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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
While 2021 was a record year for fintech merger and acquisition (M&A) activity, 2022 is off to a great start.
According to FT Partners, there were 1,485 M&A deals in the fintech space totaling $348.5 billion in 2021. As Square’s $29 billion takeover of Afterpay demonstrated, last year’s massive volume is partially thanks to multiple large deals.
This quarter, only eight of the 21 deals initiated disclosed financial details. Of those, the deal volume added up to almost $5 billion.
While experts predict that 2022 M&A activity will likely see momentum from 2021, there are two aspects to watch out for this year. First, we will not see as many SPACs as we saw last year. This may decrease the number of companies choosing to exit this year. Second, fintech valuations are deflating after experiencing huge rises over the course of the past two years. While the loss in value won’t directly impact the number of M&A deals, it will decrease the deal volume.
Alkami has entered a definitive agreement to acquire financial analytics company Segmint for $135.5 million in cash.
The acquisition will combine Segmint’s data insights with Alkami’s digital account opening and digital banking technology.
Both companies are Finovate alums. Alkami made its Finovate debut as iThryv in 2009. Segmint made its most recent Finovate appearance at FinovateFall in 2012.
Another day, another big acquisition in the fintech space. Today we learned that cloud-based digital banking solutions provider Alkami Technology has agreed to acquireSegmint, a financial data analytics and transaction cleansing specialist. Alkami will pay $135.5 million in cash for the Cuyahoga Falls, Ohio-based company, and expects its total addressable market to grow by $1 billion courtesy of the acquisition.
“Our customers want to deepen their customer relationships and grow revenue,” Allkami CEO Alex Shootman said. “To do so, they must transform raw account and transaction data into insights that lead to highly personalized communications. Segmint applies machine learning to transaction data to help FIs better understand their account holders and automates messaging with incredible precision and personalization across multiple channels.”
The acquisition will enable financial institutions partnered with Alkami to benefit from the combination of data sets from both Alkami and Segmint. In addition to providing a more comprehensive view of account holders, the combination also will bring greater precision and additional use cases to Segmint’s data models. Further, financial institutions will be able to use this data to leverage digital banking to better target, engage, and build customer relationships.
Approved by the boards of directors of both companies, as well as Segmint stockholders, the acquisition is expected to close in Q2 of this year – assuming regulatory approvals and customer closing conditions are met.
As we noted, the Alkami/Segmint acquisition is the second big fintech acquisition involving a Finovate alum this week. We reported yesterday that Canadian identity verification company – and Finovate Best of Show winner – SecureKey – agreed to be acquired by digital security and privacy company Avast.
Digital marketing solutions provider Segmint is partnering with marketing communications expert Constant Contact.
The partnership will enable Segmint to bring a turnkey email delivery solution to its Marketing Automation platform.
The offering leverages Segmint’s Key Lifestyle Indicators, which offer insight into customer life events and interests.
Digital marketing solutions provider Segmint is partnering with marketing communications expert Constant Contact. The two are working together to bring a turnkey email delivery solution to Segmint’s Marketing Automation platform, a tool that helps financial services companies create personalized, timely engagement campaigns.
By integrating Constant Contact’s capabilities into its Marketing Automation platform, Segmint will help financial institutions leverage customer insights and personalize individualized, targeted messages to their account holders. Constant Contact will offer banks a turnkey email automation tool that unlocks siloed customer data to deliver highly personalized messages.
Segmint’s Marketing Automation solution leverages the company’s KeyLifestyle Indicators (KLIs). Segmint’s KLIs analyze customer data to gain insights into their life events and interests, as well as to identify cross-sell opportunities, product utilization, and more. The company processes the data in real time to keep the insights relevant and up-to-date.
“The email integration into Segmint’s platform enables FIs to align digital marketing efforts with the full suite of media channels, while most importantly utilizing their own account holder data which allows them to produce insights that deliver the highest level of targeting efficiency and relevant messaging,” said Segmint Chief Product Officer Nate Shahan.
