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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Amazon is launching an online insurance marketplace in the U.K.
The company is partnering with Ageas UK, Co-op, and LV= General Insurance to offer the Amazon Insurance Store, a new tool to help U.K. customers shop for home insurance.
The Amazon Insurance Store is now available to “select customers” and will be available to all U.K. customers by the end of the year.
The fintech industry loves to talk about Amazon’s weight as a competitor in the financial world. This week, the online retail giant is offering more points to that discussion with the launch of an online insurance comparison website for the U.K. market.
The Amazon Insurance Store serves as a way for U.K. customers to shop for home insurance by helping consumers compare quotes, select a plan, and pay for it using a checkout experience integrated with Amazon.co.uk. The element Amazon is seeking to differentiate its service with is the questionnaire experience. The company has simplified the process by only asking essential questions insurers require to issue a quote.
After the Amazon Insurance Store gains some traction, the company will integrate elements consumers expect from Amazon, such as customer reviews, star ratings, and even claims acceptance rates. The company expects the user-submitted data will help customers make more informed selections surrounding insurance companies and policies.
After finalizing their purchase, customers can use the Amazon website or mobile app to view their policies, change their payment method, and view renewal information.
“Finding the right home insurance policy can be a time-consuming and confusing task, with quotes that often leave out essential coverage in order to lead with the lowest price,” said Amazon European Payment Products General Manager Jonathan Feifs. “When we set out to create the Amazon Insurance Store, we wanted to improve the experience for customers shopping for home insurance so they could easily compare options and make an informed, objective decision—just like shopping on Amazon.”
At launch, Amazon is partnering with Ageas UK, Co-op, and LV= General Insurance. The company plans to add more insurers early next year. Amazon’s comparison website competes directly with Moneysupermarket, Uswitch, Compare the Market and GoCompare.
This isn’t Amazon’s first foray into the insurance market. Last year, the company partnered with Superscript to offer members of its Business Prime program contents insurance, cyber insurance, and professional indemnity insurance.
“Shopping online for home insurance is a well-established experience, and our goal is to exceed customers’ expectations when it comes to the Amazon Insurance Store,” said Amazon European Payment Products General Manager Jonathan Feifs. “This initial launch is just the beginning—we’ll continue to innovate and make refinements, all with the aim of delighting customers and providing the most convenient shopping experience possible.”
Amazon said that its Amazon Insurance Store is now available to “select customers,” and that it will be available to all U.K. customers by the end of the year.
Global Processing Services (GPS) has partnered with Featurespace to launch a new issuer processing fraud mitigation solution.
The new offering, GPS Fraud Advantage, will leverage Featurespace’s ARIC Risk Hub to provide real-time fraud threat protection.
Featurespace made its Finovate debut at FinovateEurope in 2016. The Cambridge, U.K.-based company was founded in 2008.
Global Processing Services (GPS) announced a partnership with Finovate alum Featurespace to create a new issuer processing fraud mitigation solution. GPS will integrate Featurespace’s ARIC Risk Hub into its suite of fraud and risk management services.
The new solution will manage fraud threats in real-time, boosting fraud detection rates by more than 70%, and reducing false positives by 80%. Named GPS Fraud Advantage and powered by Featurespace, the technology is expected to go live in mid-2023. The new offering will benefit from the expansion of GPS’ Fraud Prevention Team, providing comprehensive monitoring and management of fraud alerts throughout the payments process.
“Our technology and the results our customers achieve are recognized as industry leading by those committed to fighting fraud and financial crime,” Featurespace CEO Martina King said. “Through this partnership, GPS will be able to provide an enhanced level of customer experience and increased security assurances, enabling their clients to focus on continued innovation and growth.”
Featurespace’s technology provides real-time fraud prevention for cards and payments businesses against emerging fraud challenges. The company’s ARIC Risk Hub leverages machine learning and artificial intelligence to learn from and adapt to the cardholders’ historical transactions to provide risk assessments and alerts when potentially fraudulent activity is suspected. The solution helps businesses achieve higher approval rates while simultaneously minimizing false positives.
