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BIS guides central banks on balancing AI innovation with risk management
In its latest report, the BIS addresses the burgeoning role of AI in central banking, underscoring the critical balance between promoting innovation and managing associated risks.
The report outlines key strategies for central banks to safely incorporate AI technologies within their operational frameworks, according to ABA Banking Journal.
Central to BIS’s guidance is the establishment of an interdisciplinary AI committee aimed at overseeing AI integration and ensuring compliance with established ethical standards. Additionally, the report encourages the adoption of responsible AI principles and stresses the importance of conducting thorough risk assessments to identify potential vulnerabilities introduced by AI tools.
A significant part of the report highlights the need for revising current governance and risk management frameworks to accommodate AI’s unique challenges. “The safe and proper usage of AI across the central bank functions may demand changes to existing risk management and governance frameworks,” the BIS report notes. This statement emphasizes the importance of updating traditional models to ensure that AI technologies are implemented effectively and safely, mitigating risks while enhancing efficiency and decision-making processes within central banks.
In response to these recommendations, the BIS suggests that central banks take a proactive approach by reviewing and adapting their governance structures to better align with the evolving technological landscape. This strategic shift will not only safeguard the integrity of financial systems but also leverage AI’s potential to improve service delivery and policy implementation.
Semgrep bags $100m in Series D to elevate AI-driven code security
Semgrep, an application security platform, has successfully secured a substantial $100m in its Series D funding round.
The round was spearheaded by Menlo Ventures, with significant contributions from existing stakeholders including Felicis Ventures, Harpoon Ventures, Lightspeed Venture Partners, Redpoint Ventures, and Sequoia Capital. This latest injection of capital brings the total funds raised by the company to $204m.
Founded with the mission to revolutionize code security, Semgrep offers a robust AppSec Platform designed to meet the modern challenges of securing complex codebases without hindering the speed of development cycles. The platform distinguishes itself through a high signal-to-noise ratio, prioritizing impactful security measures while maintaining developer productivity and a positive security perception.
The newly acquired funds are earmarked for several strategic initiatives. Semgrep plans to attract top-tier AI and program analysis talent to further enhance its technological lead. Additionally, the investment will be used to broaden the reach of its product offerings beyond the traditional security audience and bolster its Go-To-Market team with industry experts from notable organizations such as Hashicorp and Elasticsearch.
Further enriching Semgrep’s strategic direction, the company has welcomed new expertise into its ranks. Recently, Garrett Souza, former SVP Americas at Matillion and Enterprise Sales Leader at Snyk, has been appointed as Vice President of Sales. Additionally, Mark McLaughlin, ex-CEO of Palo Alto Networks, has joined as an Angel Investor and Advisor, underscoring the industry’s confidence in Semgrep’s trajectory.
“AI is having a profound impact on all areas of technology. Semgrep’s approach to autonomous code security is a perfect example and represents the future of application security,” Matt Murphy, Partner at Menlo Ventures and new Board Member of Semgrep, expressed his enthusiasm for the company’s direction.
Previously, the company had announced its Series C funding in April 2023, which had already set the stage for its current expansive growth phase. The continuing investment trend in Semgrep highlights its potential and commitment to leading the charge in AI-powered code security.
Moneyhub and Money Squirrel partner to enhance Open Banking for SMEs
Moneyhub, a leading data, intelligence, and payments company specialising in Open Banking, Open Finance, and Open Data solutions, has partnered with Money Squirrel, an emerging FinTech focused on financial management for small businesses.
The collaboration aims to power Money Squirrel’s recently launched app, designed to help SMEs automate savings and manage VAT payments efficiently.
The partnership addresses a longstanding challenge for SMEs—gaining access to Open Banking technology to optimise financial management. While SMEs form the backbone of the economy, many have struggled to integrate Open Banking due to outdated systems and the lack of standardisation. Money Squirrel’s app demonstrates how Open Banking data and payments can create meaningful financial efficiencies for small businesses.
Moneyhub develops FCA-regulated Open Data platforms that enable businesses to leverage consent-driven data, insights, and payment solutions. The company’s ISO 27001-certified software powers personalised financial experiences, helping businesses across multiple sectors, including finance, media, and retail. Its API technology aggregates data, provides insights, and enables seamless Open Banking payments.
