Goldman Sachs, Citigroup boost lending to Latin America startups

Banks including Goldman Sachs Group Inc. and Citigroup Inc. are stepping in with loans as Latin American startups face shrinking public valuations that make equity sales less attractive. Small startups such as Brazilian fintech Agi, known previously as Banco Agibank SA, and Chile’s Xepelin Holdings SA, as well as bigger firms such as digital retailer […]

How to Deploy an Omnichannel Payment Strategy

Being in the payment industry for nearly two decades, now, more than ever, we are seeing consumer experience and the demand for self-service solutions causing significant growth in online and mobile payments. Particularly, in the last couple of years, we’ve seen self-service channels are growing at about three times the rate of “agent-led” calls. There are a few contributing factors that are driving financial institutions to invest more in their self-serve payment offerings:

  • Demand: Consumers expect this degree of self-service capabilities and they’re more vocal about their frustrations when an institution doesn’t make self-service payments available.
  • Technology: Advances in self-service channels are making it easier to meet the operational and risk requirements of financial institutions.
  • Affordability: Card-brand costs, specifically the recent cap Interchange Rates made by Visa, are making cards far more affordable for larger debt payments.

Embracing the Omnichannel Payment Trend

As a third-party payment processor, we invest heavily in technology to ensure our clients have a solution that is effective for all the channels that their customers would use to make a payment to their account. Account holders expect frictionless transactions within and between the accounts at their financial institutions. We enable institutions to offer such services without having to worry about sizable capital expenditures or managing the necessary systems to power such transactions.

Online Payment Options vs. Omnichannel Payments

Omnichannel is a comprehensive and intentional strategy to support payments across the board as the critical customer service touchpoints at a financial institution, including online. Omnichannel ensures that there is a plan to support customers for in-person, phone (live or IVR), mobile, desktop, and more; the plan will ensure that business requirements (i.e. risk controls and operational capabilities) are built into each channel. This allows omnichannel support, even if 100% functional parity cannot be attained because of external factors.

One factor that should be consistent across all channels is the acceptance of card-sourced funds. Consumers are far more likely to have their debit card with them than they are to have ACH account and routing numbers. We’re seeing the costs of card payments in our niche space dropping significantly and becoming more affordable—which is a great benefit to both institutions and their borrowers.

An Integrated Payment Strategy

There are two approaches an institution can take:

  • The Infection Approach: The leader of a division or department decides they need a single channel solution for their organization but recognizes the need for an enterprise omnichannel solution. This leader, understanding the prioritization complexities a cross-functional deployment (marketing, other call centers, digital, etc.), could deploy a point-solution specifically for their division.

    • As such, the division leader would work with our implementation staff to deploy the division’s solution but would be empowered with the understanding that our solution can easily be expanded to additional channels as the financial institution’s cross-functioning teams have the capacity to integrate additional channels. The division leader’s success with her own payment channel is often a very powerful influence on other divisions and helps grow support for omnichannel solution from other division leaders.
    • This approach may have a longer duration overall, but it allows for more granular resource planning, allowing divisions to tackle projects already in-flight.
  • Top-Down Leadership Directive: Decision makers give the directive to implement an omnichannel solution. In this case, our implementation team would organize a project for an enterprise-wide deployment and would lead the institution through the sequence of events and deliverables that will result in an efficient deployment across the organization.

    • This approach will result in a shorter duration as the deployment manpower will be made available all at once for a focused initiative.

Increasing Customer Awareness of Self-Serve Channels

Communication is certainly key. Customers need to be informed early and often that options are available to them, how they can use them, and ultimately, how they will benefit from using them—i.e. save time, avoid late fees with prompt payments, etc. Websites, newsletters, social media, in-app messaging, IVR messaging, and team-member scripting are all important components of distributing this information.

A couple of other key considerations institutions should keep in mind when developing or expanding their omnichannel payments capabilities include features and fees.

