SoftBank leads $440 million investment in UK fintech OakNorth, valuing it at $2.8 billion

British digital bank OakNorth said Friday it secured $440 million in an investment round led by Japan’s SoftBank. The firm, which lends to small-to-medium enterprises through its digital platform, said it had raised $390 million from SoftBank’s $100 billion Vision Fund, with the remaining capital coming from Clermont. The deal gives the three-year-old firm an eye-watering $2.8 billion post-money valuation, making it Europe’s most valuable private fintech group. OakNorth’s announcements confirmed


British digital bank OakNorth said Friday it secured $440 million in an investment round led by Japan’s SoftBank. The firm, which lends to small-to-medium enterprises through its digital platform, said it had raised $390 million from SoftBank’s $100 billion Vision Fund, with the remaining capital coming from Clermont. The deal gives the three-year-old firm an eye-watering $2.8 billion post-money valuation, making it Europe’s most valuable private fintech group. OakNorth’s announcements confirmed
SoftBank leads $440 million investment in UK fintech OakNorth, valuing it at $2.8 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: ryan browne, alex rumford
Keywords: news, cnbc, companies, leads, growth, softbank, digital, billion, capital, oaknorth, uk, valuing, softbanks, fintech, 440, investment, million, firm


SoftBank leads $440 million investment in UK fintech OakNorth, valuing it at $2.8 billion

British digital bank OakNorth said Friday it secured $440 million in an investment round led by Japan’s SoftBank.

The firm, which lends to small-to-medium enterprises through its digital platform, said it had raised $390 million from SoftBank’s $100 billion Vision Fund, with the remaining capital coming from Clermont.

The deal gives the three-year-old firm an eye-watering $2.8 billion post-money valuation, making it Europe’s most valuable private fintech group.

OakNorth’s announcements confirmed reports overnight that said the company had received a new cash injection from the Japanese tech giant.

Speculation over the funding began late last year after a Times of London report said that SoftBank was in talks with OakNorth and fellow British fintech firm Revolut about investing in both businesses via its technology investment fund.

“We decided that, with (SoftBank’s) capital, and with their network, that we would be able to significantly expand to growth plans we have for the business,” Rishi Khosla, co-founder and chief executive of OakNorth, told CNBC over the phone.

“Aligned with our mission to support the financing needs of growth SMEs across the globe, we thought SoftBank… would be a really good investor to have alongside our existing strong investors.”


Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: ryan browne, alex rumford
Keywords: news, cnbc, companies, leads, growth, softbank, digital, billion, capital, oaknorth, uk, valuing, softbanks, fintech, 440, investment, million, firm


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Fintech start-up Tink raises $64 million at $270 million valuation

Swedish financial technology start-up Tink says it’s raised 56 million euros ($64 million) in a funding round aimed at fueling its expansion plans. The funding exercise values Tink at approximately 240 million euros ($273 million), a person familiar with the deal told CNBC on the condition of anonymity as the valuation has not been publicly announced. The Stockholm-based firm, which is backed by European banks SEB, Nordea and ABN AMRO, offers an app for people to get a snapshot of how they’re sp


Swedish financial technology start-up Tink says it’s raised 56 million euros ($64 million) in a funding round aimed at fueling its expansion plans. The funding exercise values Tink at approximately 240 million euros ($273 million), a person familiar with the deal told CNBC on the condition of anonymity as the valuation has not been publicly announced. The Stockholm-based firm, which is backed by European banks SEB, Nordea and ABN AMRO, offers an app for people to get a snapshot of how they’re sp
Fintech start-up Tink raises $64 million at $270 million valuation Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: ryan browne
Keywords: news, cnbc, companies, million, 270, startup, valuation, nordea, funding, venture, seb, 64, round, fintech, abn, tink, technology, raises


Fintech start-up Tink raises $64 million at $270 million valuation

Swedish financial technology start-up Tink says it’s raised 56 million euros ($64 million) in a funding round aimed at fueling its expansion plans.

The funding exercise values Tink at approximately 240 million euros ($273 million), a person familiar with the deal told CNBC on the condition of anonymity as the valuation has not been publicly announced.

