Fintech

Why Financial Services firms are prioritising application modernisation in 2025

Thu, 27 Mar 2025 15:00:00 +0000

How does AI-assisted low-code application development allow financial institutions to future-proof?

Conducting the payments orchestra: Why IT will drive future transaction banking models

Thu, 27 Feb 2025 15:00:00 +0000

Practical use cases of SaaS adoption, and how it helps banks build effective transaction banking models

Practical AI in Payments: Moving Beyond Buzzwords to Bottom-Line Impact

Tue, 25 Feb 2025 15:00:00 +0000

How important is it to align data components and achieve higher straight through processing (STP) rates?

Beyond Open Banking – Exploring the Move to Open Finance

Thu, 13 Feb 2025 15:00:00 +0000

What do companies operating under open finance rules need to consider when sharing financial data with third-party providers?

The ISO 20022 deadline is looming: Are financial organisations prepared?

Tue, 11 Feb 2025 15:00:00 +0000

The countdown to ISO 20022 is on.

PREDICT 2025: What the National Payments Vision means for the UK

Thu, 06 Feb 2025 17:00:00 +0000

What can the industry expect from the post implementation review of the APP fraud reimbursement rules?

Behavioural biometrics: Meeting the deployment challenge

Tue, 04 Feb 2025 15:00:00 +0000

How should financial institutions deploy behavioral biometrics?

Money Mule Defence: Practical Applications and the Role of Technology

Thu, 30 Jan 2025 15:00:00 +0000

What are the challenges of detecting the activities of mules and the need for continuous monitoring at different stages, such as onboarding or transacting?

Trusted Transactions: The Future of Risk-Based Authentication

Tue, 28 Jan 2025 15:00:00 +0000

Why should issuers and processers use AI to embed trust in the transaction lifecycle?

European fintech investment increased 10% in 2024

Thu, 23 Jan 2025 00:01:00 +0000

European fintech investment increased 10% in 2024 in a sign of increasing confidence for one of the continent’s leading tech sectors.

Ramp launches treasury product

Thu, 23 Jan 2025 00:01:00 +0000

Finance automation and corporate credit card startup Ramp has launched a treasury product that lets clients store cash in a business account and earn interest.

Algo trading firm XTX to build €1bn data centre hub in Finland

Thu, 23 Jan 2025 00:01:00 +0000

Algo trading form XTX Markets is investing €1 billion in a large-scale data centre complex in Finland to support its growing use of machine learning.

Ramp Launches Ramp Treasury to Make Use of Idle Cash

Wed, 22 Jan 2025 21:31:36 +0000

Ramp debuts Ramp Treasury to help businesses earn interest on idle funds.
The free, FDIC-insured account offers 2.5% interest or an investment account with rates up to 4.38%, all without fees or transfer limits.
This is Ramp’s first foray into holding deposits. The company is partnering with First Internet Bank for the deposits and Apex for investments.

Business finance automation platform Ramp unveiled a new product today called Ramp Treasury that helps businesses earn more interest on their idle funds without sacrificing liquidity.

Ramp customers can use Ramp Treasury to store their cash in a free, FDIC-insured account that earns 2.5% interest or choose to invest it in a money market fund via the Ramp Investment Account which offers rates as high as 4.38%. The liquid FDIC-insured account does not charge fees, require a minimum deposit, or have transfer limits.

“Every day your money sits in limbo waiting to settle is a day of missed earnings — hidden costs that quietly chip away at your bottom line,” the company said in a blog post.

Ramp Treasury is integrated into its AP workflow to ensure that business’ operating funds are earning interest. Ramp’s accounts allow businesses to manage all of their treasury and AP workflows in one place, set multi-step approvals, create authorized users, sync with their ERP without manual reconciliation, and more.

This is Ramp’s first foray into holding users’ deposits. Prior to the launch of Ramp Treasury, Ramp only offered corporate cards and spend management tools. The New York-based company is partnering with First Internet Bank of Indiana to hold cash deposits and leverages Apex for investments. Interestingly, Ramp competitor Brex applied for a bank charter in 2021, but later decided to withdraw its application.

Ramp was founded in 2019 and has experienced notable growth, especially in the past year. The company has doubled its customer number in the past year, accelerating from 15,000 to 30,000. And while Ramp is not disclosing current revenue figures, in the summer of 2023 it reached $300 million in annualized revenue.

Since it was founded in 2019, Ramp has grown to 1,000 employees, has raised $1.8 billion in funding, and has acquired three companies, most recently purchasing Venue to improve its Procurement product automations. Despite all of its growth, however, it doesn’t look like Ramp is focused on joining the 2025 fintech IPO bandwagon. “We are just trying to build a great business, regardless if it’s private or public,” Ramp CEO and co-founder Eric Glyman told TechCrunch.

Photo by Tima Miroshnichenko

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Sikoia and Tandem Bank Forge Strategic Partnership to Enhance Income Verification

Wed, 22 Jan 2025 20:08:43 +0000

Customer verification specialist Sikoia announced a strategic partnership with Tandem Bank.
The partnership will enable the digital bank to automate key parts of its income verification and document handling processes for mortgage brokers.
Founded in 2021, Sikoia made its Finovate debut last year at FinovateEurope 2024.

London-based customer verification specialist Sikoia has sealed a strategic partnership deal with Tandem Bank. The partnership will enable the financial institution to automate specific parts of its income verification and document handling processes to boost efficiency for mortgage brokers.

“Our partnership with Tandem Bank marks a key milestone in transforming income verification and document processing for the mortgage industry,” Sikoia Founder and CEO Alexis Rog said. “This collaboration aims to eliminate administrative burdens, ensure consistent and auditable decision-making, and ultimately enhance the customer experience.”