  • Features: While an omnichannel strategy may require having different features available through each channel, it is important for institutions to offer as many features as possible.
  • Leverage Fees to Drive Strategies: By evaluating the need for payments solutions, financial institutions may find opportunities to offer fee-free solutions within one or more channels of their strategy. If a strategic channel is struggling to grow users, then discounting fees or waiving fees for the channel may help. Conversely, increasing fees for some of the more expensive channels (i.e. live calls) can also help sway utilization.

SWIVEL Transactions, LLC, is a financial technology and services company providing specialized, integrated transaction enablement solutions that remove friction for account holders, borrowers, and departments across financial institutions, as well as collections agencies and offices, while also mitigating risks associated with payments processing in the digital environment and moving funds in digital domains. Visit to learn more.

SWIVEL on by and visit with us at the Bank Automation Summit 2022, September 19th and 20th.

XBRL News about pay vs performance and ESG data standards

Here are the most relevant developments in the world of structured reporting we became aware of in the course of last week.

1  SEC adopts inline XBRL for Pay vs Performance disclosures

2  Improving ESG data production for better company decision-making

An interesting new report from the UK Financial Reporting Council’s FRC Lab addresses how companies can collect and use environmental, social and governance (ESG) data to support better decision-making. It offers a number of recommendations and questions for boards to consider relating to three elements of ESG data production: motivation, method and meaning. 

We are still a long way from having ESG data comparable in quality to financial data. That needs to change in order to make it decision useful, both for companies and investors. 

3  Voices raised for alignment on ESG

As global, EU and US consultations on sustainability reporting drew to a close over recent weeks (as discussed here), we have seen a concerted push for collaboration and convergence from a huge range of organisations.

While there are some justified material differences, it is up for discussion whether we can afford multiple standards on ESG disclosures, especially if they are at risk of diverging. 


Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.

 We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.

 For context on XBRL please read this introduction to our XBRL Week in 2016 and read articles tagged XBRL in our archives. 

 New readers can read 3 free articles.  To  become a member with full access to all that Daily Fintech offers,  the cost is just USD 143 a year (= USD 0.39 per day or USD 2.75 per week). For less than one cup of coffee you get a week full of caffeine for the mind.

Issue #381 – Anonymous, But Together – And Driven By Data

Blockchain technology and cryptocurrencies became an important part of the fintech industry. Especially for what concerns Gen Z, the demand for cryptocurrencies is quite high, and the reasons behind this are mainly related to pseudonymity or anonymity – depending on the crypto project, decentralization, and a major control over financial assets.

But the same generation is also interested in major social and economic issues like climate change. How can the two interests coexist in the same person if Bitcoin consumes more energy than Pakistan? To address this green finance-related question, Tim Lea wrote an in-depth article for FinTech Weekly, analyzing the correlation between consumptions and cryptocurrencies – and the Proof of Stake trend, also considering Ethereum’s transition.

MS&AD blends Social & Digital (CSV x DX) plays into global ambitions

Despite a challenging backdrop, large commercial (re)insurers realized approximately $200 billion in top-line growth over the last decade. The scale of growth provides optimism for this decade. Some estimates put top-line growth of up to $600 billion by 2030 through new customers (particularly in fast growth markets), a hardening market, well-targeted technology investments, strategic partnerships, and innovative new product offerings focused on intangible assets. Partnerships with local participants, continued rise of GDP and insurance penetration in fast-growth markets will further augment large commercial business growth.

One such example of a leading insurer is Tokyo-based MS&AD Insurance Group holding company.  Formed from the merger of Mitsui Sumitomo Insurance, Aioi Insurance and Nissay Dowa General Insurance, MS&AD started with a setback, posting red in 2011 due to the Great East Japan Earthquake and Thailand floods. It devoted the next few years to the concerted pursuit of growth and efficiency, resulting in improved performance with combined ratio for the domestic non-life business of 92% and solvency ratio of 211%, despite incurred losses from US hurricanes in 2017.

Post the reinforcement phase, the group unveiled Vision 2021, a four-year management plan designed to reinforce MS&AD’s position as a world-leading insurance group. The goal is to maintain its top 10 position in the Fortune 500 non-life companies.

