Raising Roostify: Santander InnoVentures Leads Expansion Round

The fintech venture capital fund of Santander Group, Santander InnoVentures, is putting its money where its mouth is when it comes to its support of mortgagetech. The VC fund is leading an expansion round for digital mortgage lending platform Roostify, following up on its initial investment in the company back in February 2018.

The amount of the round was not disclosed. Before this week’s announcement, Roostify’s total funding was estimated by Crunchbase at $33 million. The capital raised in this latest round will be used to support the company’s expansion into overseas markets in the U.K. and Europe, as well as a continued build-out of Roostify’s cloud-based lending platform. This includes enhanced decision-making and fulfillment capabilities, new data and machine learning tools, and more consumer lending solutions.

This latest funding for Roostify comes as the company announces monthly loan volume that has doubled over the past twelve months to nearly $20 million a month. The company notes that its bank customers have reported reductions in mortgage lending process time by an average of 20%.

“Digital transformation is a key strategic priority for banks worldwide, and industry-leading lenders are focused on delivering the best customer experience while managing costs,” Roostify CEO and co-founder Rajesh Bhat said. “The Roostify lending platform enables lenders to realize up to 300% growth in loan applications and a significant reduction (in) origination costs. The future is frictionless, everyone benefits when you optimize the lending process.”

Roostify demonstrated its lending platform at FinovateSpring 2018. The San Francisco, California-based company, founded in 2012, has forged a number of partnerships this year, teaming up with Glacier Bancorp in January, partnering with MORTECH and Docutech over the spring, and collaborating with HSBC Bank this summer. Earlier this month, Roostify’s Bhat was recognized by Goldman Sachs as one of its Top 100 Most Intriguing Entrepreneurs at the investment bank’s Builders + Innovators Summit.

Finovate Alumni News

On Finovate.com

  • Fiserv Unveils its Intelligent Billpay Service, CheckFree Next.
  • Kabbage Joins the Small Business Payments Processing Party.
  • Raising Roostify: Santander InnoVentures Leads Expansion Round.

Around the web

  • Backbase teams up with Payveris to bring integrated digital payments and money movement solutions to FIs.
  • TransUnion appoints communications and IT services veteran Mike Davies as UK Chief Operating Officer.
  • Danish challenger bank Lunar chooses financial crime mitigation technology from Temenos.
  • Finn AI announces expansion of its partnership with Visa beyond Canada.
  • Revolut opens up new offices in Singapore.
  • myGini successfully completes PCI Level 1 compliance audit.

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

  • Low Code Innovator OutSystems Inks Partnership with Yorkshire Building Society.
  • OnDeck’s ODX to Power Digital Loan Origination for Investors Bank.
  • IdentityMind Teams Up with Acuant to Boost Identity Proofing.

Around the web

  • Columbus, Ohio partners with PayNearMe to enable cash payment for multi-modal transportation.
  • RSM Australia moves its tax and compliance work onto the Xero platform.
  • Finicity announces collaboration with American Financial Resources to streamline the asset and income verification process during loan origination.

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.

Roostify Teams Up with HSBC Bank USA

The new digital home lending experience from HSBC Bank USA, a division of HSBC Group, will be powered by mortgagetech innovator, Roostify. The new offering is designed to provide borrowers with a mortgage loan transaction journey that has less stress and friction and more ease of use.

HSBC Bank’s solution will provide borrowers with a streamlined application and fulfillment process for both new home buyers and those looking to refinance. Mortgage customers will be able to submit loan requests online and securely share documents digitally. The platform gives borrowers transparency into the entire process, enabling them to track their loan status in real time from application through closing. The technology is integrated into HSBC’s loan origination system to make it easier for lenders and borrowers to communicate and exchange information.

“HSBC has been a great partner in driving innovation to improve their customer experience,” Roostify co-founder and CEO Rajesh Bhat said. “Information exchange is a vital part of the home buying experience, and it can be a game-changer when done right. This solution provides HSBC’s customers with a modern, improved way of applying for and closing a mortgage, and delivers transparency to both the customer and lending team from start to finish, for an optimal experience.”

Head of Mortgage, Retail Banking and Wealth Management for HSBC Bank Raman Muralidharan underscored the role of digital in helping the firm pursue what he called “customer experience-led growth.” He pointed out that mortgage customer increasingly want a lending experience that mirrors the other digitally-oriented financial experiences in their lives. Muralidharan credited Roostify for delivering a solution that “provides a superior experience to our customers and to our mortgage consultants.”

Roostify demonstrated its digital lending platform at FinovateSpring 2018. The company began the year teaming up with Glacier Bancorp, a $11.9 billion regional bank serving customers in the Mountain West and Pacific Northwest. This spring, Roostify partnered with mortgagetech solutions provider Mortech, combing its platform with Mortech’s product and pricing engine (PPE). Last month, the company announced that it had completed its integration with e-document signature and print fulfillment company, Docutech.

