Divvy Sells to Bill.com for $2.5 Billion

Divvy Sells to Bill.com for $2.5 Billion

Corporate expense management platform Divvy has agreed to sell to small business financial software provider Bill.com for $2.5 billion.

Adding Divvy’s technology to its platform expands Bill.com’s solution. The new capabilities will help the California-based company enable its 115,000 customers to automatically manage accounts payable, accounts receivable, and corporate card spend. Additionally, Divvy’s tools will offer businesses real-time insight into their B2B spending and provide them access to multiple payment solutions.

Combining the two companies also boosts Divvy’s capabilities. The Utah-based company will be able to offer its 7,500 small business customers automated payable, receivables, and workflow capabilities. “As we listened to our customers, we heard them ask for a comprehensive payments platform so that they don’t have to use multiple software systems to manage their finances,” said Divvy CEO and Co-Founder Blake Murray. “Today I’m proud that Divvy is joining Bill.com to bring the one-stop-shop platform that our customers and the market have been asking for.”

“Since founding Bill.com, I have been driven by the desire to build solutions that make a real difference for small and mid-sized businesses. Customers have been asking us to help them with their spend management, and I am excited that together with Divvy, we can deliver on that ask, furthering our vision to transform SMB financial operations. Our expanded platform will provide more automation and real-time information to SMBs, enabling them to make more informed decisions,” said Bill.com CEO and Founder René Lacerte. “We are excited to work with the talented Divvy team. We have a shared passion for helping SMBs succeed and both companies are driving our customers’ digital transformations. Together, we can further empower SMBs to transition quickly and easily.”

Today’s deal is expected to close by the end of September and is subject to regulatory approvals closing conditions.

Bill.com was founded in 2006 and went public in 2019. With a market capitalization of $12.33 billion, the company trades on the New York Stock Exchange under the ticker BILL.

Founded in 2016, Divvy has raised $418 million from investors including PayPal Ventures, Insight Partners, and New Enterprise Associates.


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SEON and the Fight against Cyberfraud in Financial Services

SEON and the Fight against Cyberfraud in Financial Services

How have financial services companies coped with the rising challenge of cybercrime in the Work From Anywhere era? We caught up with Tamas Kadar, co-founder and CEO of SEON, a cybersecurity startup based in Hungary, to learn how the company – featured in Forbes’ Hottest Young Startups in Europe – helps firms meet regulatory obligations and better defend themselves against fraud.

Tell us about SEON. When was the company founded and what problem was the company founded to solve?

Tamas Kadar: Founded in 2017, SEON was born out of necessity. Prior to its launch, co-founder Bence Jendruszak and I owned a budding crypto exchange, which was repeatedly hit by instances of fraud. We urgently needed a solution that would help us resolve the problem, but found that there were none on the market suitable for our business structure.

The problem was that most anti-fraud solutions in the industry had long integration times, lengthy contracts, and different packages for different sized businesses. We needed a solution that was more flexible and could be integrated and functional almost immediately. So we took matters into our own hands and developed a solution that would meet these needs. This later became SEON.

SEON’s services remove the barriers to fraud prevention that many companies face today. The solution can be integrated into business structures in minutes – a far cry from the usual weeks it takes for many mainstream solutions. It is suitable for businesses of any size, has a free trial period, and works on a rolling monthly contract, meaning that businesses can cancel and take up our services without being bound by long contracts – much like a Netflix for fraud prevention. 

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

Kadar: Having studied Deep Info Comms at the elite Corvinus University, where Bence studied General Management, we both had the knowledge needed to get SEON off the ground. It was there that I learned about the fraud tactics being used to get around the latest fraud prevention strategies. Having this insight, along with my technical know-how and Bence’s managerial skills, we had the confidence to move forwards with SEON.

It was clear that there were some pain points in the fraud prevention industry that needed addressing. We felt that we were the right people to do so.

Who are your primary customers in financial services and how do their needs differ from those of your customers in other industries?

