Email

Online Stock Research Firm TipRanks Scores $77 Million

Online Stock Research Firm TipRanks Scores $77 Million
By David Penn Posted on
Categories: Funding, TipRanks

In the age of “diamond-handed” growth investors and message board stock jockeys, does anyone even analyze stocks any more?

Israel-based online stock research firm TipRanks is betting that the answer is “yes.” The company, which offers solutions that enable investors to quickly analyze stock market data and the performance of market analysts, secured a $77 million investment in a round led by technology group Prytek last month. The funding will help the nine-year old fintech take advantage of the surging interest in trading and investing by retail customers.

TipRanks leverages Natural Language Processing technology to review and analyze data from a wide variety of sources including analyst forecasts, financial bloggers, insider activity, news sentiment, and both the collective wisdom of individual investors on the platform as well as the actual investments by top hedge fund managers. A two-time Finovate Best of Show winner, TipRanks offers quantitative tools like its Smart Score for stocks and its Star Ranking System for analysts to allow investors to quickly assess a stock’s prospects or the value of a given analyst’s opinion.

“In addition to being the only company that ranks analysts based on their performance rather than the prestige of the bank they work for, we are the only company that makes aggregated analyst ratings available to retail investors,” TipRanks co-Founder and CEO Uri Gruenbaum said. “We analyze all finance-related news, corporate filings, analyst research, and social media to provide retail investors with the same level of information that only institutional investors can afford. By doing so, we enable retail investors to make data-driven investment decisions.”

The investment takes TipRanks’ total funding to $80 million. The company will use the new capital to add to its workforce, having experienced a significant jump in demand for its solutions in 2020. TipRanks noted that it has more than four million monthly users in the wake of a 3x boost for its subscription-based services last year. Gruenbaum added that TipRanks also plans to expand its research coverage to include other asset classes and markets such as cryptocurrencies and exchange-traded funds (ETFs).

The new partnership will also give TipRanks access to Prytek’s tools and datasets which bring greater transparency to online investment advisory. Founded in 2017, Prytek is an Israel-based multinational technology group that specializes in investing in new technologies and delivering managing services to companies in financial services and other verticals via its Business Operating Platform-as-a-Service model (BOPaaS).

Photo by Andrea Piacquadio from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

Talking Fintech: Customer Experience and the Productivity Revolution

Talking Fintech: Customer Experience and the Productivity Revolution
By David Penn Posted on
Categories: Podcasting

Of all the trends accelerated by the global pandemic, enhancing customer engagement may be both the most critical and the most enduring as we transition toward a post-COVID world. In the latest edition of his Finovate Podcast, host Greg Palmer talks with Crayon Data founder and CEO Suresh Shankar about his takeaways from 2020 and what he expects from fintechs and their customers in 2021.

Shankar founded Crayon Data, a big data/AI startup, in 2012. The Singapore-based company helps businesses succeed by leveraging enterprise data to create digital-first customer experiences. Crayon’s flagship platform, maya.ai, enables businesses to boost revenues, reach inactive customers, and cut down on time and effort on low-ROI marketing campaigns – all by delivering highly relevant, highly personalized digital experiences to customers without compromising privacy. Crayon Data made its Finovate debut at FinovateEurope last year.

The Finovate Podcast is also a great source for 30,000 ft high observations on both the fintech landscape as well as the broader terrain of technological innovation. Greg Palmer’s recent conversation with futurist Nancy Giordano delves into what she calls the “Productivity Revolution” and its implications for fintech and financial services.

“There was a way we approached building the industrial era of the 20th century and prior that now no longer holds up and we have to have a really different way of thinking as we move into the future. ‘Leadering’ (the title of her new book) is the contrast to ‘leadership’. It’s a verb that’s dynamic and inclusive and caring and allows us to build the future that we really want to build … It sounds lofty, but it’s actually pretty practical.”

A guest lecturer at Singularity University, a ten-year TEDx curator, founder of Play Big Inc. consultancy, and one of the premier female futurists in the world, Giordano consistently underscores the role of the individual in times of rapid change and disruption. Her new book, Leadering: The Ways Visionary Leaders Play Bigger, connects the rise of innovative technologies with changing societal expectations to give individuals insight into what it takes to create human-centered solutions and long-term value.