Founded in 2012, Roostify has raised $33 million in funding from investors including Cota Capital and USAA. We featured the San Francisco, California-based company in our Earth Day look at fintechs whose technology helps support a greener environment.

Finovate Alumni News

On Finovate.com

  • SheerID Launches Instant Student Verification in 190+ Countries.
  • HooYu and NatWest Collaborate to Offer Account Opening By Selfie.

Around the web

  • Flywire partners with Student Loan Company to provide additional payment options for SLC’s overseas customers.
  • CREALOGIX announces the departure of CFO Philippe Wirth, who has served in this capacity since April 2017.
  • Ascend FCU ($2.5 billion in assets) to deploy Jack Henry & Associates’ Symitar Episys platform.

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.

On Earth Day (and Every Day) Paperless is the Way to Be

Today is Earth Day, and what better way to celebrate than to take a look at fintechs helping out the environment by promoting eco-friendly habits. Here we feature companies with technology that saves trees by reducing the amount of paper used in the industry.

We’ve rounded up a handful of environmentally friendly fintechs in three categories: digital invoicing, paper-free mortgages, digital receipt printing, and paperless onboarding.

Digital invoicing

By taking the invoicing process digital, small businesses not only save paper, they can also save time and potentially receive payment faster, freeing up working capital they can put back into their operations.

  • Paper.id provides SMEs with invoicing tools and payment integration. The company offers tools to help businesses issue their invoices digitally and receive payment via electronic payment methods. Paper.id demoed at FinovateFall 2018
  • Charlie-India’s Invoicing Hub is a white label e-invoicing platform for banks and service providers. The tools allow SME bank clients to send, view, process, and pay their invoices within the bank’s online interface. Charlie-India demoed at FinovateEurope 2018.
  • Tradeshift offers an e-invoicing service that connects companies with suppliers, customers and partners. Among the applications available on the platform are e-invoicing, electronic purchase orders, and automated document validation. Tradeshift demoed at FinovateEurope 2012.

Paper-free mortgages

Mortgage technology is one of the last frontiers in fintech. Regulation and oversight have made the home-buying process somewhat resistant to disruption. In the past few years, however, we’ve seen a handful of startups working to digitize the mortgage process, removing the need for hundreds of sheets of paper required to close a home loan.

  • Namaste Credit is an India-based startup that serves as an online marketplace for mortgage loans. The service connects borrowers with relevant lenders to help them find the loan that best suits their circumstance. Namaste Credit demoed at FinovateFall 2018.
  • Tavant Technologies offers VELOX, a suite of digital products ranging from searching for a home to closing on the loan. VELOX completely automates the process, making compliance more efficient and reducing the need for paper. Tavant Technologies demoed at FinovateSpring 2017.
  • Roostify seeks to give consumers a better way to find and purchase a home. The company’s digital platform offers everything from digital customer onboarding to transparent, digital fulfillment to help lenders offer their clients a more efficient mortgage borrowing experience. Roostify demoed at FinovateSpring 2018.h

Digital receipt printing

Many retailers ask customers if they want to keep their receipt, but even if the answer is “no” the cashier still prints the receipt and throws it in the trash behind the counter. Digital receipt printing eliminates both the paper– and the awkward line of questioning– all together by sending the customer an email receipt.

  • Dream Payments’ cloud-based platform offers a mobile POS device that not only accepts debit and credit cards, but also provides analytics, reports, and gives customers digital receipts. Dream Payments demoed at FinovateSpring 2015.
  • CardFlight offers an API that allows merchants to accept online and offline payments within their own app. The company’s encrypted mobile magstripe reader, combined with its API, offer flexibility while keeping payments– and receipts– digital. CardFlight demoed at FinovateSpring 2013.
  • ShopKeep’s POS technology takes a merchant’s cash register to an iPad. The register accepts a range of payments, from magstripe, to EMV, to Apple Pay; plus provides inventory management tools and purchase reporting analytics. The company’s mobile checkout flow also offers a paper-free, email receipt option. ShopKeep demoed at FinovateFall 2012.

Paperless onboarding

Considered a must for millennials, paperless onboarding not only speeds up the application process, it also reduces errors, eases compliance, and eliminates the need for in-person bank visits.

