Synopsys, Inc. and Finastra today announced a partnership establishing an application security validation program for FusionFabric.cloud, Finastra's open platform for developing, deploying and consuming financial applications. The program, powered by the Synopsys Software Integrity Group, ensures that all applications offered via the FusionFabric.cloud FusionStore have passed thorough vigorous security testing assessments.

"By partnering with Synopsys on our application validation program, we're creating a win-win solution for financial institutions and Fintech developers," said Nir Valtman, head of product and data security at Finastra. "Financial institutions can streamline the onboarding process for new applications and bring innovation to market faster, and Fintech providers get third-party validation from an industry-leading application security company."

FusionFabric.cloud is a scalable, open, and collaborative development platform that enables Fintech providers to create and bring applications to market faster. Synopsys will help validate the security posture of all applications onboarded to FusionFabric.cloud, using solutions that include static application security testing, software composition analysis, penetration testing, and code reviews.

"In today's dynamic threat landscape, security is a requisite component of innovation, especially in the Fintech space," said Steve McDonald, co-general manager of the Synopsys Software Integrity Group. "The application validation program leverages Synopsys' security testing technology and expertise to ensure that applications published on the FusionFabric.cloud platform are designed, developed, and deployed with the highest standards for security. The net result is that Fintech providers can focus on delivering innovative solutions rapidly, and their financial services customers can rely on them with confidence."

Early adopters of the platform, who have already completed the application validation program, include Allied Payment Network and Monotto.

"The FusionFabric.cloud platform has provided us with inroads to Finastra's client base, and has driven demand for the RoboSave app, our automated savings tool," said Christian Ruppe, CEO and Co-Founder, Monotto. "By going through Synopsys' rigorous validation process before being made available on the FusionStore, banks have peace of mind that RoboSave meets the highest standards for security."

Temenos (SIX: TEMN), the banking software company, today announces that Codat has joined Temenos MarketPlace. Codat provides a universal API which connects to the most widely used business accounting platforms. Through Temenos MarketPlace, Temenos’ platform for connecting banks with the best in complementary fintech solutions, the company will provide pre-integrated access between banks and their Small and Medium-Sized Enterprise (SME) clients’ accounting packages.

This collaboration will ultimately benefit both banks and their SME clients by allowing quick and accurate sharing of data between business accounting and banking systems.  While the SME market has traditionally been underserved by banks, business owners are increasingly expecting similar levels of service for their business banking to those they experience from retail banking experiences. Temenos’s continued investment in product innovation and in collaborating with Temenos MarketPlace fintech providers such as Codat empowers Temenos’ banking customers to secure customer satisfaction by proactively supporting SME's at every stage of their growth.

Paul Roberts, Director – MarketPlace and Community Development, Temenos, said: “I am very pleased to welcome Codat to the Temenos Community. Temenos MarketPlace continues to provide the most innovative and diverse fintech ecosystem, with solutions spanning digital engagement, risk & compliance, customer servicing and payments among others. Our business banking clients will clearly benefit from this out-of-the box integration with market-leading accounting packages. This brings immediate efficiencies for SME clients, but more importantly provides the data visibility that banks need to be more proactive in identifying business needs and delivering services to help support and drive their clients’ business growth.”

Peter Lord, CEO at Codat commented: “The financial and business data ecosystem is growing into a huge network of data sources with financial institutions and software providers becoming not just consumers, but sources of data themselves, as the need for integrations grows. Integration with accounting platforms is seen as an essential feature of commercial banking products by SMEs. By offering Codat’s capability on Temenos MarketPlace, Temenos is helping banks to be better positioned to both retain and attract new customers.”

Temenos will leverage Codat’s integration capabilities to enhance its Business Banking offering. Codat’s API opens the door for Temenos and its customers to access data from SME accounting packages so that banks have a combined view of business and banking data. By bringing all that data together, banks can quickly and accurately provide information, advice and relevant banking services for their SME customers.

Steve Scott, Senior Product Manager – Business and Corporate Banking at Temenos added: “Codat is a great complement to our Business Banking solution. Our research has shown that SME’s expect their banks to understand them better and provide timely and specific advice. By integrating with their customers accounting software, our clients will deepen their relationships with SME’s through greater insight into their business activities.”

eNett International, a leading provider of integrated B2B payment solutions for the travel industry, has entered into a definitive agreement to be acquired by WEX Inc. (NYSE: WEX), a leading financial technology service provider.  The transaction also includes the acquisition of Optal, a shareholder of eNett and the primary issuer of eNett payments.

Travelport has held a majority ownership stake in eNett as part of a joint venture with Optal since 2009. In May 2019, Travelport was acquired by affiliates of Siris Capital Group, LLC (“Siris”) and Elliott Management Corporation’s private equity affiliate, Evergreen Coast Capital Corp. (“Evergreen”).

“eNett is thrilled to be entering into this new chapter of offering innovative payments solutions for travel companies globally as part of WEX,” said Anthony Hynes, Managing Director and CEO of eNett. “Customers will benefit from our shared commitment to the delivery of exceptional levels of service, a more comprehensive product suite, and expanded global reach.”