Sikoia’s AI-powered Income and Employer Verification solution helps financial institutions avoid a typically manual, error-prone process that takes lenders an average of 30 minutes per application. Instead, Sikoia’s automated technology offers rigorous document integrity checks in seconds which enable companies like Tandem to provide mortgage brokers with faster, more accurate responses. Sikoia’s solution combines AI, traditional data extraction methods, and advanced business logic and categorization to automate key aspects of the verification process — such as income, affordability assessments, and application completeness. The solution provides 100% coverage; works seamlessly with broker-submitted documents such as payslips, bank statements, and tax returns; and delivers enhanced accuracy and auditability. A user-friendly portal and an API ensure easy and scalable integration into institutions’ current systems.

“Tandem is starting the new year on a strong note, and our partnership with Sikoia underscores this commitment,” Tandem Bank Director of Second Charge Sales and Distribution – Mortgage Division, Nigel Brookes, said. “By harnessing their AI-driven technology, we’re transforming a traditionally time-consuming process into a streamlined, efficient workflow — enabling faster and more accurate service for our customers. This partnership reflects our dedication to driving innovation and setting new benchmarks for efficiency and customer satisfaction for second charges.”

Among the U.K.’s oldest digital challenger banks, Tandem Bank was launched in 2014. The bank established itself by providing fair mortgages and savings products, and by acquiring Harrods Bank in 2018. Tandem Bank’s mission to build “the U.K.’s greener digital bank” became evident in its 2020 acquisition of green home improvement loan specialist Allium Lending Group and, further, with its 2022 merger with Oplo. Today, Tandem Bank offers savings accounts, mortgages, home and automobile financing, home improvement loans, and green home funding. Since inception, the institution has provided more than $644 million (£523 million) in green home improvement lending.

Headquartered in London and founded in 2021, Sikoia made its Finovate debut at FinovateEurope last year. At the conference, the fintech demonstrated its AI-powered application document processing technology that provides instant customer feedback; automated verification for income, employment, affordability, and more; and a reduction in document handling costs and time of 75%.

Sikoia’s partnership with Tandem Bank comes days after the company announced that it was working with U.K.-based specialist loan brokerage Y3S. Sikoia will help the firm streamline its customer verification processes for brokers and borrowers.

“At Y3S, safeguarding our brokers and their clients is a top priority,” Y3S CEO Barney Drake said. “Our partnership with Sikoia demonstrates our dedication to staying ahead of the curve in fraud prevention and compliance, giving brokers greater confidence in the solutions we offer.”

Interested in demoing at FinovateEurope in London next month? Applications are still being accepted from innovative companies with new solutions that are ready to show. Visit our FinovateEurope hub today to learn more.

Photo by Caio

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B.C. Securities Commission secures deal with overseas firms to return crypto to British Columbians

Wed, 22 Jan 2025 19:56:00 +0000

The B.C. Securities Commission (BCSC) has reached an agreement with an overseas group of companies, GS Partners and its affiliates, which will enable British Columbians to make a claim for a refund of all investments they made with them.

Databricks seals $15 billion in financing to attract top AI talent and accelerate global expansion

Wed, 22 Jan 2025 15:49:00 +0000

Databricks, the Data and AI company, today announced the final closing of its Series J funding. Existing investor QIA, the sovereign wealth fund of the State of Qatar, along with new investors including Temasek and entities administered by Macquarie Capital, participated in the funding round, which values the company at $62 billion.

Persona unveils advances in detection of AI-based face spoofs

Wed, 22 Jan 2025 15:37:00 +0000

Persona, a leading global identity platform, today announced significant advancements in its AI-based face spoof detection capabilities.

Cainam Ventures unveils AI-powered digital asset trading tech

Wed, 22 Jan 2025 15:23:00 +0000

Cainam Ventures, a financial technology startup, is launching a groundbreaking platform that redefines autonomous digital asset trading.

DriveWealth expand fixed-income asset class offering

Wed, 22 Jan 2025 15:21:00 +0000

DriveWealth, a leading financial technology platform providing Brokerage-as-a-Service, today unveiled its partnership with Moment Technology Inc. (“Moment”) to expand its fixed-income asset class offering.

P2P adopts embedded bankling tools from Mbanq to serve Brazilian immigrants in US

Wed, 22 Jan 2025 13:47:00 +0000

Mbanq, a globally leading provider of Banking-as-a-Service (BaaS) and financial technology solutions, partners with P2P, a digital financial platform dedicated to serving the Brazilian immigrant community in the United States.

Idemia launches new smartphone enrollment for biometric payment cards

Wed, 22 Jan 2025 13:45:00 +0000

As card issuers strive to provide their customers with more convenient, high-security payment options, biometric payment card technology continues to advance.

TMX opens new US equity ATS venue

Wed, 22 Jan 2025 13:40:00 +0000

TMX Group today announced the launch of AlphaX™ US, a new US Alternative Trading System (ATS) venue, that is designed to create a trading environment with a focus on enhanced execution quality.

SEC launches crypto task force, saying it can 'do better'

Wed, 22 Jan 2025 13:18:00 +0000

With Donald Trump in power, the new acting chairman of the Securities Exchange Commission has moved to reset the watchdog's approach to digital assets, launching a crypto task force dedicated to developing a regulatory framework for the sector.

Starling hires NatWest's Raghu Narula as chief banking officer

Wed, 22 Jan 2025 12:03:00 +0000

Starling Bank is further bolstering its leadership team with the appointment of NatWest executive Raghu Narula as chief banking officer.

Sygnum adds SocGen stablecoin EURCV to B2B platform

Wed, 22 Jan 2025 11:30:00 +0000

Sygnum, a global digital asset banking group who recently announced its expanded EU market entry, is further enhancing its B2B platform offering via a collaboration with Societe Generale-FORGE, the digital asset subsidiary of one of Europe’s largest financial services groups, Société Générale.

JetBlue to accept Venmo for online flight bookings

Wed, 22 Jan 2025 11:28:00 +0000

JetBlue (Nasdaq: JBLU) have announced it is the first airline to accept Venmo, offering customers an easy and secure payment option when booking flights directly with JetBlue online.

Germany's Metzler Bank to implement AI LLM models from Unique

Wed, 22 Jan 2025 11:26:00 +0000

Unique AG, an award-winning company specializing in AI-driven solutions for financial services, is thrilled to announce a new partnership with with the Frankfurt-based bank B. Metzler seel. Sohn & Co. AG (Metzler), the oldest German private bank in continuous family ownership at 350 years old.

