Sapphire Systems, a provider of world class enterprise software applications and services, announced the appointment of a new Chairman as the firm gears up for its next growth phase. It follows an agreement with investment partner Horizon Capital in January 2020, which forms part of the software provider’s strategy to build scale and pursue ambitious expansion plans, both organically and through M&A.
 
Trevor Rolls will assume the role of Chairman from 5th June 2020, bringing with him a wealth of experience from across the technology sector. A seasoned strategist with expertise in enterprise software, data science and cloud, Trevor has built and exited numerous businesses over the last 25 years.
 
Rolls currently chairs a number of IT services firms operating in the software optimisation, cyber security, data science and wired and wireless networking spaces. His remit spans supporting management teams in the development of growth strategies, board development, M&A activity and fundraising.  
 
“We are delighted to welcome Trevor’s extensive talents to our board,” comments Ian Caswell, CEO, Sapphire Systems. “As we focus on achieving substantial growth, both organically and via acquisition over the next few years, Trevor brings in-depth experience of both. His record of success working with a multitude of fast growing technology and professional services companies will support our ambitions substantially, instilling industry best practice and expanding our market share across an increased number of segments and geographies.”
 
“Having engaged with Ian and the Sapphire board through our mutual connections with Horizon Capital, it was abundantly clear that we had a great deal of synergy,” comments Trevor Rolls, Chairman, Sapphire Systems. “My experience of working with companies in a similar space, at a similar stage in their growth trajectory, meant that the role represented a very good fit. While the current market is undoubtedly turbulent, there are clear opportunities for those technology leaders with the right strategy, agility and ability to capitalise on new innovations. I’m very much looking forward to supporting Sapphire in building market value, expanding market share and delivering on its goals.”

iController is the first to integrate ‘On Demand Financing’ into its software. It is a development of KBC to pre-finance invoices in a flexible way. Innovative On Demand Financing enables a company to sell an outstanding invoice to an intermediary known as a ‘factor’, meaning the company has immediate access to working capital and does not have to wait until the customer pays the invoice. This is a first in Belgium; no similar system is available on the market. This new concept of On Demand Financing is part of a broader vision for AI-driven cash flow forecasting that iController will roll out later this year. 

Working capital is critically important to the proper functioning of a company. Now, within the context of the coronavirus crisis, it is becoming even more important and indeed essential for companies if they are to survive the crisis. iController, a Belgian software company specialising in credit management, has joined forces with KBC to be the first in Belgium to launch On Demand Financing, a system that allows companies for the first time to sell individual invoices with just a click of the mouse. With the development of On Demand Financing, iController is taking a first step towards its ultimate goal of cash flow forecasting by integrating AI risk analysis.

On Demand Financing in a nutshell
On Demand Financing (or factoring) is a way of flexibly pre-financing customer invoices. Pre-financing means that a company sells an outstanding invoice to an intermediary or 'factor', which in turn means the company immediately has money available to pay its suppliers and does not have to wait for its customer to pay.

In traditional factoring, companies enter into an agreement for all their invoices, but that is not always advantageous for companies because it also costs money. On the other hand, On Demand Financing allows you to sell individual invoices. Companies can decide for themselves which outstanding invoices they would like to have pre-financed and which ones they want to collect themselves. On Demand Financing is included in iController's credit management software suite and is easy to use: just click on the relevant invoice.

The idea of abandoning the traditional factoring process and developing On Demand Financing came from the core idea that drives iController and the company's broader future-oriented strategy. Its goal is to help companies make their credit management process more efficient and transparent so that outstanding invoices can be collected more quickly and more working capital is available to support the company's growth. That is what iController wants to achieve by combining cash flow forecasting with integrated AI risk analysis. 

iController’s vision for the future
Peter Janssens, CEO of iController, explains: “The future of credit management lies in intelligent cash flow forecasting. Through seamless collaboration between people and AI, incoming and outgoing amounts are optimally predicted and companies can deal with any shortfalls that might arise. This is what is made possible by On Demand Financing.”

Cash flow forecasting is currently based on statistics, which predict when a customer will pay and where the potential risks are. However, this method has limited possibilities; not all parameters can be taken into account. 

