Alumni News– January 9, 2015

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgKiplinger’s list of five great free financial apps features BillGuard, Mint Bills, Level Money, SavedPlus, and Wallaby Financial.
  • Center for Financial Inclusion highlights Dwolla, Klarna, Kreditech, Receivables Exchange, and Wealthfront in its review of Australia Wealth Investor’s top 50 fintech innovators for 2014.
  • First Electric Cooperative deploying TextPower SmartAlerts.
  • WePay makes Bobs Guide’s “Fintech Startups to Watch in 2015” list.
  • Misys awarded SWIFT Certified Application labels for trade and supply chain management.
  • CrowdCurity launches newly designed website.
  • Time magazine lists Nymi as 1 of 5 most important things happening at CES 2015.
  • Forbes: Xero Wants All Small Businesses To Do Accounting In The Cloud.
  • Tradier releases Morningstar-sourced fundamentals APIs to beta.
  • Cachet Financial launches Co-Branded Option for Select Mobile Money Solution.
  • PYMNTS interviews CAN Capital CMO James Mendelsohn about access to alternative funding.
  • Taulia launches “Take Control” campaign to help companies better understand early payment solution.
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.

Alumni News– August 29, 2014

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgHeckyl to provide real-time news and data analytics courtesy of new partnership with Marketware International.
  • Diebold brings deposit automation and cash recycling services to consumers and FIs in Brazil. See Diebold at FinovateFall in September.
  • Dwolla makes MassPay official, offers a simpler experience with increased stability, improved reporting, and increased transactions per batch.
  • PYMNTS talks with SumUp CEO Daniel Klein, to understand how it views innovation in the mPOS space.
  • PayPal launches tool, PayPal Demo, to help developers show merchants the difference between different PayPal payment options.
  • CNBC’s National Business Report interviews Scott Goldman, CEO of TextPower.
  • American Banker profiles FinovateSpring 2014 Best of Show winner, Stockpile.
  • CNET takes a look at Lending Club in the wake of the company’s IPO filing.
    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– May 23, 2014

    • Finovate-F-Logo.jpgSilicon Republic reports: Disruptive banking service Holvi gets regulatory approval to spread across Europe.
    • Cardlytics named one of the Georgia Fast 40, which honors GA-based companies that sustain growth over a 3 year period.
    • CBS 12 News features Arxan’s security tech.
    • miiCard partners with eMerchantPay to offer merchants a more secure, compliant transaction processing solution.
    • Bank Innovation speculates on potential new features from GoBank.
    • Finovate alums Fenergo and Thomson Reuters win recognition from Inside Reference Data Awards.
    • Virtual Agent Chat takes a look at IntelliResponse’s OFFERS as a form of “just in time marketing.”
    • Bloomberg BusinessWeek sources Scott Goldman, CEO of TextPower, on the eBay data breach.
    • Deutsche Startups interviews Numbrs CEO, Julien Arnold.
    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– May 14, 2014

    • Finovate-F-Logo.jpgTIO Networks partners with New Jersey’s Public Service Electric and Gas Company to set up bill payment kiosks.
    • Pindrop Security and AGNITiO partner to protect call centers as they adapt to an increasingly mobile customer base.
    • Bolstr explains the basics of crowdfunding on NBC Chicago.
    • Loop Wallet app now available on Android.
    • Maps Credit Union chooses ACI Worldwide’s online banking platform.
    • Javelin Strategy takes a look at bill pay alternatives to Manilla, including Finovera.
    • BodeTree brings in $2 million in Series A round.
    • SavedPlus, LikeFolio, Wallaby, FutureAdvisor, Simple and Wealthfront earn spots on CNN Money’s list of the 15 best financial websites and apps.
    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.

    FinovateSpring 2014: Behind the Scenes with WePay, Rippleshot and TextPower

    Thumbnail image for FinovateSpring2014ButtonLogo.jpg

    In today’s report, we’ll get to know three more companies that made their Finovate debuts at FinovateSpring 2014 in San Jose.

    So far, our Behind the Scenes series has introduced CUneXus,, and Venovate in our first installment. Here, we’ll meet API-developer WePay, network security innovator, Rippleshot; and SMS-based omni-factor authenticator TextPower.

