Giving Kids the Gift of Goals; The New Rules of LendingClub

Revolut has added a new feature to its Revolut Junior app for youth aged seven to seventeen that will help parents teach the value of saving to their children. Goals enables both parents and child users to set and track financial savings objectives, and leverages the app’s other main features – Allowances and Tasks – to provide a more comprehensive financial wellness solution that works for kids and their parents.

Available to Revolut’s Premium and Metal customers, the new option can be used by parents to create financial savings goals and monitor their child’s progress as savings accrue. Kids can set their own savings goals as well, which can be supervised via the parent’s app. Goals can be funded directly by parents or by child users via their Allowances or by completing assigned tasks and chores.

“Goals, along with payments, allowances, and tasks, was one of our customers’ top requested and valued features,” Revolut Head of Premium Product Felix Jamestin said in a statement. “(We’re) excited to be building a product that is making saving fun and easy for both kids and parents.”

Revolut launched its Revolut Junior app earlier this year, and now boasts more than 200,000 children signed up for the program. Currently available in the EEA and the U.S., Revolut plans to offer the solution in Singapore, Japan, and Australia “in the near future.”

Alumni News Updates

LendingClub sheds P2P lending en route to bank rebirth: You would be forgiven for thinking the first rule of a company called “LendingClub” is to lend money. But LendingClub’s pivot away from its origins as an innovator in the P2P space 14 years ago continues as it announces that it will shut down its retail P2P platform as of the end of the year. The move comes more than a year after LendingClub shuttered its small business lending arm, and is widely understood to be a path-clearing effort en route to LendingClub incarnation as a bank.

Fenergo, IBM partner to bring AI to customer onboarding: A new integration between IBM Watson, the IBM Cloud, and Fenergo’s client lifestyle management technology will improve the efficiency of the onboarding process for financial institutions. IBM Customer Lifecycle Management with Fenergo combines Fenergo’s leadership in customer journey and digital transformation with IBM’s AI-enabled, AML and KYC solutions to provide better personalization, risk assessment, and regulatory compliance.

Eigen Technologies hires its first CFO: London-based NLP technology innovator Eigen Technologies has selected Spyros Karageorgis as its first Chief Financial Officer. Karageorgis comes to Eigen after tenures as CFO and COO at image recognition company Cortexica Vision Systems, and as CFO at SaaS e-commerce platform Venda. Karageorgis is one of two new members of Eigen’s C-suite: the company also announced new Chief Revenue Officer Tony Ehrens.

Photo by Joslyn Pickens from Pexels

Helping Secure Digital Identities; Managing Financial Crime Risk

Two of the biggest themes in fintech – digital identity and the rise of fintech in Central and Eastern Europe – meet in the latest announcement from biometric authentication specialist and Finovate Best of Show winner iProov. The company’s facial recognition technology now makes it easier for users of SK ID Solutions’ Smart-ID Service in countries like Estonia, Latvia, and Lithuania to renew their accounts without having to visit a physical bank branch.

“This is a major development for all digital identity providers,” iProov CEO Andrew Bud said. “Estonia has proved, for the first time, that a remote, automated, biometric ID verification service can deliver the highest possible levels of security.”

Recognized as equal to a handwritten signature throughout Europe, Smart-IDs enable users to authenticate themselves and provide permissions online using a smartphone app. iProov’s facial recognition technology adds a three-second scan to compare the image of the user to the image on their presented ID document to help defend against fraud and identity theft.

Smart-ID also leverages NFC-based ReadID document verification technology from InnoValor.

Financial crime risk management innovator Featurespace will be helping Enfuce combat fraud and money laundering courtesy of a newly announced partnership. Enfuce, a financial services firm based in Finland, will use Featurespace’s ARIC Risk Hub to enhance its ability to protect its customers from fraud and financial crime.

“Our clients deserve industry-leading services that allow them to freely and fully concentrate on the success of their core business, without worrying about ever-evolving fraud,” Enfuce co-founder and chair Monika Liikamaa said.

ARIC Risk Hub offers real-time transaction monitoring for fraud and financial crime, enabling institutions to identify and act against anomalous and potentially dangerous behavior as it occurs. The technology also reduces the number of false positives by as much as 70%, keeping anti-fraud processes efficient. Featurespace introduced its fraud-fighting technology to Finovate audiences at FinovateEurope 2016.

