Global fintech and funding innovation ecosystem

Category Archives: Digital, NEO and Open Banking

Billionaire Plaid co-founder launches new nationally chartered banking venture

CoverageR | Avi Ben-Hutta | Apr 21, 2022

Column develeper infrastructure bank - Billionaire Plaid co-founder launches new nationally chartered banking venture

Today, after three years of building, Plaid's co-founder and former-CTO/President, William Hockey, announces Column, a nationally chartered bank “built from the ground up” for developers and anyone creating new financial products.

“I’ve spent time with (literally) thousands of companies building in financial services and it is painfully obvious that the biggest bottleneck to their growth and innovation is the underlying banks they rely on. Financial services needs to be consumer, developer and internet first; however, in order to do this it needs a new backbone.” – William Hockey.

Column describes itself as the developer infrastructure bank, helping new financial companies avoid “expensive middleware providers” that power legacy sponsor banks. The company says that it built its own core, ledger, and data model to power unique use cases at any scale.  Column offers a range of products including bank accounts, ACH, card programs, and lending. According to its site, it powers startups such as Brex, Plaid, Point, and others.

See:  Why Apple Acquired An ‘Open Banking’ Fintech

To get their hands on a bank charter, Column bought Northern California National Bank, a community bank with one physical branch in Chico, California for approximately $50 million.

Continue to the full article --> here


NCFA Jan 2018 resize - Billionaire Plaid co-founder launches new nationally chartered banking ventureThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Lending Loop Launches ‘Loop Card’ for Small Business Cross-border Transactions

Betakit | | Apr 21, 2022

Loop - Lending Loop Launches 'Loop Card' for Small Business Cross-border TransactionsLending Loop has launched Loop to provide a wider range of financial services for e-commerce businesses. The company’s first product is a corporate card specifically for cross-border transactions. The card allows companies to purchase in multiple currencies without fees. It also provides an extended repayment grace period, and credit limits based on sales rather than personal assets, which is often the case when entrepreneurs look to access corporate cards through banks.

In pivoting from lending to a broader financial services play, Loop has entered an increasingly competitive market. In the United States, well-capitalized players like Brex, Ramp, and Jeeves have created corporate cards tailored to startups. And in Canada where the market is still fairly bare, up and comer Float has attracted more than 1,000 customers in the last year alone.

See:  Fintech Card Space is Growing: Brim Financial, Float, Caary Capital, Jeeves, Neo Financial

However, Pastoll is adamant that Loop’s product is different from the others, specifically targeting Canadian-based e-commerce businesses that are doing business internationally.

“Our product is specifically built for this customer segment that is doing business cross border,” said Pastoll. “And we’re understanding the two key things: working capital and needing to move money seamlessly and cost-effectively around the world. Those are like core tenants that are important to e-commerce businesses.”

Businesses can spend and make payments in CAD, USD, GBP and EUR currencies without foreign exchange rate conversions and fees. The Loop Card also provides 55 days of interest-free spending, which the startup argues is the longest interest-free period in the industry.

See:  Fintech Fridays EP46: Making Business Borderless: International Payments and Partnerships

“The reason we’re offering that value prop is because we listened to e-commerce founders and heard, ‘I need the ability to basically push my expenses down the road so I can grow my business,’” said Pastoll.

Continue to the full article --> here

View the Lending Loop press release --> here


NCFA Jan 2018 resize - Lending Loop Launches 'Loop Card' for Small Business Cross-border TransactionsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Neo Financial Launches a Wealth Management Platform for Retail Investors – Neo Invest

NEO Financial | Release | Apr 6, 2022

NEO Financial - Neo Financial Launches a Wealth Management Platform for Retail Investors - Neo InvestWINNIPEG, Manitoba & CALGARY, Alberta--(BUSINESS WIRE)--Neo Financial announced today that they are expanding their product line from spending, savings, and rewards, to reimagining investing with the addition of Neo Invest. Neo Invest will offer Canadians the first fully digital, actively managed investment experience that provides access to sophisticated investment solutions that the average retail investor would not typically have access to.

With many Canadians reported to not have enough savings to live comfortably throughout their retirement, creating opportunities for individuals to grow their wealth that are simple and accessible has become increasingly desirable. Neo Invest provides access to private wealth management, starting with as little as a $1 investment.

See:  Tink Survey Report 2021: Open banking spending, investments and use cases

Banks and wealth management services in Canada often require individuals to have a net worth greater than $1M for these services, even though in 2019 the median annual income of Canadians was $37,800.