Founded in 2008 and headquartered in Cambridge, U.K., Featurespace made its Finovate debut at FinovateEurope 2016. Of late, the company announced that it was embedding its fraud prevention technology in the platform of U.K.-based payments services provider Equals. Featurespace also reported recently that it was helping regtech Vital4 with enhanced watchlist screening. Since inception, Featurespace has protected 500 million consumers, processed more than 50 billion events a year, and blocked 75% of fraud attacks in real-time, with a false positive ratio of 5:1.
With investors including Insight Partners, Future Fifty, and TTV Capital, Featurespace has raised more than $107 million in funding.
Cryptocurrency Investment Platform Pillow Raises $18 Million
In a round co-led by Accel and Quona Capital, crypto investment platform Pillow has secured $18 million in Series A funding. Also participating in the round were Elevation Capital and Jump Capital.
Singapore-based Pillow enables individuals to save and invest in a variety of major cryptocurrencies. The company will use the capital to power expansion of its cryptocurrency savings and investment services into emerging markets in Africa and Southeast Asia. Pillow already operates in Nigeria, Ghana, and Vietnam. This week’s funding adds to the $3 million in seed capital Pillow secured earlier this year.
Founded in 2021, Pillow has more than 75,000 users in more than 60 countries on its app. Among the cryptocurrencies available are: Bitcoin, Ethereum, Solana, Polygon, and Axie Infinity, as well as USD-backed stablecoins, USDC and USDT. Pillow plans to support more than 20 different digital assets over the next few months. The company offers returns of more than 10% on its stablecoins and approximately 6% on Bitcoin and Ethereum. Pillow earns its money by investing user funds in DeFi protocols on blockchain networks.
BlueSnap and BitPay Team Up for Crypto Acceptance and Payout
Payment orchestration platform BlueSnapannounced a new partnership this week. The company is teaming up with cryptocurrency payments company BitPay to enable businesses to accept and make payouts in as many as 15 different cryptocurrencies – as well as seven fiat currencies. The currencies available include leading digital assets such as Bitcoin, Ethereum, Litecoin, Ripple, and Dogecoin. Five stablecoins pegged to the U.S. dollar and one stablecoin pegged to the Euro will also be supported.
Courtesy of the partnership, customers will be able to accept cryptocurrencies and be paid out in fiat currencies including the U.S. dollar, the Euro, the British pound, and the Mexican peso, as well as the Canadian, Australian, and New Zealand dollars.
BlueSnap and BitPay noted in a statement that a growing number of retailers are accepting cryptocurrencies as payment, and that consumers were becoming increasingly “crypto curious.”
“By working with one of the most well-respected crypto companies in the industry, we’ll be able to make the new payment experience as frictionless as possible,” BlueSnap Managing Director for Europe Nihkhita Hyett said. “We look forward to making a real impact in this new space – through developing technologies like blockchain and cryptocurrency – as we foster greater innovation in payments, and further our growth across Europe.”
WSJ: NYDIG Lays Off a Third of its Workforce
According to reporting in the Wall Street Journal, institutional cryptocurrency custody firm NYDIG has laid off more than 100 of its workers, an amount believed to be approximately a third of the New York-based crypto firm’s total workforce. The layoffs took place over a number of weeks per the Journal’s sources, and come almost a year after NYDIG raised $1 billion in funding at a valuation of more than $7 billion. NYDIG mentioned using the capital to “further expand its world-class team across the globe” – though this was noted toward the end of the company’s funding announcement. Using the capital to “develop NYDIG’s institutional-grade Bitcoin platform” was noted in paragraph two.
More recently, NYDIG was in the headlines for the C-suite shuffle in October that had CEO Robert Gutmann and President Yan Zhao stepping down and returning to NYDIG’s parent company Stone Ridge Holdings. Gutmann and Zhao co-founded Stone Ridge, along with Ross Stevens, in 2012.
There has been no comment on the lay off report from NYDIG at this time.
