Digital Onboarding, ForwardLane, and SizeUp Join MassChallenge’s 2019 FinTech Inaugural Program.
  • CB Alerts Portal from Ethoca Helps Carte Bancaires Merchants Fight Fraud.

Around the web

  • Agreement Express and TD Ameritrade Institutional deliver straight-through account opening to Veo Platform.
  • Gusto’s Flexible Pay is now available to employees directly in Texas through a newly created subsidiary Gusto Capital LLC.
  • AlphaPoint announces support for Stellar Lumens.
  • Lincoln Financial Group unveils new partnership with eMoney Advisor.
  • Sezzle hires former Target, TD Bank executive Jamie Kirkpatrick as its new Chief Risk Officer.
  • Averon co-founder and COO Lea Tarnowski earns finalist spot in Banking Technology Awards’ Women in Technology Leadership category.
  • Coinbase introduces instant PayPal withdrawals for U.S. customers.
  • Ripple and UAE Exchange team up to launch blockchain-powered cross-border remittance payment services in Asia in early 2019.

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

  • MaxMyInterest Brings Intelligent Cash Management to Radius Bank.
  • SuperMoney Launches Student Loan Refinancing Marketplace.

Around the web

  • Payfone recognized for growth with Deloitte’s 2018 Technology Fast 500 Award.
  • Benzinga talks with Kabbage Co-founder Kathryn Petralia.
  • IndusInd Bank launches Dynamics-powered, interactive credit card with buttons.
  • PayPal completes acquisition of Hyperwallet.
  • Education technology pioneer Kinderlime selects Gusto as its exclusive payroll provider.

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.

Gusto’s New Deal to Deliver Automated Accounting to Small Businesses

Payroll, benefits, and HR platform Gusto has some benefits of its own up its sleeve. The San Francisco-based company announced this week it has teamed up with ScaleFactor to deliver a fully integrated accounting experience to Gusto clients.

With ScaleFactor, Gusto business users can sync their payroll and benefits directly with their accounting and financial data. The combination of the two tools offers instant visibility of cash flow and access to Gusto’s payroll and benefits platform. Gusto’s Head of Partnerships, Mike Triantos, said the company formed the partnership because, “We know how important tools and technology will be in helping our users monitor the financial health of their business.”

“By joining forces with Gusto, we are empowering SMB owners and operators with the ability to seamlessly link accounting automation with HR and payroll,” said Kurt Rathmann, CEO and founder of ScaleFactor. “Having a comprehensive real-time view of a business’ health saves not only time and money, but enables business leaders to make informed decisions that drive growth.”

ScaleFactor was founded in 2013 to do what its name implies– help small businesses scale faster. By automating financial tasks such as accounting, payroll, bill pay, invoicing, cash flow forecasting, and tax compliance, ScaleFactor helps businesses focus on their business and make better business decisions.

With offices in San Francisco and Denver, Gusto processes tens of billions of dollars in payroll for more than 60,000 businesses in the U.S. The company also offers a painless way for small businesses to offer their employees benefits such as health insurance, 401(k) retirement plans, and 529 college savings plans.

This isn’t the first accounting platform Gusto has aligned with. Earlier this summer, the company teamed up with New Zealand-based cloud accounting firm Xero. The technical integration of the two platforms is still underway and is expected to be complete by early 2019.

Gusto, which launched in 2012 under the name ZenPayroll, showcased its flagship payroll solution at FinovateSpring 2014. Earlier this summer, the company landed $140 million in funding, boosting its valuation to $2 billion.

Finovate Alumni News

On Finovate.com

  • Gusto’s New Deal to Deliver Automated Accounting to Small Businesses.
  • Quadient’s New Launch Accelerates the Insurance Claims Process.
  • AlphaPoint to Power Asset Management Tools for Laureate Digital Securities.

Around the web

  • Pendo Systems appoints Bill Woodley as President and COO.
  • eMoney Advisor launches voice assistant for financial advisors.
  • Ledger to integrate IOTA tokens with its secure hardware cryptocurrency wallets.
  • KPMG names Klarna, Revolut, and SoFi among 25 most innovative Fintech startups in the world.