Kadar: Neo banks, traditional banks, PSPs, buy now pay later (BNPL) and other fraud tech companies, account for about 25% SEON’s portfolio. The rest is made up of a whole range of different industries, including some of the most high-risk. Other sectors we serve include iGaming, eSports, cryptocurrencies and online trading, and travel.

The services we provide to financial institutions differ from others as they focus more on regulatory compliance, reducing cost when it comes to Know Your Customer (KYC) checks, and preventing money laundering. We also protect account openings, reduce customer acquisition costs, decrease bonus abuse, and flag fraudulent merchants using stolen credit cards.

By contrast, other industries use us to protect themselves against fraudulent activity such as account takeover, while we mitigate chargebacks for ecommerce merchants. We also prevent fraud surrounding ticketing in the airline industry.

Tell us a little bit about the technology behind your solution. What are the most effective tools for combating cybercrime?

Kadar: SEON has a number of solutions that are highly beneficial for helping businesses prevent fraud, including the SEON Sense Platform and Intelligence Tool. We draw on data from across the internet to establish customers’ digital footprints, weaning out false accounts and actively preventing fraudulent transactions from taking place. 

Driven by transactional data, the SEON Sense Platform provides a comprehensive end-to-end solution for fraud managers that can be tailored to the individual needs of a company.

Meanwhile, our Intelligence Tool increases fraud detection accuracy with just one click. Users can simply enter an email address, IP address, phone number or location into the browser extension to get background information, which then enables fraud managers to see complete user profiles and flag suspected fraudulent ones. As a result, companies can detect fake accounts with ease.

These solutions address a number of problems in the fraud prevention industry. They can be integrated via a Google Chrome link or API within minutes, and as they work in entirely in the back-end, there are no added layers of friction for consumers.

In addition, our solution acts as a marker for the move away from the industries overreliance on artificial intelligence (AI) and machine learning (ML) alone. AI and ML are often seen as a magic pill that will solve all of a business’ fraud woes and are left to resolve issues without the proper supervision. This impacts reportability because it isn’t always easy to establish the reason for certain decisions that a solution has made. Instead, our solutions are based on a supervised learning approach, giving fraud managers the information needed to make effective decisions. 

How has COVID-19 impacted your company and its customers? What are your biggest takeaways from the experience?

Kadar: The flexibility of our solution has meant that we have been able to easily adapt to changes imposed by the pandemic. One of the largest changes we’ve seen in terms of fraud is the amount that is taking place. Many businesses moved into the online space in order to survive lockdowns and social distancing measures. The problem is that online fraud grows in line with online activity, so the amount of fraud that is taking place there has rapidly grown. As a result, our main focus has been on industries that have felt these changes the most – especially high-risk industries such as iGaming and eSports.

The solutions developed by SEON have made an enormous impact on the way our customers can manage, monitor, and mitigate fraudulent activity. Key to our ability to provide such solutions has been our open lines of communication with our customers. It’s important that newly digitised businesses understand that fraud prevention is an evolving practice and their feedback is vital to its success.

For example, our customers know they are encouraged to contact us whenever something changes within their business, be that a release of a new software update or simply a realisation that their customers often use other social registries that we haven’t been monitoring. With this knowledge, we can quickly begin developing new lines of defence.

What is the most important thing about the technology scene in Hungary that many people outside of the area might be surprised to learn?

Kadar: Setting up SEON wasn’t all plain sailing. Bias can often hamper the growth of startups outside of traditional European hubs such as London and Munich, meaning it’s difficult for businesses to secure the investment needed in order to scale.

This is especially true for Central Europe. Bence and I found this out the hard way. When getting SEON off the ground, we found that many European investors were skeptical when it came to startups from Central and Eastern Europe.

Still, we see launching SEON in Hungary as not only a blessing, but an advantage when it came to creating a unique product that the fraud prevention industry was desperately in need of. Being outside a typical startup hub has resulted in the company being more creative, more agile and, contrary to many seed level businesses, more resilient.

