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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
From the continued relevance of paper checks to the rapid growth of digital technology, payments continues to be one of the most fascinating — and important — areas in fintech.
In this week’s Streamly interview, William Mills, CEO of the William Mills Agency, talks with Kevin Brown, CMO and Head of Corporate Development for Onbe. The two men discuss a variety of key issues in the payments world, including the potential for AI to revolutionize payment systems and the future of cross-border payments.
“One of the very prevalent modalities, or payment instruments, that still exist are paper-based checks. We did research with the team at Oliver Wyman and, in 2023, there were still 1.7 trillion dollars of paper check or cash-based B2C payments. A huge amount of paper that’s out there. Checks are dated, not a great customer experience, require action on behalf of the consumer and they’re really expensive to corporate clients … As an industry, we have a huge opportunity to still alleviate a significant amount of pain, both for the ultimate enterprises and then their consumers and recipients, just by the doing away of paper checks.”
Onbe manages and modernizes consumer and workforce disbursements for corporate customers. The company’s technology platform powers a suite of turnkey managed disbursement solutions that enable its customers to outsource their entire B2C disbursement operations. Headquartered in Chicago, Illinois, Onbe was founded in 1996. Bala Janakiraman Iyer is CEO.
In his role at Onbe, Kevin Brown leads marketing, corporate development, business development, and communications. A fintech and payments operator with experience at both public and private equity-backed businesses, Brown is a graduate of Marist College (BA) and Pace University (MBA).
U.K.-based financial planning and advice platform Dynamic Planner has teamed up with Salesforce.
The partnership will make Dynamic Planner available on the Salesforce AppExchange and is the company’s second CRM partnership in as many months.
Dynamic Planner made its Finovate debut at FinovateEurope 2022 in London.
Risk-based financial planning system Dynamic Planner has announced a new partnership with Salesforce. Now launched on the Salesforce AppExchange, Dynamic Planner will give Salesforce customers access to an enhanced and engaging digital financial planning experience.
“This collaboration provides financial planning and wealth management firms who use Salesforce with the ability to underpin their entire financial planning process with Dynamic Planner,” company Chief Revenue Officer Yasmina Siadatan said. “It will boost productivity gains and efficiencies, whilst delivering seamless and engaging wealth and financial planning for Salesforce customers. We look forward to working with Salesforce to provide an enhanced experience for firms.”
Founded in 2004, Dynamic Planner offers a digital financial planning and advice platform that helps investment advice firms scale their businesses, boost capacity, and better engage clients with mapped investment solutions and digital experiences. Dynamic Planner enables advisers to profile clients, conduct annual reviews, and perform cash flow planning with increased efficiency and speed. The company notes that 80% of annual reviews conducted via Dynamic Planner are completed in 35 minutes or less, with 20% of these reviews completed in less than five minutes. More than 40% of U.K. investment advice firms and more than 150 asset managers use Dynamic Planner’s technology.
Dynamic Planner’s partnership with Salesforce comes a month after the platform announced a CRM integration with Adviser Cloud. The new integration will make it easier for advisers to transfer client records efficiently and securely between Dynamic Planner and Adviser Cloud, saving time and lowering the risk of manual errors during rekeying of information. Integrations such as these are an important way to boost efficiency and lower operational costs for financial planning firms and their client.
“Adviser Cloud has always focused on providing intuitive, user-friendly software for financial advisers, and this integration continues that mission by eliminating data rekeying and enhancing workflows,” Adviser Cloud Tech Lead Ewan Humphreys said.
Headquartered in the U.K., Dynamic Planner made its Finovate debut at FinovateEurope 2022. At the conference, the company demonstrated its end-to-end, risk-based financial planning system that combines intuitive technology with a trusted, independent asset risk model. Dynamic Planner uses more than 2,400 covariance correlations to accurately assess the risk of tens of thousands of investments and client portfolios every day. Ben Goss is CEO.
Crypto.com’s new functionality, new partnership, and plans for the new year
Recently crowned the king of North American crypto trading, Crypto.com announced this week that it launched a new partnership with payments acceptance provider Ingenico. The partnership will enable users of Ingenico’s platform globally to accept payments in cryptocurrency. Consumers will benefit from earning rewards for transactions via Crypto.com’s Crypto.com Pay; merchants will benefit from being able to manage payments and services via both mobile and tablet devices.
Also this week, Crypto.com announced that it would expand its offering to include banking services, credit cards, and stock trading. Additionally, the company unveiled its new rewards program, Level Up, that enables customers to access benefits across multiple products — credit cards, stock trading, and banking services — through partner banks. Level Up offers a flexible rewards structure that enables users to secure benefits across a range of different products in the Crypto.com ecosystem.
