Finovate Alumni News

On Finovate.com

  • Coca-Cola Credit Union Chooses Bankjoy as New Mobile Banking Partner.
  • What’s in it for Me? Real Estate Investment Technology: A comparison of Realty Mogul, CK Mack, Patch of Land, and other real estate investment platforms.

Around the web

  • GMC Software announces new partner advantage program.
  • Uniken appoints Nishant Kaushik as Chief Technology Officer.
  • i-exceed earns Gartner Magic Quadrant recognition as notable vendor in Asia Pacific for mobile app development platforms.

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

  • Pindrop Receives Investment from Cisco’s John Chambers.
  • SecureKey Wins Funding to Build Blockchain Digital Identity Network.

Around the web

  • Wealthify publishes first-year performance data, reporting benchmark-beating returns for customer plans.
  • RealtyMogul.com opens its MogulREIT I fund to IRA investments.
  • Best of Show winner CREALOGIX named one of the “10 Swiss growth champions” by Swiss economic newspapers. [in Swiss]

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.

Why PropTech and MortgageTech Are the Future of Fintech

If this is the first time you’ve heard the term proptech, it won’t be the last. Proptech (also known as real estate tech or REtech) and its subset mortgagetech have been around since 2014. Here’s why 2017 is poised to place proptech among the ranks of wealthtech, insurtech, regtech.

This year has already been favorable to mortgagetech and proptech companies. SoFi, for example, is about to close a massive, $500 million round, its competitor LendingHome topped $1 billion in mortgage loan originations last year, and RealtyShares has seen over $300 million raised on its platform. According to CB Insights, since 2012 the real estate technology sector has closed 817 deals worth $6.4 billion. Of that amount, $2.6 billion closed in 2016 alone, which represents a 40% increase from that sector’s funding in 2015.

In the U.S., there are a handful of reasons 2017 will be favorable to real estate. Interest rates are projected to rise for the second time, millennials are starting to buy their first homes, and investors are looking to diversify out of the volatile stock market. On top of all of this, regulations are slated to loosen under the Trump administration, and changing in regulation brings opportunities for innovation.

Players

The broader category of proptech can be broken down into four basic segments.

1- Mortgagetech
These are mostly B2B companies specifically focused on facilitating part of all of the mortgage application process. They do not lend or service the loan.

2- Digital mortgage lending companies
These online lenders facilitate the mortgage application process and service the loan.

3- Real estate investment tech
Companies in this category are focused on the investment aspect of commercial and residential real estate.

4- Pure property plays
These don’t have a fintech angle but play a role in the broader proptech industry. Since this category is out of scope for this blog, this list only encompasses a fraction of companies in this category. Check out CB Insights’ coverage of commercial real estate technology for more.

What’s ahead in 2017

  • Expect to see more mortgagetech-bank partnerships along the lines of Roostify’s recent deal with JP Morgan Chase. As banks try to gain a competitive edge for market share, more established banks will need to leverage mortgagetech offerings.
  • We’ll see more niche alt-lending solutions such as SoFi that facilitate the application process and save borrowers on closing costs.
  • Expect to see more players offering real estate investment technology, coupled with some consolidation in real estate crowdfunding companies.
  • Outside of fintech, we’ll see more platforms aimed at cutting out the middle person, the realtor; and more business models such as Knock and GoldenKey that make the selling process easier.

You don’t have to take my word for it

We posed the question, How do you see proptech/ mortgagetech growing in 2017? to these Finovate alums working in the space. Here’s how they responded:

BhatRajesh Bhat, CEO and cofounder of Roostify:

“We expect to see further widescale adoption of digital mortgage solutions – to the point where one should expect it to be table stakes in 2018. We should also expect to see more players emerge in the space as investors see larger market adoption and validation.”

 

Screen Shot 2017-02-23 at 9.52.53 AMLinda Schicktanz, Chief Advisor of CK Mack*:

“If there is one area ripe for fintech innovation, it’s real estate investing. Why put 30% down just to gain massive management headaches when you can now invest in rental cashflow online with very similar returns? Fintech and Real Estate are like peanut butter and jelly, they just go together!”

Screen Shot 2017-02-23 at 8.30.31 AMNima Ghamsari, cofounder and CEO at Blend:

“There is going to be an explosion in the use of data driving the mortgage process in 2017. Both Freddie Mac and Fannie Mae have announced their data initiatives toward the end of 2016, and lenders are starting to push consumer financial data aggregation into the core components of their customer experiences. This ties in nicely to the industry-wide push forward to a more digital, end-to-end process that started in 2016.”