Establishing SEON in Hungary also greatly reduced our outgoings, allowing us to use the initial investment we secured to grow. This is because the talent pool in Eastern Europe met the needs of the business. It’s naturally abundant in people with mathematics, computer science, and AI-based skills, which has provided us with the human capital necessary to develop and maintain our fraud solution, without initially having to set up offices elsewhere. 

You recently received a major investment – the biggest Series A round in Hungarian history. How important was this funding and what will it enable SEON to do?

Kadar: As part of the funding round, which was led by leading European early-stage investor Creandum, we secured €10 million (USD 12 million) in series A investment. This is a pivotal point in our company’s growth and will drive us in our mission to democratize fraud prevention by removing the barriers that many companies face.

With the investment, we plan to expand our presence in the U.S. and U.K., with the aim of having our London headquarters account for more than 30% of our revenue. We will also be shortly announcing the launch of our new U.S. office, along with our plans for the region.

In all, this investment will take our company to the next level, enabling us to not only better serve our existing customers but also provide our services to even more businesses across the globe.


Here is our look at fintech innovation around the world.

Asia-Pacific

Sub-Saharan Africa

Central and Eastern Europe

Middle East and Northern Africa

Central and Southern Asia

Latin America and the Caribbean


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Building Trust: How Video is Reshaping Digital Customer Engagements in Banking

Building Trust: How Video is Reshaping Digital Customer Engagements in Banking
Video for banking

Upcoming webinar
Title: Beyond Images: How Video is Reshaping Digital Customer Engagements in Banking to Drive Agile Growth
Date: Wednesday, June 09, 2021
Time: 2:00 pm Eastern Daylight Time
Duration: 1 hour

Leading brands are adding real-time video to digital customer engagements as a way to improve customer service and sales effectiveness. Video can enable service and support workers to add human empathy to digital customer engagements. Forrester advises that adding video can boost loyalty and revenue.

Join the latest webinar to explore:

  • How the COVID pandemic accelerated the need for better digital customer experiences that can convey humanity and empathy
  • Review real-world success stories of enterprises that have created a video-based “guided customer experience” in their apps and websites to drive higher customer satisfaction, higher revenue, and higher customer retention
  • The difference between using a third party video meeting tool and adding video-as-a-service embedded into your existing website or app… and which strategy is right for you

Featuring Tom Martin, CEO, Glance Networks and David Penn, Research Analyst, Finovate. 

Register now >>

Ripple Brings on Kristina Campbell as CFO

Ripple Brings on Kristina Campbell as CFO

Payments network Ripple is bolstering its ranks this week with the appointment of Kristina Campbell as CFO.

Campbell has been tapped to drive Ripple’s financial strategy, accelerate growth, and deliver value to shareholders. She most recently served as CFO at PayNearMe and has also held multiple roles at GreenDot.

“Digital asset technology allows us to rethink and improve the systems and infrastructure around how money moves. With this technology, we will make the global financial system accessible to all,” said Campbell. “Ripple is uniquely positioned to improve global payments in ways that have yet to be defined and I’m excited to be a part of that solution.”

Ripple also revealed that Rosa Gumataotao Rios, 43rd Treasurer of the United States, has joined its Board of Directors. In her role as Treasurer, Rios oversaw all currency and coin production and focused on economic development, urban revitalization, and real estate finance.

“I’ve dedicated my career to financial inclusion and empowerment, which requires bringing new and innovative solutions to staid processes. Ripple is one of the best examples of how to use cryptocurrency in a substantive and legitimate role to facilitate payments globally,” said Rios. “Blockchain and digital assets will underpin our future global financial systems. Cryptocurrency is the what. Ripple is the how.”

Ripple CEO Brad Garlinghouse said that the new appointees come “at a pivotal time for the company.” Garlinghouse’s phrase, “pivotal time,” is in reference to Ripple’s international expansion efforts; earlier this spring the company acquired a 40% stake in Asia-based cross-border payment specialist Tranglo. It is also a head nod to the lawsuit Ripple is currently facing.