“This product expansion represents our most aggressive push across traditional and digital finance and brings users to one simple app for industry-leading benefits through Level Up,” Crypto.com President and COO Eric Anziani said.
Finishing 2024 on a busy note, Crypto.com is already eyeing the new year. The Singapore-based fintech announced this week that it is planning to expand its crypto offerings in 2025 to include both a stablecoin and an exchange-traded fund (ETF) product. Traditional financial products such as stock trading and banking are also top of the 2025 agenda for the company, as noted above. Crypto.com has put a date of Q1 2025 for the launch of its banking product services. The firm also plans to expand its debit card services in Latin America, the Middle East, and Africa in Q4 of this year, and to launch credit cards in the U.S. and South Korea by Q2 of next year.
Boerse Stuttgart Digital partners with Fenergo
European cryptocurrency and digital asset infrastructure provider Boerse Stuttgart Digital has teamed up with KYC, client lifecycle management, and transaction monitoring solutions provider Fenergo to speed the onboarding of financial institutions that are looking to launch their own cryptocurrency offerings.
“Fenergo’s client lifecycle management solution, validated by the world’s largest financial institutions, will allow Boerse Stuttgart Digital to future-proof its solutions against regulatory change,” Fenergo Managing Director EMEA Ruth Ormsby said. “With this level of compliance automation, Boerse Stuttgart Digital can onboard banks, brokers, and asset managers seeking to unlock crypto trading faster, thus accelerating growth.”
The partnership between Fenergo and Boerse Stuttgart Digital will speed the onboarding of banks, brokers, and asset managers ready to launch their own cryptocurrency and digital asset offerings. Integrating Fenergo will streamline Boerse Stuttgart Digital’s underlying compliance processes for both Know Your Customer (KYC) and Anti-Money Laundering (AML). This will enable financial institutions working with Boerse Stuttgart Digital to offer secure and reliable crypto trading and custody services to their customers.
“In the race to realize their own crypto offerings, financial institutions require efficient trading and custody solutions without compromising on regulatory compliance,” Boerse Stuttgart Digital Chief Digital & Product Officer Ulli Spankowski said. “Our partnership empowers banks, brokers, and asset managers to enter the crypto market, backed by infrastructure that ensures scalability, security, and full regulatory compliance.”
Headquartered in Dublin, Ireland, Fenergo made its Finovate debut at FinovateEurope 2012 in London.
BitPay launches new cryptocurrency payout service
Payments company BitPayunveiled a new service late last week that will enable companies to pay employees, contractors, customers, and vendors in crypto.
The service, BitPay Send, is especially designed for international and gig economy companies that need to pay multiple recipients online at the same time. Companies are not required to buy, own, or manage cryptocurrencies themselves, and payout recipients receive their payments more efficiently and at less cost, according to BitPay CEO Stephen Pair.
“Blockchain payment adoption is growing because it offers an easy way to send and receive payments on a global scale,” Pair said.
BitPay Send can be used for a number of different payment operations including payroll, customer cash-outs, contractor payments, rewards, and settlements with marketplace sellers. The new offering also puts the firm in a position to compete with other crypto payroll services such as BitWage.
Swift, UBS, and Chainlink conclude blockchain pilot
That’s a wrap! Swift, UBS Asset Management, and Chainlink announced this week that they have successfully completed a pilot project that involved settling tokenized fund subscriptions and redemptions using the Swift network. The goal of the project is to enable digital asset transactions to settle with fiat payment systems across 11,500+ financial institutions in more than 200 countries and territories.
The pilot project builds on an initiative by UBS Asset Management and SBI Digital Markets to develop a digital subscription and redemption system for tokenized funds. This is often an inefficient aspect of traditional fund operations that is typically burdened by manual interventions, delayed settlements, and the absence of real-time transparency. The pilot demonstrated how blockchain technology can be used to settle subscriptions and redemptions for tokenized investment fund vehicles, paving the way for straight-through-processing of the payment component without requiring global adoption of an on-chain form of payment.
The project was also undertaken as part of Project Guardian, a cooperation between policy makers and industry players to enhance financial market efficiency and liquidity via asset tokenization. Project Guardian is sponsored by the Monetary Authority of Singapore (MAS).
“For digital assets to be adopted globally, they must seamlessly integrate with both existing payment systems and digital currencies,” Swift Head of Strategy Jonathan Ehrenfeld said. “Our work with UBS Asset Management and Chainlink in MAS’ Project Guardian leverages the global Swift network to bridge digital assets with established systems.”