For more from the Finovate podcast, check out our podcast archives.

Share this:

Send Post Twitter LinkedIn Facebook

Sezzle Plans to File for U.S. IPO

Sezzle Plans to File for U.S. IPO
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Sezzle

Buy now, pay later (BNPL) company Sezzle is planning to strike while the iron is hot.

The Minnesota-based firm, which is already publicly-listed on the Australian Stock Exchange (ASX), is hoping to capture U.S. investors, now that the BNPL trend has exploded in this continent. Plans for the public listing are still in early stages. Details, such as the timing, price, and use, have not been revealed.

Prompting the plan to list is the company’s recent growth. According to its latest earnings announcement, Sezzle added 400,000 customers and recruited 7,300 active merchants in the first quarter of this year. This boost brings the firm’s total users to 2.6 million and total merchants to 34,000. Not surprisingly, the surge in usage helped increase the company’s first quarter income, which was reported at $22.3 million.

Sezzle initially went public on the ASX in July of 2019, raising $30 million on its first day of trading. The company now has a market cap of over $777 million. This figure is almost 5x higher than it was at the start of 2020. Sezzle’s move to the U.S. public markets follows its competitor, Affirm, which debuted on the Nasdaq at the start of this year.

Sezzle’s BNPL technology allows customers to split their ecommerce purchases into four installments with only 25% down and no fees. The offering is currently available to shoppers in the U.S., Canada, and India, and will soon be offered to residents in Brazil.

In February, Sezzle teamed up with Discover to work with select merchants on Discover’s network to help them provide their customers with additional payment options. Last September, the company launched a virtual payments card that helps customers benefit from Sezzle’s BNPL tech when they make purchases at brick-and-mortar stores.

Sezzle was founded in 2016. Charlie Youakim is CEO. 

Photo by Ketut Subiyanto from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

Wealthsimple Reaches $4 Billion Valuation on Latest Fundraising

Wealthsimple Reaches $4 Billion Valuation on Latest Fundraising
By David Penn Posted on
Categories: Daily news, Funding

In a round led by Meritech and Greylock, Canada-based fintech Wealthsimple has secured $610 million (C$750 million) in funding. The investment takes the online brokerage’s total capital to more than $1 billion, more than triples the company’s most recent valuation to $4 billion, and represents one of the largest financings for a Canadian technology company to date.

“Seven years ago, we launched Wealthsimple with just four people and a mission that many thought was naive: use technology and innovation to revolutionize the finance industry so every Canadian could achieve financial freedom, no matter who they are or how much money they have,” Wealthsimple co-founder and CEO Mike Katchen wrote on the company’s blog this morning. “I’m happy to say that our mission doesn’t seem quite so naive anymore.”

Also participating in the round were DST Global, Sagard, Iconiq, Dragoneer, TCV, iNovia, Allianz X, Base 10, Redpoint, STEADFAST, Alkeon, TSV, and Plus Capital. A host of Canadian celebrities were also involved in the funding, including actors Ryan Reynolds and Michael J. Fox; athletes Kelly Olynyk, Dwight Powell, and Patrick Marleau; and singer Drake.

Since its inception in 2014, Wealthsimple has grown into a firm with more than two million users who enjoy commission-free stock trading, automated investing, as well as access to cryptocurrencies and tax services. This spring, the company introduced its cash app, which enables Canadians to send and receive cash “in seconds.” Free and requiring no minimum balance to use, Wealthsimple Cash has been likened to Venmo, a popular cash app in the U.S. The app currently has daily spending limits of $5,000 a day and $20,000 a month; Wealthsimple said that this is significantly more generous than what is available through the big banks.

Wealthsimple’s investment news comes as the Toronto, Ontario-based fintech pivots to pursue new opportunities in the Canadian market (the company sold its U.S. investment advisory business to Betterment in March). During the investing mini-mania surrounding Robinhood and shares of Gamestop earlier this year, investors in Canada were weighing in by making Wealthsimple’s trading app the number one app on Canada’s Apple App Store and on Google Play. This ratings boost was accompanied by a 50% gain in sign-ups and a 2x increase in trading volume. The environment created by the global pandemic, according to Wealthsimple’s Katchen, played a significant role in the company’s growth; 18% of the country’s new brokerage accounts in the first half of 2020 were opened on Wealthsimple’s platform.