FCA to remove £100 contactless limit

Wed, 22 Jan 2025 10:55:00 +0000

The UK Financial Conduct Authority is planning to remove the £100 contactless limit and implement an open finance regime tackling SME financing.

Google hit with $12.6m fine by Indonesian anti-trust watchdog over monopolistic payment practices

Wed, 22 Jan 2025 10:49:00 +0000

Google LLC was proven to have committed monopolistic practices (Article 17) and abused of dominant position to limit the market and technological development (Article 25 paragraph (1) letter b) in Case No. 03/KPPU-I/2024 concerning Alleged Violation of Law Number 5 Year 1999 related to the Implementation of Google Play Billing System.

Mangrove Capital installs Christopher Horne as CEO at The Bank of London

Wed, 22 Jan 2025 10:08:00 +0000

The Bank of London has appointed its third CEO in as many months, as a new ownership team led by Mangrove Capital Partners takes control.

Goldman Sachs wants to create AI that thinks and acts like a seasoned banker

Wed, 22 Jan 2025 09:13:00 +0000

Goldman Sachs is rolling out a Generative AI assistant to its staff in the first stage of a programme that aims to create a bot capable of thinking and acting like a veteran employee.

Digital finance platform Tapline raises funds

Wed, 22 Jan 2025 05:01:00 +0000

Tapline, a digital finance platform allowing SaaS and subscription companies to trade their future revenues for upfront and non-dilutive cash, has raised a €20 million pre-Series A round comprising both equity and debt.

Highnote raises $90m; expands into merchant acquiring

Wed, 22 Jan 2025 00:01:00 +0000

Card issuance and programme management platform Highnote is moving into US merchant acquiring after raising $90 million in Series B funding.

Cash withdrawals on the rise - Nationwide

Wed, 22 Jan 2025 00:01:00 +0000

UK building society Nationwide is reporting an uptick in ATM cash withdrawals for the third year in a row as Brits turn to notes and coins to help with budgeting at a time the cost of living remains high.

Italy's Qomodo raises €13.5m to bring BNPL to the high street

Wed, 22 Jan 2025 00:01:00 +0000

Qomodo, an Italian startup that helps physical merchants offer their customers BNPL payment options, has raised €13.5 million in Series A funding.

Will it be The Year of the Regulator or “Liberation Day” for Financial Services in the U.S.?

Tue, 21 Jan 2025 23:43:47 +0000

As European financial services companies and fintechs brace for a wave of new regulations, their counterparts in the U.S. are anticipating a strong trend in the opposite direction as President Trump and the Republicans take control of the government.

Right now, with 2025 barely underway, U.S. regulators in a number of instances are still in crack-the-whip mode with regard to fintechs and financial services companies.

Last week, we learned that Digital Currency Group will pay a combined $28.5 million in civil penalties for misleading investors about the financial condition of its subsidiary, Genesis Global Capital. Also last week, American Express agreed to pay $230 million to settle charges of alleged deceptive sales charges for credit card and wire transfer products to small businesses. Mastercard will have to pay $26 million to settle a gender and race bias-based class action lawsuit.

A little earlier this month, the Consumer Financial Protection Bureau (CPFB) announced that it was suing Capital One for allegedly cheating millions of consumers out of more than $2 billion in interest. The Commodity Futures Trading Commission convinced a U.S. District Court to enter a consent order against Gemini Trust Company with a $5 million civil monetary penalty. Also this month, the SEC reported charges against nine investment advisers and three broker-dealers for recordkeeping failures and issued fines totaling more than $63 million. Speaking of the SEC, it has ordered popular brokerage Robinhood to pay $45 million in penalties over a variety of compliance failures.

You get the picture. The question is, with the arrival of the Trump team, how much of this regulatory oversight is likely to go dark?

In the U.S., the focus will be on agencies like the SEC and the CPFB. On his first day in office, President Trump issued a regulatory freeze. This will prevent agencies from implementing proposed rules until an agency appointed by the Trump administration reviews the specific regulation. The Trump administration has not spoken directly about the CPFB, though it is widely believed that the current director Rohit Chopra will be fired if he does not resign.

What proposed rules from the CPFB might find themselves in the freezer? There are a few worth highlighting. These include the CPFB’s rule limiting the ability of financial institutions to charge overdraft fees, which is slated to go into effect in October, as well as a rule banning the listing of medical debt on credit reports that was issued just last month. Another key ruling relates to aspects of the Truth in Lending Act (TILA) and its requirements for Property Assessed Clean Energy (PACE) transactions.

The CPFB is sufficiently concerned about the changes likely to come from the Trump administration that it has issued a report called “Strengthening State-Level Consumer Protections.” The report, which states the case for consumer financial protection laws going all the way back to the Woodrow Wilson administration at the beginning of the 20th century, speaks loftily about the importance of federal-state partnership when it comes to protecting consumers. It even praises state-level legislation for providing “an important source of information” to Congress and federal regulators, enabling them to better “adjust standards over time.”

Nevertheless, analysts have suggested that the report appears to be an attempt to encourage state legislatures to adopt their own consumer protection laws in the event that consumer financial protection laws at the federal level are weakened or removed entirely. Given the intensity and eagerness with which the Trump team is taking to its task, that might not be such a bad idea.

Photo by David Daza

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LeapXpert Secures $20 Million in Round Led by Portage

Tue, 21 Jan 2025 19:20:00 +0000

Business communications innovator LeapXpert has raised $20 million in new funding this week. The Series B round was led by Portage, and featured participation from existing investors, including Rockefeller Asset Management, Uncorrelated Ventures, and the Partnership Fund for New York City.

“At LeapXpert, we’re seeing greater and greater demand for our platform, driven in part by the three-year crackdown by global regulators on off-channel communications,” LeapXpert Founder and CEO Dima Gutzeit said. “This is now expanding beyond regulated enterprises into non-regulated sectors, as the DOJ in the U.S. enforces stringent requirements for preserving and governing business-related communications taking place on digital channels.”