Commercial Bank International inks MoU with Zumo
Commercial Bank International, a financial institution based in the UAE, has signed a Memorandum of Understanding with U.K.-based digital assets platform Zumo. The goal of the partnership is to investigate the tracking of digital asset sustainability and comes as the UAE makes a bid to be seen as the leading international hub for digital assets and innovation.
“Our collaboration with CBI will see Zumo’s pioneering digital assets and blockchain technology complement CBI’s financial expertise and innovative approach to drive sustainability,” Zumo COO Clark Povey said. “Zumo solves the biggest challenges in digital assets for financial institutions by providing business-critical technologies to navigate the rapidly evolving digital asset landscape, and with Zumo’s technology and leadership in sustainability to digital assets, the exciting journey ahead is just beginning.”
Crypto-as-a-service platform Zumo provides banks, fintechs, and financial services companies with the infrastructure they need to launch sustainable digital asset products. The company is a pioneer in sustainability and crypto assets, developing research and solutions to enable the crypto market to move closer to net zero. Registered with the U.K. Financial Conduct Authority (FCA), Zumo has secured public funding to build and launch a solution to help cryptocurrency companies measure, mitigate, and report on their carbon footprint. Founded in 2017, Zumo helped establish an industry standard with the release of its MiCA-compliant sustainability module in September.
Alternative lending platform LendSaaS now integrates Ocrolus’ AI-powered document automation and fraud detection.
Through the partnership, LendSaaS customers gain access to Ocrolus’ automated document review, including bank statement analysis, which helps lenders make faster, more confident funding decisions.
The integration with Ocrolus will allow LendSaaS clients to more efficiently leverage data in everything from processing lending applications to accelerating loan origination and facilitating servicing processes.
Alternative lending origination and servicing software provider LendSaaS has teamed up with AI-powered document automation and analysis company Ocrolus this week. The strategic partnership will offer LendSaaS customers access to Ocrolus’ industry-leading document analysis, cash flow analytics, and fraud detection directly through the LendSaaS platform.
“LendSaaS is one of the leading platforms in MCA origination and servicing,” said Ocrolus CEO Sam Bobley. “Thanks to our new partnership, Ocrolus is now an embedded integration available within LendSaaS, allowing customers to achieve end-to-end automation.”
LendSaaS helps lending businesses succeed by offering tools to support everything from loan origination to servicing. The New York-based company offers daily collections through ACH and credit card processors, public data and credit searching, as well as merchant interviews for underwriting, detailed reporting, daily collections, and more. Founded in 2014, LendSaaS has funded $6 billion and processes more than $16 million in average daily ACH volume.
New York-based Ocrolus leverages AI to capture and analyze data from 1,000 different types of documents and digital forms. The company counts more than 400 clients, including Enova, PayPal, Brex, CrossCountry Mortgage, Plaid, and SoFi, who use the solution to detect fraud, analyze cash flows and income, and streamline decisions.
Under today’s partnership, LendSaaS customers will have access to Ocrolus’ technology that will enable them to automate all tasks, such as reviewing documents, including reviewing bank statements and processing independent sales organization (ISO) applications. LendSaaS expects the move will help its customers more efficiently offer businesses with capital.
“Businesses seeking working capital often opt for the first offer they receive. To compete in this fast-paced market, our customers need to be able to make quick and confident financial decisions,” said LendSaaS Owner and Founder Josh Carcione. “By partnering with Ocrolus, we’re working to eliminate the need for manual document review by providing digital access to high-quality data so our customers can get a competitive edge through quick, confident financial decision making.”
API platform Speakeasy has secured $15 million in Series A funding.
The company will use the capital to expand its product offerings, accelerate its roadmap, and hire additional talent.
Headquartered in San Francisco, California. Speakeasy made its Finovate debut at FinovateFall in New York this year,
In a round led by FPV Ventures, API platform Speakeasy has raised $15 million in Series A funding. Also participating in the investment were Google Ventures (GV) and Quiet Capital. Speakeasy noted that it plans to use the funding to expand its product offerings, accelerate its roadmap, and grow its team.
“Building a really great … modern API is very much undervalued and underestimated at companies,” Speakeasy CEO Sagar Batchu said in a statement on LinkedIn. “Everyone wants to be Stripe or Twilio or GitHub in terms of quality, but to get to that status … takes huge amounts of effort.”
Founded in 2022, Speakeasy offers an API platform designed to give developers the tools they need to build quality, reliable APIs. Concerned over the fact that growing API use among businesses was outpacing the ability of developers to provide them, Speakeasy looks to close the gap with a platform that handles the more cumbersome aspects of API development, freeing developers to focus on higher-order tasks like refining business logic.