Using artificial intelligence in cash flow forecasting makes it possible to include a much wider range of factors in the calculation. Examples include the credit controller who keeps track of the invoice, the period when the invoice was drawn up and recurring patterns, such as a customer who always happens to pay after receiving a personal phone call from the credit controller. Since artificial intelligence is capable of learning, its analyses become more accurate over time and can take more factors into account.

“With On Demand Financing, we are setting the standard and clearing the first hurdle towards AI-driven cash flow forecasting. The next step is to optimise the AI risk analysis, which will be released later this year. Our aim is to help companies make better risk management decisions and achieve a better cash position,” says Peter Janssens.

Analysis completed by Wolters Kluwer Compliance Solutions shows that its Paycheck Protection Program (PPP) Supported by TSoftPlus™ financial technology solution has helped small businesses retain approximately one million American jobs. And that’s across almost 100 different industries. The data demonstrates how the Minnesota-based business, through its expert solutions, is having a major impact at a national level, aiding small businesses obtain critical funding during the Covid-19 pandemic.

Full-service restaurants lead the list of top business types that have obtained critical payroll funding during the COVID-19 crisis, facilitated through local lenders’ use of TSoftPlus technology. Physician offices and lawyer offices, electrical contractors, and commercial and institutional building construction businesses are among the other industries to have received Coronavirus Aid, Relief, and Economic Security (CARES) Act assistance.

Additional analysis based on PPP loans processed with the TSoftPlus solution, indicates that TSoftPlus-processed PPP loans have overwhelmingly been focused on supporting Main Street businesses, with 90 percent of that funding directed to organizations with 20 or fewer employees. The average number of employees assisted by local lenders who used TSoftPlus-originated loans is 12. 

“Our assistance has largely centered on helping local lenders provide Main Street businesses with the funding essential to maintain their teams and operations during these unprecedented times. To date, the PPP loans we’ve processed cover a wide swath of smaller organizations, with funding having helped employers ranging from self-employed soybean farmers and dentist offices to real estate agents and restaurants,” said Steven Meirink, Executive Vice President and General Manager for Compliance Solutions. “Local lenders truly embraced this unprecedented program as some 70 percent of the loans made in any particular state were made by lenders located in that same state.”

Steven D’Alfonso, Research Director with IDC Financial Insights, notes that beyond lenders’ use of TSoftPlus to facilitate PPP loan and loan forgiveness applications, the process may provide a trove of new insights into customer priorities and preferences, ultimately benefitting small businesses in communities across the country.

“After witnessing a demonstration of TSoftPlus functionality, it would appear that, thanks to the data generated by the PPP loan process, lenders will now be in a better position to truly understand their customers’ needs. Essentially, they will be able to enhance existing banking products or develop new offerings for customer benefit,” said D’Alfonso. “The close collaboration required between borrowers and lenders to meet PPP requirements may have an important side benefit in helping deepen and strengthen customer relationships, helping engender mutual trust for the long term.”

In a statement Wolters Kluwer also noted how it is now preparing to help local lenders and their small business client recipients of PPP funding facilitate online loan forgiveness applications given the need for well documented compliance with both the transaction and to support a lender’s existing compliance management system as the next phase of PPP unfolds. The company’s TSoftPlus™ PPP Forgiveness Module will facilitate and automate the application process for the forgiveness of loans to small businesses that received PPP emergency funding under the U.S. CARES Act and will be available to local lenders and PPP borrowers following finalization of requirements from the Small Business Administration and U.S. Treasury.

Wolters Kluwer Compliance Solutions is a provider of risk management and regulatory compliance solutions and services to U.S. banks and credit unions, insurers and securities firms. The business, which sits within Wolters Kluwer’s Governance, Risk & Compliance (GRC) division, helps these financial institutions efficiently manage compliance obligations tied to loan and deposit origination transactions and workflows, manage risk and other regulatory compliance obligations, and gain the insights needed to focus on better serving their customers and growing their business. 

