Finovate Alumni News

On Finovate.com

  • Twisto Closes $15.7 Million Capital Raise.
  • FinovateSpring Best of Show Winners Announced.
  • Welcome to FinovateSpring’s Conference Day.

Around the web

  • ID.me launches discounts for new affinity groups: nurses, age segments, and alumni.
  • TechCrunch: SoFi launches Gig-focused ETF.
  • Ayondo inks deal to sell UK unit for £5.7m.
  • Cornèr and NDGIT partner to provide direct access to third-party service providers under PSD2 regulation.

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.

Tink Teams Up with Mash

Finland-based Mash will leverage account aggregation technology from fellow Nordic fintech Tink as part of an initiative to enhance the customer experience and offer new services. The company plans to use Tink to improve the onboarding process for new users as well as provide more control and insight into their financial accounts.

Calling Tink a “perfect match,” Mash CEO James Hickson praised Tink’s “pan-European connectivity” and work in Finland in support of the new partnership. “The quality of the aggregated data that Tink can access makes them a reliable source which will enable us to deliver a better service to our customers by making more informed decisions,” Hickson said.

Founded in 2007, Mash leverages proprietary algorithms, machine learning, and automation to provide consumer lending and payments solutions to thousands of customers a day. With offices in Finland, Sweden, Poland, Luxembourg, and Spain, the company has raised more than $153 million in funding (€138m).

“Mash is one of our partners who chooses to leverage the opportunities brought about by open banking to become more data-driven and deliver a better customer service,” Tink CEO and co-founder Daniel Kjellén said. He added that creating a win-win proposition for both Mash and its customers is “exactly what open banking is all about.”

With a single API integration, Tink offers cloud-based account aggregation (AIS) and payment initiation (PIS) services to help financial services companies bring new solutions to their customers. Tink provides data enrichment and categorization to ensure accuracy of user financial information, and offerings such as the its Tink Link SDK give companies an easy way to create a bank- and market-agnostic “one user authentication journey.”

Tink demonstrated its API platform at FinovateEurope 2018. Founded in 2012 and headquartered in Stockholm, Sweden, the company announced a partnership with Danish fintech Lunar Way in March, supporting payment initiation and PFM for Lunar Way’s mobile app. In February, Tink made even bigger fintech headlines, raking in $63 million (€56m) in new funding and going live in five new markets in Europe.

We featured Tink in our recent look at how banks can compete with Apple’s new credit card.

Finovate Alumni News

On Finovate.com

  • Equifax Buys PayNet for Commercial Lending Data.

Around the web

  • Ron Shevlin looks at the effects PayActiv’s technology has on the paycheck industry.
  • Thrive Global interviews Lynne Laube, COO and co-founder of Cardlytics.

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.

Yes, Banks Can Compete with Apple’s New Credit Card

What’s in your wallet? Or rather, what’s in banks’ clients’ wallets? Some sexy competition appeared on the market yesterday, as Apple announced the pending launch of its own credit card in collaboration with Goldman Sachs and Mastercard.

The card is touted more for its mobile and digital qualities than its shiny titanium finish. Despite the shine, however, many of the card’s features and offerings aren’t new. And that’s good news for banks. While traditional financial institutions aren’t as sexy as tech companies such as Apple, they are generally viewed as more trustworthy. And with that kind of foundation, all banks need to do is piece together the features into their own credit card offering and market it properly.

Fortunately, there are plenty of fintech firms out there to help. Here are some of the features Apple is promoting and a list of corresponding fintechs that can help banks take the same approach.

Physical card security

Apple boasts a titanium card with the customer’s name etched on the front– no credit card number, no cvv code, no expiration date. All of that information is tucked away inside the app. Physical card innovator Dynamics takes a similar (though admittedly less visually appealing) approach. The Pennsylvania-based company offers a computer-in-a-card that hides part of the card number, the cvv code, and expiration date on the physical card until the consumer enters their PIN into the card. As an added bonus, Dynamics also offers in-card loyalty and rewards features, as well as a card that hosts multiple numbers, allowing customers to toggle between debit and credit cards.

Chat functionality

As a company that is known for simplifying technology, Apple is taking a similar approach with its customer service. “Have a question? Just text,” is the message the company features on its card website. Fortunately, there are plenty of fintechs that help banks simplify their customer experience. Two such companies are Finn.ai and Clinc, both of which leverage AI to save banks money on customer service representatives, while simplifying and expediting access to answers via a chat interface.

PFM

One way to win over customers is to convince them you’ll help them organize their finances and ultimately save them money. That’s why Apple is offering in-app PFM capabilities. And while the technology hasn’t changed much since it debuted before the fintech craze, the colorful user interface is beautiful enough to convince anyone to want to look at their spending behavior.

