FinTrack

February 2017

Tracking innovation in financial services

Introducing FinTrack, GlobalData’s financial innovations tracker. This edition of FinTrack showcases the best and brightest innovations revealed at FinovateEurope 2017, a two-day showcase of the latest and greatest financial and banking technology innovations from leading established companies and hot young startups. FinTrack will help you to: • Keep up-to-date with the latest innovations from your competitors. • Develop cutting-edge product and channel strategies. • Identify the latest trends in the delivery of financial services.

FinTrack: the inside track on the latest financial innovations.

FinovateEurope 2017

About This Product

Consumer Payments

TOTAL SCORE

iProov is a security technology company that specializes in biometric identity verification. iProov Verifier is being presented at FinovateEurope 2017 and authenticates users on any device using a front-facing camera and a network connection. Using patented Flashmark technology, the screen flashes a sequence of colors for 2.5 seconds. The user's face is then matched against their enrolment image and images of every subsequent successful authentication. The process takes approximately 8 seconds to complete.

Is it original? Although biometrics authentication is not a new concept, iProov Verifier is an enhanced authentication method that prevents replica and replay attacks using its unique Flashmark and Deep Machine Learning technology. Is it long-lasting? There is a general consensus across the industry to move away from static passwords to biometric authentication. Since there is talk of adopting multimodal biometric authentication practices for added security, there will be increased demand for a wide variety of biometric authentication form factors including facial recognition in the future. Is it operationally game-changing for the provider? Verifier is being positioned as a flagship product for iProov and would be implemented in a wide range of use cases – from customer online account access and security step-up, to remote employee/partner access to internal systems, to enabling remote onboarding/account opening (KYC). iProov aims to improve its market reach through integration with multifactor authentication providers, banks, vendors, and document authentication specialists. Will it significantly improve the user experience? Verifier delivers an improved user experience, as it is device-independent and platform-agnostic. It provides a frictionless use case due to its one-click and non-intrusive process showing the users an abstracted image of their face, while credentials are non-sharable. Is it market-changing? iProov Verifier is a reflection of the industry movement towards the displacement of passwords, with biometrics positioned as their successor. It is more an enhancement of existing technologies rather than a market disruption.

FinovateEurope 2017

iProov delivers biometric authentication Verifier

4/5

TOTAL SCORE

nanoPay, a payments infrastructure provider based in North America, has revealed plans for a B2B payments solution aimed at banks and corporates. nanoPay’s current business is based around digital cash, having acquired the Royal Canadian Mint’s MintChip solution in 2016. Its new service utilizes the payment processing capabilities of MintChip’s asset-transfer system to offer fast, value-added cross-border B2B payment functionality without requiring an intermediary.

Is it original? nanoPay’s service utilizes digital asset transfer technology, but stands out from competitors such as Ripple by basing its service on technology that offers faster settlement of payments, even compared with blockchain-based providers. Is it long-lasting? Blockchain and other digital transfer technologies are increasingly being experimented with by banks and payment providers as a fast, efficient way of sending money across borders. Given the direction in which the industry is going, nanoPay’s service is likely to stand the test of time if it can secure adoption. Is it operationally game-changing for the provider? This launch stands to extend nanoPay’s reach into the B2B market and among banks specifically. Its cross-border payments capabilities make it potentially very attractive to banks looking to make international payments without relying on large correspondent networks and the risk involved in doing so. Will it significantly improve the user experience? As well as offering improved speed in payment processing and capture of transactional data as part of the transaction, nanoPay’s solution also offers easier implementation for banks compared with blockchain-based services. This is because less hardware is needed to store nanoPay’s software component and transaction record compared to a distributed ledger. Is it market-changing? nanoPay’s service, like other payments infrastructure services based around digital transfer technologies, has the potential to drastically improve the speed and efficiency of the payments industry generally. However, this launch goes one step further by offering speed and efficiency advantages over blockchain-based services.

nanoPay unveils new B2B payment solution

FinovateEurope 2017

5/5

TOTAL SCORE

Signicat, a European digital ID provider, demoed its Signicat Assure and Signicat Sign products at FinovateEurope 2017 as part of its wider white-label ID verification service. Assure builds a digital ID at customer onboarding for consumers based on multiple factors including ID documents, banking relationships, and social media presence, while Sign enables digital signatures with the same legal force as physical ones. Signicat is positioning itself as a full-service partner to banks and payment providers, offering a modular platform that can integrate with any device.