In a rapidly changing society with new risks, MS&AD’s overarching strategy is to use its CSV x DX strategy to solve social issues, leading to sustainable growth. Digital transformation (DX) contributes significantly to the goal of solving emerging social issues.  To further its narrative of creating shared social and economic value, MS&AD has aligned it with the UN’s Sustainable Development Goals (SDGs). Example being: With self-driving cars just around the corner, MS&AD embarked on initiatives to contribute to making the new mobility society accident-free. This goal overlaps with three SDGs: Good Health and Well-being, Sustainable Cities and Communities, and Partnerships for the Goals.

The three key strategies to turn its Vision 2021 into a reality are: a)to leverage the strengths of the entire group, b)to digitalize aggressively, and c)to reshape the business portfolio. Leveraging the group’s strengths translates into pursuing an even higher level of standardization and sharing between the group’s non-life and life insurance, risk solutions and financial services businesses while strengthening cooperation between group companies in 47 countries worldwide so that best practices percolate fast. The make-up of the group has also been transformed through a spate of international deals. These range from the acquisition of U.K.-based Amlin, No. 2 in the Lloyd’s insurance market in 2016, and First Capital, Singapore’s largest commercial property and casualty insurer, in 2017, to the purchase of a 6.3% stake in Challenger, Australia’s largest provider of individual annuity insurance, also in August 2017.

To stay ahead of the digital curve, MS&AD is actively building alliances with digital innovators around the world. Recently, it implemented AI-based fraud-detection software made by Shift Technology SAS, a French start-up. To gain faster access to the latest developments in digital technology and services worldwide, MS&AD established MS&AD Garage in Silicon Valley in January 2018.

Over the next decade, the largest insurers and reinsurers will further build upon their dominant  advantages, which include the industry’s deepest expertise, most capital, broadest global footprints, and best balance sheets. Best in class technology and reskilled workforces and cultures will germinate the change. While in the past, these market leaders positioned on breadth of product offerings, large scale, and capital capacity, the future will see them compete on increased customer centricity, digital dexterity and creating shared social value. To get there, they are becoming more data-driven and reliant on productive partnerships and collaborations. These capabilities will become table stakes in competing with nimbler players who can more effectively compete for new business that previously defaulted to the largest carriers.

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FIS launches Worldpay for Platforms

FIS has unveiled Worldpay for Platforms, a software-as-a-service (SaaS) that enables software providers that serve small- to medium-sized businesses (SMB) to embed payments and finance features into their platforms through a single integration. Consumer banking expectations began changing during the COVID-19 pandemic along with their interactions with SMBs, Matt Downs, group president of platforms at […]

FIs flock to Temenos

White-label card issuer Optimus Cards has selected core provider Temenos’ open platform for composable banking to scale its cards-as-a-service business. The API-connected platform will process London-based Optimus’ transactions and manage customer accounts. Under the new platform, Optimus customers’ back-office systems can enable instant authorization from both customers’ accounts and crypto wallets, according to a release. […]

3 FIs renew partnerships with mobile banking providers

Banks and credit unions are looking to mobile offerings to ensure they have the digital products consumers now expect amid widespread adoption on the heels of the COVID-19 pandemic. Read More: Bank of America sees 1B digital logins in July The largest banks and credit unions by asset size to renew their partnerships with technology […]

4 authentication and messaging startups lenders should watch

NEW YORK CITY — Data and customer authentication and messaging platforms are proving to be at the fintech forefront as 33 fintechs demonstrated their capabilities Monday during the first day of the FinovateFall 2022 conference in New York City. Auto lenders should keep an eye on four startups as they look to bolster their data […]

Milk, diapers and checking accounts: banking comes to Walmart

(Bloomberg) –Coming soon from the world’s largest retailer: checking accounts. A venture that’s majority-backed by Walmart Inc. is poised to emerge from the shadows this month with digital bank accounts meant for the retail giant’s 1.6 million US employees and legions of weekly shoppers. In coming weeks, the company will start offering the accounts to […]

Stablecoin News for the week ending Wednesday 14th September.

Here is our pick of the 3 most important stablecoin stories during the week.

