Fusion Essence Cloud will automate core processes and digitalize the end-to-end customer journey to support growth in mortgage lending and savings

Finastra today announced that UK-based specialist building society, Teachers Building Society, has selected Fusion Essence Cloud, its next-generation Software as a Service (SaaS) core banking solution, to deliver a new core and digital banking service. Fusion Essence Cloud will help Teachers Building Society (Teachers BS), the first-ever UK building society customer to invest in the solution, process significantly higher volumes of mortgages, savings applications, and money transfers; enabling the firm to continue to grow its member base through an enhanced customer experience.

Simon Beresford, CEO of Teachers Building Society, said," After a rigorous global selection process, Finastra is the standout partner for us. Finastra's commitment to responsible business and social innovation held strong appeal. Its deep expertise, innovative solutions, and proven experience with 90 of the world’s top 100 banks left us in no doubt about the benefits of the appointment. Investing in the new platform will ensure we can deliver best in class products and service to brokers and their clients, as well as teachers, providing enhanced engagement experiences to both our core audiences."

Fusion Essence Cloud, a SaaS solution on Microsoft Azure, gives Teachers BS the flexibility to bring new products to market and respond to new demands quickly, while unlocking access to data and analytics for a personalized customer experience. With native digital online and mobile banking capabilities, Fusion Essence will enable the building society members to open and manage savings accounts easily and transact digitally with a cutting-edge experience. The team at Teachers BS will also benefit from end-to-end straight through processing of higher volumes of mortgages and savings, due to pre-built integration with software specialists BEP Systems, for origination, and Fairmort, for regulatory reporting.

Anand Subbaraman, General Manager, Banking, at Finastra said, “Fusion Essence Cloud will give the Teachers BS team the flexibility to meet ongoing customer needs when it comes to home ownership. Our integrated solution streamlines core processes, such as onboarding, money transfers, mortgage origination and regulatory reporting, and will enable Teachers BS to focus on business expansion while giving its customers the best digital experience. As our first UK building society customer, we are delighted to be supporting Teachers BS’ ongoing growth and success and to be working with them to build ‘the building society of the future’.”

Teachers BS is the first UK building society to invest in Fusion Essence SaaS to serve its core audiences more effectively. The mutual was founded in the 1960s specifically to offer mortgages to teachers, a group considered ‘unattractive’ by larger lenders due to their smaller deposits and relatively low income. Today, the Society’s purpose remains the same; to support teachers who are first-time buyers, as well as those with atypical income through Teachers for Intermediaries, its specialist complex lending brand. The new platform, powered by Finastra, which aims to unlock the power of finance for everyone, will enable the Society to continue its mission and grow its business across both groups.

Kapital Investment Group B.V. (KIG BV), part of the global financial services group Global Kapital Group, has acquired Işık Menkul Değerler A.Ş., a multi-asset broker in Turkey.  

The acquisition gives KIG BV a greatly increased product range, as Işık Menkul is a multi-asset broker offering trading in stocks, futures, FX, commodities as well as CFD products.

Işık Menkul increases the Group’s global presence by adding the MENA region after Europe, Australia, Asia and the US, marking a significant step in KIG’s plans to become a leading global multi-asset group.

Işık Menkul is a well-established company, with a 35-year track-record of providing brokerage services. Part of its reputation has been linked to making financial markets more accessible for investors and traders in its region. The company was the first broker in Turkey to offer commission-free stock trading in 2021 – a decision that has been viewed as revolutionary.

It is licenced and regulated by the Capital Markets Board of Turkey (CMB) and offers leveraged trading on stocks and foreign exchange derivatives. The acquisition gives KIG BV the right to operate in Turkey, expanding the Group’s global reach.

KIG BV Chair of the Board Engin Çubukçu said: “The acquisition of Işık Menkul marks one of the most important steps so far towards our goal of becoming a multi-asset investment platform. As a top-tier financial institution with a significant share in Turkish capital markets, Işık Menkul serves more than 26,000 clients in Turkey, providing a gateway into the Istanbul Stock Exchange (BIST) while offering futures, FX, commodities and CFDs for trading.