Founded in 2007 and headquartered in Ohio, Segmint offers financial services companies a range of solutions, including AI-driven predictive models, data cleansing and quality management tools, customer insights, and customer retention tools. Among the company’s recent partnerships are Access Softek, Corelation, and Nymbus.
It is hard to imagine having a better start to your week than Plaid had seven days ago when the innovative fintech (and Finovate alum) announced that it had agreed to be acquired by Visa for $5.3 billion.
But the €90 million ($100 million) raised by Swedish open banking platform Tink on Monday is nothing to sneeze at. In fact, the funding, which is the company’s largest to date, is a reminder that investment interest in (and funding for) companies dedicated to developing the infrastructure that connects consumers, banks, and the financial technologies is very much in abundance.
“Our aim is to become the preferred pan-European provider of digital banking services and to offer the technology needed for banks, fintechs, and startups to leverage the opportunities of open banking and enable them to successfully develop financial services in the future,” Tink co-founder and CEO Daniel Kjellén said in a statement.
Tink demonstrated its platform most recently at FinovateEurope 2019. For more on this year’s Finovate event in Europe kicking off next month, visit our FinovateEurope 2020 page.
Azimo, one of our earliest FinovateEurope alums, announced a pair of big changes at the top to begin the new week.
The London-based money transfer firm, founded in 2012, promoted its COO Richard Ambrose to CEO back in August, as Azimo founder Michael Kent took what TechCrunch referred to as a lateral move to become executive chairman. Today, Fintech Futures, Finovate’s sister publication, reports that the company has appointed Dora Ziambra to the post of Chief Operating Officer. Azimo also promoted its head of finance Tatiana Okhotina to the post of Chief Financial Officer.
“We’re fortunate to have the depth of talent to fill these top roles internally,” Ambrose said in a statement. “We’re lucky too that Azimo will continue to benefit from the experience and leadership of these two outstanding women.”
Here’s our weekly roundup of the latest news from our Finovate alumni:
Union Bank to leverage technology from FIS for core banking.
Italy-based CREDEM leveragingWorldline’s Payment and Liquidity Hub software CRISTAL to process Target2 payments
POS software Vend partners with Klarna to offer retailers more flexible payment options.
U.K. food retailer The Co-operative to deployACI Worldwide’s fraud management solution, ReD Shield.
A partnership between TransferGo and Currencycloud will enable the money transfer company to enter 14 new markets.
YellowDogforges reseller agreement with Annex Pro.
Bankable cozies up with Plaid to allow its bank customers to connect with their users’ bank accounts.
Ohpenappoints former Tesla marketing leader Corinne Aaron as new head of marketing.
Segmint to acquire WAND’s Product and Service Taxonomy division.
CuneXuscelebrates 2019 success with a 40% year-over-year increase in consumer reach.
Three Key Lessons We Learned from Plaid – Unless you’ve been living under a rock, you’ve probably heard that Visa is acquiring Plaid for a deal that’s worth $5.3 billion. The fact that they were so widely used at such an early stage is a testament to the quality of their code, but there are also a few key lessons to take away from their success.
ITSCREDIT’s Joao Pinto on the Digital Lending Opportunity – ITSCREDIT is a spinoff from ITSECTOR and is a fairly new player in the digital lending space. In this interview, Pinto talks to us about the digital lending opportunity, how his company fits into the current state of this fintech subsector, and what we can expect to see next.
Kasasa Enhances its Take-Back Loan – Community bank marketing expert Kasasaannounced a partnership with Carleton today in which Kasasa will integrate Carleton’s insurance and debt protection calculations into its Kasasa Loan.
Plinqit Brings Rewards-Powered Financial Literacy to First Community Bank – One day in the distant future, children will be educated in basic financial literacy as readily as they are taught algebra. Until then, solutions like Plinqit from HT Mobile Apps will be valuable tools for credit unions and community banks looking for novel ways to engage and educate their members and customers.
Credit, Data, and Cryptocurrencies: Graychain Rebrands as Credmark – The company that is bringing credit data clarity to the cryptocurrency industry is entering 2020 with a new name.