The U.S. Securities and Exchange Commission (SEC) alleged that Ripple co-founder Chris Larsen and CEO Brad Garlinghouse conducted an illegal securities offering that raised more than $1.3 billion through sales of Ripple’s XRP currency. Ripple, which considers XRP as a currency and not an investment contract, is denying the allegations.

Backed by SBI Holdings, Santander, Andreessen Horowitz, and Lightspeed, Ripple has raised $294 million and is valued at $10 billion.


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FinDEVr Shines a Light on Fintech’s Developers at FinovateSpring

FinDEVr Shines a Light on Fintech’s Developers at FinovateSpring

With apologies to LL Cool J, feel free to call it a comeback.

FinDEVr, our conference series dedicated to developers in fintech and financial services, is back. We’re saving the final day of FinovateSpring this year to shine a light on the role that developers continue to play in building and applying the technologies that keep fintech at the cutting edge.

Some of Finovate’s most illustrious alums have, in fact, been alums of FinDEVr. Among those at the top of the list are innovators like Plaid. The company, nearly acquired by Visa for more than $5 billion last year, was a big part of one of our earliest FinDEVr events in 2014 where it introduced its “API for Financial Infrastructure” to fintech audiences.

FinDEVr has also served as a platform for innovative fintechs not just from outside of Silicon Valley, but from outside the U.S., as well. An excellent example of this kind of FinDEVr alum is Nubank. Making its FinDEVr debut at our first developers conference on the east coast, FinDEVr New York, in 2016, the Brazilian financial services startup has grown into a major regional neobank and the biggest fintech in Latin America with more than 34 million customers.

For this year’s return, FinDEVr will feature a quintet (or more!) of innovative companies that are busying building tomorrow’s fintech today. Each company will provide both a TECHTalk and an informative workshop to dive deeper into the enabling technologies being discussed. Take a look at our current line-up below, as well as the topics we’ll be talking about.

Connecting Siloed Financial Data: Open Banking’s Impact on the Financial Experience

Join Finicity as they explore the implications of an open financial ecosystem, shifting control to consumers, what the impact is for technologists and developers, and how open banking is being leveraged to improve financial literacy and inclusion. Finicity will follow this with a workshop on how to leverage the power of open banking with a hands-on introduction to their platform. Learn more.

The Tango: Operationalizing Predictive Models, an Engineering and Data Science Collaboration

Instnt will examine the different workflows followed by data science and engineering and discuss why they must come together in the deployment and maintenance of application models. The conversation will be followed by a workshop on rapid feature development and analysis in the identity verification space. Learn more.

Simplifying the complex with an innovative tech stack

LoanPro’s TECHTalk will discuss the importance of a modern and secure technology stack that is cloud-based, uses a configuration first approach, and maintains security throughout the process. LoanPro will follow up with a workshop on how to connect with and build loans via LoanPro’s API in less than 90 minutes. Learn more.

Data for sustainability

What is the relationship between data, sustainability, and financial services? In their TECHTalk Ecolytiq will discuss how their Sustainability-as-a-Service model helps ensure that financial institutions have access to relevant, contextual information at the right time. After the presentation, Ecolytiq will lead a conversation on how to ethically manage different data assets, and how to integrate them into the decision-making process. Learn more.

Scalable fintech product development

How can product development teams keep up with the rapid pace of fintech product adoption while remaining efficient and keeping costs down? Praxent’s TECHTalk will examine this challenge in greater detail and highlight ways to resolve productivity challenges. The workshop afterward will feature best practices for identifying bottlenecks in the development process and how to accurately benchmark your team’s progress. Learn more.


To find out more about the return of FinDEVr, visit the FinDEVr section of our FinovateSpring hub for more information.


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Till Financial and the Importance of Fintech for Families

Till Financial and the Importance of Fintech for Families

In this past few weeks alone we’ve heard from a number of fintechs that are dedicated to helping kids learn how to be responsible with money.

We caught up with Taylor Burton, co-founder of Till Financial, one of the many companies that are innovating in the youth financial wellness space. The Massachusetts-based startup, launched in 2018, introduced its free, collaborative family banking platform this spring. At the same time, Till secured $5 million in funding in a round led by Afore Capital – which is where our conversation begins.