Our strategy involves constant innovation to make financial services more accessible to investors. Işık Menkul has proved that it can make great improvements in the industry and has secured a place as one of the region’s most reputable financial institutions. It attracted our attention with its dedicated efforts for increasing accessibility to financial markets.

What excites us the most is how Işık Menkul’s business strategy matches ours. Evolving into a multi-asset investment platform focusing on improving its clients’ trading experience, Işık Menkul positions itself as an all-round financial institution, going beyond offering trading products and platforms. It is always more fruitful to work with companies that you share a common purpose with.”

Çubukçu also pointed out the strategic importance of the acquisition: “Turkey is one of the most important markets in the MENA region, as it is highly developed and very competitive. Entering the Turkish market with a financial institution with such strong credentials will give us a significant advantage over   our competitors. Işık Menkul is a company that prioritises transparency, a key point in the establishment of a loyal client base. It is also a pioneer being the first zero commission stockbroker in Turkey which has helped it establish a strong brand recognition, crowning its already highly reputable brand image.”

This year has been a breakthrough year for KIG BV with global acquisitions and licences. It has acquired FairMarkets in Australia, stepped into the US with GK Trade New York, established a broker in Africa licenced by FSC Mauritius and acquired a CMB regulated multi-asset broker in Turkey, all in the first seven months of 2021.

Kapital Investment Group B.V. (KIG BV) is a Dutch private company with limited liability, incorporated on August 23, 2019. Owned by GKG Holding BV in Netherlands, KIG BV operates across the globe in different business segments with highly qualified professionals throughout its subsidiaries. With the vision and goal of becoming “a global multi-asset investment platform and technologies holding company”, the Group is expanding into different regions by acquisitions and organic growth.

Few banks are disclosing the number of AI users that engage with their chatbots. Why? Bank of America reported about 20 million or about 30% of their customers arere using ERICA – their chatbot. ERICA has been in use for about 4 years, So, Foresight Research wondered about consumer resistance to AI and chatbots and surveyed 400 consumers of banking products and services to find out the resistance to AI in Georgia.

To start with, about 85% of all consumers are comfortable with asking banking questions or gathering advice on investments, loans or retirement planning in-person. But when asked about call center text message engagement that number drops to about 2 of 3 customers. For chatbots or AI a low 51% of consumers are comfortable using this technology for routine questions. For gathering information or for asking for advice on loans, retirement planning or investments only 44% would be comfortable using AI. While chatbots are still in their infancy, it seems that consumer adoption will take a lot of time. Not surprisingly, younger consumers are more comfortable with this technology and when it comes to Gen X or Baby Boomers a tall task can be expected. Foresight found one surprise – high income consumers are more likely to become comfortable perhaps because they have more need – especially for advanced applications. Of course, advanced chatbots are not yet available, but expanding technology is just one issue – another is consumer adoption.

In addition to younger and high- income consumers, there are a few small rays of light. One area is satisfaction with their primary financial institution. Consumers who are extremely or very satisfied with their bank’s performance in problem solving, offering financial advice, and digital banking are more likely to express comfort with routine AI and advanced AI applications. So, the overall customer experience seems to be a prerequisite to automated banking adoption.
  
Foresight Research (a Michigan marketing research company) and a leader in cost effective syndicated market research has been working with Fortune 500 companies for over 20 years. Visit our website, shoot us an email or give us a call to find out more about this report and other available reports.

Leading anti-money laundering specialist SmartSearch has achieved its best ever first half year results in 2021, following a surge in demand for its online ID check and due diligence platform.

The multi-award-winning RegTech specialist, based in Ilkley, West Yorkshire recorded 27% in business growth and an increase in users from 45,000 to 53,000. In addition, the firm has seen 21% expansion in its team in the first half of the year, increasing from 135 in January to 164 in June.

After the best year in SmartSearch’s history last year, 2021 has started on a record-breaking pace. The record results in 2021 are as a result of SmartSearch’s industry-leading anti-money laundering product becoming even more essential for regulated businesses.

Across industries, there have been increasing fraud and money-laundering attempts since the outbreak of the pandemic in March 2020. The global crisis opened a window for attempted fraud as lockdown caused face-to-face interactions to become scarce, and criminals used this opportunity to digitally alter documents.