Tradeshift Lands $240 Million as it Inches Toward Profitability – The San Francisco-based company will use the investment to boost expansion efforts and gear toward a “direct path to profitability in the near future.”
Fintech, Financial Services, and the Case for 5G – Calling 5G “something banks aren’t even thinking about,” Celent SVP Dan Latimore said, “we believe the effects of 5G are going to be subtle and profound over time.”
Backbase-as-a-Service Helps Banks Leverage the Cloud to Innovate and Scale – The solution makes the company’s broad portfolio of digital banking offerings available to FIs looking to accelerate their ability to develop and offer new technologies to customers.
Also on Finovate.com
Visa to Acquire Plaid in $5.3 Billion Deal – “Today marks an important milestone for our company and for fintech,” company co-founder and CEO Zach Perret wrote on the Plaid blog earlier today. “What started with two founders building in a cramped conference room has become an incredible network that enables millions of consumers to interact with over 2,500 digital finance products.”
Not Another 2020 Trends Prediction Post (Seriously, It’s Not!) – We’re taking a look at the trends you can expect to see on stage next month at FinovateEurope. To keep things simple this year, we assessed the themes at a very high level and broke them down into three categories: the big, the little, and the trends in-between.
Singapore’s Digital Banking License Space Race Accelerates – Is there anyone out there who is NOT trying to secure a digital banking license in Singapore? The Monetary Authority of Singapore announced last week that has received 21 applications for digital bank licenses.
MogoSpend Offers Credit, Cashback, and Help Reducing Your Carbon Footprint – The new digital spending account from Canadian fintech Mogo does more than help Canadians get control of their finances. The solution also offers cardholders generous cashback rewards and a way to make a positive impact on the environment by reducing their carbon footprint.
Getsafe Expands its Insurtech to the U.K. – If your insurance company is offering you drone insurance, you know it’s not your grandmother’s insurance agency. Germany-based insurtech Getsafe does just that– and the company announced today it is expanding its home contents insurance offering (though, sadly, not its drone insurance offering) to users in the U.K.
Raisin’s New Acquisition Gives Company Access to the U.S. Market – European deposit marketplace Raisin announced today it acquired New York-based Choice Financial Solutions.
French Fintech Lydia Locks in $45 Million – TechCrunch reported this morning that French mobile payment app Lydia has raised $45 million (€40 million) in a round led by Tencent.
Visa’s Tap to Phone Brings Contactless Payments to mPOS – With Visa’sTap to Phone app arriving pre-installed on the new, enterprise grade smartphone from Samsung, a broad range of merchants will have access to yet another way to accept payments from customers.
INTL FCStone Acquires International Bank Transfer Firm – Headquartered in Germany, GIROXX offers international bank transfers and currency hedging. INTL FCStone plans to leverage this technology to expand its current client base to small-and-medium-sized enterprises (SMEs).
Featurespaceannounces strategic partnership with NatWest to deliver real-time, enterprise-wide fraud prevention, transaction monitoring.
Indiana-based Centier Bank ($4.5 billion in assets) leveragesSmartLaunch from NYMBUS to support the launch of its mobile app, Billinero. See NYMBUS at FinovateFall in New York this week!
Societe Generale teams up with FIS to offer payments-as-a-service to corporate clients in Europe.
Piraeus Bank, the largest bank in Greece, unveils its new PFM tool powered by technology from Strands.
Segmintannounces digital engagement expert Adam Craig as its new president.
Tradeshiftforges partnership with privacy-enhancing technology provider QEDIT.
Kyckrinks reseller and integration agreement with Australian information services provider illion.
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.
Arival BankNets $2.3 Million in Equity Crowdfunding Campaign.
Winners Circle: Finovate Honors Fintech’s Finest with New Awards Series.
Around the web
Cinchyvoted “Top Pick” for TechCrunch Disrupt SF 2019 and selected as a CIX Top 20 company for 2019. Check out Cinchy’s upcoming demo at FinovateFall later this month!
Epcor partners with data-driven solution provider Segmint to help FIs better leverage payment data.