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

  • Larky Lands Three: Mobile Engagement Platform Adds New CU Partners.

Around the web

  • Larky launches with Encompass Credit Union (Canada), BayCoast Bank (MA), and Oklahoma Central Credit Union (OK)
  • Insuritas announces partnership to launch digital insurance agency platform for 3Rivers FCU.
  • Fenergo creates new team to further develop and foster its partner ecosystem.
  • First Round Review analyzes Gusto’s brand.
  • Coast to Coast Motors dealership strikes deal with PayNearMe.
  • BlueRush announces partnership with Microsoft Azure.
  • FICO to provide KYC and onboarding solutions for Belarus-based lender, Belgazprombank.

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.

How Fintech is Disrupting the Modern Workplace

From the way payroll and benefits are administered to the nature of work itself, fintech innovation is helping build the 21st century workplace.

Will “pay day” be a thing of the past? How long until companies across the country are competing on the basis of their ability to help you pay off your student loans?

Technology has done much to change the nature of work in recent years. The same can be said for specific areas like financial technology. Here’s a look at how fintech innovations are making their own contributions to the 21st century “office”.

Getting Paid

Many of us work because we enjoy what we do. But whether you consider getting paid a top priority or just a perk, who wouldn’t love the flexibility of being able to get income when you need the money most – rather than on an arbitrary, twice a month schedule?

Companies like Gusto are among those making this possibility a reality. This summer, the payroll, benefits, and HR technology company introduced Flexible Pay, a new solution that enables employees to get paid on a date other than their employer’s standard pay date. Calling bi-weekly pay schedules a “relic” of the days when payroll taxes were calculated manually, Gusto co-founder and CEO Joshua Reeves has set out to prove that “with modern technology, employees shouldn’t have to wait weeks to get paid.”

The New Workspace

Even the word “telecommute” sounds more like something from a bygone time rather than the way a growing number of Americans are “going to work”. But the reality of remote employment for a growing number of people is here and fintech companies have both encouraged and participated in this trend. “Millennials simply don’t feel they need to be in the office, or at their desk, to get a job done — especially since the evolution of technology has made portability very possible,” Demetrios Gianniris, a director at MG Engineering, wrote for Forbes.com earlier this year in a post called The Millennial Arrival and the Evolution of the Modern Workplace.

To this end, innovations in mobile technology and messaging (consider Eltropy’s innovations in providing secure, compliant communications via popular messaging apps) have helped accelerate the revolution in remote work. There are also fintechs removing friction from some of the more mundane aspects of working outside the office. Expensify, for example, has partnered with Uber to make it easier for workers who use the ride-sharing service to separate business from personal expenses. And speaking of expenses, the tools offered by companies like Ondot empower workers to make necessary purchases while ensuring control and accountability for managers and employers.

Doing the Work

The flip side of the convenience that technologies like chatbots and IVR provide is that, for a growing number of financial professionals, these technologies are virtually co-workers. As machine learning and AI become increasingly commonplace, workers are more likely to rely on interacting with processes than communicating with people when it comes to getting their daily tasks done.

For financial advisors, fintechs are developing a wide variety of tools to make it easier for them to communicate with customers, and build highly personalized investment portfolios and financial plans. Onist, which announced a partnership with Quovo this summer, enables financial advisors to set up a virtual family office to facilitate collaboration between advisors and clients.

Technology also promises to make it easier for workers to leverage the work of other workers more effectively. One of the key insights of New York-based WorkFusion was the way a combination of machine learning and crowdsourcing of human talent could enable smaller businesses to “punch above their weight” when it comes to managing data. The company has since leveraged this technology to produce the first integrated RPA (robot process automation) and cognitive automation platform: Smart Process Automation (SPA) currently deployed in verticals including financial services, healthcare, and insurance.

Managing the Gains

Fintechs are in the lead when it comes to helping workers make better financial decisions. A firm like DoubleNet Pay helps employees manage cash flow by automating their billpay and savings obligations and coordinating payouts around paydays. Wealthucate, a financial wellness specialist out of San Jose, California, provides an automated financial wellness program that helps businesses enhance their own offerings. Wealthucate’s solution leverages gamification and personalization to increase the participation rate in benefit programs and help companies better explain their benefit offerings.

