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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
WealthBlock offers a white label platform for private asset management firms and crowdfunding portals. The company’s technology streamlines investment presentation, investor onboarding and document e-sign, as well as investor reporting. The partnership will empower clients to build and launch customized digital journeys that will engage investors and boost conversions.
Praxent CEO and founder Tim Hamilton praised WealthBlock as an industry leader in the investor management technology space. “WealthBlock is powering the future of funding deals,” Hamilton said. “Together, we are creating and integrating bespoke, secure user experiences that drive revenue and growth for companies looking to raise capital.”
WealthBlock CEO Trilliam Jeong underscored the importance of self-service in the capital raising space, calling it critical to success. Additionally, Jeong credited Praxent’s experience in financial services – and with the company’s platform – for making Praxent “the ideal partner.” He added, “By joining forces, we enable clients to accelerate the secure launch of custom experiences that allow them to more effectively onboard and serve investors.”
Headquartered in Austin, Texas, Praxent helps financial services companies develop differentiated fintech solutions that yield quantifiable results. The company has assisted more than 400 organizations as they enhanced their customer relationships via a combination of human-centered design, front-end engineering, and product integration.
Founded in 2000, Praxent made its Finovate debut at our developers conference, FinDEVr, in 2021. In August of this year, the company announced partnerships with Insurance Systems Inc. and small business lender NEWITY. In September, Praxent introduced new Chief Revenue Officer Robin Smith. Smith previously served as Vice President of North America for Finovate alum Mambu.
U.S. Bank launched Avvance, a point-of-sale lending tool for merchants.
Avvance allows merchants to offer installment loans on purchases ranging from $300 to $25,000.
U.S. Bank also offers a consumer-facing BNPL tool, ExtendPay, which it launched in 2021.
U.S. Banklaunched an embedded point-of-sale lending solution this week. The new buy now, pay later (BNPL) tool, Avvance, helps businesses give shoppers options to finance their purchase during checkout after filling out a quick application.
Avvance is embedded into the checkout process and shows the buyer multiple personalized loan options, offering them the ability to pay over time. U.S. Bank backs the loans and doesn’t require the merchant to manage the payments after the sale is complete.
“Our point-of-sale lending product allows business owners the ability to offer affordable financing while they receive full payment at the time of sale,” said Executive Vice President of Buy Now, Pay Later and Point-of-Sale Lending at U.S. Bank and Elavon Mia Huntington. “U.S. Bank, the primary source of the consumer loans, manages all aspects from application to servicing, so business owners can focus on what they do best — running their business.”
Customers can use Avvance installment loans to finance purchases between $300 to $25,000. The financing terms range from 0% to 24.99% APR with repayment plans that range from three to 60 months. When a customer uses the tool to finance a purchase, U.S. Bank offers the merchant the full payment within 48 hours. While Avvance is free for merchants to offer, U.S. Bank charges a merchant discount rate fee for each Avvance loan that it processes.
Avvance’s benefits are similar to those of other BNPL tools on the market. It can encourage the customer to make a purchase they otherwise would not, increase their purchase amount, and help reduce cart abandonment. “With Avvance, business owners have the ability to attract new customers while increasing their buying power, resulting in increased sales,” Huntington explained.
Interestingly, U.S. Bank is marketing Avvance as a point-of-sale financing tool, rather than a BNPL tool. This may be because it wants to target an older generation than BNPL typically reaches. Avvance also differentiates itself from typical BNPL tools when it comes to the base purchase amount required. While customers must spend at least $300 with Avvance, many BNPL tools have no minimum purchase requirement.
Avvance isn’t U.S. Bank’s first BNPL tool. The bank launchedExtendPay in 2021– the height of fintech’s BNPL craze– to offer its credit card holders a way to split purchases over $100 into a series of fixed payments ranging from three to 24 months. U.S. Bank doesn’t charge interest on ExtendPay purchases, but it does charge a fixed monthly fee.
It’s no secret that we’re facing many challenges right now. Declining VC investment, rising interest rates, and the looming threat of a recession are all obviously significant obstacles that must be overcome, but we’re also seeing a surge of innovators tackling real-world challenges head on.
At FinovateFall, we’ve seen exciting automation and AI use cases, including generative AI! We also heard financial institutions talk about their digital transformation journey and how they’ve applied technology to improve their processes and enable their businesses to grow. Plus, we met with industry agnostic experts who inspired us to be better leaders and innovators and who helped us think about a future with AI and a future in the metaverse.
