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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
StockRepublic has raised $2.81 million (SEK 30 million).
The round was led by Avanza subsidiary Placera Media, which contributed $1.4 million (SEK 15 million).
The relationship between Placera Media and StockRepublic began at the start of this year when StockRepublic helped Placera Media operate and modernize its stock forum.
B2B social trading platform StockRepublic has raised $2.81 million (SEK 30 million) this week. The new investment is more than double the company’s existing funding and brings its total to $5.2 million (SEK 55.6 million).
Leading the round is Avanza’s subsidiary Placera Media, which contributed $1.4 million (SEK 15 million). The remaining $1.4 million (SEK 15 million) comes from existing investors and business angels.
Founded in 1999, Avanza is one of Sweden’s largest financial websites. The firm’s media subsidiary, Placera Media, covers news and updates on equities, funds, and savings. The company publishes articles, produces podcasts, and launches several TV segments each week.
StockRepublic’s partnership with Placera Media began earlier this year. The social trading company operated and modernized Placera Media’s stock forum. Today’s strategic partnership between the two will help StockRepublic ramp up hiring, further develop its service offering, and continue its expansion.
“We are very proud to have Sweden’s leading savings platform on board, both as customers and investors,” said StockRepublic CEO Fabian Grapengiesser. “StockRepublic has previously raised capital from customers, so it is a proven and successful model for us. This collaboration brings Avanza closer to us in a very positive way and allows us to continue to develop Avanza’s platform with exciting new services.”
Sweden-based StockRepublic was founded in 2018 and demoed its technology at FinovateEurope earlier this year.. The company’s platform offers customized apps and APIs to help banks and financial services providers increase customer engagement. Specifically, StockRepublic’s technology allows investors to leverage the experience and knowledge of other investors and, in turn, share their success. The company’s platform is currently available in six markets. Commerzbank is among its clients.
London-based open payments gateway Volt has raised $60 million in Series B funding.
IVP led the round, which featured participation from both new and existing investors.
Volt will use the capital to power its expansion into the Asia Pacific region, the Americas, and Australia later this year.
Volt, an open payments gateway based in London, has raised $60 million in Series B funding. IVP led the round, which also featured participation from CommerzVentures, EQT Ventures, Augmentum Fintech, and Fuel Ventures. The investment comes as the company announced plans for an expansion into the Asia Pacific region and the Americas.
The investment also takes Volt’s total equity funding to more than $87 million. New valuation information was not immediately available.
Founded in 2019, Volt currently operates in Europe, the U.K., and Brazil. The company connects more than 5,000 banks, bringing together a generation of account-to-account (A2A) payment infrastructure to a single point of access. Volt’s aggregation model offers a wide-ranging open payments reach and maximizes the speed, security, and resilience of transactions. Volt’s product suite includes Checkout, a unified ommichannel commerce experience; Circuit Breaker, a dedicated fraud prevention solution, Fuzebox, a real-time payments control center for notifications and reporting; Connect, a cash cycle management solution and real-time orchestration engine; Verify, an account ownership authentication tool; and Transformer, a solution to help consumers transition to account-to-account payments.
IVP Partner Angela Zhu praised Volt as “well positioned to redefine the future of payments on a global scale.” Zhu explained: “as over 70 countries, including the U.S., transition to RTP systems, merchants are experiencing the immense benefits of instant, secure, and cost-effective A2A payments.”
In addition to its expansion plans for Asia Pacific and the Americas, Volt is also planning to enter the Australian market later this year. The company will also use the new capital to build out its acceptance network and global reach, as well as enhance its product suite to include cash management. Volt also announced that it will “significantly” bolster its product and engineering teams.
“Testament to our progress and our vision for real-time payments everywhere, we’re thrilled to be working with our new partners at IVP, joining their portfolio of leading global brands” Volt CEO Tom Greenwood said. “We’re staying focused, and humble, as we embark on this next chapter.”