Mastercard Teams Up with Blockchain Platform Paxos
Our last edition of 5 Tales highlighted Mastercard’s new Crypto Secure solution that helps card issuers assess the risk profile of crypto exchanges and other providers.
This week we share more news of Mastercard and its business in the crypto space. The company has announced a partnership with blockchain infrastructure platform Paxos that will enable financial institutions to offer secure cryptocurrency trading capabilities to their customers. Mastercard’s Crypto Source program will give its financial institution partners access to a suite of services that will enable them to buy, hold, and sell select crypto assets.
The suite of services provides technology and partnership support to enable FIs to buy, sell, and hold select digital assets; security management, including AML, transaction monitoring, and KYB; crypto spend and cash out capabilities; and crypto program management, including go-to-market optimization.
“What we are announcing today is a connected approach to services that will help bring the next billion users safely and securely into the crypto ecosystem,” Mastercard President, Cyber & Intelligence, Ajay Bhalla said.
Coinbase Expands in Europe – And Adds a Friend in Google
Cryptocurrency exchange Coinbase has had more than its fair share of less than pleasant news over the past few days. Today we read headlines about the company experiencing the largest outflow of Bitcoin since June. This follows reports of hundreds of Coinbase users in the Republic of Georgia who allegedly profited from a pricing glitch – and what Coinbase may have to do to get the money back.
Meanwhile, the San Francisco-based company continues to grow, expanding its operations in Australia earlier this month with a pair of new features. PayID will enable Australians to top up their Coinbase accounts directly with Australian dollars. Retail Advanced Trading will give local clients access to low volume-based pricing and trading tools with one unified balance.
And earlier this week, Coinbase introduced the man who will lead the company’s expansion in Europe: former Solarisbank Chief Operating Officer Daniel Seifert. The appointment comes as Coinbase gains momentum in the region, earning regulatory approval to offer its services to customers in Italy in July and the Netherlands in September. Coinbase VP of International and Business Development Nana Murusegan has called international expansion an “existential priority.”
But the biggest news of the week for the company is the announcement that Google has partnered with Coinbase to allow select customers pay for cloud services via cryptocurrencies starting early next year. The capability will be made possible thanks to an integration with Coinbase Commerce, which supports 10 cryptocurrencies including Bitcoin, Ethereum, Dogecoin, and Litecoin. Coinbase will earn a fraction of each transaction processed, according to the company’s VP of Business Development Jim Migdal.
Coinbase made its Finovate debut in 2014. More than 100 million individuals and companies use Coinbase’s technology to buy, sell, and hold cryptocurrencies.
In today’s digital-first environment, fraud threats are growing in sophistication and scope, and risks of online and financial crime have intensified. At the same time, fintechs are prioritizing growth, and need to do so in a way that is safe, secure, and keeps bad actors out.
Watch back on this Finovate webinar, with Experian Chief Innovation Officer for Decision Analytics Kathleen Peters, as she explores the meaning of digital identity, and how fintechs can leverage identity-proofing strategies to position themselves for growth without diminishing security. Learn:
The role of digital identities in advancing increased personalization, speed, and growth responsibly in fintech and financial services
How data can aid in making smart, risk-based decisions across the user journey
How to unlock financial growth opportunities by offering solutions to previously unavailable consumers due to verification constraints
SME financing platform Crowdz has teamed up with London-based GoCardless.
The partnership will enable Crowdz to leverage open banking to enhance its ability to provide small businesses with working capital.
Headquartered in Campbell, California, and founded in 2015, Crowdz made its Finovate debut at FinovateEurope 2020 in Berlin.
Small business financing platform Crowdz has partnered with direct bank payments company GoCardless. The collaboration will enable the California-based fintech, which made its Finovate debut at FinovateEurope in Berlin in 2020, to leverage open banking to bring better financing options to SMEs.
“We’re proud to have provided over $80 million in working capital to SMEs, but this is just the start,” Crowdz CEO and co-founder Payson E. Johnston said. “With our global expansion plans and our target of providing 25,000 SMEs with over $1 billion in working capital by the end of 2023, we needed a partner that could offer the right coverage, technology, and expertise. That’s where GoCardless comes in.”