    What they do
    “We are an API company focused on platform businesses: crowd funding sites, donation platforms, marketplaces …” this is how John Canfield, WePay Vice President of Risk, describes the company. Unveiling their Veda Risk engine at FinovateSpring, WePay demonstrated how it has leveraged its basic expertise in payments to provide a flexible way to create new accounts and process payments.
    WePay’s origins as a payments company give it a unique insight into the needs of the clients it serves as an API innovator. John says the opportunity to focus on user experience and turning Big Data into Big Analytics makes sense in a world in which the payments industry is increasingly commoditized. “So why not innovate on the risk side, on compliance?” he says.
    • Processes transactions for more than 250,000 merchants; 400 platform partners 
    • Recorded 51% quarter-over-quarter growth from Q4 2013 to Q1 2014
    • Averaging 35% monthly growth in crowdfunding-specific processing
    • Powers eight out of the top 15 crowdfunding platforms
    The experience
    Wepay provided the example of a merchant who uses another Finovate alum, invoiceASAP, to bill clients. The challenge is to make it as easy as possible for the client to pay – and as quick and seamless as possible for the merchant to get paid.
    With a single click, this merchant can apply to have WePay serve as her payment processor, allowing the merchant to accept, for example, a credit card payment rather than waiting for a check in the mail.
    In most instances, credit card processors require merchants to fill out extended, complicated forms as part of the on-boarding process. WePay asks nothing more than the same basic credit card information typically provided in any transaction: card number, name, expiration date, CVV. But the result is a single-click process and response, rather than a days-long ordeal.
    WePay’s approach results in a 95% acceptance rate for merchants. And credit for this goes to the company’s proprietary risk engine, Veda.
    Veda pulls data from a variety of places: social media, other partners, and third party data sources to gain much more information about the transaction faster and easier than other processors. Veda also collects data on the payer and the merchant, including social media data (Facebook, Google+, Twitter, etc.), and delivers scores on both the merchant’s “quality” and the merchant’s “identity.”
    “This is a very important online credential,” John says, “just like a passport or a driver’s license is an important credential for the physical world.”
    What can we look forward to from WePay in the months to come? Customization in the form of better tailoring the risk experience, the user experience, so as to be the “ideal risk partner for our customers” is one goal. The company also plans to continue innovating on the risk engine itself, especially by incorporating new relevant risk data with the goal of providing a solution that fits the crowdfunding or marketplace platform perfectly. “It’s not a generic package,” says John. “everyone has something different.”

    What they do
    Rippleshot specializes in detecting fraud and data breaches using a different focus: the merchant payment network itself. Many security solutions, says the company, are vertical and siloed. Rippleshot’s technology in contrast uses a Microsoft search engine-like technology to detect data breaches and examine patterns of behavior before merchants and credit card issuers are even aware a problem exists. While some anti-fraud measures focus on customers, their cards, their mobile devices, Rippleshot “profiles merchants.”
    Add to this the fact that the technology is cloud-based, requiring no installation or exchange of personally identifiable information, and delivers the kind of analytics that, for example, help financial institutions re-issue cards smarter and faster to compromised accounts.
    • Detects breaches long before they become known to public
    • Monitors more than 16 million online and offline POS terminals and payment gateways
    • Cloud-based solution requires no installation within company’s IT environment and no PII (personally identifiable information) exchanged
    The experience
    Here is a standard scenario in the world according to Rippleshot: customers visit a compromised merchant. The fraudster who may be stealing mag stripe data at the point-of-sale, then sells the stolen card information, which will be used for fraudulent transactions far and wide.
    Critically, compromised cards all will share a history of transacting with the compromised merchant. And when Rippleshot discovers a merchant with a broader than av
    erage history of encountering compromised cards, there is a good chance that this merchant is the source of the breach or fraud.
    Rippleshot’s technology combines Big Data, machine learning, and cutting-edge statistics to scan through hundreds of millions of card transactions to spot this kind of common history. With this method, Rippleshot says it is able to narrow down the source of the breach or fraud not just to the specific store, but the specific POS terminal, as well. Exactly when the breach occurred is also valuable security intel that Rippleshot’s analytics provides.
    Above: Rippleshot dashboard
    Another plus of Rippleshot’s approach to security is the way it helps card issuers deal with the challenge of reissuing cards when fraud occurs. The standard strategy is to create and distribute a sizable number of cards to compromised and noncompromised accounts alike in an attempt to almost smother the problem.
    Breach Fraud_Spend_Map_bts
    Above: Breach and fraud spend map
    Rippleshot seeks to provide a smarter way of reissuing cards. Of the three main categories of cardholder – those with compromised cards and those with cards about to expire in any event – most issuers can handle internally with their own systems. Rippleshot shines in the third instance – those cards that have not yet been compromised but remain vulnerable. Here the company provides real-time, time of transaction, decline rules until issuers can provide a new card. These rules range from geography to store type to transaction type.
    Above: Rippleshot Chain List
    What’s next for Rippleshot? Currently able to provide merchants with card fraud alerts, the company is looking into ways to give merchants the ability to get alerts on data breaches, as well. The goal is to become increasingly proactive, something that rarely happens at the merchant level. 
    “Our solution is a combination of ADT + insurance,” Rippleshot CEO Canh Tran and COO Lucas Ward say, pointing to a team made up of experts in the field of analytics, UI, and fraud detection. “Many of our guys have more than 10 years experience in fighting fraud.” And from their perspective fraud and data breaches will always be more a matter of if than when.