Earlier this year we reported how the company has been expanding its Minnesotan HQ for its Compliance Solutions business and other businesses that sit within its GRC Division, growing staff numbers by 25% compared with 2017. Wolters Kluwer now has 717 staff working in Minnesota, nearly a 25 percent increase from 575 full time employees in 2017, a figure confirmed by the GRC Division’s Global Director of Corporate Communications.

Compliance Solutions is headed by Minneapolis-based Meirink who is responsible for overseeing the P&L, operations, and growth strategy for the business unit. Prior to joining Wolters Kluwer, Meirink was senior vice president and general manager for Assurant Mortgage Solutions, where he was responsible for driving the growth of new solutions and expanding Assurant’s business into emerging market areas.

He also held several senior level positions within Equifax, including vice president and general manager of the company’s United States Consumer Information Services – Mortgage Growth Initiatives portfolio. Prior to Equifax, Meirink held several leadership positions throughout the financial services industry including community banking, mortgage lending, insurance, and consumer credit. Meirink reports into New York-based CEO of the GRC division, Richard Flynn.

Paycheck Protection Program Supported by TSoftPlus is one of several solutions launched by Wolters Kluwer’s GRC division in response to the COVID-19 crisis. Compliance Solutions’ Expere Servicing and Loss Mitigation technology and warranted documents, in combination with its Consulting Services team, are positioned to assist servicers in helping address the challenges that Paycheck Protection Program post-forbearance workouts will bring. Business Entity Search for CARES Act solution, offered by Wolters Kluwer’s Lien Solutions business, conducts bulk/batch corporate identity searches to verify the business status of potential borrowers.

Wirecard, the global innovation leader for digital financial technology, and FC Bayern Munich Basketball are announcing their long-standing partnership, which is initially set to run until summer 2022. Wirecard will serve as a platinum partner of FC Bayern Munich Basketball during this time.

Wirecard and FC Bayern Basketball have been working closely together in the development of digital payment solutions and related additional services. The partners intend to develop groundbreaking projects aimed at giving fans of the German basketball champions, FC Bayern Munich Basketball, new and innovative fan experiences. In the future, fans can expect a new kind of customer experience thanks to innovative payment and value-added solutions. In its mission to drive forward the digitalisation of professional sports, Wirecard intends to support more teams going forward. Wirecard is kicking off this endeavor via its cooperation with FC Bayern Munich Basketball.

The ongoing cooperation between Wirecard and FC Bayern Basketball will be on show during the final tournament of the German Basketball League. The current season of the German Basketball League will end in Munich in June with a 10-team tournament. Wirecard will support five-time German champion FC Bayern Basketball in its efforts to win another championship title.

“We are delighted to have Wirecard's support in bringing the current German Basketball League season, which has been held under extraordinary circumstances this year, to a close. We are confident that we will carry out many exciting projects together over the next few years,” said Adrian Sarmiento, Chief Business Officer of FC Bayern Basketball.

“It is a pleasure for us to support FC Bayern Munich Basketball in the final tournament. We wish the team all the best and great success in achieving its goals, along with many more exciting games for fans,” added Marco Raab, EVP Global Marketing at Wirecard. “We are convinced that, through this cooperation, we will successfully drive forward numerous digital initiatives with high added-value for fans and the club, and as a result will be ideally positioned to further serve the sports sector in years to come. With our innovative solutions we want to offer fans an enhanced payment journey and an optimised customer experience.”

“The cooperation between Wirecard and FC Bayern Munich Basketball includes a wide range of innovation projects developed specifically for the professional sports industry. The core objective is to enhance the fan experience while generating new sales revenues and creating added-value for sponsors and fans,” commented Christian Reindl, EVP Sales Retail at Wirecard.

DocuSign, Inc. (NASDAQ: DOCU), which offers the world's #1 eSignature solution as part of the DocuSign Agreement Cloud, today announced results for its fiscal quarter ended April 30, 2020.

"Our strong first quarter results reflect our ability to help organizations accelerate their digital transformation as they adapt to the changing business environment, magnified by COVID-19. Many are taking their first steps with us, while others are expanding their initiatives," said Dan Springer, DocuSign's CEO. "Led by eSignature, our Agreement Cloud offerings are not only helping customers carry on with business in this time of crisis, but will continue to deliver value as the world emerges from it."

