Best of Show Winner Arkose Labs Launches New Fraud Detection Solution, Arkose Detect

Best of Show Winner Arkose Labs Launches New Fraud Detection Solution, Arkose Detect
  • Arkose Labs launched its new fraud detection solution, Arkose Detect.
  • The new offering was formerly an embedded component of the company’s Arkose Protect technology.
  • Arkose Labs won Best of Show at its Finovate debut at FinovateSpring 2019.

A new fraud detection solution from Arkose Labs called Arkose Detect will help prevent fraud attacks on consumer accounts as well as help businesses boost revenue by providing legitimate users with a seamless customer experience.

“Every company today is operating in the ‘decision economy,’ which is stimulated and fueled by data,” Arkose Labs Chief Product Officer Ashish Jain said. “We designed Arkose Detect to leverage the collective data from the world’s biggest companies so that those hard-to-suss-out fraud attacks can be easily detected. As fraud is constantly evolving, we have an ambitious product roadmap and will continue to innovate to stay ahead of threats.”

Arkose Detect was previously an embedded component of the company’s dynamic attack response solution, Arkose Protect. Now, in the wake of testing with major international businesses, Arkose Detect is being rolled out as its own product. Arkose Detect leverages AI to force fraudsters and cybercriminals to become increasingly sophisticated in their attacks. This raises the cost of their attacks against businesses defended with Arkose Detect, incentivizing fraudsters to go elsewhere.

Additionally, the new solution gives customers a risk score that allows them to adjust their own fraud models to better detect both automated, malicious bots as well as human-driven fraud attacks. Arkose Labs will also share the fraud data collected and analyzed by Arkose Detect with its customers in order to enable them to enhance their internal fraud prevention processes. Arkose Detect features more than 70 raw risk signals and more than 150 pre-built insights culled from Arkose Labs’ global network.

“In just six years, Arkose Labs has grown to boast a portfolio of category-leading customers across financial services, gaming, travel, ecommerce/retail, social media, and technology industries,” Arkose CEO and founder Kevin Gosschalk said. “And this is just an early chapter in our growth story. Our forecasted trajectory is exciting and attracting attention due to the efficiency of our core technology, on which Arkose Detect is built.”

A Finovate alum since its Best of Show-winning demo at FinovateSpring in 2019, Arkose Labs has since partnered with Bugcrowd to launch a private bug bounty program, introduced the industry’s first warranty against credential stuffing attacks, and unveiled a range of “significant updates” to its fraud detection platform including the development of Arkose Enforce, Arkose Insights, and Arkose Detect.

“The latest product enhancements include detection capabilities which are adapted to a world where attackers are spoofing devices and other identifying information,” Jain said when the updates were announced in October. “Customers also have easier access to the multi-layered risk insights that we use in our machine learning-powered decision engine.”

Headquartered in San Francisco, California, Arkose Labs was founded in 2015. The company has raised more than $106 million in funding from investors including the SoftBank Vision Fund 2, M12 – Microsoft’s Venture Fund, and the Sony Innovation Fund, among others.


Photo by Rodolfo Clix

Revolut Turns to Cross River to Power U.S. Expansion

Revolut Turns to Cross River to Power U.S. Expansion
  • Revolut announced a partnership with fintech technology infrastructure company Cross River.
  • The partnership will enable Revolut to offer personal loans to its customers in the U.S.
  • The announcement comes in the wake of Cross River’s announcement that it raised $620 million in March.

International superapp Revolut has partnered with fintech infrastructure provider Cross River to help it build and scale its business in the U.S. The collaboration will facilitate the first personal loans for Revolut’s U.S. customers and, courtesy of Cross River’s technology infrastructure, will be followed by additional credit solutions to be launched later this year.

“At Revolut, we’re building the world’s first global financial superapp so the move into credit and personal loans is a natural next step,” Revolut U.S. Head of Lending Tarun Bhushan said. “Revolut has developed technology to provide loans instantly to approved customers, with no origination fees – so customers can get the credit they need, when they need it.”