Kim Jenkins, MD of API at Moneyhub, said, “Collaborating with Money Squirrel is a significant step in making Open Banking technology accessible to both SMEs and larger institutions. We are thrilled to help simplify financial management and unlock growth opportunities for smaller businesses by powering Money Squirrel’s app with our API. This partnership highlights our commitment to driving financial inclusivity and innovation across the board.”
Andreea Daly, founder and chief executive officer of Money Squirrel, said, “Having Moneyhub’s API technology has been critical to launching our app, but it’s also encouraging to be aligned with them on the aim of making Open Banking and Open Finance more inclusive. Having founded a business, I’ve experienced the frustrations of managing cash flow – spending countless hours calculating VAT and budgeting for future expenses. Therefore, we know firsthand how having the technology to remove these frustrations can unlock so much potential for businesses.”
Trucordia acquires CADA Insurance Services to expand footprint in Louisiana
Trucordia, a leading insurance provider with a team of 5,000 professionals, has announced the acquisition of CADA Insurance Services’ insurance business, further strengthening its presence in Louisiana.
The acquisition is part of Trucordia’s strategy to integrate businesses with strong growth potential in key industries and markets, according to InsurTech Insights.
By bringing CADA Insurance under its umbrella, Trucordia aims to enhance its service offerings and expand its ability to meet the diverse insurance needs of clients. The financial terms of the deal were not disclosed.
CADA Insurance has a strong presence in Louisiana, with multiple offices in Baton Rouge, Chalmette, Gretna, and Kenner. The company provides a variety of insurance solutions, including auto, home, commercial, general liability, and workers’ compensation coverage, catering to a wide range of clients across the state.
Trucordia, known for its client-centric approach, is dedicated to delivering exceptional opportunities and experiences for its clients, employees, and partners.
The company’s expansion strategy focuses on acquiring successful enterprises that align with its vision for long-term growth and enhanced service delivery.
Welcoming CADA Insurance to the Trucordia family, CEO Felix Morgan highlighted the shared commitment to client relationships and service excellence. “The CADA Insurance team is a welcome addition to Trucordia,” Morgan said. “They share our passion for building long-term relationships and partnering with clients to identify and best meet their insurance needs.”
Alta Signa expands insurance capacity with Westfield Specialty International partnership
Alta Signa has added Westfield Specialty International to its insurance capacity panel, enhancing its ability to underwrite Directors & Officers (D&O) and Financial Institutions (FI) risks across the European Economic Area (EEA) and Switzerland.
This partnership introduces an additional €10m capacity, split equally between D&O and FI lines, bolstering Alta Signa’s existing Lloyd’s-backed panel.
The move strengthens Alta Signa’s position as a leading Managing General Agent (MGA) in Europe, ensuring broader insurance capacity and more comprehensive solutions for brokers and policyholders.
Gerard van Loon, CEO of Alta Signa, emphasized, “The addition of Westfield Specialty International to our panel is a significant milestone in Alta Signa’s journey to provide comprehensive and competitive insurance solutions in the specialty market. Westfield Specialty International’s expertise and robust capacity will complement our existing offerings and reinforce our ability to meet the evolving needs of brokers and clients across the EEA region and CH. We look forward to a productive partnership built on shared values of collaboration, integrity, and entrepreneurship.”
This strategic partnership adds €5m in D&O capacity and €5m in FI capacity to Alta Signa’s existing Lloyd’s panel, reinforcing the company’s dedication to expanding its insurance options and providing robust solutions for brokers and policyholders.
Alta Signa’s updated insurance panel now includes:
- Aviva
- Axeria
- Lloyd’s Syndicates, including Aspen, Newline, and Westfield Specialty International
- Markel
- SiriusPoint
- Sompo
James Johnston, Management Liability Class Underwriter from Westfield Specialty International, said, “We are excited to join Alta Signa’s independent capacity panel and bring our expertise to support their D&O and Financial Institutions portfolios across the EEA region and Switzerland. Alta Signa’s reputation for technical underwriting expertise and local market knowledge aligns perfectly with our commitment to delivering high-quality, specialty insurance solutions.”
Sokin lands $15m from BlackRock to fuel global expansion
UK-based payments firm Sokin, which provides international payment solutions for businesses, has secured $15m in debt funding from funds and accounts managed by BlackRock.
This investment follows a $31m strategic investment from Morgan Stanley Expansion Capital.
