Avant Acquires Digital Bank Level

Avant Acquires Digital Bank  Level

Online lending platform Avant is building out the breadth of services for its underbanked clients this week. The Illinois-based company acquired Zero Financial and its neobank Level for an undisclosed amount.

Level is built on the premise of helping users attain financial freedom. To differentiate itself from traditional financial services offerings, the digital bank offers cash back rewards on debit card purchases, a competitive APY on deposits, early access to paychecks, and no hidden fees.

As a result of today’s deal, Avant will be able to offer its 1.5 million customers access to Level’s digital banking services to augment its existing personal loan and credit card products. The additional banking products will also offer Avant access to more customer data which, in the end, will help in its underwriting process.

Avant CEO James Paris describes the move as “an important element” of the company’s strategy that involves providing underbanked consumers with financial products. “Expanding our product portfolio allows us to serve even more people, offering every consumer access to innovative and rewards-based products to simplify and improve their financial journey,” he added. “We’re looking forward to building on this acquisition and continuing to bring new products to our growing customer base.”

Current Level customers will still be able to make purchases, earn rewards, receive direct deposits to their account, and earn interest. While new customers cannot sign up for a Level account, they are able to join the wait list for Avant’s newly-branded banking product.

Avant was founded in 2012 and has since connected customers with more than $7.5 billion in loans and 400,000 credit cards. The company has raised more than $600 million in equity from investors including JP Morgan Chase and Hyde Park Venture Partners.

Three Ways Collaborative Innovation Benefits the Payments Industry

Three Ways Collaborative Innovation Benefits the Payments Industry

How does a technology company with a near-50 year pedigree adapt and grow in a world of rapid technological change? How does a company like this meet the challenge of embracing new opportunities while remaining true to its core competencies and values?

“Our core mission has not changed,” Nick Kerigan, Head of Innovation Execution at SWIFT explained in an interview for Finovate TV. “But we are moving from a world of point-to-point messaging to end-to-end transaction orchestration.”

Watch the rest of the conversation to find out how you can collaborate to Innovate with SWIFT.

On the ways SWIFT’s new strategy benefits the payments industry

In payments, we believe we can unlock huge opportunities that help our community strengthen their many existing market segments like core banking, B2B, and cross-border payments. We also think we can open up bold new opportunities for the future around SME and consumer segments. What we’re essentially trying to do is to create instant and frictionless, account-to-account transactions anywhere in the world. The vision is to make international payments as simple and easy as domestic payments.

Obviously that’s a big goal and it won’t be accomplished overnight. But we do think, particularly with our transaction management platform, that it’s fully achievable.

On the key areas of focus in SWIFT’s new innovation agenda

Innovation is not new to SWIFT; we were created to solve a big industry challenge 40 years ago, so that’s at our heart … A few things are high on our mind: one is cloud and simplifying the journey to cloud. All large financial institutions – and smaller ones as well – have important programs around bringing their services into the cloud. Everyone knows the benefits of doing that – and they also know that can be quite a challenging task.

What we’re doing is aiming to ease that journey for our customers. We’ve launched new cloud-based products and we are also making our existing products cloud-ready so when our customers are ready to migrate and move, we are ready for them.

On the collaborative innovation and the importance of partnership

Organizations in the financial community often find it challenging to balance the imperative of innovation with everything else they have to do on their agenda, which are often driven by forces such as regulations and others, that means that they are “must do.” What we say with collaborative innovation is that one way of unlocking that challenge is to work much more together as a community so the burden isn’t on any one bank or institution, but the burden is more shared.

SWIFT is well-placed to help the industry collaborate because we are a neutral, member-owned organization that sits in the middle of this great financial community. We think that by enhancing collaborative innovation and working together we can maybe unlock some of these problems that individually we struggle to solve.

For more from our Finovate speakers, check out our Finovate TV YouTube playlist.

SoFi Revamps Auto Loan Investing with MotoRefi Partnership

SoFi Revamps Auto Loan Investing with MotoRefi Partnership

Digital financial solutions provider SoFi is getting into the vehicle loan refinance game. The online lender formed a partnership with MotoRefi to offer users yet another reason to use its services.

