Finovate Debuts: Overbond Leverages Technology to Reimagine Bond Issuance

overbond_homepage_november2016

Leveraging the power of technology to make raising capital in the bond market easier and more efficient for large companies is the goal of Overbond, the Toronto-based startup launched in 2015. The firm’s technology enables companies to access both investor and dealer networks directly for the first time. CEO Vuk Magdelinic, co-founder, calls Overbond “a little bit like eBay meets Funding Circle.”

Even though bond-issuance is the “lifeline” of finance, Magdelinic notes that the processes and technology supporting this $2.6 trillion industry are far from state of the art. He said:

We talk with inside investors who tell us they are getting inundated with hundred-plus phone calls a week regarding new bond issues. Issuers have lost confidence [as to whether] they are getting the best price possible on their bonds. And regulators have caught on and said flat-out that the process isn’t competitive and transparent enough.

Overbond’s platform replaces a process that, in addition to being 50-years old, is manual, non-transparent, error-prone and costly for everybody involved.” By digitizing every step of the bond-origination process, Overbond provides all participants with transparent, digital price discovery, robust deal-execution workflow and “better relationships,” courtesy of the platform’s big data analytics, which scan and evaluate the universe of investors to make specific, predictive relationship-management recommendations.

At FinovateFall, Overbond debuted its proprietary digital price-discovery module. “It’s all about price discovery, ” Overbond co-founder and Head of Product Han Ryoo said while introducing the new feature live on stage. “We allow discreet channels for issuers, dealers and investors to express their interest,” he said, “and dealers are able to turn this interest immediately into orders.”

Company facts:

  • Founded in 2015
  • Headquartered in Toronto, Ontario, Canada
  • Raised $7.5 million in funding
  • Named one of KPMG’s Top 50 Emerging Global Stars in 2016, a Canadian Innovation Exchange Top 20 Company, and one of Paypal and Techvibes’ Fintech Five.

overbond_stage_ff16

From left: Overbond co-founders CEO Vuk Magdelinic and Han Ryoo, head of product, demonstrated their bond-origination platform at FinovateFall 2016.

overbond_vukmagdelinicWe briefly caught up with Vuk Magdelinic, CEO and co-founder of Overbond, at his booth during the networking session at FinovateFall 2016, and followed up via e-mail afterward. Here are his thoughts on the impact his company’s technology can make on the bond-origination process.

Finovate: What problem does your solution solve?

Vuk Magdelinic: The technology is aimed at making the primary bond-issuance process more digital, transparent, and secure. It reduces operational risk, market risk, and transaction costs for all involved parties.

Finovate: Who are your primary customers?

Magdelinic: Corporate and government fixed-income issuers, fixed-income dealers, and fixed-income investors.

Finovate: How does your technology solve the problem better?

Magdelinic: Overbond is the first fully integrated platform to connect corporate and government bond-market issuers, dealers, and fixed-income investors. It transforms a currently manual process into a digital process and simplifies all stages of bond origination through better relationship management, digital price discovery, and robust deal execution.

Key platform features include:

  • digital primary bond issuance workflow
  • digital supply-and-demand discovery
  • internal/external communication and relationship-management tools
  • advanced data analytics and charting
  • educational resources, documentation management
  • comprehensive issuer/investor/dealer directories

overbond_debut_art1

Pictured: Issuer Directory – The Overbond platform includes an issuer directory that allows you to directly contact issuers, dealers, and investors. It also includes a proprietary algorithm that provides users with “recommended” issuers, investors, or dealers to engage.

Finovate: Tell us about your favorite implementation of your platform.

Magdelinic: Our favorite technology implementation so far is the price-discovery module. It is the first of its kind in the world, and is designed to enable optimal bond pricing and robust deal execution. The module addresses the long-standing issue of price discovery—aka soft sounding—being one of the most inefficient manual components of the bond-origination process.

