Numerix, a global leader in capital markets risk management technology, is pleased to announce the acquisition of PolyPaths, a renowned provider of analytics and risk management solutions for financial institutions.

PolyPaths brings a wealth of expertise in structured finance and fixed-income products, complementing Numerix's existing capabilities and further extending its analytics asset class coverage, confirming Numerix’s position as a leading provider of pricing and risk management solutions. PolyPaths has an established client base comprised of the industry's most respected names. PolyPaths’ asset class strengths and product capabilities align seamlessly with Numerix's suite of Front-to-Risk solutions. This acquisition enhances Numerix's leadership in providing best-in-class analytics, solidifying its commitment to delivering comprehensive and sophisticated solutions that meet the evolving needs of financial institutions worldwide.

One of the key advantages of this acquisition is the expansion of Numerix's Asset Liability Management (ALM) capability, which extends Numerix's reach beyond the trading book to the banking book. This new sector of growth presents exciting opportunities for Numerix to serve a broader range of clients and deliver even greater value to the market.

Manny Conti, CEO of Numerix, expressed his excitement about the acquisition, stating, "The acquisition of PolyPaths marks a pivotal milestone for Numerix as it expands our market expertise in structured finance and fixed income. By combining the strengths of Numerix and PolyPaths, we are able to deliver cutting-edge Front-to-Risk analytic solutions that address the evolving needs of our clients. The cultural alignment and shared DNA between Numerix and PolyPaths make this a natural fit, and we look forward to the opportunities that lie ahead."

"We are excited to join the Numerix family and to embark on harnessing our collective strengths in delivering innovative products and an unparalleled customer experience," said Kelli Sayres, Senior Managing Director of PolyPaths. "Numerix’s mission of creating value for its customers aligns perfectly with PolyPaths' dedication and commitment to empower our customers with the analytical tools they need to thrive in a changing financial landscape," added Gene Park, Managing Director of PolyPaths.

Scott Niehaus, Director at Genstar Capital, said, “We are delighted to partner with PolyPaths, which we view as a highly complementary and strategic company to Numerix. This represents Numerix’s second acquisition this year and reaffirms Genstar’s commitment to growing Numerix as a leading platform in the financial technology ecosystem.”

Jefferies LLC served as financial advisor and Willkie Farr & Gallagher LLP served as legal counsel to Numerix. RBC Capital Markets served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to PolyPaths. Terms of the transaction are not disclosed.

Payoneer, the financial technology company empowering the world’s small and medium-sized businesses (SMBs) to transact, do business, and grow globally, today announced the asset acquisition of Israel-based Spott, a real-time data platform that uses AI to accurately surface, assess, and quantify data for more informed and faster business decision-making. Spott’s technology will enable Payoneer to better understand and serve customers, which supports our mission to make it easier for SMBs to operate and grow their business around the world.

Harnessing Spott’s capabilities, Payoneer will analyze large sets of data to apply advanced AI models and make predictions and decisions about its service offerings for a global SMB customer base. The first application of the technology will be on the Payoneer working capital products to enhance underwriting capabilities.

“Today’s announcement is part of Payoneer’s commitment to investing in AI and data to provide unique and seamless experiences for our customers,” said Assaf Ronen, Chief Platform Officer at Payoneer. “We look forward to seeing the impact that these capabilities will have on Payoneer customers. Spott has built a strong solution, and as part of Payoneer, this innovative technology will be available to SMBs in nearly 200 countries and territories.”

“This is another exciting step on the journey for us. We believe in the impact our technology can have on Payoneer’s global customers and today’s announcement means the solution can help more businesses around the world,” said Amit Batzir, Co-founder and CEO at Spott. “Payoneer was a natural fit for the vision we have for our technology, and we look forward to working with the team and building for the future.”

As part of the transaction, Spott’s co-founders, CEO Amit Batzir and CTO Roma Bronstein will join Payoneer’s Technology team, also based in Israel.

Credit card and financial technology company Petal announced today that it has closed a committed $200 million debt facility from Victory Park Capital (“VPC”), a global alternative investment firm specializing in private credit.

Petal has also agreed to a multi-year extension of its existing term loan facilities and closed a new term loan facility for up to $20 million of incremental commitments with Trinity Capital Inc., a leading provider of diversified financial solutions growth-stage companies. In addition, Petal has raised more than $20 million in new equity financing from its existing investors, building on the $35 million in funding Petal announced in May.

These new sources of capital provide Petal with substantial fuel to expand the Petal credit card program, which provides access to high-quality Visa® credit cards (issued by WebBank) to consumers who are new-to-credit, without requiring established credit scores to qualify. To date, nearly 400,000 consumers have been approved for Petal credit cards, including more than 100,000 new cards approved in 2022.