You’ve just secured a significant investment. What does the funding mean for Till?

Taylor Burton: It means an increased ability to positively impact the trajectory of kids as they prepare for launch. The group of investors that we assembled share our vision for how collaborative family banking should look—we are excited to continue to add more supporters as we scale our platform. 

We are thrilled to have the support of like-minded investors including Elysian Park Ventures, Pivotal Ventures with Magnify Ventures, Afore Capital, Luge Capital, Alpine Meridian Ventures, The Gramercy Fund, SM Ventures (the family office of the founders/CEOs of Stadium Goods) and Lightspeed Venture Partners’ Scout Fund. Also participating were angel investors such as the founders of fintech Petal, the founders of alcohol marketplace Drizly, the president of Transactis, and the president of 1800Flowers.

We will be adding to our high-quality team in all areas that support our customers through their journey on Till.  Marketing that provides the content to help families have the first “real” conversation about money.  Development to accelerate our vision of what our product can be, plus integrate all the great ideas coming out of the Till user community.  And customer success to ensure that a Till family is maximizing its experience on the platform.

How does Till help empower children to become smarter spenders?

Burton: Till is designed to encourage open and honest discussions between parents and their kids. The goal is to help kids learn by doing and to gain confidence in spending decisions. We do this in the following ways: 

The right tools: Till equips kids with their own bank account, digital and physical debit cards, and goal-based savings tools. 

Emphasis on community: A child can easily set up a goal on the app that they can use to start saving toward and give family members (such as grandparents, other family members or community members) the opportunity to help pitch in. This gives members of the child’s network an opportunity to support them towards their goals. After all, it takes a village, and Till helps facilitate that. 

Visualizing financial responsibility: Kids can also set up recurring payments for different ongoing responsibilities or subscription services that will get them used to the concept of paying bills on a timely basis. 

That being said, along with teaching kids valuable saving habits, we want to be advocates for kids to feel empowered in their spending decisions just as much, if not more. Parents and the traditional legacy banking options tend to focus mostly on a child’s savings. At Till, we believe that we need to prioritize preparing kids to be smarter spenders, while supporting them through savings and investing. On our platform, kids learn to spend with intention and purpose, while parents gain confidence and trust based on transparency and accountability.

What is unique about the method that Till Financial uses?

Burton: One unique part of the app are the financial agreements which allow kids to have greater agency and responsibility over their money. Parents can create agreements and tasks that encourage kids/teens to understand the value of every dollar. By visualizing the financial responsibility of earning every allowance, they are able to be active participants in their financial journeys.

Additionally, as families are more spread out over time, Till reinforces the impact of community by leveraging family, friends, and members of their close networks to help the child reach their financial goals. Till also offers merchant partners curated with kids’ interests in mind. As we continue to grow, we will have more opportunities to add on to this list and provide kids with more incentives. 

How does Till make money?

Burton: Till aims to be “first in wallet” and “only in wallet,” unlike other card offerings targeted at adults fighting to be “top of wallet.” Till captures value (revenue) when we deliver value to our customers. Unlike other legacy banks—and even some early digital ones that often time charge monthly or subscription fees—Till is free to all consumers, making us accessible to all users.

Till earns revenue in three ways: We earn an interchange fee (like all debit/credit cards) for facilitating the transaction between our users on vendors. There are also affiliate fees. We want our user’s dollars to go farther.  We are negotiating both broad and proprietary relationships with the vendors that our kids spend with each day. Our kids get access to discounts and exclusive access and we get a percentage when the kid does choose to make a purchase. Everyone’s a winner: the kids receive a steeper discount on items that they were already planning to buy, while the merchant gains a new customer.

