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Finovate Global Spain: Talking AI and Wealth Management with GPTadvisor

By David Penn Posted on August 23, 2024
Categories: Finovate Global, GPTadvisor, Revolut, VISA

This week’s edition of Finovate Global features an in-depth interview with Nacho Díaz de Argandoña, Chief Product Officer with Spain-based fintech, GPTAdvisor.

Founded in 2023 and headquartered in Madrid, GPTadvisor made its Finovate debut earlier this year at FinovateEurope 2024 in London. GPTadvisor offers a Gen AI platform that is specifically built to boost the productivity of financial advisors and wealth managers, as well as enhance client engagement.

This year, GPTadvisor announced that it has successfully completed a capital expansion round that featured support from two major Spanish venture capital firms, Kfund and JME Ventures. The company also announced that has launched a version of its GPTadvisor solution in the GPT Store by OpenAI. This launch made GPTadvisor the first portfolio management app available in the OpenAi store.

We caught up with Nacho to talk about current trends in wealth management and what AI can bring to the industry.

What problem does GPTadvisor solve and who does it solve it for?

Nacho Díaz de Argandoña: GPTadvisor addresses a critical challenge in the wealth management sector: the need for increased efficiency and productivity to remain competitive in an increasingly complex financial landscape. Financial advisors often face time-consuming, repetitive tasks such as investment research, portfolio management, and compliance. These tasks can detract from their prime objective, which is increasingly harder to accomplish: to nurture strong relationships with their clients and provide them with truly personalized and strategic advice.

GPTadvisor solves this context by providing advanced AI-driven tools that automate and streamline many of these processes, in a secure, private and controlled environment. Our wealth management platform uses the latest generative AI technology to assist financial advisors in quickly finding the right investment product, analyzing and comparing portfolios, elaborating comprehensible narratives to excel in client engagements and, ultimately, helping their clients reach their financial goals. By dramatically improving productivity, GPTadvisor allows advisors to focus more on client relationships and strategic decision-making.

The primary beneficiaries of our solutions are wealth management entities, including financial advisory firms and independent financial advisors. We see this product as a truly global proposition, where advisors anywhere around the globe can really start engaging in a new way of working.

How does GPTadvisor solve this problem better than other companies or solutions?

Díaz de Argandoña: GPTadvisor emerged during the generative AI wave with a clear objective: to apply this groundbreaking technology specifically to the wealth management sector. This focus distinguishes us from many other tech companies that, while experienced in general AI, are now struggling to adapt to the fundamentally different approach required by generative AI. Our foundation in this new paradigm allows us to harness its full potential in ways that others find challenging.

Having said that, we take AI very cautiously. We acknowledge there is a lot of noise and over-reliance in the industry where we expect AI to solve all our problems, and that is not the case. We focus on the use cases that provide the biggest gains in productivity, but without putting compliance at risk. This is why we proactively collaborate with regulators – FCA in the UK and CNMV in Spain – to explore the risks this technology involves and frame the guidelines to follow in order to successfully implement these capabilities.

Our core team brings over 40 years of collective experience in the wealth management industry. This deep expertise has enabled us to develop an innovative product from the ground up, in close collaboration with key industry partners. We work closely with numerous wealth management entities worldwide to ensure that our solutions are aligned with industry needs, making them both relevant and impactful.

Who are GPTadvisor’s primary customers. How do you reach them?

Díaz de Argandoña: GPTadvisor’s primary customers range from big commercial banks, private banks, and wealth management firms, to financial advisory entities and independent financial advisors. We work with entities that are seeking innovative solutions to enhance their productivity, streamline their processes, and ultimately provide more value to their clients by leveraging the latest technology in the market.

Interestingly, we’ve been receiving considerable inbound interest from various industry entities, driven in part by the growing enthusiasm for generative AI. As a result, we are actively engaging these entities and incorporating them into our aggressive generative AI product roadmap. This roadmap is designed not only to meet current market demands, but also to anticipate and continuously bring the benefits of this technology that is moving at unprecedented velocity.

We’ve also had the opportunity to pitch and present our work in numerous industry events, just like what we did with you last February at FinovateEurope in London. These platforms allow us to demonstrate the unique capabilities of our solutions to a wide audience that has generated very interesting conversations for us.

By capitalizing on the current momentum around generative AI and maintaining a strong and cold focus on the needs of wealth management professionals, I think we are successfully positioning GPTadvisor as the go-to solution for entities looking to stay ahead in this rapidly evolving landscape.

Can you tell us about a favorite implementation or deployment of your technology?

Díaz de Argandoña: One of our most exciting recent implementations is our quick portfolio analysis tool. This innovative function allows advisors to simply take a picture of a client’s portfolio with their phone and receive an instant, comprehensive analysis, thoroughly explained. The analysis includes generated insights on performance, risk, fees, and even comparisons with model portfolios. All in one go. This feature exemplifies the kind of intuitive, productivity-boosting tools we aim to deliver, making sophisticated portfolio analysis as simple as taking a photo.

Another feature we’re particularly proud of is our fund documentation auto-read feature. This tool is going to be a game-changer for GPTadvisor users globally, as they are now going to be able to instantly find and chat about key data and information in the documentation of thousands of investment funds. Whether they need details on fund performance, fees, or any other critical information, this tool streamlines the process, saving valuable time and enhancing decision-making capabilities.

These features are just the tip of the iceberg. We’re seeing new productivity functions like these arise on a weekly basis, as our team is able to move in sync with the fast-paced advancements in generative AI. Our ability to rapidly bring ready-to-use features to the wealth management space is one of the key strengths that sets GPTadvisor apart. It’s incredibly rewarding to see these innovations in action, transforming how wealth managers spend their valuable time and providing them with the tools they need to stay competitive.

What in your background gave you the confidence to tackle this challenge?