Developers can use their favorite API framework to build APIs, and Speakeasy will help ensure APIs adhere to both industry and internal best practices. Speakeasy’s platform automates API testing to avoid shipping unintentional breaking changes, and also automatically generates the SDKs to make API integration easier.
“The Speakeasy team’s past experience building enterprise APIs has given them profound insight into, and empathy for, the struggles engineering teams are facing,” FPV Ventures Managing Partner Wesley Chan said. “They are building a platform that will not only address existing inefficiencies in API development but anticipates future challenges in the ecosystem.”
Speakeasy made its Finovate debut at FinovateFall 2024 in New York. At the conference, the company demonstrated how its technology enables financial institutions to build robust, well-managed, easy-to-use APIs. With Speakeasy’s API platform, technology teams can automate the creation and maintenance of API documentation and client SDKs that facilitate rapid and seamless API integration. Customers using the platform have been able to boost API user adoption, reduce time-to-integration, and save significant engineering costs. In 2024, Speakeasy noted that nearly 3,000 users have generated 7,250 SDKs.
Headquartered in San Francisco, California, Speakeasy includes fellow Finovate alums Apex Fintech Solutions and Apiture, as well as API companies Kong, Codat, and Shippo, among its customers.
Global bank Standard Charteredunveiled this week that it has teamed up with cross-border payments fintech Wise (formerly TransferWise). The bank has selected Wise Platform, Wise’s global payments infrastructure for banks, to power international payments for SC Remit, Standard Chartered’s cross-border payment service.
Wise will facilitate fund transfers for SC Remit customers in Asia and the Middle East. Users will be able to send money in 21 currencies– including USD, CAD, EUR, GBP, SGD, HKD, and JPY. Wise will send the funds in seconds using its transparent, low-fee pricing model.
“We’re continually improving how we deliver exceptional banking experiences for our clients,” said Standard Chartered Global Head, Wealth Solutions, Deposits and Mortgages, and Chief Client Officer Samir Subberwal. “We chose to partner with Wise Platform due to their extensive currency coverage and stellar cross-border payments experience they are known for. This collaboration is a key step in enhancing our international payment services as we offer an even more seamless, faster, and efficient digital global payments experience to our clients.”
Standard Chartered said that the service will be available for SC Remit customers “in the coming quarters.” The bank also plans to expand the service to include more currencies, as well as into more markets.
Wise has been facilitating cross-border money transfers since it was founded in 2011. Today, in addition to its transparent, direct-to-consumer money transfer capabilities, Wise also offers a multi-currency account that allows users to save and hold funds in 50 different currencies, and send and receive money in 22 currencies. Wise holds more than 65 payment licenses, as well as six direct connections to payment systems.
Wise Platform, the infrastructure that Standard Chartered is leveraging, offers an API that allows banks and fintechs to embed cross-border payments capabilities into their existing website or app, allowing their customers to transfer 40+ currencies in 160+ countries. The majority (63%) of Wise’s cross-border payments are completed in under 20 seconds, while 95% take less than 24 hours. The U.K.-based company processes $154 billion (£118 billion) annually. Among Wise Platform’s customers are Monzo, N26, deel, and Shinhan Bank.
The topic of cross-border payments has accelerated in recent months, with traditional financial institutions and fintechs recognizing the need to compete by offering low-cost, rapid transactions across the globe. The rise of e-commerce, combined with new needs to pay remote workers, has led to a refreshed demand for cheaper, faster international payments. Today’s digital world has prompted consumers and businesses to expect speed and transparency when transacting, and banks are under new pressure to modernize their cross-border payment services to meet those needs.
Another factor that has brought cross-border transactions into the spotlight this year is the rise in stablecoin usage. As stablecoins become more mainstream and integrated into traditional payments infrastructure, they offer an international funds transfer solution that combines speed, cost-effectiveness, and digital accessibility.
Wise, however, currently does not use stablecoins and has not implemented blockchain technology into its operations. Instead, Wise has established a highly efficient, transparent, and compliant platform that meets compliance standards worldwide. It is unlikely that Wise will seek to leverage stablecoins any time soon, though, as adding stablecoins to its strategy could introduce new regulatory and operational complexities, which could potentially outweigh any benefits.
Melio raised $150 million in a Series E round led by Fiserv.
Today’s round values the accounts payable and receivable platform at $2 billion.
The company’s 10x revenue growth over the past three years reflects its expansion into medium-sized businesses and new partnerships, significantly broadening its customer base.
Melio and Fiserv initially began working together in 2023, when the two launched a combined solution called CashFlow Central.