Lastly, there’s origination. Consumers’ needs change over time and our ability to create the best outcomes for our families depends on focus. It is not Till’s intention to be a kid’s forever bank, just their first bank. With that in mind a Till kid should be treated with the respect that they have earned on our platform for positive financial decisions at launch. When the time comes for kids to leave the house and strike out on their own, Till introduces them to our launch offers market. There, they can receive preferential treatment on loans, credit cards, and adult debit/checking. The adult financial institution gets a better, more valuable client; our consumer receives the advantages they deserve for being of sound financial mind; and Till receives an origination fee. 

How important are partnerships to Till’s business plan?

Burton: Till’s merchant and venture partners are interwoven into our business plan to seamlessly offer kids/teens and their families the best resources to develop responsible spending habits. As Till continues to expand their merchant partnerships, kids will have greater access to exclusive offers that they can use on items that they are already planning to purchase. These key partners include top tier brands that kids already shop at such as Adidas, Stadium Goods, and Dick’s Sporting Goods. And, of course, we also believe that the partnerships with our investors are a key component of the continued success of Till. We want our investors to share the same mission of empowering the next generation of economic actors. 

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

Burton: For starters, all three of us co-founders are dads and we’ve all had our share of financial awakenings whether with our kids or ourselves personally. That being said, Till is not just for us, but for the 50 million families that know there is a better way to raise a family; where financial conversations are collaborative not confrontational, and where all of our kids are better prepared for the modern economy.

On the company-building front, the founding team brings together everything needed to build a valued and valuable company. I bring expertise in direct-to-consumer products in a heavily regulated market (Drizly and alcohol delivery), coupled with innovation success in payments rails and merchant partners integration (PayPal and card-linked offers). Tom (Pincince) came to me with this idea after selling his third company. This serial entrepreneur has built a career by finding gaps and opportunities created by market movements and technology changes. And then Brian (Chemel), a multi-time technical founder equipped to marry the best of the old and the new to build a secure and scalable infrastructure backing a delightful and engaging user experience.

Looking back on 2020, what is your biggest professional takeaway?

Burton: We learned to be comfortable with being uncomfortable. COVID-19 impacted people’s businesses differently and when you layer in a fundraise and being an early stage start up, that can either make you or break you. In our case I think it really codified our commitment to our mission and vision and has ultimately put us in the position we are in now. 

What can we expect from Till over the balance of 2021 and beyond?

Burton: Our first job is to become an integral part of millions of families’ every day financial activities. We do this by building an engaging platform that delivers both economic and social value. Along the way you will see Till add features that help parents and kids understand where they are on a financial journey and how their decisions can be rewarded by access to opportunities, experiences, and offerings. We are here to serve our users who are already helping us set priorities and guide us to new features and functionality. We are already getting requests for collaborative investing and philanthropic giving features, for example. 

We are thinking big because the market is massive– there are currently 50 million pre-banked kids in the U.S. and yet, the average middle-class family in America spends $284,570 per child by age 18. At Till, we believe kids are a major economic force, as $18 billion per year is given by parents to children in the form of an allowance (mostly as cash). We recognize that they are influencers on larger family decisions, such as cars, vacations, etc. By putting the spending power back into the hands of young people, we want to be the driving force that replaces awkward family conversations about money with real actions and experiential learning.

Cinco de México: 5 of the Region’s Top Fintechs

Cinco de México: 5 of the Region’s Top Fintechs

Mexico is known for a lot of things. The region is blessed with a rich food and drink culture, is home to historic Mayan temples, offers beautiful cenotes, and is lined with picturesque beaches.

Typically, Mexico is not associated with being a global fintech hot spot. However, the region is prime for growth. Half of Mexico’s residents are unbanked, more than half own smartphones, and 70% have internet access. These factors, combined with the country’s relatively young population (43% of people there are under the age of 25) make Mexico fertile ground for alternative banking services.

We took a look at Mexico’s 441+ fintech startups to bring you the top five (based on website visits):

Kueski

Founded in 2012, Kueski uses big data and analytics to approve and deliver loans in minutes. Headquartered in Guadalajara, Mexico, the online lender has delivered 3.3 million loans and raised $39 million in funding.