Díaz de Argandoña: The confidence to tackle challenges at GPTadvisor stems from the extensive experience and proven track record of our CEO, Salvador Mas. Before founding GPTadvisor, Salvador served as the Chief Digital Officer at Allfunds for five years, where he played a pivotal role in the company’s digital transformation and its successful public offering. Prior to his tenure at Allfunds, Salvador founded several startups at the forefront of innovation in wealth management. His most recent venture, Finametrix, a portfolio management platform, was eventually acquired by Allfunds.

This entrepreneurial experience, coupled with his leadership in a global financial powerhouse, has provided Salvador with deep insights into the challenges and opportunities within wealth management. It has also equipped him with the expertise to leverage technology in creating innovative solutions that address real-world problems in the sector.

Under Salvador’s leadership, we have fostered a highly talented, agile, and focused team at GPTadvisor, which has successfully grown the product and its capabilities since its inception just over a year ago.

With this strong foundation, we are confident that we are well-positioned to lead the way in bringing cutting-edge generative AI solutions to the industry.

What is the fintech ecosystem in Spain like? What is the relationship between fintechs, banks, and traditional financial services companies in the country?

Díaz de Argandoña: The relationship between fintechs and traditional financial services companies in Spain is characterized by a mix of competition, collaboration, and co-opetition.

In the specific case of wealthtech, traditional institutions have maintained their market share despite some success stories (such as the robo-advisor Indexa Capital and the neobank MyInvestor). However, the majority of advisory services continue to be provided by traditional institutions like Santander, BBVA, or CaixaBank, which have successfully embraced digital transformation.

At GPTadvisor, we are collaborating with both types of entities, introducing generative AI in both traditional and disruptive institutions.

Left to right: Nacho Díaz de Argandoña and GPTadvisor CEO Salvador Mas at FinovateEurope 2024.

You demoed at FinovateEurope earlier this year. How was your experience?

Díaz de Argandoña: FinovateEurope was an excellent experience for us. The event was professionally and thoughtfully organized, making us, as demo participants, feel like true protagonists. It provided a valuable platform to connect with a wide range of wealth management professionals, investors, and industry stakeholders, which allowed us to test our proposition with real prospects in London—one of the world’s premier fintech hubs.

As we prepare to demo our solution again, this time in New York, it feels like a natural next step in our journey. Entering the U.S. market is a key priority for us, as we believe our solution can significantly enhance the day-to-day operations of financial advisors across the country.

We’ve been steadily growing our platform, adding a host of new features and enhancements, and we can’t wait to showcase these developments on stage. We’re confident that the New York demo will be another great experience for us, helping us to further expand our presence in a critical market.

What are your goals for GPTadvisor? What can we expect to hear from you in the months to come?

Díaz de Argandoña: Over the past year, we’ve focused intensely on refining and validating our proposition in the market. We’ve been building a next-generation AI-native platform from the ground up, one that evolves in tandem with the rapid advancements in AI technology. Our approach has involved close collaboration with leading financial entities worldwide, ensuring that we stay connected to the real-world challenges and opportunities that need solving.

I believe we’re now at a tipping point where the product is ready for greater scale. GPTadvisor is now ready to support thousands of financial advisors work more productively and deliver more value to their clients. Our plan is launching our SaaS model at global scale through the second half of the year to reach more clients and gain more leadership in the market.

As we continue to explore the full potential of generative AI and its applications within our sector, I can’t imagine a more exciting time to be involved in shaping the future with GPTadvisor. We’re just getting started, and there’s much more to come.

We hope you enjoyed our conversation with Nacho. In case you haven’t noticed, we’re making a big deal out of wealthtech next month at FinovateFall. Check out our coverage of keynote speakers and power panelists focusing on top issues in wealthtech and wealth management, our preview of wealthtech-focused demoing companies, and more!

Here is our look at fintech headlines around the world.

Asia-Pacific

The Commonwealth Bank of Australia teamed up with the Bank of New York Mellon to accelerate cross-border payments for Australians.
Five business groups have indicated interest in applying for virtual bank licenses from the Bank of Thailand.
Singapore-based neobank Fingular announced topping the four million customer milestone.

Sub-Saharan Africa

Kenyan payroll provider Workpay secured $5 million in funding in a round that featured Visa as an investor.
Nigeria’s Afrigopay launched instant POS settlement for AfriGO card transactions.
Pan-African cryptocurrency exchange Yellow Card announced a strategic partnership with blockchain platform Fireblocks.

Central and Eastern Europe

Germany’s Upvest announced a partnership with Deutsche Bank.
Romania-based AI and blockchain technology company Humans.ai acquired Starfish Technologies, creator of TensorChain.
Kosovo’s central bank called a new co-operation agreement with the International Finance Corporation (IFC) a “significant step forward” in the path toward greater digitization in financial services.

Middle East and Northern Africa

The National Bank of Ras Al Khaimah partnered with Bitpanda Technology Solutions to offer a digital asset management platform for UAE investors.
Revolut granted access to Israeli payment rails by the Bank of Israel.
Egyptian fintech Lucky secured $3 million convertible note.

Central and Southern Asia

Pakistan-based fintech PostEx raised $7.3 million in pre-Series A funding to support its expansion in the GCC.
Banking Circle teamed up with Indian cross-border payments firm Skydo to enhance cross-border collections for Indian businesses.
Indian transaction banking platform TransBnk raised $4 million in Series A funding.

Latin America and the Caribbean

Mercado Libre’s fintech division, Mercado Pago, introduced a USD-based stablecoin in Brazil.
Uruguayan cross-border payments platform dLocal forged a strategic partnership with Uphold.
BucksApp, a B2B fintech startup headquartered in Paraguay and Bolivia, raised $1 million in funding.

Photo by Alex Azabache

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Finovate Global Singapore: AI, Quantum Computing, and Sustainable SMEs

By David Penn Posted on July 26, 2024
Categories: Alumni News, Daily news, Finovate Global, VISA

This week’s edition of Finovate Global highlights recent fintech news from Singapore.

