SigFig Buys SmartWealth from UBS

Wealthtech company SigFig announced a big purchase today. The San Francisco-based company bought SmartWealth roboadvisory technology from UBS for an undisclosed amount.

In a memo, UBS’ Eva Lindholm, head of Wealth Management U.K., and Reto Wangler, chief operating officer of Global Wealth Management, said the company found “limited short-term potential” for SmartWealth after launching it in 2017. The SmartWealth technology was aimed to serve wealthy investors, requiring a minimum investment of $19,500. Though the Swiss bank originally aimed to expand the roboadvisory service, a management reorganization resulted in a redistribution of resources, ultimately cutting off funds for SmartWealth.

Under the sale, SigFig will receive the SmartWealth technology (not the clients). “We’re pleased, however, to have entered into an agreement to sell the intellectual property relating to UBS SmartWealth to SigFig – a financial technology firm that we have an equity stake in and with whom we’ve been working for two years in the U.S.,” the memo added.

SigFig CEO Mike Sha said, “This acquisition underscores our strong, growing relationship with UBS, as we work together to provide better digital financial solutions to advisors and their clients.” UBS has been working with the fintech for the past two years. “We saw this deal as a perfect opportunity to quickly establish a veteran technology team and UK compliant offering,” added Sha.

Launched in 2007 under the name Wikinvest, SigFig is a wealth-tech pioneer with more than $114 million AUM. Co-founder Parker Conrad debuted the company’s Actionable Advice offering at FinovateFall 2011. Earlier this year, the company closed on $50 million in funding, bringing its total capital to $117 million.

Finovate Alumni News

On Finovate.com

  • SigFig Buys SmartWealth from UBS.

Around the web

  • Compass Plus migrates Brazilian prepaid card issuer, BPP, to its platform.
  • UBS shutters its robo advisor, SmartWealth, selling technology to SigFig.
  • Azimo forges strategic partnership with African payments business, Interswitch Group.
  • BehavioSec unveils its Behavioral Biometrics Platform, which boosts security with invisible, continuous authentication.
  • PayPal’s Xoom partners with Ria Money Transfer to accelerate global expansion in 86 countries.
  • Bluefin and SoftPoint partner for comprehensive PCI-Validated P2PE solution for POS systems.
  • NCR appoints Andre Fernandez as Chief Financial Officer.
  • Kony teams with Payveris to help banks deliver digital money movement services.
  • Cryptoline News: Payfone’s technology now used to prevent SIM swap attacks.

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.

SigFig Raises $50 Million in Series E

Automated wealth management advisory specialist SigFig has raised $50 million in new funding in a round led by General Atlantic. The Series E round also featured the participation of existing investors UBS, Eaton Vance Corporation, DCM Ventures, New York Life, Nyca Partners, and Bain Capital Ventures.

“For over a decade, SigFig has provided access to premium, tech-enabled financial services for customers, banks, and wealth advisors,” CEO and co-founder of SigFig, Mike Sha said. “We are now aggressively expanding our services and reach to improve how banks utilize technology with their clients and increase the number of everyday people using technology to manage their finances.”

The company said it will use the additional capital to invest in new technology and to expand its service to larger FIs like current partners UBS and Wells Fargo. This week’s investment takes SigFig’s total capital to $117 million.

Founded in 2007 and headquartered in San Francisco, California, SigFig demonstrated its portfolio management service at FinovateFall 2011. The company enables financial service providers to offer their customers a way to build tax efficient, diversified investment portfolios that are personalized, mobile-accessible, and less expensive than using traditional financial advisors. SigFig’s platform provides tax reduction strategies, reinvests dividends, and monitors the portfolio, rebalancing when allocations get out of balance.

SigFig clients get their first $10,000 managed free and accounts can be opened with as little as $2,000. Accounts above $10,000 are charged a 0.25% annual fee. All clients get free portfolio monitoring and analysis, unlimited access to professional investment advisors, and minimized brokerage commissions.  SigFig supports individual and joint accounts, as well as all IRA types.

General Atlantic Managing Partner Paul Stamas, who will join SigFig’s board of directors as part of the investment, praised the company’s B2B2C business model, which he said could help SigFig take advantage of the growing market for “digitally-native investment advisors.” Stamas added that the company “leverages its industry-leading technology alongside its partners’ existing physical infrastructure and human capital to create a best-in-class advice solution.”

The funding for SigFig comes in the wake of a pair of major deployments of its platform. Earlier this year, UBS Wealth Management USA went live with SigFig-powered, robo advisory solution, UBS Advice Advantage. The UBS solution is geared toward clients with $10,000 to $250,000 in investable assets, and follows just a few months after Wells Fargo unveiled its own SigFig-developed robo advisor.