Founded in 2016, MotoRefi connects users with lenders and manages the back-end documentation process with each state’s motor vehicle department.

According to SoFi Executive Vice President Jennifer Nuckles, the addition of an auto loan refinancing tool was a logical one since many of the company’s users carry large balances on their auto loans.

Additionally, the nation is an increasingly fertile ground for a car loan refinancing tool. In the past decade, the number of vehicle loans has grown by 41%. Today, auto loans account for 9% of all household debt, with 114 million Americans carrying a total of $1.37 trillion in auto loans.

Through today’s partnership, MotoRefi will have access to SoFi’s two million customers via an integration on SoFi’s website. MotoRefi is banking on this increase in exposure; the company expects to process $1 billion in loans this year after handling $250 million last year.

Overall, the addition of the new service is another step toward making SoFi into a more “bank-like” environment. The California-based company, which originated in student loan refinancing, has since expanded to offer personal loans, home loans, investing tools, a checking account, rewards, budgeting tools, and more.

Launched last month, SoFi’s latest tool offers investors early access to IPOs. Users with at least $3,000 in their account can purchase shares of companies as they go public. This type of access to IPOs, which is generally not available to individual retail investors, will help SoFi reach the new generation of traders that have entered the stock market since the pandemic hit last year.

Fintech connoisseurs may notice the irony in SoFi’s new IPO investment tool. The company itself recently eschewed a formal public listing for a SPAC merger with Social Capital Hedosophia Holdings.


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Rho Technologies Brings its BaaS Solution to Sterling National Bank

Rho Technologies Brings its BaaS Solution to Sterling National Bank

New York City-based Rho Technologies has inked a partnership with Sterling National Bank, the principal subsidiary of Sterling Bancorp that specializes in serving small-to-medium sized businesses as well as consumers. Sterling will leverage Rho’s digital Banking-as-a-Service platform, Rho Business Banking, to support its customer growth and expansion objectives.

Sterling National Bank’s Matthew Smith, Executive Managing Director for Direct Banking and BaaS, called the partnership “an important step” in expanding its portfolio of BaaS arrangements, as well as speeding up the bank’s “organization-wide digital transformation to offer customer-centric, digitally-enabled solutions to the marketplace.”

The Rho Business Banking platform combines collaborative finance software and commercial-grade banking in a single solution. Relying on a unified platform, team members can take advantage of integrated, intelligent solutions for A/P, budgeting, data automation, and accounting integrations. Rho offers no-fee global payments, up to 1.5% cash back on all spending, and access to its team of “world-class bankers.”

“Rho is thrilled to collaborate with Sterling National Bank,” Rho Technologies CEO and co-founder Everett Cook said. “We spent a lot of time seeking a partner that had the capabilities and scale that our current and future customers need. We look forward to working with Sterling in supporting our future product and service offerings.

With more than $30 billion in assets, Sterling National Bank made fintech headlines earlier this year when it announced a partnership with Google Pay to offer digital checking and savings accounts through the Google Pay platform. Headquartered in New York, Sterling National Bank also teamed up with Goalsetter during African American History Month to provide seed funding for a program to support financial inclusion and literacy among students in underserved communities.

“This critical initiative reinforces Sterling’s commitment to financial education and empowering young people to reach financial independence,” Smith said. “Black History Month provides an important opportunity to celebrate and promote Black achievement. We are excited to play a part in supporting these inspiring young men to become the next leaders, savers, and investors.”

Rho Technologies began the year with news of a $15 million investment courtesy of a Series A round led by M13 Ventures. The funding, which took the company’s total capital to $19.9 million according to Crunchbase, enabled Rho to launch an integrated accounts payable platform as part of an expansion of its flagship Business Banking offering.

“We’ve developed the modern commercial banking platform built around the way companies operate today: distributed, team-oriented, transparent, and built for scale,” Cook said when the funding was announced in January. “AP is the next step on our mission to help teams work better together with money.”