Financial advisor, author, and CNBC commentator Josh Brown raised a few eyebrows this week when he told viewers that he thought that cryptocurrencies were entering a new phase, a phase that could spell the end of the crypto winter.
“This week, I think, with all of these new developments, really forces you to look back and say, ‘What’s really going on here? Why are these people running into a burning building” Brown asked. He referred to the passion for cryptocurrencies as “unkillable.”
Is Brown right? Let’s take a look at the latest round of reasons why the so-called crypto winter could turn out to deliver a milder season than many suspect.
Bitcoin breaks $30k
Prices for the leading cryptocurrency have been in a bear market since at least the fall of 2021 – though cryptoholders have been experiencing more than a little investment indigestion since the spring of that year. And while BTC has much more to go before it nears its old highs north of $60,000, the cryptocurrency has been on a tear since putting in a low in November 2022 just under $18,000. As of June 21st – the longest day of the year – BTC is up more than 90% from its November low. Ethereum, the other most-widely traded cryptocurrency has also performed well in 2023: ETC is up more than 56% year to date.
Many observers are pointing out that much of the velocity of the moves in these leading cryptocurrencies is due to traders who are now covering their earlier – profitable – bets against the assets. Nevertheless, market turnarounds are often initiated not by new participants coming off the sidelines, but by those already in the game deciding to change direction. And sometimes that’s all a new bull market needs to get going.
The news that some of the heaviest hitters in the exchange-traded fund business have expressed interest in bringing BTC to the ETF party is as strong an indication as any that crypto’s fortunes in the near-term may be brightening.
Last week we learned that BlackRock, a major, $9 trillion asset manager, is seeking to launch a spot bitcoin ETF – the iShares Bitcoin Trust – and has filed paperwork with the Securities and Exchange Commission (SEC) to do so. Investment management firm Invesco – which previously sought to launch a bitcoin futures ETF in 2021 but was beat to the market by ProShares – is back for a second bite of the apple. The company has teamed up with Galaxy Digital to apply for a spot bitcoin ETF – the Invesco Galaxy Bitcoin ETF. And lastly, WisdomTree has applied for approval to launch its WisdomTree Bitcoin Trust on the CBOE BZX Exchange.
The stated objectives for the funds vary. WisdomTree highlighted the value of providing investors with exposure to the price of Bitcoin in traditional investment accounts. Invesco and BlackRock both noted that a Bitcoin ETF would serve as a safer alternative for would-be investors leery of cryptocurrency brokerages and exchanges in the wake of the FTX and related crypto-scandals.
New crypto exchange EDX launches
The launch of a new crypto exchange may not seem like big news. But given the pessimism surrounding the industry (“crypto winter” anyone?), it is especially noteworthy that entrepreneurs in the crypto space continue to forge ahead.
New Jersey-based EDX Markets launched its digital asset market this week. The digital asset marketplace provides investors with a trusted, efficient, and liquidy cryptocurrency trading environment. EDX offers competitive quotes and a non-custodial model designed to manage potential conflicts of interest. The company also provides a retail-only quote for crypto, enabling investors and traders to take advantage of better pricing for retail-originated orders. Participants can trade Bitcoin, Ethereum, Litecoin, and Bitcoin Cash on the platform.
The launch of EDX comes as the company secures new funding and additional strategic investors. The amount of the funding was not disclosed. The company did say that the capital will help EDX further develop its trading platform.
“We are committed to bringing the best of traditional finance to cryptocurrency markets, with an infrastructure built by market experts to embed key institutional best practices,” EDX CEO Jamil Nazarali said.
Deustche Bank applies for digital asset custody license in Germany
It’s no secret that cryptocurrencies are feeling more love outside the United States than they are inside the country. Another example of this comes from Germany as we learn this week that Deutsche Bank is seeking a digital asset license. The goal of the country’s largest bank is to leverage digital assets to expand its revenue streams, according to reporting in Bloomberg.