First Quarter Financial Highlights

Total revenue was $297.0 million, an increase of 39% year-over-year. Subscription revenue was $280.9 million, an increase of 39% year-over-year. Professional services and other revenue was $16.1 million, an increase of 29% year-over-year.

Billings were $342.1 million, an increase of 59% year-over-year.

GAAP gross margin was 75%, compared to 76% in the same period last year. Non-GAAP gross margin was 79% in both comparative periods.

GAAP net loss per basic and diluted share was $0.26 on 183 million shares outstanding compared to $0.27 on 172 million shares outstanding in the same period last year.

Non-GAAP net income per diluted share was $0.12 on 197 million shares outstanding compared to $0.07 on 189 million shares outstanding in the same period last year.

Net cash provided by operating activities was $59.1 million compared to $45.7 million in the same period last year.

Free cash flow was $32.8 million compared to $30.4 million in the same period last year.

Cash, cash equivalents, restricted cash and investments were $898.3 million at the end of the quarter.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures and Other Key Metrics."

Operational and Other Financial Highlights

DocuSign Agreement Cloud: 2020 Release 1. As the latest in DocuSign's regular cadence of product updates, this year's first release focused on enhancements and features requested primarily by customers. This included the Agreement Cloud Editor, which helps create agreement templates using Salesforce data fields; DocuSign Click Enhancements, which offer greater clickwrap customization and support; ID Evidence, which enables the capture of ID document information for companies in regulated industries; and the expansion of DocuSign Payments to all countries and currencies supported by our payment gateway partners: Stripe, Braintree, Authorize.net, CyberSource and Zuora.

Closing of Seal Software acquisition. On May 1, DocuSign completed its acquisition of Seal Software, one of the leading contract analytics and artificial intelligence ("AI") technology providers. DocuSign will now work to bring the power of Seal's AI engine first to DocuSign CLM and over time to the entire product portfolio as part of the drive to make the Agreement Cloud smart.

Outlook

The company currently expects the following guidance:

The company has not reconciled its expectations of non-GAAP financial measures to the corresponding GAAP measures because stock-based compensation expense cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Webcast Conference Call Information

The company will host a conference call on June 4, 2020 at 1:30 p.m. PT (4:30 p.m. ET) to discuss its financial results. A live webcast of the event will be available on the DocuSign Investor Relations website at investor.docusign.com. A live dial-in will be available domestically at 877-407-0784 or internationally at 201-689-8560. A replay will be available domestically at 844-512-2921 or internationally at 412-317-6671 until midnight (ET) June 18, 2020 using the passcode 13703586.

Financial mentoring and money management app Lumio chooses Open Finance platform Moneyhub to provide their users with a true picture of their finances by having access to all their financial information in one place. 

The Lumio app automatically finds clever ways for users to grow their money. Users can connect accounts in seconds and instantly start tracking, planning and growing their full financial life, without changing their lifestyle.  Moneyhub’s Open Finance APIs connect Lumio users to thousands of financial institutions globally, from bank accounts, mortgages, savings and loans, to investments, pensions and credit cards. This gives Lumio users an overview of not only their banking data but also their entire financial universe. Moneyhub’s spending analysis and data categorisation engine unlocks unique and holistic insights into a user’s financial habits, behaviours and aspirations, which enables Lumio to make suggestions on savings and investments based on the individual's needs.  

By using Moneyhub’s full suite of data APIs, the only comprehensive Open Finance data source in the market, Open Banking and P2D2 compliance are assured. This enables Lumio to access bank data and facilitate account-to-account payments in a compliant way, without the hurdles of getting its own AISP and PISP licences. Choosing to use Moneyhub’s APIs rather than building and maintaining thousands of financial data connections themselves allowed Lumio to reduce development costs and launch the app to market quicker.  