Is it original? Signicat’s service is one of many in the digital identity and verification space, aiming to differentiate itself in terms of the flexibility and width of its services rather than with technology that no other digital ID provider offers. Is it long-lasting? Increasing regulatory burdens on banks and payment providers in terms of KYC (particularly in the EU) provide Signicat’s AML4 and PSD2-compliant services with a highly receptive market and relevance into the long term. Is it operationally game-changing for the provider? This launch is a step forward for Signicat, which is positioning itself as a full-service digital ID provider for financial institutions and thereby increasing its commercial reach. Will it significantly improve the user experience? Compared with paper-based onboarding, Signicat provides a more convenient experience for consumers via its expedited, multi-device approach. Signicat’s platform also offers a more convenient experience for banks and financial institutions by offering a service that is already regulation-compliant as well as customizable to those institutions’ risk appetite. Is it market-changing? Signicat is currently the only full-service digital ID provider in the market. Its approach is likely to change how digital ID providers operate, since through partnering with Signicat banks can utilize any onboarding, customer recognition, and digital signature services they may need, and tailor the level of assurance they require from customers to match their own risk appetite.

Signicat offers full-service white-label digital ID platform

FinovateEurope 2017

4/5

TOTAL SCORE

Worldcore is a payment institution that specializes in biometric identity verification. It is currently planning to enter the mobile payments market by launching facial recognition technology FaceKey at FinovateEurope 2017, in an attempt to extend its product portfolio.

Is it original? Although FaceKey offers an alternative to the increasingly popular use of fingerprints for biometric authentication, the use of facial recognition technology is not a new phenomenon. Is it long-lasting? There is general agreement across the consumer payments industry with regards to the use of biometrics for authentication, as it offers a viable means of combating online fraud. FaceKey’s move supports the general direction in which the industry is moving. Is it operationally game-changing for the provider? Based on Worldcore's mission to become a "one-stop-shop” in the payments industry, it is planning to enter the mobile payments market by complementing its pre-existing voice recognition with facial recognition technology. The company aims to extend its product portfolio and gain additional market share by serving an increasing number of industries. Will it significantly improve the user experience? Worldcore delivers an enhanced user experience, with much higher accuracy rates: it claims that FaceKey is 99% accurate in recognizing users, compared to the market average of 81%, while significantly reducing instances of online fraud. Is it market-changing? Worldcore is among a growing number of payment providers and device manufacturers investing in biometric authentication techniques. However, it is unlikely that its offering will bring significant innovation to the market.

FinovateEurope 2017

Worldcore launches facial recognition authentication FaceKey

3/5

General Insurance

TOTAL SCORE

Dorsum’s Botboarding platform is a tool that allows financial companies to build and manage onboarding chatbots. While automated, the bots combine a human-like communication style with data gathering and user profiling to help banks acquire customers in a frictionless way. The platform’s goal is to enhance engagement and conversion rates, offering tools to tweak the personality and functionality of the chatbot in order to optimize its performance.

Is it original? A wave of players have released chatbot solutions, particularly in the last year since Facebook Messenger opened up its doors to developers in April 2016. While fresh in terms of application to customer acquisition rather than as an existing client tool, the concept is not unique. Is it long-lasting? Traditional, static forms and application processes are made obsolete by this smart conversational platform, particularly when reaching out to millennials who are most at home on social media chat platforms. Is it operationally game-changing for the provider? Ultimately the impact of the platform for providers will depend on whether Facebook features in strategy, but a likely strong uptick in onboarding completions will be persuasive. Will it significantly improve the user experience? The interactivity of Dorsum’s “DAISY” bot make for a more engaging, more informative, and easier user experience for customers seeking new financial services products. Is it market-changing? Chatbot solutions like Dorsum’s are taking hold in customer service both inside and outside of financial services, opening a new door to more engaging but cost-effective customer interaction.

4/5

FinovateEurope 2017

Dorsum unveils Botboarding at Finovate

TOTAL SCORE

Horizn’s mobile-first platform accelerates the process of taking innovative digital products to market by enhancing engagement with employees and salesforces within a business, and on-boarding from customers outside of it. It does this through a combination of digitized learning, gamification, and analytics tools.

Is it original? In the increasingly fast-tempo world of digital solutions within financial services, much has been said of the need for cultural transformation across the entire workforce to move forward with innovation. Horizn is unique in filling that gap and providing a solution for both workforce and customer upskilling. Is it long-lasting? Future workforces are only going to be in greater need of solutions to quickly become fluent in the technologies and solutions driving the business forward, so that the whole business can be mobilized at go-to-market time. Is it operationally game-changing for the provider? Horizn’s platform is a channel through which not only proficiency in product can be achieved, and an education piece delivered to clients – internally it can sow the seed of cultural transformation. Will it significantly improve the user experience? Impact is dependent on the primary business’s product. However, a platform like Horizn’s is likely to feed through to end users both directly (on-boarding via branch demo and kiosks) and indirectly (improved service via knowledgeable staff). Is it market-changing? Even where a provider may have developed or purchased a market-leading digital platform/product within a silo, the cultural transformation of the whole business to join the journey the product can take them on is critical to leveraging resources.