Instead of countless phone calls and emails, our price-discovery module allows dealers, issuers, and investors to share real-time expressions of interest in a private and secure format. Parties involved can comment, fully customize, and gain insights into inquiries using our proprietary analytics engine. Ultimately, the module allows dealers, issuers, and investors to better gauge the market and gain confidence with respect to deal execution.

overbond_debut_art2

Pictured: Deal Room – The Overbond platform includes an end-to-end workflow for executing bond issuances. Here you can see a bond deal from an investor’s perspective; it includes milestones, your order status, dealer chat functionality, and a summary of the deal.

Finovate: What in your background gave you the confidence to tackle this challenge?

Magdelinic: We are both fintech leaders with extensive capital markets experience. I have more than a decade of experience in capital markets and technology. Prior to founding Overbond, I worked as a risk and regulatory consulting manager with PwC, and led large digital transformations for Deutsche Bank and BNY Mellon. I also spent time working in fixed-income, structured products origination with CIBC, where I met co-founder Han Ryoo.

Han Ryoo, head of product, has more than 8 years of fixed income and fintech experience from CIBC World Markets, TD Securities, BMO Capital Markets, Barclays Capital and Plooto. In particular, Han specialized in corporate bond origination leading $30+ billion in deals for over 40 multinational corporations. Han gained experience in fintech by working as director of operations at the business payments platform, Plooto. However, despite our experience, the most important factor contributing to our confidence in tackling this challenge, is that we believe in the power of technology for efficient capital markets.

overbond_debuts_art3

Pictured: Supply Discovery – Using Overbond’s supply-discovery feature, dealers and investors can see their historical reverse inquiry activity as well as recommended issuers to engage. Dealers and investors can then generate reverse inquiries, send them to issuers, and monitor them through the platform.

Finovate: What are some upcoming initiatives from your company that we can look forward to over the next few months?

Magdelinic: Over the next few months, we have a pipeline of initiatives that we are incredibly excited about! Here are a few things to look out for:

  1. Cobi Intelligence Analyst: Currently in beta format, Cobi is an “intelligence analyst” that uses big data and machine learning to study data and construct algorithms that allow it to make predictions. Cobi was designed to assist all fixed-income participants with their decision making related to the primary bond-issuance process.
  2. Overbond Chat: Overbond Chat allows all fixed-income market participants to build and enhance relationships by establishing private, secure, easily accessible, and ongoing channels of communication among issuers, investors, and dealers.

Finovate: Where do you see your company a year or two from now?

Magdelinic: We see ourselves as the company spearheading the transformation of bond-issuance processes from legacy systems into a fully digital investment banking approach. We plan to drive a more transparent, secure, and efficient process that generates significant value to all stakeholders involved. We see ourselves as a global fintech leader in the primary bond-issuance space, and we plan to empower issuers, investors, and dealers to make more effective decisions with respect to bond issues.


Magdelinic and Ryoo demo the Overbond platform live in this video from FinovateFall 2016 in New York.

Finovate Alumni News

On Finovate.com

  • “D3 Banking’s Platform Goes Live at First Tennessee Bank”
  • “Finovate Debuts: Overbond Leverages Technology to Reimagine Bond Issuance”

Around the web

  • Zopa applies for U.K. banking license.
  • AGS Transact enters strategic alliance with ACI Worldwide, bringing its Universal Payments platform to the Indian market.
  • Wipro extends partnership with ASG Technologies to enhance compliance for financial services companies around the world.
  • iSignthis expands its reach into bitcoin industry as partner Coinify ApS announces new partnership with Blockchain.
  • NCR to deploy its Pulse Banking app for operation management at Germany’s Sparkasse Jena.
  • ShopKeep ranks 116 on Deloitte’s Technology Fast 500.
  • Standard Chartered launches personalized investment tool for affluent clients.
  • Ping Identity becomes a Workday Certified Solution Partner.
  • TechCrunch reports: CrowdFlower forms a three-person scientific advisory board.
  • Bitcoin wallet company Blockchain is beta testing a new in-wallet purchase-option in partnership with payments-startup Coinify.
  • Kony enhances its Mobility Platform with launch of “Nitro” omnichannel technology.
  • Interactions launches voice biometrics for seamless caller authentication within its Intelligent Virtual Assistant.