Screen Shot 2017-02-24 at 4.07.54 PMJilliene Helman, CEO at RealtyMogul

“The impact of digital technology on the real estate industry and mortgage technology is still in its infancy, but I see both less experienced and more sophisticated investors, alike, moving toward a process that takes place entirely online. With over $250 million of capital invested and 100,000 registered investors on the platform, RealtyMogul.com is a testament to this change. The more that technology can offer real estate borrowers and lenders transparency, as well as the efficiency of process and convenience, the faster both sides will adapt.”


*Full disclosure: I’m related to Linda Schicktanz. Yup– she’s my mom.

Finovate Alumni News

On Finovate.com

  • “Finovate, FinDEVr Alums Earn AWS Financial Services Competency Status”

Around the web

  • FIS and Trunomi team up to build a data protection solution to help FIs comply with new EU regulations.
  • PYMNTS.com looks at Concur and its partnership with China DataCom Corporation.
  • Comarch to integrate EyeVerify into its Smart Finance and Corporate Banking solutions.
  • FinDEVr alum Symbiont hires Dr. Lisa Yin as new chief security officer and chief cryptographer.
  • D3 Banking adds more than a million users to its digital banking platform.
  • Hypepotamus interviews CTO Amala Duggirala, Kabbage’s new chief technology officer.
  • Cachet Financial Solutions develops new prepaid banking platform for CereTel.
  • Tuition.io wins 2016 Best In Biz Awards.
  • Financial Brand: Moven promotes financial health with ‘Smart Savings Account’
  • RealtyMogul.com unveils new lower minimum of $1,000 for investment in its online REIT, MogulREIT I.
  • Business Standard profiles MarketsMojo and its algorithm-based approach to stock market analysis.

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

On Finovate.com

Around the web

  • RealtyMogul.com surpasses $50 million milestone in distributing returns and principal to investors.
  • Roostify teams up with Equifax to ease and accelerate mortgage-decision processing.
  • FinDEVr alum Worldpay launches new, omnichannel payment platform, Worldpay Total.
  • Modo Payments to provide Bank of America Merrill Lynch with access to its COIN Operated Digital Payments Hub as part of new strategic relationship.

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

  • 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.

 

RealtyMogul.com to Raise $50 Million with New REIT, MogulREIT I

RealtyMogul_homepage_August2016

Real estate crowdfunding for the retail investor? The new, non-trading REIT (real estate investment trust) launched by RealtyMogul.com is designed to provide just that. Called MogulREIT I, the REIT takes advantage of Regulation A+ in Title IV of the JOBS Act and will be used by RealtyMogul.com to raise up to $50 million. Most interestingly, unlike the crowdfunding platform itself, nonaccredited investors will be able to invest in MogulREIT I.

“We’ve made it our mission to introduce a fair and simple way to invest in real estate,” CEO and founder Jilliene Helman said in a video explaining MogulREIT I. “The launch of our REIT is another step towards making real estate investing accessible for more and more people across the country.”

MogulREIT I is built to provide investors with consistent cash distributions as well as capital preservation and appreciation. The REIT charges no sales commission, and only a 3% organization and offering expenses fee (typically, for non-traded REITs, these sums are 7% sales commission and as much as 15% in organization and offering expenses.) The savings come courtesy of RealtyMogul.com’s decision to directly offer the REIT via its own website “eliminat(ing) the traditional, manpower-intensive distribution channels and the high expense load that comes with them.”

The REIT invests in apartment buildings, industrial parks, office complexes, retail centers, and self storage facilities. No “ground-up construction or land development” properties will be invested in by the REIT, which pledges to rely on established and experienced real estate companies and professionals, as well as communities “with strong economic fundamentals.” Funds can be withdrawn on a quarterly basis and the minimum investment is $2,500. Read the offering circular for more information.

Founded in 2012 and headquartered in Los Angeles, California, RealtyMogul.com demonstrated its crowdfunding tool for real estate at FinovateSpring 2014. More than 80,000 individual investors have joined RealtyMogul.com since its inception, with more than $200 million in debt and equity invested through its platform. Investors have received more than $40 million in payouts.

Finovate Alumni News

On Finovate.com

  • TransferWise Launches TransferWise for Business to the Public
  • RealtyMogul to Raise $50 Million with New REIT, MogulREIT I

Around the web

  • ACI Worldwide integrates Ethoca Alerts into its UP eCommerce Payments solution.
  • Trulioo announces enhancements to the global AML watchlist capabilities of its GlobalGateway platform.
  • Realty Mogul launches REIT investments.
  • Two credit unions select Fiserv’s OnCU for core account processing.
  • Payoneer releases automated tax-form service to its mass payout offering.
  • D+H brings on 100+ new lenders to its MortgagebotLOS solution after signing reseller agreement with DocMagic in October of 2015.
  • FT.com looks at Quantopian in a feature on DIY algorithmic trading.
  • Jumio VP of Product Philipp Pointner writes about digital ID verification in AltFi News.