5/5

FinovateEurope 2017

Horizn’s go-to-market knowledge platform

HotDocs specializes in documentation templates

HotDocs provides a new automated assembly software product, designed to enable companies to efficiently produce business-critical documents. Companies that rely on the regular use of documentation will benefit from the ability to transform these regularly used documents into actionable templates that can be used repeatedly, regardless of topic or subject matter.

Is it original? Despite being around for longer than many of the other start-up groups at FinovateEurope 2017, HotDocs offers a unique proposition that would work wonders for the insurance industry. Providing insurers with the ability to structure and recreate policy documentation quickly and efficiently, productivity, as well as the accuracy/clarity of the information provided, is bound to improve. Is it long-lasting? Insurers are very much in need of technology to aid the policy documentation creation process. This is an issue that has confounded consumers and, at times, providers, meaning any solutions to the problems would be welcomed. Is it operationally game-changing for the provider? HotDocs enforces standardization, meaning users (insurers) can develop a “uniform” for their policy documents. This means there are also less “points” to consider, including the actual information contained or even the formatting. Will it significantly improve the user experience? HotDocs maximizes simplicity and reduces the number of complexities when creating documents. Users would ultimately have to work far less hard to comprehend the information contained if the documents are developed in a clear, concise, and consistent structure, Is it market-changing? The HotDocs proposition is commanding substantial interest and a sizable uptake; however, there is a current lack of awareness regarding the importance of documentation, while many still regard it as an afterthought or a lesser priority. This needs to change in order for HotDocs to have a significant impact.

FinovateEurope 2017

TOTAL SCORE 4/5

TOTAL SCORE

At FinovateEurope 2017, unblu demonstrated that its web customer collaboration software will now engage with customers across both mobile and traditional platforms. The software, mainly aimed at the retail banking and wealth management industries, allows providers to offer a virtual personal service to customers through co-browsing, live chat, and video capabilities.

Is it original? unblu’s software is original as it provides a powerful suite of features. While some features can be substituted on an individual basis, the suite has been designed for the regulated environment, is data protection-compliant, and does not require customers to download any additional software as it is embedded into a bank’s infrastructure. Is it long-lasting? Abandonment rates across the online space are very high and very costly. A personalized service to guide customers through processes and answer questions would significantly reduce abandonment while enhancing the overall customer experience. This will also allow providers to save money by redeploying advisors from branches to central areas, where they can service multiple customers. Is it operationally game-changing for the provider? unblu has grown within the European banking space, and by expanding its capabilities to the mobile space it will enhance its position and demonstrate that it is continuing to develop its system in line with customer behavior. Will it significantly improve the user experience? The user experience will be notably enhanced as it facilitates personal guidance through any customer process and allows customers to move across platforms at their convenience. Is it market-changing? This software is a reflection of how the online services environment needs to evolve to allow companies to build customer engagement.

5/5

FinovateEurope 2017

unblu offers seamless customer engagement

W.UP launches new customer insight-driven tool

W.UP’s latest product follows in the path of account aggregation platform Mobile.UP. Sales.UP is an insight-driven sales and engagement tool for financial institutions. The proposition uses pre-built customer insights to create relevant, personal, and timely interactions with clients, all in order to gain an improved understanding of the end user.

Is it original? Sales.UP uses a unique algorithm that is pre-built into the proposition. It is designed to perform behavioral analytics, while also factoring in the use of geolocation data. This is a service that is currently unavailable to its target market. The product aims to identify customer behaviors, actions, and characteristics, providing an indication of their “next move” and/or potential suitability to a certain financial product. Is it long-lasting? Yes! Consumer insight is at the forefront of financial services, especially if such propositions serve as potential revenue generators. Additionally, following the introduction of PSD2, third parties are set to have improved access to financial data and transaction histories. This will help secure the future of these types of customer engagement tools. Is it operationally game-changing for the provider? For insurers, customer profiling is essential, especially when pricing/assessing risk. Sales.UP offers an alternative marketing feature which allows insurers to build campaigns in real-time, based on pre-built insight data, and reach out to those in need of a particular type of cover. For example, a homeowner looking to move property may be in need of a new home insurance policy. Will it significantly improve the user experience? Sales.UP facilitates a deeper and more interactive relationship with the provider. Is it market-changing? Privacy is an issue, meaning Sales.UP is largely dependent on personal customer preferences and their willingness to submit their data to a third party. Therefore, any changes in the regulatory landscape could have a knock-on effect.