Apparently, Deutsche Bank’s announcement is the latest in a series of slow, cautious steps toward embracing digital assets. The firm’s corporate banking division has been considering digital asset-related services as an option for the past few years. But no firm timeline had ever been offered. This week, we have a destination, if not an itinerary. The head of the bank’s commercial banking unit David Lynne confirmed that the financial institution is building a “digital assets and custody business” and has applied to Germany’s Federal Financial Supervisory Authority (BaFin) in order to receive license to do so.
American crackdown: darkest before dawn?
It may be overly contrarian to suggest that some of the worst news for crypto’s present in recent weeks and months might also be some of the best news from crypto’s future. Many crypto backers lament the SEC’s aggressive policing of Coinbase and the growing share of crypto that is just Bitcoin. But it is possible that this is just the long, arduous process toward eventual regulation. This may mean, at least initially, a time for better, fewer digital assets and better, fewer crypto-related businesses. And while other regions than the U.S. are presently showing more enthusiasm and support for crypto, as with other financial innovations like open banking and instant payments, I’m convinced that once crypto does finally get moving again, the U.S., in its own way, will not hesitate to climb on board.
Digital banking solutions provider Tyfone has inked a strategic partnership with Star One Credit Union.
Tyfone will help Star One CU implement its instant payments solution.
Headquartered in Portland, Oregon, Tyfone made its Finovate debut in 2008.
Digital banking solutions provider Tyfone has forged a strategic partnership with Silicon Valley-based Star One Credit Union. Tyfone, a Finovate alum since 2008, will help the FedNow certified-credit union implement its new, instant payments solution.
“Today’s consumers and businesses not only want quick, simple, and instant ways to facilitate payments, but they expect a unified, consistent user experience,” Tyfone CEO Dr. Siva Narendra said. “Our partnership with Star One Credit Union allows us to build a solution that aligns with financial institutions’ unique needs and ensures greater accessibility. Our goal is to help scale this service and unlock the tremendous potential instant payments offers financial institutions and account holders.”
Tyfone’s technology helps financial institutions regardless of size connect directly to the FedNow Service for credit transfer send and receive message sets. The new solution developed by Star One Credit Union, in partnership with Tyfone, will integrate the core processing systems of FIs and leverage Tyfone’s open APIs to enable connectivity to payment originators and digital banking providers. The solution, combined with participation in the FedNow Service, will empower account holders to send and receive payments any time, any where, and have full and immediate access to transferred funds.
“Together with Tyfone, we are advancing instant payments adoption in the United States and helping to fulfill the end-to-end instant payment ecosystem,” Star One Credit Union VP of Remote Services Minai Gupta said. “We look forward to working with Tyfone’s team to create a solution for financial institutions of all sizes, regardless of what payment providers or digital banking platform they use.”
To date, more than 100 community financial institutions in the U.S. have adopted Tyfone’s platform and technology. For its part, Star One Credit Union is one of the largest FIs in Silicon Valley with more than 123,000 members. Launched more than 60 years ago, Star One CU today has assets of more than $10.2 billion. The financial institution offers membership to employees of some of Silicon Valley’s most notable companies such as Lockheed Martin and Juniper Networks.
Founded in 2004, Tyfone made its Finovate debut in 2008. This April, the company announced a “significant investment” from Demopolis Equity Partners and a merger with digital banking provider Cubus Solutions. In a statement, Tyfone’s Narendra discussed the transaction in the context of enabling financial institutions of different sizes to provide their customers with equally compelling digital experiences.
“Today success in digital banking – in fact, success in any financial technology – is all about engaged digital experiences and the ability to scale,” Narendra said. “That means scaling up to power digital growth for larger institutions and scaling down to facilitate the smaller one stay relevant.”
Baker Hill is being acquired by private equity firm Flexpoint Ford.
Financial terms of the deal were not disclosed.
Company President and CEO John M. Deignan will continue to lead the business.
Lending-as-a-Service provider Baker Hill has agreed to be acquired by private equity firm Flexpoint Ford. Riverside-owned Baker Hill has not released financial terms of the deal, which is expected to close upon the receipt of regulatory approvals.