The Stockholm-based firm, which is backed by European banks SEB, Nordea and ABN AMRO, offers an app for people to get a snapshot of how they’re spending across all their bank accounts.

But it also licenses its technology to banks with partnership deals, through which it either integrates its platform with their apps or helps them develop new standalone apps.

For instance, the company joined forces with ABN AMRO to help the Dutch lender create a new financial management app called Grip.

Tink said Thursday it had picked up fresh capital in a venture round that was led by Insight Venture Partners, with backing from SEB, Nordea’s venture capital arm and ABN AMRO’s corporate venture fund.

Christian Clausen, former chief executive of Nordea, and Nikolay Storonsky, co-founder and chief executive of fintech start-up Revolut, also invested in the company.


Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: ryan browne
Keywords: news, cnbc, companies, million, 270, startup, valuation, nordea, funding, venture, seb, 64, round, fintech, abn, tink, technology, raises


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HSBC and Goldman Sachs back fintech firm Bud’s Series A funding round

British fintech start-up Bud said Monday that it had secured $20 million in a funding round co-led by HSBC and Goldman Sachs. Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with. “The market dynamic is such that open banking is a much bigger change for banks than I think people realize,” he told CNBC. “Open banking essentially allows the customer to get their banking data and make payments from an


British fintech start-up Bud said Monday that it had secured $20 million in a funding round co-led by HSBC and Goldman Sachs. Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with. “The market dynamic is such that open banking is a much bigger change for banks than I think people realize,” he told CNBC. “Open banking essentially allows the customer to get their banking data and make payments from an
HSBC and Goldman Sachs back fintech firm Bud’s Series A funding round Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: ryan browne, luke macgregor, bloomberg, getty images
Keywords: news, cnbc, companies, series, customer, round, sabadell, hsbc, fintech, buds, banking, open, data, venture, firm, investec, sachs, banks, goldman, services, funding


HSBC and Goldman Sachs back fintech firm Bud's Series A funding round

British fintech start-up Bud said Monday that it had secured $20 million in a funding round co-led by HSBC and Goldman Sachs.

The London-based company’s platform lets banks update their apps to give users access to financial services products from rivals. Banks can also categorize a customer’s spending data using Bud’s technology to help them find more cost-efficient products.

Its offering is part of an emerging theme in the world of fintech known as “open banking,” which essentially means banks sharing their customer data with third-party providers to enable them to create new financial products.

Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with.

Ed Maslaveckas, Bud’s co-founder and chief executive, said in an interview that the sector has seen a “massive shift” from a focus on competitive rates and services to a digital-oriented customer experience and a “marketplace” banking model.

“The market dynamic is such that open banking is a much bigger change for banks than I think people realize,” he told CNBC. “Open banking essentially allows the customer to get their banking data and make payments from any app or service of their choosing.”

Bud’s Series A funding round — an early-stage investment — also got backing from other big lenders including Australia’s ANZ, South Africa’s Investec and Spain’s Banco Sabadell. Investec invested through its venture fund INVC while Banco Sabadell participated via its venture arm InnoCells.


Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: ryan browne, luke macgregor, bloomberg, getty images
Keywords: news, cnbc, companies, series, customer, round, sabadell, hsbc, fintech, buds, banking, open, data, venture, firm, investec, sachs, banks, goldman, services, funding


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Investors who believe finance is going digital now have a way to put money on the trend

ARK Investment Management is launching its first financial technology, or “fintech,” focused exchange traded fund on Monday. The actively managed “ARK Fintech Innovation ETF” began trading on the New York Stock Exchange Arca under the ticker “ARKF.” It includes public companies that could use technology to bypass incumbent financial players by making things faster and cheaper, the company said. The idea for a fintech ETF had been on the New York-based firm’s road-map for a few years, CEO Catheri


ARK Investment Management is launching its first financial technology, or “fintech,” focused exchange traded fund on Monday. The actively managed “ARK Fintech Innovation ETF” began trading on the New York Stock Exchange Arca under the ticker “ARKF.” It includes public companies that could use technology to bypass incumbent financial players by making things faster and cheaper, the company said. The idea for a fintech ETF had been on the New York-based firm’s road-map for a few years, CEO Catheri
Investors who believe finance is going digital now have a way to put money on the trend Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: kate rooney, source
Keywords: news, cnbc, companies, money, digital, technology, fintech, bitcoin, traditional, financial, investors, trend, etf, believe, companies, wood, square, finance, way, going, according


Investors who believe finance is going digital now have a way to put money on the trend

ARK Investment Management is launching its first financial technology, or “fintech,” focused exchange traded fund on Monday.