Sokin has experienced substantial growth in recent months, including a 51% increase in new account openings since the Morgan Stanley investment in July. The company has also expanded its workforce by 130% and recently acquired Norwegian FinTech Settle Group AS, gaining a European EMI license to further its expansion in the region.
The fresh capital will allow Sokin to expand its market presence, develop new products, and scale its team significantly. The company plans to open new offices in London, New York, Toronto, and Dubai, strengthening its global footprint.
Sokin has garnered support from several high-profile investors, including Gary Marino, former chief commercial officer at PayPal, Mark Britto, former chief product officer at PayPal, and Aurum Partners, the investment fund linked to the owners of the San Francisco 49ers. Additionally, former England and Manchester United defender Rio Ferdinand is among its backers.
Founded in 2019, Sokin aims to remove the barriers associated with international payments. The company enables businesses to transfer, hold, and exchange over 100 currencies through its multi-currency IBAN and local currency accounts, offering a streamlined solution for managing global transactions.
Sokin is currently operating at a transactional volume run-rate of over $4.5bn annually and supports a variety of industries, including freight, logistics, and Premier League football clubs, helping them manage global payments with efficiency and transparency.
Sokin CEO & Founder Vroon Modgill said, “We’re on a mission to make a major impact and become the go-to partner for businesses taking on the global stage. This backing from BlackRock serves as a testament to the strength of our proposition, and the rate in which we’ve managed to onboard new business customers. With this funding, we’ll further elevate our product offering, expand our international team, and break into new, untapped markets.”
Tim Fenwick, director at BlackRock Growth Debt, said, “Sokin has developed a unique and compelling proposition that helps solve major challenges facing international businesses. We are glad to support Sokin’s rapid growth trajectory and welcome them to our diverse portfolio of high-growth companies.”
WiseLayer raises $7.2m to enhance AI-powered finance automation
WiseLayer, a New York-based AI FinTech company specialising in digital workers for finance and accounting teams, has raised $7.2m in funding.
The investment round was led by Canaan Partners, with participation from K5 Global, The Fintech Fund, Unpopular Ventures, and several industry angels.
WiseLayer develops AI-powered digital agents designed to automate complex, manual processes within finance and accounting teams. The company’s suite of AI workers includes Angela, an AI agent for accruals and revenue recognition, and Dennis, an AI agent for discrepancies and financial anomalies.
Additional AI agents are being developed to handle bank reconciliations, fixed asset depreciation, lease accounting, and prepaid expenses. More than 100 companies, including mid-sized firms and public corporations, currently use WiseLayer’s AI workforce.
The fresh funding will be used to enhance WiseLayer’s existing AI agents, introduce new automation capabilities, and expand its market presence.
Brendan Dickinson, general partner at Canaan Partners, said, “The exceptional early traction that WiseLayer has achieved with its many large customers, each of whom love their product, demonstrates a clear market need.
“We’re thrilled to support WiseLayer’s next phase of growth as they enhance their AI-powered digital workforce for finance and accounting teams.”
Josh Stein, CEO and co-founder of WiseLayer, added, “Finance & accounting teams have some of the most brilliant people at any company, yet their brainpower is often spent on recurring administrative and compliance tasks like accruals, rev rec, and more.
“WiseLayer’s mission is to build AI agents to automate these repetitive, laborious processes with precision, so that these highly-skilled people can focus on strategic financial initiatives that drive company growth.”
Allra FinTech raises $9.1m Series B to expand early payment services
Korean FinTech company Allra FinTech, which operates the early payment service “Allra,” has raised $9.1m in its Series B funding round.
The investment was led by KB Kookmin Card, which contributed $6.8m, making it Allra FinTech’s second-largest shareholder, according to a report from WowTale. Singapore-based Altara Ventures and Vietnam-based Do Ventures jointly invested $2.3m in the round.
Allra FinTech’s flagship service, Allra Early Payment, is designed to alleviate settlement delays faced by sellers on online marketplaces. Since its inception, the platform has processed over $3bn in cumulative settlements, cementing its position as a leader in the early payment sector.
With the new funding, Allra FinTech plans to expand its team and hire talent to support the growth of the business.
Kim Sang-soo, CEO of Allra FinTech, said, “Over the past four years, we have focused on maintaining the strengths of our ultra-simple early payment service. Even during the Timon-Wemakeprice crisis, we upheld our responsibility as a receivables transferee by refraining from demanding repayment from sellers. This commitment has earned us recognition as a reliable service in the industry, and we are truly grateful for this trust.