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

  • “FinovateAsia 2016: A Tale Told in Tweets”

Around the web

  • Vantiv to acquire Moneris USA for $425 million.
  • IBM to help Thailand’s KBank develop blockchain network to fast-track complex corporate credit processes.
  • Aerospike launches new version of platform designed for enterprise customer-engagement apps.
  • Wipro wins 2016 Customer’s Choice award in the IT Provider of the Year category of the Payload Asia Awards.
  • Bill.com introduces new digital payments solution, Bill.com Connect.
  • “Overbond Integrates Thomson Reuters Data Universe to Optimize Price Discovery”
  • MX to power financial data for Tyfone digital banking 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 Alumni News

On Finovate.com

  • Live Safe and Prosper: The Themes of FinovateAsia 2016

Around the web

  • Algomi partners with Euronext to develop corporate bond trading network.
  • Fiserv adds SAS endpoint protection from CrowdStrike to its cyber security suite.
  • Top U.K. mobile wallet Yoyo picked by Caffé Nero for its mobile payment and loyalty rewards program.
  • Avoka unveils new analytics module, Transact Insights, to support digital account opening.
  • New partnership with Swisscom enables Boku to provide carrier biting for users of Spotify.
  • Overbond integrates fixed-income market-data from Thomson Reuters.

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.

H2 Ventures and KPMG Unveil 2016 Fintech 100

h2_kpmg_2016fintech100

H2 Ventures and KPMG have released their Fintech 100 roster for 2016. Divided equally between 50 “industry leaders” and 50 “emerging stars,” the roster features 17 Finovate/FinDEVr alums in the first category, and 10 in the second. Calling its roster a “celebration” of the most compelling innovators in this “bold new space,” the H2 Ventures/KPMG 2016 Fintech 100 covers a variety of different shades of fintech:

  • Lending (32 companies)
  • Payments (18 companies)
  • Insurance (12 companies)
  • RegTech (9 companies)
  • Data & analytics (7 companies)
  • Wealth management (6 companies)
  • Blockchain (5 companies)
  • Digital currency (5 companies)
  • Capital markets (3 companies)
  • Crowdfunding (2 companies)
  • Accounting (1 company)

And here is a look at how Finovate/FinDEVr alums fared. Earning recognition among the companies in the Leading 50 group are:

Also noteworthy in the Leading 50 are Ant Financial, which acquired Best of Show-winning EyeVerify in September 2016, and Avant, which acquired Finovate alum ReadyForZero in the spring of 2015.

Additionally, Finovate/FinDEVr alums earning spots in the Fintech 100’s 50 Emerging Stars roster were:

The H2 Ventures/KPMG report includes a geographic breakdown of the 2016 Fintech 100, as well as a set of key takeaways such as increased geographic diversification, the return of lending, the continued ascent of Insurtech, and the appearance of RegTech. The report also notes that China now has four out of the top five companies in the report’s top 10, and eight companies in the top 50. The report says funding for fintech “continues to rise,” and its authors cite more than $14 billion in capital was raised by the Fintech 100 in the past year.

Finovate Alumni News

On Finovate.com

  • Kreditech Taps mBank Veteran Michal Panowicz to Lead on Products, Technology

Around the web

  • TransferTo partners with Eurogiro to enable mobile money transfers.
  • Sberbank and MasterCard launch Apple Pay in Russia.
  • AcceptEmail announces integration with Salesforce.
  • TransUnion unveils its Fraud Prevention Exchange.
  • PaySimple launches the first e-commerce platform for service providers.
  • Ethoca teams up with Lean Industries to improve dispute processing for card-issuing banks.
  • RealtyMogul.com announces 8% dividend payout for new REIT, MogulREIT I. Read more in our coverage about MogulREIT I.
  • Overbond wins spot in Canadian Innovation Exchange (CIX) 2016 Top 20.

