Quicken Loans Planning IPO

Quicken Loans Planning IPO

CNBC reported today that Quicken Loans is planning to go public this year. Morgan Stanley, Goldman Sachs, Credit Suisse and JPMorgan are helping manage the deal.

Founded in 1985 by Dan Gilbert, Quicken Loans has risen to the ranks of the largest mortgage lender in the U.S. It’s unclear what the company will be priced. However, as CNN explained, “The targeted valuation is still being decided, but it is likely in the tens of billions of dollars… That would imply a multi-billion-dollar IPO, one of the largest – if not the largest – this year.”

The spike in mortgage refinances has been beneficial to the Michigan-based company. In April, Quicken Loans experienced the biggest month in its history, closing $21 billion in mortgages.

There is no official word on when (or if) the IPO will take place, but CNBC reports the offering could take place as early as next month.

Photo by Blake Wheeler on Unsplash

Does Your Bank Need a Chief Medical Officer?

Does Your Bank Need a Chief Medical Officer?

In some parts of the globe, cities are slowly relaxing their social distancing guidelines. Businesses are beginning to open up and residents are once again venturing out to offices and into storefronts.

Some tech companies have made the move to become remote-first, keeping employees out of physical offices for the foreseeable future. Banks, however, face regulatory scrutiny over communication and documentation, and can’t allow their employees to work from home as easily.

So as many begin to let their guard down, where do a bank’s responsibilities lie in regard to maintaining a safe, virus-free work environment and branch location?

As with everything, the buck stops with the banks’ leadership. They are responsible for not only heeding guidelines from their local and federal governments, but also for understanding concerns of their customers and employees. To answer the question in the title, no, banks don’t necessarily need a chief medical officer. They do, however, need to appoint a person or a group responsible for creating safety measures around their branch and workplace.

The first step in doing this (aside from abiding by governmental guidelines) is to listen to the concerns of customers and of employees. While some may be ready to show up to the office or branch with minimum precaution, others may request increased social distancing in the office and curbside services at the branch.

Listening to these concerns will offer a clearer picture of next steps and a timeline. Options include offering individual cubicles separated by plexiglass, monitoring employee temperatures, increasing cleaning frequency to once-a-day, limiting the number of employees in the office and rotating work-from-home schedules, limiting customer numbers in the branch, requiring face masks, increasing sick leave for employees, etc.

If a requirement such as taking temperatures at the door arises that no one on the team feels comfortable with, hire an outside medical specialist. And if all of the new protocols seem completely overwhelming, banks should consider bringing on a consultant to help with things like deep cleaning protocols, updated health and safety plans, and emergency response plans.

Would it hurt to hire a Chief Medical Officer? Certainly not. But by listening to employees and clients and applying some creativity, banks can come up with a workable solution that helps both employees and customers feel safe.

Lift Every Voice: Fintech’s Other Diversity Challenge

Lift Every Voice: Fintech’s Other Diversity Challenge

In the wake of the tragic killing of George Floyd at the hands of a Minneapolis police officer, people around the world are showing remarkable support for the cause of African American equality. From every corner of the globe, and in cities and towns across America, people from all walks of life are increasingly committed to making sure that the slogan “Black Lives Matter” evolves from being a mere rallying cry to a new reality for millions of black Americans.

With this in mind, we want to share again our thoughts on ethnic diversity in our industry, fintech, where we are in terms of inclusivity, and where we need to go.


When the discussion of diversity in the tech world comes up, the conversation is typically oriented around gender diversity. But the call for greater inclusion in the tech world is not limited to gender; diversity along ethnic lines is also a goal that technology companies have increasingly begun to strive toward.

Perhaps the international nature of many technology enterprises, with tech entrepreneurs and tech talent truly arriving in Silicon Valley from all corners of the globe, serves to mask the relatively small number of tech firms in general, and fintech firms, in specific, that are run by Americans who are ethnic minorities. Indeed, an online search for “African Americans in fintech,” for example, is almost as likely to produce entrepreneurs from Nairobi, Kenya as from Newark, New Jersey.