Monetary Authority of Singapore announced plans to invest $74.36 million (100 million Singaporean dollars) to fund quantum computing and AI projects. The funding is part of the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) designed to support banks and other financial institutions as they innovate and develop capabilities in both quantum computing and artificial intelligence (AI) technologies.

This month’s investment comes in the wake of a $110 million infusion into FSTI back in August 2023. The FSTI 3.0 was launched in 2022 as part of an effort to fortify and future-proof Singapore’s position as a major international fintech hub. MAS originally pledged 150 million Singaporean dollars to the scheme over a three-year period, and this month’s investment is an addition to that amount. The scheme is live until March 2026, but could be extended.

Given the emphasis on AI in financial services of late, MAS’s interest in quantum computing and its applications for banks and financial services companies is especially noteworthy. MAS will support eligible financial institutions with up to 50% funding for the construction of quantum computing technology centers. Companies that develop quantum computing-based cybersecurity solutions can receive up to 30% in co-funding.

With regard to AI, MAS is also supporting the development of AI innovation centers. Again, one of the main areas of emphasis is cybersecurity, which MAS identified as a use case for the first pilot project. Noting that AI tools have become “more widely accessible” and that “financial institutions have been progressively adopting AI,” MAS also observed that the degree of “AI-readiness and adoption” across financial institutions in Singapore is uneven. The AI component of FSTI 3.0 is designed in large part to remedy this.

Blockchain-based financial infrastructure company Partior has raised more than $60 million in Series B funding. The round was led by Peak XV Partners (previously known as Sequoia Capital India & SEA). Valor Capital Group and Jump Trading Group also participated as new investors along with existing shareholders J.P. Morgan, Standard Chartered, and Temasek.

Founded in 2021, the Singapore-based company offers banks unified, ledger-based interbank rails for real-time clearing and settlement. Partior’s 24/7 blockchain network works with real-time local currency payment and RTGS systems globally and facilitates direct and indirect settlement flows with market participants. The shared ledger further supports transfers with real-time settlement finality, providing instant liquidity and transparency compared to the sequential processing typical of legacy payment systems.

“Partior is breaking down silos and rewriting the rules for cross-border clearing and settlement,” Partior Chief Executive Officer Humphrey Valenbreder said. “We see a very bright future for blockchain-based frictionless, cross-border transactions. Having some of the world’s best banks and investors back our vision validates this even further.”

The fresh capital will fuel new capabilities including intraday FX swaps, cross-currency repos, Programmable Enterprise Liquidity Management, and Just-in-Time multi-bank payments. The funding will also enable Partior to integrate a range of new currencies beyond currently supported USD, EUR, and SGD.

“As one of the founding shareholders of Partior, we’ve always believed in the transformative potential of its technology to shape global financial market infrastructure. This latest round of investment is a testament to the incredible progress Partior has made toward this endeavor,” Temasek Managing Director for Investment (Blockchain) Pradyumma Agrawal said.

DBS and Deloitte have teamed up to launch the Sustainability Accelerator Tool. The new offering will help SMEs in Singapore accurately assess their sustainability maturity levels and identify and address gaps in their efforts.

The two firms hope to empower 1,000 SMEs in Singapore over the next 12 months with the new solution, and plan to introduce the tool to other markets from the next year forward.

“The Sustainability Accelerator Tool is unique in its ability to provide SMEs with meaningful and practical guidance,” Deloitte Southeast Asia Sustainability & Climate Leader Brian Ho said. “Leveraging Deloitte’s expertise in sustainability transformation, it not only identifies strengths and gaps, but also provides actionable recommendations to enhance sustainability performance.”

Three key benefits of the new offering are industry-specific analysis, which provides insights into unique sustainability challenges; customized strategic recommendations based on the degree of progress (“emerging,” “maturing,” or “leading”) the business has achieved in its path toward greater sustainability; and regional adaptability to ensure that the solution can be used by SMEs across Asia.

SMEs using the tool also get a customized Sustainability Readiness Report which gives them an analysis of the company’s sustainability maturity, as well as provides insights on how to address any specific sustainability challenges they may have.

“The Sustainability Accelerator Tool is the latest in our ongoing efforts, where we strive to futureproof SMEs through practical and holistic solutions,” DBS Group Head of Corporate and SME Banking Koh Kar Siong said.

The introduction of the Sustainability Accelerator Tool follows the spring launch of DBS’s ESG Ready Programme to help SMEs efficiently transition to lower carbon business models. Headquartered in Singapore, and boasting a presence in 19 markets, DBS provides a full range of consumer, SME, and corporate banking services. The firm has been named “Safest Bank in Asia” by Global Finance for 15 consecutive years from 2009 to 2023.

Here is our look at fintech innovation around the world.

Central and Eastern Europe

International embedded finance platform Liberis announced its entry into the German market in partnership with Nexi.
Lithuanian identity verification company iDenfy unveiled its automated utility bill verification tool.
Germany-based private markets platform bunch secured $15.5 million in Series A funding.

Middle East and Northern Africa

Visa announced a significant partnership with First Abu Dhabi Bank (FAB) to grow the Visa B2B Connect network regionally.
UAE-based fintech startup, Mamo, completed a $3.4 million funding round to fuel expansion of the company’s product line for SMEs.
Bank of Israel has chosen 14 teams of private and public sector professionals to investigate use cases for a digital shekel.

Central and Southern Asia

HSBC India teamed up with Open Financial Technologies to streamline payment operations for Indian business customers.
Indian digital payments company Paytm agreed to a collaboration with Axis Bank.
India-based payments and API banking company Cashfree Payments secured a payment aggregator-cross border license from the RBI.

Latin America and the Caribbean

The Brazilian central bank announced a pause in their plan to add recurring payments to its Pix platform.
Argentine fintech Tapi secured $22 million ahead of its expansion into Mexico.
BBVA opened an international cybersecurity center in Mexico.