Accounts payable and receivable platform Melio has landed $150 million in a strategic Series E round led by Fiserv. The investment, which brings the company’s total raised to $654 million, also saw strategic contributions from Shopify Ventures and Capital One Ventures, which are expected to boost Melio’s partnerships. Accel, Bessemer, Coatue, Frontline Ventures, General Catalyst, Latitude, and Thrive Capital also contributed.
Notably, today’s round values Melio at $2 billion. This comes as the New York-based company saw a 10x increase in revenue in the past three years. This growth was fueled by Melio’s move to add medium-sized businesses (SMBs) to its customer base, as well as its addition of new partners.
Melio and Fiserv initially began working together in 2023 in a partnership that combined Melio’s accounts payable and receivable workflows with Fiserv’s payment capabilities and biller and merchant network. The combined solution, called CashFlow Central, allows Fiserv’s 3,500+ financial institution clients to help their SMB customers manage their payment operations and cash flow needs.
“Through our partnership with Melio, CashFlow Central is designed to create significant value for financial institutions and their business clients or members,” said Fiserv Head of Financial Institutions Group John Gibbons. “We are excited to leverage our unique position at the intersection of financial institutions and businesses to deliver a comprehensive, integrated experience that enables our clients to compete and grow their portfolios with this important segment of their communities.”
Melio was founded in 2018 with the mission to empower small businesses and their accountants by enhancing cash flow and streamlining payment operations. The company’s platform simplifies both accounts receivable and accounts payable processes. It allows businesses to manage payments and invoices. Melio integrates with QuickBooks, Xero, and Amazon Business to enable features such as ACH transfers, automated bill payments, and the creation of virtual payment cards. Integrating with a business’ existing accounting tool not only reduces their administrative burden, but it also provides them with greater control, visibility, and flexibility over their finances.
“We’re proud to witness our embedded solution helping our partners better service their business clients, leading to increased deposits, higher engagement and creating new revenue streams,” said Melio CEO and co-founder Matan Bar.
74 hours, 52,012 steps, 6 cups of coffee, 8 selfies, and one unforgettable experience.
I am, of course, talking about Money20/20, the mega fintech and banking event that has been taking place in Las Vegas since 2012. With over 10,000 attendees and 300+ vendors, this year’s U.S. event was just as brilliant as in years past.
Themes
Money20/20 is a choose your own adventure type of show, with six stages and two podcast recording studios that each host a range of rotating content throughout the course of four days. Given the wide variety of content available, it was hard to see everything. However, there are three major themes that stand out as highlights: open banking, AI, and the evolution of the payments experience.
Open banking
Open banking– specifically the recently released Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act– was one of the hottest topics of the show. The majority of people on the networking floor I spoke with had not read the entire, 594-page ruling. However, everyone seemed to agree that the scope of 1033 extends far beyond simple account switching capabilities. Panel discussions surrounding the rule also tended to agree that the purpose of the rule is data ownership, and not necessarily data portability.
AI
The topic of AI pulsed throughout almost all on-stage conversations, and was very visible in sponsor pitches on the exhibit hall floor. Money20/20 even featured its own AI bot named Aiana who interacted with the MC on one particular stage. At times, Aiana’s conversation with the MC seemed to be quite coherent and relevant, but the bot occasionally missed the mark.
Perhaps the thing about the AI discussions that surprised me the most was that it was rarely the main feature of a discussion. Instead, conversations tended to pose AI more as a technological enhancement to current offerings, rather than featuring it as the main technology that firms should focus on. This shift gives me some hope that we have moved past talking about the hype of AI and into thinking of it as an enabling technology.
Payments
Payments was a huge focus for multiple on-stage discussions at the show. Among the hottest topics were cross-border payments, stablecoins, and instant payments. What was missing from many conversations that I saw in this realm, however, were discussions of the impact of fraud and regulation. I think this may have been because many speakers on stage represented larger firms or fintechs in the payments space who wanted to get a more positive message across without bringing up the topic of risk.
AI Adoption Index
In addition to these on-stage themes, I was able to review data published in Money2020’s very first AI Adoption Index report, All in on AI: Financial Services Adoption Index 2024. Produced in conjunction with Acrew Capital, the index surveys 221 leading financial institutions and combines that with data about all publicly announced AI initiatives since the start of 2023. Here are some of the top highlights:
76% of companies indicated they have announced an AI initiative
46% of companies have announced GenAI initiatives
Out of all initiatives, 57% are put in place to generate revenue, while 43% aim to reduce costs
Public companies announced 40% more initiatives compared to private companies
Block, Intuit, JP Morgan, Chime, and Stripe account for 15% of the total AI initiatives
51% of companies surveyed have built AI into their core customer-facing product. This figure does not include AI usage in a CRM setting.