These attempts to deceive are not just restricted to the UK and SmartSearch began offering its market-leading services internationally last year. The AML specialist opened an office in the USA in July last year, and in May 2021 expanded into the Netherlands.

John Dobson, CEO at SmartSearch, which now operates in the UK, US and the EU, said the results were a reward for the hard work of the SmartSearch team.

He said: “We have been continually innovating in the past year to stay ahead of the competition. The market is getting more crowded, but none of the other entrants to the sector offer the breadth, or efficiency of our product.

“The pandemic certainly has attracted the attention of those looking to attempt fraud, and our product has never been more critical to prevent it. Even with lockdown restrictions easing, some businesses are still operating remotely when on-boarding clients, and our system provides a quick and easy method to accurately identify customers.

“Despite the rapid recruitment achieved already, we are still looking to expand our team due to the growth we’ve achieved in the first-six months of the year. We are recruiting for a range of roles, including developers, sales staff and customer service professionals.

“We recently celebrated our tenth-year in operation, and the business continues to go from strength-to-strength. Each year has brought its own challenges, perhaps none as tough as last year, but we are proud to be on course for another record-breaking year in 2021.”

SmartSearch’s industry leading technology can screen new and existing clients without the need to meet in person. With just a few details, name, date of birth and address, the electronic verification technology can identify legitimate clients in just two-seconds.

To find out how SmartSearch’s unique AML platform can enable your business to comply with the latest money-laundering regulations and meet all your Know Your Customer needs, visit www.smartsearch.com 

TrueLayer, Europe’s leading open banking platform, has announced that Clement Boulais has joined the firm as General Manager for France. A highly experienced commercial manager and fintech expert, Paris-based Clement will define and manage commercial strategy in France, alongside TrueLayer’s Chief Revenue Officer Max Emilson. 

The announcement comes as TrueLayer consolidates its position as the leading open banking platform across Europe, routing more than half of all traffic in the UK, Ireland and Spain. TrueLayer offers 90%+ coverage of French banks delivered through PSD2-compliant APIs and has been active in France through its collaboration with innovators such as Revolut.

“Open banking can solve many of the customer pain points in ecommerce, B2B, wealth and fintech. The growth of instant, bank to bank payments and the next phase of their evolution becoming embedded across multiple industries makes this an incredibly exciting time to join a market leader in TrueLayer.” Clement commented. “We can use our experience and expertise to deliver meaningful financial products to customers and support innovative services that will benefit French consumers and businesses.”

Clement has been an advocate for fintech and open banking for many years, having been the Head of Startup Engagement at La French Tech, the French Economy Ministry’s organisation for promoting startups in the country. He also acted as a mentor at Techstars in Paris where he advised firms on fundraising and proposition development. He joins TrueLayer from GoJob, an online recruitment platform specialising in temporary work, where he was VP of Sales. 

Max Emilson, CRO at TrueLayer, commented: “TrueLayer is accelerating its European expansion, working with clients to replace costly, poorly converting card payments with instant, secure bank-to-bank payments that deliver a better customer experience. Clement will be playing a critical role for us in France, building on our work with clients such as Revolut. His experience, particularly within the French fintech and startup ecosystem, will be vital as we continue to grow in the country.”

Brings together two of the fastest growing global fintech companies to advance shared mission of economic empowerment and financial inclusion

Square, Inc. and Afterpay Limited today announced that they have entered into a Scheme Implementation Deed under which Square has agreed to acquire all of the issued shares in Afterpay by way of a recommended court-approved Scheme of Arrangement. The transaction has an implied value of approximately US$29 billion (A$39 billion) based on the closing price of Square common stock on July 30, 2021, and is expected to be paid in all stock. The acquisition aims to enable the companies to better deliver compelling financial products and services that expand access to more consumers and drive incremental revenue for merchants of all sizes. The closing of the transaction is expected in the first quarter of calendar year 2022, subject to the satisfaction of certain closing conditions outlined below.