Baker Hill will tap into the Flexpoint team’s experience and fintech knowledge and will be able to leverage the private equity firm’s capital to fund product developments and acquisitions. The Indiana-based company will also be able to benefit from Flexpoint’s insight into the needs of bank and credit union clients. As Vilas Nair, Flexpoint Principal explained, the firm can “support Baker Hill’s mission of helping banks and credit unions foster more profitable relationships with their customers and drive economic development in their communities.”
“Baker Hill has a long-standing reputation for being a trusted provider of differentiated loan origination and risk management software, which has helped fuel our consistent growth each year. This ongoing market validation is a source of inspiration for our team and by partnering with Flexpoint we can continue to elevate the lending experience for our bank and credit union clients,” said Baker Hill President and CEO John M. Deignan. “Our team is confident this partnership will provide new opportunities to deliver more value for our clients and the communities they serve.”
Deignan, along with the company’s existing leadership team, will continue to lead the business and remain shareholders.
With $7.5 billion of regulatory assets under management, Flexpoint Ford’s portfolio is comprised of companies in the financial services and healthcare industries. The firm has invested in more than 40 companies since 2005.
Founded in 1983, Baker Hill offers banks and credit unions a SaaS solution for commercial, small business, and consumer loan origination, as well as risk management tools. The company, which most recently demoed at FinovateFall 2021, has received numerous awards in recent years. The IndyStar selected it as a top workplace in Central Indiana, Aite-Novarica recognized Baker Hill NextGen as best in class product, and, most recently, the company received a Product Innovation of the Year Mira Award nomination.
Jordan Ahli Bank has tapped Thought Machine to launch its new social payments app.
Qawn, the new app, is built on Thought Machine’s Vault Core cloud-native core banking platform.
Using Vault Core’s Universal Product Engine, Jordan Ahli Bank was able to tailor the new app to its diverse customer base.
Core banking technology provider Thought Machine is helping Jordan Ahli Bank launch Qawn, its new social payments app.
Powering Qawn is Thought Machine’s Vault Core cloud-native core banking platform. The banking technology provider’s Universal Product Engine enabled Jordan Ahli Bank to customize the tool based on its customers’ needs.
“Our aim is to help people prosper by creating a social financial experience that addresses real-life problems with cutting-edge technology,” said Jordan Ahli Bank Chief Innovation Officer Nidal Khalifeh. “Money is inherently social, and we want to reinvent digital money with a social aspect. Our app is designed to be secure, user-friendly, and to offer guidance with a focus on technology.”
With Qawn, Jordan Ahli Bank is helping a diverse group of users to send and receive money, request payments through chat, or scan a QR code for hassle-free money management. The app, which supports both Arabic and English languages, is also aimed at commercial banking users and can function as a payment acceptance tool.
Thought Machine was founded in 2014 and has since raised $563 million in funding. The U.K.-based company offers two main products: Vault Core, a tool that leverages smart contracts to help organizations design and build new financial products; and Vault Payments, a payments processing platform that enables banks to run all payment types for different payment methods, schemes, and regions across the globe.
“Bringing Qawn to the market is just the start – we look forward to expanding our partnership with Jordan Ahli Bank to bring further innovative financial solutions to Jordan, and elsewhere in the MENA region,” said Thought Machine CEO and Founder Paul Taylor.
Digital customer service provider Glia is enhancing its Glia Interaction Platform with a partnership with voice authentication provider Illuma Labs. Glia has integrated Illuma’s voice authentication technology into its customer service platform to help organizations streamline voice authentication for customer service interactions.
Glia anticipates the new addition will not only prevent fraud, but also enhance the customer experience and improve operational efficiency. “Illuma Shield fits seamlessly with the Glia Interaction Platform, adding more efficiency by making voice authentication effortless,” explained Illuma CEO and Founder Milind Borkar. “Our joint customers are experiencing the real value that the Glia and Illuma partnership delivers.”