  • Five Degrees specializes in core banking technology. The company’s Matrix offering helps banks provide SMEs a fully automated, paperless loan onboarding experience. The paperless process lowers cost for both parties while expediting funds. Five Degrees demoed at FinovateAsia 2017.
  • Quadient, formerly GMC Software, helps organizations create a better customer experience. The company’s Mobile Advantage solution is an omni-channel tool that offers digital statements and billing, paperless onboarding, and client e-signature. In addition to improving the customer experience, this combination speeds up workflows and reduces error. Quadient demoed at FinovateFall 2017.
  • Mitek combines digital onboarding with identity verification tools. The company helps banks authenticate an applicant’s ID document and combines this with additional identifying paperwork. The supplemental documents not only verify the customer’s identity, but also provide additional information that can be used in loan underwriting to create a more complete picture of the applicant’s financial state. Mitek demoed at FinovateFall 2017.


Finovate Alumni News

On Finovate.com

  • Capsilon and Blue Sage Drive Automation in MortgageTech.
  • Tandem Chooses Token as PSD2, Open Banking Partner.
  • Yes, Banks Can Compete with Apple’s New Credit Card.

Around the web

  • TurnKey Lender launches psychometrics for credit decisioning.
  • Xero partners with Aussie government’s digital change project.
  • Avaloq 2018 revenues rise to $582 million, a 6% YoY rise.
  • HarborOne Bank selects Baker Hill to provide direct and digital marketing services
  • Affinity FCU selects Digital Onboarding for automated new account activation.
  • Zillow’s Mortech partners with Roostify to improve the digital mortgage experience.

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

Around the web

  • U.K. based financial services company Smith & Williamson to deploy Avaloq’s SaaS technology.
  • Quadient announces partnership with South Africa’s Beehive Online Solutions.
  • Sberbank and its subsidiary Sberbank Technology unveil open source-based communications platform for developers, engineers, and architects.
  • Roostify adds financial services consultant Marshall Lux to its advisory board.
  • Morocco-based CFG Bank chooses Kony to help drive its digital transformation.

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.

Glacier Bancorp Deploys Roostify Powered Digital Mortgage Solution

Technology from Roostify powers the new digital mortgage solution launched by Glacier Bancorp, a regional bank holding company with nearly $12 billion in total assets.

The new solution was unveiled in less than 60 days. The bank, which provides commercial banking services to 100+ communities in Montana, Idaho, Colorado, Utah, Washington, Wyoming, and Arizona, reported that it has already experienced a “significant increase in online applications” since deployment, according to Glacier Bancorp SVP and Corporate Real Estate Manager, Paul Peterson.

Pictured: Travis Kniffen (Senior Manager, Pre-Sales Solutions) and Rajesh Bhat (CEO & Co-Founder) demonstrating the Roostify platform at FinovateSpring 2018.

“When looking at digital mortgage solutions, we wanted a partner that could accommodate our unique needs and provide us with a superior experience for our customers,” Peterson said. The solution features a digital application for borrowers, and all consumer-facing functionality of the solution – including the application – are ADA-compliant. Glacier will also leverage Roostify Adapt – unveiled last summer – to enable it to provide the solution under its multiple brands.

“Glacier Bank strives to meet the unique demands of their customers and, as a result, benefits from an increase in customer satisfaction and in loan production,” Chief Customer Officer for Roostify, Syed Ijaz, said. He added, “it is truly a case where everyone wins.”

The partnership with Glacier Bancorp is the latest win for the San Francisco, California-based mortgagetech innovator. Back in November, the company announced that TD Bank would use its DecisionBuilder lead tool to help TD Bank customers shop for loan products. Also that month, Roostify added Courtney Keating Chakarum as its new Chief Marketing Officer.

In October, Roostify partnered with fellow Finovate alum Ellie Mae in a bi-directional integration that will make it easier for lenders to use both platforms together. The company launched its customization tool in August, teamed up with Tulsa, Oklahoma-based BOK Financial in May, and was honored at the MBA Insights 2018 Tech All-Star Awards last spring.

Founded in 2014, Roostify demonstrated its platform at FinovateSpring 2018. The company has raised $33 million in funding, and includes Cota Capital and USAA among its investors. Rajesh Bhat is CEO and co-founder.

Finovate Alumni News

On Finovate.com

  • Glacier Bancorp Deploys Roostify Powered Digital Mortgage Solution.

Around the web

  • Fiserv Announces Plans to Acquire First Data in $22 Billion Deal.
  • Forrester names CREALOGIX as a leader in the Now Tech: Digital Banking Engagement platforms, Q4 2018.
  • Worldpay and Revel Systems announce enhanced partnership to provide consolidated POS and payments solution.
  • International bookmaker and gaming operator SKS365 picks ARIC Fraud Hub from Featurespace for real-time fraud protection.
  • PayPal appoints marketing executive Allison Johnson to EVP and Chief Marketing Officer.
  • Forbes features iProov in article discussing identity and blockchain technology.
  • FICO teams up with electronics payments specialist Conductor to support payment card fraud protection in Brazil.

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.