In addition to the absence of origination fees, the partnership means that Revolut borrowers will also be liberated from late fees and prepayment penalties, as well. Potential borrowers can also use the Revolut app to check their rates without affecting their credit score. Revolut’s “near-instant” and same-day loan funding solution means that users receive their funds in their Revolut wallet accounts within minutes of approval. Customers can also establish automatic loan repayments using the app’s AutoPay feature.

“At Cross River, we’re always looking for new and innovative ways to provide access to credit,” EVP and Head of Fintech Banking at Cross River Adam Goller said. “Our partnership with Revolut is instrumental in facilitating responsible financial solutions to consumers, and we’re excited to be powering Revolut’s U.S. expansion.”

Loans from Revolut are currently available only to the company’s U.S, customers. Revolut expects to be able to make the personal loans available to all U.S. consumers “in the coming months.”

Revolut’s partnership news comes as the company makes headlines for both personnel moves and expansion into new markets. This spring, Revolut appointed a new APAC General Manager, a new CEO for Brazil ahead of its expansion into that Latin American country, as well as a new General Manager and a new Head of Growth to support Revolut’s move into the U.S. market.

“It’s an exciting time to be joining Revolut as we further establish and grow our brand in the U.S.,” new Revolut General Manager for the U.S. Yuval Rechter said in March. “The pandemic has supercharged the digitalization of banking and Revolut is the best answer for U.S. consumers seeking greater value, transparency, and flexibility in how they manage their money.”

Cross River made fintech headlines less than a month ago with the news of its $620 million capital raise led by Eldridge and Andreessen Horowitz. The funds will be used to accelerate the company’s tech-focused growth strategy which consists of projects in embedded finance – including payments, lending, and crypto – as well as investments in “people and communities,” plans for international expansion, and “bolstering strategic partnerships.”

“Cross River is powering the future digital economy and changing lives by reinventing the way financial services are accessed,” Cross River founder, President, and CEO Gilles Gade said last month with the financing was announced.


Photo by Johannes Plenio

FinovateSpring 2022 Sneak Peek: FinGoal

FinovateSpring 2022 Sneak Peek: FinGoal

A look at the companies demoing at FinovateSpring in San Francisco on May 18 and 19. Register today and save your spot.

FinGoal’s insights platform sits atop digital banking and personal financial data. Premiering at Finovate, their Aggregator Switch Kit allows fintech developers to switch data aggregators in minutes.

Features

  • Coverage: The best, most enriched and open data in the industry
  • Access: Data is shared easily across ecosystems
  • Cost: Better cost structures for aggregation, enrichment and account verification

Why it’s great

Fintech developers should not be hostage to their aggregation provider.

Presenters

Ariam Sium, VP Product
Sium leads Product at FinGoal and uses the tenets of focus and value to govern each product decision made in the rapidly adapting world of fintech.
LinkedIn

Jenn Underwood, Product Analyst
Underwood brings an expertise in personal finance to our product development. Her passion for equitable financial services and value-based savings greatly enriches the UX.
LinkedIn

FinovateSpring 2022 Sneak Peek: LemonadeLXP

FinovateSpring 2022 Sneak Peek: LemonadeLXP

A look at the companies demoing at FinovateSpring in San Francisco on May 18 and 19. Register today and save your spot.

LemonadeLXP is a digital growth platform that helps FIs and fintechs turn frontline staff into digital experts and support customers as they switch to digital banking.

Features

  • Turn staff into digital experts with addictive microlearning
  • Support staff and customers with technology walkthroughs
  • Optimize digital customer experience, grow digital banking business

Why it’s great

LemonadeLXP is the fastest and easiest way to provide staff and customers with the training and support they need to become experts on digital banking capabilities.

Presenters

John Findlay, CEO
Findlay is a serial entrepreneur, a lifelong innovator, and an expert in digital engagement. Outside of work he’s a dad, husband, athlete, musician, and geopolitics nerd.
LinkedIn

FinovateSpring 2022 Sneak Peek: Palturai

FinovateSpring 2022 Sneak Peek: Palturai

A look at the companies demoing at FinovateSpring in San Francisco on May 18 and 19. Register today and save your spot.