Like a growing number of fintechs, Wealthsimple also plans to extend its offerings to include cash, checking, insurance, and mortgage products with the goal of becoming the customer’s “primary financial institution“. The company initially earned its unicorn status in October, after securing an investment of $93 million (C$114 million). Power Corporation of Canada is the company’s majority shareholder, with a 43% of the company post-financing.

Photo by cottonbro from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

Standard Chartered, Deutsche Bank Embrace Hybrid Workplaces; Game On at BBVA

Standard Chartered, Deutsche Bank Embrace Hybrid Workplaces; Game On at BBVA
By David Penn Posted on
Categories: Finovate Global

From U.K.-based Standard Chartered to Germany’s Deutsche Bank, banks around the world are adapting to the post-COVID world with fewer branches. In separate announcements only a few days a part, two of the globe’s bigger banking presences (Standard Chartered is the 44th biggest bank in the world by total assets; Deutsche Bank is ranked 21st) have signaled that hybrid workplaces will join digital transformation as defining aspects of banking operations in the future.

Standard Chartered’s announcement comes as the firm reports better-than-expected profits for the first quarter. The bank plans to reduce the size of its branch network to 400 – and move to a hybrid remote working setup – as part of a cost-cutting maneuver. Standard Chartered also announced that it will look to automation to “enable the re-shaping of the workforce.” Standard Chartered has a strong presence in Asia, Africa, and the MENA.

As for Deutsche Bank, company CEO Christian Sewing cited fewer branch customers and a growing preference for digital options among the reasons driving the move toward a hybrid model. Deutsche Bank expects to close 150 Deutsche Bank and Postbank branches this year with an additional 50 Postbank branches to be closed in 2022. At the same time, the company said it will introduce a hybrid workplace model for its employees that will allow them to work remotely up to three days a week.

Hybrid workplaces aren’t the only things that financial services workers will be getting used to in 2021. If the new employee training initiative from Spain-based BBVA is any indication, bank workers may find themselves being reskilled and upskilled just by playing a game.

BBVA has announced a new global reskilling and upskilling experience, The Camp, that is designed to enhance the employability of its professional workers. Part of BBVA’s learning model, Campus BBVA, the new experience focuses on 14 strategic skills that are taught using a digital, gamified environment in which the workers are the primary actors who determine their own development.

“The challenge of ensuring the survival of organizations entails adapting and being flexible enough for teams to be able to navigate this uncertainty and constantly incorporate the skills that are needed to promote the strategy,” Global Head of Learning at BBVA Pilar Concejo said.

Each of the 14 strategic skills has a different training itinerary. And each itinerary has three levels of specialization that uses a mountain-climbing analogy to assess the employee’s progress. Starting out as a metaphorical hiker, the employee advances from the valley (basic level) to the mountain (intermediate level), earning status as an “explorer.” Successfully advancing from the mountain to the summit (expert level) gives the employee the rank of “alpnist” – the highest level of specialization in the knowledge category.

“Gamification is a very important element at Campus BBVA, and now also at The Camp, as it allows us to design experiences in which employees feel much more identified and increase their level of commitment to the learning process,” Concejo said. “In the end, we try to ensure that the employee is motivated enough to move forward with their development in a continuous and sustainable manner over time.”

Here is our weekly look at fintech innovation around the world.

Latin America and the Caribbean

Asia-Pacific

Sub-Saharan Africa

Central and Eastern Europe

Middle East and Northern Africa

Central and Southern Asia

Photo by Romina BM from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

Thought Machine Integrates with Wise

Thought Machine Integrates with Wise
By David Penn Posted on
Categories: Alumni News, Daily news, Thought Machine, TransferWise, Wise

Cloud native core banking technology innovator Thought Machine has partnered with international payments company Wise (formerly Transferwise) in a deal that will enable banks, fintechs, and other financial institutions that are using ThoughtMachine’s core banking engine, Vault, to take advantage of the low-cost international fund transfer services provided by Wise.

“We have built a world-class financial technology partner ecosystem which our clients can tap into as they build a future-proof bank,” Thought Machine CEO Paul Taylor explained. “The firms we choose to partner with are those that have built meaningful, ultra-reliable products that ultimately improve the banking experience for customers. We look forward to working with Wise to bring its industry-leading payments solution to many more financial institutions, and customers, around the world.” 

