FinovateSpring Sneak Peek: LendingRobot

LendingRobot_homepage_Mar2016

FS2016-wdateA look at the companies demoing live to 1,500+ fintech professionals on May 10 and 11. Register today.

LendingRobot is the first robo-adviser for peer lending. It combines a user-friendly interface with sophisticated, machine-learning algorithms to help individual investors get steady returns.

Lending Robot features:

  • A new way to monitor investments in peer lending
  • Benefits from LendingRobot’s extensive experience in the field
  • 100% free, no commitment

Why it’s great
LendingRobot is really, really easy to use. But it uses some really, really fancy software to provide really, really good returns to individual investors.

Presenters

LendingRobot_EmmanuelMarotEmmanuel Marot, CEO

Marot is 27% financial quant, 25% entrepreneur, 20% designer, 18% in high tech, 12% in unconventional wisdom, and at least 2% wrong.
LinkedIn

 

LendingRobot_GiladGolanGilad Golan, President

Golan is a software developer and entrepreneur who loves building innovative products.
LinkedIn

Finovate Alumni News

On Finovate.com

  • “Coinbase Unveils America’s First Bitcoin Debit Card”
  • “Blooom Named “One in a Million” in Kauffman Foundation Startup Competition”

Around the web

  • Cardlytics ranked 25 on Deloitte’s Technology Fast 500.
  • Entrust Datacard’s Kurt Ishaug named one of 24 CFOs of the year by the Minn./St. Paul Business Journal in the “large private company” category.
  • Prosper Marketplace announces mobile SDK for the marketplace lending industry.
  • DriveWealth adds Carlo Macchi as director of global institutional accounts. See DriveWealth at FinovateEurope 2016 in London in February.
  • PYMNTS.com interviews Arroweye Solutions’ President and CEO Render Dahya on payment trends in 2015.
  • TRADE names Markit to its Hall of Fame.
  • Signifyd releases extension for the Magento 2 platform.
  • LendingRobot to bring its automated robo-investing to Funding Circle’s small-business lending marketplace.

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.

Finovate Alumni News

Around the web

  • TSYS launches new data analytics platform, Analytics Intellisuite.
  • Let’s Talk Payments interviews Rippleshot CEO Canh Tran, co-founder.
  • International Business Times previews the arrival of LoopPay-powered Samsung Pay in the U.K.
  • Business Insider looks at the growth prospects for Zopa, P2P lender.
  • New investors can now open Lending Club accounts on LendingRobot.
  • CU Mobile Apps (CUMA) chooses Cachet Financial Solutions as its preferred mobile deposit provider.
  • Holvi launches iframe to enable users to embed Holvi online store products into external websites.
  • Yodlee cites innovations from PayPal, Credit Karma, Personal Capital, and ReadyForZero in its piece 7 Habits of Highly Successful Fintech Startups. Check out Yodlee, PayPal, and Personal Capital at FinDEVr San Francisco 2015.
  • Dwolla gives account holders option to enable two-factor authentication.
  • Lend Academy: Lending Club announces open integration, third parties jump on board.
  • Kony achieves mobile competency status awarded by Amazon Partner Network.
  • Motif Investing celebrates the launch of dollar-based trading with Free Trading Day on Friday

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

  • SizeUp, Token, and Pendo Systems Win at Innotribe 2015 New York
  • Vantiv Brings its Payment and Processing Solutions to the USPS
  • Finovate Talks Payment API Security with John Canfield, VP of Risk for WePay

Around the web

  • American Banker talks with LendingRobot about liquidity in P2P lending.
  • Wallaby now has 2,700 credit cards and 500 banks in Cardbase database. Come see Wallaby at FinDEVr in San Francisco.
  • SuiteRetail joins Avalara’s community of certified solution partners. Check out Avalara at FinDEVr 2015, 6/7 October.
  • Tradier Brokerage integrates with OneOption LLC to advance options trading platform.
  • GeekWire considers Avalara’s success, including its corporate lounge, at the U.S. Open.
  • PYMNTS interviews Souheil Badran, newly appointed president and CEO of edo Interactive.
  • Nuno Sebastião, CEO of Feedzai, talks with PYMNTS about fraud detection.
  • Pindrop Security launches Pindrop Labs.
  • Financial Times lists Personal Capital in its Top 300 RIA List.
  • iBe publishes study on customer experience in banking and fostering innovation.

