Lending in the New Normal: The Digitalization Challenge

Lending in the New Normal: The Digitalization Challenge

The following is a sponsored blog post by Chris Papathanassi, Global Solution Lead, Lending with Finastra. Papathanassi discusses the two challenges facing lenders: data quality and ensuring a true “golden source” and leveraging real value through data connections. Find out more in the full report >>

Today, digital is the only way to do business. But even though everything they do can be expressed in ones and zeros, most financial service organizations simply aren’t set up to be truly digital. In the context of the current disrupted, volatile and remote-working global economy, doing digital brilliantly is now a matter of survival and urgency for many financial firms – no longer simply a ‘nice to have’. 

Digital transformation is difficult for even the simplest business models, and in lending in particular, there is a real challenge. When it can take up to three months to get cash out of the door, it’s hard to see how any bank can keep up with the digital shift. There is a continued dependency in lending on paper documentation and face-to-face contact.

Despite this, the challenges of digitalization are more than balanced out by the potential benefits. You’re likely aware of a few of these already: 

  • Increased efficiency – removing repetitive, non-value-added work and moving towards real-time processing 
  • Personalization – delivering relevant customer service even in a socially-distanced context 
  • Improved credit management – providing integrated, rules-based systems for greater decision speed and transparency 
  • Proactive risk management – using APIs and platforms to “join up” the risk and sales processes
  • Self-service for corporates – providing a digital channel that empowers corporate customers 
  • Unlocking the value of data – bringing data together from disparate sources so its true value as a commodity can be leveraged

So, what needs to happen for lending to get there? 

One of the key issues is data quality and the “golden source”.  The bespoke nature of lending makes it hard to maintain data quality and consistency. Lenders have their own individual nuances and conventions. And corporate borrowers that have lending relationships with many different organizations will download and manipulate data so it’s in a format they can work with.

Can you trust the data?

As one major bank asked us: “How can we ensure what the source of truth is across different applications?”

What’s more, as data moves through different systems in a digitalized and connected world, it changes too.  

This points to the second challenge, which is that digitalized lending data is only valuable when it can be connected to the other pieces of the puzzle, to provide the big picture lenders and borrowers need. Right now, firms are still downloading data into Excel, manipulating it, and re-sending it.

Digitalization plus API capabilities, however, makes it possible for stakeholders to see the same pieces of data in the same state. It’s this connectivity that is key to realizing the full benefits of digitalization and addressing the “source of truth” issue. 

Digitalization also opens data to new technologies such as AI, machine learning, and robotic process automation, which can create new efficiencies and value for banks and customers. And for processes such as syndicated lending that have multiple players, it can be combined with cloud technology to enable more collaboration and better access to a single source of truth.

APIs in the cloud can make innovation more accessible to banks, overcoming the challenges of integrating in-house and external products. In essence, on platforms, banks have access to pre-integrated, interoperable solutions and better access to the broader financial services ecosystem, where they can explore innovations and consume them at speed. 

This potentially changes the shape of the lending industry, opening up interesting questions. What do banks want to be? Leaders in the lending business or providers of specialist products? With digitalization both options are possible, creating an opportunity for lenders to add value and build their lending businesses – or to disintermediate healthily. 

Interested in learning more? Download Finastra’s new report, Lending in the New Normal >>

All the Fintech Ladies: Deutsche Bank Announces Competition for Female Founders

All the Fintech Ladies: Deutsche Bank Announces Competition for Female Founders

For the second year in a row, Deutsche Bank is teaming up with Google, Atos, TechQuartier to help make a difference for women in fintech. The bank announced the launch of its second Female FinTech Competition this week, featuring a spot in Atos’ Fintech Programme as the competition’s top prize.

“The Female FinTech competition is not only a wonderful opportunity to showcase technology talent, it is also a way for Deutsche Bank to engage and support a community of female founders and help foster innovation,” Global Head of Deutsche Bank’s Strategy & Innovation Network Gil Perez explained.

Fintech companies with a female founder – or with women in their top management – are encouraged to apply. The first prize – participation in the Atos FinTech Program – also features access to the FinHub, a fast-track onboarding program that connects companies with Atos’ network of financial services organization partners – and Atos Financial Services Sandbox – which makes it easy for fintech startups to combine their expertise to develop and test new ideas and solutions.

In addition to the first prize, other program winners will have the opportunity to access resources from both Deutsche Bank and Google Innovation, including the chance to work in Deutsche Bank’s Innovation Lab with the team’s experts and coaches.

