Ncontracts, the leading provider of integrated compliance, risk, and vendor management solutions to the financial services industry, announced it has acquired Quantivate, a growing provider of governance, risk, and compliance (GRC) solutions for banks and credit unions.

With this acquisition, Ncontracts further solidifies its position as the software-as-a-service (SaaS) and knowledge-as-a-service (KaaS) leader at a time when increased regulatory scrutiny is shining a spotlight on enterprise risk management practices at U.S.-based financial institutions. The transaction will add complementary solutions that will provide expanded services for customers, while growing Ncontracts’ workforce to 350 employees with a combined customer base of over 4,000 financial institutions.

“We are thrilled to join forces with Quantivate,” said Michael Berman, Ncontracts founder and CEO. “We are both mutually committed to helping financial institutions reduce risk, improve compliance, and control costs, so combining our resources empowers us to be an even better provider of software and services for our customers and the financial industry.”

The Quantivate acquisition demonstrates Ncontracts’ continuous commitment to growth from both an organic and inorganic perspective. This history of year-over-year growth has led to Ncontracts being named to the Inc. 5000 list of fastest growing private companies in America for the fifth consecutive year in 2023.

Andy Vanderhoff, Quantivate founder and CEO, had this to say about the transaction, "Quantivate has always believed in the power of innovative technology and exceptional people to help banks and credit unions thrive. Ncontracts shares this mission, and I’m excited to watch as the strength and experience of our united teams take risk management solutions to the next level.” 

Terms of the acquisition were not disclosed. Michael Berman, CEO of Ncontracts, will continue his role as CEO of the newly combined company.

Consumer preferences continue to shift at a rapid pace, and banks and credit unions are being challenged to adapt. In addition to evolving customer expectations, institutions across the globe face lingering economic pressures that make driving efficiencies and optimizing processes a significant priority.

These factors are creating both challenges and opportunities as we look to a new year. Experts from NCR Atleos today shared the following trends to watch in 2024.

Self-service banking strategies are prioritized. The way consumers want to interact with service providers of all types has shifted, and banks and credit unions are no different. There is a widespread shift toward self-service, and institutions must respond accordingly. ATMs and ITMs are critical components of such a strategy, bridging the gap between digital to physical and physical to digital touchpoints.

Cash remains a global mainstay. Despite predictions of cash’s demise, it still remains a necessity across the globe. Millennials and low to moderate income households increasingly use cash to budget, especially in light of economic uncertainty. Plus, cash is crucial for the unbanked and those without access to credit. Next year, banks and credit unions will give more attention to how to manage cash in efficient, effective ways and how to expand access to cash for their customers.

Physical banking touchpoints will look (and feel) different. As digital usage and adoption continues its upward trajectory, institutions globally are reimagining their physical touchpoints and branch networks. For example, there is a rise in the shared utility model, which enables self-service for customers while reducing the reliance on extensive branch and ATM infrastructure.

In this approach, institutions plug into a network of ATMs within trusted retail locations (grocery, convenience/fuel and big box stores), allowing customers to withdraw – and in some instances, even deposit – cash from the convenience of where they live and shop. Such a strategy also benefits retailers, providing higher foot traffic in stores and bringing additional value to shoppers.

The as a Service model grows and expands. Even though ATMs remain critical to financial institutions’ self-service strategies, the traditional deployment model can present challenges for some institutions as they work to operate efficiently and quickly innovate. Instead, more institutions are migrating to an ATM as a Service model, relying on a trusted partner to outsource partial or complete ATM maintenance and management.

This is not the only touchpoint that is shifting to an as a Service model; next year, ITM as a Service will gain momentum as well. Such an approach to these self-service channels boosts efficiencies, enhances security and compliance and delivers a more modern, optimized customer experience. 

Better options for the under and unbanked will gain momentum. Nearly 1.7 billion people globally are underbanked, lacking access to much needed financial services. In an attempt to close this gap, many financial institutions will focus on offering alternatives to serve these underserved groups. New cash deployment strategies (especially those that extend access to cash more quickly), the shared ATM network utility model and the reconfiguration of physical touchpoints like ATMs and ITMs can and should be used to increase financial inclusion.