Importantly, there are tech firms that have won admiration for the diversity of their teams. Slack, for example, was widely praised for its diversity report which, released in 2017, showed that the company had achieved better gender diversity than its Silicon Valley peers. The report also revealed that Slack’s workforce had as much as 3x the number of underrepresented minorities (African American, Latino/Hispanic, and Native American) as its peers. An Atlantic article from 2018 pointed out that where Slack had minorities in 13% of all technical positions and 6% in leadership positions, companies like Google and Facebook had less than 4% of their technical positions filled by underrepresented minorities.

Clinc CEO and co-founder Jason Mars during his company’s Best of Show winning demonstration at FinovateFall 2016.

How has fintech fared when it comes to ethnic diversity in its technical and leadership ranks? Finovate has hosted a handful of fintech companies with African American leadership over the years – Clinc and its CEO and co-founder Jason Mars, DarcMatter and its COO and co-founder Natasha Bansgopaul, are two that come to mind. And the industry writ large may have more founders of color than many think: Forbes celebrated the release of its Forbes Fintech 50 roster last year by featuring Ryan Williams, the young, African American CEO of mortgagetech firm Cadre on the magazine’s cover. And venture capital firms like Backstage Capital have made investment in startups with founders of color – as well as women and members of the LGBT community – a priority.

Nevertheless, even as the number of African American and Latino/Hispanic tech founders and leaders has grown, it remains true that there are fewer African American and Latino/Hispanic founders and CEOs in fintech relative to other areas of technology, including education and health-related tech fields.

One of the biggest problems that companies lacking in diversity can face is that it can make them less capable of responding to the needs of diverse markets. Fintech analyst Mary Wisniewski wondered in a 2018 American Banker article “Are black millennials a blind spot for fintech firms?” and noted that while millennials in general have developed a healthy skepticism toward banks, this wariness is all the more pronounced in young people from communities of color. Among the solutions offered are more minority-owned financial institutions, and an increased emphasis on financial literacy and wellness as an engagement strategy for younger minorities.

In this regard, fintechs like GRIND may become more well-known and popular. Launched last year and based in South Central Los Angeles where it caters to the local African American community, GRIND offers FDIC-insured debit accounts, a mobile banking app, and the ability to get paid two days earlier if they set up direct deposit with GRIND. Another example of this kind of company is Finhabits, a bilingual (Spanish/English) mobile investment platform launched by Carlos Garcia in 2015. Garcia, an MIT graduate with experience with Merrill Lynch and Galileo Investment Management, explained that the issue for Latino and Hispanic communities was not their ability to save, but their lack of familiarity with investing. “Our day-to-day money management is good, but planning for 15 years ahead is not” he said in a 2017 profile.

As fintech continues to diversify itself as an industry, one good note is that it appears that fintech may be helping alleviate some of the issues in financial services caused, in part, by a lack of diversity. A recent report from the FDIC on consumer-lending discrimination in the fintech era, for example, suggested that technology may be playing a positive role in reducing the discrimination in credit faced by Latino/Hispanic and African-American consumers in particular. The report specifically pointed to “new entry of fintech platforms” as well as digital improvements by incumbents for increasing competition and declining rate discrimination.

Amazon Partners with Goldman Sachs on New Line of Credit Offering

Amazon Partners with Goldman Sachs on New Line of Credit Offering

Symbiotic relationships, like the way bees help flowers pollinate while harvesting nectar to feed their colonies, can be found all over nature. They are also quite common in fintech.

The latest example of fintech symbiosis is today’s partnership between Amazon and Goldman Sachs. CNN reported this morning that Amazon revealed a lending program for U.S.-based small businesses that sell on its platform.

Goldman’s Marcus will offer revolving credit lines of up to $1 million. The loans will carry an annual interest rate of 6.99% to 20.99%. Minimum payments are due on a two-week cycle and if borrowers don’t use at least 30% of the funds, they are charged a maintenance fee.

Interestingly, the new offering will compete with Amazon’s existing small business lending product, which it launched with Bank of America in early 2018. According to CNN, last year Amazon loaned more than $1 billion to 14,000 sellers.