Finovate Alumni News

On Finovate.com

  • ThetaRay Partners with ABN AMRO to Boost AML Capabilities.
  • SigFig Raises $50 Million in Series E.

Around the web

  • Signicat integrates Belgian digital identity scheme, itsme, into its platform.
  • Australia’s Bendigo and Adelaide Bank selects OneSumX from Wolters Kluwer for regulatory reporting.
  • Fiserv inks deals with Sioux Valley Community CU and Coulee Dam FCU based in Iowa and Washington state, respectively.
  • Payfone collaborates with Canadian telecom EnStream to develop mobile federated authentication service.
  • Indiana-based Elements Financial Credit Union ($1.5 billion in assets) to deploy digital sales platform from Gro 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 Alums Among Top Investment Targets for Top European Banks

Earlier this year, CB Insights took a look at where fifteen of the top European banks were spending their investment dollars. The result is an interesting portrait of an industry appears very committed to three areas of fintech in particular: blockchain, financial services software, and Regtech. Of the 15 banks represented in CB Insights’ survey, all but one had invested in R3, the blockchain consortium, with ten banks investing in financial services software companies, and eight banks funding Regtech firms.

Also noteworthy is the presence of ten Finovate/FinDEVr alums among the investments. Symphony Software Foundation, an alum of our developer’s conference, FinDEVr, was the alum with the most support from among the 15 European banks. Santander was the bank with the broadest support among our alum community, backing six out of the 11 alums listed.

Kabbage (FinovateSpring 2015)

  • Founded in 2009
  • Headquartered in Atlanta, Georgia
  • Total Capital Raised: $488 million
  • Top European banks: Santander, ING

Personetics (FinovateFall 2016)

  • Founded in 2010
  • Headquartered in Tel Aviv, Israel
  • Total Capital Raised: $18 million
  • Top European bank: Santander

Prosper (FinovateSpring 2009)

  • Founded in 2006
  • Headquartered in San Francisco, California
  • Total Capital Raised: $355 million
  • Top European bank: Credit Suisse

Ripple (as OpenCoin, FinovateSpring 2013)

  • Founded in 2012
  • Headquartered in San Francisco, California
  • Total Capital Raised: $93.6 million
  • Top European bank: Santander

SaveUp (FinovateSpring 2014)

  • Founded in 2011
  • Headquartered in San Francisco, California
  • Total Capital Raised: $7 million
  • Top European bank: BBVA

SigFig (FinovateFall 2011)

  • Founded in 2007
  • Headquartered in San Francisco, California
  • Total Capital Raised: $60 million
  • Top European banks: Santander, UBS

Socure (FinvoateFall 2015)

  • Founded in 2012
  • Headquartered in New York, New York
  • Total Capital Raised: $29.4 million
  • Top European bank: Santander

SumUp (FinovateEurope 2013)

  • Founded in 2011
  • Headquartered in Dublin, Ireland
  • Total Capital Raised: $44.3 million
  • Top European bank: BBVA

Symphony Software Foundation (FinDEVr New York 2017)

  • Founded in 2014
  • Headquartered in Palo Alto, California
  • Total Capital Raised: $229 million
  • Top European banks: BPCE/Natixis, UBS, Deutsche Bank, Societe Generale, BNP Paribas, Credit Suisse

Tradeshift (FinovateEurope 2012)

  • Founded in 2010
  • Headquartered in San Francisco, California
  • Total Capital Raised: $182 million
  • Top European banks: Santander, HSBC

Tyfone (FinovateSpring 2008)

  • Founded in 2004
  • Headquartered in Portland, Oregon
  • Total Capital Raised: $13.4 million
  • Top European bank: Deutsche Bank

The analysis focused on fintech investments from 2012 through June 2017, and includes investments made by the venture arms of the banks shown.

Finovate Alumni News

On Finovate.com:

  • Twitter Talk from FinDEVr 2017 New York.

Around the web

  • FinDEVr New York newcomer Fiserv announces enhancements to its real-time, loan servicing solution, LoanServ.
  • Credit Donkey lists StockTwits, TradeKing, SigFig, DriveWealth, and Personal Capital among its Best Investing Apps of 2017.
  • Swiss financial sector infrastructure operator SIX partners with IBM Watson to build cyber-security hub. Video of IBM’s FinDEVr 2017 New York presentation last week will available soon in our video archives.
  • PYMNTS.com looks at speculation that Kabbage may acquire OnDeck.

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.

Top Direct-to-Consumer Wealthtech Plays

wealthtech4

Our wealthtech industry coverage continues this week. We looked at the industry last week and reviewed the top trends earlier this month. Today we’re taking a look at industry players with B2C offerings—in other words, companies that market directly to consumers and not through businesses.