Asia-Pacific

Melbourne, Australia-based Airwallex secured an Australian Financial Services License (AFSL) from the Australian Securities and Investment Commission (ASIC) the first major payments company to do so.
Bank Indonesia and Bank of Korea inked a MoU to encourage cross-border payments between the two countries.
In a bid to become a “global fintech hub,” the Monetary Authority of Singapore (MAS) has invested $74.36 million (100 million Singaporean dollars) into quantum computing and AI projects.

Sub-Saharan Africa

South African fintech Peach Payments acquired custom software development firm Operativa.
Kenya’s Diamond Trust Bank forged a partnership with Network International.
Nigerian wealth management platform Risevest announced plans to acquire Kenyan fintech Hisa.

Photo by Elina Sazonova

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Fintech Rundown: A Rapid Review of Weekly News

By David Penn Posted on July 15, 2024
Categories: Alkami Technology, Alumni News, Coinbase, Daily news, Envestnet, Fintech Rundown, VISA

We’re starting off the newsweek with a bang as Bain Capital announces that it will take wealthtech and Finovate alum Envestnet private in a deal valued at $4.5 billion. Be sure to check back all week long with the latest fintech news and headlines.

Crypto / DeFi / Web3

Payment orchestration platform FinMont partners with Bitcoin and cryptocurrency payment servics firm, BitPay.

Coinbase launches new web app to help users better manage their digital assets portfolio.

Blockchain payment network Partior secures $60 million in Series B funding.

Wirex and Visa announce an expanded partnership to promote Web3 payments.

Payments

Mangopay teams up with European marketplace ManoMano to bring new payment capabilities to marketplace merchants.

Allied Payment Network introduces new Chief Financial Officer Hank Vanjaria.

U.K. payments platform Payset partners with ClearBank to access the U.K. payment system for local and cross-border transactions.

BNPL company Affirm teams up with Canadian retailer RONA, enabling the store to offer flexible online payment options.

Singapore based fintech Qashier launches its payment linked loyalty program, Treats.

TerraPay partners with YeePay to enhance the customer experience.

Nala raises $40 million to build B2B payments platform, scale remittance services.

Stripe reaches $70 billion valuation.

Klarna considers Goldman Sachs, Morgan Stanley, and JPMorgan for lead banking positions for a potential 2025 IPO.

Payments processor Tapi lands $22 million.

Temenos teamed up with Visa to integrate Visa Direct with Temenos Payments Hub and make available to banks via Temenos Exchange.

Investing and wealth management

Apex Fintech Solutions launches its real-time, B2B investment infrastructure, Ascend for Fintechs.

Bain Capital to buy Envestnet for $4.5 billion.

InvestFi forges partnership with HiFin Technology.

Small business finance

America First Credit Union turns to Loquat to enhance onboarding for small business members.

J.P. Morgan Payments selects Slope to provide clients access to a short-term financing solution, leads the fintech’s new round of $252 million in combined debt and equity.

9Spokes launches automated cashflow tool to help financial organizations elevate financial insights for SMBs.

Digital banking

Digital wealth management solutions company Quantifeed forges partnership with banking technology firm Thought Machine.

Digital banking solutions provider Alkami receives certification by J.D. Power for its mobile banking platform.

Banco Santander introduces a new digital service for customers with hearing challenges that translates the bank’s website into British Sign Language (BSL).

Flybits integrates with Q2’s Digital Banking Platform.

Trexis launches suite of digital banking solutions.

Anne Boden quits Starling Bank to focus on AI.

Brightfin launches healthy spending app to remove anxiety around money.

Insurtech

Digital insurance firm Lemonade launches new home insurance offering in the U.K.

Insuritas partners with Integral Group Solution (IGS) to integrate home services product into its embedded insurance platform.

Lending

Mexican fintech OCN secures $86 million in Series A funding.

Open banking

Salt Edge launches the latest version of its Open Banking Gateway API, API V6.

Goldman Sachs’ alternatives unit is leading a consortium investing $540 million in a continuation vehicle created by VC firm NEA, which includes stakes in 11 of NEA’s companies, including Plaid.

Photo by Lukas

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Fintech Rundown: A Rapid Review of Weekly News

By Julie Muhn (@julieschicktanz) Posted on June 10, 2024
Categories: Fenergo, Fintech Rundown, Mambu, Salt Edge, SpyCloud, TransUnion, VISA

The summer fintech news slowdown is coming soon, but it hasn’t taken hold yet. Fintech news picked up last week, with multiple funding rounds and product announcements. Stay tuned to read this week’s news as we post updates and evolutions.

Embedded finance

Cross-border payments platform PingPong unveils its embedded lending solution.

Digital banking

Dubai-based NOW Money raises $4 million in funding.

Lending

Netherlands-based BridgeFund turns to Mambu to enhance its SME lending operations.

Payments

Dash Solutions expands its collaboration with Visa to provide real-time money movement.

Payments platform ConnexPay launches its Intelligent PayOuts technology.

Curve appoints Nancy Yaffa as USA CEO.

Digital receipts company Slip raises £2.5 million in seed funding.

Shopify acquires Slack alternative startup.

Challenger banking

U.K.-based Starling Bank reported its third full year of profitability.

Digital identity

IDVerse makes its GenAI ID verification solution available on Temenos Exchange.

Financial compliance software provider Fenergo announces collaboration with essential business services company Vistra.

Fintracking launches pay-as-you-go platform for ID verification.

Regtech

U.S.-based merchant acquirer Merrick Bank forges strategic partnership with automation and compliance solutions provider Kompliant.

Wealth management

AI for financial advisors startup Jump raises $4.6 million.

Digital investment infrastructure provider WealthKernel forges partnership with wealth-building and educational platform Fint Invest.

eToro teams up with X to livestream financial education content on the social media channel.

Open banking

Canada-based open banking solutions provider Salt Edge announces partnership with Moldova’s Moldindconbank.

Insurtech

Mbank and Policybazaar.ae partner to empower customers with access to insurance solutions.