Goldman, which will service the lines of credit, will underwrite the loans using merchant data collected by Amazon (if the seller agrees to share their data). As CNN pointed out, this is a rare move by Amazon, which, “has kept a tight rein on its small business lending program, using algorithms and closely guarded sales data to determine who could use a loan.”

The data sharing doesn’t extend past lending opportunities, however. Goldman will only use seller data for lines of credit and will not use it to cross-sell other products or services. Additionally, Amazon won’t be able to access the data that Goldman collects from prospective borrowers.

The move makes Amazon the latest third party on Goldman’s list of partners for its Marcus brand, which caters to a younger and generally less wealthy client base. Furthermore, the partnership accelerates the bank’s mission to make Marcus a banking-as-a-service provider for third parties. Marcus’ existing partners include Apple, JetBlue, Intuit, and AARP.

Photo by Hoover Tung on Unsplash

How Does Fintech Affect Ecommerce?

How Does Fintech Affect Ecommerce?

The following is a guest post by Jake Rheude, Vice President of Marketing for order fulfillment company Red Stag Fulfillment.

Fintech has dramatically shifted the way people and enterprises use and move money, and that’s increasingly impacting the world of ecommerce. While logistics is typically thought of a sloth when it comes to adopting innovative technologies, fintech may be a unique case because of the savings it generates, protection it offers, and where demands for adoption come from now.

The landscape is changing, and ecommerce is shifting in significant ways that are important to learn. If you’re in fintech, here are some major opportunities for your next solution.

Validation and KYC compliance

There’s a growing call for ecommerce brands and marketplaces to start focusing on better know your customer (KYC) compliance and services. Online payment fraud continues to rise and the European Payments Council notes that threats are demonstrating a greater degree of professionalism of cybercriminals.

Ecommerce companies are tantalizing targets as they grow larger or when it’s discovered that they lack significant security measures. KYC validation provides a very early deterrent by help collect and verify specific user information — from face IDs and credit card numbers to requirements to use only a verified current address.

It’s a security measure that ecommerce companies are happy to adopt. The lane for fintechs to work here is facilitating KYC programs (and even related AML regulatory checks) within their offering. In a growing number of cases, KYC is baked into fintech solutions, easing the burden on ecommerce and providing greater protection while also making it more of an industry standard.

Stores are looking beyond borders

Ecommerce makes more goods available to more people, regardless of where the company or the customer are. Early fintech helped establish the pathway that ecommerce-focused solutions are taking now.

SWIFT gpi (global payments initiative) made it easier for banks to manage and trace these payments. In early 2019, SWIFT announced a specific gpi link for ecommerce that included plans to use R3’s blockchain technology.

While much of the focus is on support bank payments and activities, this shift provides a unique opportunity for large ecommerce brands as well as those near country borders. When this or similar platforms become available, a company may not need a presence in another country to expand its reach there. Fast, affordable payment management could make it easier for ecommerce companies to work with a variety of payment providers for both their interactions with customers as well as supply chain partners.

When fintech simplifies cross-border payment management, it becomes easier for ecommerce to expand beyond greater boundaries or choose where to have fulfillment locations.

Ubanked shoppers are blending commerce

One of the more exciting fintech innovations for ecommerce companies is coming to stores near you. A well-known example comes from the Oxxo convenience stores in Mexico. More than half of Mexico’s shopping population lack bank accounts, but they still want to shop online. So, they make a purchase from select online merchants and then go to their nearby Oxxo store and pay for the products they selected. Someone who only has physical cash and no bank account is able to buy goods only sold online.

It’s a “low-tech” solution that takes innovative fintechs to pursue. It’s also an extremely rich opportunity. According to 2017 data, there are about 1.7 billion unbanked adults in the world. There’s a good chance, however, that this group overlaps with the ever-growing number of Internet users (about 4.54 billion as of January 2020).

We know about two-thirds own a phone, so as these consumers shift to smartphones and gain access, there’s a big place for fintechs to support ecommerce growth.

Better behind-the-scenes payments

Ecommerce relies heavily on the logistics sector and these both interest with fintech at multiple locations for every sale. The problem with all the financial movement of payments, insurance, product handoffs, etc., is that there’s a lot of opportunity for receipts and bills to go missing. Sometimes it is accidental, other times fraud.