To ensure cross-system interoperability, Thought Machine and Wise have built an integration layer that cuts down on the amount of development work needed to plug into Wise’s API by as much as 60%. The partnership is a response to the growing demand for faster, more affordable, and transparent multi-currency banking, and comes amid a broadening trend away from reliance on legacy core banking technology and traditional correspondent banking networks.

“Though the internet has transformed much of the economy, the global banking system has lagged behind and moving money internationally has remained slow, difficult, and expensive for most,” Wise Platform & Wise Business Managing Director Stuart Gregory said. “Our mission is to change this 一 a goal we share with Thought Machine. Our integration today makes it quicker and easier for financial institutions and banks to enable faster and cheaper payments for their customers and brings us one step closer to our mission of building money without borders.”

Wise is actually the second money transfer company that Thought Machine has teamed up with in the first half of 2021. In February, the company announced that it was working with TransferGo, who will use Thought Machine’s Vault to provide advanced platform capabilities that will enhance the customer experience. The company also recently forged partnerships with German software engineering company GFT to launch challenger bank BankLiteX, and with full-stack fintech solution provider Vacuumlabs, which leveraged ThoughtMachine’s Vault to power a virtual bank in Hong Kong. An alum of FinovateEurope, London-based Thought Machine has raised more than $148 million in funding.

A Finovate alum since 2013, Wise moves more than $6 billion every month, saving its 10 million customers $1.5 billion in hidden fees every year. Rebranding as Wise in February, the company unveiled its product roadmap earlier this month, highlighting new initiatives in customer experience, spending and cards, expansion, small business services, and security. The company offers a multi-currency account that enables individual users to take advantage of real exchange rates in more than 50 international currencies. Wise Business provides payment services including invoice payments, debit cards, P2P payments, and cash management to more than 400 businesses. The firm includes companies ranging from fellow Finovate alum Xero to challenger bank N26 among its customers.

Photo by Aphiwat Chuangchoem from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

Google Pay Steps Up Embedded Finance, Banking Tools

Google Pay Steps Up Embedded Finance, Banking Tools
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Google

After reviving Google Pay in November of last year, Google made an announcement today that is sure to turn some heads in the fintech space. The two most relevant elements in today’s news release are new shopping options and spending insights.

To offer new shopping options, Google has partnered with Safeway and Target to help users browse weekly deals on groceries at Safeway and Target locations from within the Google Pay app. The app will enable shoppers to save their favorite items to purchase at a later date. Soon, users will be able to turn on push notifications to see deals from 500 Safeway stores and nationwide Target stores when they are nearby (if they have location services enabled).

The additional embedded shopping tools bring added stickiness to the app. However, Google will need to offer shopping experiences at more than just two stores to truly capture users’ attention.

Google Pay’s new spending insights tool comes a bit closer to what consumers may expect to see at their traditional bank. Via the Insights tab, users can see their account balance, view upcoming bill reminders, analyze weekly spend summaries, and receive alerts when large transactions are made. Under the Insights umbrella, Google also made it easy for users to view transactions by merchant or by category.

While the new spending insights may prove to be useful to shoppers, without more robust budgeting, planning, and forecasting tools Google Pay is unlikely to win consumers over from their traditional bank.

In today’s release, Google also added two more cities in which travelers can pay for transit. Via an integration with Token Transit, users in the San Francisco Bay area and Chicago can purchase and use mobile transit tickets through the Google Pay app. The two new cities join the list of 80 cities and towns across the U.S. that already offer travelers transit purchasing capabilities via Google Pay.

Regardless of the shortcomings of today’s new features, both banks and fintechs should be wary of Google Pay’s next moves. The app’s embedded finance capabilities, including grocery shopping and added transit ticket purchasing, are a signal of what is to come. Similarly, if Google Pay continues to add more personal financial management tools, such as budgeting and retirement planning, consumers may want to spend more time within the Google Pay environment and less time in their traditional banks’ app.