TodayPay, a new “refunds-as-a-service” startup, has launched out of stealth mode this week.
TodayPay is founded by former JP Morgan executive Jeremy Balkin.
TodayPay’s technology decouples the refund from the return logistics to pay customers their refund instantly in their TodayPay mobile wallet.
Jeremy Balkin is leveraging his expertise in the financial services industry to launch a new fintech. The former JP Morgan executive announced this week that TodayPay, what he is calling a “refunds-as-a-service startup,” has exited stealth mode.
At its core, TodayPay helps merchants give their customers instant refunds when they initiate a return. The service also offers the customer multiple options of how they want to receive the funds instead of simply defaulting back to the original payment method.
“I built TodayPay because I’ve seen firsthand how the speed of a payment can change somebody’s life,” said TodayPay Founder Balkin. “There’s over a trillion dollars of value exchanged every year in the form of refunds, yet there’s been almost zero innovation improving the refund customer experience.”
TodayPay offers four main products:
Better Refund, an API that decouples the refund from the return logistics to pay customers their refund instantly, while allowing merchants seven days to pay.
Refund Now Pay Later, which provides merchants with a pre-qualified credit line of up to $300,000 with up to 90 days to repay the funds. TodayPay takes on the risk of the return so that the merchant can focus on their working capital.
instarefund, a consumer facing widget embedded into a merchant’s existing return flow that helps them control the customer experience.
Management Portal, a merchant-facing dashboard to help businesses manage all transactions in one place and automate refunds and returns management.
These products may improve the returns experience for merchants, however, TodayPay adds a bit more friction onto the customer experience. That’s because customers receive their refund payment in a TodayPay digital wallet. While the digital wallet is already set up via the customer’s phone number, they still have to log into their TodayPay digital wallet to choose how they’d like to redeem their refund– into their bank account, onto their debit card, or via a gift card.
While TodayPay was in stealth mode, it built relationships to be integrated into Shopify, BigCommerce, Woo, and Magento. The company is backed by Soma Capital, and is working with Astra, Marqeta, and Visa for the digital wallet piece.
Featurespace unveiled its generative AI-powered, Large Transaction Model (LTM), TallierLTM, this week.
The technology uncovers hidden transactional patterns typically undetected by current methods that may be indicative of criminal activity.
Featurespace made its Finovate debut in 2016, appearing at both FinovateEurope and FinovateFall that year.
Fraud and financial crime prevention company Featurespaceunveiled its Large Transaction Model (LTM), TallierLTM, this week. A foundational technology for payments in specific and the financial services industry in general, TallierLTM is a large-scale, self-supervised, and pre-trained model built to power the next generation of AI apps to protect consumers from financial crime.
The technology marks the first time financial professionals in the fraud fighting space have been able to leverage a generative Large Transaction Model. Featurespace noted in a statement that TallierLTM has provided improvements of as much as 71% in fraud value detection compared to the industry standard.
“What OpenAI’s LLMs have done for language, TallierLTM will do for payments,” Featurespace founder David Excell said. “There is widespread concern about how deep-fakes and generative AI have been used to deceive consumers and our financial systems. We plan to reverse this trend by utilizing the power of generative AI algorithms to create solutions that protect consumers and make the world a safer place to transact.”
Connecting to FIs via its enbedding API, TallierLTM analyzes billions of transactions, identifying hidden transactional patterns that current methods often cannot detect. The technology’s insights are based on time sequencing, discovering unusual spending patterns over a short period of time, for example, or between a consumer and a merchant. This increased ability to distinguish legitimate activity from potentially criminal behavior will not only enable data scientists to improve their model’s performance faster, Featurespace Chief Innovation Officer Dr. David Sutton said. It will also allow institutions to “realize the value of machine learning investments more quickly.”
“We know that smarter technology helps financial institutions better understand their consumers,” Sutton added. “We have taken this to the next level by pairing cutting-edge generative AI algorithms with huge volumes of data, enabling a machine to efficiently comprehend the relationships between different customer transactions.”
Founded in 2016 and headquartered in Cambridge, U.K., Featurespace made its Finovate debut in 2016, appearing at both FinovateEurope and FinovateFall. An innovator in adaptive behavioral analytics and automated deep behavioral networks for risk management, Featurespace serves more than 80 direct customers and 200,000 institutions. In recent months, the company announced partnerships with digital payment platform Clip and fellow Finovate alum Zeta. In August, Featurespace launched its ARIC Scam Detect solution to help protect financial services companies and their customers from scams – especially Authorized Push Payment (APP) scams – in real-time.