Kubo Financiero

Headquartered in Mexico City, Mexico, Kubo Financiero is a digital alternative lending platform that offers financial products including savings, personal loans, and term deposits. The company was founded in 2012 and is aimed at serving the country’s middle class.

Konfio

A digital banking and software tool provider, Konfio was founded in 2013 by David Arana and Francisco Padilla and is headquartered in Mexico City, Mexico.

Prestadero

Founded in 2012 and with $909 million in funding, Prestadero is Mexico’s most well-known P2P lending platform. The Mexico City, Mexico-based company offers competitive rates on both loans and investments, making it a popular alternative to traditional banking services.

Conekta

Leveraging AI, Conekta processes online and offline payments to enable financial institutions to identify fraudulent purchases by analyzing transaction behavior while encrypting and protecting financial information. The company is headquartered in Mexico City, Mexico and was founded in 2011.


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Fortú Launches to Bring Financial Wellness to the Latino Community

Fortú Launches to Bring Financial Wellness to the Latino Community

A new challenger bank launched this week with the goal of serving the needs of Latin American consumers in the U.S. Built on Galileo’s payment processing platform, Miami, Florida-based Fortú is dedicated to providing culturally-contextual financial and banking services to the country’s growing Latino and Hispanic populations.

Fortú co-founders Charles Yim and Apoio Doca bring a combination of Big Tech savvy and global neobanking experience to the task of better serving the 22% of Hispanic adults who, according to the Federal Reserve, are underbanked. Yim is a former Amazon Web Services and Google executive with a background in business development and partnerships. Doca helped build a pre-smartphone era digital bank based in Brazil called Lemon Bank that was acquired by Banco do Brasil.

The Fortú team features both first and second generation immigrants with family ties to many of the largest Spanish-speaking countries in Latin America. Together they bring this experience to the cause of helping others negotiate the unique challenges many Latinos and Hispanics face when banking in the U.S.

“Compared to other demographics, Latinos in the U.S. are more likely to live in multigenerational and multilingual households, with a significant percentage needing to send regular cross-border remittances, leading to an over-reliance on non-bank financial services,” Doca said. He added that financial barriers for Latinos and Hispanics can range broadly from a lack of non-English language services to more mundane annoyances like the tendency to randomly truncate Latino names – many of which do not fit within the 24-character embossing standard used by most financial institutions.

Fortú offers a digital bank account that can be opened without needing a social security number; a Mastercard debit card; fast, no-hidden-fee international transfers (courtesy of a partnership with Finovate alum Wise), as well as the ability to deposit cash at more than 100,000 retail locations like CVS and Walmart, and make free cash withdrawals at more than 55,000 Allpoint ATM locations.

“By creating products to answer the needs of Latinos, who are more likely than the general population to be under- and unbanked, Fortú has set itself apart from other neobanks, while transforming financial wellness for the Latino community,” Galileo CEO Clay Wilkes said.

Fortú has raised $5 million in funding from Valar Ventures and other investors. The fintech’s banking services are provided by LendingClub Bank.


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Curve Taps Cardlytics to Power Rewards Program

Curve Taps Cardlytics to Power Rewards Program

Loyalty and rewards may seem like dated technology. After all, the conversation around loyalty and rewards peaked in 2012 when merchant-funded rewards and in-statement offers were the hottest new customer acquisition bait.

Today’s banking environment that focuses on the customer is proving that the technology isn’t all hype, however. Almost a decade after the merchant-funded rewards conversation, there’s still activity going on in the loyalty and rewards space.

As proof, banking app and smart card Curve announced today it is partnering with purchase-based marketing intelligence firm Cardlytics, which will power Curve’s new rewards program. Dubbed Curve Rewards, the app will offer Curve users a range of rewards from Cardlytics’ brand partners, including Pret a Manger, JustEat, FatFace, Harvey Nichols, and Cult Beauty. Two of the merchants piloting Curve’s new program, Harvey Nichols and Cult Beauty, will offer 20% off and 5% off respectively.