Dwollateams up with Currencycloud to make international payments easier for businesses.
Luxoft to collaborate with Fenergo as part of the company’s Global Platinum Partner program.
Menigahelps Grupo Crédito Agrícola launch its new banking app, moey!.
Nomis Solutionsexpands presence in the Midwest with the opening of a Center of Excellence in Cleveland, Ohio.
WePaylaunches same-day deposits to Chase bank accounts for free.
Blackhawk Networkappoints Harel Kodesh as chief technology officer.
Lendio Southwest Michigan franchise opens to offer funding to local businesses.
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.
Data insights startup Segmint has agreed to power analytics capabilities for Austin, TX-based Buzz Points. Specifically, Ohio’s Segmint will enable Buzz Points to help its clients to build marketing segments based on cardholders’ buying behavior.
“The ability to identify customers with a strong probability of action in combination with a strong call to action like rewards is a marketer’s dream,” said Dwayne Spradlin, Buzz Points CEO. “We’re excited to find strategic partners like Segmint that help us continue to offer robust platform solution with an even greater ROI for our clients.”
Founded in 2007, Segmint leverages the raw, unstructured data from banks’ consumer transactions to form marketing insights that lead to customer acquisition, cross-selling, and more efficient marketing techniques.
The company’s products include Merchant Payment Cleansing, a tool that decodes merchants’ cryptic transaction data descriptions; Transaction Analytics, which cleans and categorizes data to make it useful for marketers; and Data-Driven Marketing Platform, an all-in-one tool to help non-technical marketers create, deliver, and monitor campaigns.
Segmint, which demoed at FinovateFall 2012, was founded by John Cale, Nate Shahan, and Rob Heiser, who serves as CEO. The company has raised $30 million.
Paysendannounces its new stablecoin will be available on the Stellar Network in June.
LoanScorecardforges partnership with Calyx Software, merging its SimpleCECL solution with Calyx’s Path LOS.
Digital Onboarding will join Best of Show winners Voleo and Neener Analytics as part of the fourth annual FIS Fintech Accelerator program.
Chartis Research recognizesFICO as a category leader in AI for Financial Services.
Judo Bank of Australia goes live with Temenos’ T24.
Xerolaunches new feature in the Xero Projects iOS app that suggests project time based on geolocation
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.
Entersektpartners with Mastercard to enhance payment options for users of the Nedbank Money app.
StockTwitslaunchesRooms, a chat platform where users create new communities based on shared interests, specific stocks, or market trends
COCC leveragesSegmint to offer data-driven marketing solutions for bank clients.
Roostifyannounces new Chief Financial Officer Eric Amblard, formerly of EverString Technologies.
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.
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.
Enhancing the Customer Experience in Financial Services.
First look: Major U.S. banks integrate the Zelle brand into their person-to-person payment services.
New Partnership TurnsPayPal into Apple App Store Payment Option
Around the web
Signifydbrings its Guaranteed Fraud Protection solution to Authorize.Net’s U.S.-based e-commerce merchants.
Passportlaunches parking payment app, Passport Canada, for students at Simon Fraser University.
Strategic partnership will integrate Key Lifestyle Indicator technology from Segmint with financial services solutions from IBM.
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.
BioCatch receives patent for detecting the presence of remote access tools.
eTorolaunches Crypto CopyFund that includes top cryptocurrencies.
Segmintpartners with IBM to enhance Financial Institutions’ data ACI Worldwideexpands in Romania
FICOextends cybersecurity score to rate 4th party risks.
BrightFunds and Roostifynamed to Forbes Cloud 100.
GreenKey Technologiespartners with Red Box Recorders to launch trading voice collaboration and compliance recording solution.
American National Bank selectsJack Henry Banking’s SilverLake System.
Hip Pocketgraduates from Points of Light Civic Accelerator.
Financial Resources Federal Credit Union Teams with Roostify to Create Better Online Mortgage Experience.
Santander partners with supply chain finance startup Tradeshift.
Bancpassissued patent for its mobile payment technology.
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.