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Fintech Innovators Get Ready for FinovateSpring Debut

Fintech Innovators Get Ready for FinovateSpring Debut

Spring is the time for newness and novelty. And with FinovateSpring a little over a month away, there’s no better time than the present to introduce a “Who’s New” of innovative fintech companies making their Finovate debut at our all-digital spring conference, May 10 through 13.

BaseCap Analytics: Specializes in analyzing data, diagnosing, and solving problems for banks, insurance companies, and other highly-regulated industries. Headquartered in New York. LinkedIn. @BaseCap_Inc

Coconut Software: Provides cloud-based, customer engagement software solutions that empower community banks and credit unions. Headquartered in Saskatoon, Saskatchewan, Canada. LinkedIn. @coconutsoftware

DigiShares: Offers a white-label platform for the issuance, management, and trading of tokenized securities. Headquartered in North Jutland, Denmark. LinkedIn. @digisharesdk

FINBOA: Offers back office automation solutions to help community and regional banks meet regulatory obligations. Headquartered in Houston, Texas. LinkedIn. @finboatweets

FinHealthCheck: Offers a measurement, benchmarking, and insights platform to help employers better understand the financial health of customers and employees. Headquartered in Chicago, Illinois.

Foxit Software: Provides fast, affordable, and secure PDF solutions for businesses and consumers to enable them to “do more with documents.” Headquartered in Fremont, California. LinkedIn. @foxitsoftware

Loan Pro: Offers a SaaS loan servicing solution that leverages automation and data visibility to empower tech-forward lenders. Headquartered in Farmington, Utah. LinkedIn.

Secure: Offers an emergency savings solution to help employees automatically improve financial wellness and feel more financially secure. Headquartered in Kirkland, Washington. LinkedIn. @SecureSave1

Signal Intent: Builds next-generation financial calculators for banks, credit unions, mortgage companies, and insurance companies. Headquartered in New York. LinkedIn.

Urjanet: Leverages its cloud-based, data collection platform to make the world’s utility data easily accessible and usable. Headquartered in Atlanta, Georgia. LinkedIn. @Urjanet

Check out the growing roster of companies that are already on-board for FinovateSpring next month. And be sure to visit our registration page to pick up your ticket and save your spot for our annual spring fintech event!

Looking for an opportunity to demo your latest fintech innovation? Reach out to our Events Team today and find out how to be a part of FinovateSpring in May.


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The Evolving Role of the CDO at Financial Organizations

The Evolving Role of the CDO at Financial Organizations

This is a sponsored post from InterSystems


Over the past several years, the role of the chief data officer (CDO) has evolved from being security-and compliance-oriented to being strategic and innovative. Not only are chief data executives of all stripes taking on a more progressive role in key business decisions, but the position itself is becoming an essential staple of forward-thinking organizations, especially at financial services organizations. According to a 2019 study conducted by Forrester, 58% of organizations had appointed a chief data officer and another 26% were planning to do so.

Moving forward, data executives must focus not only on securing data and ensuring their organizations meet rigorous data regulations but also on new strategies for leveraging Big Data and their organizations’ proprietary data to generate business value. This will require new strategies in data management, as well as the deployment of new data solutions like data fabrics, automated governance, machine learning, and blockchain.

Primarily, it will require data leaders to focus more on offensive data management—a data strategy that supports key business objectives, such as boosting profitability and improving customer outcomes—in addition to defensive data management, which refers to the strategy of securing data and maintaining compliance with regulations.

Read Intersystems’ latest report on The Evolving Role of the CDO at financial organization, which provides benchmarking information about how CDOs are fairing in a rapidly shifting regulatory landscape and exploration of CDOs’ and other data professionals’ opinions on enabling an offensive approach to data management and their best practices.

Read now >>


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More Than $3.3 Billion Raised by 26 Alums in Q1 of 2021

More Than $3.3 Billion Raised by 26 Alums in Q1 of 2021

When it comes to the competition for investment dollars, Finovate alums are off to their best start to date. Having raised more than $3.3 billion in funding in the first three months of 2021, companies that have demoed their innovations on the Finovate stage are attracting VC capital at the fastest rate in years.

In fact, Finovate alums in Q1 of 2021 raised more money than in the previous four first quarters combined.