The funding will enable the company to scale its footprint to address essential governance needs in the financial sector as well as in other industries. The proliferation and popularity of modern communications technology has put a new strain on companies that need to balance engagement and relationship-building on the one hand, and governance, compliance, and security on the other. LeapXpert’s cloud-based solution supports seamless and governed communications across modern communications channels, maintaining enterprise control while meeting the organization’s data retention, security, and regulatory needs. LeapXpert integrates with popular messaging solutions including iMessage, WhatsApp, SMS, Telegram, and WeChat on the customer side, and with enterprise platforms including Microsoft Teams, Slack, and Salesforce.

“Looking ahead, customers are also excited about the unfolding potential of communication intelligence and its contribution to workforce productivity,” Gutzeit added. “By unlocking actionable insights from governed conversations, our platform is set to drive new levels of efficiency and innovation in the way teams collaborate and operate.”

LeapXpert’s funding news comes in the wake of its recognition as a Visionary in Gartner’s new Magic Quadrant for Digital Communications Governance and Archiving (DCGA). A member of Deloitte Fast 500 list of America’s fastest-growing tech companies for 2024, LeapXpert recently announced partnerships with financial markets compliant communications solutions provider IPC and with Hong Kong-based media and telecommunications firm HKT. Last fall, the company unveiled its messaging security suite which is equipped with AI-powered impersonation detection — an industry first. Part of LeapXpert’s new Messaging Security Package, the additional functionality leverages AI to spot impersonation attempts over channels such as WhatsApp, WeChat, iMessage, and SMS in real-time.

“As organizations increasingly rely on platforms like WhatsApp, iMessage, and other messaging applications to conduct critical business communications, safeguarding these channels from threats becomes essential,” Gutzeit said. “With our AI-driven Messaging Impersonation Detection, antivirus, anti-malware, and CDR solutions, enterprises now have a comprehensive toolkit to ensure data governance and security across these channels.”

Founded in 2017, LeapXpert most recently demoed its technology on the Finovate stage at FinovateFall 2022 in New York. At the conference, the company demonstrated its new app for Microsoft Teams that provides a comprehensive digital record of company conversations.

Photo by Temo Berishvili

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Fintech Rundown: A Rapid Review of Weekly News

Tue, 21 Jan 2025 15:30:58 +0000

Thanks for reading Finovate’s Fintech Rundown! We’ve got a new administration in Washington, D.C. and a new week of fintech news and announcements. We’re starting off the holiday-shortened week with a funding in the payments space and a handful of new product launches in insurtech and crypto.

We will update Fintech Rundown all week long with the latest in fintech news.

Payments

Egyptian payment orchestration platform MoneyHash secures $5.2 million in Pre-Series A funding.

Worldline and Wix team up to boost online commerce and payments solutions for businesses throughout Europe and Asia Pacific.

Gala Technology launches SOTpay Connect, a comprehensive payments gateway that supports open banking, direct debits, omni-channel payments, and more.

Insurtech

U.K.-based insurance intelligence platform Percayso Inform unveils updated version of its Quote Intelligence platform.

Digital risk processing platform Cytora partners with property data solutions provider Smarty to enhance property risk evaluation for insurers.

Regtech

Procurement orchestration platform Omnea forges new partnership with banking technology company Thought Machine.

Regtech Regnology acquires Polish regulatory and supervisory technology company BR-AG.

Crypto / DeFi

Finland-based Virtual Asset Service Provider (VASP) Ovoro launches automated cryptocurrency investing app.

Cryptocurrency exchange and Web3 firm Bitget goes live with its Hold-to-Earn service, Bitget HodlerYield.

Lending

Digital banking experience platform Plumery introduces new digital loan origination journey, Digital Lending.

Small business banking

Independent consumer group and rating provider Fairer Finance launches new product ratings for business bank accounts.

Wealth management

Venture capital interval fund for retail and institutional investors, the Cashmere Fund, announces strategic collaboration with Apex Fintech Solutions.

Photo by Marvin Filmaker

The post Fintech Rundown: A Rapid Review of Weekly News appeared first on Finovate.

Instant Payment Regulation - PSD2 Déjà Vu?

Tue, 21 Jan 2025 11:22:21 +0000

Customer Experience: The Key Battleground Intended to accelerate the rollout of real-time payments i...

The Most Successful Cases of the $82.7 Billion Embedded Finance Industry

Mon, 20 Jan 2025 10:37:09 +0000

Embedded finance has entered our lives and it has changed how we interact with non-financial platfor...

India’s Digital Public Infrastructure: Revolutionising Growth, Inclusion, and Global Influence

Mon, 20 Jan 2025 08:39:16 +0000

In an era where technology underpins progress, India’s journey in crafting and scaling its Digital P...

Trading and Investment Network eToro Files for IPO

Sat, 18 Jan 2025 00:57:25 +0000

Social trading platform eToro has confidentially filed to go public in the U.S. later this year.
The IPO potentially values eToro at over $5 billion, marking its second attempt at a public debut after a failed SPAC deal in 2022.
eToro’s IPO aligns with a renewed optimism in fintech, dubbed “fintech spring,” as companies like Klarna also signal plans to go public, signaling a resurgence in confidence and investment.

Social trading and investment network eToro is taking its multi-asset trading platform to the public markets. According to a report from The Financial Times, eToro confidentially filed a U.S. IPO later this year.

The IPO, which could value eToro at over $5 billion, won’t count as the company’s first attempt at going public. In 2021, eToro announced plans to merge with FinTech Acquisition Corp. V, a publicly-traded special purpose acquisition company (SPAC), in a deal worth $10 billion. The deal would have listed eToro on the NASDAQ, but the two parties agreed to end the deal after eToro’s valuation was cut by 15% in 2022, and the company failed to go public by the deadline specified in the SPAC arrangement.