“As scammers become increasingly sophisticated in their tactics, with the use of Generative AI and machine learning, FIs need an adaptive solution that can protect from changing scam types in real time and monitor both inbound and outbound payments,” company Chief Product Officer Pat Hinchin said.
Featurespace has raised nearly $108 million in funding from investors including Chrysalis Investments, MissionOG, and Insight Partners.
Swiss retailer/wholesaler Coop has turned to embedded finance company additiv to launch its new superapp, Coop Finance+.
Coop Finance will go live initially with banking services, payments, and pension solutions.
Headquartered in Switzerland, additiv most recently demoed its technology at FinovateAsia in 2017.
One of the largest retailer/wholesaler companies in Switzerland, Coop, has turned to embedded finance company additiv to power the launch of its new app, Coop Finance+.
A financial services superapp, Coop Finance+ initially will go live with banking services, payments, and pension solutions. Hypothekarbank Lenzburg will power banking services. Vanguard, OLZ, Liberty Vorsorge and Glarner Kantonalbank will support the app’s pension solutions. App users can open accounts with debit cards, make online payments, and invest in Pillar 3a retirement programs.
“At additiv, we believe that embedding financial products into everyday consumer channels will help improve convenience and financial inclusion,” additiv founder Michael Stemmle said. Company CEO Nils Frowein, who joined additiv in June, praised the new offering as a “transformative project” that will have a “profound impact on the user experience of Coop customers.”
Coop Finance+ offers competitive terms, above-average interest rates on retirement accounts, and loyalty benefits. Additionally, the superapp provides access to free cash withdrawals at all 1,000 Coop supermarkets and Coop City warehouses. The launch of Coop Finance+ makes Coop the largest provider of free cash withdrawals in Switzerland.
“At Coop, we are committed to providing our customers with digital services that are tailored to their needs,” Coop Head of Digital/Customer Thomas Schwetje said. “With Coop Finance+, we are expanding this strategy to offer straightforward and easily accessible account and payment solutions, household budget management, and pension solutions.”
A Finovate alum since 2013, additiv most recently demoed its technology at FinovateAsia 2017 in Hong Kong. In the years since, additiv has grown from a software development firm into a major digital investment and financial solutions platform and finance-as-a-service provider. A leader in orchestrated finance, additiv has offices in Zurich, Frankfurt, Dubai, and Singapore and 300 employees worldwide.
Earlier this month, additiv announced a strategic partnership with SELISE. The collaboration will enable additiv to leverage the company’s expertise in software management to enhance its wealth platform. In June, additiv was named a leading AI innovator within AI Fintech100’s 2023 roster.
I’ve always loved following innovations in the payments space. It is the one fintech sub-sector that touches everyone– regardless of net worth, social standing, or geography. And when it comes to payments, there is plenty of room for disruption, especially in payroll.
In this month’s new startup showcase, I’m taking a closer look into Warp, which was launched earlier this year by Ayush Sharma. At its core, Warp is seeking to help founders run their startups by offering them a way to outsource payroll operations– and the headaches that go along with payments and tax compliance.
At the root of the problem Warp is trying to solve is the wide variety of tax laws, both across the globe and within the U.S. These laws make it difficult for founders to navigate payroll for their remote workforce, especially when employees are located across multiple U.S. states or international boundaries. Because each region has different tax laws, founders can spend hours navigating poorly designed government websites to ensure they are complying with local laws.
A 2023 Y Combinator alum, Warp currently offers full-service payroll for U.S. employees and files and pays all federal, state, and local taxes. The company also helps startups pay contract workers and generates 1099 end-of-year paperwork. For domestic payouts, Warp automates payroll registrations and monitors for compliance. Companies that need to send payment across international borders can use Warp to pay contractors in more than 150 countries, with tools that generate compliant contract agreements in seconds.
Beyond payments, the New York-based company even does some light lifting when it comes to HR tasks. The company’s technology provides healthcare options with automated payroll deductions, generates offer letters, onboards new employees, approves invoices and reimbursements, and helps startups track PTO and time submissions.
Warp offers three pricing options from $49 per month (plus $20 per person) to $99 per month (plus $35 per person). Among the company’s competitors are Gusto, Rippling, and Deel.