FinovateEurope 2017

TOTAL SCORE 4/5

Retail Banking

bankUP is a digital neo-bank focused on SMEs. It offers current accounts, cards, and business apps and focuses on addressing the needs of young entrepreneurs (dubbed ‘millennipreneurs’). It supports SMEs by offering services tailored to specific industries and business types. Real-time access to credit and trade financing services and its fintech service hub provides SMEs with various products and services, all in one digital frontend. bankUP provides automation around predictive financing in combination with accounting and collateral management, rather than traditional static lending products.

Is it original? bankUP empowers small businesses to better manage their business functions and make smarter decisions. It supports them with a customized set of business functionalities and personalized dashboards, helping to bring banking and managing SMEs to the next level by making it simple, digital, and flexibly customized. Is it long-lasting? With bankUP SMEs can connect different accounts (including those in other banks), and use built-in bookkeeping and plug-in accounting software. The option to upload invoices by email, forward them to accountants, and discuss them with the use of real-time notes can help entrepreneurs manage their finances more effectively. Is it operationally game-changing for the provider? bankUP is an ecosystem of services that allows SMEs to easily use the data from one service within another and benefit from the synergy. It offers APIs and data analytics tools, providing an opportunity to create vertically integrated industry apps to offer even more powerful tools for managing small businesses. Will it significantly improve the user experience? Using bankUP’s smart analytics tool to analyze all their transactions will help SMEs to gain insight and optimize their business processes. Its API can help SMEs access lending products, accounting tools, and use data-driven features in one place. This provides a tailor-made solution that matches their specific needs. Is it market-changing? Any service that can help SMEs with business functions and financial management will find a ready audience among customers and investors.

FinovateEurope 2017

TOTAL SCORE 5/5

bankUP supports SMEs with customized business functionalities

EyeVerify’s ‘Eyeprint ID’ is a convenient, secure, eye-based biometric authentication for mobile banking and payments. The technology leverages a mobile phone’s existing camera to image and map the unique veins in an individual’s eyes and other micro features in and around the eye, creating a digital key equal to a 50-character complex password. This will make PINs and passwords a thing of the past.

Is it original? Eyeprint ID is original as it offers an alternative to the use of fingerprints and voice commands. Eyeprint ID works in less than a second and is discreet. It crucially differs from most other eye verification services as it does not center around the iris, which typically requires the use of a special type of camera. Is it long-lasting? There is a concerted push across the industry towards adopting multimodal biometric authentication practices for added security – indicating that there will be increased demand for other modes of biometric authentication besides fingerprints going forward. Is it operationally game-changing for the provider? Eyeprint ID is a software that works on all types of mobile devices regardless of manufacturer or operating system. This makes it easy to integrate, quick to market, and lower in cost than hardware-based solutions. There is no extra cost for sensors or special devices, and scaling to a larger user base is easy and cost-efficient. Will it significantly improve the user experience? Eyeprint ID works on most smart devices and offers biometric authentication to consumers with devices that don’t have fingerprint scanners. It is convenient, secure, and private and replaces the need for consumers to remember PINs and passwords. Is it market-changing? A number of banks are investing in a wide array of biometric authentication techniques. Eyeprint ID is by and large a reflection of a wider movement in the industry towards the displacement of passwords, with an aim to increase user trust and safety in financial services worldwide.

FinovateEurope 2017

TOTAL SCORE 5/5

EyeVerify goes global with biometric authentication app

Emirates NBD and ICICI are the first banks in the UAE and India to pilot Infosys Finacle’s EdgeVerve Blockchain Framework solution for international remittances. The solution is a distributed and permissioned ledger that enables private, permissioned network creation with features such as managed permissions and standard blockchain concepts. It delivers faster and accurate automation of inter-bank processes, enhanced cyber security, and lower cost per transaction.

Is it original? Infosys Finacle’s blockchain offering has been specifically designed for the financial services industry. While the solution was pioneering in the UAE and India, it is likely that other banks will follow suit with similar upgrades to their internal systems. Is it long-lasting? The solution can be integrated into banks’ existing systems and processes to enable it to work with blockchain-powered networks, and is therefore compatible with existing legacy systems. Is it operationally game-changing for the provider? The solution offers banks the benefits of trusted recordkeeping, shared trusted processes, and reduced costs of complexity. Its asset-agnostic ledger framework can be used in any use case and does not require investment from the user. Will it significantly improve the user experience? The solution aims to lower overhead costs, which ultimately results in consumers paying less per transaction. Enhanced security features mitigate tampering, fraud, and instances of cybercrime, providing safer banking for customers. Is it market-changing? The new technology is aimed at updating complex legacy systems to provide enhanced security and convenience. Once banks adopt the technology, blockchain has the potential to become mainstream.