“Square and Afterpay have a shared purpose. We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles,” said Jack Dorsey, Co-Founder and CEO of Square. “Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands.”

Afterpay, the pioneering global ‘buy now, pay later’ (BNPL) platform, will accelerate Square’s strategic priorities for its Seller and Cash App ecosystems. Square plans to integrate Afterpay into its existing Seller and Cash App business units, enable even the smallest of merchants to offer BNPL at checkout, give Afterpay consumers the ability to manage their installment payments directly in Cash App, and give Cash App customers the ability to discover merchants and BNPL offers directly within the app.

“Buy now, pay later has been a powerful growth tool for sellers globally,” said Alyssa Henry, Lead of Square’s Seller business. “We are thrilled to not only add this product to our Seller ecosystem, but to do it with a trusted and innovative team.”

“The addition of Afterpay to Cash App will strengthen our growing networks of consumers around the world, while supporting consumers with flexible, responsible payment options,” said Brian Grassadonia, Lead of Square’s Cash App business. “Afterpay will help deepen and reinforce the connections between our Cash App and Seller ecosystems, and accelerate our ability to offer a rich suite of commerce capabilities to Cash App customers.”

Afterpay is an industry leader with a best-in-class product and strong cultural alignment with Square. As of June 30, 2021, Afterpay serves more than 16 million consumers and nearly 100,000 merchants globally, including major retailers across key verticals such as fashion, homewares, beauty, sporting goods and more. Afterpay empowers consumers to access the things they want and need, while allowing them to maintain financial wellness and control. Afterpay also assists merchants in growing their businesses by helping to drive repeat purchases, increase average transaction sizes, and provide their buyers with the ability to pay over time. Afterpay is deeply committed to helping people spend responsibly without incurring service fees for those who pay on time, interest, or revolving debt, and supports consumers in a number of countries across APAC, North America and Europe (including under its Clearpay brand).

“By combining with Square, we will further accelerate our growth in the U.S. and globally, offer access to a new category of in-person merchants, and provide a broader platform of new and valuable capabilities and services to our merchants and consumers. We are fully aligned with Square’s purpose and, together, we hope to continue redefining financial wellness and responsible spending for our customers,” said Anthony Eisen and Nick Molnar, Afterpay Co-Founders and Co-CEOs. “The transaction marks an important recognition of the Australian technology sector as homegrown innovation continues to be shared more broadly throughout the world. It also provides our shareholders with the opportunity to be a part of future growth of an innovative company aligned with our vision.”

For Square, BNPL presents an attractive opportunity supported by shifting consumer preferences away from traditional credit, especially among younger consumers, consistent demand from merchants for new ways to grow their sales, and the global growth in omnichannel commerce. Combined, Square and Afterpay’s complementary businesses present an opportunity to drive growth across multiple strategic levers, including:

• Enhance both the Seller and Cash App ecosystems. Afterpay’s global merchant base will accelerate Square’s growth with larger sellers and expansion into new geographies, while helping to drive further acquisition of new Square sellers. Afterpay will expand Cash App’s growing product offering, enable customers to manage their repayments, and help customers discover new merchants when the Afterpay App is integrated into Cash App.
• Bring added value, differentiation, and scale to Afterpay. Afterpay will benefit from Square’s large and growing customer base of more than 70 million annual transacting active Cash App customers and millions of sellers, which will expand Afterpay’s reach and growth both online and in-person. Afterpay consumers will receive the benefits of Cash App’s financial tools, including money transfer, stock and Bitcoin purchases, Cash Boost, and more.
• Drive long-term growth with meaningful revenue synergy opportunities. Square believes Afterpay will be accretive to gross profit growth with a modest decrease in Adjusted EBITDA margins expected in the first year after completion of the transaction. Square sees an opportunity to invest behind Afterpay’s strong unit economics as well as attractive growth synergies, including the opportunity to introduce offerings and drive incremental growth for sellers and increased engagement for Cash App customers.

Afterpay’s Co-Founders and Co-CEOs will join Square upon completion of the transaction and help lead Afterpay’s respective merchant and consumer businesses, as part of Square’s Seller and Cash App ecosystems. Square will appoint one Afterpay director as a member of the Square Board following closing.