“With the Series B funding, we aim to expand into traditional wholesale and retail distribution markets, postpaid service markets, and global services starting in 2025. Our mission remains clear: to become a fintech company that solves the financial challenges of business owners everywhere.”
KASISTO RAISES ADDITIONAL $15.5 MILLION FROM FIS AND WESTPAC IN OVERSUBSCRIBED SERIES C ROUND
Kasisto, creators of KAI, the leading digital experience platform for the financial services industry, today announced a $15.5 million Series C extension, led in the United States by Fidelity Information Services, LLC and internationally by Westpac Banking Corporation, with participation from BankSouth. This brings the total Series C funding to $31 million.
Kasisto is the market leader in conversational AI (AI), and its KAI platform powers the most intelligent and financially aware digital assistants in the financial services industry. Kasisto intends to use the additional funds to continue investing in product development, strategic go-to-market strategies, and the expansion of alliances with leading financial services providers.
The financial services industry is focused on digital channel transformation and consumer interaction. Since the beginning of the pandemic, digital use has accelerated at an astounding rate. Digital assistants and an amazing conversational AI platform are critical to successfully transforming customer experience and service paradigms, according to global fintech businesses and financial institutions of all sizes.
FIS is a global leader in financial technology solutions for merchants, banks, and capital markets organizations. Kasisto is being invested in as part of FIS’ commitment to advance how the world pays, banks, and invests.
“We believe the future of banking experiences will become ever more contextual and will be powered by leading AI technologies that create more engaging interactions for every customer,”
“We are excited to be investing in Kasisto and exploring opportunities to leverage their KAI technology across our digital banking capabilities to more humanize digital consumer interactions.”
Stephane Wyper, SVP of FIS Impact Ventures.
Westpac, an Australian multinational banking institution with over 12 million customers, has partnered with Kasisto to implement world-leading AI orchestration technology that seamlessly delivers customer requests to the most knowledgeable digital assistant. As a result, both customers and employees have a more seamless experience.
“The cycles of innovation are getting faster, and so are the needs and expectations of our customers who want quick, intuitive, and personalized service,”
“Kasisto’s technology has enabled us to evolve from traditional chatbots to a sophisticated, human-like conversational experience, unified for the first time under a single AI orchestration platform. This means customer queries will be answered more efficiently with reduced wait times and fewer hand-offs.”
Scott Collary, Westpac Group Executive, Customer Services and Technology.
BankSouth, a US Community Bank in Georgia and a successful early adopter of Kasisto’s multi-tenant KAI platform, also participated in the round. BankSouth’s use of the KAI Consumer Banking solution demonstrates how a digital assistant can not only service clients but also help the business thrive.
“We have seen the successful adoption of conversational AI from our online banking customer base, and both our customers and bankers have found Kasisto’s technology to be effective and easy to use,”
“The more we work with this robust platform, the deeper and richer the experience has become for our customers. We fully expect that our highly personalized, digital assistant provided by KAI will be an increasingly integral component of our customer’s banking experience, and this investment in Kasisto demonstrates our commitment to making that happen.”
Harold Reynolds, BankSouth Chairman, and CEO.
“The expansion of our Series C is a resounding vote of confidence in our vision,”
“The funding will allow us to continue to lead and innovate in the conversational AI space. This year, we have seen our strongest growth to date and expansion in our global and US community banking businesses. I am proud of what we have accomplished and deeply grateful to our talented team that is working tirelessly, with customers and partners, to shape the future of banking.”
Zor Gorelov, Co-Founder and CEO of Kasisto.
WEBBANK COLLABORATES WITH AMERICAN EXPRESS TO EXPAND CREDIT CARD ISSUING
WebBank announced an agreement with American Express to become a card issuer and participant in the American Express network. WebBank will be able to issue credit cards and payment solutions with American Express perks as a result of the agreement. WebBank was chosen by American Express as one of its primary issuing banks focused on the fintech industry.
“WebBank is pleased to have a strategic alliance with American Express that broadens the product offerings that we’re able to make available through our strategic partner platforms,”
“It’s a great example of two industry leading organizations creating value for and through the broader fintech community.”
Jason Lloyd, President & CEO of WebBank.
“Integrating WebBank into the American Express ecosystem is another step toward empowering fintechs to offer payment innovations on the Amex network,”
“We look forward to working closely with WebBank to continue expanding the reach of the brand and bringing new benefits to fintechs and consumers.”