How much can having your own stablecoin be a competitive advantage?

It seems if you’re an exchange or even a country, quite a lot is the answer.  This week we saw the emergence of stablecoins as a tool to attract, hold and monetise monetary flow.

First, Coinbase has come up with a plan to make itself super attractive to  MakerDAO by offering to generate $24 million annually for them.  The American crypto exchange recently proposed that the popular DeFi project deposit $1.6 billion in USDC on Coinbase institutional, the exchange’s institutional arm, and earn 1.5%.

Coinbase’s Stablecoin Proposal Expected to Earn MakerDAO $24M Annually – Decrypt

In the meantime, Russia has decided to use stablecoins The western sanctions are clearly hurting Russia, just as the sudden drop in gas supplies is hurting Europe.  Russia’s problems are even more immediate. The embargo of dual-use electronic goods is causing serious supply shortages for Russia’s military. Vladimir Putin is in bad need to transact. So the news of the country developing a crypto payment system is important. 


And finally, the world’s largest cryptocurrency exchange Binance’s move to toss USD Coin (USDC) off its platform is a bold gambit to boost the fortunes of its own stablecoin, Binance USD (BUSD) — the third-biggest stablecoin by market cap, following USDC in second place and Tether in the top spot. And the fact that it comes amid reports that Binance is undercutting the fees charged by its main exchange rival, Coinbase — the second-largest crypto exchange in the business — suggests that Binance is making a concerted push for next-level dominance of the crypto space.

So in summary, a stablecoin that you control will improve your balance sheet (enabling more and cheaper corporate borrowing), enable a new revenue stream, incentivise customers (something like a loyalty programme) and in the case of Russia enable you to have more freedom and operate alone within your ecosystem.

The fun and innovation in this space is just beginning!


Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.  

Twitter @Alan_SmartMoney

We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.

For context on stablecoins please read this introductory interview with Alan “How stablecoins will change our world” and read articles tagged stablecoin in our archives.

Paystub Fraud is on the Rise

A contributory database where lenders share knowledge helps the industry reduce fraud. Recent trends highlight the importance of lenders collaborating to address fraud before funding. Utilizing a feedback loop and multi-channel fraud checks increases Informed’s accuracy in stopping fraud. Fraud is not lender specific and significantly impacts the banking industry. As loan originations shift to digital, income and employment fraud rises, costing lenders billions each year. One area – employment and income fraud – cost auto lenders $4.7B in 2021.

Financial Services Information Sharing and Analysis Center is a financial services cyber intelligence collaborative. They leverage their intelligence platform, resiliency resources, and peer-to-peer network to anticipate and mitigate cyber threats. Networks like theirs fight fraud as a community.

Within the auto industry, police departments launched grassroots efforts to stem fraudulent activities, such as vehicle fraud and auto theft divisions to train local lenders. Houston’s Vehicle Fraud Unit prevented $740,000 in fraudulent vehicle purchases. They focus on ID scanning devices and identity theft, a crime that can result in felony charges. However, because they focus on identity theft, there is fraud that can go unaddressed and is critical for lenders to ensure consumers can repay loans: paystub fraud. People report fake income and support it using fake documents which affects credit risk and portfolio performance.

What is paystub fraud?

Paystub fraud is increasing, and the same tactics used in phishing emails are used to commit paystub fraud. Unlike ID cards, where IDs are standard and government-issued, paystubs are issued by any company. This makes the problem exponentially harder. You can’t just call a government entity to verify a paystub.

You have to watch a growing list of fraudulent paystub sites to catch fake documents without causing borrowers inconvenience. You don’t want to blame an innocent consumer for faking a document. Lenders also have to weigh a 90% increase in delinquency [within first 60 days] if income is overstated. Fraud detection is complex and requires timely reporting, consistent identification, and implementation of lessons learned.

How common is paystub fraud?

We see a 2.25% average fraud rate; however, when viewed by lender, there are outliers with fraud rates between 10-12% With additional fraud controls – automated paystub checking and paystub accuracy – fraud is significantly reduced as well as its potential business impact.