“It will soon be possible for any U.S. consumer to use their banking history to qualify for new and better financial services,” said Jason Rosen, Petal’s CEO and Co-Founder. “That’s great for consumers, and an opportunity for Petal to make credit accessible to millions of people who have been overlooked and underserved for too long. We’re thankful to Victory Park Capital, Trinity and our existing investors, whose support will be crucial to our growth in this next chapter.”

“VPC is a strong supporter of Petal’s mission to make responsible, modern financial services available to everyone,” said Jason Brown, Partner at Victory Park Capital. “We look forward to partnering with the Petal team as they work to expand the credit card program and serve even more underbanked consumers.”

Petal pioneered access to credit cards that don’t require a credit score, via a transformative approach to assessing creditworthiness called cash flow underwriting. This approach enables individuals to use their banking history to qualify for credit and establish a credit history, making credit more accessible to millions of U.S. consumers without credit histories, or whose traditional credit scores provide a limited view into their financial status and creditworthiness.

This approach matters more in the current economic climate, when Americans applying for credit cards are increasingly likely to be turned down by traditional bank lenders. The Federal Reserve’s Center for Microeconomic Data released data last month showing that the overall rejection rate for credit applicants is at the highest level since 2018 – and is particularly pronounced among those with credit scores below 680.

Petal’s expansion also coincides with the upcoming Consumer Financial Protection Bureau (“CFPB”) rulemaking on Dodd-Frank Section 1033, which promises to help consumers access and share cash flow data for use in credit underwriting. Last week, the CFPB published a new analysis suggesting that cash flow data may help more consumers qualify for credit, and “help lenders better identify borrowers with low likelihood of serious delinquency, even if these borrowers’ credit scores may have otherwise prevented them from receiving credit.”

This data is used to evaluate consumers without representative credit scores. A majority of consumers approved for Petal credit cards since 2018 had either thin or no credit history when they were first approved. And more than 40% of new members approved for a Petal card in the past two years were first denied credit by a major bank.

With the addition of this new funding, Petal has raised more than $300 million in equity capital and more than $680 million in debt financing.

Knot, the platform that enables card issuers to automatically switch saved payment methods at the request of their users, announced today a $10 million Series A raise led by Nava Ventures, with participation from Amex Ventures, Plaid, and 20+ world-leading CEOs and founders. The funding will be used to scale Knot’s services and accelerate the expansion of its merchant support.

“Securing this Series A funding signifies the immense trust our investors have in Knot’s potential to revolutionize the way card issuers manage their customers’ payment methods,” said Rory O’Reilly, CEO of Knot. “We’re grateful for the chance to further our mission of building a financially interconnected future, and we’re excited about the new opportunities this funding opens up for our team and our customers.”

Since launching, Knot has been a go-to solution for card issuers looking to increase user spend and reduce churn. Knot’s API offers card issuers the ability to instantly update card-on-file information at almost any merchant with just a few lines of code, meaning an easier onboarding experience for consumers, and more revenue and retention for the bank.

“We see the potential of Knot’s technology to improve the customer experience in updating card credentials on file, while also enabling uninterrupted payments for merchants,” said Matt Sueoka, SVP and Global Head of Amex Ventures. “We’re excited to support Knot as they scale their current operations and build out new products and services.”

With this funding, Knot plans to expand its merchant support even further, aiming to ultimately encompass virtually all online merchants. Knot will also use this funding to scale additional products such as the Knot Subscription Canceller and Account Creator, to help financial institutions seamlessly integrate into their customer’s digital lives. This commitment to broad support reflects Knot’s dedication to improving payment processes for businesses and consumers alike, and to maintaining a customer-first approach in all its operations.

Pockit has raised $10 million in a growth round from some new partners, Puma Private Equity, and The North East Development Capital Fund, managed by Maven Capital Partners and supported by the European Regional Development Fund.

Pockit are passionate about democratising financial services for millions left behind by traditional banks, not just providing essential financial tools to low-income and underserved communities, but empowering them to achieve financial stability and growth.

More than 800k people across the UK trust Pockit to provide vital financial services and this latest investment will fuel our efforts to expand our services, reach more customers, and make an even greater impact in the lives of those who need it most.

Pockit have also welcomed new investor in Puma Private Equity and are grateful for the continued support of existing shareholders, including Maven Capital Partners who participated in this round, whose shared vision and dedication to supporting initiatives that bring positive change align perfectly with Pockit’s mission.

Functional Finance, a software platform that integrates and automates data and reporting functions for insurance companies, announced today that it has secured $8 million in seed capital, plus $2 million in SAFE notes for future equity investments, which will go towards product development and client relationships. The fundraising round was led by venture capital and growth equity firms New Enterprise Associates, Inc. (NEA), Walkabout Ventures and Altai Ventures, with participation from industry titan Hank Greenberg’s C.V. Starr Insurance and other premier investors.