Fintech services that aim to automate payment processing during handoffs can protect everyone. This potential is growing with the adoption of more supply chain DLT offers. Ecommerce companies are part of this when their fulfillment partners, suppliers, and manufacturers join such blockchains.

This cost-reduction and risk mitigation is often felt most by the carrier. The move into ecommerce is likely going to be driven by these carriers and logistics partners.

APIs will shape the future

In many emerging fintechs, as well as regtech (regulatory technology), the API dominates the way information is collected, used, shared, and reported. They simplify the way banks and fintechs interact with each other as well as how ecommerce companies manage payments and budgets.

Today, API use is somewhat limited, and most ecommerce merchants won’t think much about it beyond if a payment API integrates with their platform or not. However, this is likely the area of most impact for our future, even if we can’t see what that will be. It’s likely to be beyond simply moving to the cloud.

One possibility will be their ability to connect fintech and ecommerce companies in a way that customers don’t see a difference. Right now, if you shop on Amazon, you might get an offer like saving 10% by opening up an Amazon-branded credit card. API innovations could allow any ecommerce company, of any size, to offer the same based on user data.

Imagine instant (digital) point-of-sale consumer loans and financing, loyalty programs that work across merchant categories, mobile wallet integration, and more.

What might be the biggest fintech revolution, and one we hope to see, is easing ecommerce company requirements. Adopting a platform API might be all a company needs to do now to get continual access to the latest security updates and payment options when the fintechs that build these innovations join the API community.

APIs already run significant warehouse and fulfillment operations, meaning there’s a goldmine of data to be leveraged for everyone at the table, if fintechs make it easy for ecommerce companies.

Photo by Brooke Lark on Unsplash

Status Money Launches Premium Membership

Status Money Launches Premium Membership

Budgeting and financial comparison platform Status recently made a tweak to its business model. Company Founder and CEO Majd Maksad recently sent an email to users saying that the company launched a premium membership option.

The app will still offer free access but the premium membership unlocks advanced features and the ability to earn cash rewards for simply using the app. Interestingly, the premium membership will be income-based. Maksad explained, “The app remains free for everyone– but depending on your income, you may be asked to make a contribution to access the Premium features and rewards. You can choose your own contribution amount based on what you think is fair.”

Users can choose contribution levels ranging from $1 per month to $20 per month. However, if the user opts to contribute $1 or $2 per month, they receive a message saying, “A little goes a long way. Please consider contributing $3 or more.”

The premium option unlocks most of the features users were previously enjoying for free. In the screenshot below, the yellow locks in the sidebar show the features behind the paywall.

Status noted that it didn’t take lightly the decision to add a fee. However, the company said that the additional revenue is “crucial” for it to develop new features. “Any contribution you choose to make will also help us continue serving lower income members for free,” Maksad added.

Status’ main business model relies on referral partnerships with companies including Airbnb, AllState, Liberty Mutual, Betterment, VSP, and Haven Life. However, with the VC funding forecast looking bleak, the company probably realized it needed an alternative way to generate capital in order to stay afloat and invest more into the product.

Photo by Paweł Czerwiński on Unsplash

Personal Capital Helps Investors Worried about the “What If” of Future Recessions

Personal Capital Helps Investors Worried about the “What If” of Future Recessions

Not that we didn’t see it coming, but the National Bureau of Economic Research officially declared yesterday that the U.S. entered into a recession in February.

With the market volatility over the past few months, many investors have attempted to assess how the changes will impact their retirement plans. Seeing the need to offer peace amid uncertainty, Personal Capital made a move last month to help investors prepare their portfolios for the worst.

The company added a new tool, Recession Simulator, to its dashboard. The feature helps its U.S. users illustrate the effects that historical recessions would have on their portfolio. Currently the Recession Simulator allows users to mimic returns of the DotCom crash of 2000 and the Financial Crisis of 2008.

“With uncertainty around the market’s performance and overall economy, we want to continue to be a catalyst for providing individuals the necessary tools and insights to best position themselves to reach their financial goals under volatile market conditions,” said Personal Capital EVP for Advisory Service, Kyle Ryan.