What can you do right now? Report fraud:

If you’re interested in hearing more about Informed, I’ll be speaking at Bank Automation Summit on September 19 at 11:45 AM PST and head over to our booth to connect with a member of the team.

-Jessica Gonzalez, Director of Auto Lending at Informed.IQ

FinovateFall 2022 Best of Show Winners Announced

With hundreds of ballots officially cast and carefully counted – here are the winners of Best of Show for FinovateFall 2022!

Debbie for its technology that leverages behavioral psychology and rewards to help users pay off 3x more debt and help lenders recession-proof members.

Horizn for its platform that helps financial institutions maximize the impact of digital and accelerate returns on digital investments with customers and employees.

LemonadeLXP for its digital growth platform that helps financial institutions and fintechs turn staff into digital experts and support digital customers.

Quilo for its technology that empowers lenders to digitally syndicate an individual personal loan at the time of underwriting, enabling them to provide more loans to more people.

Stratyfy for its technology that increases access to financial services by bringing true transparency and less risk to critical financial decisions that impact millions.

Themis for its collaboration platform designed for risk and compliance requirements to help accelerate partnerships between banks and fintechs.

We are grateful to all of our demoing companies for being a part of our biggest FinovateFall to date. Thanks as well to our sponsors, our partners, and – last but not least – our awesome attendees who continue to make our conferences among the most anticipated events on the fintech calendar each and every year. We look forward to seeing you again next fall!

Notes on methodology:
1. Only audience members NOT associated with demoing companies were eligible to vote. Finovate employees did not vote.
2. Attendees were encouraged to note their favorites during each day. At the end of the last demo, they chose their six favorites.
3. The exact written instructions given to attendees: “Please rate (the companies) on the basis of demo quality and potential impact of the innovation demoed.”
4. The six companies appearing on the highest percentage of submitted ballots were named “Best of Show.”
5. Go here for a list of previous Best of Show winners through 2014. Best of Show winners from our 2015 through 2022 conferences are below:
FinovateEurope 2015
FinovateSpring 2015
FinovateFall 2015
FinovateEurope 2016
FinovateSpring 2016
FinovateFall 2016
FinovateAsia 2016
FinovateEurope 2017
FinovateSpring 2017
FinovateFall 2017
FinovateAsia 2017
FinovateMiddleEast 2018
FinovateEurope 2018
FinovateSpring 2018
FinovateFall 2018
FinovateAsia 2018
FinovateAfrica 2018
FinovateEurope 2019
FinovateSpring 2019
FinovateFall 2019
FinovateAsia 2019
FinovateMiddleEast 2019
FinovateEurope 2020
FinovateFall 2020
FinovateWest 2020
FinovateEurope 2021
FinovateSpring 2021
FinovateFall 2021
FinovateEurope 2022
FinovateSpring 2022

Inside look: Bank of America sets record for patents in 1H 2022

Bank of America is reporting record digital usership and multiple granted patents on the heels of boosting its technology spend in the first quarter of the year. “Bank of America has a deep culture of being innovative and exploring creativity,” Michael Young, senior vice president of global information security at $3.1 trillion Bank of America, […]

Ally Financial’s Kevin Faragher joins Bank Automation Summit Fall 2022

Kevin Faragher, senior director of product and strategy at Ally Financial, is joining the speaker faculty at Bank Automation Summit Fall 2022 for the panel, “Automation to detect and stop fraudulent transactions,” on Monday, Sept. 19, at 11:45 a.m. PT. Bank Automation Summit Fall 2022 will take place at the Hyatt Olive 8 in Seattle […]

Corserv receives Visa Ready certification

Payment card issuer Corserv announced that it has been certified as Visa Ready, a seal of approval from the credit card giant for its payment-cards-as-a-service-APIs (PCaaSA) platform. Payment cards are prepaid debit and credit cards, and the PCaaSA is a flexible, multi-bank platform that stretches across such cards for all products. Corserv’s platform runs on […] will eliminate about 5% of employees in latest cuts is eliminating 5% of its staff, the latest in a series of job cuts that’s swept technology companies this year as investors pull back on funding. The company confirmed that it was reducing its workforce by about 100 people in a statement in response to Bloomberg questions on Tuesday. “This decision did not come […]

First National Bank of Omaha launches CaaS

First National Bank of Omaha (FNBO) has launched Bend by FNBO, a new credit card-as-a-service (CaaS) solution that allows companies to offer customized credit cards.