Rashmi “Rush” Melgiri – a two-time insurtech entrepreneur – and seasoned technology executive Tony DeGangi co-founded Functional Finance in 2021. Their mission is to resolve the convoluted operational processes found throughout the insurance sector following years of experience dealing with insurance technology issues firsthand. CEO Melgiri previously co-founded CoverWallet and is joined by CoverWallet’s former president Jim Ermilio, who now serves as Functional Finance’s President. DeGangi, Functional Finance’s CTO, was previously the co-founder and CTO at Renew.com, an online Medicare brokerage platform.

Functional Finance’s technology easily integrates within the finance tech stack of corporate partners to offer billing/invoicing, premium collection, financing, reconciliation, payables processing, reporting and integration back to the general ledger. The platform provides an automated, seamless connection that offers total visibility at a policy or account level.

“At my last startup I realized firsthand that spreadsheets and emails are terribly inefficient, error-prone and costly ways for the insurance industry to manage their payables and receivables,” said Melgiri, CEO of Functional Finance. “You can build fast-growing businesses and take payments online but reconciling that on the back end is often overlooked and deprioritized, leaving it to intensive manual labour. There was a tremendous opportunity to create an automated technology solution that will make the industry move faster, and the experience should be more efficient and positive for clients and customers.”

As one of the only software solutions exclusively serving the insurance industry, Functional Finance has focused on building its flagship product and working with clients on integrating this seamless, multi-tenant, multi-solution platform. Unlike other software companies that offer efficiencies for a single aspect of financial management, such as payment processing, premium financing or data collection, Functional Finance provides the opportunity for reinsurers, carriers, MGAs, wholesalers and brokers to see the same thing in one place in real-time.

For those industry players who want to avoid back-office issues from the start, integrating the Functional Finance platform is quick and easy:

Dan Abrahamsen, CEO of Cover Whale, a leading commercial trucking insurance provider: “We are excited to announce our partnership with Functional Finance to provide a new and improved invoicing and payment experience for our customers. Cover Whale has grown to a $300+ million gross written premium run rate quickly and Functional Finance will allow us to continue that trajectory while keeping our internal expense ratios best in class and making things easier and faster for our producer network.”

Blair Baldwin, Founder and CEO of Boundless Rider, a new MGA in the motorcycle insurance market: “It gives me peace of mind offering our customers and agents an easy checkout experience using the Functional Finance platform. Equally important, working with Functional Finance lets us focus our time and resources on initiatives that drive top-line growth versus the nuts and bolts of billing, invoicing, payables, reconciliation, etc.”

The flexibility of Functional Finance’s platform is built to handle the many operational models in the insurance industry, and the group of seed investors is some of the biggest names in the software and fintech industries.

“The Functional Finance team has created a breakthrough technology that we believe will drive positive experiences and outcomes for the insurance industry, which has historically lagged in adoption of new technologies,” said Rick Yang, Partner, Head of Technology Investing, NEA. “Rashmi, Tony and the Functional Finance team bring valuable experience and a deep understanding of industry-specific opportunities, and we are thrilled to partner with them to modernize insurance data and reporting.”

iDenfy, a global identity verification, fraud prevention, and compliance tool platform, announced joining forces with Payout, a Slovakia-based financial company, providing innovative automated payment workflow solutions. 

Know Your Customer (KYC) entails gathering and authenticating essential details about a customer's identity, including their name, date of birth, address, and other identifying information. However, iDenfy claims that simply gathering customer information and extracting the data from government-issued documents isn’t enough. The RegTech company claims that 2023 showed a rise in the use of digital identity for everyday services.

Instead of one-time face recognition checks, there’s a more significant shift towards biometry technology and passive lives checks, allowing companies to build a more secure identity verification process. Furthermore, iDenfy explains that digital KYC verification methods, including video-based verification, have become more widely accepted for digital onboarding processes. 

Payout agrees with this approach, explaining that biometric-based identity verification has become a new industry standard. For this reason, the payment service provider looked for a fully automated biometric verification solution. According to Payout, using AI and machine learning to automate KYC processes helps the company save time and resources while making the process more accurate and efficient. 

With its growing user base, Payout provides various services that demand different levels of verification. The fintech company's goal is to assist partners in cutting down development costs, reducing rollout times, and simplifying the process of integrating various payment-related tools into their internal systems. Payout currently provides payment solutions to medium-sized enterprises aiming to replace slow, manual payments and XML-based reconciliations with efficient real-time, automatic plug-and-play payment workflows. The company sought a more robust KYC software to fuel its expansion plans.

When Payout came across iDenfy, a biometric verification solution, they recognized its potential as game-changing. The team was impressed by iDenfy's unique customization options, which included branding and white-labeling services, making it the most comprehensive platform they had encountered.