Warp has received a total of $2.7 million in funding. The company received $500k from Y Combinator and $2.2 million from Abstract Ventures, HOF Capital, Shrug Capital, and others.
Marqeta launched a new credit card issuing platform to help brands offer embedded credit programs.
Using the new tool, fintechs and non-financial services companies can launch both consumer and commercial credit programs.
Marqeta’s new card program will allow brands to own the entire customer experience without having to send the customer to a bank website to access card information.
Card issuer Marqetaunveiled its new credit card issuing platform today. The new offering serves as a one-stop shop to help companies launch embedded card programs for both consumer and commercial users.
Marqeta’s new credit platform helps brands promote customer loyalty by enabling personalized rewards and can support any card type and any format. According to Marqeta CEO Simon Khalaf, the new platform will help brands “reimagine what a credit card can be” and engage with consumers “in a whole new way.”
As part of that reimagining, Marqeta’s new platform serves as a single location where fintechs and non-financial services companies can build a credit product that suits their consumers’ unique needs and embed the experiences within their existing app. Specifically, brands can own the entire customer experience and won’t need to send cardholders to a bank’s website to access card information.
The credit platform also provides a rewards engine that helps brands build reward programs that adapt to cardholder needs and preference. Additionally, Marqeta offers brands access to real-time customer data to help further customize cardholder products and– for commercial cardholders– provides a range of flexible funding models such as Net 30 Charge Cards, Receivables Purchase, and Revolving Credit.
“The possibility is huge,” Khalaf added, “but the incumbent solutions are simply not giving consumers what they need. We want our credit card platform to completely change the consumer experience and the brand loyalty equation.”
Today’s development comes courtesy of Marqeta’s January 2023 acquisition of Power Finance for $275 million. Power Finance was founded in 2021 to offer brands a credit card program management service. Power Finance’s platform allowed companies to outsource credit card management, customer experience, application decisioning, transaction processing, and more.
Founded in 2010, Marqeta enables clients to manage their own card programs and banking tools. The company offers configurable and flexible payment tools and customizes payment cards for their end customers. Marqeta is a publicly traded company listed on the NASDAQ under the ticker MQ. The company has a market capitalization of $2.83 billion.
Embedded finance company Finotta has teamed up with banking software provider ebankIT.
The partnership will integrate Finotta’s Personified Personalized Financial Guidance platform with ebankIT’s digital banking solution.
Both Finotta and ebankIT are Finovate alums. ebankIT most recently demoed its technology at FinovateEurope in March. Finotta made its Finovate debut at FinovateFall 2022.
Embedded finance company Finotta has forged a new partnership with omnichannel banking software firm ebankIT. The partnership will integrate Finotta’s Personified platform with ebankIT’s digital banking solution in order to deliver better financial wellness tools and Personlized Financial Guidance (PFG) to customers worldwide.
Finotta’s Personified platform provides an automated and personalized mobile banking experience. Personified includes a financial coach, a financial health leveling system, automated financial guidance, predictive product referrals, digitized relationship building, the ability to make internal and external transfers, and more. The suite of solutions helps financial institutions address customer needs and respond to them from within the digital banking platform.
Personal finance is often treated as a local concern. However, Finotta founder and CEO Parker Graham put this week’s integration in an international context. “Financial wellness is a global imperative that transcends borders, affecting individuals and communities everywhere,” Graham said. “In partnering with ebankIT, we’re not just future-proofing financial institutions, we’re elevating the financial well-being of users and underscoring innovation as the bedrock of customer loyalty.”
ebankIT CEO Renato Oliveira said that delivering “humanized, personalized, and accessible digital experiences” is a priority for ebankIT “from day one.” He added, “At ebankIT, we recognize that the future of digital banking hinges on seamless omnichannel capabilities and enriched user experiences.” Oliveira called the partnership with Finotta “an extension of that commitment.”
Founded in 2014, ebankIT is headquartered in Portugal. The company has been a Finovate alum since winning Best of Show in its Finovate debut at FinovateEurope 2015. The company most recently demoed its technology at FinovateEurope earlier this year. At the conference, ebankIT introduced a new range of features on its digital banking platform. Among these features was a tool to help banks and credit unions better anticipate customer needs.
Over the summer, ebankIT announced a strategic partnership with digital transformation and cybersecurity consultancy, Online Business Systems. More recently, the company teamed up with Home Trust. Via the partnership, ebankIT helped the Canada-based mortgage broker launch its new digital banking platform.