The Female FinTech Competition is also in the market for coaches. Women interested in coaching program entrants are also encouraged to sign up and indicate their area of knowledge and expertise.

The deadline for applications is September 23, with applicants submitting their business cases by September 30. A short list of six finalists will be announced on October 15, with the winners announced on October 29.

“We still have a gender gap in the finance industry,” said Sima Ohadi, Chief Behavioral Officer at Odonatech and the program’s inaugural winner last year. “Yet the future looks bright in part thanks to initiatives like the Atos Female Fintech Competition. I participated as a co-founder of Odonatech in the Atos Fintech Competition last year, which helped me get to know some very ambitious and innovative women in this field.”


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Behalf Taps Former Kabbage Executive as New CEO

Behalf Taps Former Kabbage Executive as New CEO

Small business financing and payments company Behalf has a new man at the top. The company announced that Rob Rosenblatt, who has been serving as Behalf president for the past six months, will now take over the role of Chief Executive Officer of the eight-year old firm.

“Consumers have enjoyed a broad range of financing solutions offered by retailers and e-tailers for many years,” Rosenblatt said in a statement. “Now is the time for every major business seller to make net terms and extended financing solutions available to their customers in order to facilitate commerce. Behalf is ideally suited to help accelerate the adoption of these solutions.”

Rosenblatt will replace company co-founder Benji Feinberg, who had served as the company’s CEO since its founding in 2012. Rosenblatt’s appointment will mean that Behalf’s customer-facing functions will be based in New York City, with the firm’s R&D capabilities continuing to be housed in Behalf’s offices in Ra’anana, Israel.

Before coming to Behalf in February of this year, Rosenblatt was Head of Lending and GM of Lending Operations for Kabbage. He was also previously Chief Customer and Chief Marketing Officer for Flywire. Rosenblatt is currently on the board of directors of prepaid card provider PEX Card.

Behalf helps small businesses manage cash flow and expenses by enabling them to quickly and affordably finance almost any business purchase. The company uses its own proprietary credit scoring methodology to guide its purchase financing, and pays vendors directly on behalf (hence the name) of small businesses while collecting repayments on behalf of the vendor. With Behalf, B2B sellers are able to get paid upfront, without needing to worry about credit risk, as well as enjoy larger average order sizes. Buyers benefit from ready access to financing, including avoidance of the financing fee if repayment is made during the grace period.

“There is real demand for Behalf’s financing solutions in B2B commerce,” Behalf Executive Chairman Michael Heller said. “Now is the ideal time for Rob and the entire Behalf team to seize the opportunity and focus on growing the company.” Heller is also an Operating Partner at Oak FT/HC and MissionOG.

Behalf has raised $310 million in funding from investors including Viola Growth, Spark Capital, MissionOG, Visa, and Sequoia Capital Israel.


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Eight Trends at This Year’s FinovateFall Event

Eight Trends at This Year’s FinovateFall Event

The health crisis and economic environment have shaken up the fintech industry. Some of the trends we saw at last year’s event have been placed on the back burner because firms are not only cutting costs but also are enhancing their focus on serving customers in a new way.

So while this year’s FinovateFall trends assessment isn’t a completely new set of ideas, it certainly doesn’t mirror our forecast from the beginning of the year. As you may have guessed, every trend at this year’s conference will be filtered through a COVID-19 lens.

Here is what you can expect to see:

Digital

By the end of 2020, every product and service must be accessible online. A solid digital customer experience has become table stakes. Because of this, at this year’s show, you can expect to hear the term “digital transformation” in every session.

AI

There’s something almost comforting about seeing AI as a top trend once again this year. While much of the world, the economy, and our working environments have changed, AI still brings technological advancements to every sub-sector in fintech. And since most services must take place 100% digitally, companies need every improvement possible to maintain superior customer service.

Remote

Again, since most of our interactions must take place remotely, we have to re-think and re-invent many of the ways we used to do business. Everything from internal communication and collaboration to customer authentication to payments must now incorporate remote-friendly practices.

Fighting fast-tracked financial crime

While security technology was already a hot topic in the pre-COVID environment, it is even more so now. Now that many employees are working from home, hackers have taken advantage of wifi networks with weak security standards. Aggravating the situation, hackers have implemented new phishing attacks that prey on human emotion to gather sensitive information.

Customer experience

Like AI, this is another trend that the industry had on its radar in 2019. It has now, however, been heightened by the onset of the public health crisis. Now that consumers of all ages are accessing products and services remotely, financial services companies have had to not only fast-track digital transformation efforts but also create new initiatives to serve customers that are not digital natives.