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

  • NCR Unveils Business Banking Mobile App.
  • Inside Expensify’s New Concierge Bot.

Around the web

  • eFinancialCareers profiles Finovate newcomer, Overbond.
  • P2Binvestor wins finance and banking PowerBook award from Denver Business Journal.
  • Taulia tops one million mark for buyer-supplier relationships in its network.
  • Intellaegis announces new chairman, Mark Floyd.
  • Human Resource Executive magazine names PayActiv among its Top HR Products of 2016.

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.

FinovateFall Sneak Peek: Overbond

Overbond_homepage_August2016FF2016-Logo-wdate-largeA look at the companies demoing live to 1,500+ fintech professionals on 8/9 September 2016. Register today.

Overbond is an end-to-end digital bond-origination platform. Overbond brings all bond market participants together and makes primary bond issuance transparent and secure.

Features:

  • Secure communications channels
  • Real-time market data with custom reporting and analytics
  • Ultimate efficiency and transparency

Why it’s great
Overbond is transforming how global investment banks, institutional investors, corporations, and governments connect and access the fixed-income primary market.

Overbond_VukMagdelinicPresenters

Vuk Magdelinic, CEO and Cofounder
Magdelinic leads digital transformation programs at global banks. He has fifteen years experience in capital markets, management consulting, and technology (PwC, CIBC, Deloitte, Danaher); Ivey MBA; U of T—electrical engineering.
LinkedIn

 

Overbond_HanRyooHan Ryoo, Co-Founder and Head of Product
Ryoo has 8+ years of fixed income and fintech experience. Before Overbond, he specialized in corporate bond origination and led business development and operations at three startups.
LinkedIn

Finovate Alumni News

On Finovate.com

  • Persado Earns Top 20 Ranking in Inc. 500 Fastest Growing Companies List
  • Qumram Wins Swisscom Startup Challenge (Note: See Qumram demonstrate its technology in New York at FinovateFall 2016 on 8/9 September.)
  • HelloWallet’s New Feature is a Budget Within a Budget
  • Upserve’s New Square Partnership Offers Clients Access to Funding via Square Capital

Around the web

  • New partnership lets small businesses using Xero pay invoices using PayPal.
  • TSYS extends payments agreement with Swisscard.
  • The Muse features Persado on its list of “20 companies that want you to be happy.”
  • CRN lists MapD Technologies as one of 10 of the coolest big-data startups of 2016.

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.

Ready for a Sneak Peek? How to Best Prepare for FinovateFall

StageIMG

To give you a sense of the many new ideas at the upcoming FinovateFall conference in New York, we’ve launched our Sneak Peek series. Eight companies are featured each week leading up to the 8/9 September event (tickets now available).

In the meantime, here is a quick summary of the 66 announced companies (six more are in stealth mode). It’s a lot to take in; pace yourself!