Among the more interesting ways that fintechs are helping workers manage their money is the approach by Student Loan Genius. This company enlists employers in the fight to help Millennial workers in particular pay off their student loans while simultaneously investing in their own employer-based retirement plan as soon as possible.

Fintech and the Work of the Future

It may be only a matter of time before we are able to watch the real-time flow of micropayments into our accounts or a be a part of a workforce in which most of us have both a robot supervisor and a robot subordinate. In any event, it is clear that whatever innovations the workplace of the future holds, fintech companies will be very much a part of making them happen.

Top image designed by Freepik

Finovate Alumni News

On Finovate.com

  • Wonga Raises $13 Million in New Funding.
  • TransUnion Teams Up with EXL for CECL Compliance.
  • RightCapital Adds Student Loan Functionality to its Platform.

Around the web

  • PasswordPing wins Startup of the Year at 13th Annual 2018 IT World Awards. See PasswordPing at FinovateFall in New York next month.
  • Zopa to finance loans for CommuterClub season tickets, courtesy of a new partnership.
  • Xero announces integration with GoCardless.
  • PYMNTS.com profiles payroll, benefits, and HR platform, Gusto.
  • MicroStrategy appoints Marge Breya as Chief Marketing Officer.

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.

Gusto Brings in $140 Million, Doubling Valuation to $2 Billion

Payroll, benefits, and HR platform Gusto broadcast some news today with, well… gusto. The San Francisco-based company closed $140 million in Series C funding.

This brings Gusto’s total amount raised to $310 million and boosts its valuation to almost $2 billion. Joining existing investors in the round are MSD Capital (Michael Dell), portfolios managed by T. Rowe Price Associates, Dragoneer Investment Group, and Y Combinator Continuity Fund.

Josh Reeves, Gusto CEO and co-founder, said that the new investors share the company’s passion for “creating a world where work empowers a better life.” He added, “We chose these investors because they care about enabling small businesses with modern payroll, benefits and HR. There are millions of companies out there to help, and this is a long-term journey for us. We’re just getting started.”

Gusto will use the investment to enhance its payroll, benefits, and HR technology to add more direct-to-employee benefits that allow employees to manage how and when they get paid. The company recently unveiled a development along these lines with the launch of Flexible Pay, a solution that allows workers to choose a payday that works best for their cashflow situation, outside of their employer’s standard payroll schedule.

Henry Ellenbogen, T. Rowe Price New Horizons Fund portfolio manager, noted that Gusto’s expertise isn’t just limited to payroll. “We believe Gusto has an opportunity beyond the payroll category in which they have demonstrated leadership for the last six years,” He said. “The company has a strong and focused management team, and it has the potential to become much larger as it expands its efforts to employees who seek to improve their financial mobility and achieve greater personal prosperity.”

Gusto, which launched in 2012 under the name ZenPayroll and showcased its flagship payroll solution at FinovateSpring 2014, has been busy lately. Not only has the company expanded its client base to serve more than one percent of all employers in the U.S., the company also paired up with Xero earlier this month and in June launched a directory of accounting firms suitable for small and medium-sized businesses.

Finovate Alumni News

On Finovate.com

  • Microsoft, Nationwide Invest $12 Million in SME Lender BlueVine.
  • Gusto Brings in $140 Million, Doubling Valuation to $2 Billion.
  • Tavant Technologies Powers New Personalized Mortgage POS System from Ditech.

Around the web

  • Coinbase taps Jeff Horowitz as its next Chief Compliance Officer.
  • Thomson Reuters announces strategic partnership with global cryptocurrency market data aggregator, CryptoCompare.
  • FIS and blockchain platform Billon sign letter of intent to pursue joint product development.
  • Prosper surpasses 1 million loans have been originated, totaling about $13 billion.
  • Kofax enters sales agreement with JIEC to deliver RPA and digital transformation solutions.
  • CurrencyFair surpasses milestone: €7 billion traded.

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.