Illuma Shield is Illuma’s flagship voice biometrics product that integrates signal processing, AI, and machine learning. The technology works in the background to authenticate customers during an interaction and prevent account takeover. Meanwhile, the customer service representative doesn’t need to make unnecessary clicks or spend time on data entry during or after the call. And because the user interface shows up on the agent’s existing screen, they don’t have to open up a different window.
The Glia Interaction platform is comprised of digital, phone, and self-service customer service options. The range of solutions not only provides customers a variety of options when seeking out customer service, but it also offers end users a seamless, omni-channel experience in the event they need to change communication channels.
“Authentication, particularly for phone banking, has traditionally been cumbersome and a major source of friction,” said Glia SVP of Alliances Steve Kaish. “By verifying enrolled customers in the first few seconds of natural conversation with the Illuma Shield software, Glia quickly enables an authenticated interaction, reducing fraud and letting customers focus on their immediate need, be it an account balance, mortgage inquiry or loan origination.”
Glia was founded in 2012 as SaleMove. The New York-based company offers digital communication environments, on-screen collaboration, and AI-enabled assistance tools for clients who need to support end customers online, over the phone, in home office environments, and via video. In total, Glia has facilitated more than 10 billion customer interactions. The company has raised $152 million and counts Envestnet, Deutsche Bank, and United Healthcare among its clients. Glia has taken home 10 Finovate Best of Show awards for its live demos and most recently showcased its tools at FinovateSpring 2021.
Founded in 2016, Illuma seeks to help credit unions boost their brand reputation with a modern and seamless member experience and better security. The Texas-based company has raised $2.5 million. Illuma appeared on the FinovateSpring stage last month in San Francisco with a demo of how it brings passive voice authentication to Glia’s customer service interactions.
Payment consultancy and technology provider Icon Solutions announced a strategic partnership with Virtusa Corporation.
The partnership combines Virtusa’s payments implementation expertise with Icon Solutions’ Icon Payments Framework (IPF).
Icon Solutions made its Finovate debut at FinovateEurope in 2017.
U.K.-based Icon Solutions announced a strategic partnership with data strategy, data engineering, and IT services and solutions provider Virtusa Corporation. The collaboration will bring Virtusa’s payments implementation expertise to Icon Solutions’ Icon Payments Framework (IPF).
The goal of the partnership is to create an ecosystem in which banks and other financial institutions can achieve their payment transformation objectives. Icon’s IPF offers a low-code, cloud-native, open-source framework that empowers FIs to build their own payment processing solutions. IPF’s software development kit and optional modules give financial institutions the ability to take advantage of Icon’s payment strategy and architecture without the danger of being “locked-in” to a given vendor’s technology.
“Icon is committed to empowering banks to regain control of their payments and transform with confidence,” Icon Solutions Sales Director Liam Jeffs said. “With Virtusa, we are expanding our partner network to provide even more rich, collaborative opportunities to equip global banks with unique infrastructure that both streamlines their payments processing capabilities and helps them grow revenue streams.”
Founded in 2009, Icon Solutions made its Finovate debut in 2017 at FinovateEurope. At the conference, the company showed how its technology helped institutions in the U.K. adopt and deploy instant payments. Via its IPF platform and its team of advisors, Icon Solutions enabled financial institutions that did not have the budgets and platforms of their larger rivals to successfully upgrade their payments technology and transition to instant payments.
Since then, the company has grown 20% year-on-year. The firm also has partnered with financial institutions such as BNP Paribas, Lloyds Banking Group, Nationwide, and HSBC. Tier 1 banks around the world use Icon Solutions’ IPF to accelerate their payment transformations and introduce instant payments to their customers.
Last month, Icon Solutions appointed Donal Fleming as its new Chief Technology Officer. Fleming brings more than 25 years of experience in the banking and financial services industry to the company. He previously served as CTO for Credit Benchmark and payments company Modulr.