FinovateEurope 2017

TOTAL SCORE 4/5

Finacle’s blockchain solution piloted in the UAE and India

RISK from FinTecSystems automates the credit assessment process for lenders, helping to reduce time and risk. RISK connects lenders to borrowers’ bank accounts via an API, giving them a direct view of applicants’ incomes and expenditures. RISK automatically categorizes this data, and also identifies borrowers’ existing credit exposure. This is done is real-time, allowing loan applications to be processed in seconds.

Is it original? There are similar products on the market. Microbilt, for example, offers real-time access to borrowers’ bank accounts, thus enabling verification of income and other details. Is it long-lasting? RISK is an API-based product, and the advent of PSD2 in the EU and the Open Banking Standard in the UK means that this product is ideally placed to take advantage of the new opportunities that these initiatives will create. Is it operationally game-changing for the provider? Non-bank lenders have been hindered by their lack of full access to borrowers’ bank data, making them less able to accurately assess risk. RISK gives them full access to this data, allowing them to compete more equally with bank lenders. Will it significantly improve the user experience? With non-bank lenders able to lend more easily, consumer choice will be increased. The need for borrowers to manually submit financial documents is eliminated, and faster processing times means that funds can be advanced much more quickly. Is it market-changing? Outcomes for both lenders and borrowers are enhanced. Lenders benefit from reduced processing costs and higher conversion rates. Fraud is also reduced due to removing the opportunity for borrowers to submit fraudulent documents. Borrowers benefit from a simpler, faster application process, and improved access to a wider range of lenders.

FinovateEurope 2017

TOTAL SCORE 4/5

RISK from FinTecSystems helps lenders assess borrowers more quickly and accurately

TOTAL SCORE

FinovateEurope 2017

James by CrowdProcess is a platform that enables risk professionals to create, validate, and monitor credit risk models more efficiently. James can also be used by non-experts in credit risk by leveraging machine learning. The accuracy of James’ credit risk modeling is based on the quality rather than the number of indicators used.

Is it original? No. Machine learning applied to credit risk modeling is not new. Is it long-lasting? The application of machine learning in credit risk modeling will provide significant benefits for banks as they start to find tools and services to make sense of the copious amounts of data they already hold. Is it operationally game-changing for the provider? James provides financial institutions with the ability to decrease the number of non-performing loans (NPLs) and subsequently increase credit issuance. According to data from James, its credit risk modeling platform can reduce NPLs by up to 30%. The speed at which James can validate credit risk models, combined with the reduced need for credit risk expertise, means that bank operating costs will be lower. Will it significantly improve the user experience? Yes. James aggregates risk models on one platform, making it easier for analysts to monitor and provide timely assessments to regulators and internal clients. Is it market-changing? The assumptions underlying classical statistical theories, which are still widely used among banks, become less resilient as the data sets become larger. Therefore the ability of banks to monitor, refine, and validate their credit risk models quickly and efficiently is paramount in reducing a bank’s default rate. Platforms such as James will significantly increase the productivity and accuracy of credit risk modeling.

James by CrowdProcess reduces non-performing loans

4/5

Mobile Verify from Mitek is an ID verification system that offers document and facial authentication via mobile image capture. Mitek maintains a constantly updated database of forgeries that allows it to adapt to new fraud trends as they occur, using machine learning techniques. Other features include the ability to read biometric chips in passports and decode security features in US drivers’ licenses.

Is it original? Although mobile image capture of ID documents has been around for years, Mobile Verify has an enhanced ability to check for forged documents, thus improving the efficiency of KYC and AML processes. The ability to read passport-embedded biometric chips via a smartphone’s NFC reader is also unique. Is it long-lasting? With regulators forcing banks to continually strengthen their anti-fraud measures, and with forged documents becoming ever more convincing, there will be a strong and growing demand for products that help banks to address these challenges cost-effectively. Is it operationally game-changing for the provider? Mobile Verify’s fraud detection and biometric chip-reading features give Mitek a competitive advantage in the crowded digital onboarding market. Banks that use this service will also be able to conduct their KYC and AML checks more quickly, accurately, and cheaply than before, thus improving their operational efficiency. Will it significantly improve the user experience? The ability to fulfil all ID checks through the mobile channel is of clear benefit to consumers. Features such as the ability to warn users when there is too much glare on the image will reduce the chance of errors and failures during the verification process. Is it market-changing? The enhanced fraud detection capabilities of Mobile Verify, while offering a clear improvement upon existing mobile ID verification services, amount to an evolutionary, rather than a transformational, change in the onboarding process.