William Stredwick, Senior VP and GM, Global Network Services NA, American Express.
WebBank intends to start issuing Amex cards through fintechs later this year.
CRYPTO.COM RECEIVES REGISTRATION APPROVAL AS CRYPTOASSET BUSINESS FROM UK FINANCIAL CONDUCT AUTHORITY (FCA)
Crypto.com, the world’s fastest-growing cryptocurrency platform, announced today it has received regulatory approval from the Financial Conduct Authority (FCA) in the United Kingdom (UK) as a crypto asset business. This registration will enable Crypto.com to offer a suite of products and services to customers in the UK, compliant with local regulations.
“This is a significant milestone for Crypto.com, with the UK representing a strategically important market for us and at a time when the government is pushing forward with its agenda to make Britain a global hub for crypto asset technology and investment,”
“We are committed to the UK market and we look forward to developing our platform and presence in the UK further by expanding our offering to customers while continuing to work with regulators.”
Kris Marszalek, Co-Founder & CEO of Crypto.com.
In March, Crypto.com announced the addition of a UK General Manager and a Global Head of Sustainability and ESG, among other senior hires in the UK. According to study by BanklessTimes, the UK is viewed as a high-potential market for cryptocurrencies due to a 650% growth in adoption from 2018 to 2021.
With more than 50 million users globally, Crypto.com actively expands and grows its ecosystem. With today’s announcement, Crypto.com continues to gain regulatory licenses after receiving in-principle approval for a Major Payment Institution License from the Monetary Authority of Singapore, provisional approval of its Virtual Asset License from the Dubai Virtual Assets Regulatory Authority, registration under the Electronic Financial Transaction Act and as a Virtual Asset Service Provider in South Korea, registration in Italy from the Organismo Agenti e Mediatori (OAM), reg.
SCALABLE CAPITAL SURPASSES €10 BILLION IN CLIENT ASSETS
Scalable Capital has exceeded the ten-billion-euro mark in client assets. Within one year, the company has more than doubled client assets. With more than 600,000 clients on its platform, Scalable Capital is one of the leading digital investment platforms in Europe and one of the fastest-growing European FinTechs.
‘In just a few years, our assets went from zero to ten billion euros. We’re delighted about this milestone, especially in view of the current challenging market environment. It shows that investors remain focused on their long-term wealth accumulation’,
‘This achievement further motivates us to enhance our offering and expand our investment platform across Europe. The entire team continues to deliver outstanding work. Together, we want to make Europe a continent of investors – and we are just getting started!’
Erik Podzuweit, co-founder and co-CEO of Scalable Capital.
Scalable Capital has worked to enable everyone to become an investor since it was founded in 2014. It has constantly used ETFs and other affordable financial instruments to achieve this goal, first with its digital wealth management system and later with its online broker. Exchange-traded funds (ETFs) are by far the most popular investment category in the Scalable Broker, according to a recent analysis: two-thirds of the clients participate in ETFs that, for example, reflect stock market indices like the MSCI World. In this context, the popularity of ETFs increases with investor age, with over three-quarters of investors between the ages of 18 and 26 investing in ETFs compared to only 60% of investors over the age of 65. The information demonstrates how Scalable Capital’s straightforward and reasonably priced brokerage solution has exposed young investors to long-term and diversified investing.
Scalable Capital has consistently improved its product over the past few years. The company began a cryptocurrency offering at the conclusion of the previous year, following the debut of the neo broker in 2020. Customers can invest in cryptocurrencies with “Scalable Crypto” simply and intuitively thanks to secure access to regulated exchanges in Germany. Since the cryptocurrency securities are kept in the clients’ current brokerage accounts, a separate wallet is not necessary.
A wider range of people can now invest in the capital market thanks in part to the company’s ongoing efforts to remove entry barriers. For instance, the initial 10,000 euro minimum investment requirement for Scalable’s digital wealth management has been greatly decreased. By the end of 2021, any client will be able to start investing through a savings plan with just 20 euros per month. Without a savings plan, one-time deposits can be made for as low as 1,000 euros. Customers of Scalable Broker can use savings plans to invest in stocks, ETFs, and cryptocurrencies starting at just one euro, with no order fees. Scalable Capital has unveiled “Wealth Select,” a digital wealth management platform that includes eight more ETF-based investing strategies. This enables asset management that is even more specifically suited to the preferences of investors.