Credit reporting

TransUnion goes live with trended affordability data.

Fraud prevention

Account takeover prevention specialist SpyCloud raises $35 million in new financing.

Capital markets

FX and interest rate derivatives trading technology company Derivative Path launches new commodities trading capability, DerivativeEDGE Commodities.

Proptech and mortgagetech

Real estate investment management solutions provider Agora acquires Clearshift’s real estate division.

Small business finance

Bold Commerce announced its new upsell and cross-sell capabilities for Bold Subscriptions for Shopify Checkout through an integration with Bold Upsell.

Airbase launches advanced spend analytics and vendor management capabilities.

Photo by ROBIN WORRALL on Unsplash

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Fintech Rundown: A Rapid Review of Weekly News

By Julie Muhn (@julieschicktanz) Posted on June 3, 2024
Categories: 10x Banking, Atomic FI, DriveWealth, Fenergo, Fintech Rundown, Insuritas, iProov, MasterCard, Meniga, Plaid, Sezzle, Temenos, VISA

Will the new month bring new challenges in fintech? Or will the news cycle take a much-needed vacation as summer approaches? Stay tuned to this week’s news for updates and evolutions throughout the week.

Digital banking

Cloud-native core banking operating system 10x Banking enters collaboration with Deloitte Australia.

Monzo reports first profitable year.

Genesis offers new tools and incentives to financial industry software developers.

Meniga partners with Handelsbanken in Norway to amplify digital banking experience.

Fraud prevention

iProov achieves FIDO Alliance certification for facial biometric identity verification.

Fenergo unveils new AI-powered Client Lifecycle Management (CLM) tool to help customers keep pace with evolving regulations.

U.K.-based digital compliance and AML solutions provider SmartSearch launches its International Individual Check solution.

Bunq improves its fraud-detection model’s training speed nearly 100x using NVIDIA AI.

Payments

Payouts orchestration PayQuicker launches its on-demand, earned income access product, Insta-Pay.

Uruguayan cross-border payment platform dLocal partners with cross-border money transfer firm Ria Money Transfer.

Payments leader Jacob Eisen named ICBA Payments President and CEO.

Forward announces $16 million seed round led by Commerce Ventures, Elefund, and Fiserv.

The Bank of London forms strategic partnership with allpay Limited to improve banking and payments in the U.K. Social Housing market.

Vallarta Supermarkets taps Sezzle to offer Buy Now, Pay Later for grocery purchases.

Onbe to power Eisen’s digital solution that issues funds to consumers following account closures.

Temenos and Mastercard join forces to expand cross-border payment capabilities through Mastercard Move.

allpay partners with Enfuce to provide payments for the U.K. public service sector.

NCR Atleos launches U.K. ATM cash deposit service.

REPAY empowers credit unions with enhancements to CU*Answers integration.

Small business finance

Corporate card and spend management provider Torpago raises $10 million in Series B round co-led by Priority Tech Ventures and EJF Ventures.

Commercial lending software provider for U.S. financial institutions, Abrigo, launched its commercial loan origination solution for SME lending.

insightsoftware acquires Fiplana to strengthen Qlik’s extended planning, analysis, and write-back capabilities.

i2c and Affiniti Finance partner to expand financial access for America’s underserved small businesses.

Spend management company Ivalua forges a collaboration with Visa.

Credit Cards

Credit repayment fintech Incredible raises $1 million.

Pinnacle Bank partners with CorServ to implement a modern credit card program for commercial, business, and consumer customers.

Insurtech

Scott Credit Union selects BUNDLE by Insuritas to launch its insurance agency.

Investment and wealth management

Brokerage-as-a-Service innovator DriveWealth forges new partnership with Turkish fintech Papara.

Lending

Plaid unveils Consumer Report, a new solution that brings businesses real-time cash flow data along with credit risk insights through Plaid Check, its consumer reporting agency.

Open banking

Mastercard teams up with Atomic to launch new open banking solutions.

Financial inclusion

Visa teams up with non-profit Plain Numbers to support inclusive financial services for adults in the U.K./

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Visa Unveils New Subscription Management Solution

By David Penn Posted on April 3, 2024
Categories: Alumni News, Daily news, VISA

Payments leader Visa launched its Subscription Manager service this week.
The new offering enables financial institutions to give Visa cardholders an easy way to track and manage their subscriptions.
Visa made its first Finovate appearance at FinovateSpring in 2010.

Expected to reach $406 billion by 2025, the international subscription economy has been an increasingly attractive opportunity for fintechs and financial services companies alike. The growth of the subscription economy has meant a surge in demand for solutions to help consumers deal with their ever-growing reliance on subscription services. Among Finovate alums alone, firms from Minna Technologies to Subaio have demonstrated leadership in this “subscription management” space.

As such, it is little surprise to learn that global payments leader Visa is getting into the game. The company announced the launch of its Subscription Manager service this week. The new offering will enable financial institutions to provide Visa cardholders with an easy way to track and manage their subscriptions.

“Managing subscriptions can often feel like a maze, with consumers sometimes feeling trapped in a cycle of confusing charges,” Visa Global Head of Issuing Solutions Kathleen Pierce-Gilmore said. “Our goal is to make this process simpler and ensure cardholders know exactly where their money is going, and when.”

Visa’s Subscription Manager streamlines information on recurring payments, locating that data in one place to make it easy for cardholders to see where their card details are stored, view the recurring payments that are on each card, and to stop recurring payments where services are no longer wanted. Whether the subscription type is a streaming service, a gym membership, or a utilities payment, Visa’s Subscription Manager gives its cardholders a new level of convenience and control when it comes to ensuring that they are only subscribed to the actual services they want and use.

Currently available as a pilot project in select regions, Subscription Manager is the latest addition to Visa’s Digital Enablement product suite. The suite includes a set of tools and solutions designed to enable issuers to offer better digital experiences for their cardholders.