The retirement dashboard also incorporates expected return and volatility, annual savings, income events, spending goals, retirement spending, social security, and tax rules for taxable, tax-deferred, and tax-free investment accounts. My favorite aspect of Personal Capital’s retirement tool is that it allows users to generate different scenarios to simulate retirement income under multiple circumstances. It helps users to easily compare situations such as: What if there is a recession every 10 years? What if I sell my rental property at age 50? What if I pay for a child’s tuition?

The new Recession Simulator tool is the result of a company-wide hackathon, and according to Personal Capital’s recent survey, it comes at a good time. The survey found that around 40% of people indicating they were planning to retire within the next 10 years have decided to delay their retirement. It also uncovered that around 77% of the respondents who are at least 10 years away from retirement expressed some concern about COVID-19’s impact on their retirement goals.

A Finovate alum since 2011, Personal Capital has amassed $12.3 billion in assets under management since it was founded in 2009. The company has 24,000 investment clients across the U.S. and 2.5 million registered users of its free financial planning tools.

Photo by Travis Essinger on Unsplash

Fintech Halftime Review: Rewinding, Assessing, and Looking Forward

Fintech Halftime Review: Rewinding, Assessing, and Looking Forward

2020 has been quite a year. No one could have predicted the strides the fintech industry has made in digital transformation, the dramatic change in the way consumers use physical bank branches, or the shift in attitudes toward mobile payments.

Because taking in all of the changes over the past six months is a monumental task, we thought we’d help out. The Finovate Fintech Halftime Review, took place June 22 through June 26, and was a free, week-long digital event comprised of webinars, videos, whitepapers, eMagazines, and more. We covered a new topic each day, and the webinars are now available to watch below.


Supporting Stimulus Lending Programs with Appian


Driving Higher Close Rates, Faster Closes, and Higher Customer Loyalty with Glance 


Looking Under the Hood of Today’s Payments Ecosystem with Fiserv 


Optimizing your IT Infrastructure for Fintech with Cyxtera


Rethinking Traditional Wealth Management Services with Aixigo 


Thanks to our partners aixigo, Fiserv, Glance, ITSCREDIT, MyLife, Cyxtera and Appian for providing their support and expertise.

Photo by Icons8 Team on Unsplash

Going Live: How Some Banks are Dealing with Remote Implementation

Going Live: How Some Banks are Dealing with Remote Implementation
Photo by engin akyurt on Unsplash

What is the safest way for banks to go live with new tools in the height of a global pandemic? Remotely, of course!

This is the reality that many bank and third party providers have faced over the past few months. Despite the complications that COVID-19 has brought to banks’ operations, many are still moving full speed ahead on projects with third party providers.

Naresh Kurup

Naresh Kurup, Marketing Director at banking financial crime risk management firm Clari5 has experienced this first-hand. After the pandemic hit, Clari5 was forced to quickly move to a work-from-home setting while onboarding two new clients completely remotely, something the team had never done before. We caught up with Kurup to get the details.

In the height of the coronavirus lockdown, you were able to help two new bank clients start projects. Tell us more about this.

We leveraged the coronavirus lockdown situation as an opportunity to excel, for our customers and for us. Amidst the din all around about how the pandemic has been negatively impacting firms and systems worldwide, we had some noteworthy achievements during the lockdown, including three new client wins.

The two projects that we started were both large enterprise fraud management projects for banks (one of them is the Philippines’ second largest bank). Both banks were agreeable to starting their projects during the lockdown – a testimony to the faith in our capability.

We also had another prominent new bank go live with our enterprise fraud management solution, despite the nation-wide lockdown, via a 100% remote implementation.

Our cloud-based project management framework – called Clari5One, has been helping us work seamlessly and virtually. In fact, we have been working at 150% productivity.

So, we actually have been having a silver lining in the Covid cloud.

Were there any hesitations from the banks’ perspectives? If so, how did you deal with their concerns?

There were a few initial apprehensions around remote project initiation and implementation as this is not the standard practice for large enterprise implementation projects.

We modified and extended our project management framework to the banks for higher real-time synchronicity and shared visibility of the delivery management plan.