Founded in 2018, Finotta is a newcomer to the Finovate stage. The Overland Park, Kansas-based company made its debut last year at FinovateFall 2022. Finotta announced in August that its Personified platform increased user engagement to an average of 13 minutes per month. Graham credited the difference between Finotta’s Personalized Financial Guidance platform and traditional personal finance management solutions.
“To better capitalize on existing digital banking investments and increase share of wallet all while lowering acquisition costs, banks need to shift their focus away from PFMs and instead embrace Personalized Financial Guidance,” Graham said. “By focusing on guiding customers through their financial journey, they increase the amount of time users spend in the app.”
The U.S. Consumer Financial Protection Bureau (CFPB) took a step in the direction of formalizing open banking regulation today. The agency proposed a rule that would shift the financial services industry toward open banking, giving consumers control over their financial data.
The rule proposed today marks the CFPB’s first proposal to implement Section 1033 of the Consumer Financial Protection Act. Under Section 1033, the CFPB is charged with implementing personal financial data sharing standards and protections.
For the 100 million consumers that have authorized a third party to access their account data, this is welcome news. The rule would require banks to share consumer data (with the consumer’s permission, of course) with third parties in order to promote competition. It would also prevent companies from misusing or wrongfully monetizing consumers’ personal financial data.
“With the right consumer protections in place, a shift toward open and decentralized banking can supercharge competition, improve financial products and services, and discourage junk fees,” said CFPB Director Rohit Chopra. “Today, we are proposing a rule to give consumers the power to walk away from bad service and choose the financial institutions that offer the best products and prices.”
The rule would also benefit the financial services industry as a whole by providing detailed technical standards on how consumer data sharing should work. The standards will contain safeguards to ensure industry standards are fair, open, and inclusive.
“Today, we’re celebrating a moment that our members – and millions of consumers across the country – have been waiting for: the CFPB’s release of its proposed rule creating a legally binding consumer financial data right,” said Financial Data and Technology Association Executive Director Steve Boms. “We strongly support the proposed rule, which will put consumers in full control of their financial data and empower them to choose the financial provider best suited to meet their unique needs. The proposed rule will create more competition and choice in the financial services marketplace, ultimately leading to better consumer outcomes.”
Not everyone in the industry sees the Section 1033 rule making proposal in a positive light, however. A handful of large incumbent institutions have long been of the opinion that their consumers’ financial data belongs to them and should not be shared with third parties. When banks offer third parties access to consumer data, they see it as losing out to competition.
The move comes two years after the CFPB first touched on the topic of open banking by issuing an advanced notice of proposed rule making to create formal regulation around open banking in the U.S. And while it is exciting to see the CFPB move in the direction of open banking, the formalization of rules around the topic becomes technical and complicated, given the range in size of the players involved. The agency is currently accepting comments on its proposal until December 29, 2023.
Philippines-based digital bank Tonik has entered the insurance business. The neobank announced a new strategic partnership this week with life insurance company Sun Life Grepa Financial, Inc. (Sun Life Grepa).
The partnership will enable Tonik to offer its customers Payhinga, a credit life and disability insurance product. Payhinga gives policyholders access to life and disability insurance with coverage of up to 120% of the loan amount. Further, policyholders can use a two-month payment holiday to reschedule upcoming loan payments in the event of financial difficulty.
“The partnership with Sun Life Grepa will significantly expand our suite of products, and insurance is a highly sought-after addition our customers have been requesting,” Tonik Country President Long Pineda said.
The Philippines’ first, digital-only neobank, Tonik offers loan, deposit, and payment products to consumers via its digital banking platform. The bank teamed up with FC Home Center, launching its Shop Installment Loan with the retailer in August. In June, Tonik announced that it had reached the one million customer milestone. Greg Krasnov (CEO) founded Tonik in 2020.
Speaking of digital banks based in the Philippines, UNO Digital Bank is teaming up with Collabera Digital. A digital engineering services provider, Collabera Digital will help the bank develop and integrate a mini app within superapp GCash.
Collabera Digital provided the strategy to address key issues such as AML and KYC, and built an integrated API platform. The leading superapp in the Philippines, GCash provides a wide range of financial services including money transfer, billpay, savings, investments, insurance, lending, and more. UNO Digital Bank’s integration into GCash will boost access to financial services to individuals across the socio-economic spectrum. The integration also supports the growth of the digital economy via services like mobile banking and digital wallets.