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

  • Intelligent Environments to Enable Online Banking with Emojis Instead of Passwords

Around the web

  • KeyPoint Credit Union ($1 billion in assets) to deploy Architect Banking Solution from ACI Worldwide.
  • Misys welcomes Simon Paris, president and chief sales officer.
  • Wipro introduces its e-KYC solution based on its AI platform, Wipro HOLMES.
  • The 42 looks at Lending Club and Zopa in its feature on why people “should embrace P2P lending.”
  • EverSafe celebrates “World Elder Abuse Awareness Day” with its top tips to prevent elder financial exploitation.
  • Business Insider previews the looming competition between Stripe and Klarna as the former enters the Nordic market.
  • Pacific Life chooses GMC Inspire from GMC Software Technology to improve customer communication workflow.
  • IR Magazine highlights StockViews in a column on how innovations in fintech impact investor relations.
  • NerdWallet turns to Trulioo CEO Stepehn Afford on the topic of protecting small businesses from cyberthreats.
  • Renaud Laplanche of Lending Club wins spot among Glassdoor’s Highest Rated Small Business CEOs for 2015.
  • The Seattle Times profiles LendingRobot.

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

  • Klarna Hires former American Express Exec as New CCO
  • Knox Payments Offers Free, Premium Options and Easier API Integration
  • Finovate Debuts: A Look at Stratos’ Digital Card Issuance Platform

Around the web

  • PYMNTS.com looks at the launch of MasterCard’s MasterPass in Belgium.
  • Benzinga’s Jim Probasco interviews AlphaClone CEO Maz Jadallah on “investing like a hedge-fund billionaire.”
  • Adhil Shetty, founder and CEO of BankBazaar.com, comments on handling finances after a job loss in The Economic Times.
  • RIA Biz features BrightScope and its new plan to provide mutual fund data with the launch of Fund Pages.
  • SunGuard chooses Heckyl Technologies to provide sentiment and real-time news analysis for its MarketMap terminal.
  • A look at fintech innovation in Poland features mBank.
  • Management Today profiles Zopa CEO Giles Andrews.
  • Interxion partners with Microsoft Azure to enable users to connect directly to Microsoft Azure in the data center over a secure, high-performance private network.

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

  • SumUp Unveils New Financing of Undisclosed Amount
  • FinDEVr 2015: First Round of Presenting Companies Revealed
  • Ixaris Launches Initial Phase of Open Payment Ecosystem (OPE) Project

Around the web

  • Prosper to charge fee for investors who bundle loans into bonds.
  • Spreedly now supports third-party tokens.
  • US Bank signs five-year renewal for Fiserv digital payment suite, including CheckFree RXP, Popmoney, and TransferNow solutions.
  • LendingTree announces new CFO, COO, CTO, and CRO.
  • PYMNTS.com interviews Jonathan Hancock, TSYS director of fraud-management solutions.
  • Lending Robot launches new, default ‘fully automated’ mode, that allows users to set a risk profile on a slider bar.
  • Lending Club partners with nonprofit Opportunity Fund to feed loans rejected by Lending Club.
  • Backbase set to launch its first hackathon, 19/20 June 2015.
  • EuroNews features Kabbage, Lending Club, and On Deck.
  • Actiance launches Actiance Trusted Communities to enable companies to communicate with counterparts while meeting regulations.
  • Blackhawk Network to acquire Achievers Corp.
  • Global Debt Registry makes Account Extinguishment Reports (AERs) available free to consumers using its Debt Lookup service.
  • Top Image Systems Achieves Certification with PaperStream IP Image Enhancement Solution.

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

  • “PayPal’s Braintree Tapped to Turn Pinterest Browsers into Consumers”
  • “EyeVerify’s Partnership with Turkish Reseller Yields Vodafone Contract”
  • “U.K.-based TransferWise: Growth and Metrics Updates

Around the web

  • TradeHero updates mobile iOS app.
  • WSJ features how Venmo helps users instantly move money more cheaply.
  • Apple lists Xero among group of business apps Apple is using to market the iPad for use in business.
  • Indianapolis Business Journal looks at the rise of robo-advisors Betterment, Wealthfront, Hedgeable, and Motif Investing.
  • TSYS launches its Chip Card on Demand to help issuers make the transition through the October chip-liability shift.
  • Top Image Systems unveils its new mobile account opening and onboarding app, MobiENROLL.
  • Benzinga interviews Igor Gonta, CEO of Market Prophit, on the launch of his Twitter-based, social media, smart beta index.
  • Fox Business features Planwise, LendUp, Trulioo, Plaid, Wealthfront, TrueAccord, WePay, Flint, Lending Club, Prosper, LendingRobot, and FutureAdvisor in its roundup of “30 Hot Fintech Startups to Watch.”
  • New York Business Journal reviews its gamification strategy of PFM solution, Qapital.
  • Financial Times profiles LendUp and the “grubby end of U.S. debt.”