By March 2023, eToro raised $250 million at a $3 million valuation. “Our 2023 to 2025 strategy focuses on scaling our brokerage business in our key markets and increasing profitability via revenue growth and cost management,” said company Founder and CEO Yoni Assia at the time of the fundraising. “eToro will continue to focus on profitable growth while helping to drive progress towards a world where everyone can invest in a simple and transparent way.”

Since that time, eToro launched $Cashtags on what was then Twitter, announced it would pay interest on users’ idle cash, and began publishing educational content on X.

eToro was founded in 2007 and has since raised $693 million in funding. With more than 35 million registered users and investors on its trading and investing platform, the company offers trading and investing tools more accessible and collaborative. eToro launched in the U.S. market in 2019, entering a space where Robinhood had already established a six-year presence.

The IPO filing announcement comes as fintech is entering what analysts are calling “fintech spring,” a hopeful time during which investors are more willing to invest and organizations are more willing to take risks. Many predicted that 2025 would see a lot of fintech IPOs. Klarna kicked things off, announcing last November that it is planning a 2025 IPO.

Photo by George Morina

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Finovate Global Mexico: Payments Partnerships and International Acquisitions

Fri, 17 Jan 2025 21:50:32 +0000

This week’s edition of Finovate Global focuses on recent fintech headlines from Mexico, which boasts the second largest economy in Latin America.

Belvo and JP Morgan Partner to Enhance Recurring Payments in Mexico

A strategic collaboration between Latin American open finance platform Belvo and J.P. Morgan Payments aims to automate and streamline the management of recurring payments via direct debit. The partnership will enable businesses in multiple sectors to deploy direct debit quickly and securely, enhancing the customer experience and boosting engagement.

“This alliance with J.P. Morgan Payments is a milestone for Belvo and the financial ecosystem in Mexico,” Federica Gregorini, General Manager of Belvo in Mexico, said. “Direct debit offers a modern and efficient solution that not only improves companies’ operational processes but also makes life easier for users. With this collaboration, we are taking recurring payment automation to the next level, making it more accessible for all types of businesses.”

Now a member of J.P. Morgan Payments Partner Network, Belvo will give companies in industries such as lending, insurance, utilities, subscription services, and more the ability to automate their recurring collections. By leveraging direct debit, these companies will reduce errors, ensure timely payments, and increase convenience for customers who will no longer have to make manual payments.

Founded in 2019 and headquartered in Mexico City, Belvo is a leading open finance and data payments platform. With partners including BBVA, Citibanamex, and Finovate alum Nubank, Belvo first launched its direct debit recurring payments solution in Colombia and Mexico in the fall of 2023. This week’s strategic collaboration with J.P. Morgan Payments will bring this technology to more businesses throughout Mexico.

“We are pleased to work with Belvo to offer our clients in the country access to a best-in-class direct debit solution, providing higher transaction success rates, new features such as partial debit payments, and more efficient settlements,” Francisco Molina Viamonte, Head of Mexico for J.P. Morgan Payments said.

TransUnion Acquires Trans Union de Mexico from Mexico’s Largest Credit Bureau

International information and insights company TransUnion has signed a definitive agreement to acquire majority ownership of Trans Union de Mexico, the consumer credit business of Mexico’s largest credit bureau, Buró de Crédito.

“Our expansion in Mexico continues our commitment to making trust possible in global commerce,” TransUnion President and CEO Chris Cartwright said. “Credit bureaus are a catalyst for financial inclusion, and we are excited for the opportunity to bring the benefits of our state-of-the-art technology, innovative solutions, and industry expertise to Mexican consumers and businesses.”

TransUnion currently owns approximately 26% of Trans Union de Mexico. Cash consideration for the transaction, in which TransUnion will acquire an additional 68% ownership stake, is $560 million (MXN 11.5 billion), with an enterprise value of $818 million (MXN 16.8 billion). Buró de Crédito’s commercial credit business is not a part of this transaction.

“We anticipate that our planned acquisition of Buró de Crédito’s consumer credit business will strengthen our leadership position in Latin America and will make TransUnion the largest credit bureau in Spanish-speaking Latin America,” Regional President of TransUnion Latin America Carlos Valencia said. “We see substantial opportunity to introduce global products like trended and alternative credit data, fraud mitigation solutions, and consumer engagement tools. We also plan to expand beyond traditional financial services into adjacencies such as FinTech and insurance.”

TransUnion made its Finovate debut in 2016 at FinovateFall. The company returned to the Finovate stage last year for FinovateSpring 2024 to demonstrate its Enhanced BreachIQ solution, which provides modern, gamified consumer identity protection. Part of TransUnion’s TruEmpower suite of solutions, Enhanced BreachIQ builds an Identity Safety Score based on the user’s individual and unique data breach history. It also provides Breach Risk Scores that measure the severity of incidents in which their data was exposed, and a Personalized Action Plan of practical risk mitigation steps.

Founded in 1968, TransUnion is headquartered in Chicago. The company trades on the New York Stock Exchange under the ticker TRU and has a market capitalization of $18.4 billion.

Airwallex Acquires MexPago as Part of Latin American Expansion

Speaking of acquisitions in Mexican fintech and financial services, global financial platform Airwallex has finalized its acquisition of Mexico-based payment service provider MexPago, a licensed Institution of Electronic Payment Funds (IFPE). The acquisition, along with recent news that Airwallex has secured a payment institution license from Banco Central do Brasil, will enable the company to connect its international financial infrastructure with Brazil and Mexico, supporting local businesses.

“Mexico plays a pivotal role in the global economy, serving as a key link between North and South America and a critical hub for cross-border payments,” MexPago CEO and founder Luis Castillejos Ordaz said. “We’re proud to join forces with Airwallex to enable seamless and secure cross-border transactions for businesses worldwide. MexPago’s domestic capabilities, combined with Airwallex’s global reach will deliver even greater value to our shared customers. Together, we will unlock borderless opportunities for businesses here in Latin America and around the world.”

Founded in 2014, MexPago is headquartered in Huixquilucan, part of Greater Mexico City. Post-acquisition, Castillejos will serve as Country Manager for Airwallex, Mexico, where he will manage operations and help Airwallex’s customers successfully navigate the Mexican market.