Share this:

Send Post Twitter LinkedIn Facebook

FinovateSpring: The Power of Data and the Role of the Customer in the Post-COVID Era

FinovateSpring: The Power of Data and the Role of the Customer in the Post-COVID Era
By David Penn Posted on
Categories: FinovateSpring 2021, Speaker series

Our all-digital spring fintech conference is right around the corner. Here’s a look at some of the luminaries who will be sharing their insights at this year’s FinovateSpring, May 10 through May 13.

Seven in Seven

For years, we’ve put our demoing companies to the seven-minute test. Now its our experts’ turn on the clock. Our Seven in Seven main stage session on Tuesday, May 11, gives seven analysts, innovators, and executives seven minutes each to share their insights into the most critical issues facing banks and fintechs in 2021 and beyond.

  • Ronit Ghose, Citi – Bio
  • Hugh Shannon, OakNorth – Bio
  • Siri Borsum, Huawei – Bio
  • Alex Weber, N26 – Bio
  • Charles Potts, Independent Community Bankers of America – Bio
  • Nadia Edwards-Dashti, Harrington Star Group – Bio
  • Alex Johnson, Cornerstone Advisers – Bio

Main Stage Keynotes

Looking for a 30,000 foot view of the fintech landscape? Our mainstage, keynote addresses examine the terrain.

The Pandemic’s Lasting Impact on Financial Services and What Comes Next

The pandemic pushed financial services companies to innovate and accelerate their digital transformations overnight. Hitting the industry’s reset button has created growing pains and increased competition for some and opportunities for others, including new customers and partnerships– but what does this mean for the future of banking?

Melissa Manne, Marcus by Goldman Sachs – Session – Bio

Enabling a Data-Driven Enterprise

To streamline and automate compliance activities, leading firms are now implementing an enterprise data fabric to bring together data from across the enterprise, reducing manual effort, increasing accuracy, lowering latencies, and simplifying operations.

In this session we will present a subset of the research findings, describe what top analysts are calling “the future of data management,” and how it is being used to streamline both compliance initiatives and accelerate strategic business initiatives at top financial services firms.

Joe Lichtenberg, Intersystems – Session – Bio

How Covid Has Transformed Global eCommerce & Omnichannel Payments

How Will True Mobile Wallets Evolve & Will They Be Able To Connect Internationally?

Will Graylin, OV Loop – Session – Bio

A Digital Banking Roadmap For Community Banks & Credit Unions: Start With The Customer & Work Back

Rilla Delorier, Coastal Community Bank – Session – Bio

Power to the Panels!

From insights into customer engagement to expanding the role of women in fintech, our mainstage Power Panel discussions offer deep dives and diverse opinions on key issues in our industry.

Customer Insights – Sharing Real Life Examples Of Best Practice In CX And How To Blend Human & Digital CX

  • Dominic Venturo, U.S. Bancorp – Bio
  • Camilla Morais, Brex – Bio
  • Stephen Goldstein, RGAX – Bio
  • Lamont Young, Citizens Bank – Bio
  • Alyson Clarke, Forrester – Bio
  • Read more

How Will New Technologies, New Competitors And New Business Models Shape The Future Of Payments? Is Payments Orchestration About To Have Its Moment?

  • Andrew Steele, Activant Capital – Bio
  • Carolyn Criscitiello, Santander Bank – Bio
  • Eric Van Miltenburg, Ripple – Bio
  • Gilles Ubaghs, Aite Group – Bio
  • Read more

Lending 2.0 – What Are The Problems That Need To Be Solved For Consumers & SMEs In The New COVID 19 World?

  • Mark Ruddock, BFS Capital – Bio
  • Mercedes Bent, Lightspeed Venture Partners – Bio
  • Tom Burnside, LendingPoint – Bio
  • Louise Beaumont, TechUK – Bio
  • Read more

Paving The Way For The Next Generation Of Female Founders & Executives – How Can We Reach A Gender-Neutral Future In Financial Services?

  • Nisa Amoils, A100x – Bio
  • Sarah Wolter, FinTech Collective – Bio
  • Cat Hernandez, Venture Collective – Bio
  • Michelle Tran, NYC Fintech Women – Bio
  • Read more

Tickets for FinovateSpring are available now. Book your reservation by April 30 (this Friday!) and save $100 on the price of your four-day, all-access pass!