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.

$680 Million Raised by 29 Alums in Q1 2015

cartoonmoneystackThe biggest surprise in our look at first-quarter funding is that the $677 million amassed by 29 Finovate alums was more than 20% of the $3.2 billion invested in the entire worldwide fintech sector.

The $677 million raised was $85 million (+14%) above the same quarter a year ago, and more than triple the first quarter of 2013.

Q1 2015 was also $133 million above the $544 million mark set in the fourth quarter of 2014.

It will be worth watching to see if this record-setting first quarter for Finovate alum fundraising will be a sign of more great things to come for capital-raising in 2015.

Top 10 Overall Investments

  1. Xero: $111 million in February
  2. Coinbase: $75 million in January
  3. Betterment: $60 million in February
  4. TransferWise: $58 million in January
  5. App Annie: $55 million in January
  6. Ayasdi: $55 million in March
  7. Motif Investing: $40 million in January
  8. Ripple Labs: $30 million in January
  9. Bill.com: $50 million in February
  10. Pindrop Security: $35 in February

Previous Quarterly Comparisons

  • Q1 2015: More than $676 million raised by 29 alums
  • Q4 2014: More than $544 million raised by 25 alums
  • Q1 2014: More than $600 million raised by 8 alums
  • Q1 2013: More than $155 million raised by 14 alums

January: More than $275 million raised by 14 alums

February: More than $264 million raised by 8 alums

March: More than $136 million raised by 7 alums

If you are an alum that raised money in the first quarter of 2015, and do not see your company listed, please drop us a note at research@finovate.com. We would love to share the good news! Funding received prior to becoming an alum not included.

Day One at Bank Innovation 2015: A Focus on the Future of Fintech

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“That’s a word you use with your enemies.”

Ripple Labs CEO and founder, Chris Larsen, on the term “disruptor”

After two days at Bank Innovation 2015, I’m starting to believe that the fintech industry might be settling into, if not maturity, then at least a pretty responsible young adulthood. And it all has to do with the concept of disruption.

A few years ago, for example, a panel discussion among startups on the future of banking might have sounded very different from what I heard at Bank Innovation’s event in Seattle this week. My takeaways?

  • Startups are as interested, or even more interested, in working with financial institutions as they are in trying to replace them.
  • Startups recognize their limitations as emerging businesses in an industry with many incumbents.
  • Startups are aware that their innovations are the first step in a loop of experimentation and collaboration that involves technologists, financial professionals and consumers.

Doug Lebda, founder and CEO of Lending Tree, seemed to speak for many presenters when he insisted “we’re all in this together” during his fireside chat Monday morning. For all the talk of disruption and creating beautiful customer experiences in the tech world in general, today’s fintech startups begin their focus on the future with challenges as practical as reducing friction.

As Lebda put it when asked about the next innovation in the space by a member of the audience: “Ease of transaction. Period. Full stop.”
Fintech disruption: What’s your function?
That’s not to say that Bank Innovation 2015 was lacking in the old-fashioned, concept-from-another-planet, disruption department. Ripple Labs CEO and founder Chris Larsen’s offhand remark about micropayments between self-driving cars sent a palpable buzz through the room—and through Twitter at #BankInnovation15. But it was his lucidity on the role cryptocurrencies are likely to play in the real world that was worth the price of admission.

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Larsen’s vision is of an “internet of value” similar to the “internet of information” or “internet of data” that we have today. Cryptocurrencies will be key to this ability to exchange value, Larsen believes. But in the same way that the internet of information was built by institutions—from government to academia—the internet of value will be built not by consumers, but by what he called “custodians of value.”
“You don’t have to change the bank’s role or Visa’s role,” Larsen said. He sees Ripple as a “giant pathfinding algorithm for value exchange” that can improve on the current system of correspondent banking by providing financial institutions with real-time settlement, and “atomic,” “go/no go” transactions that are end-to-end traceable.

Startups help banks get better

Technology will always seek to deliver innovation faster than finance can integrate it, as nCino CEO Pierre Naude suggested in the conversation on the future of banking. Bitreserve CEO Halsey Minor added that there was a time when he “didn’t think banks would have to deal with innovation.”