  • Agreement Express offers an an end-to-end platform that helps traditional financial institutions automate labor-intensive parts of the customer onboarding process to remain compliant while quickly opening customer accounts.
  • Aleo’s marketplace uses e-procurement, e-commerce and supplier financing bundled in a single open platform to offer small and medium enterprises an online procure-to-pay solution.
  • AutoGravity’s mobile-first digital marketplace helps digitally minded customers, looking to buy and finance a vehicle, circumvent the inefficiencies of the auto-financing process by leveraging the full potential of their smartphone.
  • Avoka’s customer-acquisition platform integrates multiple fintech services to help banks, wealth managers and insurers use mobile and digital channels to onboard customers.
  • Backbase offers 60-second onboarding for financial services companies to accelerate customer acquisition with a simple, fast, and seamless omnichannel onboarding journey.
  • Bankjoy offers developers a banking API for a modern, real-time, holistic interface for credit unions and community banks.
  • Bitbond’s automated, international credit-scoring mechanism compares small business-loan applicants from different countries by using machine learning and data from the applicant’s business accounts.
  • Bluescape offers large financial services companies a highly interactive, visually collaborative platform that uses real-time, cloud-based architecture that’s ultra-scalable, all-capturing, and accessible anytime from any device.
  • BondIT offers financial advisers and portfolio managers a data-driven solution that uses machine learning advanced algorithms to manage fixed-income portfolios and solve optimization challenges.
  • brandCrowder has developed an alternative investment platform focusing on branded franchises. It leverages 45+ years of franchise-operations experience to help retail investors finance franchises, helping to bring them to market quicker.
  • Clinc’s mobile, voice-activated personal financial adviser uses artificial intelligence to help consumers get answers to financial questions and tasks.
  • Consdata offers banks and financial institutions a comprehensive platform for e-form management and customer-communication complexities.
  • Currencycloud’s dedicated API services use intelligent APIs to help businesses with the cost, limitations, and boundaries of existing payment infrastructure.
  • Daon bridges convenience and security by offering financial services companies a mobile biometric authentication platform that turns a smartphone into a mobile capture device.
  • Divy’s app and social investing community uses an approachable interface and engaging content to help first-time and emerging investors access direct marketing and financial literacy material.
  • Dynamics offers issuers and their cardholders interactive payment cards and an authorization-based, real-time loyalty processing system.
  • ebankIT’s platform offers financial institution clients an omnichannel experience.
  • Econiq’s Conversation Hub uses color-coded conversations to help bank and insurer frontline staff, and operational management and executives avoid disconnected customer conversations in branches and contact centers.
  • Envestnet | Yodlee offers millennials a solution for measuring financial health and promoting a healthy financial lifestyle.
  • Experian CrossCore is a single platform that helps manage customer identities, fraud-prevention tools, workflows and decision strategies in an easy-to-use and scalable format.
  • EyeVerify’s Eyeprint ID offers banks and other financial services companies eye biometrics via smartphone cameras for convenient, secure and private authentication.
  • Featurespace’s ARIC Engine helps financial services clients spot and prevent fraud attacks in real time using adaptive behavioral analytics.
  • Finicity offers an API for companies to build financial apps.
  • Fiserv helps financial institutions enable social finance by providing customers access to a safe, collaborative bank-secured social funding product.
  • Full Profile uses the blockchain and smart contracts for real-time settlement and reporting of physical agri-commodities to help farmers, buyers, banks and government counter party and credit-risk exposures.
  • FutureVault’s cloud-based filing cabinet helps financial service providers and their clients organize asset documents and accounts using a secure, structured and collaborative B2B2C cloud environment.
  • GainX’s SaaS platform uses decades of market research and leading-edge technology to help large financial institutions overcome innovation and adaption failures.
  • GoodData helps large banks, credit-card processing and insurance companies commercialize and monetize their data using a scalable, manageable and secure platform that is exclusively designed for data products and embedded analytics.
  • iBank Marketing offers millennials a multifunction digital wallet to help them achieve personal goals around life events by using its local eco-system that bridges consumers and small- to medium-sized enterprises.
  • identitii uses tokens and blockchain to help financial institutions with KYC, CTF and AML compliance using an information layer over legacy systems.
  • InSpirAVE’s social e-commerce platform curates advice and financial support from the user’s friends and family, financial institutions, and merchants. It helps multiply savings, for big-ticket purchases for customers who otherwise may not be able to afford them, by placing important goals for life’s special moments within reach, without the crushing burden of debt.