Since wealthtech is broader than just roboadvisers, we’ve divided B2C wealthtech players into seven categories and laid out our top picks for each group. Since category sizes vary, the number of our selections also vary.

Top in-house builds from traditional players
These are offerings from traditional wealth management firms that have been built in-house (or purchased and then white-labeled) and marketed under the firm’s brand.

Fully automated roboadvisers
These are online platforms that provide automated, algorithm-based portfolio management without intervention from human advisers and without personalized, one-on-one conversations with a human adviser.

screen-shot-2016-12-22-at-4-06-40-pmAcorns takes a unique approach by linking a user’s debit card and investing their “spare change”

Hybrid roboadvisers
These are traditional advisory services, including personalized conversations and actively managed portfolios blended with computerized portfolio recommendations. Business Insider reports hybrid roboadvisers will manage 10% of all investable assets by 2025.

screen-shot-2016-12-22-at-4-11-08-pmSigFig has partnered with multiple banks, including Wells Fargo, Pershing, and Citizens Bank

Non-U.S. roboadvisers

Alternative investing platforms
These are platforms that link participants to unconventional investment types, such as private equity, hedge funds, futures, real estate, etc.

screen-shot-2016-12-22-at-4-18-08-pmWith Motif, uses invest in grouped stocks and ETFs that revolve around a common theme

Non-U.S. alternative investing platforms

News and information companies
These are online platforms that help users discover news and market trends before they go mainstream. Some include social networking aspects.

screen-shot-2016-12-22-at-4-23-47-pmTickerTags helps users discover trends even before they become news

Finovate Alumni News

On Finovate.com

  • Behavioral Biometrics Startup Zighra Lands $1 Million in Seed Funding
  • Tuition.io Appoints Former Yahoo CEO Scott Thompson as New CEO

Around the web

  • Commerce Bank chooses Temenos to upgrade core deposit banking system.
  • ThetaRay earns recognition from CIO Review as a top 20 financial services provider for 2016.
  • Financeit reports a doubling of its business since acquiring the home improvement financing assets of TD Bank.
  • Green Dot teams with WalMart to encourage Americans to build savings.
  • Bizfi expands its business lending capabilities through a new partnership with InterNex Capital.
  • OnWallStreet recommends advisers keep their eyes on Wealthfront’s Andy Rachleff; SigFig’s Mike Sha; and Betterment’s Jon Stein.
  • Passport acquires Arizona-based mobile parking payment startup ParkX.
  • P2P lender SocietyOne facilitates $126 million in loans in 2016, finishing a record-breaking year.
  • InComm expands partnership with Target Australia to offer gift cards in stores and online.

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.

SigFig to Power Digital Wealth Management for Citizens Bank

screen-shot-2016-12-01-at-8-56-35-amWealthtech veteran SigFig announced today it will power digital wealth management services for Citizens Bank. The Rhode Island-based bank plans to make the service available to its clients in early 2017.

The bank, which has $147 billion in assets and already offers tailored, advice-based services, is hoping the new integration “will drive greater value for customers by providing clear information, on-demand access, and even greater personalization.” The service will guide customers through their risk tolerance, help them determine their goals, and will offer a free investment checkup. Customers can opt to use a paid service that directly manages their investments.

By leveraging SigFig’s digital capabilities, Citizens Bank will be able to serve a broader range of clients. In a press release, John Bahnken, president of Wealth Management at the bank, said:

By introducing this digitally driven platform, we are creating an investing experience that meets a wide range of client preferences and goals, from those who are just starting to invest to those who simply prefer to manage some or all of their investing with the assistance of digital.

Today’s news is the latest in a string of recent bank partnerships for SigFig. The San Francisco-based company recently agreed to offer wealth management services to Wells Fargo, UBS, and Pershing. Launched in 2007 under the name Wikinvest, SigFig is a wealth-tech pioneer with more than $114 million AUM. Co-founder Parker Conrad debuted the company’s Actionable Advice offering at FinovateFall 2011.

Finovate Alumni News

On Finovate.com

  • “SigFig to Power Digital Wealth Management for Citizens Bank”

Around the web

  • IBM helps The Mahindra Group test blockchain technology to innovate supply-chain finance in India.
  • Digital River World Payments integrates its online payments platform with ACI PAY.ON Payment Gateway from ACI Worldwide.
  • Bank Innovation looks at the Secure Private Login launched by Civic.
  • Avoka wins AWS financial services competency status with its account-opening solution.
  • Kasasa named a BankNews Innovative Solution Award Winner.
  • PayPal revamps its business app with new capabilities.
  • CAN appoints Parris Sanz, chief legal officer, as the company’s interim CEO while CEO Daniel DeMeo takes a leave of absence.

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.