Banking-as-a-service

The “as-a-service” trend has been around essentially since the dawn of fintech. However, the offerings are starting to mature now with the onset of open banking; the increased flexibility; and mutual benefits across banks, third parties, and end customers.

Challenger banks

Because challenger banks were born in the digital realm, they were practically made to serve customers during a pandemic. In addition to their digital expertise, many of them offer products and services for consumers facing economic uncertainty. And investors have taken notice, challenger banks have been some of the top recipients of VC funds in 2020.

Communication

Because most people are dealing with the realities of a remote working environment and living situations, communication is extra challenging right now. Along with technologies that enable face-to-face conversations via video, many financial services companies are taking a second look at chatbots, their phone-based customer service, and other channels. In the end, we will not see a single communication channel come out on top as the winning one. Instead, we’ll see multiple winners as different consumer groups find the channel that suits their preferences.


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Kasasa’s New Partnership Fuels New Mortgage Lending Product

Kasasa’s New Partnership Fuels New Mortgage Lending Product

Marketing services company Kasasa is partnering with BSI Financial Services to provide a new mortgage loan product that community banks and credit unions can offer their clients.

The new offering, Kasasa Mortgage, helps small financial institutions compete with large banks by offering a unique loan product. What’s distinctive about Kasasa Mortgage is that it uses the Take-Back concept the company piloted in 2018. Every month the borrower has the option to overpay on their mortgage payment. If, at any time in the future, they need to access cash quickly, they have the option to take back any portion of the overpayment.

Making the new launch possible, BSI Financial will conduct the loan servicing on behalf of community banks and credit unions using the new product, Kasasa Mortgage.

“Through Kasasa’s partnership with BSI Financial, we are enabling a greater number of local financial institutions to help their borrowers better understand their mortgage loan and get out of debt quicker,” said Kasasa’s EVP of Product Management, Chris Cohen. “By offering the most consumer-friendly loan available today, community banks and credit unions can achieve higher yields without the additional risk and maintain their fair share of the market.”

Earlier this month Kasasa improved on its Take Back loan by integrating Carleton’s insurance and debt protection calculations to help tailor loan limits.


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New York’s Finest: Catching Up with FinovateFall’s Best of Show

New York’s Finest: Catching Up with FinovateFall’s Best of Show

What have the companies that won Best of Show awards at last year’s FinovateFall conference been up to in the months since our New York show? With our autumn event less than a month away, we thought it would be a great time to check in on the nine companies that took home top honors this time last year.


BlytzPayIntegrated its digital payments technology with Dealer Management Systems (DMS) leader ABCoA Deal Pack. Announced strategic partnership with AFS Dealers.

CinchyJoined the 2020 MassChallenge FinTech Program in December 2019 along with five fellow Finovate alums. The program noted that 70% of the participants in its previous cohort launched a pilot or proof of concept within a year. Earned a $500,000 cash prize as one of the winners of the 2019 VentureClash competition. Raised $10 million in funding in May.

College Aid ProPartnered with Horsesmouth, a company that provides educational and marketing solutions for financial advisors and their clients. Announced collaboration with the American Institute of Certified College Financial Consultants. Teamed up with online student loan refinancing marketplace Credible.

ebankITForged North American partnership with fellow Finovate alum Enterprise Engineering this spring. Announced updates to its multichannel banking platform.

GliaWon Best of Show at FinovateEurope for a second year in a row. Integrated its technology with fellow Finovate alum Alkami’s Online Banking Platform. Inked partnerships with 20 credit unions across the U.S.

MXTopped 50,000 direct-to-bank API agreements to major financial institutions and fintechs. Launched data connectivity API, Path by MX. Named one of Inc. Magazine’s Best Workplaces 2020.

owl.coNamed one of Canada’s Most Innovative Tech Companies by the Canadian Innovation Exchange. Delivered $1 million in revenue within six months of launching.

Pinkaloo TechnologiesRaised $1.25 million in funding. Joined Goldman Sachs-owned Ayco Marketplace for financial counseling and wellness services. Partnered with Eastern Bank to power its Give for Good charitable giving program.

Zogo FinanceTeamed up with fellow Finovate alum Bankjoy. Announced partnerships with 11 community banks and credit unions across 12 states. Surpassed 1,000,000 financial literacy modules completed.


FinovateFall Digital 2020 kicks off Monday, September 14 and continues through Friday, September 18 with hours of live and on-demand content. Visit our registration page today and join us for Finovate’s biggest, digital-first event to date.