The partnership will bring three of GoCardless’ payment features to Crowdz’s Avalon Marketplace to enhance both its payment and risk modeling capability. These features are Instant Bank Pay, which enables the collection of instant, one-off payments directly from bank accounts; Verified Mandates, which provide enhanced fraud protections; and GoCardless’ PayTo integration, which supports instant payments and account verification. Both Instant Bank Pay and Verified Mandates will be available in the U.K., the U.S., and Europe. GoCardless’ PayTo integration will be available in Australia.
“We’re excited to see our open banking features powering a true disruptor like Crowdz,” GoCardless Chief Product Officer and Chief Growth Officer Duncan Barrigan said. “Thanks to our global bank payment network, we’ll be able to accelerate their speed-to-market and offer cutting-edge payment solutions, making it that much easier for SMEs to gain access to working capital all over the world.”
Crowdz made its Finovate debut in Berlin at FinovateEurope 2020. At the conference, the company demoed its end-to-end invoice solution helps turn unpaid receivables into cash. Crowdz’s technology leverages the blockchain to provide a platform of invoices for sellers, buyers, and funders, a global receivables marketplace that gives small businesses access to alternative financing that accelerates their cash flow. Crowdz uses a proprietary risk assessment model, the SuRF score, which it says helps provide more equitable funding compared to financing based on traditional credit scores.
As of March, Crowdz had funded $50 million in receivables. The company began the year partnering with Angels Den to launch the organization’s financing program that helps small businesses in the U.K. secure working capital. Crowdz also teamed up with Meta last fall (formerly known as Facebook) to help the company launch its SME financing program.
Crowdz has raised more than $25 million in funding from investors including Citi, Barclays Corporate Banking, Bold Capital Partners, Global Cleantech Capital, and EG Funds Management.
Plaid added a new anti-fraud engine to its Plaid Identity Verification (IDV) solution.
The addition leverages autofill to accelerate sign up and help reduce manual errors. The technology also assesses device behavior and the way users input their personally identifiable information (PII).
Plaid announcement comes in the wake of news that the company is expanding in Europe.
Open banking innovator Plaid has added a new anti-fraud engine to its identity verification solution, Plaid Identity Verification (IDV). The anti-fraud engine supports a faster verification process to boost both conversions and signups. The new addition also assesses behavioral risk to better defend against emerging threats and strategies from fraudster and financial criminals.
The new tool comes months after Plaid launched its identity verification solution, and is the product of Plaid’s work with “hundreds of digital finance companies” in industries ranging from crypto and neo-lending to proptech and banking. Not only did Plaid’s work with these firms underscore fraud as a “top challenge.” it also highlighted two chief values that companies have when it comes to improving security and anti-fraud protection: a fast and secure onboarding process and a fraud defense regime that is capable of evolving to meet new threats.
To enhance the onboarding process, Plaid’s new tool offers an autofill experience that makes sign up seamless without compromising security. Customers in the U.S. only need to enter their date of birth and phone number when signing up, and Plaid’s autofill technology auto-populates with full name, address, and social security number and other information associated with the user’s phone number and birthdate. The autofill feature accelerates the verification time for customers from 30 seconds to as little as 10 seconds. Plaid also noted that its autofill feature can improve conversion by up to 20%.
The new anti-fraud engine also assesses device behavior and the way users enter their personally identifiable information (PII) to detect a range of behaviors that are associated with fraudulent actors and bots. The tool analyzes the speed and pace with which PII is entered, the order in which data is imputed, whether the data input method is copy and paste, and more. By monitoring these behaviors during the sign up process, Plaid’s new anti-fraud enhancements will help users of Plaid Identity Verification accurately verify customer identity, reduce fraud incidents, and meet compliance obligations.