Here is a round up of recent news from our Finovate alumni.

  • Sezzle unveils new logo along with its first annual report.
  • Flybits expands its executive team in New York, Toronto, the U.K., and Dubai.
  • ID R&D updates voice biometric solution IDVoice.
  • M1 Finance surpasses $1 billion in assets on its platform.
  • Armor Bank selects Teslar Software’s automated workflow and portfolio management tools.
  • Mastercard partners with myPOS to boost adoption of card payment solutions among European SMEs.
  • Black Hills FCU selects nCino’s Bank Operating System.
  • Bazaarvoice launches partnership program with Yotpo as the piloting partner.
  • Keysafe inks partnership with Salt Edge to access tenants’ bank data without the need to acquire its own PSD2 license.
  • Lending Club appoints Annie Armstrong as Chief Risk Officer.
  • Assaray Trade and Investment Bank selects Temenos Infinity and Transact to power its digital transformation.
  • Long John Silver’s chooses Blackhawk Network for gift card program.
  • Trustly and Fly Norwegian team up to let travelers pay directly from their bank accounts.
  • Pindrop launches Deep Voice 3, the new version of its voice recognition technology.
  • Mastercard CEO Ajay Banga steps down, replaced by Chief Product Officer Michael Miebach.
  • Venmo to launch debit card for teens.
  • Almost 600 banks select Fiserv’s Turnkey Service for Zelle.
  • Finastra to offer ClickSWITCH’s account switching technolkogy to its clients.
  • Simmons Bank partners with Jack Henry to leverage its Banno platform to build a digital presence.
  • Currencycloud and Currensea team up.
  • Yseop and Automation Anywhere join forces to scale intelligent automation.
  • Lighter Capital appoints Kevin Fink at CTO and Patricia Elliott as CSO.
  • InComm launches Roblox gift cards in France and Germany.

Finovate Alum Features and Profiles

Revolut’s $500 Million Round Boosts Valuation to $5.5 Billion – Global financial platform Revolut has secured its place as the U.K.’s most valuable fintech.

Dealing with Deepfakes in Fintech – The fintech industry is ripe with security firms, such as iProov, that use AI to combat both video and audio deepfakes with anti-spoofing technologies.

Envestnet | Yodlee Acquires Indian Data Aggregator – Envestnet | Yodlee has acquired another asset in its strategy to further grow and develop its data aggregation and analytics business.

Meet Sonect: Cash Network Builder, Finovate Newcomer, Best of Show Winner – What’s better than having a large pizza with all your favorite toppings delivered to your front door? How about a side order of cash, saving you a trip to the ATM or bank branch?

Azimo Taps Ripple for Cross-Border Payments to the Philippines – Fueling these payment transfers is Ripple’s On-Demand Liquidity (ODL) solution that uses XRP to source liquidity and complete money transfers within three seconds.

Lendio Lands $55 Million to Match Small Businesses with Lenders – The investment more than doubles the company’s previous funding, bringing its total to $108.5 million.

SheerID Expands Identity Marketing Platform – The move enables brands to identify and acquire new customers across the globe.

Lending Club Snaps Up Radius Bank for $185 Million

When Lending Club was founded in 2007, the startup aimed to serve as a place to help borrowers avoid dealing with banks. In a somewhat ironic move today, that same startup is becoming a bank itself.

The move is made possible through Lending Club’s acquisition of Radius Bank, an online-only community bank founded in 1987 with more than $1.4 billion in assets.

It’s a logical purchase. Both Lending Club and its U.S. competitor Prosper have struggled with the classic chicken and egg conundrum– they can’t lend money to borrowers without investors ready and willing to lend, and they can’t find people willing to lend without enough qualifying borrowers. By becoming a bank, Lending Club has now adopted a pool of borrowers while having access to customer deposits to lend to those borrowers.

The deal is subject to regulatory approval and is expected to close in 12 to 15 months.

Radius President and CEO Mike Butler called the acquisition “a perfect marriage.” He added that, “with LendingClub bringing the leading digital asset generation platform, and Radius contributing a leading online deposit gathering platform,” they are set up for “long-term success.”