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Socure Secures Funding from Citi and Wells Fargo

Socure Secures Funding from Citi and Wells Fargo

In a round led by Sorenson Ventures, identity verification innovator Socure has locked in $35 million in new funding. The investment, which takes the company’s total capital to $96 million, featured the participation of three new funders: Citi Ventures, Wells Fargo Strategic Capital, and MVB Financial Corp, as well as existing investors Commerce Ventures, Scale Venture Partners, and Flint Capital. Socure said the additional funding will support the firm’s growth objectives and enable the company to add to its platform’s machine learning capabilities.

“We are grateful to have had significant investor interest despite the current economic environment, and are proud to have taken less money than was on the table,” Socure CEO Tom Thimot said. “As we continue to build on our position as the leader in Day Zero identity, we are prioritizing investment in new verticals, talent, products, and capabilities.”

The investment reflects a growing importance on identity verification at a time when more and more individuals and businesses are relying on digital channels. Companies with identity verification solutions that can quickly – i.e., in real-time – establish that individuals are who they say they are and do so with as few mistakes as possible will become increasingly valuable partners for businesses looking to maximize engagement and commerce via digital channels.

Socure’s funding news comes just a few months after the company unveiled its latest digital identity verification solution, Intelligent KYC. The company’s technology accelerates customer acquisition and boosts auto-approval rates by leveraging advanced graph analysis and machine learning to verify identity in real-time. With partners ranging from banks and lenders to telecommunications firms and insurance companies, Socure enables its clients to achieve 85% fraud capture rates, a 90% increase in auto enrollments, and up to 10x reduction in false positives.

Most recently demonstrating its technology at FinovateFall in 2017, Socure was founded five years earlier by Sunil Madhu and Johnny Ayers (SVP). Named one of Forbes’ Top 25 Machine Learning Startups to Watch, and recognized by Gartner as a Cool Vendor in AI for Banking and Investment Services this spring, the company added a document verification module, DocV, to its Socure ID+ platform earlier this month.

Socure is headquartered in New York, and maintains offices in San Diego, San Jose, and Chennai, India.


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Digital Onboarding Raises Series A

Digital Onboarding Raises Series A

Customer engagement specialist Digital Onboarding announced its Series A round today. The amount of funding was undisclosed and adds to the company’s existing $4.3 million in seed funds. Contributors include Detroit Venture Partners and other institutional and individual investors.

Along with today’s investment, FINTOP Capital Partner John Philpott, Jack Henry Senior Managing Director Shawn Ward, and a founding member of S1 Corporation joined the Board of Directors.

The company plans to use the funds, along with the fresh influx of expertise on its board, to begin “accelerating the execution of [its] product roadmap, scaling account management, and expanding sales.”

Digital Onboarding’s SaaS offering helps banks deliver compelling services that keep customers around for the long-term. The company is especially effective in helping motivate accountholders to take action because it aggregates data across banks with similar business objectives.

“Banks have myopically focused on getting new accounts opened to meet aggressive sales targets and are now being forced to contend with the reality that new accounts are worthless if they’re not converted into engaged relationships,” said Digital Onboarding CEO Ted Brown. “The Digital Onboarding platform has been proven to drive the adoption of additional products and services like digital banking, direct deposit, and automatic payments which drive long-term profitability.”

The funding comes at a time of increased demand for digital services of all kinds. Since many non-digital native customers are now needing to conduct much of their banking activities remotely, maintaining connection with them through digital channels is more essential than ever.

Digital Onboarding was founded in 2015 and is partnered with 40+ financial institutions that together represent $160+ billion in assets. The company most recently demoed at FinovateFall 2018. You can catch an all-new round of demos at FinovateFall Digital next month. Stream the event from anywhere on the globe September 14 through September 18.


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The Capital Needs of Small Businesses are Changing: Here’s How Lenders Should Respond

The Capital Needs of Small Businesses are Changing: Here’s How Lenders Should Respond

The following is sponsored content from LendingFront.

With Covid-19 on the minds of businesses and lenders alike, conversations about the capital needs of small businesses have revolved—with obvious justification—around the Paycheck Protection Program (PPP) and other forms of relief provided under the CARES Act.

Yet the capital needs of many small businesses don’t begin and end with the PPP.

Let’s start with a few facts

According to the U.S. Federal Reserve’s 2019 Small Business Credit Survey:

  • 43% of small businesses sought external funding for their businesses in 2018
  • And more than half experienced a funding shortfall.