“As the way people want to engage with and access financial services shifts, bankers’ strategies and retail banking distribution models should as well,” said Stuart Mackinnon, Chief Operating Officer, NCR Atleos. “At NCR, we are uniquely positioned to deliver the end-to-end solutions and services that power digital to physical and physical to digital transactions, increase operational efficiencies and position financial services companies to grow and succeed.”

Spectrum Markets (“Spectrum”), the pan-European trading venue for securitized derivatives, has published its SERIX sentiment data for European retail investors for November, revealing a sharp decline in sentiment towards the German DAX 40 index, reaching 93 points this November, its lowest point in the past two years. 

The benchmark index DAX 40 comprises the 40 largest German stocks listed on the Frankfurt Stock Exchange.

The SERIX value indicates retail investor sentiment, with a number above 100 marking bullish sentiment, and a number below 100 indicating bearish sentiment. (See below for more information on the methodology).

Market opinion

The DAX 40 index experienced significant shifts throughout the month, dropping below 15,000 points at the beginning of November, but regaining momentum toward the month’s end, returning to the 16,000 mark again.

Various factors are contributing to the downward pressure on German share prices, including declining economic expectations, corporate profit downturns, and geopolitical uncertainties due to the conflicts in the Middle East and Ukraine. Another risk is the threat of rising interest rates on corporate balance sheets, potentially deterring future investments.

“The cautious position of many retail investors may also be caused by the recent German budget crisis. Chancellor Scholz’s unsuccessful attempt to redirect 60 billion euros from pandemic funds to a climate fund, following the German court's decision, has deterred funding opportunities for companies,” explains Michael Hall, Head of Distribution at Spectrum.

Spectrum’s November data

In November 2023, 108.8 million securitised derivatives were traded on Spectrum, with 32.2% of trades taking place outside of traditional hours (i.e., between 17:30 and 9:00 CET).

82.9% of the traded derivatives were on indices, 10% on currency pairs, 3.9% on commodities, 3% on equities and 0.2% on cryptocurrencies, with the top three traded underlying markets being DAX 40 (32.4%), NASDAQ 100 (23.4%), and S&P 500 (11.2%).

Looking at the SERIX data for the top three underlying markets, all moved into bearish territory, with the DAX 40 dropping to 93, S&P 500 to 89, and NASDAQ 100 to 93. 

Calculating SERIX data

The Spectrum European Retail Investor Index (SERIX), uses the exchange’s pan-European trading data to shed light on investor sentiment towards current development in financial markets.

The index is calculated on a monthly basis by analyzing retail investor trades placed and subtracting the proportion of bearish trades from the proportion of bullish trades, to give a single figure (rebased at 100) that indicates the strength and direction of sentiment:

SERIX = (% bullish trades - % bearish trades) + 100

Trades where long instruments are bought and trades, where short instruments are sold, are both considered bullish trades, while trades where long instruments are sold and trades where short instruments are bought are considered bearish trades. Trades that are matched by retail clients are disregarded. (For a detailed methodology and examples, please visit this link).

Citi has led a strategic investment round in Supra. Far Out Ventures and H20 Capital also participated in the financing round.

Supra is a Colombian fintech that enables cross-border payments and treasury solutions for small and medium-sized businesses (SMBs) that participate in import and export activities.

The new capital will enable the growth of Supra’s Colombian operations to fulfil its payment aggregator role in partnership with Foreign Exchange Market Intermediaries (IMC) and licensed Payment Service Providers.

Diego Santoyo, Head of Corporate Sales and Solutions for the Andean region at Citi, said: “Citi’s best-in-class cross-border payments and FX technology will help enable Supra’s operations and expansion in Colombia.”

“At Supra, we are developing cutting-edge cross-border payment solutions that provide value-added services to our clients as well as transaction speed and highly competitive rates. Our technology is one of the first in the country that complies with the regulations issued by the Colombian Central Bank for payment aggregators," said Emilio Pardo, CEO and co-founder of Supra.

In Colombia, more than 40,000 companies participate in import and export commercial activities and the market for business-to-business cross border payments in 2022 was approx. $134 billion according to data from the Colombian Tax Authorities (DIAN).

The investment was led by Citi’s strategic investments arm, which invests in innovative fintech companies that are aligned to Citi’s core businesses.