The actively managed “ARK Fintech Innovation ETF” began trading on the New York Stock Exchange Arca under the ticker “ARKF.” It includes public companies that could use technology to bypass incumbent financial players by making things faster and cheaper, the company said. This is the firm’s seventh ETF since launching in 2014.

The idea for a fintech ETF had been on the New York-based firm’s road-map for a few years, CEO Catherine Wood told CNBC. But ARK’s Japanese partner Nikko Asset Management saw the rapid growth in mobile payments in Asia, and asked if they could launch earlier than planned.

“China is really showing us the way — they didn’t have the older financial infrastructure so they could leapfrog us,” said Wood. “That business is spreading like wildfire.”

ARK has $6.5 billion assets under management.

Wood pointed to the ubiquity of giants like Alibaba, parent company of Ant Financial, and Tencent in Asia, which are both in the ETF. Those and other companies in ARKF are looking to upend traditional institutions by offering “better, cheaper, faster, and more novel and secure” services, according to Wood.

The ETF spans across three areas of technology. The first is “mobile value transfer devices,” or anything that lets someone send money or pay through a phone. Square, the ETF’s biggest holding, and PayPal focus on peer-to-peer payments and both leaders in the U.S. online payment realm and are “nipping at the traditional big bank’s heels,” Wood said.

Another key area is blockchain, the technology behind bitcoin. Despite the nosedive in bitcoin prices, Wood is still bullish on the future of it and other cryptocurrencies. She pointed to the jump in volumes, and the amount of people sending and receiving bitcoin, despite falling prices. Square, for example, lets customers buy bitcoin through the Square Cash App, and its CEO Jack Dorsey has touted its potential. By embracing crypto, Wood said “they are attracting a new breed of customer.”

Other names in the ETF include Amazon, the “original fintech player,” according to Wood, and Apple because of growth in Apple Pay.

The fund also focused on artificial intelligence, which is being used by start-ups to assess creditworthiness. Companies that don’t use AI for lending, are positioned to lose out in the modern economy, according to Wood. Baidu, Zillow, and LendingTree are also included in the ETF.


Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: kate rooney, source
Keywords: news, cnbc, companies, money, digital, technology, fintech, bitcoin, traditional, financial, investors, trend, etf, believe, companies, wood, square, finance, way, going, according


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Fintech companies raised a record $39.6 billion in 2018

Venture capital-backed financial technology companies raised a record $39.57 billion from investors globally in 2018, up 120 percent from the previous year, according to research by data provider CB Insights published on Tuesday. Funding was raised through 1,707 deals, up from 1,480 in 2017, the research said. In the last three months of the year, five companies joined the coveted ranks of fintech “unicorns”, or companies valued at more than $1 billion. Asia saw the biggest jump in number of dea


Venture capital-backed financial technology companies raised a record $39.57 billion from investors globally in 2018, up 120 percent from the previous year, according to research by data provider CB Insights published on Tuesday. Funding was raised through 1,707 deals, up from 1,480 in 2017, the research said. In the last three months of the year, five companies joined the coveted ranks of fintech “unicorns”, or companies valued at more than $1 billion. Asia saw the biggest jump in number of dea
Fintech companies raised a record $39.6 billion in 2018 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: bobyip
Keywords: news, cnbc, companies, raised, billion, research, financial, fintech, 396, funding, companies, record, 2018, deals


Fintech companies raised a record $39.6 billion in 2018

Venture capital-backed financial technology companies raised a record $39.57 billion from investors globally in 2018, up 120 percent from the previous year, according to research by data provider CB Insights published on Tuesday.

Funding was raised through 1,707 deals, up from 1,480 in 2017, the research said.