Anand Kumar Bajaj, Founder & CEO, PayNearby

This is the next best step to take high end of tech to bottom of pyramid. It will help the Government to dispense the specific policy benefit to an identified user segment without any misuse of the funds or delay. The funds will not need to move around in banks but the beneficiary can directly go to end point to avail the intended benefit.

Beyond a code sending to mobile number of a user, I believe the upgrade can also scan an Aadhaar card at the dispensation counter and identify the user for the respective service. This is the true test of network that has been created at the last mile in India because at PayNearby our merchants will be able to identify the user for right benefit and deliver it in pointed / specific manner. Targeted, transparent and leakage free delivery to the end point is the intention of policy makers and we are happy that PayNearby will be able to enable this objective. The Central Bank Digital Currency movement has already started by India now. While the world is talking of Central Bank Digital Currency, India has already launched it today.

Mandar Agashe, Founder and MD, Sarvatra Technologies, “The new digital payment mode e-RUPI is a digital prepaid voucher shared with beneficiaries for a specific purpose through SMS or a QR code to their mobile number. It will give a new dimension to the digital transactions and as it can be redeemed without a card or internet banking access at the service provider. The best part of the new payment medium is it can be controlled. The issuer can ensure that the money is being spent for the allocated purpose and can track the redemption of the voucher. It is an excellent step towards forming a complete digital economy and yet another step in the right direction for financial inclusion. The introduction of e-RUPI will ensure end to end digital transactions without any physical issuance of prepaid cards or vouchers, leading to cost reduction, transparency and improved efficiency.

e-RUPI is a beneficial instrument for those who are not on digital platforms. It can yet get extended monetary support in digital form directly from the government in the form of a prepaid e-voucher powered by UPI. Besides, this mode makes UPI world’s most advanced product and will help India achieve its social and digital transparency goal.”

 NYMBUS®, a leading provider of banking technology solutions, today introduced an updated portfolio of niche digital banking concepts through Nymbus Labs. Each is ready and available to purchase, launch and grow by any size bank or credit union seeking to accelerate growth through new routes to market.

Nymbus Labs was formed to amplify the capabilities of traditional institutions and extend their reach to new niche customer segments. It brings together Nymbus’ world-class development, marketing and user-experience teams—integrating everything needed to build out and operate a full-scale digital bank positioned for success on day one.

Each of Labs’ pre-built niche concepts comes with a targeted customer affinity; a unique, compelling brand; data-driven business case; marketing strategy; full operational support; and playbook for continued growth.

“Nymbus has assembled one of the industry’s most creative teams to help financial institutions reframe their options for banking growth,” said Jeffery Kendall, Chairman and CEO of Nymbus. “From pre-built digital banking business models to partnering on an idea from scratch—Labs removes the burden of brand building and customer-acquisition strategy to quickly attract and grow new niche segments.”

The Nymbus Labs portfolio of now over 20 pre-built niches includes concepts such as:

Hitched: New couples need a way to collaborate on finances for the first time. Hitched helps modern committed partners spend and save wisely, while setting healthy financial habits at the beginning of their journey together.

Bluprint: Provides business resources that change the way that contractors manage money. Features like project-based checking and easy ways to pay subcontractors are built for speed and mobility.

Scurry: A bank for family savings, Scurry offers a flexible, social, and automated way to move money through the household, save for goals, and ensure their family member’s accounts stay secure.

GigMoney: As the fastest-growing economy in the world, gig workers are redefining what work from anywhere means. GigMoney provides money management that is just as flexible as today’s workforce.

The Nymbus Labs methodology and team is poised to support the launch and growth of these niche concepts, as well as development and growth for current customers like BankMD, ZYNLO Bank, FACILE, Billinero and Locality Bank IO.

“Launching a new bank that is setup to succeed can be a complicated effort that requires a unique way of looking at market data and product capability. Finding the right team with the same committed passion and focus on doing something significant was a first priority,” said Corey LeBlanc, COO and CTO of Locality Bank IO. “Nymbus Labs has been that perfect partner for us as we work to build real value with the launch of Locality Bank into our communities of South Florida.”