In addition, Scalable Capital is working to establish itself as Europe’s top digital investment platform. Now, investors may easily and affordably access trading and savings programs in stocks, ETFs, and cryptocurrencies in France, Spain, Italy, and Austria. Thus, the company has already made contact with 60% of the EU’s population.
BANKIFI SECURES $4.8 MILLION INVESTMENT FOR NORTH AMERICAN EXPANSION
BankiFi, a leading provider of embedded banking solutions for small and medium businesses (SMBs), has secured $4.8 million for global expansion into North America. This strategic growth investment gives BankiFi the capital to provide its industry-leading embedded banking platform to more than two million SMBs across four continents by 2024.
BankiFi provides an open cash management platform and architecture that financial institutions embed into their current digital banking infrastructure to address the specific issues of their SMB portfolio. The investment is unique as all investors are existing shareholders, proving their confidence in BankiFi’s ability to help North American financial institutions benefit from its technology.
Technology investments have been slowing down this year, and to see our investors show such a strong commitment is a huge vote of confidence in BankiFi’s direction and growth, Our mission is to make all aspects of cash management and payments easier for SMBs everywhere, and this investment is another huge step to making that a reality.”
– Keith Riddle, CEO of BankiFi Americas.
This funding is led by Praetura Ventures, whose mission is to help companies reach their potential with both monetary and operational support.
BankiFi has proven to be an industry-leading open cash management provider in Europe, Australia, New Zealand, and other countries, Now that they have launched in North America, BankiFi has an opportunity for dramatic growth. We’re looking forward to continuing our partnership and seeing their solutions continue to transform bank channels, to support SMBs around the world.”
– David Foreman, managing director of Praetura Ventures.
MOTIVE PARTNERS COMPLETES SALE OF GLOBAL SHARES TO J.P. MORGAN
Motive Partners, a specialist private equity firm focused on growth equity and buyout investments in software and information services companies that serve the financial services industry has received the necessary regulatory approvals and completed the sale of Global Shares to J.P. Morgan. Motive invested in Global Shares in August 2018, acquiring a ~40% stake in the business.
Global Shares will now undertake its next chapter of expansion under new ownership as part of J.P. Morgan, having expanded to approximately $200 billion in assets under administration spanning over 800,000 corporate employee participants. As stated while signing the agreement,
J.P. Morgan, which will maintain its Clonakilty, Ireland headquarters following the acquisition, will attempt to integrate Global Shares into its Asset & Wealth Management line of business. Both Motive Industry Partner Andy Stewart and Motive Industry Partner Neil Cochrane will leave their positions on the board of directors as part of the closing.
“We are delighted with the growth and expansion of Global Shares, and the impact this business has had for its clients in recent years. I believe this to be a great example of Ireland’s exceptional financial technology talent and environment, and we’re grateful to Tim and the whole Global Shares team for their partnership. It has been a privilege to work with them and we look forward to the many future successes that lie ahead for the Global Shares team as part of J.P. Morgan”.
Andy Stewart, Industry Partner at Motive Partners and former Executive Chairman of Global Shares.
“I welcome the completion of the acquisition of Global Shares by J.P. Morgan. This is a stellar example of the Ireland Strategic Investment Fund, through its investment in Motive, helping to develop and grow an Irish business to secure this investment from a global player such as J.P. Morgan. I also welcome the fact that the company will retain its headquarters in Clonakilty during the next phase of its growth agenda, thereby providing future employment in financial technology in the region”.
Paschal Donohoe, Minister for Finance for Ireland.
WISE AND PLAID LAUNCH OPEN FINANCE AGREEMENT TO ENABLE SECURE FINANCIAL CONNECTIVITY
Plaid, the API-first data network powering the digital financial ecosystem, and Wise, the global technology business developing the easiest way to move money around the world, today announced an open finance agreement to give clients a frictionless way to move money between various financial institutions.
According to a 2021 survey by Plaid and The Harris Poll, fintech has become so integral to daily life that the majority of American consumers (69%) would think about switching institutions if their primary account could not connect to their preferred fintech apps and services. Wise and Plaid have joined up to provide millions of customers with the safe data access they require to lead financially healthy lifestyles in order to satisfy this growing demand.