    What they do
    Could the path to superior online authentication be paved with something as simple as SMS?
    Or perhaps more accurately, SMS-run backwards. The genius of TextPower’s solution lies in the way it has leveraged a fundamental understanding of how text messaging actually works on mobile devices into one of the most unique methods for ID verification in the market.
    The trick, as explained below, is that the effectiveness of SMS as a authentication method depends entirely on which direction the authentication request is coming from. As CEO Scott Goldman explains, each mobile device has a built-in unique code, developed by the manufacturer. This code is used by telecommunications companies to make sure that a single mobile device is not being used for multiple accounts.
    This same unique mobile device identifier, says Goldman, can tell an authenticating website or VPN whether the device seeking access is the correct one. Even if I as a fraudster have your correct credentials, if I don’t have your device also, then I don’t get access.
    • 2012 Tech America Orange County High-Tech Awards Finalist
    • Info Security Products Guide 2012 Global Excellence Awards winner
    • 2011 Government Security News Homeland Security Award winner
    • TextPower founded 2009; TextKey founded 2013
    • $525,000 in funding; 7 employees
    The experience
    The experience of using TextKey is in most respects similar to what users of other SMS or text-based authentication experience. By relying on behavior as common as sending a text message, TextPower believes their authentication solution is that much more likely to be adopted and readily embraced by the average person already accustomed to communicating by text messaging.
    TextKey works like this: a person who has legitimate access to a TextKey-enabled website will enter their username and password. The website will then display a unique, one-time code. The person seeking access must text that code to a specific number, using the mobile device that had been pre-designated.
    If the correct code is sent from the correct mobile device, then access is granted. If either is incorrect – an inaccurate code or a device that is not the designated device – then access is not granted.
    At this point, other additional authentication protocols can be brought into play, ranging from challenge questions to intervention by a human agent.
    Scott credits h
    is company’s background as a text messaging company for the ability to see security differently. He and his team may have an inside track on understanding how the actual mechanics of text messaging work – and could be made to work. But they are also passionate about the point that it is not enough for security to be “easy” – it has to be no different from everyday activities. Scott says, “in the battle between security and convenience, convenience always wins.” 
    To get a sense of TextPower’s future with TextKey, consider the potential implementations of the technology. With a pedigree of mission critical deployments including everything from utility companies to the criminal justice system (read: wearable probation monitoring technology), the company is confident it will be able to develop similar relationships with the smaller banks and credit unions that are looking for affordable security solutions.
    “We can protect anything with an ID and a password,” says Scott, referring to TextKey as “Fortune 100-level security that can be set up in just a few hours. And as to the question of scale? Bring it. “We could receive millions of messages a day and it wouldn’t strain the system at all. Volume is no object.”

    Be sure to say tuned for our next Behind the Scenes feature with more new Finovate alums from FinovateSpring!

    TextPower Debuts TextKey to Provide Mobile, Omni-Factor Authentication


    This post is part of our live coverage of FinovateSpring 2014.

    Mobile security is the specialty of our next presenter, TextPower, unveiling TextKey mobile authentication technology.

    “TextKey is the next-generation authentication system that turns common SMS-based authentication models upside down. TextKey users see a one-time key on a webpage and must text that key FROM their cell phone into the TextKey system. TextKey then verifies the mobile number that sent the key along with up to five other verification factors. 
    When the correct key comes from the correct cell phone number and the other factors are verified, access is granted. If the key is sent by a cell phone that is not registered to send it (i.e., a hacker) or any of the other five factors are not verified, authentication is refused and the hacker’s cell phone number captured. TextKey is simple to install, affordable for any size business, and has no learning curve for users (“just text it”).”
    Presenting: Scott Goldman (CEO & Co-Founder)

    Product Launch: April 2014
    Product distribution strategy: Direct to Business (B2B), through financial institutions, through other fintech companies and platforms
    HQ: San Juan Capistrano, California
    Founded: February 2009 (TextKey product created in 2012)
    Twitter: @TextKey / @ TextPower

    FinovateSpring 2014 Sneak Peek: Part 5


    Below, we’ve brought you another set of companies that will show off their newest technology at FinovateSpring on April 29 and 30 in San Jose. The six companies featured below will demo their fintech solutions that target problems ranging from marketing to security.