Previous quarterly comparisons

  • 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

This year’s powerful first quarter came courtesy of nearly a dozen, nine-plus figure investments. Global breadth was wide. Among the countries represented by the quarter’s top ten equity investments are Sweden, Brazil, Germany, and the U.K. And within the U.S., innovators from familiar locations in Silicon Valley share our top ten list with fintechs from Boston, New York, and Lehi, Utah.

Top Equity Investments

  • Klarna: $1 billion
  • Nubank: $400 million
  • Blend: $300 million
  • MX: $300 million
  • Feedzai: $200 million
  • Jumio: $150 million
  • OutSystems: $150 million
  • Mambu: $135 million
  • Stash: $125 million
  • Blockchain.com: $120 million

The top ten equity investments of the quarter represented $2.88 billion or 87% of the quarterly total. As large as these investments were, they represented a smaller share of the quarter’s overall total than we’ve seen in the past few years. In 2020, the top ten investments made up more than 99% of the Q1 total. In 2019, the top ten represented more than 91% of the total raised by Finovate alums for the first quarter.

Here is our detailed alum funding report for Q1 2021.

January: More than $1.3 billion raised by 10 alums

February: More than $533 million raised by eight alums

March: More than $1.5 billion raised by eight alums


If you are a Finovate alum that raised money in the first quarter of 2021 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.

Alkami Announces IPO

Alkami Announces IPO

We reported earlier this year that cloud-based digital banking solutions provider Alkami was heading toward an IPO. Today, the Texas-based company has confirmed rumors.

Alkami will to list on the NASDAQ under the ticker symbol ALKT, launching 6,000,000 shares of common stock. Shares will be priced between $22 and $25. The company believes it will to raise up to $250 million via its IPO, which would value Alkami at $3 billion.

“We currently expect to use the net proceeds from this offering, together with our existing cash and cash equivalents, to finance our growth, develop new or enhanced solutions, and fund capital expenditures,” the company said in a statement.

Alkami offers solutions for both retail and business banking. The subscription-based offerings include tools for money transfer capabilities, financial wellness, customer service, security, and more. And because the company is built on an open platform, banks can leverage third party solutions to customize their offerings even further.

According to Alkami’s S-1 document filed with the SEC, the company saw revenues of $112 million last year, representing a 150% increase over 2019 revenues. Alkami has received more than $385 million from nine investors, including Franklin Templeton Investments, Fidelity Management and Research Company, and D1 Capital partners.

Founded in 2009 as iThryv, Alkami counts 151 bank clients representing 9.7 million end users. Mike Hansen is CEO.


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Digital Onboarding Inks Partnership with Small Business Resources

Digital Onboarding Inks Partnership with Small Business Resources

Digital Onboarding, a company that offers solutions to enable banks and credit unions to better engage their customers, has announced a partnership with Small Business Resources (SBR). The company, which helps banks acquire small business deposits, and provides treasury management and lending services, will use Digital Onboarding’s platform to help its client banks boost engagement and increase revenue.

Specifically, the collaboration will enable Small Business Resources to offer a new branded solution, SBR FullWallet, to better serve the 42% of SMEs that, according to research from Accenture, believe that alternative providers can do a better job than traditional banks when it comes to serving small and medium-sized businesses.

“For banks, small businesses are significantly more profitable than consumers, but a large percentage of small business customers are unengaged and at risk,” Digital Onboarding CEO Ted Brown explained. “I am thrilled to partner with Small Business Resources to help regional and community banks deepen their business relationships and better compete in today’s marketplace.”

The challenge of new rivals was top of mind for Small Business Resources CEO Robert Boorin, as well. “Banks are facing stiff competition from fintechs and Neobank providers that are investing heavily to attract small and medium-sized business banking customers,” Boorin said. “Business banking relationship managers struggle to build deep relationships with all of the customers in their portfolios. SBR FullWallet will enable our Partner Banks to deliver timely and highly personalized communications that make it easier for small businesses to adopt additional products and digital banking services.”

Launched in 1998, SBR was founded to bring small business marketing solutions to institutions in financial services, insurance, and other strategic industries. With services ranging from customer acquisition and engagement to cross-selling and onboarding, SBR blends traditional and digital media services to ensure that financial institutions have multi-channel access to SMEs.