Here is our look at fintech innovation around the world.

Asia-Pacific

UnionDigitalBank, the digital banking arm of Union Bank of the Philippines, partnered with fintech lending platform JuanHand.
Japanese international payment provider JCB forged a strategic collaboration with DOKO to boost JCB card acceptance in the U.K.
Backbase announced that its client, Vietnam-based An Binh Commercial Joint Stock Bank (ABBANK) has launched ABBANK Business, a new digital banking platform.

Sub-Saharan Africa

KCB Bank Kenya and UnionPay International (UPI) teamed up to boost e-commerce payment capabilities in Kenya.
Old Mutual Wealth (OMW) South Africa secured a strategic collaboration with financial services technology provider Bravura.
Mastercard opened its first office in Ghana this week.

Central and Eastern Europe

Czech cybersecurity firm for financial institutions Wultra raised €3 million in funding.
Ebury announced its acquisition of Lithuanian B2B cross-border payments solutions provider ArcaPay.
Lithuania required financial institutions in the country to block payment card transactions from unregulated operators.

Middle East and Northern Africa

Egyptian fintech Raseedi acquired microfinance lender Kashat.
MENA-based fintech startup Zywa, which offers banking solutions for Gen Z customers, raised $3 million in funding.
Saudi Arabian payments services provider HyperPay secured a license from the Saudi Central Bank (SAMA) to support the development of the financial services ecosystem in the kingdom.

Central and Southern Asia

Amazon acquired India-based Buy Now, Pay Later firm Axio for $150 million.
Pakistan-based commercial bank Bank Alfalah acquired a 9.9% equity stake in Jingle Pay.
Indian equity management platform Hissa launched a new fund to help workers at growth-stage startups convert their vested stock options into cash.

Latin America and the Caribbean

Cross-border payment solutions provider Bamboo partnered with Argentina-based e-commerce platform Tiendamia.
J.P. Morgan Payments and Belvo teamed up to enhance recurring payments in Mexico.
Crypto banking solutions company Coins.xyz launched in Brazil.

Photo by Jezael Melgoza on Unsplash

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The Evolving Role of Payment Gateways in a Digital-First World

Fri, 17 Jan 2025 05:30:09 +0000

As the global economy becomes increasingly digitized, the importance of seamless and secure online t...

FinovateEurope2025: Moving Beyond the Myths of Venture Debt

Thu, 16 Jan 2025 22:49:33 +0000

We hear quite a bit about the role of venture capital in providing equity funding for fintech startups. But much less discussed is the role of venture debt. And while there is a widespread awareness of venture debut opportunities in the United States, fewer startups in the U.K. and Europe have traditionally taken advantage of it.

2025 may mark the year this changes. Our special Power Panel on Day One of FinovateEurope — Busting the Myths of Venture Debt, Innovations in Lending to Pre-Profit, High-Growth Companies. How to Decide If It Is Right for Your Startup? — will examine the impact of this shift, why it is happening now, and what startups need to know about how venture debt can work to help them secure the financing they need in order to grow.

How does venture debt work? What are the different options available to fintech startups? How does revenue-based financing differ from venture debt? How can companies decide whether or not venture debt is for them? These are some of the questions our Power Panel will address.

The Power Panel will feature:

Kristine Erwin, Director, Venture & Growth Finance, NatWest

Erwin has nearly a decade of experience in venture debt. At NatWest, she is responsible for leading investments from origination to execution in high-growth, innovative companies, and supporting companies through the investment lifetime. LinkedIn.

Eliott Saba, Partner, Bootstrap Europe

Saba joined Bootstrap Europe in 2020 following a successful tenure at Silicon Valley Bank (SVB) as Vice President. Currently, he leads Bootstrap’s Fintech and Software expansion, following the successful raising of its third fund. LinkedIn.

Manuel Costescu, Managing Director and Co-Head of Innovation Economy for EMEA, JP Morgan

Costescu co-heads the Innovation Economy team, serving EMEA’s fastest growing fintechs, SaaS companies, and e-commerce firms across a wide range of corporate banking solutions. Costescu was previously a member of the Romanian Parliament and State Secretary for Trade and Investment. LinkedIn.

Morgan Borer, Founder, Blair Public Relations

Moderating the panel is Morgan Borer. Borer is a veteran communications professional with more than a decade of strategic communications and public relations experience. She was previously Partner at Bevel, one of the most sought-after strategic communications firms for venture capital, private equity, tech founders and CEO in the U.S. and Europe. LinkedIn.

Tickets for FinovateEurope are available today! Book by January 24 and take advantage of big early-bird savings.

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From AI to AR: U.S. Bank’s Innovation Leaders Share Key Takeaways from CES 2025

Thu, 16 Jan 2025 19:43:54 +0000

The annual Consumer Electronics Show (CES) took place last week, and U.S. Bank sent its Chief Innovation Officer Don Relyea and Head of Applied Foresights Todder Moning to take a look at the future of innovation across industries. The pair went to explore how emerging trends like AI, automation, and extended reality can enhance the customer experience.

In our interview with Relyea and Moning, the two shared their key takeaways from the event, including insights into the newest AI advancements, the evolution of immersive technologies, and the practical applications they plan to bring back to U.S. Bank.

Did you see any innovations at CES that inspired ideas for how U.S. Bank might improve its customer experience?

Don Relyea: Yes, inspirations for new innovations were everywhere. A few examples across industries: This year, we saw more foreign banks demoing their innovations than we ever have before. Several Asian banks were showcasing AI-powered venture portfolio tools, as well as AI-powered banking applications that are more along the lines of “Do It for Me” opposed to the current digital standard of “Do It Yourself.” This is a trend we follow closely. Samsung’s SmartThings Pro, which extends its smart home technology to business environments, is very interesting for optimizing and personalizing consumers’ retail experiences. When you think about the branch of the future and how branches will evolve, there are interesting things that could be done with a space that is environmentally aware of who and how many people are in it, etc.