Photo by PhotoMIX Company from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

Personalizing the Digital Divide at FinovateSpring

Personalizing the Digital Divide at FinovateSpring
By Julie Muhn (@julieschicktanz) Posted on
Categories: FinovateSpring 2021

We may still be enduring the absence of in-person networking, but there are a handful of ways to stimulate casual banter among conference participants.

At FinovateSpring, taking place digitally May 10 through May 13, we are making it as easy as possible for attendees and speakers to engage with each other through interactive roundtable sessions, networking “rooms” and a digital cafe.

One avenue we’ve found particularly useful to bring a personal element to the demo presentations is our curated set of 25-in-5 videos. In these videos, our team asks 25 rapid-fire questions in under five minutes to the demo companies at FinovateSpring.

My favorite part of these videos is that they bring a human element to each demo company. That’s because we ask the presenters off-beat questions that help you get to know them on a more personal level.

All of the 25-in-5 interview videos will be available as exclusive, on-demand content within the FinovateSpring Digital event platform. If you’re registered, keep an eye out for early access to schedule meetings and curate your event-day agenda with the sessions that most interest you.

And don’t worry about missing out. There’s still time to register, and with no need to buy a plane ticket and book a hotel room, FinovateSpring is more accessible than ever.

See you in the networking hall!

Share this:

Send Post Twitter LinkedIn Facebook

Fiserv Launches QR Code Payments at the Point of Sale

Fiserv Launches QR Code Payments at the Point of Sale
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Fiserv

Today brings yet another indication that QR codes are back in style. Fiserv announced it is partnering with PayPal to enable businesses to use QR codes to offer touch-free payments at the point of sale.

Through the partnership, small and mid-sized businesses using Fiserv’s Clover point of sale and large enterprises leveraging the company’s Carat commerce ecosystem will be able to accept payment via PayPal and Venmo through QR codes at the point of sale.

“With consumer preference shifting towards touch-free interactions, it’s critical that businesses are able to connect physical and digital commerce,” said Fiserv’s Head of Global Business Solutions Devin McGranahan. “By enabling consumers to pay digitally via a QR code and popular digital wallets like PayPal and Venmo, businesses are providing added convenience and choice as in-person shopping, dining and entertainment experiences resume.”

As shown in the video above, the QR codes make the touch-free payment process relatively frictionless. Nonetheless, there is one catch– users must have a PayPal or Venmo account and mobile app.

Consumers may be willing to endure the extra friction, however, as people have become more likely to try out new digital technologies in the wake of the pandemic.

Fiserv’s announcement comes about a month after the company agreed to acquire payment processing and payment acceptance startup Pineapple Payments.

Founded in 1984 and headquartered in Wisconsin, Fiserv’s technologies serve nearly six million merchants across the globe. Frank Bisignano is president and CEO.

Share this:

Send Post Twitter LinkedIn Facebook

Kid Capitalism: Teen Banking App Step Secures $100 Million in Series C

Kid Capitalism: Teen Banking App Step Secures $100 Million in Series C
By David Penn Posted on
Categories: Daily news, Funding

Just a few days after Till Financial picked up a $5 million investment for its “kids-focused” spending management app and Greenlight raised a whopping $260 million for its technology that helps parents raise “financially smart kids,” teen banking app Step announced that it had scored $100 million in Series C funding for its financial wellness solution dedicated toward helping young people develop sound financial habits.

“Our mission is to help improve the financial futures of the next generation and we’re thrilled to have such a massive vote of confidence from investors, especially during Financial Literacy Month,” Step CEO and founder CJ MacDonald said. “Thirty-eight percent of teens say they lack the financial resources needed to achieve financial independence and this is a problem Step is well positioned to help solve as we educate millions of households every day.”

The round was led by General Catalyst and featured participation from an exceptionally diverse group of existing investors. This roster included Coatue, Stripe, Charli D’Amelio, The Chainsmokers’ Mantis VC, Will Smith’s Dreamers VC, Jeffrey Katzenberg’s firm WndrCo, actor Jared Leto, Franklin Templeton and NBA All-Star Stephen Curry. The investment takes Step’s total funding to more than $175 million.

In the time since Step launched in September of 2020, the company has amassed more than 1.5 million users of its financial wellness app. Step gives users a free, FDIC insured bank account, a secured spending card, and access to a P2P payments platform that enables users to send and receive money instantly. With 88% of the company’s users saying that Step is their first bank account, the platform claims that it is the only banking platform that enables youth to build a positive credit history before they reach 18 years old.