Palturai BusinessGraph is a leading Knowledge Graph Platform, adding a new dimension of network analytics to businesses. Make more informed decisions and identify hidden opportunities and risks.

Features

  • Sales & Marketing – discover new leads in business networks
  • Risk, Fraud & Compliance – identify trouble spots in business ecosystems
  • Investigations & Forensics – uncover hidden legal structures

Why it’s great

Palturai BusinessGraph is pre-loaded with 66M+ companies, 60M+ people and 211M+ relationships. The solution is actively deployed at Tier-1 financial services and public sector institutions.

Presenters

Bernhard Ritz, Regional President, North America
Ritz is the Regional President for Palturai in North America. He spent two decades at SAP and held various management roles in Corporate Strategy and Strategic Business Development.
LinkedIn

Noel Billingsley, Head of Business Operations, North America
Billingsley leads operations for Palturai in North America. A former career banker and serial entrepreneur, he brings unique experience in guiding the introduction of Palturai to the NA market.
LinkedIn

FinovateSpring 2022 Sneak Peek: OpenAlt

FinovateSpring 2022 Sneak Peek: OpenAlt

A look at the companies demoing at FinovateSpring in San Francisco on May 18 and 19. Register today and save your spot.

OpenAlt offers a capital raising and custodial platform for private businesses and their investors, including private offerings marketplace, due diligence, transaction processing, and data reconciliation solutions.

Features

  • Private market investment research and due diligence
  • Transactional automation
  • Seamless custodial integration and reporting

Why it’s great

OpenAlt bridges the gap between financial advisors and investable private businesses to allow for better diversification of the investment and retirement portfolios.

Presenters

Nikita Brodskiy, Co-Founder
Brodskiy has more than 15 years of experience in the IT industry and FinTech. He holds an M.S. in Management from Stanford Graduate School of Business.
LinkedIn

Anton Charnotski, Co-Founder
Charnotski is a seasoned software architect, platform builder, and engineering leader. He has extensive experience in the custodial space and holds an IRA Services Professional certification (CISP).

More Than $365 Million Raised by 11 Alums in Q1 of 2022

More Than $365 Million Raised by 11 Alums in Q1 of 2022

Quarterly funding for Finovate alums topped $365 million in the first three months of 2022. The amount is lower than last year’s Q1 tally, and is more reminiscent of the sums raised by Finovate alums in the first quarters of 2019, 2017, and 2016. The number of alums receiving funding in Q1 of 2022 was also lower than in recent years.

That said, overall fintech investment is as strong as ever. According to research from CB Insights, while overall fintech investment in Q1 of 2022 was lower than in three out of four quarters in 2021, the sum – more than $28 billion – tops Q1 2021 and stands as the largest first quarter for fintech investment on record.

Previous quarterly comparisons

  • Q1 2021: $3.3 billion raised by 26 alums
  • Q1 2020: $1.3 billion raised by 14 alums
  • Q1 2019: $468 million raised by 20 alums
  • Q1 2018: $1.3 billion raised by 26 alums
  • Q1 2017: $230 million raised by 20 alums
  • Q1 2016: $656 million raised by 32 alums

Top Equity Investments

  • Personetics: $85 million
  • iProov: $70 million
  • Glia: $45 million
  • Atomic: $40 million
  • OCR Labs: $30 million
  • Zeta: $30 million
  • Vymo: $22 million
  • TickSmith: $20 million
  • doxo: $18.5 million
  • Plinqit: $5 million

The biggest fundraising of the quarter was the $85 million secured by Personetics in January. Close behind was the $70 million that iProov raised – also in the first month of the year. Given that there were only 11 alums reporting funding in Q1 of 2022, it is understandable that the top ten equity investments for the quarter represent virtually all of the known funds raised by Finovate alums in the first three months of the year.


Here is our detailed alum funding report for Q1 2022.

January: $155 million raised by two alums

February: $55 million raised by three alums

March: More than $155 million raised by six alums

If you are a Finovate alum that raised money in the first quarter of 2022 and do not see your company listed, please drop us a note at research@finovate.com. We would love to share the good news! Funding received prior to becoming an alum not included.