Plaid’s announcement comes in the wake of big expansion and partnership news for the company. In August, Plaid reported that it will be expanding its operations in Europe. The company now offers its open banking capabilities in both Spain and Portugal, and provides clients in Germany with data connectivity services. The move comes with the addition of a pair of new Payment Service Provider (PSP) partners: Norbr and GlobePay. Plaid anticipates launching operations in other European countries soon, including Sweden, Denmark, Norway, Lithuania, Latvia, and Estonia.
Also in August, Plaid announced a partnership with fellow Finovate alum Wise (formerly Transferwise). The deal will enable Wise customers to access to more than 6,000 apps courtesy of Plaid’s open finance core exchange, launched earlier this year. Venmo, Chime, and Truebill are among the apps that Wise customers will be able to select and add to their digital platforms.
Although not getting as much attention these days as the metaverse or Web3, the potential impact of quantum computing in financial services certainly has the attention of the industry’s biggest players. This week, Mastercardapproved the first cards for issuers that meet EMVCo contactless specifications to protect cardholders from attacks from quantum computers as well as traditional computers.
“Technology has the potential to open new opportunities for both consumers and fraudsters,” President of Cyber & Intelligence at Mastercard Ajay Bhalla said. “That’s why future-proofing security is critical.”
Quantum computing involves leveraging the capacities of quantum physics to solve certain computational problems faster than traditional computers. Much of the buzz over quantum computing is related to the purported ability of quantum computing to defy even the most rigorous encryption protocols. And while some of these concerns may have been overblown, at least in the short term, the ability of quantum computers to solve certain complex problems faster than the most advanced supercomputers currently available makes them a potential source of major financial crime if adequate safeguards are not in place.
To this end, Mastercard introduced new, quantum-resistant Enhanced Contactless specifications in January 2021. Referred to as “Ecos” the new specifications are designed to provide greater convenience for merchants and financial institutions, enhanced trust thanks for next-generation algorithms and cryptographic key strengths, and enhanced privacy to deliver protection when account information in shared between the card or digital wallet and checkout.
“As the ecosystem continues to evolve, more connected devices and the Internet of Things are going to create more user demand, and an even greater need for constant innovation to build next-generation capability, helping to ensure that technology never outpaces trust,” Bhalla said when the Ecos specifications were unveiled. In the months since then, Mastercard has teamed up with EMVCo to continue to develop the Ecos-compliant technology with the goal of making it an industry standard for contactless acceptance. In a statement, Mastercard cited a Juniper report that indicated that contactless payment devices will top 12.5 billion by 2027. The value of contactless transactions is similarly expected to grow, reaching $10 trillion worldwide by 2027.
“By bringing quantum-era technology to contactless payments, we are taking steps to future-proof security and privacy protection as much as possible,” Bhalla said this week. “These new cards will deliver that greater peace of mind, while also providing consumers and merchants a seamless transition from today’s contactless experience.”
Mastercard’s embrace of quantum computing has been marked in 2022. In July, the company announced a multi-year strategic alliance with D-Wave Systems, the world’s first commercial supplier of quantum computers. In February, Mastercard’s Foundry Live Series presentedThe Quantum Advantage, a look at the potential impact of quantum computing in financial services.
Small business banking tools company NorthOne pulled in $67 million in funding this week.
The Series B round increases the company’s total raised to more than $90 million.
NorthOne has big ambitions, and is seeking to be “the digital finance department powering every small business in America.”
Small business banking tools company NorthOnelanded $67 million in a Series B funding round this week. The investment boosts the New York-based company’s total funds to more than $90 million.
New and existing investors, including Battery Ventures, Don Griffith, Drew Brees, Ferst Capital Partners, FinTLV, Next Play Capital, Operator Stack, Redpoint Ventures, Tencent, and Tom Williams, participated in the round.
NorthOne was founded in 2016 to offer small businesses an approachable digital banking experience. The company said that the funds will enable it to raise the standard of products and services that business owners should expect from their banking partners.
“Through an obsessive focus on our customers’ needs, we’ve been able to predictably build a business banking experience that unlocks an incredibly strong product-market fit,” said NorthOne CoFounder and CEO Eytan Bensoussan. “As our customers grow, their problems evolve beyond the bank account. By connecting the data layer between accounting, receivables, payables, lending, payroll—all the financial operations—and the bank account ledger, we can provide a transformative offering that’s always felt out of reach for our customers: a world-class finance department built for their business.”