  • KORE’s platform transforms enterprise applications, online banking and mobile apps into personalized, conversational engagements to help financial institutions meet customer-experience expectations using the power of bots and simplicity of messaging.
  • LendingFront’s lending platform leverages a cloud-based system that furnishes small businesses with capital using their cashflow data.
  • Lidya offers African small- to medium-sized enterprises access to finance using online receivables-based lending and proprietary credit scoring.
  • Liferay’s Digital Experience offers banks a richer understanding of customers by orchestrating personalized customer experiences.
  • M1 Finance places assets held in low-yielding cash accounts into an asset-linked bank account and intuitive investment platform.
  • MapD’s Immerse helps quantitative hedge fund and asset managers query datasets with billions of rows in real-time by applying the parallel processing power of GPUs to the challenges of databases, visualization and analytics.
  • MarketX’s cross-border investment platform helps international investors with the lack of liquidity for U.S. startup shares and limited access to U.S. pre-IPO investment opportunities.
  • ModoPayments offers financial companies a digital payments hub to connect disparate sources of value to diverse destinations using Modo’s COIN technology.
  • Moonraft Innovation Labs helps banks innovate and evolve by rapidly adapting to changing market needs using Catamera, its unique customer experience delivery framework.
  • Moven’s growing platform reaches the millennial, mobile first, digital native audience by bringing banking (specifically savings) into the moment.
  • MX helps financial institutions become true advocates for their account holders by using analytics to power a revolutionary category of data-driven money management.
  • nanoPay offers a payments and loyalty solution for merchants.
  • Overbond’s digital platform offers transparency, efficiency, and liquidity in the fixed income market for corporate issuers, investors, and dealers.
  • Personetics offers financial services providers a digital personalization platform that uses real-time, ultra-scalable predictive analytics to keep customers engaged in the digital age.
  • ProActive FinTech uses a phone app and debit card featuring unlimited mini bank accounts and pre-purchase categorization to help millennial moms with cash-flow management.
  • QE Data offers commercial banking systems a real-time predictive model for net cash-flows that uses machine learning, rich visualization, speedy deployment and real-world banking experience.
  • Qumram uses 100% real-time, video-like recording of every mouse movement, keystroke and button click to help financial services organizations with compliance and transparency issues relating to digital business.
  • RightCapital’s financial and tax-planning platform helps advisers deliver unbundled, quality financial planning and tax-planning services. It works to efficiently and digitally help consumers with the lack of viable business and technology solutions.
  • SaleMove offers financial institutions a live engagement platform to help sell and service complex financial services products online. The platform uses instant video chat and guided browsing with no downloads or installations.
  • Sindeo’s self-directed consumer rate quote and prequalification tool simplifies home financing and refinancing using an integrated platform that offers consumer, real estate partner, and adviser tools that conform to CFPB regulation and ensure a simple and easy consumer experience.
  • SpeechPro’s customer onboarding solution offers multichannel access to help CTOs, developers and other technologists focus on KYC, identity and verification.
  • Swych’s mobile gifting platform offers gift-card recipients a better way to buy, gift, and manage gift cards.
  • Tango Card’s RaaS API 2.0 uses simple-yet-complete delivery technology and domain expertise to help enterprises deliver incentives efficiently and effectively.
  • TokBox’s Financial Services Accelerator Pack offers banks and financial organizations secure and easy-to-embed, real-time communications technology.
  • TransUnion’s interactive data-visualization solution uses big data and analytics to connect and interpret consumer financial data for lenders.
  • Trulioo’s GlobalGateway uses traditional and cyber ID data sources to offer banks, financial services providers, and online marketplaces secure access to reliable, global data sources for instant ID-verification.
  • Trusona’s anti-replay and TruToken technology offers an insured identity platform for sensitive assets.
  • Unbill’s API enables companies to offer bill pay in their app or technology platform without complicated integration or high costs.
  • Uniken’s REL-ID, a card-not-present approval solution, uses mobile API tool kits and DMZ software appliances to help enterprises secure mobile communications.
  • Urban FT’s enhanced, white-label digital banking platform gives financial services organizations, wireless carriers, and other consumer-facing organizations a long-term, competitive advantage that makes their brand integral to customers’ daily financial and online social activities, financial tools, and social features.
  • Xentral Station’s supply-chain funding app helps vendors of all sizes receive cash for trade financing within 24 hours.
  • Zenmonics uses a single, common platform to help banks and their customers minimize friction in customer engagement with channelUNITED.
  • Zooz offers an agnostic, cross-border payments platform to help merchants act on payment processes and save money to maintain their client base.

Stay tuned on the blog for more detailed descriptions. And don’t forget to register now to reserve your spot.