In the case of the bank client going live during the lockdown, it was mutually agreed that the entire implementation would be performed remotely. Everything from requirement discussions, to integration strategy and configuration, to implementation rollout for the go-live would be conducted fully remotely.

Also, high operational rigor, advanced tele/videoconferencing tools, real-time communication, and continuous updates assured the banks that our project team were completely in-sync throughout the project journey.

These factors were instrumental in the banks gaining confidence that the projects would proceed exactly as per plan, despite the situation.

What was the biggest challenge of remote implementation?

Given the nature, scope, and scale of these projects, typically large enterprise fraud management solution implementation projects demand large teams from either side working together physically closely.

But, given our project management platform, advanced communication tools, and the heightened diligence because of the situation, instead of working alongside the banks’ fraud risk management department officials, our remote project team dovetailed seamlessly with them. So, we were very much present, but virtually.

In fact, the CIO of the bank that went live on Clari5 EFM said, “We are an execution-oriented organization that sets sight on a goal and achieves it, despite roadblocks. We are pleased that Clari5 imbibed our vision, and went live with the mission-critical, enterprise-level fraud risk management solution, despite COVID-19. We appreciate team Clari5’s efforts to keep our operations running and being supportive at every step. Happy to have Clari5 as our valued partner.”

Also, as with any conventional project management, we had no margin for error and were all set to achieve the targets on time, despite managing the projects remotely.

Lessons learnt include project management hyper-optimization, integration approach, methodology finalization, remote infrastructure setup, SIT/UAT support, and final thrust for go-live.

In fact, if it weren’t for the virus, we wouldn’t have had an opportunity to demonstrate that yes, we indeed can remotely activate and implement.

What technology/ tools have you found useful in implementing projects with clients remotely?

As a young fintech company we are equipped and enabled in processes and technology that support ‘work from anywhere’ for most of our staff. So, transitioning to a ‘complete’ remote working situation for project implementations in the wake of the coronavirus lockdown wasn’t exactly a big leap for us.

Since implementation of the Clari5 suite requires close interactions with client teams as well as tasks and activities that are required to be done on premise, we transitioned them to Clari5One – our cloud-based project management framework that has multiple technologies as components.

Clari5One helped us with –

  • Detailed requirements gathering, demo of use cases, technical specifications interactions
  • Installation / configuration of Clari5 application components
  • System integration tests and support for use acceptance tests
  • Production deployment, go-live, and post go-live support
  • Project governance (reviews, interventions, and decisions)
  • Issue tracking, work allocation, and status tracking

If given the choice between an in-person implementation and a remote one, which would you choose?

Undoubtedly, remote.

Being an enterprise product company, we work very closely with client banks to help them achieve their risk and compliance requirements completely and consistently. Project implementation proficiency and on-time delivery have been the hallmarks of our success, which we have achieved consistently in implementations across geographies. But COVID-19 tested our hypothesis.

The outcome has been a mindset shift in our project implementation approach. We had experimented with remote implementations in the past, but the COVID-19 lockdown provided a live environment to validate our remote implementation hypothesis. The leading bank going live boosted our confidence to manage an entire project remotely.  

We are now honing our remote implementation expertise for other projects on the anvil. We are currently implementing an EFM project for Philippines’ second largest bank using our remote implementation methodology.

Given the clear advantages of people deployment efficiency, cost economies, and much shorter go-live timeframes, we expect a substantial number of future implementations to be managed remotely.

Suffice to say, remote implementation of large banking enterprise solution projects will become the new normal.

Hydrogen on the Rise of Payments as a Service in Fintech

Hydrogen on the Rise of Payments as a Service in Fintech

The latest report from fintech enablement platform Hydrogen, which made its Finovate debut in 2018, takes a look at how the global public health crisis has accelerated the rise of payments-as-a-service. But it’s not just COVID-19; enabling technologies like blockchain and AI are helping play a major role in making PaaS a key space for both fintech disruptors and payment incumbents.

“While cash is still the leading form of payment at the point of sale, accounting for about 77% of all payments worldwide,” the report noted in its Executive Summary, “non-cash payment options such as e-wallets are gaining popularity, and the number of people using mobile payment apps in-store is forecasted to surpass one billion for the first time in 2020.”