“We believe Supra’s product, business model and collaboration with Citi will allow them to create competitive moats in the multi-billion-dollar import and export cross-border payments market in Colombia,” said Aldo Alvarez, Lead for LatAm Strategic Investments in Citi’s Markets business.

IXOPAY, a leading payment orchestration platform, and Visa, a global leader in payments, are pleased to announce the introduction of support for network tokenization in IXOPAY. Network tokenization simplifies the handling of card-on-file transactions for merchants, which are commonly used to handle subscription billing as well as purchases by return customers.

Tokenization is a security measure that safeguards sensitive card data through the use of tokens. These contain no sensitive card data, instead referencing card data stored in a secure vault. Tokenization is a key component of merchants’ compliance with PCI DSS (Payment Card Industry Data Security Standard), which determines how credit or debit card data must be stored and handled to ensure safe card payments.

Network tokenization uses tokens issued directly by Visa and other card schemes. The underlying card data referenced by the token does not include personal data such as the name and address of the cardholder; card data such as the 16-digit card number (PAN) and expiry date are stored at the scheme. This approach ensures that card data is kept up-to-date, as participating issuers are mandated to perform lifecycle management of the token, eliminating the risk of a transaction being declined due to outdated card details. Changes to the card’s data, such as when a card is re-issued, do not invalidate the token stored by merchants and used to process transactions, as is the case with tokens not issued directly by the card schemes. Updates to card data are handled directly at the card scheme while retaining the validity of the token.

“Network tokenization gives merchants peace of mind, knowing that changes to customers’ card data will not result in declined transactions.”, says Rene Siegl, Founder and Executive Chairman of IXOPAY. “It is thus another tool at merchants’ disposal in IXOPAY to ensure smooth transaction processing and reduce friction for customers.”

IXOPAY will function as a token aggregator, requesting network tokens from Visa and other card schemes on behalf of merchants, and storing these tokens in the IXOPAY platform. Online merchants stand to benefit from lower friction and higher authorization rates over the entire lifetime of the customer relationship when processing card-on-file transactions.

“Subscription-based services in particular stand to benefit from the ability to process payments over the entire lifetime of a customer via network tokens.”, says Rene Siegl. “But the benefits will also be felt by merchants with a loyal customer base by reducing friction at checkout. Minimizing the number of declined transactions is key to maximizing revenue and delivering a seamless customer experience, free of hassle.”

“Tokens are a simple, yet powerful concept pioneered by Visa, concealing and devaluing sensitive payment data to make digital payments more secure. We look forward to collaborating with IXOPAY, as their innovation ‘made in Austria’ will further optimize the handling of tokens for merchants, allowing them to provide their customers with a safe and even more convenient user experience“, says Stefanie Ahammer, Country Manager Austria at Visa.

GoCardless, the bank payment company, has announced a partnership with Acre, an all-in-one platform for mortgage and protection brokers, to help them collect service fees from their clients in a more seamless and cost-effective way.

As the only platform brokers need to manage a client’s mortgage journey from start to finish, Acre is changing the way people buy homes. It’s designed to make the mortgage and protection process more streamlined, with easy case management capabilities and smart dashboards all in one place, so brokers can spend less time on admin and more time growing their business.

The GoCardless integration accelerates the payment process. Previously, brokers had to look up how much the client owed in Acre, collect the fees off-platform, and then go back to Acre to reconcile the payment. By integrating Direct Debit for recurring payments and Instant Bank Pay, GoCardless' open banking payment feature for one-off payments, directly into the Acre platform, this three-step process is shortened to one -- enabling brokers to manage, collect and reconcile their payments with ease. 

This will also eliminate expensive card payments, while creating a smoother payment experience for the customer.

Justus Brown, CEO at Acre, said: “By partnering with GoCardless, we are making it easier, safer and more reliable than ever for brokers to take payment for their services. More often than not we see brokers relying on outdated, manual processes to collect fees, receiving emails with credit card numbers that get typed into clunky card terminals in a physical office. From today, brokers can instantly send clients an online payment link or set up Direct Debits via our Customer Portal, making the whole process frictionless, more secure and easier for all involved.”