Photo by Pixabay

Boss Insights Teams Up with MX to Boost Business Lending with Real-Time Financial Data

Boss Insights Teams Up with MX to Boost Business Lending with Real-Time Financial Data
  • Finovate alums Boss Insights and MX are partnering to give SMEs access to real-time financial business data.
  • The partnership will support faster, more accurate lending and funding for SMEs, as well as enhancing payment services.
  • A multiple-time Finovate Best of Show winner, MX is headquartered in Lehi, Utah. Boss Insights is based in Toronto, Ontario, Canada.

A partnership between open finance company MX and business data aggregation innovator Boss Insights will make it easier for small and medium-sized businesses to access real-time financial business data. Announced late last week, the collaboration will help banks and other financial institutions better serve their SME customers.

Courtesy of the new partnership, firms will have a 360-degree view of their business customers’ financial health via a single API. The API offers real-time access and integration with accounting, banking, and commerce data from more than 1,000 sources including QuickBooks, Xero, Shopify, Stripe, and Amazon.

“Boss Insights shares MX’s view that finances should be simple, useful, and intuitive,” Boss Insights CEO Keren Moynihan said. “Together, MX and Boss will empower fintechs, private lenders, and financial institutions with a platform to originate, decide, and monitor the business requests of their SMB and commercial business customers. This will help them make faster, more accurate lending, funding, and payment decisions.”

Among Finovate’s newer alums, making its Finovate debut in 2019, Boss Insights leverages big data and AI to accelerate the lending process for SMEs. The company’s Smart Capital product suite offers automated screening, due diligence, and portfolio management, and empowers lenders with real-time insights that lower risk and boost revenue opportunities. Founded in 2017, Boss Insights is headquartered in Toronto, Ontario, Canada.

“The partnership of MX and Boss Insights demonstrates the power and role of connectivity and data in the future of finance,” MX EVP of Partnerships Don Parker said in a statement. “As a leader in Open Finance, MX is committed to expanding our partner ecosystem with reputable partners who align to our overarching mission and stringent data and security standards. Today’s partnership with Boss Insights demonstrates our commitment to Power the Open Finance Economy.”

The newly-announced collaboration with Boss Insights is one of a number of partnerships that Lehi, Utah-based MX has announced in recent weeks. Earlier this month, the company teamed up with omnichannel payments platform Qolo Partners to help fintechs and neobanks scale their businesses faster. In March, MX worked with fellow Finovate alum Fiserv to enable secure consumer financial data access and sharing. That same month, MX announced that it had forged a new data access partnership with the University of Wisconsin Credit Union.


Photo by Luis Ruiz

FinovateSpring 2022 Sneak Peek: Goalry

FinovateSpring 2022 Sneak Peek: Goalry

A look at the companies demoing at FinovateSpring in San Francisco on May 18 and 19. Register today and save your spot.

Goalry is a unified “Money Mall” experience that converges personal finance management (PFM) with shopping to help members reach goals in one immersive space.

Features

  • Everything to achieve goals and comparison shop with a single login
  • Virtual real estate for embedded tech
  • Interactive and future-proof design

Why it’s great

Goalry’s platform improves the customer journey by providing a full funnel experience for everything finance and shopping in one virtual, immersive space.

Presenter

Ethan Taub, CEO & Founder
Taub has 20 years of executive experience ranging from billion-dollar brands to startups. His mission is to unify a disconnected finance landscape to create efficiencies.
LinkedIn

FinovateSpring 2022 Sneak Peek: KuantSol

FinovateSpring 2022 Sneak Peek: KuantSol

A look at the companies demoing at FinovateSpring in San Francisco on May 18 and 19. Register today and save your spot.

KuantSol Enterprise SaaS democratizes end-to-end modeling for banking, financials, and fintech. KuantSol drives more than 50X gain in operational efficiency, modeling time, quality, and compliance.