“For too long, conversations about money –– specifically how to manage it –– have been avoided despite what a critical role they play in shaping the future of the next generation,” actor, musician, and serial tech investor Jared Leto said. “Over twenty years ago, I set out to tackle this problem by starting a company in the space, so I’m excited to see Step addressing the financial literacy crisis head on with game-changing technology built to help young people learn about money in their digitally native environments.”

Step is headquartered in San Francisco, California, and was co-founded by MacDonald and Alexey Kalinichenko. The company’s financial solutions are backed by bank partner Evolve Bank & Trust.

Share this:

Send Post Twitter LinkedIn Facebook

Tips & Trends of Fintech Leadership

Tips & Trends of Fintech Leadership
By Charlie Burgess Posted on
Categories: Diversity in Fintech, Interview, Women in Fintech
Top tips

Julie Muhn chats with Rita Martins, FinTech Partnerships Lead – Innovation Finance and Risk at HSBC about her experience as a woman in fintech, trends she’s seeing across the industry, and what can be done to encourage more female founders.

Tell us about yourself and your career path to your current role.

Rita Martins: My career started with an internship at Santander in Asset Management managing mixed portfolios. After a few months, a great opportunity came up to join the consulting world. Working at Ernst and Young and later at Accenture, I travelled the world driving large scale transformation projects and advising C-Suite on the applicability of new technologies in finance. During this time, I started diving into the fintech world and noticing first-hand how fintechs were making a difference in developing countries (despite challenging conditions, everyone had a phone and used it for payments).

In 2018 I moved to HSBC, where I currently Lead FinTech Partnerships for Finance and Risk. I am responsible for managing relationships with third parties and driving collaboration between fintechs and traditional financial services SMEs.

What trends are you seeing driving fintech this year? Are they different to previous years, or when you first started in the industry?

Martins: Nowadays, fintech companies are much more mature than when I started in the industry. Fintechs discovered where they can have an impact and when to partner with others in the market.

This year we continue to see fintechs emerging in the Artificial Intelligence (AI) and Cloud spaces. Additionally, there is a new trend in ESG (Environment Social and Governance), with many new fintechs researching and developing solutions in this space. 

In your opinion, what is the secret to a successful partnership between bank and fintech?

Martins: There isn’t one factor but a combination of factors that lead to a successful collaboration. Before a partnership is created, both parties need to understand if their culture, goals, and strategy are aligned. An ideal partner will be someone who complements the other and brings new ideas to the table to ensure continued innovation.

After papers are signed, there needs to be an open and frequent dialogue to ensure issues are quickly solved, targets are met, and any changes needed are settled.

What is important to you to see from a fintech leader/ founder of a new start-up you’re looking to work with?

Martins: A fintech-bank partnership is much more than finding great technology; human interaction is vital. When looking for new partners, the fintech leader or founder is often the one representing the company, so in the initial discussions, we would be looking at a combination of factors:

  • 1. Their knowledge of the technology and industry
  • 2. Their values and how they connect with our team
  • 3. How innovative they are and what new ideas they bring to the table
  • 4. What their goals for the partnership are, and how flexible they are

Do you see many women leading fintechs or in senior positions? Is there enough diversity across the board in these roles?

Martins: No, there is still a noticeable lack of women and minorities in senior positions and even fewer women founders. 

Typically, women who work in fintech will have roles in sales, communications, or marketing with a noticeable gap in the technology and senior roles.

So, what can the industry do to better encourage women to get involved with fintech?

Martins: I would challenge the industry to do more at the senior level. Those changes will empower young women to join the industry, retain existing leaders, and decrease the pay gap.

Two key areas that need immediate change are:

  • More investment needs to go into female-founded fintechs. In 2020, only 2.3% of VC capital went to female-only founded start-ups (according to Crunchbase)
  • Banks and fintechs boards and leadership need to be more diverse. In 2020 women represented only 14% of fintech boards (according to Oliver Wyman)

Listen to more from Rita as she looks back on her experience at FinovateEurope 2021 below

Share this:

Send Post Twitter LinkedIn Facebook