Visa has been a Finovate alum since its debut at FinovateSpring in 2010. A leader in digital payments, Visa facilitates transactions across more than 200 countries and territories. The company is publicly traded on the NYSE under the ticker “V” and has a market capitalization of $556 billion. Ryan McInerney was appointed CEO in February 2023.

Interested in demoing at FinovateSpring in San Francisco in May? We are happy to read applications from innovative companies with new solutions that are ready to show. Visit our FinovateSpring hub today to learn more.

Photo by Pixabay

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Visa and Mastercard Settle Swipe Fee Lawsuit

By David Penn Posted on April 1, 2024
Categories: Alumni News, Daily news, MasterCard, VISA

Visa and Mastercard have reached a settlement that will lower interchange fess for U.S. merchants.
The settlement, which still must be approved by the court, calls for a five-year reduction in fees as well as changes that will enable greater optionality for merchants when it comes to credit card transaction surcharging.
U.S. merchants stand to save more than $29 billion over the next five years due to the settlement.

Chalk one up for U.S. merchants.

There are many factors that drive innovation in financial services: technological change, competition, regulatory adjustments … this week, recalled a fourth, less common method: the lawsuit.

Visa and Mastercard announced that they have reached a major settlement with merchants in the U.S. that will see interchange fees both lowered and capped. The settlement is the end result of a lawsuit that extends back to 2005. The lawsuit alleges that merchants paid excessive fees to accept Visa and Mastercard credit card transactions. Further, the suit claims that both companies and their member banks were in violation of antitrust laws in doing so.

Per the settlement, these interchange fees – also known as swipe fees – will be lowered and capped until 2030. Hilliard Shadowen, the law firm that represented the merchants in the case, estimates that U.S. merchants will save more than $29 billion over the next five years. Additionally, the settlement will also mark the end of “anti-steering restrictions” and potentially pave the way for more competitive pricing with regards to swipe fees.

Steve Shadowen, founding partner at Hilliard Shadowen, said the settlement represented “comprehensive market-based solutions to too-high swipe fees” as well as “immediate fee relief to merchants as they make these new competitive tools work for them.”

Looking under the hood, the settlement calls for a reduction in swipe fees of at least four basis points (0.04 percentage points) for three years. At the same time, these fees must be at least seven basis points below the current average for the next five years. These changes are still subject to court approval, and Mastercard has suggested that, once approved, they still would not go into effect until late this year or early next.

“This agreement brings closure to a long-standing dispute by delivering substantial certainty and value to business owners, including flexibility in how they manage acceptance of card programs,” Mastercard Chief Legal Officer, General Counsel and Head of Global Policy Rob Beard said.

“We are making these concessions while also maintaining the safety, security, innovation, and protections, rewards, and access to credit that are so important to millions of Americans and to our economy,” Kim Lawrence, President, North America, Visa, said in a statement.

The actual impact of these changes on consumers using credit cards is uncertain. The settlement will enable merchants to add surcharges to cards with higher swipe fees. This could discourage the use of some premium cards that are attractive to consumers because of their robust rewards, but can be costly to merchants, who may pay swipe fees of as much as 4% per transaction according to the National Retail Federation. Swipe fees currently average approximately 2% per transaction. Merchants will also be able to offer incentives and discounts to encourage consumers to use credit cards with less expensive fees.

Additionally, the settlement includes an allocation of $15 million for an independent merchant education program. Available for free, the program will help ensure that all merchants are aware of new changes.

Photo by Pixabay

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Fintech Rundown: A Rapid Review of Weekly News

By David Penn Posted on April 1, 2024
Categories: ACI Worldwide, Alkami Technology, Alto Solutions, Alumni News, Arroweye Solutions, Baker Hill, BlueVine, Chimney, Daily news, Fintech Rundown, ieDigital, iProov, nCino, Q2, VISA

The first week of April begins with a resolution in the Sam Bankman-Fried saga as the former FTX founder and infamous crypto entrepreneur receives a sentence of 25 years in prison.

Crypto

Sam Bankman-Fried sentenced to 25 years in prison for its role in the FTX scandal.

Web3 payment solution provider Alchemy Pay announces investment in LaPay.

Issuer-processor Paymentology partners with Web3 and digital asset corporate spend management platform Rain.

Lending

Loan origination specialist Baker Hill implements CrowdStrike’s Falcon platform.

Financial wellness

Financial guidance specialist Chimney announces that it now has 30 banks on its client roster.

Payments

BankPro Limited, a subsidiary of FxPro Group, partners with just-in-time payment card provider Arroweye Solutions.

Visa launches Subscription Manager to help consumers track subscriptions and recurring payments.

Canada-based payments company Nuvei agrees to be acquired by Advent for $6.3 billion.

Versapay taps Gaby Kozakov as its new Chief Technology Officer.

All-in-one payments platform ConnexPay introduces new CEO Ben Peters.

Modern Treasury launches new Professional Services offering.

MENA-based fintech Valu partners with noon Payments.

Arab Financial Services teams up with ACI Worldwide to promote payment modernization.

Brim Financial secures $85 million in Series C funding to fuel global expansion.

Trustly and Cross River Bank pioneer FedNow transactions.

Check to power Wave’s expanded payroll offering.

Credit Reporting

FinDoc, a fintech based in Malaysia, announces a strategic collaboration with credit reporting agency CTOS Data Systems.

Wealth Management

Clearwater Analytics acquires risk and performance analytics solutions from global financial services firm Wilshire Advisors.

JPMorgan Chase reports major adoption of its Wealth Plan digital money coach, with a million personalized plans created in the year after launch.

Alternative asset platform Alto appoints CEO Scott Harrigan as President and Beth Bellon as SVP of Operations.

Digital Banking

Bluevine introduces a trio of new business checking plans.

Ally Financial introduces new CEO Michael Rhodes.

Digital banking solutions provider Alkami partners with SWIVEL to give its clients access to new loan payment capabilities.

nCino unveils new upgrades to its Consumer Banking Solution.