Digital Onboarding most recently demonstrated its technology at FinovateFall in 2018. At the event, the company showed how its platform gives banks and credit unions the email and marketing automation resources to create personalized digital journeys that educate and engage their customers. More recently, Digital Onboarding has announced partnerships with a sizable number of regional banks and credit unions including American Bank of Commerce, New York University FCU, Pacific Service Credit Union, Spirit FCU, and Southwest Financial FCU – all in the first quarter of 2021.

Digital Onboarding has also been a ready partner to its fellow fintechs – including some fellow Finovate alums. In March, Digital Onboarding partnered with both Moven to support user adoption of a turnkey digital bank-in-a-box, as well as with StrategyCorps to help financial institutions “maximize the profitability of checking account relationships.”

Headquartered in Boston, Massachusetts, Digital Onboarding was founded in 2015. The company has raised more than four million dollars in funding from investors including FINTOP Capital, Detroit Venture Partners, and Jack Henry & Associates. Digital Onboarding’s most recent financing came in August of last year; the amount of the investment was not disclosed.


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Fintech Innovation and Open Banking in the Nordics

Fintech Innovation and Open Banking in the Nordics

This week we learned that Norway-based Finovate alum Signicat has teamed up with a German software company Cryptshare to market a new B2B identity verification solution. The technology combines email encryption and secure file transfer with trusted sender and recipient identities to make business communications safer and more accountable.

In other fintech news from the Nordics, Santander Consumer Bank in Norway went live with a new PFM app that leverages open banking solutions from Nordic API Gateway. Founded in 2017 and headquartered in Copenhagen, Denmark, Nordic API Gateway made its Finovate debut last month at our all-digital fintech conference, FinovateEurope.

At the event, co-founder and CTO Gudmundur Hreidarsson demonstrated how the company’s platform simplified open banking payments and access to financial data, offering powerful account-to-account payment services through a single API. More than 40 financial institutions in Europe – including Lunar, Danske Bank, OP Financial Group, and Checkout Finland – rely on Nordic API Gateway’s open banking services.

“Current payment rails such as cards are very expensive for businesses and and increasingly inconvenient for consumers,” Hreidarsson said during his presentation last month. “Open banking changes that. It enables payments with low fixed fees per transaction rather than the high percentage fees of cards which can mean very significant cost savings for businesses – and is very convenient for consumers.”

“But getting into open banking and using open banking is hard,” he added. “It’s really hard. The APIs of the banks are slow to mature and there is still quite some way to go. Businesses are just starting to realize what kind of use cases can be solved with open banking. And consumers are only now discovering the convenience of paying with their accounts. That’s why we built Aiia, to offer an open banking platform that simply works.”


Companies from the Nordics (Denmark, Norway, Finland, Sweden, Iceland, and Greenland) have been well represented at FinovateEurope of late. This year alone featured – in addition to Nordic API Gateway – two companies from Sweden: Stockholm’s Dreams and Gothenburg’s Econans. Our most recent in-person FinovateEurope conference – held in Berlin, Germany – featured three companies from the region, as well: ReceiptHero and NordCheck of Finland, and Subaio of Denmark. Other Nordic fintechs that have demonstrated their technologies live on the FinovateEurope stage over the years include BehavioSec, Tink, and Klarna (Sweden); Encap Security, EVRY, Monobank, and Spiff (Norway); Meniga and Trustev (Iceland/U.K. and Iceland); and Mistral Mobile (Finland).

“It certainly seems that Schumpeterian destruction, where creating new markets is preceded by old ones being challenged or even destroyed, applies in the Nordics,” the team of Frida Jonsdottir, Olli Toivonen, Visa Jaatinen, Arttu Utti, and Richard Lindqvist wrote in the introduction to their FinTech in the Nordics: A Deloitte Review. “The Nordic FinTech market is rapidly growing and diversifying, with more companies and new technologies being created. This is happening regardless of the fact that the incumbent financial institutions are challenged by the lagging economic growth rates and ever changing regulatory burden, both of which afflict those who are looking to enter the market.”