Pat Phelan, MD of UK & Ireland and Chief Customer Officer at GoCardless, said: “Brokers today have enough on their plate; they don't have time to deal with hours of manual admin or late payments. That's why we're excited to offer bank payments with Acre, helping brokers save time and money, stress less and get paid on time.” 

The announcement adds another leading name to GoCardless’ roster of more than 350 partners. These partnerships see businesses seamlessly integrating GoCardless into the software they already use, managing payment and other business activities in one place.

Ebury, the global financial technology firm headquartered in London, announces the acquisition of financial services firm Prime Financial Markets based in Johannesburg, South Africa.  

Prime Financial Markets is a registered Financial Services Provider offering financial market advice and intermediary services in the treasury and financial market space with significant experience supporting customers with their financial market exposure.

Prime Financial Markets’ capabilities include treasury evaluation services, hedge execution services, systems offering, liquidity and covenant management as well as treasury policy and risk integration advice. 

The acquisition marks Ebury’s entrance into Africa for the first time, establishing a local office in South Africa. Demand for Ebury’s services has driven significant international growth with over 1,700 employees operating from 38 offices in 23 countries with annual transaction volumes of over $27 billion.  

Ebury is an FX and payments specialist, offering financial solutions to help SMEs and midcaps trade internationally. It specialises in international payments and collections, offers foreign exchange in over 130 currencies for both major and emerging markets, as well as cash management strategy, trade finance, and foreign exchange risk management.

Juan Lobato, Co-Founder and Co-CEO at Ebury, commented: “We’re delighted Prime Financial Markets are joining the Ebury family. Its complimentary suite of services is a natural fit with our global capabilities and the transaction enables us to establish a new geographic presence at the heart of Africa’s financial services market. International expansion is key to our strategy and this acquisition further strengthens both our platform for growth and our ability to provide a market-leading service to clients.”

Gert Delport, Managing Director at Prime Financial Markets, commented: “Ebury’s global scale, innovative technology and bespoke customer service makes them a natural partner for our business. It is a hugely ambitious business and we look forward to achieving those lofty strategic goals together particularly in Africa, our geography of expertise.”

Evgeniy Ivantsov, Chief Marketing Officer at FYST, commented: “We understand that consumer and merchant attention is often focused on acceptance, but acquiring is a vital link in the payment chain. Without the merchant acquirer, there is nothing to connect merchants with the broader payment ecosystem, or ensure secure and efficient payment processing, or even effectively protect against fraud. Acquirers also play a crucial role in compliance with regulatory standards and are the secret ingredient to a positive customer experience.

Evgeniy added: “The past few years have been a rollercoaster for merchant acquirers: from the boom in e-commerce that saw many companies experience unexpected growth, to the shock of consumer belt-tightening in response to rising inflation and energy prices. This report give insight into what a successful acquiring platform looks like, and it’s our hope that it will help arm merchants with the tools they need to survive the ongoing economic storm.”

Fibank (First Investment Bank) has launched a new high-end card product suitable for business customers – Visa Platinum Business Debit. The cards are designed for managing company funds and bring a number of privileges to customers, such as:

• Attractive cash back;
• Travel insurance with comfortable coverage when traveling abroad;
• Exclusive services and other benefits.

Fibank already issues corporate Visa Business Debit cards in each of its branches in Sofia and across the country. The cards can be issued to the manager of the specific company and to persons authorized by the company. They are free of charge for issuance and upon payment in the commercial establishments in Bulgaria and abroad.

With Visa Platinum Business Debit, paying company expenses is fast and secure, making control and accounting significantly easier. On business trips, employees with business debit cards from Fibank can pay flexibly, and reporting to management is just a matter of a few clicks. In case the card is lost or stolen, the preservation of the funds in the account is ensured by reporting this fact to the bank. Cards are canceled and replaced quickly, secure and fast account access being provided immediately.

Visa Platinum Business Debit cards provide participation in a cash back program: reimbursement of 0.2% of the turnover made every 6 months, upon reaching a turnover of at least BGN 10,000 (ATM, money transfer and gambling transactions are excluded from the turnover). They have travel insurance when traveling abroad from Generali with coverage up to USD 15,000. In addition, Fibank customers can benefit from access to business airport lounges with the Lounge Key program and special offers for various hotel discounts worldwide.