“Our partnership with GCash is significant in scaling and increasing our customer reach,” founder and CEO of UNO Digital Bank Manish Bhai said. “As a greenfield bank, built independently of a larger traditional institution, we have to be innovative in identifying opportunities to grow and expand. GCash, with their 90+ million users and active thrust towards financial inclusion, is a great partner leading to a win-win proposition for both the entities.”
UNO Digital Bank was founded in 2021 and is headquartered in Taguig, a city in the Manila metropolitan area. The institution had total assets of $29 million (PHP 1.78 billion) as of end of year 2022.
What are fintechs in the Philippines doing for small businesses? Merchant fintech platform yufinannounced a series of partnerships this week designed to bring new services to Philippines-based merchants. The new additions to yufin’s partnership ecosystem include wholesaler Lots for Less, delivery firm Transportify, and streaming content company Vivamax.
Shubhrendu Khoche, President and co-founder of yufin Philippines, noted that the new partnerships will drive greater digital adoption by businesses throughout the value chain. “As the financial growth engine for small merchants, these new partnerships will create more reasons for digital payment for our small merchants, their shoppers, and suppliers,” Khoche explained.
Founded in 2021, yufin aims to raise the income of 10 million households at least by 50% in the next five years. The company’s partnership ecosystem helps turn small, corner shops into preferred banking and credit hubs for their customers. With a goal of partnering rather than competing with local banks, yufin offers assisted digital financial services that enable underserved communities to leverage technology to improve financial outcomes.
Here is our look at fintech innovation around the world.
Sub-Saharan Africa
South Africa’s Lipa Payments secured full SDK certification for Tap to Phone from both Visa and Mastercard.
Kenyan fintech and mobility solutions company Data Integrated won approval to operate as a Payment Service Provider from the country’s central bank.
Stitch, a business payments company based in South Africa, raised $25 million in Series A funding.
Central and Eastern Europe
German B2B Buy Now Pay Later payments provider Mondu registered with the Financial Conduct Authority (FCA).
Polish fintech Verestro integrated the Quicko Wallet money transfer service within the Slack application.
Cloover, a climate-based fintech based in Germany, raised €7 million in pre-seed funding.
Middle East and Northern Africa
ACI Worldwideforged a partnership with MENA-based payments and BaaS enabler NymCard.
Payments infrastructure company Finzly secured $10 million in Series A funding this week.
The round was led by TZP Growth Equity. Finzly will use the capital to accelerate expansion.
Finzly won Best of Show for its demos at FinovateWest and FinovateFall in 2020.
Payments infrastructure innovator Finzly has raised $10 million in funding. The Series A round was led by TZP Growth Equity. Finzly, which won Best of Show at FinovateWest and FinovateFall in 2020, will use the investment to accelerate expansion.
“Throughout Finzly’s history, we have carefully invested in disciplined and organic future growth by developing products and solutions that deliver value to our customers by simplifying their operations,” Finzly founder and CEO Booshan Rengachari explained. “This capital raise will enable us to further invest in our product roadmap built around the theme of providing real-time financial services demanded by today’s real-time economy, scaling our product delivery to maintain our high customer satisfaction rate.”
Finzly made its Finovate debut in 2019 and returned to the Finovate stage the following year. The company won Best of Show in the spring of 2020 and again in the fall. Finzly’s technology connects FIs with customers through a modern, digital banking experience and an efficient, real-time payments hub. The company’s “payments core” is a single platform that consolidates all payment rails, simplifying back-office operations and the customer journey. Finzly’s high automation rates enable banks to reduce operating expenses and offer friction-free payments. The company was among the first to offer an API connection to FedNow, the Federal Reserve’s new instant payment service.
Shamit Mehta, TZP’s lead partner on the investment called Finzly “a catalyst in the transition towards more agile and customer-centric banking experiences.” Further, Mehta added that Finzly was “well-positioned to drive significant advancements in how banking and financial services operate and will become a category-defining company.” As part of the funding, Mehta will join Finzly’s board of directors.
Finzly’s investment news comes in the wake of the company’s latest partnership. Metropolitan Commercial Bank, a New York-based financial institution with assets of more than $6 billion, turned to Finzly to enhance its payment operations for ACH, Fedwire, and FedNow. Earlier this year, banking platform Mode Eleven partnered with Finzly to transform its wire and ACH operations.
Headquartered in Charlotte, North Carolina, Finzly was founded in 2012.