Charlie Richardson, Founder of Lumio comments: “The breadth of Moneyhub’s comprehensive financial data source and expertise made them the obvious choice. We didn’t just want to offer our users access to their banking data but also provide a holistic view of their financial situation so they could make informed decisions and secure better outcomes by using our app. With Moneyhub we are able to offer our users this and more! Working with the Moneyhub team has been a truly collaborative experience. Tapping into their expertise and working directly with their development team enabled us to build out the proposition which suited our specific needs.” 

Dan Scholey, COO at Moneyhub comments: “Improving financial literacy and wellbeing is a goal close to our hearts at Moneyhub and we welcomed the opportunity to work with a forward-thinking team like Lumio. Open Finance is here today. It empowers users of apps like Lumio to see their financial past, present and future, while enabling businesses to interact with these insights, supporting customers with information and products that suit their unique financial requirements. This is an important starting point to making better financial decisions that don’t just focus on the day-to-day, but on the long-term too. Lumio makes these decisions easier for its users and will be a great companion on their financial journey.”

Financial services organizations of all sizes must remain one step ahead of financial crime. To enable this NICE Actimize (Nasdaq: NICE)  a leader in Autonomous Financial Crime Management, announces that it has entered a definitive agreement to acquire Guardian Analytics, a leading AI cloud-based financial crime risk management solution provider. Financial services organizations of all sizes rely on Guardian Analytics’ sophisticated real-time behavioral analytics and machine learning solutions. Powered by the cloud, Guardian Analytics simplifies deployments and ongoing operations, optimizing operational resource efficiency. The unique combination of NICE Actimize and Guardian Analytics’ fraud and anti-money laundering capabilities will empower firms of all sizes to accelerate the adoption of the industry’s most innovative solutions, to best protect their assets and customers.

The combination delivers:

• The most complete cloud platform: Best-in-class AML and fraud capabilities in the cloud for complete financial crime and compliance coverage.
• The most advanced analytics and machine learning capabilities: Dynamically adapts to new attacks and changes in customer behavior with real-time behavior-based analytics and machine learning, enabling higher detection accuracy, lower false positives, and 360 degree view to maximize operational efficiency.
• Quick cloud setup: Fast and easy deployment, significantly reducing time and cost with out of the box AML and fraud models and data connectors.
• This combination will extend NICE Actimize's offering across the entire financial services sector, enabling  firms of all sizes, from small and mid-sized banks to global financial institutions, to benefit from NICE Actimize’s world-class financial crime and compliance solutions.

“Today, NICE Actimize is taking a significant step forward in advancing the future of managing financial crime risk,” said Craig Costigan, NICE Actimize CEO.  “With criminals seeking to exploit the current environment, we need to make sure financial institutions and consumers are protected in a way that’s cost-effective and intuitive. The acquisition of Guardian Analytics brings together the unique combination of proven expertise, best-in-class innovation, and the power of the cloud, presenting a major opportunity for accelerated growth. I am excited to embark on this journey in advancing the industry’s fight against financial crime.” 

“We are excited to join forces with NICE Actimize and look forward to the opportunities that the combination of our expertise and capabilities will bring to market,” said Eric Tran-Le, Guardian Analytics Co-CEO.  “Financial services organizations need to stay ahead of today’s threats and our unique offerings enable firms to rely on a single provider to accelerate their financial crime risk management strategies, especially given the dynamic nature of today’s market.”

The acquisition is expected to close in the latter part of Q4 2020.

• 40% of businesses are currently facing over £10,000 in unpaid invoices (1) 

• Solvency a concern for small businesses as 1 in 4 worry they won’t survive into 2021

• UK faces a trade credit crunch as customers seek longer payment terms and suppliers look to cut them, while the sector deals with backlog of unpaid invoices

• This comes as iwoca launch ‘iwocaPay’ to give confidence back to businesses grappling with the fall out of the pandemic 

The coronavirus pandemic is creating a trade credit crunch as many businesses face considerable unpaid invoices leading as many as 1 in 4 to doubt they will survive into 2021, according to a new report released by iwoca.

The research, published in Levelling the ‘paying’ field, by one of Europe’s largest small business lenders, explores how payment terms were managed pre and post-pandemic and sets out a series of recommendations which policymakers and small businesses should prioritise in the months ahead.