NorthOne, whose services are powered by The Bancorp Bank, has big ambitions. The fintech is aiming to be “the digital finance department powering every small business in America.” To reach this goal, the company is currently working on building new capital and credit products, faster payment solutions, and more integrations.
If you had 6 minutes to talk with Alexa Von Tobel about all things fintech, what questions would you ask?
For those new to the fintech industry, let me fill you in. Alexa is the Founder and Managing Partner of Inspired Capital and was the Founder and CEO of LearnVest, a wealth management platform she sold to Northwestern Mutual for $250 million in 2018. She is also the author of Financially Fearless and Financially Forward. All this is to say, Von Tobel is a long-standing expert in the fintech industry.
I was fortunate enough to have the opportunity to chat with Von Tobel at FinovateFall last month. Here are some of the highlights of our conversation.
Dealflow in fintech has changed a lot this year. When I asked Von Tobel what we can expect moving forward, she said that the fintech industry is full of dry powder. She said to ignore the spike in funding that has occurred in the past couple of years, and instead look forward to the future. “This is when the best builders come out,” she said. “When times get tough is when you see resilient, committed founders saying that they want to build a business. I want to meet those founders.” In fact, Von Tobel is excited about the downturn because it will bring out the mission-oriented builders and founders that are seeking to fix the big gaps in the industry.
In our interview, we also looked at retirement. According to Von Tobel, retirement looks different today, thanks in part to the gig economy. Many people are looking to leave their full time job to work in a more flexible environment that allows them to choose how frequently to work. On the flip side, young people are also seeking more flexibility in their working environment, and because they are not working the traditional nine to five career, they need solutions to save for their retirement that fit this unique need.
Von Tobel also shared the top trends she expects to see rise in the next few years and offered up advice for founders of mid-to-late stage companies who are having difficulty finding VC funding in today’s environment.
Lendsmart announced that First Community Bank and Trust will go live with its digital lending platform.
Lendsmart won Best of Show at FinovateFall Digital in 2020.
More than 100 years old, First Community Bank and Trust serves communities in Illinois and has assets of more than $205 million.
One of the brightest stars from FinovateFall Digital shared partnership news this week. Lendsmart, which won Best of Show at FinovateFall Digital in 2020, has brought its AI-driven digital lending platform and home buying marketplace to First Community Bank and Trust. The Illinois-based institution will leverage Lendsmart’s technology to streamline its mortgage lending operations, bringing automation and digitization to 70% of the process.
Courtesy of the partnership, First Community Bank and Trust will be able to offer its customers and end-to-end digital lending experience including a digital application, a 10 minute process to get pre-approved, funds availability in a week, and a digital closing option.
“We’re committed to providing our customers with the latest in convenient technological financial solutions,” First Community Bank and Trust President and CEO Greg Ohlendorf said. “(By) partnering with Lendsmart, we are fulfilling this commitment by offering our customers a seamless digital experience from start to finish in just a few minutes.”
First Community Bank and Trust is a privately owned bank that serves communities in Beecher and Peotone, Illinois, and throughout the state. The institution’s roots extend back to 1916, when a group of fourteen businessmen with $25,000 in capital launched what was then called Farmers State Bank of Beecher. A hundred years later, First Community Bank and Trust celebrated the success of its EMV Chip Debit MasterCard – and assets of more than $205 million.
Headquartered in New York, Lendsmart made its Finovate debut at FinovateFall Digital in 2020. At the event, the company won Best of Show for its centralized platform that streamlines and optimizes the customer onboarding and engagement process, and automates manual processes to minimize risk and underwrite borrowers faster.
Other recent partnerships with Lendsmart include collaborations with Sutton Bank of Ohio, Midwest Bank and Legence Bank of Illinois, and Wisconsin-based Citizens State Bank. Lendsmart was founded in 2018 by CEO A.K. Patel.