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.

Realty Mogul Reaches $200 Million in Funded Real Estate Transactions

RealtyMogulHomepage

Commercial real estate crowdfunding platform Realty Mogul today announced it has exceeded $200 million in funded equity and debt transactions on its platform.

Launched in 2013, the California-based company has thus far returned $40 million in interest and principal to its 80,000 members who have invested in 350 properties. The return is 2X the $20 million figure the company reported in December 2015.

Realty Mogul’s CEO Jilliene Helman says the goal has always been “to democratize commercial real estate by enabling a new generation of investors to participate in real estate opportunities that were historically difficult to access. She added that reaching the $200 million mark “shows we’re continually following through on this goal and growing as a company.”

CTO Justin Hughes, co-founder, presented at FinovateSpring 2014, where he demoed the company’s online marketplace that matches commercial real estate borrowers with a group of accredited investors. The investor dashboards enable investors to standardize, streamline, and monitor their investments.

In today’s release, Realty Mogul compiled the following infographic that offers further details about its investor base:

RMInfographic

Finovate Alumni News

On Finovate.com

  • “Social Trading Company ayondo Appoints New CFO Prior to Reverse Takeover IPO”
  • “Ignite Sales Taps Ex-Fiserv SVP as New CEO”
  • “VoicePIN Launches New SaaS Model for SMEs”
  • “Realty Mogul Reaches $200 Million in Funded Real Estate Transactions”

Around the web

  • Markit adds Federal Republic of Germany to derivatives trade-management service.
  • FIS introduces Banking by Appointment with TimeTrade.
  • Zopa partners with UNSHACKLED.com to offer cell phone financing.
  • RegTech event sponsored by BBVA features presentation by Ayasdi.
  • Infosys wins five-year contract with Commerzbank.
  • Temenos welcomes new core banking client, BMO Asia Pacific.
  • Fiserv adds ten years to its loan processing, private-label credit partnership with John Deere Financial.
  • Buzz Points and Xtend partner to provide new loyalty rewards program to credit unions.
  • Bloomberg features TradeSafe, a distributed ledger from Standard Chartered and DBS Group that uses Ripple.
  • eSignLive unveils new UX featuring responsive design.
  • TechCrunch column on APIs features Signifyd, Plaid, and Twilio.
  • The Law of Startups interviews B.J. Lackland, Lighter Capital CEO.
  • WorkFusion earns recognition from Gartner in its “Cool Vendors in Smart Machines” 2016 report.
  •  Guardian Analytics introduces a certification program to help fraud examiners become familiar with the Guardian Analytics platform.
  • Crowdfund Insider interviews Emmanuel Marot, LendingRobot CEO.
  • Comarch launches prototype of wealth management app for virtual reality.

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.

More Than 30 Alums Make Hot Topics 100 Most Influential People in Fintech

HotTopics_Fintech100_2015

If you drew up a list of the 100 most influential men and women in fintech, how many of them would be alumni of our Finovate/FinDEVr conferences?

The answer is about a third, according to Hot Topics, which released its list of the top 100 fintech influencers this week.

“More transactions taking place online mean more opportunities to help consumers manage their money in digital form: enter the fintech platforms,” wrote Joel Watson for Hot Topics. “Whether it be securing mortgagees, getting a loan, transferring money abroad, spending money in an ecommerce store, or one of a thousand other applications, the marketplace is fiercely competitive and growing all the time.”

See if you agree with who made the cut, who was overlooked, and who deserves at least an honorable mention.

Hot Topics is an online community of more than 300 entrepreneurs, corporate executives, venture capitalists, journalists, bloggers and other professionals interested and involved with technology.

 

Finovate Alumni News

On Finovate.com

  • “LoopPay-powered Samsung Pay Launches

Around the web

  • MSN Money interviews Betterment CEO Jon Stein on the relationship between Baby Boomers and robo-advisors.
  • Xero announces plan to help SMEs get bank loans.
  • Jessica Ellerm talks with Mitchel Harad, SocietyOne CMO.
  • Discussion on multifactor authentication features insights from Thomas Bostrom Jorgensen, CEO of Encap Security.
  • Fox News looks at Realty Mogul in a feature on real estate investing for non-millionaires.
  • Blackberry selects PayPal for its P2P Payments provider.
  • ThreatMetrix appoints Armen Najarian as chief marketing officer.
  • Team One Credit Union and Mshift expand pilot tests of MShift’s AnyWhereMobile by bringing more merchants on board.

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.