The integration, which is built on Plaid’s sector-aligned open finance solution Core Exchange, enables Wise’s 13 million global clients to transfer money easily and securely between their own accounts. Customers can utilize Wise with thousands of Plaid-powered apps and services by simply connecting their Wise USD local account details to the app of their choice. As of May 2022, the Plaid network supported more than 6,000 apps, including 9 of the top 10 most popular finance apps available on the Android + App Store, including Venmo, Truebill, Chime, and others.
Early findings indicate that Wise customers are already utilizing a range of use cases, including peer-to-peer payments and investing platforms, with the Core Exchange integration being live for these customers. Business users utilize it for a variety of purposes, including paying credit card bills, paying tax in several states, connecting to other banks internationally, and sending money to payroll firms in the United States.
“We know being able to conveniently use Wise to manage their global finances is vital to our customers, especially for those who are using Wise as their primary account,”
“By working with Plaid, we’re giving customers the ability to connect their accounts to the apps and services they know and love in the US instantly and without hidden fees. As we build money without borders, our customers will continue to see deeper integrations in the market to ensure the Wise account meets the local functionality needed for American consumers.”
Sharon Ann Kean, Senior Director of Global Expansion at Wise.
The partnership with Wise is a shining example of Plaid’s support for universal data access, which would give users more access and insights across all of their accounts while giving them choice over where and how their data is used and permissioned.
“Delivering secure data connectivity solutions to consumers is central to our mission of unlocking financial freedom for everyone,”
“Our Wise partnership ensures access, transparency, and control for millions of consumers to securely connect their accounts to the apps and services they choose. We are excited to deliver on our joint commitment to universal data access and enable even more ways for Wise customers to seamlessly move and manage their money to lead healthier financial lives.”
Raja Chakravorti, Universal Data Access Lead for Plaid.
All data partners, from the biggest financial institutions and regional banks to fintechs, neobanks, and digital banking platforms, receive safe, simple-to-implement API products from Plaid’s data connectivity solutions, including Core Exchange and Plaid Exchange. For the benefit of their clients, they assist businesses in promptly and securely facilitating data connectivity. Core Exchange, Plaid’s newest product, was introduced in May and offers data partners an easy, cost-free solution to implement the Financial Data Exchange (FDX) API protocol.
LENDING VERIFICATION FINTECH TRUEWORK RAISES $50 MILLION
Truework, a fintech company that provides income and employment verification for the nation’s largest mortgage, auto, and consumer lenders to approve more borrowers in a fraction of the time, today announced it raised $50 million in Series C funding.
Sequoia Capital, Activant Capital, and Khosla Ventures returned investors joined G Squared in leading the Series C investment. Indeed, Human Capital and Four Rivers Group are some recent investors. The closing of this round will enable the company to continue expanding as a reliable, secure, and user-friendly platform for income and employment verification, as well as support future product development and increased hiring.
Truework streamlines the loan process for both the lender and the borrower by digitizing and making it easier for banks, lenders, payroll providers, and HR departments to verify income and employment. Truework checks income for major credit extensions like mortgages and auto loans using customer permission as a foundation.
“Automation and efficiency are at the heart of what we do at Truework, and building the future with a consumer-first mindset goes into every decision we make,”
“With access to over 35 million (and counting) US employee records, Truework enables lenders to convert more borrowers and make faster credit decisions with verified income. Series C funding will help us further empower both sides of the verification equation and help build a more efficient, secure, and stable credit system.”
Ryan Sandler, CEO, Truework.
Truework links customers to more than 17,000 lenders nationwide, from small banks to local credit unions, frequently enabling income verification within seconds, increasing applicant conversion by up to 14%, and lowering verification cost per loan by 60%.
In 2022, more than 20,000 small businesses and 100 corporations will use Truework to fulfill more than 12 million requests for income and employment. Twenty of the top 25 lenders, including Fairway Independent Mortgage, Caliber, Guaranteed Rate, Citizens Bank, and LoanDepot, are among its mortgage clients. Customers like Carvana, Octane, and Figure have benefited from its recent entry into the consumer loan market.
“Truework’s vision, leadership, and technology are skillfully-calibrated to the current landscape,”
“Rising rates and market uncertainty are catalyzing lenders to optimize their approval process. People applying for loans expect decisions to be made quickly, they seek options that offer control over personal data and insight into how it’s used. Truework has delivered that solution to some of the nation’s largest banks and most future-forward investors. We are excited about Truework’s future vision to empower consumers and are proud to support their expansion.”
Spencer McLeod, Partner, G Squared.