Hydrogen’s report provides an overview of the PaaS market, how fintechs are driving innovation in the space, critical payment trends that will be accelerated by PaaS, and what industry experts and analysts are saying about the challenges they’ve overcome when innovating in the payments space and what they expect to see in payments over the balance of 2020 and beyond.

Access Hydrogen’s report on the rise of Payments-as-a-Service.

“Payments enablement platforms will be the bridge between the legacy cash infrastructure of yesterday, and the digital systems of tomorrow,” the report observed. Putting companies like Hydrogen at the center of this effort, the report anticipated that “this will create more competition, thus lowering costs for small and medium sized businesses (SMBs) and merchants, that can be passed onto consumers.”

Hydrogen helps developers build complex fintech applications quickly and with a single integrated platform. The company’s solution offers a suite of REST APIs to support custom app development and a no code environment to enable developers to configure white label apps without any coding required. Founded in 2017 by Michael and Matthew Kane, Hydrogen is headquartered in New York City.

Earlier this month, Hydrogen announced that it was teaming up with fellow Finovate alum IDology to help businesses run KYC checks on their end users. In April, the company announced that it was integrating with Amazon Web Services’ Key Management Service, having made a similar move with Azure’s KMS a few weeks before. Other partnerships forged by Hydrgen this year include collaborations with Tink, Salt Edge, and Zillow.

BankBazaar Scores $6 Million; PayPal Makes Strategic Investment in Tink

BankBazaar Scores $6 Million; PayPal Makes Strategic Investment in Tink
Photo by Engin Akyurt from Pexels

Courtesy of a round featuring new investor WSV – a joint venture fund of Walden International and Korean firm SKTA – online financing solutions marketplace BankBazaar has raised $6 million in new equity funding. The company will use the capital, which adds to an existing Series D round, to help market its contactless personal finance solutions as it continues its expansion in India.

In a blog post at the company’s website, company CEO Adhil Shetty noted that the current global public health crisis is fueling pre-existing trends in favor of contactless transactions. “In the post COVID-19 world, the demand for contactless finance is going to grow exponentially,” Shetty said. “(T)his round of funding will help us accelerate our plans to implement contactless access to credit.” He added that the investment, which also featured participation from the company’s existing investors Amazon, Sequoia India, Experian, and Eight Roads, represents an endorsement of the company’s “vision of contactless finance as the future of personal finance” as well as BankBazaar’s ability to make that happen.

An alum of FinovateAsia (learn about our upcoming all digital FinovateAsia event next month), BankBazaar offers an unbiased online marketplace for instant, customized rate quotes on a variety of credit products from loans to credit cards. The company, called “the Credit Karma of India” by WSV General Partner Andrew Kau, is headquartered in Chennai, India, and was founded in 2008.


Also adding new capital to its coffers is Tink, the open banking enablement platform based in Stockholm, Sweden. The company, most recently demoing its technology on our stage at FinovateEurope last year, announced this week that it has received a strategic investment from PayPal. This week’s funding, amount not disclosed, represents the second time PayPal has invested in the company; PayPal made its first strategic investment in Tink in June 2019.

As part of the agreement, PayPal will integrate Tink’s open banking and account aggregation technology into some of its customer-facing user experiences. The extended agreement between the two companies now includes all countries within the European Economic Area (EEA).

“PayPal is one of the world’s leading finech companies, serving more than 330 million consumers and merchants in more than 200 markets worldwide,” Tink co-founder and CEO Daniel Kjellén said. He added, “as Europe’s leading open banking platform, we are looking forward to continuing to support PayPal as they extend and enhance their services across the whole of Europe.”

It is an understatement to say that Tink has had a big year on the capital-raising front. The company began the year closing a $100 million round led by a pair of new investors Dawn Capital of London and HMI Capital of San Francisco. In addition to the company’s funding news, Tink partnered with Nordea to integrate its technology into the bank’s mobile app, acquired Spanish account aggregation specialist – and fellow Finovate alum – Eurobits Technologies, and teamed up with BNP Paribas to become the firm’s preferred partner in Europe.


Here is our weekly look at fintech around the world.