Features

  • Offers E2E modeling, validation, and compliance without dependence on data scientists, IT, and third-parties
  • Reduces cycle time from months to days
  • Reduces costs and resource requirements by more than 25X

Why it’s great

The first end-to-end risk modeling technology that is a one-stop shop for all time series and machine learning modeling that shortens cycle time and costs by more than 50X.

Presenters

Alex Shahidi, CEO & Co-Founder
Shahidi is the Co-Founder of KuantSo and is a founder or member of five startups with two exits. He is a pioneer in SaaS and cloud technologies, author of papers and patents on data protection, transformation, and infrastructure.
LinkedIn

Aytekin Oldac, Co-Founder & Chair of Board
Co-Founder of KuantSol, a businessman, and founder of a health services provider, Aytekin is an investor of Code2 and Pyramos software. He has previously served with PwC and IBM Cloud and compliance.
LinkedIn

FinovateSpring 2022 Sneak Peek: Spave

FinovateSpring 2022 Sneak Peek: Spave

A look at the companies demoing at FinovateSpring in San Francisco on May 18 and 19. Register today and save your spot.

Spave lets users tap into everyday purchases to increase their savings, give to causes that matter to them, and have control and confidence in their finances. Spave transforms your spending, for good.

Features

  • We have a patent-pending engine that allows users to choose where they direct their spavings
  • Access to more than 1.5 million accredited U.S. nonprofits
  • Partners gain access to user insights

Why it’s great

Spave can help CUs empower their members to save more, give more, and live more by breaking down the barriers that hold them back. Empower your members to transform spending for good.

Presenters

Susan Langer, CEO
Three words best describe Langer: Observer. Planner. Connector. Langer is a life-long learner and lover of people. Her 30-year professional journey within financial services, marketing and advertising, international development, and non-profit industries has taught her the value of listening to understand, the significance of appreciating others’ differences, and the extraordinary power of collaboration.
LinkedIn

Sarah York, Chief Marketing & Digital Officer
York is an active advocate for inclusive entrepreneurship and financial literacy. Her expertise spans data-driven growth, digital technology platforms, as well as global digital strategy.
LinkedIn

Christen Wright, Head of Product
Wright is a seasoned product leader, leading product for Reseda Group, a CUSO of MSUFCU. He has contributed to experiences at Delta, AT&T, and Best Buy. He was in 100 Black Men of Atlanta in 2020.
LinkedIn

Wagestream Raises $175 Million for Earned Wage Access Tool

Wagestream Raises $175 Million for Earned Wage Access Tool
  • Earned wage access tool Wagestream raised $175 million.
  • The investment includes $115 in debt funding and $60 in equity funding.
  • Wagestream will use the funds to add to its product lineup and fuel its U.S. expansion.

Earned wage access tool Wagestream landed $175 million in combined debt and equity funding today. The Series C round, which brought $115 in debt and $60 in equity, boosts the U.K.-based company to a total of $254 million in total funding.

New investors in the round include Smash Capital, BlackRock Innovation and Growth Trust, and Silicon Valley Bank. Existing investors Northzone, Balderton, QED, LocalGlobe, XYZ, Village Global, and Fair By Design also contributed.

Founded in 2018, Wagestream has offered one million workers access to $4.7 billion in wages that they’ve earned. The company considers one measure of its success as capital raised to liquidity released. Wagestream estimates that, prior to today’s investment, the company’s ratio was 1:55. That is, for every $1 of capital it raised, it released $55 of capital. “We’re aiming for a ratio of 1:100, meaning every $1 of capital raised by Wagestream will unlock $100 of impact for frontline workers,” said Wagestream Co-founders Peter Briffett and Portman Wills.

In addition to making that ratio possible, today’s investment will also power the development of new services, including an insurance offering that automatically adjusts coverage and premium, an app that enrolls users into optimal energy plans, fair credit without the need for a traditional credit score, and an intelligent savings installment plan.

Wagestream will also leverage the investment to expand internationally. Specifically, the company will focus on serving U.S. users. To fuel this move, Wagestream recently opened its U.S. headquarters in Washington, D.C.


Photo by Rene Asmussen