Todder Moning: At CES 2025, it was apparent how technology is advancing convenience, safety, and new forms of value across all areas of consumers’ lives. For companies exhibiting in recent years, it’s been about adding sensors to products and connecting them to the cloud via consumers’ WiFi connections. We have also seen how new channels of human computer interaction are making it into the mainstream – from voice interaction to the emergence of new audio/visual interaction with glasses and AR/VR headsets. This year, it was all about taking that data and using AI to make products and services smarter and more capable. And we’re in the very early innings of this trend to help people traverse their worlds with smarter, more ambient, and more ‘auto-magical’ products and services. U.S. Bank has been doing the same thing in connecting customers and their money, payments, and transaction capabilities, embedding them in more areas across their lives and businesses. I think the work we’ve been doing in both embedding and machine learning/AI will be a vector that will expand further based on what we saw at this year’s CES.

How do you think the advancements in AI and automation showcased at CES could influence the future of banking in general?

Relyea: We saw a lot of AI at the show, but many of the things were just companies branding things with AI in the name versus harnessing AI’s full potential. However, we did begin to see clever use cases where companies are leveraging AI for consumer automation with good customer-centered design – once again, “Do It for Me” type use cases. This trend will eventually raise the bar for consumer expectations as consumers become more comfortable ceding control to agentic AI. These are market signals we are keeping an eye on as we prepare for this shift in consumer expectations.

Moning: While AI is not new and has always been at CES, it was overwhelmingly the primary focus this year. It reminded me of a few years back when Alexa voice interaction was put into everything from eyeglasses to grills to pet bowls. However, there were some big announcements and creative uses of AI too. We’re currently seeing AI move from simpler use cases of language and content creation using Large Language Models to the next phase of AI agents using Large Action Models, where chatbots and GPTs will be able to reason more and take permissioned action on your behalf. Instead of just reviewing a PDF for you and helping to craft an email, AI agents will enable digital actions such as making reservations or paying your monthly bills.

What was exciting to me, after years of following IoT and autonomous driving for U.S. Bank, was finally seeing the emergence of tools that will enable what some call physical AI, moving us closer to fully realized autonomous driving, more automated factories and warehouses, and more functional general robotics. Digital twins and Large World Models (mapping physical environments and learning the physics and rules of how to function in those environments) will enable consumers and enterprises to improve their lives and their businesses, respectively. It’s a big opportunity and should create many new kinds of jobs. We believe that banks will need to enable customers and their AI agents with transaction services, payments, lending and investing. This will be a large and exciting trend to explore over the next few years.

Were there any discussions at the conference about the metaverse, AR/VR, and immersive experiences? Do you see a role for these technologies in banking or financial services?

Relyea: The metaverse was somewhat more subdued at CES this year with companies perhaps realizing more fully they are not sure how it will play out. We didn’t see anything groundbreaking in the metaverse space. In fact, we saw several of the same things from last year’s show. That said, the smart glasses space is evolving and miniaturizing at a nice pace. AR glasses are getting more visibly appealing, as well as getting more functionality packed into the smaller form factors, including holographic displays on the lenses. The technology is not ideal yet, but it is getting closer. We believe the metaverse/immersive AR/VR experiences will hit their tipping point when these wearable devices are ubiquitous and always with us – like our phones are today. When this happens, we will be ready with embedded financial services.

Moning: Extended reality, including AR and VR, continues to simmer on the stove, so to speak. CES lets us see how different technologies are developing laterally across dozens of industry sectors and longitudinally over multiple years. It’s clear that AR/VR is improving but still has a way to go before it moves from simple heads-up displays (which can be highly useful for certain use cases, like closed captioning for the hearing impaired) to being a more immersive interaction layer over the world. Some vendors have started creating capabilities for 3D commerce, anticipating those markets as they evolve. We did see a few “metaverse companies,” although they’re not well-known names and will depend on more advancements and partnerships to break through. However, self-driving cars and semi-trucks, autonomous agricultural vehicles, and autonomous construction/mining vehicles are using 4D sensors (the fourth D is velocity) and digital twins in their own metaphorical version of a metaverse to bring us closer to the fully realized self-driving future we’ve all been waiting for.

NVIDIA’s announcements were of particular note, with its Blueprint agentic AI platform, AI-embedded computer, and Omniverse and physical AI platform that enable AI training for vehicles, factories, robotics, and more for the real world. So, the metaverse, which many think of as only a “virtual world,” is likely to be more of a merging between the virtual and real world. As you can imagine, the way U.S. Bank currently enables both physical and digital economies will be prevalent in such a future as it emerges.

What insights or lessons from CES do you plan to bring back to U.S. Bank’s innovation strategy?

Relyea: Companies that are more mature in their customer experience practices displayed solutions that are ambient, predictive, adaptive, and accessible. Much of this is powered by AI, either traditional or agentic. This was the year of agentic AI, and we think it will begin to usher in the age of “Do It with Me” and “Do It for Me” style experiences. From a customer experience perspective, the team will be focused on defining the art of possible in these spaces.

Moning: Seeing the AI announcements and AI-embedded products and services in so many was impactful to me. The same way that we’ve been testing to safely use traditional and generative AI in the enterprise, consumers will be using AI bots and soon more functional AI agents in their own lives. I believe the way people now manage a constellation of connected devices in their life, they’ll soon have a constellation of AI agents helping them manage the many things they do – from getting dressed in the morning to managing their active busy families to getting life-enhancing medical care to being fully-engaged employers and employees, and, of course, managing their financial lives.

We already have a multi-language capable virtual assistant in our mobile app, so how do we safely plug the value and service U.S. Bank provides to help our customers in other ways? How do we provide it when interacting with their AI agents? If there are eight billion people, of which let’s say one billion or so are active working professionals, that means that there will be many billions of AI agents those folks will be using and with which companies will be interacting. That feels like a pretty big opportunity.

What was the coolest non-fintech technology or tool that you saw there?

Relyea: Small personal aircrafts are getting really cool – think big drones with cockpits. We also saw many autonomous robots for vacuuming, mowing, cleaning pools, and a ton of other uses. I was able to shake hands with a robot for the first time at this CES, which was pretty cool but also a little terrifying when you think about it.