Central and Southern Asia

  • DBS Bank India teams up with TCIL to facilitate real-time payments for truck drivers.
  • BankBazaar raises $6 million in new funding.
  • Hindustan Times profiles Hyderabad-based fintech Quickcredit.

Latin America and the Caribbean

  • Latin American open banking startup Belvo raises $10 million in new funding from Founders Fund and Kaszek Ventures.
  • On-demand insurance technology leader Trov partners with Seguros Sura Brazil to bring on-demand insurance to Brazil.
  • Santander InnoVentures leads $5 million funding round for Latin American alternative lender a55.

Asia-Pacific

  • A few weeks ago we wrote about the rise of QR-code payments in many markets around the world. This week brings news that Japan’s JCB has partnered with FIS to power its cross-border QR code payments, initially between Vietnam and Thailand.
  • Aleta Planet and Zhongguo Remittance partner to launch new online money transfer service, Aleta China Express, to make it easier to send money from Singapore to China.
  • Gojek, an Indonesian ride hailing service turned payments and financial services superapp, earns investment from Facebook and PayPal.

Sub-Saharan Africa

  • Nigerian digital bank Sparkle launched this week after securing its license from the Central Bank of Nigeria.
  • Forbes profiles Fara Ashiru Jituboh, co-founder, CEO, and CTO of Nigeria-based financial services “super-connector” Okra.
  • 6DOT60 introduces its digital rands platform in South Africa.

Central and Eastern Europe

  • Cloud banking platform Mambu partners with low-code platform provider VeriTran.
  • Sovcombank of Russia unveils online mortgage loans.
  • Alior Bank looks for for mobile-banking focused startups to fill the ranks of this year’s ten-week accelerator program.

Middle East and Northern Africa

  • MoneyGram announces strategic partnership with Al Rajhi Bank, the largest Islamic bank in the world, to support money transfer services in Saudi Arabia.
  • Dubai-based fintech JinglePay goes live as the latest neobank in the UAE.
  • OneSpan to provide mobile app security for Turkish bank, DenizBank.

Arival Announces Beta Launch of its Banking Account for Abnormal Customers

Arival Announces Beta Launch of its Banking Account for Abnormal Customers
Photo by Expect Best from Pexels

“As a matter of fact, I went to the doctor and he said that I was above normal. Or, as he put it, ‘abnormal.'” Andrew “Squiggy” Squiggman, Laverne & Shirley, 1976.

Whether you consider yourself “above normal” or just another banking consumer with unique needs, Arival Bank, which launched in 2018 as a spin-off venture from Life.SREDA, has you covered. The bank announced today that it is launching its Arival beta account to provide banking services to “abnormal customers.”

“Too many clients today are rejected by traditional even digital banks because they are viewed as ‘abnormal’, ‘too risky,’ or ‘unusual,” Arival Bank COO Jeremy Berger noted in a blog post announcing the beta launch. “International startups, new tech ventures, crypto-related businesses, investment funds, e-residency businesses, freelancers, charities, expats, digital influencers, bloggers, gamers and streamers, and many others are rejected by traditional and even digital banks. It’s only a matter of time (before) the demand from abnormal customers will outgrow that of traditional customers.”

Arival is introducing an online bank account that is tailored to the needs of businesses and entrepreneurs like these. The company is opening the beta release to 3,000+ early signups from its waiting list. Arival will be adding a business bank account and an individual bank account soon, and said that it is already accepting applications for both accounts. Beta participants also will get an early look at Arival’s banking platform, ArivalOS, with no fees for the first 90 days.

A Best of Show winner in its Finovate debut at FinovateAsia in 2018, Arival was founded to help underbanked businesses maximize the opportunities of digital banking. Powered by open API fintech banking, the company’s ArivalOS provides a digital banking platform that integrates a comprehensive suite of third-party fintech solutions and services geared toward the needs of SMEs and entrepreneurs. Headquartered in Singapore and co-founded in 2017 by Vladislav Solodkiy (CEO) and Igor Pesin (CFO), Arival raised more than $2.3 million in its equity crowdfunding campaign last fall, earning a pre-money valuation north of $14.8 million.