The surge in funding was due in large part to 52 mega-rounds, or investments larger than $100 million, which were worth $24.88 billion combined, the research said.

A $14 billion investment in Ant Financial, the payment affiliate of Chinese e-commerce giant Alibaba Group Holding Ltd, accounted for 35 percent of total fintech funding alone last year, the research said.

In the last three months of the year, five companies joined the coveted ranks of fintech “unicorns”, or companies valued at more than $1 billion. These include credit card provider Brex, digital bank Monzo and data aggregator Plaid.

Venture capital investors have been pouring billions of dollars into fintech companies, in the hopes that they can gain market share from incumbent financial institutions by offering easier to use and cheaper digital financial services.

Fintechs have emerged globally across all sectors of finance, including lending, banking and wealth management.

While the large rounds minted new unicorns and led funding to hit a record high in 2018, CB Insights estimates these will likely delay initial public offerings.

“IPO activity is likely to remain lackluster in 2019,” the research reads.

Asia saw the biggest jump in number of deals in 2018, growing 38 percent from the previous year and accounting for a record $22.65 billion, according to the study.

In the United States, fintechs raised a record $11.89 billion through 659 investments, while the number of deals dropped in Europe, but funding reached a record $3.53 billion.


Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: bobyip
Keywords: news, cnbc, companies, raised, billion, research, financial, fintech, 396, funding, companies, record, 2018, deals


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Square shares fall after Raymond James downgrades stock and predicts nearly 30% retreat

The firm has a $56 fair value price for Square’s stock — roughly 27 percent below where it closed on Monday. The stock has been on a tear over the past year, up 61 percent from last January. The fintech company re-filed its application for an industrial loan company charter in December after pulling it earlier in the year to answer questions from regulators. If approved, Square would also get access to a coveted feature of the banking world — deposit insurance. Revenue upside from some of its ne


The firm has a $56 fair value price for Square’s stock — roughly 27 percent below where it closed on Monday. The stock has been on a tear over the past year, up 61 percent from last January. The fintech company re-filed its application for an industrial loan company charter in December after pulling it earlier in the year to answer questions from regulators. If approved, Square would also get access to a coveted feature of the banking world — deposit insurance. Revenue upside from some of its ne
Square shares fall after Raymond James downgrades stock and predicts nearly 30% retreat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: kate rooney, yana paskova, bloomberg, getty images
Keywords: news, cnbc, companies, raymond, nearly, retreat, small, earlier, company, fintech, square, downgrades, squares, products, fall, predicts, upside, likely, james, stock, shares


Square shares fall after Raymond James downgrades stock and predicts nearly 30% retreat

The firm has a $56 fair value price for Square’s stock — roughly 27 percent below where it closed on Monday. The stock has been on a tear over the past year, up 61 percent from last January. In 2019 alone, it’s up 30 percent.

Raymond James is also bearish on Square’s move into banking. The fintech company re-filed its application for an industrial loan company charter in December after pulling it earlier in the year to answer questions from regulators. The move would allow Square to operate without going through outside banks and intermediaries. If approved, Square would also get access to a coveted feature of the banking world — deposit insurance.

“Adding more credit- and bank- related products increases the cyclicality of an already macro sensitive business and would likely be multiple dilutive,” Davis said.

Square is best known for its credit-card processing hardware. But it also has a popular peer-to-peer payment app, the Cash App, has moved into small business lending through Square Capital, and debuteda debit card for small businesses earlier in January.

Revenue upside from some of its newer products is “likely to prove more difficult” this year though, and the fintech company will have to rely on its core businesses, according to Raymond James.

“We believe revenue upside will likely be more muted this year as subs and services will likely once again need to be the driver of significant upside,” Davis said.


Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: kate rooney, yana paskova, bloomberg, getty images
Keywords: news, cnbc, companies, raymond, nearly, retreat, small, earlier, company, fintech, square, downgrades, squares, products, fall, predicts, upside, likely, james, stock, shares


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Fintech start-up Acorns valued at $860 million after latest funding round

The six-year-old company announced a Series E funding round on Monday that brings its valuation to $860 million, the company said. The new $105 million cash injection came from Comcast Ventures, NBCUniversal, Bain Capital Ventures, BlackRock, TPG’s Rise Fund, DST and Michael Dell’s MSD Capital. Robo-advisor Betterment, by comparison, has a $700 million valuation, while Wealthfront is valued at $500 million, according to Pitchbook. Irvine, California-based Acorns is best known for saving and inve


The six-year-old company announced a Series E funding round on Monday that brings its valuation to $860 million, the company said. The new $105 million cash injection came from Comcast Ventures, NBCUniversal, Bain Capital Ventures, BlackRock, TPG’s Rise Fund, DST and Michael Dell’s MSD Capital. Robo-advisor Betterment, by comparison, has a $700 million valuation, while Wealthfront is valued at $500 million, according to Pitchbook. Irvine, California-based Acorns is best known for saving and inve
Fintech start-up Acorns valued at $860 million after latest funding round Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-28  Authors: kate rooney, source
Keywords: news, cnbc, companies, products, nbcuniversal, round, startup, old, company, valuation, valued, ventures, latest, acorns, 860, funding, fintech, million


Fintech start-up Acorns valued at $860 million after latest funding round

Investing and savings start-up Acorns is one step closer to a billion-dollar valuation.

The six-year-old company announced a Series E funding round on Monday that brings its valuation to $860 million, the company said. The new $105 million cash injection came from Comcast Ventures, NBCUniversal, Bain Capital Ventures, BlackRock, TPG’s Rise Fund, DST and Michael Dell’s MSD Capital.

NBCUniversal, which is now Acorns’ biggest shareholder, will also receive a seat on the start-up’s board. It will be filled by CNBC Chairman Mark Hoffman. Acorns — which its CEO, Noah Kerner, describes as a “financial wellness system” — also announced it is partnering with CNBC to produce original content.

The new valuation is more than three times what it was after its 2016 fundraising round. It also tops two industry competitors. Robo-advisor Betterment, by comparison, has a $700 million valuation, while Wealthfront is valued at $500 million, according to Pitchbook.

Irvine, California-based Acorns is best known for saving and investing services products, which have ushered in 4.5 million users. One of its five products allows customers to automatically invest the spare change from debit or credit card purchases. If an Acorns user buys a latte for $2.75, the mobile app would round up to the nearest dollar and put that remaining 25 cents into an Acorns investment account, which is then put into professionally managed index funds.

It also has an automated retirement account service called “Acorns Later” that has brought on more than 350,000 investors who have invested $40 million to date, according to the company.

The average Acorns customer is around 32 years old with an income between $50,000 and $60,000. But it has also attracted customers as old as 98, Kerner said. The CNBC partnership is designed to reach an “up-and-coming” financial audience, who are less financially savvy.

Disclosure: Comcast owns CNBC’s parent company, NBCUniversal.


Company: cnbc, Activity: cnbc, Date: 2019-01-28  Authors: kate rooney, source
Keywords: news, cnbc, companies, products, nbcuniversal, round, startup, old, company, valuation, valued, ventures, latest, acorns, 860, funding, fintech, million


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PayPal, Mastercard execs see a ‘huge opportunity’ for tech giants to partner with major banks

Technology firms entering the financial services space shouldn’t be afraid of partnering with the biggest players in the industry, according to two executives. Executives from PayPal and MasterCard said Tuesday that they see partnerships with banks as a way to create new user experiences and solidify customers’ trust. “I think that is a completely false premise,” he told CNBC’s Elizabeth Schulze at the World Economic Forum in Davos, Switzerland. It would be like saying, ‘Well, for smartphone man


Technology firms entering the financial services space shouldn’t be afraid of partnering with the biggest players in the industry, according to two executives. Executives from PayPal and MasterCard said Tuesday that they see partnerships with banks as a way to create new user experiences and solidify customers’ trust. “I think that is a completely false premise,” he told CNBC’s Elizabeth Schulze at the World Economic Forum in Davos, Switzerland. It would be like saying, ‘Well, for smartphone man
PayPal, Mastercard execs see a ‘huge opportunity’ for tech giants to partner with major banks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: ryan browne, manuel blondeau, aoppress, corbis via getty images
Keywords: news, cnbc, companies, paypal, partner, tech, mastercard, win, smartphone, huge, banks, opportunity, execs, major, way, cellular, firms, banking, wini, giants, using, fintech, world


PayPal, Mastercard execs see a 'huge opportunity' for tech giants to partner with major banks

Technology firms entering the financial services space shouldn’t be afraid of partnering with the biggest players in the industry, according to two executives.