Bend by FNBO runs on open APIs while offering customers the flexibility of an embeddable card, Marc Butterfield, senior vice president at $26 billion FNBO, told Bank Automation News.

Bloomberg via Getty Images

“The world is changing, and things are becoming more automated and modularized and decentralized,” Butterfield said. “That’s how people are going to be banking, and they’re going to go with a brand they love and an experience they like, and they’re going to just want more products in that same experience.”

The service is an extension of Omaha, Neb.-based FNBO’s partnership with card issuer and payment solution platform, Marqeta, which offers simple integration through open APIs, Butterfield told BAN.

The CaaS will allow companies to issue branded credit cards quickly with access to a self-service dashboard to configure and manage cards in real time, he added.

While FNBO has not announced partners for the service, it is open to working with outside brands to issue credit cards, Butterfield said.

“What we have learned and talking to customers is that they want (products) delivered differently,” he said. “Eventually, our current customers are going to want it delivered a certain way, too, once they become more digitally mature.”

Meanwhile, the bank in May announced a partnership with fintech Greenlight for the Family Cash Card, which allows parents to save for their children’s futures, according to a past release.

Bank Automation Summit Fall 2022, taking place Sept. 19-20 in Seattle, is a crucial event on automation and automation technology in banking.  Learn more and register for Bank Automation Summit Fall 2022.

Listen: BankUnited’s Lehmbeck previews discussion points for next week’s Bank Automation Summit

What should financial institutions consider when adopting citizen development?

Michael Lehmbeck, chief technology officer at BankUnited, gives Bank Automation News a glimpse into what he will share with attendees of next week’s Bank Automation Summit panel discussion, “Facilitating citizen developers in banking,” on Tuesday, Sept. 20, at 11:15 a.m. PT, during this special edition episode of “The Buzz” podcast.

Citizen development and the rise of cloud technology and software-as-a-service platforms “are more so now than ever empowering the lines of business [at banks] to be able to take on more development,” Lehmbeck says.

Attendees of the panel discussion will learn:

  • What to be mindful of as an organization is looking to adopt citizen development;
  • Governance considerations when implementing citizen development; and
  • Organizational best practices.

Lehmbeck will be joined on the panel by Tracie Cleveland Thomas, senior vice president at KeyBank, and Gabriel Skelton of OpenBots.

Click here to view the full Bank Automation Summit Fall 2022 agenda and to register for the event.

FinovateFall 2022 eMagazine

Exciting things are happening in fintech right now, and we’re incredibly grateful to have so many of you joining us at FinovateFall this year to take it all in for yourself. There’s a lot to be excited about! As you may have heard, this year’s FinovateFall is officially our largest show yet, with more than 1,600 of you here in the room with us. After a period of general upheaval and uncertainty, it’s great to see the fintech community coming together en masse to plot a course for the future. 

What’s happening is bigger than just the number of people in the room, though. It’s no secret that the last few years have been challenging ones and what we’re seeing now is fintech’s response to that challenge. New ideas, new innovations, and new companies are taking shape right before our eyes; venture capitalists are actively seeking out early-stage investment opportunities; and financial institutions themselves are more receptive to change and innovation than ever before. And most importantly, at every step of the way, the industry is making a concerted effort to help the everyday people who need it most.

Download the latest Finovate eMagazine from FinovateFall, to get insight from the event and access to:

  • Analysis from our resident journalists on the top trends from the event and beyond
  • Thought leadership from Headline Sponsor, Provenir
  • The Best of Show demos videos
  • The Finovate Awards winners, and finalist profiles of Highnote and RBC Clearing 
  • Expert opinion on accelerating your lending strategy, the do’s and don’ts of leveraging emerging technology in fintech and exploring virtual worlds and economies