Curve Rewards leverages Cardlytics’ purchase intelligence data and will help customers earn while they spend. This data-driven approach ensures that the rewards offered to the consumer are personalized to their spending habits.

“Today’s consumers want a reward scheme that is tailored to how they shop and why they shop,” said Cardlytics’ Head of Bank Partnerships Campbell Shaw. “We’re pleased to have built a reward scheme for Curve that does just that, putting customers back in the driving seat while building loyalty and engagement for Curve.”

The partnership is especially notable for Cardlytics. In the company’s thirteen year history, the partnership with Curve is its first digital-native brand. Up until this point, Cardlytics’ partnerships were primarily with traditional financial institutions, including Lloyds Banking Group, JP Morgan Chase, Wells Fargo, and Santander.


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Dwolla’s Evolution from Direct-to-Consumer

Dwolla’s Evolution from Direct-to-Consumer

Founded in 2008, Dwolla is one of the fintech originals. Because of its long-standing history in the fintech space, the Iowa-based company has been through a lot of changes as it evolves with banks, fintechs, and consumer demand.

Since its start, Dwolla has focused on offering an alternative to the traditionally slow ACH money transfer system. Initially, the company tackled this objective through a direct-to-consumer (DTC) product, which allowed individual users to sign up for Dwolla to make peer-to-peer money transfers and transact with the company’s merchant partners.

As part of its DTC solution, Dwolla even offered a cardless credit product called Instant. The tool would lend users up to $5,000 for one month, with no interest, in exchange for a $3 per month subscription fee.

As an evolution of its credit offering, the company partnered with Alliance Data to launch Dwolla Credit. The ecommerce point of sale product worked much like PayPal in that users would select a Pay with DWOLLA button at the point of sale to complete their purchase. Funds would transfer on Dwolla’s rails to enable merchants to receive the funds instantly in their Dwolla account.

Despite the company’s numerous innovations in the consumer space, Dwolla received the most traction from its bank-focused product, FiSync, a payments protocol for real-time money transfers. The success of this tool prompted the company to exit the consumer space in 2016 to focus on creating payment APIs.

Today, Dwolla’s API helps organizations integrate payments into their application to send, collect, and facilitate payments. Earlier this year the company doubled down on its roots in faster payments to deliver real time payments in collaboration with Cross River Bank. The new, instant payment option leverages the RTP Network to send money directly to a bank account in seconds.

In a post-COVID world in which consumers have been trained to conduct more of their daily transactions online, Dwolla’s real-time payments capability will play a key role. “The immediacy of real-time payments will fundamentally change how businesses operate,” said Dwolla CEO Brady Harris. “As electronic payments continue to grow in adoption, RTP is the perfect complement to our ACH and Push-to-Debit offerings.”

Dwolla, a three-time Finovate alum, most recently demoed at FinovateSpring 2015 where it debuted FiSync. The company has raised $51.4 million from investors including Union Square Ventures, High Alpha, and Foundry Group.


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Expensify Planning IPO

Expensify Planning IPO

In an era when SPACs are the hip new way to take a company public, corporate expense management technology company Expensify is taking the old fashioned route.

The San Francisco-based fintech announced this week it has submitted an S-1 document– a key step on the road to an initial public offering to the SEC. The S-1 was submitted confidentially. Since Expensify is considered an “emerging growth company,” the contents of the filing do not need to be made public until 21 days prior to the road show for the IPO.

Expensify, which reached profitability at the end of 2018, has not yet determined the size and price range for the proposed IPO.

Founded in 2008, Expensify launched with its flagship receipt-scanning app and a simple motto, “Expense reports that don’t suck!” Since then, the company has gone on to launch a corporate payment card, offer a COVID-friendly virtual travel assistant, and expand into billpay.

Expensify’s IPO is expected to commence after the completion of the SEC review process, subject to market and other conditions. The company has raised a total of $38.2 million. David Barrett, who Finovate interviewed about the company’s launch, is CEO.


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Online Stock Research Firm TipRanks Scores $77 Million

Online Stock Research Firm TipRanks Scores $77 Million

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).


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