These funds—when small businesses can obtain them—are often used to purchase inventory, replace equipment, finance expansion, and hire new workers.

These needs will persist long after PPP lending has come to an end, yet even in a strong economy, up to 80% of bank-originated small business loan applications are rejected.

In the post Covid-19 environment, we can expect that percentage to be even higher

That’s because the conventional underwriting criteria for small business loans will no longer work. Traditionally, both bank- and non-bank lenders have relied on four criteria for underwriting small business loans:

  1. Tax/Financial Statements
  2. Credit Scores
  3. Collateral
  4. Owner Wealth

In a normal economy, these criteria are fine, but they’ll do little to show the true state of a business in the post Covid-19 environment. 2019’s tax/financial statements will be all but irrelevant. Credit scores will be damaged as a result of the inability to make payments during a forced closure. Collateral will have questionable value if bankruptcies spike. And owner wealth will have been tapped in an effort to keep many businesses afloat.

Are we headed towards a capital drought?

With traditional underwriting criteria no longer useful, are we headed toward a capital drought? We certainly don’t need to, but the answer largely hinges upon lenders doing two things:

  1. Adopting new criteria that are more appropriate for the post Covid-19 environment
  2. Adopting new product structures that enable the lender to manage risk

New credit criteria include information such as:

  • Real-time Cash Flow
    Cash flow helps you gauge how quickly the business is recovering from Covid-19. Is it in irreversible decline? Is it struggling but stable? Has it gotten back to normal? Insight into real-time cash flow helps lenders make better decisions about who to lend to along with the terms of any offers.
  • Consumer Sentiment
    Customers who vote with their reviews also vote with their wallets. Examine reviews from Google, Yelp, and other sources to answer, Is this a business that customers love? Businesses that are well-regarded by customers stand a much better chance of recovering than those that had problems before the pandemic shut them down.

New product structures also enable lenders to deliver capital efficiently while managing risk

Here’s how:

  • Shorter Terms
    First, lenders should emphasize shorter payback periods in the range of 6-12 months. Shorter terms get the lender paid back faster while enabling the business owner to show that he/she is creditworthy before seeking a larger amount of capital.
  • Daily ACH Payments
    Second, lenders should collect payments from the borrower on a daily—rather than monthly—basis. Monthly payments introduce unnecessary operational risk. Daily payments are smaller, consistent, and more predictable from the standpoint of the business’ cash flow.
  • Tie Payments to Performance
    Lastly, lenders should tie payment terms to current cash flow performance—and with visibility into cash flow, this is very easy to do.

A new economy needs new rules for lending

If the Great Recession taught us anything, it’s that opportunities exist for lenders to increase their assets, gain market share and, of course, to meet the capital needs of their borrowers. In the post Covid-19 environment, lending is only as risky as the information used to make decisions. With better underwriting criteria and more appropriate product structures, the most forward-thinking lenders will position themselves for success and reap the rewards.


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What Would a Biden/Harris Administration Mean for Fintech?

What Would a Biden/Harris Administration Mean for Fintech?

A recent analysis by Brookings looked how technology, platform regulation, and China policy may be impacted by the policies of a future Joe Biden/Kamala Harris administration should President Trump fail to be re-elected. As might be expected, the review pointed to greater regulation – including anti-bias and worker rights advocacy – as one likely outcome if a new administration takes office next year.

Also interesting are the ways that the Brookings analysts – and others – see a Biden/Harris administration as an enabler of technological advancement and innovation, especially in the area of technology infrastructure. This is also one of the ways where a Biden/Harris administration could be most constructive for fintech.

As the Brookings analysts point out, the fact that the Democratic vice presidential nominee is a Senator from California (who represents Silicon Valley) suggests that there might be greater insight into the issues and challenges of the 21st century technology industry than exists in the current administration.

This likely cuts both ways. A Democratic administration would likely be more supportive of immigration policies that would enable tech firms to keep and attract more talent – as well as for international talent to decide to innovate and build in the U.S. rather than in Europe or Asia. This would benefit fintechs across the board as much as it would benefit technology companies generally.

At the same, there’s no doubt that regulation – especially financial regulation – would likely see a resurgence. While many are wondering about the prospects of an Obamacare 2.0 in a Biden/Harris administration, fewer are discussing the possibility of a CPFB 2.0 and the likelihood of a renewed attention on fintech’s lenders in particular. I think that the CPFB’s creator, Massachusetts Senator Elizabeth Warren, would probably not be headed to Treasury in the event the American people put Joe Biden in the White House, but her influence on the resurrection of the agency would be powerful.