TOTAL SCORE 4/5

Mitek’s Mobile Verify makes ID verification more secure

FinovateEurope 2017

Moneyhub Enterprise is a white-label personal financial management platform that proactively identifies deficits in users’ finances, as well as suggesting switching to more cost-effective financial products. Moneyhub Enterprise also aggregates pension and investment products, providing a holistic view of a user’s financial position.

Is it original? Providing insights to users based on their own data and proactively ‘nudging’ them to act upon the analysis is not new. Is it long-lasting? As consumers have become increasingly time-poor the demand for assistance, simplicity, and efficiency has grown. Our 2016 Retail Banking Insight Survey found that consumers want more sophisticated help when managing their finances. Around a fifth of UK consumers want to receive recommendations and notifications of insufficient funds. Is it operationally game-changing for the provider? Moneyhub’s platform will provide a significantly richer picture of users’ finances that can be used to offer more competitive products through cross-selling, but also enable banks to anticipate the needs of their customers better. As different regulatory jurisdictions move towards open banking, Moneyhub will be able to offer active financial assistance rather than just suggestions. Will it significantly improve the user experience? Time-poor consumers will no doubt benefit from a platform that conducts analysis on their finances and then recommends beneficial actions. Is it market-changing? The proactive ‘nudges’ provided by Moneyhub will improve the financial savviness of users, forcing banks to work harder to retain and attract customers. It is also likely that Moneyhub’s platform will reduce the levels of consumer inertia towards financial products and services.

FinovateEurope 2017

TOTAL SCORE 4/5

Moneyhub becomes a financial assistant

Wealth Management

TOTAL SCORE

As governments burden all verticals with accumulative regulation around anti-money laundering (AML), so compliance checks have mushroomed. In light of this, Maltese IT consultancy Aqubix has created its ‘KYC Portal,’ putting all an organization’s compliance checks in one place.

Is it original? The gap in the market for diligence–tech has been rapidly closing as new technologies to conduct client checks spawn and spread. However, the compliance burden is still there – meaning that there is still room for B2B innovation. Aqubix has developed ‘automated risk factoring,’ ‘Global AML Dashboard,’ and a bulletproof face-to-face interview functionality to stand out from the crowd. Is it long-lasting? As long as regulators demand ever more stringent checks on financial customers, then a tool like this will be required. The KYC Portal’s adaptability enables users to make tweaks as and when new regulation is handed down. Is it operationally game-changing for the provider? The KYC Portal is a facilitator rather than a game changer. Regulators will demand that financial firms jump through the same compliance loop-holes whether they are KYC Portal subscribers or not. However, having the KYC Portal may mean less government fines for not doing so. Will it significantly improve the user experience? Though consumers of Aqubix’s KYC Portal will already be big users of diligence-tech, many of its features, such as the automated risk factoring, will be new. This ‘automation’ is essentially an adaptable algorithm which can be used to check documentation, alerting to any suspicious activity. Is it market-changing? The market for due diligence is one shaped by regulation rather than consumer demand. Nevertheless, it is a market that spans all verticals: the KYC Portal is currently used by financial, gaming, and real estate companies, with others likely to sign on as regulation takes effect this year.

Aqubix’s KYC Portal puts all compliance checks in one place

FinovateEurope 2017

3/5

Avoka Transact, a digital sales platform, has launched Insights. This is an analytics module that provides greater insight into customer friction points and behavior, allowing businesses to tackle issues such as conversion rates and account abandonment. According to Avoka, account opening abandonment exceeds 85% in many financial institutions. Insights aims to improve the user experience and make all processes as smooth as possible.

Is it original? There are competitors in the market that provide solutions for improving customer experiences, such as Temenos, but the concept of offering business- and customer-specific analytics to identify which solutions are needed is novel. Is it long-lasting? There is greater demand in the market for digital platforms and mobile compatibility. As more financial institutions add these to their propositions, they will appreciate the ability to better understand customer behavior and adapt their offerings accordingly. Data captured with Insights is actionable. Is it operationally game-changing for the provider? Financial institutions can improve the customer experience using data captured specifically about their business. Insights delivers analytics right down to specific fields, to identify where customers are spending the most time, at which point they are most likely to abandon, and at which stage customers request help. Will it significantly improve the user experience? From a user perspective, mobile device compatibility and a more pleasant user experience will be appreciated. Opening an account or applying for a loan without any extra effort improves user satisfaction. Is it market-changing? Insights aims to help financial institutions with providing a frictionless customer experience. It won’t disrupt the market: rather, it will help providers do what they do better without operationally changing the offering.