Q2 appoints Katharine Briggs as Chief Product Officer.

Swedish-based cloud core banking platform provider Vilja partners with U.K.-based mortgage origination partner Mast.

ieDigital, Connect FSS, and ABAKA announce appointment of Rami Cassis as CEO.

Procure-to-pay software provider PairSoft acquires APRO Software Solutions.

First State Bank selects Jack Henry to revamp its banking experience.

Regtech

Risk management solutions provider Abrigo acquires TPG Software.

Identity management

Biometric identity solutions provider iProov appoints Peter James as its Chief Product Officer.

Insurtech

Enterprise insurance management platform Novidea introduces new Chief Revenue Officer Jeff Heine.

Photo by Thought Catalog

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Fintech Rundown: A Rapid Review of Weekly News

By David Penn Posted on March 25, 2024
Categories: Bankjoy, Bluefin, Bluefin Payment Systems, Currency Cloud, Equifax, Fintech Rundown, Insuritas, nCino, PaySend, Plaid, Revolut, Settle, VISA, Zafin

We’re starting off the week with a major acquisition in the U.K. lending space, as well as fintech funding news in payments, wealth management, and financial education.

Digital banking

Missouri-based Central Bank leverages Personetics’ AI-driven engagement platform to enhance financial wellness.

SaaS core modernization and transformation solution provider for banks Zafin unveils new tools – Dynamic Cohorts and Signals – to enhance customer personalization and engagement.

Digital banking experience platform Plumery announces availability on Google Cloud Marketplace.

Emporia State Federal Credit Union launches new app courtesy of a partnership with digital banking solution provider Bankjoy.

Bank integration provider AccessPay secures $24 million in equity and debt financing.

Payments

Paysend partners with Currencycloud to enhance its FX and treasury capabilities.

Integrated payments company Bluefin adds 23 new devices, 6 new applications, and three new key injection facilities (KIFs) to its Encryption Management Services P2PE Component listing.

Germany payment management platform NX Technologies raises $23.8 million (EUR 22 million) in Series B funding.

Stripe teams up with Amazon to power payments for Just Walk Out technology in Australia and Canada.

MENA-based payment gateway provider HyperPay inks a collaboration with Capital Bank.

Lending

Baker Hill forges new partnership with Dallas-based Harmony Bank.

ChargeAfter secures a patent for its embedded lending technology.

National Building Society agrees to acquire Virgin Money for $3.7 billion (£2.9 billion).

Desjardins partners with cloud banking firm nCino to leverage its Automated Spreading Solution to enhance lending.

Open banking

Dwolla expands its partnership with MX to power account aggregation and verification.

Open banking platform Link Money forges partnership with Silicon Valley Bank to enhance ACH processing and money movement for merchants.

Wealth management

Online trading and investing platform Robinhood launches rewards credit card for its Robinhood Gold subscribers.

Wealth-building platform Belong secures $3.7 million (£2.95 million) in pre-seed funding.

Multi-asset class investment accounting platform FundGuard raises $100 million in Series C funding.

Financial education

Wealth building and financial education platform Goalsetter closed a $9.6 million Series A extension round.

Cash management

Cash-flow management platform Settle launches Automatic 3-Way Matching for Purchase Orders.

Fraud prevention

Plaid forges partnerships with Sandbox Banking and RealPage to help fight fraud in the customer experience.

AI-powered fraud and risk platform DataVisor launches its end-to-end anti-money laundering (AML) solution.

Financial crime compliance company Napier AI reports that its customer Banco do Brasil has won the Celent Model Risk Manager 2024 Award for combatting financial crime.

Visa adds three new AI-powered risk and fraud prevention solutions.

Cryptocurrencies / Blockchain

Revolut and Layer 1 blockchain Sui team up to boost blockchain education and adoption.

Trading and investing platform eToro adds 12 new altcoins to its cryptocurrency offerings.

Identity management / verification

ID verification company AU10TIX unveils expanded Digital ID solution.

Insurtech

Rewards credit card company Yonder to offer its members a new travel insurance experience courtesy of a partnership with embedded insurance orchestration firm Qover.

New Jersey’s largest credit union, Affinity Federal Credit Union, partners with Insuritas to launch Affinity Insurance Agency.

PayPal Ventures and MassMutual Ventures lead $47 million Series C funding round for Indonesian insurtech Qoala.

Mortgagetech

Equifax UK teams up with Homely to help first-time homebuyers become “mortgage-ready.”

Photo by Madison Inouye

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Taulia Brings Visa’s Digital Payments into Virtual Cards Offering

By Julie Muhn (@julieschicktanz) Posted on March 13, 2024
Categories: Alumni News, Daily news, Taulia, VISA

Taulia has partnered with Visa to embed Visa’s digital payments technology into its Virtual Cards offering.
Taulia will leverage Visa’s APIs to embed business’ virtual payment credentials, acceptance, and enablement solutions to work natively across SAP business applications.
Integrating Visa’s digital payments technology into Taulia’s Virtual Cards will simplify the business-to-business payments process, especially for organizations using SAP’s ERP solutions.

SAP-owned supply chain finance fintech Taulia has partnered with Visa this week to embed Visa’s digital payments technology into Taulia’s Virtual Cards offering.

The partnership will leverage Visa’s APIs to embed business’ virtual payment credentials, acceptance, and enablement solutions to work natively across SAP business applications. Embedding finance
capabilities within SAP’s applications reinforce the bank’s role as an issuer and solidify the ERP relationship to the corporate client.

“By partnering with Taulia, we create synergies in working capital management and the enablement of a world class ERP provider,” said Visa SVP, Global Head of Large, Middle Market Segments and Working Capital Solutions Alan Koenigsberg. “We believe that we are creating a best-in-class payments automation experience for buyers and suppliers alike, while removing cumbersome processes that take time away from the most strategic work that drives growth.”