Conversations
As always, the highlight of the event was the people. After working in this space for 15 years, I’ve found a diverse network that fosters community and works to build each other up. During last week’s event, I met Finnovator Founder Michelle Beyo, who discussed the benefits of personal data ownership; caught up with Sam Maule, who talked about the downsides of pay-by-bank (and was forced into yet another conversation about Walmart); Tiffani Montez, who explained why open banking is far superior to ye olde account aggregation; as well as multiple others who added depth and color to the topics being discussed.
Experience highlights
Money20/20 is now part of a newly launched Informa division called Informa Festivals, and the conference fits this description quite nicely. There are multiple elements of the conference that are all about the experience. And while not all of them are officially sanctioned by Money20/20, each element comes together to craft an amazing conference experience.
Throughout the event venue there were multiple photo opportunities, including a talking selfie wall that lit up, greeted conference goers, and invited them to get their picture taken. Then there was the connection wall, where attendees could scan their badges in conjunction with others, see their names projected onto a wall, and receive a Money20/20 branded coin that they could use to exchange in a merchandise store. There was also a video studio where the conference recorded a video of attendees in front of an animated “honey wall,” complete with a live beekeeper who danced at the end (yes, you kind of had to be there for that one).
Outside of the event, I enjoyed a morning of yoga sponsored by Mesa, Visa, and JP Morgan; a women in fintech happy hour event (complete with a Dolly Pardon impersonator) sponsored by Alloy; and a Halloween-themed happy hour with costumes and Beetlejuice selfies sponsored by SentiLink. Thanks to everyone for putting on such great events, and a huge thank you to Money20/20 for hosting me!
Digital relationship banking innovator Agent IQ has teamed up with digital banking solutions provider Narmi.
The partnership will integrate Agent IQ’s Lynq banking platform with Narmi’s digital banking solutions to enable community banks and credit unions to offer enhanced, more personalized services.
Headquartered in Austin, Texas, Agent IQ most recently demoed its technology at FinovateFall 2022 in New York.
“By integrating our Lynq relationship banking platform with Narmi’s digital banking solutions, we’re equipping banks and credit unions with tools to offer a vastly improved customer experience while also empowering them to be more efficient,” Agent IQ Co-founder and CEO Slaven Bilac said.
Agent IQ specializes in digital relationship banking, providing personalization and customer engagement solutions that help banks and credit unions enhance customer relationships. The firm’s Lynq platform empowers financial institutions to provide proactive guidance and real-time insights to customers by combining human emotion and empathy with the efficiency of computer intelligence and AI. Narmi offers a digital banking platform designed to help community banks and credit unions provide their customers and members with the same kind of digital experience as their larger rivals. Founded in 2016 and headquartered in New York, Narmi boasts that its customers have seen account growth of as much as 3x in less than 30 days and deposit growth of 4x in as little as 90 days.
In a statement, the companies highlighted two major benefits of the partnership. These benefits include seamless digital banking functionality with AI personalization to provide customers with tailored support and consistent engagement, whether opening an account or using mobile banking. Another benefit of the partnership is the ability to enhance customer relationships by allowing customers to make digital transactions while accessing personal guidance from a dedicated banker — all without having to travel to a branch.
“Agent IQ is a perfect complement to Narmi’s digital banking and account opening products,” Narmi SVP of Operations Angela Gentry Yue said. “Together, we’re providing financial institutions with a comprehensive suite of tools that significantly enhance digital engagement and operational efficiency. This collaboration marks a major advancement in our mission to drive innovation in the banking industry.”
Founded in 2015 and headquartered in Austin, Texas, Agent IQ made its Finovate debut at FinovateSpring 2019. The company most recently appeared before Finovate audiences at FinovateFall 2022 in New York. At the conference, Agent IQ demoed its Lynq platform that enables customers to choose a personal banker to help them manage all their financial needs across any digital channel. Lynq leverages built-in augmented intelligence to enable personal bankers to better engage customers and build relationships in the digital space that are as personalized as relationships in a physical branch.
Agent IQ began the year announcing an extension of its integration partnership with fellow Finovate alum Q2. The extension empowers Q2’s sales organization to resell Agent IQ to Q2’s bank and credit union customers. Also in January, the company announced a collaboration with another fellow Finovate alum, ebankIT. Here, the partnership combines ebankIT’s self-service digital channels with Agent IQ’s personal digital engagement platform. “We wish to redefine the digital banking experience, make it more human, and set new benchmarks for customer engagement and satisfaction,” ebankIT CEO Renato Oliveira said when the collaboration was announced.