Banks have seemingly endless options to compete with this feature. And while most financial institutions currently offer some sort of PFM capabilities, it’s worth looking at it from a superficial point of view. Utah-based MX and Sweden-based Tink both offer visually-pleasing interfaces that are arguably more beautiful than Apple’s and are backed by powerful PFM engines.

Mobile app security

Apple’s iPhone holds the hardware for both fingerprint and facial recognition technology, and since the company is reinforcing its focus on security, it is leveraging biometrics for account access. With the right software, banks can leverage fingerprint and facial recognition technology as well. Jumio, IDology, and Mitek all offer technology banks can implement for fast account access, as well as account onboarding.

Fast onboarding

With access to consumer data, Apple has an advantage of being able to quickly onboard new consumers using existing consumer information. There are multiple fintechs that help banks onboard consumers quickly, as well, including Digital Onboarding, Q2’s Gro Solutions, and Fenergo. Digital Onboarding motivates customers to open new accounts using incentives and gamification. Gro Solutions touts the ability for customers to open and fund accounts in under four minutes. And Fenergo takes a holistic approach to onboarding, providing banks a lifetime view of the client to help perform data refreshes, ongoing due diligence, and upsell and cross-sell opportunities.

Rewards

Credit card rewards programs may seem like a feature of the past, but rewards are certainly still relevant. With its new card’s rewards program, Apple once again seeks to simplify things by offering consumers daily rewards. Two fintechs, Cardlytics and Cartera Commerce, offer tried and true loyalty and rewards programs. These offerings not only boost consumer loyalty, they also offer banks further insight and analysis into consumer spending.

Apple’s new credit card is shipping this summer. Fortunately for banks, fintechs are here to help them compete.

Finovate Alumni News

On Finovate.com

  • eToro Buys Blockchain Company Firmo.

Around the web

  • ING Belgium and ING Netherlands invite Minna Technologies to participate in the ING FinTech Village accelerator.
  • Tink delivers split transactions feature.
  • Pitchbook ranks OurCrowd as most active Israeli VC firm in terms of the number of deals.

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.

Tink To Support Payment Initiation, PFM for Lunar Way

Danish fintech Lunar Way has partnered with Swedish fintech Tink to use the latter’s API platform to provide customers with an overview of their finances and initiate payments through the Lunar Way app, reports Henry Vilar of Fintech Futures (Finovate’s sister publication).

At the end of last year, Lunar received an account information service provider (AISP) license and a payment initiation service provider (PISP) license, the first fintech company in Denmark to do so.

These licenses commit banks to allow companies like Lunar Way to build new financial services on top of their data and infrastructure for the benefit of the users.

The partnership with Tink is aimed at accelerating this process, the firm says, making the most of its new licenses.

Lunar Way says that Tink’s entrepreneurial mindset and approach to the financial market are much like its own, which motivated the partnership.

Just under a month ago, Lunar Way received €13 million in funding to expand throughout the Nordics.

A few days before that, Tink was the one receiving a whopping €56 million to establish itself in Europe.

Tink demonstrated its technology at FinovateEurope 2017, winning Best of Show honors for its independent, consumer PFM app that gives users a PSD2-compliant, virtual banking experience. Founded in 2012, the company is led by CEO and co-founder Daniel Kjellén.

Finovate Alumni News

On Finovate.com

  • Signifyd Unveils Chargeback Solution for Online Merchants.
  • Tink to Support Payment Initiation, PFM for Lunar Way.

Around the web

  • Jumio wins trio of honors at 2019 InfoSec Awards: Market Leader in Compliance, Best Product in Biometrics, and Best Product in Fraud Prevention.
  • Tradeshift and Basware end takeover talk.
  • Veridium teams up with Blue Turtle Technologies to drive deployment of biometric technology in Africa.
  • TickSmith launches new transaction cost analysis (TCA) 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.

Tink Raises $63 Million, Goes Live in Five New European Markets

Less than a week away from its return to the Finovate stage, open banking platform Tink has raised $63 million (€56 million) in new funding. The investment, the largest for the Stockholm, Sweden-based fintech, was led by Insight Venture Partners and will help power the company’s growth plans.

Also participating in the Series C were current investors Sunstone, SEB, Nordea Ventures, and ABN AMRO Digital Impact Fund. New investors Christian Clausen, former Chair of the European Banking Federation, and Nikolay Storonsky, founder of fellow Finovate alum, Revolut, were involved in the round, as well.

“This funding round allows us to accelerate our European roll-out but also invest further in our data services,” Tink co-founder and CEO Daniel Kjellén said. “As Europe gradually embraces open banking, our platform has proved to be its rails and brains – delivering the technology that makes it possible.”