Deutsche Bank and Fiserv are teaming up to launch Vert, a payment acceptance and processing company aimed to serve small businesses.
Unlike other tools on the market, Vert will also offer traditional banking services.
Deutsche Bank has a built-in client base of around 800,000 small-to-medium-sized businesses who will be able to access the new solutions.
Deutsche Bank and Fiservannounced a partnership this week that will change the landscape of payments competition in Germany. The two have teamed up to launch Vert, a payment acceptance and processing company that also offers traditional banking solutions.
Aimed to serve small-to-medium-sized businesses (SMBs), Vert provides a single, integrated offering that streamlines access to banking products. The new service differentiates itself by providing next-banking-day pay-outs, which enables merchants to improve their cashflow with faster access to their funds. Vert also offers acceptance of common payment types and comes with an online dashboard that helps companies analyze transaction data and view a variety of business reports.
“By combining the strength of Deutsche Bank, Germany’s largest bank, with Fiserv, the world’s largest merchant acquirer, we can provide our Vert members with a secure, fast and technologically advanced payment acceptance solution,” said Vert Managing Director of Sales & Product Thorsten Woelfel.
Vert is launching with three products:
CloverFlex is a portable payment acceptance device that offers a tip function and business management apps.
A Go by Vert app that enables merchants to accept payments on their own Android device using secure PIN entry that allows the merchant to accept payments above contactless-only limits.
The PAX A50 is a small card reader device that enables merchants to accept card payments without having to carry around a heavy device.
“With a unique combination of payment and banking capabilities, Vert is already helping small and mid-sized enterprises in Germany do business more easily, with less complexity,” said Fiserv Head of EMEA John Gibbons. “We look forward to helping thousands of merchants streamline their operations and continue to delight their customers.”
Deutsche Bank comes with a merchant client base of its own. Between the bank’s retail banking division Postbank and entrepreneur-focused digital bank Fyrst, Deutsche Bank counts around 800,000 SMBs who will be able to access the new solutions. In fact, some of these merchants are already live with Vert. The bank also expects to attract business customers from outside of its own client base.
The company, which made its Finovate debut in 2011, said that the acquisition will help make its technology available to an even wider range of corporate customers worldwide. The deal is the latest evolution of a relationship between Kantox and BNP Paribas that extends back more than three years.
“We have been serving clients together since 2019 when our technology partnership started,” Kantox CEO and co-founder Philippe Gelis said. “During those three years, we spent a lot of time together in the field, getting the opportunity to understand that together we were stronger and able to bring more value to clients.” Gelis called the union “the best of both worlds, the leading software company in the currency management automation category and the leading bank in Europe.”
Kantox offers a single, API-driven, plug-and-play solution that helps companies optimize their FX workflow. Kantox’s technology gives businesses the ability to automate their currency risk management, build better hedging strategies, and lower costs. With its Currency Management Automation, Kantox enables corporate treasurers to deal effectively with challenges ranging from an over-reliance on manual processes to a fragmented FX workflow due to the absence of end-to-end solutions.
Kantox’s technology will be put to work for the Global Markets business of BNP Paribas’ CIB division, and the business centers of the Commercial, Personal, and Banking Services (CPBS) division. Both small businesses and large corporates will be the target markets for Kantox’s currency automation risk management offering.
Among the premier banks in the European Union, BNP Paribas is active in 65 countries and has almost 190,000 employees. The company’s Chief Operating Officer, Head of BNP Paribas CIB, Yann Gérardin called the acquisition another example of the institution’s readiness to “establish long-term partnerships with fintechs in ever-increasing range of areas.”
Kantox made its Finovate debut in 2013 at FinovateEurope. Within ten years, the company surpassed $15 billion in total corporate foreign exchange transactions. Kantox began this year with news that it was partnering with virtual IBAN and corporate account provider Monneo. This spring, Kantox teamed up with London-based fintech Revving to launch an integrated and embedded finance and working capital solution. Kantox raised more than $43 million in funding prior to the this week’s acquisition according to Crunchbase.