More recently, Agent IQ made fintech headlines via its work with community banks and credit unions. In July, Stanford Federal Credit Union won the Q2 Innovation Award for the launch of its digital communications channel powered by Agent IQ. The following month, Agent IQ announced a new partnership with the Bank of Utah. The independent community bank leveraged Agent IQ’s Lynq digital engagement platform to launch its new chat solution.
Affirm is launching its services in the U.K., marking its third market entry following the U.S. and Canada.
U.K. shoppers can now access Affirm’s interest-free and fixed-interest BNPL options.
Affirm joins Klarna, Clearpay (Afterpay), and Laybuy as major BNPL players in the U.K. region.
California-based buy now, pay later (BNPL) player Affirmannounced this week that it is taking its services overseas. The company is now allowing U.K. consumers to use its pay-over-time payment tools to receive more flexible payment options.
The move marks Affirm’s third geography and will add to the company’s network of 300,000 merchants and 50 million end customers in the U.S. and Canada. At launch, U.K. shoppers will have access to Affirm’s interest-free payment option as well as its interest-bearing option that applies a fixed interest on purchases calculated on the original payment amount.
“Affirm was founded on the premise of putting people first and empowering consumers to take greater control over their finances. Building on our leadership in the U.S. and Canada, where we partner with top retailers and commerce platforms, we see a significant opportunity to extend our mission of building honest financial products to the U.K.,” said Affirm Founder and CEO Max Levchin. “We know that U.K. consumers are savvy shoppers who appreciate upfront, no-nonsense products. We look forward to offering them responsible credit options that truly put consumers first and working collaboratively with our U.K. partners to demonstrate how honest finance is good business.”
Affirm, which is regulated by the U.K. Financial Conduct Authority (FCA), is launching in partnership with payments processor Fexco and flight booking site Alternative Airlines, which will be the pilot merchant for Affirm’s BNPL tools. The company plans to announce additional U.K. and international brand partnerships in the future.
“There are many brilliant businesses in the U.K. that make this country what it is – and we can’t wait to start working with them,” said Affirm’s U.K. Country Manager Ruth Spratt. “The U.K.’s open economy, mature consumer market, and world-class talent makes it the perfect place for the next phase of Affirm’s journey. By entering the U.K. alongside a leading travel provider and platform partner, we’re able to expediently and deliberately begin growing Affirm’s U.K. network of consumers and merchants. We look forward to continuing to expand in the coming months.”
Spratt, who most recently served as U.K. Country Manager and Board Director for Affirm competitor Zip, will lead a team of more than 30 U.K. employees to expand Affirm’s merchant and channel partnerships. Spratt plans to onboard more staff by the end of the year, adding to Affirm’s base of 2,000 employees across the globe.
Founded in 2012, Affirm has facilitated more than 17 million purchases and counts brands including Amazon, Shopify, Walmart, and others among its merchant partners. In the past five years, the company has processed more than $75 billion. Affirm, which went public in 2021, currently trades on the NASDAQ under the ticker AFRM with a market capitalization of $13.8 billion.
Affirm’s entry into the U.K. BNPL market adds a competitive new player to the space, which already hosts established players including Klarna, Clearpay (Afterpay), and Laybuy. While Affirm will face strong competition from these brands, the company’s reputation for transparency may resonate with consumers, and will prove helpful as the FCA prepares to tighten regulatory oversight on BNPL providers by requiring affordability checks, advertising standards, and credit reporting.
It’s going to be hard to avoid the avalanche of news coverage of the U.S. Presidential election this week. But if you’re looking for a respite from the political headlines, Finovate’s Fintech Rundown is here for you! Be sure to check back all week long for the latest in fintech news.
Open banking
Financial API platform Salt Edgepartners with Central Bank of Bahrain to enhance corporate banking with open banking.
Tinkteams up with international money app Zing to launch automatic and one-tap top-ups leveraging open banking.
This week’s edition of Finovate Global features news from the fintech industry in Nigeria.
Africa’s newest fintech unicorn raises $110 million
African fintech Moniepoint is the continent’s latest fintech unicorn. The firm, Nigeria’s largest merchant acquirer, announced this week that it has raised $110 million in a funding round led by private equity firm Development Partners International (DPI). The round also featured participation from Google’s Africa Investment Fund, Verod Capital, and Lightrock. The infusion of capital boosts Moniepoint’s valuation above $1 billion, and is providing a positive light at a time when many fintechs in Africa are struggling to secure funding.