“This is a transformational transaction that allows us to reimagine banking in a way that is free from legacy practices and systems and where the success of LendingClub is aligned with the success of our customers,” said Scott Sanborn, CEO of LendingClub.

Lending Club isn’t the only alternative lender with aspirations to become a bank. U.K.-based P2P lender Zopa is currently working on launching a bank of its own and small business lender On Deck Capital plans to seek out a bank charter this year.

Finovate Alumni News


  • NestReady to Enhance the Homebuying Experience at West Community Credit Union.

Around the web

  • Tearsheet interviews Flybits CEO Hossein Rahnama on the challenge of digital transformation.
  • Facebook partners with HackerOne to launch bug bounty for its Libra Project.
  • Crowdfund Insider quotes Unison CEO Thomas Sponholtz and Lending Club CEO Scott Sanborn on the trend of fintechs considering a move from the San Francisco area.
  • Hanscom Federal Credit Union selects Digital Onboarding to facilitate account activation.

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


  • U.K. Neobank Gravity Chooses Core Banking Tech from Finastra.
  • WattzOn’s SNAP Delivers AI-Enabled Data Extraction for Cleantech Sales Teams.

Around the web

  • Dwolla to power Bento Pay, email-based payments for Bento for Business’ clients.
  • Lendio ranks 28 of 50 on a list of Utah’s fastest growing companies.

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.

LendingClub Unveils Select Plus for Sophisticated Investors

Months after LendingClub announced that it was closing its small business lending division, the online P2P credit marketplace is back in the fintech headlines with the launch of the Select Plus Platform. The solution enables sophisticated investors to participate in the financing of borrowers “who fall outside current criteria” of bank lenders.

Select Plus provides these borrowers with the opportunity to get the access to credit they need, while giving investors the ability to pursue potentially attractive risk adjusted returns. The solution will also boost LendingClub’s customer base, and help the company facilitate the more than 14 million applications for loans it received in 2018 alone.

Growing from inception to execution in less than a year, Select Plus is a testament to LendingClub’s product-building ability, according to company Chief Capital Officer Valerie Kay. In addition to getting to market quickly, Select Plus shows how the company is uncovering new ways to leverage its platform.

“This is a huge step forward in our evolution as we continue to unlock the power of the marketplace model to generate access and ultimately savings for borrowers by finding and matching the right capital sources with the right borrowers,” Kay said.

Select Plus already has its first investor. Theorem Partners, a firm that leverages data science and machine learning to invest in marketplace loans, will integrate its Theorem Score credit investment model with LendingClub’s new solution.

One of Finovate’s oldest alums, LendingClub demonstrated its “online lending community” at the very first Finovate conference in 2007. In the years since, the company has grown into the largest P2P lending marketplace in the world with more than three million customers and more than $50 billion in loans facilitated on its platform. In June, the company celebrated its three millionth member by paying off the borrower’s 6% APR, $40,000 debt consolidation loan in full.

Last month, LendingClub introduced Levered Certificates, a new financial product that combines an equity certificate based on a pool of unsecured personal loans with a fixed rate note to provide consistent financing over the term of the certificate. The company began the year partnering with U.K. data vendor Brismo to provide standardized performance metrics for lending.

Publicly-traded on the New York Stock Exchange under the ticker LC, Lending Club has a market capitalization of $1 billion. The company was founded in 2006, and is headquartered in San Francisco, California. Scott Sanborn is President and CEO.

Finovate Alumni News


  • Switzerland’s CREALOGIX Gets SaaSy.
  • King Klarna: New Investment Boosts Valuation to $5.5 Billion.
  • LendingClub Unveils Select Plus for Sophisticated Investors.

Around the web

  • Israel’s third largest bank Mizrahi-Tefahot to deploy core banking technology from Temenos.
  • Experian reports surging interest in Open Banking, with the number of API requests made in the U.K. growing by more than 2x since February.
  • Russia’s Tinkoff Bank to sell the speech recognition technology behind its Oleg chatbot to corporate customers.
  • LeapXpert earns spot in 2019 FinTech Innovation Lab Asia-Pacific.
  • Mortgage Cadence enhances data verification, fraud prevention and compliance with integration of DataVerify to its Enterprise Lending Center.
  • AT&T launches new bug bounty program in partnership with HackerOne.
  • Jumio takes gold in the Security Software category of the 2019 IT World Awards.
  • Lendio tops $1.5 billion in small business loans financed.
  • Ondot introduces Transaction Intelligence to make it easier for consumers to recognize purchases.