Moning: After petting and high-fiving a robotic dog last year, I shook hands with my first humanoid robot this year. It was a kind of “first contact” with the robotic future. But what I found most thrilling was being able to dig in Arizona using a large Cat Excavator I was operating remotely from the CES floor in Las Vegas. It was like being a drone pilot but for construction/mining equipment. This kind of remote control is the important “human-in-the-middle” stage between no autonomy and fully autonomous vehicles.

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10x Banking Partners with DLT Apps

Thu, 16 Jan 2025 19:33:33 +0000

Core banking platform 10x Banking has teamed up with data migration solutions company DLT Apps.
The partnership combines DLT Apps’ TerraAI technology with 10x Banking’s advanced migration tooling capabilities to minimize error and downtime during the data migration process.
Headquartered in London, 10x Banking won Best of Show in its Finovate debut at FinovateEurope 2023.

A new partnership between cloud-native meta core banking platform 10x Banking and data migration solutions company DLT Apps leverages AI to ensure that banks are able to make the most of their digital transformation initiatives. Specifically, the partnership puts DLT Apps’ TerraAi technology to work in helping institutions transition from legacy and non-legacy systems to 10x Banking’s platform.

“A key differentiator of this joint solution is the ability of 10x to load data in any sequence, validate it in a controlled staging environment, and ensure that every transformation is auditable,” 10x Banking CPO Okan Ozaltin said. “This allows banks to manage their migrations with precision, reducing the risk of data loss or corruption and accelerating the migration process,” he added. “This enables clients to quickly realize the benefits of their new systems.”

TerraAI features robust data transformation and AI-powered migration tools to prioritize data integrity and quality. Along with DLT Apps’ MigratIO platform, TerraAI is equipped to handle all data formats and includes an intuitive user interface that makes data mapping and reconciliation easier. MigratIO provides detailed audit trails and real-time data quality monitoring to give users visibility over the entire migration journey so that any potential issues can be addressed as early as possible in the process.

“This partnership ensures the quality and integrity of data is maintained from start to finish as users can identify data quality issues early in the migration lifecycle,” DLT Apps Founder and MD Santosh Reyes said.

Founded in 2018 and based in London, DLT Apps uses blockchain, AI, cloud, and micro-services technologies to transform financial services and accelerate digitization. In addition to TerraAI, the company offers a digital financial profile solution, Quinn, that facilitates streamlined onboarding, ongoing monitoring, and client lifecycle management; Zilo, a modern global transfer agency; and Zeta Wealth, which offers advanced financial tools for investment planning, portfolio management, and compliance.

10x Banking won Best of Show in its Finovate debut at FinovateEurope 2023. At the conference, the company demoed its 10x SuperCore cards that enable banks to build a card proposition in minutes with 10x Banking’s Bank Manager interface. More recently, 10x Banking reflected on its achievements in 2024, including the launch of the world’s first meta core platform, its first client in Africa, and new partnerships with companies like Deloitte and Flexys, as well as with fellow Finovate alums Zafin and Alloy.

Headquartered in London, 10x Banking was founded in 2016. The company has raised $297 million in funding according to Crunchbase. Antony Jenkins is Founder, Chair, and CEO.

To learn more about 10x Banking, check out my interview with company VP Lewis Ide on high growth opportunities for banks in APAC and Africa.

Photo by Lina Kivaka

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Amazon to Acquire India-Based BNPL Fintech Axio

Thu, 16 Jan 2025 19:24:05 +0000

Amazon has announced plans to acquire India-based BNPL company Axio.
The deal is reportedly worth over $150 million, pending approval from the Indian central bank.
The acquisition builds on Amazon’s previous financial services deals, having previously held an equity stake in Axio and acquiring Emvantage Payments, PayFort, and Tapzo.

Online retail giant Amazon plans to acquire buy now, pay later (BNPL) company Axio, as announced on the India-based fintech’s blog. According to TechCrunch, the deal is expected to close for over $150 million, pending approval from the Indian central bank.

Founded in 2013, Axio is a consumer finance company that has provided money management, pay later, and personal credit services. The company’s offerings are three-tiered. The finance planning tool allows users to review their expenses, maintain a budget, track bills, and split expenses. The BNPL offering facilitates instant credit and allows users to pay in installments while rebuilding their credit. Axio’s personal loans offer users simple registration with timely approval.

Axio has raised $226 million in funding over 14 rounds from investors including Peak XV Partners, Ribbit Capital, and Elevation Capital.

Today’s announcement comes six years after Amazon first took an equity stake in Axio. With a mission to make credit available to everyone, Axio has served over 10 million customers, noting that Amazon has been an invaluable partner in the journey.

“This means reaching more under-served customers, diversifying our offerings to address more unmet needs, and continuing to strike the right balance of customer experience, risk management, and affordability as we strive to responsibly expand access to credit across the country,” the company said in a blog post.

Amazon offers a range of payments services on its platform, including Amazon Pay, a payment service that includes Amazon Pay Express and Amazon Pay UPI; Checkout by Amazon; Amazon Flexible Payments Service; and Pay with Alexa. Among the retailer’s previous acquisitions in the financial services space are India-based Emvantage Payments, Dubai-based PayFort, and Tapzo, which the company later shuttered.

Photo by cottonbro studio

The post Amazon to Acquire India-Based BNPL Fintech Axio appeared first on Finovate.

What Are 'Future Safaris' and The 5 L's to Success?

Thu, 16 Jan 2025 17:00:00 +0000

Joining FinextraTV from CES in Las Vegas, Todder Moning, Head of Applied Foresights, U.S. Bank, shares his insights into the innovations at CES and how they inform his team’s view on the future. From explaining the role of futurists in banking to describing his 5 Ls for success, Moning provides his tips for future-proofing in the financial industry.

Open Banking turns 7: Reflecting on the journey here and the road ahead

Thu, 16 Jan 2025 08:58:18 +0000

It’s amazing that Open Banking, once a visionary concept, is now celebrating its seventh anniversary...