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But to the extent that technology helps banks and other FIs become better at “core competencies” and reduce friction the more likely the relationships and collaborations are to be valuable for all involved.
In this way, financial institutions can serve as what iQuantifi CEO Tom White called “advice drivers” just as well as startups can prod FIs toward greater efficiency and serve as testing grounds for new approaches to everything from credit decisioning to customer engagement.
So if banks are getting back to basics of lending, payments and savings, as CBW Bank chairman and CTO Suresh Ramamurthi suggested, there are fintech startups helping make that happen. Alternative lenders are white-labeling products for FIs to sell to their customers, as Lending Club’s Andrew Deringer, VP, head of Financial Institutions Group, pointed out, opening up new cross-selling opportunities. Funding Circle co-founder and U.S. managing director, Sam Hodges, highlighted the “massive need for small business financing” and the role played by startups able to look at risk differently.

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This argument was echoed by Emmanuel Marot, CEO of LendingRobot who talked about the development of niche marketplace lending alongside new niche markets. All of it is helping move small businesses up the chain toward the kind of loans banks are interested in and able to profitably make.
It also is about providing better service, something that in the lending business goes all the way to the individual loan officer, as Lebda explained during his Fireside Chat session. “My best loan was when people came up and really talked to me,” he said in response to a question about emotional banking, a theme that would be heard more than once at Bank Innovation.
“This is the future,” added LendKey CEO and founder Vince Passione. “No more waiting. Not just shopping but getting it completed. Not just the coupon for the car. But the coupon for the financing.”
Finovate Alum Wins DEMOvation Challenge

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Congratulations to Tom White and the team from iQuantifi. iQuantifi took home Best in Show honors as part of Bank Innovation 2015’s DEMOvation event Tuesday morning. Also participating was authentication specialist and fellow alum, AuthenticID.
DEMOvation featured six companies,
with each providing a brief, eight-minute demonstration of its technology. Attendees voted for their favorites via Bank Innovation 2015’s mobile app. Read more about the DEMOvation challenge here.

More observations from Bank Innovation 2015 coming Friday.

Alumni News– February 25, 2015

  • Finovate-F-Logo.jpgFinovate Debuts: How Trunomi Shares Customers’ Personal Info while Maintaining Their Privacy.
  • LendingRobot adds Automated Secondary Market Trading.
  • Digital River wins the 2015 Merchant Payment Ecosystem Award.
  • PYMNTS looks at Credit Karma’s funding history and future plans.
  • Lincoln Savings Bank to Deploy CorePro from Social Money.
  • Verde International and Lending Club featured in PYMNTS column on banks and non-traditional loan decision-making.
  • Xero Raises $110 Million from Accel Partners, Matrix Capital.
  • CAN Capital and Worldpay partner to improve access to capital for SMEs.
  • Crain’s Chicago Business looks at Rippleshot and its plans for winning bigger clients.
  • ValidSoft launches its Device Trust solution with a second major UK bank.
  • Yelp Senior Vice President of Revenue Jed Nachman joins PaySimple Board of Directors.
  • Bluefin Payments partners with Infinite Peripherals, an mPOS device provider.
  • ProfitStars launches its Commercial Lending Center, a small business lending portal.
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.

LendingRobot Pulls in $3 Million to Boost Your Lending Club and Prosper Portfolios

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Yesterday, LendingRobot received $3 million in funding for its platform that helps individuals invest like pros on P2P lending sites, Prosper and Lending Club. Europe-based Runa Capital led the Series A round.

The new funding, plus the undisclosed amount received in a Seed round last April, brings LendingRobot’s total raised to somewhere north of $3 million.

The Washington state-based company plans to use the funds to add new features, enhance its prediction models, and accelerate growth.

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LendingRobot uses an algorithm to invest users’ available balance in their Prosper and Lending Club accounts to get them the best return.

How is this different from Prosper’s QuickInvest or Lending Club’s Automated Investing?

Think of it as Bid Sniper software for eBay-meets P2P Lending. Popular loans are funded seconds after they are posted on Prosper or Lending Club, usually by institutional investors or hedge funds with automated loan investing technology. By the time the average individual makes their investments, often times the best loans have already been snatched up.

Additionally, it offers its 1,000+ users more than 40 filtering criteria to insure their cash is being invested how they want.

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LendingRobot has no up-front fees, and manages users’ first $10,000 for free, after which it takes 0.45% per year.

LendingRobot was recently named a finalist in SWIFT Innotribe’s Startup Challenge.

We featured LendingRobot in our Behind the Scenes feature in May of 2014. Check out LendingRobot’s live debut at FinovateSpring 2014.