The companies anticipate that the solution will help CFOs, procurement, and accounts payable teams automate payments to suppliers. This can be useful for businesses who pay one-time suppliers because it eliminates the need to create full master data in the system. Embedded virtual payments will also improve cash flow for businesses, offer enhanced payments visibility, and reduce friction in B2B transactions.

Overall, the partnership represents a step towards a more accessible digital payments ecosystem for businesses worldwide. Integrating Visa’s digital payments technology into Taulia’s Virtual Cards will simplify the business-to-business payments process, especially for corporate buyers and suppliers using SAP’s ERP solutions.

Taulia was founded in 2009 to help companies make use of cash tied up in their payables, receivables, and inventory. The company maintains a network of 3+ million businesses to fuel its clients with more working capital. In fact, Taulia has provided more than $250 billion in accelerated early payments to clients, including Airbus, AstraZeneca, and Nissan.

SAP acquired Taulia in 2022 for an undisclosed amount.

Photo by Jopwell

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Fundica and Visa Team Up to Help SMEs Secure Working Capital

By David Penn Posted on March 11, 2024
Categories: Alumni News, Daily news, Fundica, VISA

Funding search engine Fundica announced a collaboration with Visa last week.
The partnership will make it easier for entrepreneurs to access government funding.
Headquartered in Montreal, Quebec, Canada, Fundica made its Finovate debut last year at FinovateSpring 2023.

A newly announced collaboration between North American funding search engine Fundica and Visa will democratize the process of securing government funding for SMEs, especially those founded and led by members of underrepresented communities. Together Fundica and Visa will offer an intelligent solution that helps SMEs and entrepreneurs find relevant government funding and private sector grants based on their individual business’ needs and goals.

“We are thrilled to be working with Visa to further democratize access to government funding for small businesses across North America,” Fundica co-founder and CEO Mike Lee said. “Visa and Fundica are both deeply committed to fostering accessibility and inclusion in business communities – making this collaboration a great fit.”

Fundica’s platform enables small businesses to identify and apply for relevant government and private sector funding, while giving financial institutions the ability to promote inclusion and serve as a more comprehensive financial advisor to its SME clients. The technology aggregates data from tens of thousands of funding programs, leveraging strategies from discovery and tracking bots to funders, collaboration partners, and its own internal research team.

The search experience for the business customer is straightforward; companies enter basic information about their business and Fundica displays appropriate funding options in order of relevance. The solution presents each opportunity in a detailed, one-page summary, making it easy for business customers to confirm their suitability for the funding and to begin the application process. Funding sources include grants, tax credits, government loans and loan guarantees from federal, state, provincial, and municipal entities – as well as the private sector.

On the backend, FIs can see the profiles of the companies looking for funding and make informed connections with qualified leads and clients. The platform also enables institutions to identify key business behavioral trends. Some of the largest FIs in North America license Fundica’s AI-powered funding search engine to help them acquire and retain business customers.

Headquartered in Montreal, Quebec, Canada, and founded in 2017, Fundica made its Finovate debut at FinovateSpring 2023. At the conference, Fundica’s Lee demonstrated new enhancements to the platform’s front- and back-ends. These enhancements included a traffic augmentation solution, improved traffic conversion, and improved user engagement.

A Finovate alum for more than a decade, Visa made its Finovate debut at FinovateSpring 2010 in San Francisco. The company is also an alum of our developers conference, participating in FinDEVr Silicon Valley in 2014.

Photo by Tim Mossholder

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Visa’s Cybersource and Ingenico to Create a Global Commerce Solution

By Julie Muhn (@julieschicktanz) Posted on January 24, 2024
Categories: Alumni News, Daily news, VISA

Visa’s Cybersource is partnering with payment acceptance company Ingenico.
The two will leverage Ingenico’s Android-based AXIUM system, along with Cybersource’s open payment platform, to launch an all-in-one global commerce solution.
The aim of the new commerce solution is to reduce costs and complexities associated with technical integrations, increase speed to market, and provide omni-channel capabilities.

France-based payment acceptance company Ingenico announced it has partnered with Visa’s Cybersource. The two are leveraging Ingenico’s Android-based AXIUM system, combined with Cybersource’s open payment platform, to create a unified global commerce solution.

Ingenico’s AXIUM offers a range of point-of-sale (POS) terminals, along with a suite of business applications. The new unified commerce solution will be available on all AXIUM devices, which will allow for an easy way to scale without having to go through a certification process for each new device.

Cybersource, Visa’s agnostic global payment and fraud management platform, is part of Visa Acceptance Solutions, a connectivity hub that provides acquirers, independent software vendors, and merchants with access to what they need to create scalable commerce experiences. Crafting a global solution with real-time transaction visibility and data analytics helps acquirers focus on card clearance and settlement. Because the solution leverages both Ingenico’s and Cybersource’s ecosystems, it also allows acquirers to expand into new merchant segments.

“Combining the global reach of Visa and Ingenico and using the Ingenico Android technology stack, will accelerate innovation and reduce complexity,” said Ingenico Chief Customer Officer Nigel Lee. “We believe together we can reduce time to market for customers and allow our clients and partners to realise the benefits of a truly unified omnichannel solution. This is a significant step in our vision to move commerce forward by harnessing the collective strengths of our combined technologies and networks.”

Under today’s partnership, Cybersource will be able to provide a ready-to-use commerce solution that can authorize in-store card transactions across international borders. Ultimately, the two companies aim to use the new global commerce solution to reduce costs and complexities associated with technical integrations, increase speed to market, and provide omni-channel capabilities that suit both consumers and businesses.

Founded in 1980, Ingenico works with more than 1,000 banks and acquirers in more than 37 countries. With 4,000 employees, the company helps power 2,500 payment apps and 40 million terminals across the globe. Last year, Ingenico partnered with Fujitsu Frontech to launch a new solution that authenticates customer identities and facilitates payment using the palm of their hand for in-person transactions.

Photo by Andrea Piacquadio

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