Virtusa was founded in 1996. The company serves businesses in life sciences and health care, as well as in banking and financial services. Virtusa has more than 220 clients, and operates in more than 25 countries. Baring Private Equity Asia acquired the Massachusetts-based firm in 2020 in an all-cash deal valued at $2 billion. Virtusa co-founder Kris Canekeratne is Chairman and CEO.
This week’s edition of Finovate Global looks at recent fintech news from Colombia.
The largest Spanish-speaking country in South America, Colombia is located in the northwest corner of the continent. With a population of more than 52 million, Colombia has the third largest economy in South America and the fourth largest in Latin America. More than 11 million people live in the country’s capital city of Bogota.
Earlier this year, the Colombian government indicated its support for open banking and open finance. Specifically, the government included the establishment of an open banking scheme as part of its National Development Plan. The fact that the current government endorsed an initiative that began with the previous administration was seen as an especially constructive sign for the future of open banking and open finance in Colombia.
One way to keep up with fintech news from Colombia is via Colombia Fintech. With information in both Spanish and English, Colombia Fintech is an association of fintech companies based in Colombia. The association provides news on Colombian fintechs, updates on relevant developments on the government and regulatory front, as well as opportunities for networking. Colombia Fintech counts more than 240 members in its community. The association was formed in 2016.
As for recent Colombian fintech news, Bogota-based payments and data security company Intexusannounced a partnership with security software company Entrust this week. Intexus will use Entrust’s digital card and instant issuance technology to support its card-as-a-service solution. The partnership is designed to enable banks and credit unions in Latin America to benefit from a unified payment card program.
“We have long been in the digital era and today’s consumers are accustomed to having resources at their fingertips instantaneously,” Intexus CEO David Rojas said. “Our partnership with Entrust allows us to simplify payment enablement for our bank and credit union customers throughout Latin America so they can focus on building relationships with their cardholders and members.”
Intexus serves clients in eight Latin American countries and issues more than 100,000 cards a month. The company was founded in 1997. Entrust provides solutions to help businesses offer trusted experiences for identity, payments, and data. Founded in 1969, the company has been a Finovate alum since 2015 when it presented its technology as part of our developers conference, FinDEVr SiliconValley.
Speaking of partnerships between Finovate alums and Colombian financial interests, we also learned this week that Ripple has entered into a new collaboration with the country’s central bank. As reported in CoinDesk, Banco de la República will test the effectiveness of Ripple’s CBDC platform to enhance Colombia’s high-value payments system. The pilot is being conducted in partnership with the country’s Ministry for the Information and Communications Technologies (MinTIC). Spanish blockchain company Peersyst Technology is also participating.
The goal of the project is to demonstrate the platform’s ability to improve the speed and reduce costs for large scale, wholesale payments, RTGS systems and similar operations, Joe Vollono, a director of CBDC business development at Ripple indicated. The project is scheduled to continue through the end of the year, and is being conducted in a controlled environment without compromising public resources.
As noted in The Paypers coverage of the announcement, Ripple previously partnered with Colombia last year to put land titles on the blockchain as part of a land redistribution program. Peersyst Technology was also a part of this initiative to permanently store and authenticate property titles on Ripple’s public blockchain.
Founded in 2012, Ripple made its Finovate debut as OpenCoin at FinovateSpring the following year. Rebranded as Ripple in 2015, the company has since grown into an innovative payment protocol and exchange network. Use cases of the company’s technology range from cross-border payments to crypto liquidity to CBDCs. Ripple’s customers include Novatti, Modulr, and Siam Commercial Bank. Chris Larsen is CEO.
Here is our look at fintech innovation around the world.
Avaloq has received a strategic investment from BlackRock.
The amount of the investment is undisclosed, but it gives BlackRock a minority stake in Avaloq.
BlackRock will integrate Avaloq’s wealth management technology into its Aladdin Wealth product.
BlackRock announced a strategic investment in wealth management technology provider Avaloq this week. The amount of the investment was not disclosed, but BlackRock has taken a minority stake in the Switzerland-based company.