The funding takes Moniepoint’s total capital to more than $180 million.
Formerly known as TeamApt, the nine-year-old fintech will use the capital to accelerate the company’s growth across the continent. Moniepoint is building an all-in-one, seamlessly integrated platform for African businesses that features services including digital payments, banking, foreign exchange, credit, and business management tools. Speaking on behalf of DPI, Adefolarin Ogunsanya praised the company for its “combination of innovative technology, fast growth, and positive impact on the continent.”
CEO Tosin Eniolorunda co-founded the company in 2015. In the years since then, Moniepoint has grown into an all-in-one financial ecosystem that serves 10 million businesses and individuals. The company powers most of the point of sale transactions in Nigeria and, via its subsidiaries, processes $17 billion a month for its customers. Headquartered in London, Moniepoint maintains offices in Lagos, Nigeria; and Nairobi, Kenya, as well as in the U.S.
“This milestone validates the work we’ve put in for almost a decade,” the company noted in a post on its LinkedIn page. “And with this raise, we’ll be making financial happiness a reality for every African, everywhere. This is just Day One, and we’re excited for where this takes us.”
CB Insights also named Moniepoint to its 100 most promising startups roster for 2024. The Nigerian fintech is one of seven African startups to make this year’s list.
MTN Nigeria aims for higher quality mobile wallet users
There’s good news and bad news in the latest financial report from African telecommunications company MTN Nigeria. The bad news is that the company reported a significant after-tax loss of $312.7 million (₦514.9 billion), due largely to volatility in the currency market. MTN also noted that though active data users grew by more than 5% to 45.3 million, the company’s mobile money wallet business declined by more than 21%.
The good news? MTN’s fintech division grew revenues by 18%, with much of the gains coming from its mobile money service, MoMo. The decline in active mobile money wallets noted above was attributed in part to a shift in the company’s sales strategy to focus more on “high-quality wallet users” rather than just maximizing the number of users in general. MTN Nigeria also noted that its MoMo service has recently added functionality to support cross-border transactions.
“In the fintech business, we focused on executing our growth strategy, prioritizing increasing wallet quality, focusing on advanced services, and the MoMo PSB app to enhance the user experience and engagement,” MTN Nigeria CEO Karl Toriola explained. “We have introduced cross-border remittances with 13 fellow African countries to boost adoption and monetization. Taking advantage of their interoperability, we are now leveraging the existing network of agents and merchants … in the industry to bring our services closer to our customers.”
PalmPay wins recognition for financial inclusion
Lagos, Nigeria-based fintech platform PalmPay was recognized as the “Most Outstanding Fintech Driving Financial Inclusion” at the 2024 BrandCom Awards held late last month. Sponsored by Brand Communicator, the award acknowledges the fintech’s work in bridging financial gaps and promoting financial inclusion in Nigeria.
“At PalmPay, we believe financial inclusion is the foundation for economic empowerment, and we’re dedicated to ensuring that every Nigerian has access to secure, user-friendly, and reliable financial services,” PalmPay Head of Marketing and Communications, Hanson Femi said.
Founded in 2019, PalmPay has more than 35 million users. The company connects more than one million businesses via its mobile money agent and merchant network, and provides services ranging from instant transfers and billpay to its new USSD feature. This feature enables customers to perform a variety of banking transactions without needing internet connectivity by dialing *861# on their mobile phones.
“We aim to bridge the gap in digital access, and the introduction of our USSD service aligns with that mission,” PalmPay Managing Director for Nigeria, Chika Nwosu, said when the service was launched in September.
Here is our look at fintech innovation around the world.
Asia-Pacific
South Korean fintech unicorn, Viva Republica, which operates the mobile financial super app Toss, announced plans to debut in the U.S. market.
Singapore has established a “Global Finance & Technology Network” (GFTN) to support the region’s reputation as an international fintech hub.
Wise became the first non-bank operating in Japan to earn approval to join the country’s domestic payment network, Zegin.
Sub-Saharan Africa
Stanbic Bank Kenya, in partnership with Mastercard, has launched a pair of new credit cards designed to serve the institution’s affluent customers.
Nigeria-based fintech Moniepoint achieved unicorn status after raising $110 million in new funding.
Côte d’Ivoire-based investment platform Daba Finance won the Ecobank Fintech Challenge.
Central and Eastern Europe
Lithuanian identity verification and fraud prevention company iDenfy partnered with O2Factoring.
Erste Group teamed up with Neterium to help the firm bring its transaction screening solution to markets in Central and Eastern Europe.
Tech Times profiled Germany fintech billionaire and founder of Black Banx, Michael Gastauer.