FinovateEurope 2017

TOTAL SCORE 4/5

Avoka Transact introduces analytics module Insights

FusionFabric.cloud is a platform that allows people to create, purchase, and sell applications. A trader for example can use the app store to look for a model that meets his needs. The trader looks for the app, buys it, and runs it on the bank’s own private cloud or Amazon web service. The trader finds the app because someone has previously identified a gap in the market. This creator can build the app using Misys technology and then publish it to the FusionStore, where it is ready for the trader to discover.

Is it original? The concept of a platform-as-a-service is not novel. While the platform provides a specific space for buying and selling applications that are created using Misys technology, the idea of an application marketplace, such as the one offered by Fidor, is already on the market. Is it long-lasting? There is greater demand and willingness to adapt to cloud applications. With this demand comes the importance of having a platform through which to develop and purchase applications. Is it operationally game-changing for the provider? This technology allows Misys to integrate into the application ecosystem through the platform’s app store and build upon its cloud-based strategy. Will it significantly improve the user experience? This technology allows several parties (software developers, fintechs, banks, students) to gain access to FusionCreator to develop applications for meeting their needs and those that the market seek. Is it market-changing? Market competitors can leverage the platform to develop new applications quickly and easily based on market needs. While Fidor was successful in Germany, its launch in the UK failed to make any meaningful headway and as such, Misys has the opportunity to disrupt.

FinovateEurope 2017

TOTAL SCORE 4/5

Misys launches software development environment

Is it original? Despite algorithm-based advice and market data provision not being new to the industry, Markets Mojo brings them together for the first time. This is a feature that neither market analysis providers, such as Zerodha, nor robo-advisors offer. Plus, it is free of charge for the end user. Is it long-lasting? The proposition not only appeals to experienced self-directing investors who don’t want to undertake the costs of an advisor, but also to broking houses looking for reliable forecasts. In fact, Markets Mojo analysts improve their algorithms on an ongoing basis to make sure they deliver accurate forecasts to their clients. Is it operationally game-changing for the provider? The company cleverly generates its revenues by acting as an API for financial intermediaries and media companies. Markets Mojo’s portfolio advice tool is offered to banks, and is customizable with their own models. This has made the company profitable one month after launch. Will it significantly improve the user experience? Experienced self-directing investors will find the platform a time-saver, as not only does it cover 100% of India-listed companies, it also provides detailed analysis and portfolio advice in the same place. Is it market-changing? Stock market analysis and algorithm-based advice is nothing new to the investment management industry. While the platform provides these features in a new concept, it is unlikely to disrupt the wider market.

Markets Mojo provides investors with detailed stock market analysis for around 4,000 listed companies. Users can do their own research to find the stock or futures that best fit their portfolios and strategies. The platform evaluates the best-performing stocks in an unbiased way, as they are not sponsored by any provider, nor are their fees dependent on sales as they are not brokers. It also provides portfolio analysis to subscribers and advises them on the next steps to take.

FinovateEurope 2017

TOTAL SCORE 4/5

Markets Mojo is making investors independent from financial advisors

Swaper, a P2P marketplace that allows investors from the EU to earn interest on loans sourced from Georgia and Poland, has launched a new version of its mobile application. The new tool simply requires users to choose the amount of money they want to invest, and the desired time horizon. As Swaper offers a fixed interest rate of 12% and a buy-back guarantee, there is little point in investors selecting particular loans they would like to fund.

Is it original? Swaper is the first P2P marketplace that allows investments to be made by simply adjusting the amount of money and the investment period along a slider. The company was the first to launch a mobile app for iOS and Android in 2016 (followed by others such as Twino), and it is innovating further. Is it long-lasting? The mobile app has already proved popular and will last as long as Swaper operates. The challenge might not be the longevity of the app, but the sustainability of the business in general. The company will have to make sure it can continue operating even if payday law regimes in countries such as Poland change. Is it operationally game-changing for the provider? The mobile app allows investors to regularly check their investments performance. Thanks to push notifications, they can choose to be informed each time they receive interest. As long as loans perform and interest is paid, this will prompt investors to increase their initial allocations, providing Swaper with more assets to boost its business. Will it significantly improve the user experience? Since the launch of the initial version of the mobile app in November 2016, Swaper discovered that 80% of its users engage with the platform only via a mobile device. This indicates a strong preference to invest via a mobile app rather than a traditional web interface. Further simplifying the investment process by shortening it to no more than a few taps is likely to attract even more users. Is it market-changing? While the simple functionality of the new mobile app may increase the popularity of P2P lending, it is not enough to change the face of the P2P marketplace industry.