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


  • Workday Buys Blockchain-Based Identity Management Innovator Trusted Key.
  • nCino Acquires Analytics and Insights Specialist Visible Equity.

Around the web

  • announces partnership with U.K. property marketplaces StuRents and Mashroom.
  • Identity verification specialist Onfido partners with international payments provider Currencies Direct.
  • NewFi Wholesale implements LoanScoreCard’s automated underwriting system Portfolio Underwriter.
  • Apply Financial, Currencycloud collaborate to simplify cross-border payments.
  • Lending Club offers Levered Certificates backed by over $100 million in loans on its marketplace.

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


  • ABBYY Unveils New SDK for Mobile Web Capture.

Around the web

  • Identitii’s tokenization technology powers HSBC’s Digital Accounts Receivable Tool (HSBC DART).
  • Fiserv’s FlexWage now allows earners to receive their salary on their own schedule.
  •  LendingClub extends balance transfer to more borrowers.
  • Berkshire Bank partners with Finastra to launch real-time payments.
  • Belgian online lender Buy Way deploys e-signature solution from OneSpan.

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.

Lending Club Shutters SMB Lending Arm, Redirects Customers to Other Lenders

U.S. peer-to-peer lending pioneer Lending Club closed the doors on its in-house small business lending operation. The good news is that it opened a window for small business clients through a round of partnerships.

Opportunity Fund, a non-profit small business lender; Funding Circle, one of the largest alternative small business lending platforms in the U.S.; and Lending Club have teamed up to offer Lending Club’s small business clients access to credit. Businesses can now borrow up to $300,000 for rates as low as 5%.

“With partners like Opportunity Fund and Funding Circle, we’re creating an ecosystem where LendingClub’s members can take advantage of additional services from trusted providers that can help them generate more savings,” said Scott Sanborn, CEO of LendingClub. “This enables us to both deliver greater value to our applicants and capture a new revenue stream for LendingClub, while further simplifying our business and setting the stage for more partnerships and innovations for Club Members.”

Opportunity Fund will leverage LendingClub’s online application technology to provide prequalified offers to underserved small businesses, while Funding Circle will apply its credit assessment process to fund loans for established small businesses. Overall, the three will be able to serve a broader range of applicants, including those that may have previously been rejected because of limited credit, including businesses owned by minorities, women, and immigrant entrepreneurs.

Lending Club entered the small business lending market in 2014, before the company’s original CEO, Renaud Laplanche, resigned in 2016 amid accusations of loan-documentation errors.

Founded in 2006, Lending Club demoed at FinovateSpring 2009 and at the inaugural Finovate in 2007. The company went public in 2015 and today has a market capitalization of $1.46 billion.

Finovate Alumni News


  • SoFi Goes InsurTech with Lemonade and Root.
  • Lending Club Shutters SMB Lending Arm, Redirects Customers to Other Lenders.

Around the web

  • elEconomista interviews Finect’s Antonio Botas (in Spanish).
  • YellowDog partners with DVE Advanced Systems.
  • Ixaris adds new Chief Legal and Compliance Officer Georg von Breven and Commercial Director Sean Ashton.
  • FICO unveils the latest version of its Decision Management Platform, FICO DMP.
  • Visa launches a suite of beta APIs and tools to help developers design and test payment solutions.

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 Alumi News


  • Teams Up with VA to Bring Identity Proofing Options to Vets.
  • OmniSci Reports Wide-Ranging Growth in Wake of Rebrand.

Around the web

  • Sberbank customers can now make instant transfers between Sberbank cards and WebMoney wallets courtesy of new partnership.
  • Mobile gifting platform Swych announces it will accept payment in cryptocurrency.
  • Ellie Mae introduces the early adopters of its Integrated Partner Program.
  • Lending Club and U.K. data vendor Brismo team up to provide standardized performance metrics for lending.

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.