As non-essential shops open next week, the mounting pressures on small businesses are leading as many as a third of owners (who offered payment terms) to consider reducing or not offering trade credit in the future as they try to minimize their exposure to unpaid invoices (2). A fall in access to trade credit, which according to the SME Finance Monitor over a third (37%) of businesses use, could have significant consequences for small businesses who rely on it and the wider sector (3). 

The findings come as iwoca also launches a new product that will help businesses navigate the crisis - iwocaPay. The tool can take the risk out of payment terms and give confidence back to businesses offering trade credit. iwocaPay gives customers a choice over when they make repayments, allowing them to choose payment terms of up to 90 days. At the same time, suppliers will be paid immediately through iwoca. Addressing the needs of both business customers and suppliers will help improve cash flow and give greater confidence to small businesses as they return to work in the coming weeks and months. 

The main elements creating the trade credit crunch include: 

• The proportion of SME owners that owe large payments to their suppliers has nearly doubled. iwoca small business customers reported that their amounts owed to suppliers has risen since the coronavirus hit. 6.3% reported owing between £20,000 - £50,000 - almost double the proportion from last year (3.7%). A further fifth of small businesses in this survey reported that they currently owe their suppliers between £1000- £4999 - up from 13.8% at the same point in 2019. 
• At the same time businesses are asking for longer payment terms from suppliers. With the coronavirus taking its toll on sales, small businesses appear to be trying to hold off on making payments to protect their liquidity. iwoca’s research found that in the past 30 days, two fifths of respondents (41%) asked their suppliers to extend payment terms to give them more time to complete a payment. By comparison, in the year leading up to the outbreak of coronavirus, only one quarter (27%) had requested longer payment terms.
• But naturally as suppliers haven’t been paid and are being owed almost twice the amount already, they are demanding payment up front or shorter payment terms. As a result of the challenges caused by the pandemic, one third of small business suppliers (34%) said they are more likely to either ask for immediate payment or shorten their payment terms in future. This could result in a trade credit crunch, as suppliers demand earlier payments from small businesses who increasingly require longer payment terms. 

Christoph Rieche, co-founder and CEO of iwoca said: “What’s emerging is a concerning game of ‘tug of war’ between small businesses as they look to survive and plan for the future. Buyers can’t pay their invoices because they don’t have the revenues and sellers are being asked to provide longer payment terms to ease the strain whilst already sitting on a growing backlog of unpaid invoices. 

“Coronavirus can and should help trigger a step-change for small businesses to become more efficient, productive and resilient. We believe the first and most obvious change is to make payment terms fairer between suppliers and customers.”

Mike Luxford, founder of MLCS, a cloud-based internet phone system provider (VoIP) added: “The first thing I thought when this all started [the pandemic] was, we won’t get paid. When you're a small business, that’s when the issues start. And it’s a knock on effect - if I’m not getting paid, it clogs up my credit accounts which means I can’t take on more contracts. I try to have some savings around so it’s not literally hand-to-mouth because if a silly little payment trips you up, you lose all your credibility. For that reason, if someone wants extended terms or huge amounts of credit for no reason, I tend to walk away. Otherwise it becomes a daft juggling game.”

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1. 40% of businesses facing £10,000 in unpaid invoices refers to B2B only

2. A total of 537 small businesses were surveyed between 27/4/20 - 14/5/20

3. SME Finance Monitor Q4 2019 - March 2020

Nordic challenger bank Lunar has launched an account and card designed to help teenagers better manage their money.

The app, specifically for 15 to 17 year olds, offers a basic account and card, spend overview, saving goals, budget tools, instant notifications and free transfers and payments.

By targeting teens, Lunar is hoping to secure a pipeline of lucrative adult customers, building up its base of 150,000 users throughout the Nordics.

Peter Smith, CEO, Lunar, says: "Learning to manage your own money as +15 is is a core skill that will benefit you for the rest of your life. Our aim is to show that responsible money management can be fun and inspirational, and when our younger users turn 18, we are here to guide them further with our full product palette."