FinovateEurope 2017

TOTAL SCORE

Swaper simplifies investments on its P2P marketplace via a slider feature in its mobile app

4/5

Wealth Wizards is a digital financial planning advice provider. It partners with employers to offer their staff pension and retirement advice, as well as general financial planning services, as an employee benefit. At FinovateEurope 2017 Wealth Wizards presented the new version of its Contribution Advice, part of its Pension Wizard. This tool is designed to deliver personalized recommendations about workplace pensions. Wealth Wizards’ platform is also offered as a white-label solution to other financial services providers.

Is it original? Previous versions of Pension Wizard focused on adjusting the value of individuals’ pension contributions in order to reach a target pension pot value. This was a similar approach to many digital wealth managers’ (including Nutmeg’s) goal-based algorithms. The updated tool provides more holistic advice, taking into account savings beyond the pension pot, projected state pension entitlement, and what consumers’ peers are doing. Is it long-lasting? With the ever changing UK pension freedoms law regime , and the FCA’s dedication to bridging the advice gap, the demand for pension advice is here to stay. The new version of Contribution Advice is the answer to this demand. Consumers still do not understand the importance of saving for retirement, but providing pension advice in an interactive, engaging, and digestible manner is a step towards changing this attitude. Is it operationally game-changing for the provider? The new version of Pension Wizard is an improvement on an existing tool and does not change the main business model of Wealth Wizards. Will it significantly improve the user experience? Catering for the growing demand for on-the-go solutions and apps, Contribution Advice was designed with a mobile-first approach. The intuitive app can quickly provide easily actionable recommendations. In more complicated situations when the Wizard’s algorithm cannot provide reliable advice, the consumer is referred to a team of human advisors. Their input is then used to improve the digital algorithm further. Is it market-changing? Saving for retirement remains low on the list of consumers’ priorities. The change in their (as well as employers’ and financial advisors’) mindset has to happen at a global level and will not be driven by a single competitor.

FinovateEurope 2017

TOTAL SCORE

Wealth Wizards’ new Contribution Advice enhances company’s Pension Wizard capabilities

3/5

Meet the team

FinovateEurope 2017

PAYMENTS RETAIL BANKING

WEALTH MANAGEMENT INSURANCE

EDITORIAL & MARKETING

Bee Gebhardt Senior Editor

Kristian Jackson Editor

Appendix

Samuel Murrant Senior Analyst

Daoud Fakhri Principal Analyst

Sean Harrison Analyst

Resham Karira Analyst

Kit Carson Head of

Banking Products

Nicolae Bacila Analyst

Stewart McEwan Head of Content,

UK General Insurance

Bartosz Golba Interim Head

Silvana Amparbeng

Analyst

Nicole Douglas Analyst

Thomas McCourtie Analyst

UK General Insurance

Patricia Davies Head of Insurance

Definition of parameters Is it original? Is the innovation significantly different to other products or services already on the market? Is it long-lasting? How much longevity will the innovation have? Is the innovation more than a novelty that will only be of transient appeal to consumers? Is it sustainable for providers in the long run, with respect to the cost and complexity of provision? Is it operationally game-changing for the provider? How much impact will the innovation have on providers with respect to cost, speed, and efficiency of provision? Will it reduce barriers to entry or open up new revenue streams? Will it significantly improve the user experience? How much impact will the innovation have on consumers with respect to speed, ease of use, and cost or price? Will it enhance or add value to their experience, or will it lead to improved outcomes for consumers? Is it market-changing? How much overall impact will this innovation have across all market participants, both providers and end users?

Appendix

FinovateEurope 2017

Sources Avoka (2017) Avoka Transacts Insight Australian Business Review (2015) NAB launches ‘robo’ offering bankUP (2017) Company website bankUP (2017) Press release - new online bank for young entrepreneurs Business Standard (2016) Markets Mojo: Using algorithms to analyse stocks Economic Times (2016) Market mojo raises Rs 2cr gets valued at $10million EyeVerify (2017) Company website Finovate (2016) FinovateAsia Sneak Peek: Marketsmojo Finovate (2017) FinovateEurope Sneak Peek: W.UP Finovate (2017) FinovateEurope Sneak Peek: HotDocs Finovate (2017) FinovateEurope Sneak Peek: Mitek Fintech Roundup (2017) iProov Infosys Finacle Infosys Finacle partners with Emirates NBD and ICICI Bank to Launch First Blockchain Pilot Network Markets Mojo (2017) Our team Markets Mojo (2017) Portfolio Misys (2017) Misys Mitek (2017) Mobile Verify Your Story (2016) Moneycontrol’s founding team starts MarketsMojo to make equity investment mainstream Ask the analyst For further information, the Financial Services team can be contacted at clientservices.fs@globaldata.com.

Appendix

FinovateEurope 2017