“We couldn’t be more excited to welcome eNett and Optal to WEX,” said Melissa Smith, WEX CEO and Chair.  “We have a deep respect for these companies.  The combination of our unique and complementary product suite, talented employees, and international expertise creates a powerhouse in the global travel industry.”

“Siris and our partners at Evergreen recognize the strong commitment by Anthony and the eNett management team to execute on their strategic vision to establish eNett as a leader in B2B payment solutions for the global travel industry,” said Frank Baker, a Co-Founder and Managing Partner of Siris. “We are confident that this transaction will help eNett and Optal accelerate growth and create long-term value for all stakeholders, including customers, partners, and employees.”

Pursuant to the terms of the agreement, WEX will acquire eNett and Optal for a total consideration of approximately US $1.7 billion, comprising approximately US $1.275 billion in cash and approximately two million shares of WEX common stock.  The WEX common stock issued in connection with the transaction is valued at approximately US $425 million, based on WEX’s volume-weighted average price over the past 30 trading days prior to signing.

The transaction is subject to regulatory approval and other customary closing conditions and is expected to be completed mid-year 2020.  

Credit Suisse Securities (USA) LLC and LionTree Advisors are serving as financial advisors, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel, to eNett.

Pine Labs, one of Asia’s leading merchant commerce platforms, announced an investment by Mastercard that underscores confidence in India’s growing economy.

The investment is part of a partnership to continue the rapid growth of convenient electronic payment options for consumers across the region. The collaboration will deliver an extensive range of card and real-time payments-based instalment financing at checkout – in-store and online.

Together, the companies will offer a suite of value-added services, including Pine Labs’ end-to-end stored value solutions which will replace the paper ones now widely used by companies, retailers and people in South Asia and many other markets.

Terms of the deal were not disclosed.

From its beginnings as an offline retail payment provider a decade ago, Pine Labs has evolved into offering payment acceptance technology, stored value products, in-store consumer credit and other merchant solutions in India, Southeast Asia and the Middle East. Today, it processes payments of US$30 billion per year and serves some 140,000 merchants across about 450,000 network points.

The fast-growing and digitally connected middle class in South Asia and elsewhere is seeking “buy now, pay later” options for a larger range of personal goods and services. This offers enormous potential for merchants, brand owners and financial institutions to drive innovations that maximize flexibility and choice for consumers. Pine Labs works closely with a range of financial institutions and partners who are responsible for the design and delivery of the instalment financing service to merchants and consumers.

“This relationship is a great validation of the top-quality products that Pine Labs delivers to merchants,” said Lokvir Kapoor, founder and chairman of Pine Labs. “Together, we have a unique opportunity to use Mastercard’s global presence and technology infrastructure to enhance our growth and enable us to meet the growing needs of customers in India and beyond.”

A study published in May 2019 by PwC and the Associated Chambers of Commerce of India showed that the market opportunity in India for instalment-based payments on consumer goods will hit US$16.9 billion in 2021 and is expected to jump to US$52.5 billion in 2025.

“Smart devices are transforming how people shop. With this partnership, we’re continuing to build innovative solutions and provide people with new ways to pay right at their fingertips,” said Ari Sarker, co-president for Asia Pacific at Mastercard. “By joining forces with Pine Labs, we are reinforcing our strategy to deliver choice to consumers and to be the partner of choice for our customers in South Asia and around the world.”

LexisNexis® Risk Solutions, the global analytics provider, is today reacting to the European Commission’s announcement that it is preparing to clamp down on those countries who have failed to implement the 5^th Anti-Money Laundering Directive (5MLD), by issuing a guide to help firms comply with new rules.

LexisNexis Risk Solutions recognises that many firms have struggled to implement the new requirements of 5MLDwhich came into force on 10^th January 2020. Due to both time pressures, and the lack of understanding around the new rules and what they entail. To help compliance teams safeguard their business, and avoid hefty fines from the regulator for non-compliance, LexisNexis Risk Solutions’ guide outlines the changes introduced by 5MLD and how they can ensure they meet the required standards.

Prompted by events including the Panama Papers leaks, increased money laundering risks of cryptocurrencies and significant changes to the nature and frequency of terrorist attacks, the EU is cracking down on money laundering and terrorist financing with 5MLD. 

In light of widespread non-compliance, the European Commission is currently planning to launch infringement procedures next month to ensure that all countries and companies are implementing and complying with the new rules. Therefore, LexisNexis Risk Solutions guide outlines key areas of the Directive that businesses must account for in order to comply with new rules:

• Obliged entities: 5MLD has extended the scope of sectors classed as ‘obliged entities’ to include virtual assets such as cryptocurrencies, virtual asset service providers such as digital wallets, and high value art traders. These newly regulated sectors will need to implement full AML and counter-terrorist financing controls, to meet their new obligations.
• Politically Exposed Persons (PEPs): Member states will be required to maintain an up-to-date list of prominent functions that qualify as politically exposed persons in their respective countries. Key to maintaining compliance will be ensuring that the lists used for screening contain the holders of these functions for each state and are accurate, complete, up to date, and conform to Financial Action Task Force guidelines. Firms will also potentially face changes from currently used PEP definitions.
• Beneficial owners: Member states will be required to maintain registers of beneficial owners of corporate and other legal entities. Ownership information will need to be made public to those with ‘legitimate interest’ and must be accurate and verifiable.
• Customer due diligence: Where possible, 5MLD mandates that firms should be using electronic verification in their due diligence processes.
• Enhanced due diligence: To safeguard transactions that involve high risk countries with weak anti-money laundering controls, 5MLD mandates a common interpretation of enhanced due diligence measures which all obliged entities must follow.
• Prepaid cards: Card holders will need to be identified, and customer due diligence conducted for any prepaid card that has a value of €150 (€50 if the card is purchased remotely), lower than the previous value of €250.
• Enhanced powers for FIUs: Financial Intelligence Units will have the authority to obtain a firm’s payment transaction registers and electronic data, even when a Suspicious Activity Report has not been filed.

Michael Harris, Director, Financial Crime Compliance and Reputational Risk at LexisNexis® Risk Solutions says:

“Underground financial crime networks are one of the most insidious threats we face today. With such a broad financial landscape, criminals have more channels than ever to exploit and abuse, resulting in greater risks to society. 5MLD seeks to mitigate some of these risks and bring together firms in all EU jurisdictions to work towards a common goal of reducing financial crime - and it’s clear that the EU is committed to reaching this goal. 

Until now, digital currencies have been unchartered waters for regulators. Greater controls are welcome, and organisations need to take all necessary precautions to become compliant ahead of January. Failure to comply will have wide-reaching ramifications, both for organisations and society, so firms must leave no stone unturned when it comes to meeting the obligations of 5MLD. We also fully expect that further regulatory updates will quickly follow - we’re not done yet.”

SoFi, the digital personal finance company, and Mastercard today announced a multifaceted partnership to offer a suite of products and in-person experiences to its nearly one million (and growing) SoFi members.

The partnership will initially focus on the SoFi Money™ debit card, for which Mastercard will now be the exclusive card network. The card is one way to spend with the SoFi Money cash management account – unveiled last year – which offers no account fees, high-yielding interest, ATM fee reimbursements, mobile check deposit, P2P, and other digital tools. Under the new debit program, added member benefits will include cashback rewards, complimentary cell phone insurance, discounted airport concierge services, and much more.

“Our mission at SoFi is to help our members achieve financial independence to realize their ambitions. In order to do so, we must build products and services that help our members Get Their Money Right,” said Anthony Noto, CEO of SoFi. “It is imperative that our partners are leaders in technological innovation, security, and enhanced benefits, and Mastercard is an industry leader across all of those areas.”

With Mastercard, SoFi will leverage the payments network to develop new products, benefits, and experiences for its members. As part of the new partnership, Mastercard will also be the exclusive card network for SoFi’s upcoming credit card product. Members holding certain SoFi and Mastercard products will be able to take advantage of an enriched fan experience at SoFi Stadium, opening in Los Angeles later this year.

“We look forward to working with SoFi to offer their members innovative new products and benefits,” said Craig Vosburg, president, North America, Mastercard. “We recognize the importance of SoFi’s mission to enable their members to live better financial lives and are pleased they have selected Mastercard as their partner in doing so.”

MUFG Union Bank N.A. today announced that receipt of real-time payments is available for its corporate, retail, and small business clients via the RTP® network, operated by The Clearing House. The RTP network provides instantaneous receipt of payments, which increases payment certainty and funds availability, with funds immediately available for use. Real-time payments enable MUFG Union Bank clients to improve cash flow, manage working capital, and streamline processes.

“Real-time payments offer our clients the payment processing speed to meet their business needs in a rapidly changing digital commerce environment,” said Ranjana Clark, Head of Global Transaction Banking and Transaction Banking Americas, and Bay Area President. “MUFG Union Bank is committed to supporting our clients' movement toward real-time payments in the United States to enhance their experience.

The RTP network is the first new core payments infrastructure built in the U.S. in more than 40 years and gives the banking industry a modern platform for domestic payments, complete with rich data capabilities and immediate payment confirmation. The system enables instantaneous settlement and availability, so those funds can be used or withdrawn as cash within seconds. With receipt of real-time payments, businesses will experience improved straight-through processing, automated reconciliation, fraud and risk reduction, rich data reporting and analytics capabilities, partnership integration, and reduced operational costs.

“In addition to accelerating the speed and certainty of the transaction, real-time payments provide a standardized message format delivering extensive information throughout the full payment lifecycle. It is a completely new way of thinking about payments,” said Managing Director Ray Fattell, Head of Product, Innovation, and Risk Management, Transaction Banking Americas. “We are committed to providing innovative product solutions, utilizing the latest technology, so that CFOs and treasury managers can optimize their business processes to achieve their objectives.

“MUFG Union Bank’s customers can enjoy the benefits of immediate funds availability now that they can receive real-time payments over the RTP network,” says Jim Colassano, Senior Vice President of RTP Product Strategy and Development, The Clearing House. “We are very excited that MUFG Union Bank has joined the real-time payments revolution.”