    In case you missed them, check out the following posts in our series, each featuring 6 companies:


    Encap Security allows FIs to think outside the “authentication box,” providing the ideal solution for mobile and online banking, CNP transaction and call center authentication.

    Encap Security’s in-app authentication solution:

      • increases security while improving customer experience
      • increases adoption, revenue while decreasing costs
      • satisfies regulatory requirements.

    Why it’s great:
    For the first time, you can forget that old trade-off between security and ease-of-use.  


    Adam Dolby,VP of Business Development
    Dolby serves as Encap Security’s VP of Business Development, with a focus on the Americas. He brings over 20 years of experience in the development and delivery of e-banking products.

    David Nayes, Director of Sales
    Nayes has a deep understanding of strategies for combating payment and mobile banking fraud.


    Insuritas is the nation’s leading SaaS banking solution delivering on the high demand for Web based services from financial institutions that converts online banking sites into sales engines.

      • SmartCART delivers shop, compare, buy, single check-out and post-sale online account creation
      • Sales revenue annuitizes at 82% YOY
      • Contains products consumers purchase and repurchase every year
    Why it’s great: 
    Transforms bank web eco-systems for 69 million online banking customers from service sites into ecommerce platforms that generate value added, annuitizing, non-cyclical fee income.  

    Jeffrey Chesky, Founder, President & CEO 
    Chesky pioneers the design, installation, and outsourced management of insurance agencies for financial institutions nationally.
    Matt Chesky, SVP
    Chesky joined Insuritas in 2012, oversaw design and deployment of Insuritas SmartCART Technology and SaaS platform; Graduated Yale ’12 with a degree in Economics.


    Pellucid Analytics fixes pitchbook creation. It is a tablet and browser product that lets you browse print-ready charts and drag them into a pitchbook.


      • Leverage a large gallery charts formatted to firm-specific branding standards 
      • Quickly assemble charts into a pitchbook 
      • Focus on applying judgment to information and crafting a compelling message 

    Why it’s great:
    Pellucid compresses the time required to perform a broad range of pitchbook-related activities from days to seconds.


    Adrian Crockett, CEO and Cofounder
    Crockett has over 14 years of investment banking experience, heading groups at Credit Suisse, Merrill Lynch, and Deutsche Bank.

    Jamie Ballingall, Chief Scientist and Cofounder
    Ballingall oversees delivery of the product and was formerly an investment banking quant and adjunct associate professor at Columbia University.


    Radius is the modern way to market to small businesses. Unlock your best SMB customer segments. Deploy targeted marketing campaigns and measure your success.


      • Gain insights on more than 27 million U.S. businesses
      • Discover your best customer segments and create look-alike lead lists
      • Deploy campaigns and measure success

    Why it’s great:
    Radius takes the guesswork out of lead generation. Identify your best market segments. Deploy amazing marketing campaigns. Learn. Repeat.  


    Darian Shirazi, Founder & CEO
    Shirazi was an early employee at Facebook and worked on the Sell Your Item team at eBay. He has founded, invested in, and advised many successful technology companies.


    TextPower’s TextKey protects data, websites, and VPNs by having users send a simple text message which authenticates by verification of up to seven factors.


      • World’s first omni-factor authentication (checks every factor)
      • Virtually unhackable; authenticates via simple SMS
      • Affordable and easy to install for any size business

    Why it’s great:
    Simple, strong, secure protection for your data, website and company. TextKey’s patent-pending technology is virtually unhackable because users text the key from their cell phone.  


    Scott Goldman, Co-founder/CEO
    Technologist, successful entrepreneur, author, consultant, globally-recognized speaker, and “Wireless Wizard”. Mileage-mad cyclist. Favorite hobby: Making dark chocolate disappear.


    Venovate’s Marketplace is an online platform that makes investing in and fundraising for private securities faster and more efficient.


      • Verification of investors and fundraisers
      • Thorough due diligence on investment opportunities
      • Back office for efficient execution of transactions

    Why it’s great:
    Venovate is the smarter alternative for investing and fundraising.  


    Michael Raneri Chairman & CEO
    Raneri has over 20 years of experience in executive positions with four leading online brokerage firms. Uniquely qualified to lead the next generation of financial industry innovation.

    Thomas Foley, Co-founder
    Foley has been successful at several startups and in investment banking. Recognized for outstanding entrepreneurship in BusinessWeek’s 30 Under 30.

    Be sure to check back on Thursday of this week, when we’ll post a sneak peek of another six companies.