Executives from PayPal and MasterCard said Tuesday that they see partnerships with banks as a way to create new user experiences and solidify customers’ trust.

Bill Ready, PayPal’s chief operating officer, said that he often hears from fellow fintech entrepreneurs that banking giants “have to lose” in order for their businesses to be able to win.

“I think that is a completely false premise,” he told CNBC’s Elizabeth Schulze at the World Economic Forum in Davos, Switzerland. It would be like saying, ‘Well, for smartphone manufacturers to win, cellular carriers have to lose.'”

Ready made an analogy for the way fintech firms should look at their banking rivals using the example of smartphone makers and cellular networks.


Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: ryan browne, manuel blondeau, aoppress, corbis via getty images
Keywords: news, cnbc, companies, paypal, partner, tech, mastercard, win, smartphone, huge, banks, opportunity, execs, major, way, cellular, firms, banking, wini, giants, using, fintech, world


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European banks falling behind US on tech innovation, Finastra CEO says

European banks are lagging behind the U.S. when it comes to embracing technology, according the CEO of leading fintech (financial technology) firm Finastra. The firm works with 45 of the world’s top 50 banks and has revenues in excess of $2 billion. Chief Executive Simon Paris told CNBC’s “Squawk Box Europe” on Monday that U.S. banks had embraced fintech more rapidly than their European counterparts, and were already seeing the benefits of their earlier investments. “You see a big difference bet


European banks are lagging behind the U.S. when it comes to embracing technology, according the CEO of leading fintech (financial technology) firm Finastra. The firm works with 45 of the world’s top 50 banks and has revenues in excess of $2 billion. Chief Executive Simon Paris told CNBC’s “Squawk Box Europe” on Monday that U.S. banks had embraced fintech more rapidly than their European counterparts, and were already seeing the benefits of their earlier investments. “You see a big difference bet
European banks falling behind US on tech innovation, Finastra CEO says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: chloe taylor, stephan drescher, getty images
Keywords: news, cnbc, companies, innovation, expected, banking, worlds, falling, productivity, fintech, works, firm, european, ceo, banks, technology, tech, finastra


European banks falling behind US on tech innovation, Finastra CEO says

European banks are lagging behind the U.S. when it comes to embracing technology, according the CEO of leading fintech (financial technology) firm Finastra.

The firm works with 45 of the world’s top 50 banks and has revenues in excess of $2 billion.

Chief Executive Simon Paris told CNBC’s “Squawk Box Europe” on Monday that U.S. banks had embraced fintech more rapidly than their European counterparts, and were already seeing the benefits of their earlier investments.

“You see a big difference between the U.S. banks and the European banks, and I think that’s part of the reason why U.S. banks are at twice the level of return on equity over the Europeans,” he said.

“What the Americans are doing is investing very heavily in productivity and in the actual service itself, (and enabling) the customer journey. You really see that they’re getting improvements from those technology investments they made a few years ago.”

Paris also explained that certain areas of technology had been more widely adopted in the banking sector than expected. While technologies that improved productivity — such as automation — have been implemented on a wide scale, technology designed for the retail banking space has been slower to take off than expected, he said.


Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: chloe taylor, stephan drescher, getty images
Keywords: news, cnbc, companies, innovation, expected, banking, worlds, falling, productivity, fintech, works, firm, european, ceo, banks, technology, tech, finastra


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Fintech start-up Plaid to buy competitor Quovo for $200 million in its first major deal

Plaid’s technology links bank accounts to fintech apps like Venmo, Robinhood, Coinbase and Acorns. As of December, the San Francisco-based company said 25 percent of Americans with bank accounts had connected to Plaid through an app. Like Plaid, Quovo links customers’ financial accounts with consumer-facing apps. CEO Zach Perret said the deal will allow Plaid to get a more “holistic” view of a users’ financial life. In order to link bank accounts with Venmo and others, applications rely on a pro


Plaid’s technology links bank accounts to fintech apps like Venmo, Robinhood, Coinbase and Acorns. As of December, the San Francisco-based company said 25 percent of Americans with bank accounts had connected to Plaid through an app. Like Plaid, Quovo links customers’ financial accounts with consumer-facing apps. CEO Zach Perret said the deal will allow Plaid to get a more “holistic” view of a users’ financial life. In order to link bank accounts with Venmo and others, applications rely on a pro
Fintech start-up Plaid to buy competitor Quovo for $200 million in its first major deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-08  Authors: kate rooney
Keywords: news, cnbc, companies, competitor, accounts, quovo, buy, app, plug, financial, million, 200, venmo, startup, bank, major, deal, users, fintech, plaid


Fintech start-up Plaid to buy competitor Quovo for $200 million in its first major deal

Fintech firm Plaid is making its first major acquisition.

The company announced Tuesday it will buy a similar start-up called Quovo for just south of $200 million, according to a source familiar with the deal, who asked not to be named because negotiations were private.

Plaid’s technology links bank accounts to fintech apps like Venmo, Robinhood, Coinbase and Acorns. As of December, the San Francisco-based company said 25 percent of Americans with bank accounts had connected to Plaid through an app. The start-up recently raised $250 million at a $2.7 billion valuation and added Kleiner Perkins partner Mary Meeker to its board.

Like Plaid, Quovo links customers’ financial accounts with consumer-facing apps. But the New York-based firm has historically focused on more investment and brokerage data. Its customers range from fintech companies including Betterment, Wealthfront and SoFi to incumbents like Stifel, Vanguard, Empower Retirement and John Hancock.

The marriage tees up Plaid for expansion and gives it another leg up in an application programming interface business it was already beginningto dominate.

The companies will now exist on a single platform that developers and large companies can use to build any financial application, according to Plaid’s co-founders. CEO Zach Perret said the deal will allow Plaid to get a more “holistic” view of a users’ financial life.

He used the example of a fintech lending app. In order to see whether or not someone could pay back a loan, an app might ask for a user’s permission to see the balance in their checking account. Plaid can provide that. But adding Quovo gives them a view of other assets that might be in a brokerage account.

“It creates a more holistic financial picture,” Perret told CNBC. “That’s crucial when you think about the future of finance becoming more digital.”

In order to link bank accounts with Venmo and others, applications rely on a protocol known as application programming interface.

Plaid’s APIs have attracted investments from the venture arms of Goldman Sachs, Citigroup and American Express, and some say, has helped accelerate the growth of the payment sector over the past five years. Its other backers include Andreessen Horowitz, Index Ventures, NEA, the venture arm of Google, and Kleiner Perkins.

The analogy of a hair dryer often helps explain an API. When trying to plug a U.S. appliance into a foreign outlet, the volts and the physical shape of the plug won’t line up. If the plug is jammed in, the dryer will spark, overheat, or just not work. Plaid, in this case acts as the adapter, enabling the outlet (the bank in this metaphor) to connect with the hair dryer (Venmo, to use an example) and work.

Plaid also adds analysis on top of the bank account so app users are able to do things like budgeting or expense management. It can authenticate bank accounts for direct payroll deposits and electronic bill payments, verify someone’s identity, verify someone’s balance in real time and understand income and employment.

Acquisitions are just “one tool in the toolbox” for growth, Perret said. But this one in particular didn’t happen overnight.

“We’ve known about Quovo for a long time and had been admiring them from afar,” Plaid co-founder and Chief Technology Officer William Hockey told CNBC. “As we started to look at the market going forward, a big goal was to empower a full financial picture for the user — this builds towards that vision.”


Company: cnbc, Activity: cnbc, Date: 2019-01-08  Authors: kate rooney
Keywords: news, cnbc, companies, competitor, accounts, quovo, buy, app, plug, financial, million, 200, venmo, startup, bank, major, deal, users, fintech, plaid


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