“We’re launching Neo Invest to democratize investing for all Canadians with a product that is simple to use and provides access to sophisticated investment solutions that most wealth managers don’t offer,” says Andrew Chau, Co-Founder and CEO of Neo Financial. “Historically, Canadians only have the option to invest through antiquated big bank products like mutual funds with high and hidden fees, online robo advisors offering basic products that only match the market and its volatility, and expensive private wealth managers that are not accessible to the average investor. With Neo Invest, we’re unlocking better investment opportunities and making investing possible for everyone.”

See:  Fintech Card Space is Growing: Brim Financial, Float, Caary Capital, Jeeves, Neo Financial

Through Neo Invests partnership with OneVest, customers will get access to:

  • Actively managed and institutional-style portfolios, managed by professional money managers that take advantage of changing market conditions with the objective of better returns with lower risk
  • Access to alternative investments such as cryptocurrencies, real estate, infrastructure, hedge fund-like strategies, and more
  • Ability to start investing with as little as $1 and get a complete, fully diversified portfolio
  • Customized portfolios that are built and managed to a user’s unique goals, timelines, and risk comfort
  • Automated investing that allows users to automatically schedule investments and direct deposits from other bank accounts

Neo Invest is available through the Neo website and mobile app, and can be funded through Neo’s recently relaunched Neo Money account, an everyday account that pays 1.3%* interest, or through direct deposit from another financial institution.

View the original release --> here


NCFA Jan 2018 resize - Neo Financial Launches a Wealth Management Platform for Retail Investors - Neo InvestThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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FDATA and Paytechs: Canadian Consumer and Small Business Attitudes Towards Financial Services and Open Banking

FDATA NA and Paytechs of Canada | Steve Boms and Alex Vronces | Apr 4, 2022

Attitudes of Canadians and businesses on financial services - FDATA and Paytechs:  Canadian Consumer and Small Business Attitudes Towards Financial Services and Open BankingApril 4, 2022, Toronto and Washington, DC: More than half of Canadians feel stress when interacting with Canada’s financial services sector and believe they would benefit from increased competition and transparency in the financial services market, according to a landmark survey commissioned by FDATA North America and Paytechs of Canada. The findings indicate this is especially true among women, young people, and new Canadians. Among the biggest sources of dissatisfaction are high fees and a lack of choice.

See:  New Mastercard Study: Majority of Canadian Consumers Embrace Open Banking

The findings are derived from two surveys conducted by Pollara Strategic Insights. One was of a randomly-selected sample of 2,001 Canadians 18 years of age or older. The other was of a randomly-selected sample of 600 Canadian small business owners. In each, respondents were asked about their experiences with Canada’s financial services sector.

Key Findings:

  • About half of Canadians (52%) and small business owners (51%) feel stress when interacting with the financial services sector. Those who operate larger small businesses (10+ employees) are significantly more stressed (72%). Moreover, the majority (54%) of these larger small business owners feel the amount of time they spend dealing with the financial services sector is getting in the way of them actually running and growing their business, twice the overall level among small business owners (26%). Immigrant small business owners are more likely to be stressed by their interactions with the sector.
  • Over two-thirds of Canadians believe more competition in the financial services sector would lead to a greater choice in products (70%) and lower financial services fees (67%). Moreover, small business owners are over four times more likely to agree than disagree with the sentiment that Canadian small businesses would benefit from increased competition in the financial services sector (64% vs. 14%).

See:  Ipsos Survey: Most Canadians Say (88%) We Need More Competition

  • Among specific changes tested, Canadians are most likely to feel they would personally benefit from easier ways to “shop around” to get the best possible rate (75% would benefit), easier ways to transfer money quickly and securely (73%), and tools that help make personalized investment decisions (69%).
  • Among specific changes tested, small business owners are most likely to feel they would benefit from easier ways to “shop around” to get the best possible rate (73% would benefit), better ways to transfer funds between different accounts (68%), and alternatives to credit cards with lower interchange fees for merchants (62%).
  • There is widespread agreement among the users of Non-Bank FinTech Apps that they are easy to use (91%), have lower fees (82%), and help save money (73%).

Continue to the original release --> here

Download the 29 page PDF survey results --> here


NCFA Jan 2018 resize - FDATA and Paytechs:  Canadian Consumer and Small Business Attitudes Towards Financial Services and Open BankingThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Research: ECB publishes report on payment habits and attitudes as part of digital euro project

ECB | Release | Mar 30, 2022

study on new digital payment methods - Research:  ECB publishes report on payment habits and attitudes as part of digital euro projectThe European Central Bank (ECB) published today the findings of its commissioned research on citizens’ payment habits and their attitudes towards digital payments in order to gain a deeper understanding of user preferences as part of the digital euro project.