“This partnership will help us empower our clients to streamline processes, enhance risk analytics, and make more informed portfolio decisions, ultimately delivering greater value to their clients,” explained Avaloq Co-CEO Martin Greweldinger.
Their collaboration will combine Avaloq’s core banking, client relationship management, and mobile banking services with the risk analytics and portfolio management capabilities of BlackRock’s Aladdin Wealth. This combination will empower wealth managers and private banks to offer enhanced, more holistic services.
“BlackRock and Avaloq joining forces will help clients reduce the complexity and friction inherent in many of today’s digital transformations,” said Aladdin Wealth Tech’s Global Head Venu Krishnamurthy. “Our combined offering will make it extremely convenient for clients to implement and adopt Aladdin Wealth’s industry leading capabilities as it will be deeply integrated with Avaloq’s core banking solutions.”
Founded in 1991, Avaloq was acquired by Japan-based NEC in late 2020 for $2.2 billion. Prior to the acquisition, Avaloq had raised $392 million in funding.
Originally a core banking provider, Avaloq has narrowed its focus to serve private banks and wealth managers and now counts more than 150 clients across 35 countries. The company has four main product lines: Avaloq Engage increases client engagement, Avaloq Wealth supports the client journey, Avaloq Insight offers access to data, and Avaloq Banking Operations supports the back office.
What is the role of Generative AI in financial services? It seems as if every week another fintech or financial services company is announcing that it is integrating ChatGPT – among the most popular Generative AI applications – into its products. This week alone Avalara announced that it is launching a sales tax calculator plugin for ChatGPT, and cryptocurrency exchange Bybit reported that it is integrating ChatGPT into its trading tools.
As part of our Streamly Future of Finance Series, we asked Rocio Wu, Principal at F-Prime Capital and a recent speaker at FinovateSpring, for her thoughts on the role of Generative AI in financial services. What unique services will Generative AI make possible? Are banks ready to take advantage of what Generative AI has to offer? And what are the ethical concerns about the use of Generative AI in financial services? Wu discusses all this and more in her Streamly Future of Finance Q&A: “The three main categories of Generative AI innovation in financial services.”
Canadian wealth-as-a-service platform OneVest raised $12.8 million (CAD $17 million) in Series A funding this week.
The company’s technology provides financial institutions with a modular, scalable solution that enables them to launch new wealth management services in weeks.
The funding takes OneVest’s total capital raised to $18 million (CAD $24 million).
OneVest, a wealth-as-a-service platform for financial institutions, raised $12.8 million (CAD $17 million) in Series A funding this week. The investment takes the Calgary, Canada-based company’s total capital raised to $18 million (CAD $24 million). OneVest will use the funding to accelerate growth and expand into the U.S. market. The capital will also enable the company to add to its team in multiple areas, including enterprise sales, business operations, product, and engineering.
OMERS Ventures led the round. Existing investors Luge Capital, Panache Ventures, AAF Management, and FJ Labs participated, as well. The Series A also featured new investors Fin Capital, Pivot Investment Partners, and Deloitte Ventures.
“We’ve built OneVest as a durable, highly scalable platform that can shape the future of wealth management,” OneVest co-founder and CEO Amar Ahluwalia explained. He underscored the challenge of delivering “exceptional” financial experiences while meeting the expectations of customers, financial advisors, and regulators alike. “The ability to implement a modern service with all the required compliance requirements built in, is compelling,” Ahluwalia said.
Financial institutions can integrate and configure the different components of the platform based on the needs of their customers. The solution provides intuitive interfaces for investors and advisors, data aggregation, a reliable book of record, and a comprehensive portfolio management engine. Institutions can leverage the platform to automate and streamline administrative and middle office operations, as well. The technology is designed to enable banks and other FIs to launch customized, wealth management offerings in weeks, rather than years.
Ahluwalia, Jakob Pizzera (COO), and Nathan Di Lucca (CTO) founded OneVest in 2021. The company provides solutions for fintechs, banks and credit unions, wealth managers, insurance companies, dealers and custodians, and asset managers.