At the same time, it is worth remembering that Joe Biden has a far different historical relationship to the world of finance, if not fintech, compared to Senator Warren. As a multi-decade senator of Delaware, Biden has been criticized – including by Senator Warren – for his “energetic work on behalf of the credit card companies.” A 19th century Delaware law allows any American company to incorporate in the state and not a few firms over the years have taken advantage of this to “place their profits in Delaware-based holding companies to avoid paying taxes in the places where they actually operate” as Tim Murphy described in Mother Jones last year.

It may be too much to suggest that the First 100 Days of a Biden Administration would feature a tug-of-war between the new president and Warren over the appropriate attitude toward consumer lending and credit. But the presence of both does suggest that any policy that emerges could be more moderate than might otherwise seem.


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Tandem Bank Acquires Allium Money

Tandem Bank Acquires Allium Money

Tandem Bank announced its latest acquisition this week. The U.K.-based bank has purchased Allium Money, an alternative lender that offers consumers financing to improve the energy efficiency of their homes.

Specific terms of the deal were not disclosed, but it is made possible by Tandem’s $78 million (£60 million) funding round that was led by Qatar Investment Authority and closed last week.

Tandem Bank will use Allium to enhance its existing in-house lending suite, tapping into Allium’s green lending solutions that help homeowners finance everything from insulation to efficient windows to solar panels.

“This is great news for our customers and the team that have worked tirelessly to develop the business focussing on financing improvements for our environment,” said Allium CEO Paul Noble. “The combination of Allium and Tandem will create the ability to rapidly scale a green banking proposition and help more customers access green finance products.” Noble will join Tandem’s executive team.

The partnership comes at a good time. With an increased focus on climate change and awareness of their impact on the environment, consumers have shown heightened interest in green initiatives. Along with home improvements, ESG (environmental, social, and governance) investing is also gaining interest.

Tandem Bank has raised $175 million (£134.3 million) since it was founded in 2013. The challenger bank’s 700,000 customers have access to Tandem’s accounts that include Autosavings technology, credit card, and, coming soon, cashback rewards.


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Digital Receipts Platform ReceiptHero Joins Mastercard Lighthouse

Digital Receipts Platform ReceiptHero Joins Mastercard Lighthouse

Digital receipts platform ReceiptHero will join Mastercard’s Lighthouse Development Program in September. The Helsinki, Finland-based company made its Finovate debut earlier this year at our Berlin conference, demonstrating how its digital receipts technology makes accounting easier for banks and PSPs while giving customers greater transparency into their spending.

ReceiptHero is one of 15 companies from the Nordic and Baltic countries to be included in the program’s fall cohort. Participating startups will work with program partners such as Swedbank, SEB, and OP Bank, and receive guidance on topics such as communications and marketing, as well as strategic development. The startups also will explore potential collaboration opportunities with program partners. In the final stage of the program, the companies will have the ability to make digital pitches to investors.

“By joining the latest Lighthouse batch, we hope to work closely with Mastercard and its partnering banks on making digital receipts the new normal,” ReceiptHero CEO Joel Ojala said.

Also participating in the fall program are five companies from Sweden: Gimi, Charge, Youcal, Ponture, and FossID; and five companies from Lithuania: Kevin, ConnectPay, Regvolution, Spell, and Savings Pands. In addition to ReceiptHero, there are another four companies from Finland: Voima Gold, XMLdation, Arctic Security, and InvestSuit.

“In every edition of the Lighthouse Program, we can see that the Nordics and Baltics are genuinely leading in payments innovation,” Head of Digital Development and Fintech Engagement for Mastercard in the Nordics and Baltics Mats Taraldsson said. “This proves the importance of strengthening the ecosystem through open innovation platforms such as Lighthouse.”

Founded in 2018, ReceiptHero teamed up with Verifone last fall, enabling digital receipts to be linked to customers’ payment cards. Verifone has a major presence in the Nordic region, and the partnership allowed ReceiptHero to access not only a larger part of the Finland market, but also to expand to other Baltic countries where Verifone “already has a large footprint,” Ojala said. Later that same month, ReceiptHero announced a collaboration with Nordea, which added the company’s digital receipts to its Nordea Wallet app.

ReceiptHero began 2020 with a pledge to plant one million trees by 2025 by donating $1 to conservation charity One Tree Planted for every new merchant that joins its digital receipt platform.


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