Based on the responses of focus groups and online communities across all euro area countries, the report shows a strong preference for payment methods with pan-European reach and universal acceptance in physical shops and online. Users favour payment solutions that are convenient, fast and easy to use. Participants valued the possibility of instant and contactless person-to-person payments, regardless of the platform or device. Focus group respondents also wished for a one-stop-solution that would incorporate all the current payment options into one system.

See:  A European approach to DeFi regulation

Safety and security were a concern among respondents, who sought guarantees against fraud and hacking, as well as secure and reliable payment authentication methods. Biometric methods of payment verification, such as those involving iris scan technology, were widely supported by participants, while flexible and adjustable privacy settings were seen as desirable.

“We want the digital euro to add value for end users and merit their confidence,” says ECB Executive Board member Fabio Panetta, Chair of the High-Level Task Force on a digital euro.

“A digital euro could enhance European payments by providing a universally accepted and secure solution that facilitates contactless and instant payments.”

Continue to the original release --> here

Download the 128 page PDF 'Study on New Digital Payment Methods' --> here


NCFA Jan 2018 resize - Research:  ECB publishes report on payment habits and attitudes as part of digital euro projectThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Meridian CEO says Open banking is ‘an opportunity’ for credit unions

FP | Barbara Shecter | Mar 23, 2022

Open banking and credit unions - Meridian CEO says Open banking is 'an opportunity' for credit unionsMeridian Credit Union Ltd. is looking at open banking as “an opportunity, not a problem,” says Jay-Ann Gilfoy, who took over as president and chief executive of Ontario’s largest credit union in January.

“We’re looking at it as: ‘How can this help us grow? How can this help us do the right things for our members?‘”

Gilfoy said in a recent interview with the Financial Post.

See:  PwC’s Abraham Tachjian to be Canada’s open banking lead

I think we’re on a good path in terms of being able to address that as it relates to fintech partnerships and opportunities,” she added.  The credit union system as a whole has certainly come from a cooperative framework … and then on top of that, we also share back-end resources — all of the technical things that help with making payments happen,” she said.

Settlement and clearing, for example, are done through credit union “centrals” that are cooperatively owned by credit unions in each province where they operate.

The big banks, by contrast, have legacy internal technology systems built up over decades and many more customers across the country.

“If you have a banking system, you’ve got millions and millions of customers on it. The risks of getting off that core banking system are really high,” said Gilfoy.

See:  Ontario Credit Unions will be permitted to sell exempt market securities including 45-108-Crowdfunding

“Whereas credit unions have a variety of different core banking systems, but more modern, I think, in terms of design and ability.”

“We’re looking at our own technology, and our abilities to share data, protect data, make sure it’s safe from an information security perspective, but (also) we’re finding those potential partnership relationships that bring some kind of opportunity to our members, that maybe they would have had to go to a number of different places in the past to do so.”

Continue to the full article --> here


NCFA Jan 2018 resize - Meridian CEO says Open banking is 'an opportunity' for credit unionsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Why Apple Acquired An ‘Open Banking’ Fintech

Forbes | Ron Shevlin | Mar 27, 2022

Apple acquires credit kudos - Why Apple Acquired An ‘Open Banking’ FintechThe Apple-oids in Cupertino must eat this stuff up. Every time Apple makes an acquisition, the technology world—and increasingly now, the fintechaverse—goes into hyper speculation mode, trying to figure out why the company made the purchase and what it plans to do with the acquired firm.

See: Financial Consumer Agency of Canada publishes BNPL pilot study

What does Credit Kudos do?

via their Website:  “Credit Kudos’ intelligent products enable businesses to leverage Open Banking to enhance affordability and risk assessments. Our predictive insights are built by combining transaction and loan outcome data. Our products help lenders streamline underwriting, improve accuracy in decision-making, and support customers after acquisition through our engagement tools.”

Why Apple Wants Credit Kudos

BNPL acquisitions have been occurring faster than Ben Affleck finds new girlfriends:

  • Block, nee Square, acquired AfterPay for somewhere between $15 million and $29 million (the valuation was at the higher amount when the deal was announced, but Block’s stock price fell by ~50% by the time the deal closed).

See:  UK Research: How consumers use savings apps

  • PayPal purchased BNPL company Paidy in 2021 for $2.7 billion.
  • Zip acquired New York-based Quadpay in 2020 for nearly $300 million, and is now looking to purchase Sezzle.

It would be a real coup for Apple to acquire a BNPL capability for just $150 million.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Why Apple Acquired An ‘Open Banking’ FintechThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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