Kjellén also credited the company’s success to being “the first platform provider to combine Account Aggregation and Payment Initiation, the scale of our connectivity and our smart data products that make it all understandable.”

In addition to the funding news, Tink also announced that it is live in five new markets in Europe, making it possible for developers in the Nordics, the U.K., Austria, Germany, Belgium, and Spain to get access to financial data via Tink’s account aggregation API. The company said it plans to add four more offices this year to accommodate growth, doubling its European workforce to “around 300,” and hopes to have a presence in 20 markets by the end of 2019.

Calling Tink a “category leader” in the field of financial services API providers, Insight Venture Partners Managing Director Teddie Wardi praised the company’s “impressive list of current customers in both fintech and traditional banking” and said Tink was “well positioned” for continued expansion in Europe. “We are excited to welcome Tink into our portfolio and look forward to helping the company drive continued growth,” Wardi said.

Tink demonstrated its platform, which combines aggregation, account information, and payment initiation services to create a virtual banking experience in line with PSD2 regulations, at FinovateEurope 2017, winning Best of Show. Founded in 2012, the company launched its developer platform last spring to make it easier for developers to take advantage of its Account Aggregation and Categorization solutions. Tink also announced a partnership with BNP Paribas Fortis in the first half of 2018, integrating its aggregation, PFM, and payment initiation technology into the bank’s mobile app.


Join Tink as it demonstrates its latest technology live on the Finovate stage next week at FinovateEurope. For more information, including how to get your ticket and save your spot, visit our registration page today.

Finovate Alumni News

On Finovate.com

  • Tink Raises $63 Million, Goes Live in Five New European Markets.
  • DataSine Scores $5 Million Investment in Round Led by BBVA.

Around the web

  • iProov announces meeting the NIST standards for genuine presence assurance by the National Physical Laboratory (NPL).
  • BBVA Compass hires new chief information security officer, Brian Fricke.
  • Ping Identity announces updates to its PingFederate, PingAccess, and PingDirectory.

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.

Tink Launches Developer Platform

Swedish fintech Tink introduced its API developer platform today. With Tink’s API, developers will be able to take advantage of the company’s Account Aggregation and Categorization solutions to design and launch products for end users. The offering from the two-time Best of Show winner provides unanimous access to financial data from 300 FIs – all from a single API. By managing authentication and the customer-bank interaction, Tink’s platform frees developers to focus on the creative work of building and deploying new solutions for customers.

“Businesses can now come to us and implement something new in just a day, instead of having to wait for banks to open their APIs in two years time,” Tink CTO Fredrik Hedberg said. “By democratizing access to financial data, Tink is tearing down the barriers to innovation, and becoming the missing link that has stopped these ideas from becoming reality.”

The developer platform initially will support Nordic banks, with a broader European roll-out anticipated “soon.” The technology is already being used by firms like SBAB, which is leveraging the API to launch a “mortgage challenger” solution to help would-be homebuyers get the best deal on financing a new home.

Tink CTO Fredrik Hedberg and CEO Daniel Kjellen.

Tink’s API will also help developers maximize the opportunity of PSD2, new Europe-wide regulations that will enable third-parties to access consumer financial data upon consent in order to deliver innovative, new products to consumers. And while PSD2 regulations will not be in full effect for another year and a half, companies like Tink have been preparing themselves for this kind of relationship between FIs and third party developers since inception.

“At Tink we have been trailblazing PSD2 since 2012,” Hedberg said. “The ability to aggregate data is what has enabled Tink to grow into the business it is today. We know from experience that there are countless developers out there with brilliant ideas – but innovation has been held back by the lack of access to financial data.”

The company noted in its announcement that because it aggregates more than PSD2 payments data, its platform can be effective for developers in a variety of sectors who want to leverage financial data to better enhance their customer-facing products.

Founded in 2012, and based in Stockholm, Tink demonstrated its account aggregation technology at FinovateEurope 2017, winning Best of Show for a second time. Last month, Tink announced a partnership with BNP Paribas Fortis that will integrate its account aggregation, PFM, and payment initiation technology into the Belgian bank’s mobile app. The company was named to CB Insights’ Fintech 250 list last June. In October, Tink picked up $16.5 million in funding which took the company’s total capital raised to more than $30 million, and set the stage for further expansion into the European market. Tink also announced a trio of new bank customers: Nordea, Nordnet, and fellow Finovate alum, Klarna.

Daniel Kjellén, Tink co-founder and CEO, participated in our FinovateEurope 2018 debate: Who Will Seize the Day & Really Profit from the Open Banking Revolution? at FinovateEurope 2018.