Read the rest of the Deloitte report on fintech in the Nordics. For more about fintech in the region, check out:


Here is our look at fintech innovation around the world.

Central and Eastern Europe

Middle East and Northern Africa

Central and Southern Asia

Latin America and the Caribbean

Asia-Pacific

Sub-Saharan Africa


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Next Insurance Raises $250 Million for Small Business Insurance

Next Insurance Raises $250 Million for Small Business Insurance

Online insurance company for the self-employed Next Insurance just closed a $250 million investment round. The funding marks the company’s second $250 million investment received in the past seven months.

Investors include FinTLV Ventures and Battery Ventures, which led the round, with participation from CapitalG, Group 11, Zeev Ventures, Founders Circle, and G Squared.

With its total funding now at $881 million, Next Insurance’s valuation now sits at $4 billion. This figure is double the $2 billion valuation assigned to the company last September.

The valuation boost is well-deserved. In the past six months, Next Insurance announced two acquisitions, added new strategic partners, and doubled its gross written premium (for those not in the insurance industry, gross written premium is essentially the total amount customers pay for insurance coverage).

Since it was founded in 2014, Next Insurance has boosted its client base to more than 200,000. The company leverages machine learning and a purely digital approach to drive costs down by up to 30% in comparison to traditional policies.

“This latest round of financing is a validation of our vision which is to make it dramatically easier for small business owners to get the insurance coverage they need by removing friction from the customer experience,” said Next Insurance Co-founder and CEO Guy Goldstein. “It starts with developing a comprehensive digital product portfolio under one roof, continues with leveraging technology that improves the customer experience, and ends with a network of integrated partnerships that bring policy purchasing to the customer within the systems they already use.”


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FinovateFocus: From Payments and Remittances to Data Technology

FinovateFocus: From Payments and Remittances to Data Technology

This week featured the second of our new, all-digital FinovateFocus conferences. With a theme on payments, remittance, and foreign exchange within the fintech industry, our day-long offering of rapid-fire presentations and live roundtable Q&A sessions provided a fast-paced, no-fluff opportunity for financial services professionals to get up to speed on the latest in fintech – and to make the kind of high-quality connections that will lead to partnerships and collaborations in the weeks and months to come.

Scheduled for the fourth Thursday of every month, FinovateFocus enables like-minded professionals to discuss top issues within fintech, advance business objectives, and grow their networks.

To whet your appetite for our upcoming FinovateFocus in April, which will focus on Data Technology, here’s a look at the speakers and topics from our just-concluded FinovateFocus in March. In the meanwhile, to learn more about our upcoming April FinovateFocus event on April 22nd, visit our FinovateFocus hub today.

  • Millicent Tracey, Digital Payments Advisor, NACHA, on the buy now/pay later phenomenon in e-commerce. LinkedIn
  • Fergal de Clar, Marketing Manager, Fabrick International, on managing subscriptions from your banking app as a value-add for customers and an opportunity for customer engagement. LinkedIn.
  • Josh Stephens, VP of Product, Current, on the rising importance of instant payments. LinkedIn.
  • Matt King, Head of Payments Platform, Brex, on the build it or buy it innovation question with regard to financial partnerships at a time of hypergrowth. LinkedIn.
  • Timothy Chiodo, Director & Lead Analyst: Payments, Processors and Fintech, Credit Suisse, with a selection of key themes and topics on the minds of payments, processors, and fintech investors. LinkedIn.
  • Colin Wynd, Head of Real Time Payments Technology, The Clearing House, on the impact of faster and real-time payments. LinkedIn.
  • Mark Ruddock, CEO, BFS Capital, on how a new generation of small business owners is demanding change. LinkedIn.
  • Christopher Simco, VP, Emerging Payments Product Management, TD Bank, on how payments and innovation tempo are shaping consumer trust in banking. LinkedIn.
  • Gilles Ubaghs, Senior Analyst, Aite Group, on innovation in the payments industry, the familiar versus the new. LinkedIn.

To learn more about our upcoming April FinovateFocus event on April 22nd, visit our FinovateFocus hub today.


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