As a forward-thinking fintech company, Payout didn’t want to juggle multiple IDV providers at once and wanted to find a solution that could handle large verification volumes and accept various document types. Additionally, Payout’s goal was to implement an ID verification solution to create a seamless customer experience. With iDenfy, it will take four steps, or approximately under two minutes, to complete the full onboarding process. 

iDenfy's combination of standard ID inspections and biometric selfie checks enables Payout to prevent real-time fraud effectively. The integrated liveness detection feature helps identify fraudulent attempts, including altered photos or deepfakes, which are becoming more prevalent among fraudsters, as stated by iDenfy. This streamlined approach facilitates rapid scalability for Payout and ensures full compliance and a seamless KYC process.

"Our partners, like Payout, have unique needs – from the documents they require to local regulations and data collection. Our mission is to meet these specific requirements, and we're delighted to help Payout create a smooth and secure onboarding process for their expanding customer base." — said Domantas Ciulde, the CEO of iDenfy. 

Silverbird, the cutting-edge digital payment platform, is pleased to announce the appointment of Yaniv Mazor as their new Interim Chief Growth Officer.

In response to the dynamic landscape of the digital payment industry, Silverbird has taken a strategic step towards enhancing its growth trajectory with the addition of this highly accomplished and seasoned professional.

Yaniv Mazor's impressive track record in driving growth and transformation within the tech startup and scale-up ecosystem makes him the perfect fit for Silverbird. In his new role, Mazor will spearhead the company’s growth strategy, marketing initiatives, and transformational efforts, ensuring that Silverbird remains at the forefront of the industry.

“Yaniv’s passion for innovation and experience as a catalyst for growth makes him an ideal candidate to take Silverbird to new heights. His insights and knowledge will be invaluable assets to Silverbird as we navigate through dynamic market conditions,” stated Silverbird’s representative.

With over a decade of experience supporting startups and scale-ups in various industries, including FinTech, HRTech, AI, and eCommerce, Yaniv Mazor will bring a wealth of expertise to Silverbird. Furthermore, his experience as an entrepreneur and angel investor in several innovative companies adds a unique perspective to Silverbird's growth journey.

“I was very excited to meet Yaniv — a very bright and super-data-driven marketing professional. We are happy to have him in the team and continue building our talent density across the company,” says Max Faldin, Silverbird’s founder and CEO. 

As Silverbird continues to prioritize innovation and customer-centric solutions, this strategic hire reaffirms its dedication to delivering a seamless digital payment experience to its ever-expanding user base.

Research from Freedom Finance, one of the UK’s leading digital lending marketplaces and embedded finance providers, reveals the extent to which the UK’s most valuable retail brands are adopting financial services. 

The analysis reveals three of the top ten most valuable retail brands in the UK1 already offer embedded finance services to customers, while Morrisons is the only retailer in the top 10 not to offer financial services of any sort. 

When it comes to the top 15, only Ocado and Pets at Home joined Morrisons in not offering customers finance options. However, many of the finance options were limited to Buy-Now-Pay-Later (BNPL). None of the retail brands outside the top-ten offered the range of finance available via a full embedded lending offering. 

Embedded finance has become increasingly popular in recent years as retailers and brands have sought to create a smoother online experience for customers while diversifying their income streams. It involves non-financial brands offering financial products to customers within their online ecosystem, via a website 

or app. In its simplest form it is offering BNPL services via a single provider like PayPal or Klarna at the point of sale, but more sophisticated providers can offer range of products from a wide panel of financial institutions via a full embedded finance (lending) offering. 

Recent research from Freedom Finance has revealed how rising interest rates and tightening lending criteria have made the need to for access to a wide range of products and lenders is more important than ever. The research revealed that as interest rates on overdrafts and credit cards have increased rapidly since the middle of last year, so have the number of people looking to consolidate more expensive,  ongoing debt into lower-cost, fixed-term personal loans. While its latest Credit Monitor revealed that credit card rates are now at their highest level since December 1997. 

Freedom Finance allows customers to choose from the widest panel of unsecured loan providers on the  market. Its proprietary technology is dedicated to helping consumers find the best deal, in the easiest possible way, without damaging their credit scores. 

Emma Steeley, CEO at Freedom Finance said that tightening credit conditions meant that a wide range of credit options was increasingly important for borrowers, lenders and brands. 

She commented: “The boom in embedded finance has for a long time been linked to growth in BNPL seen during the pandemic lockdown, but the adoption of financial services by retail brands is far more sophisticated than that. 

“The best retail brands want to offer their customers the most appropriate credit options available to them and an embedded finance platform with a wide panel of lenders is a user-friendly way to do that.  

“By adopting this type of technology, brands are offering consumers the best financial services options that  are available to them and lenders get higher-quality loan applications, which they are willing to pay for, so  it creates a whole new income stream for the brand.” 

MoneyFitt™, a Singapore-based FinTech, are excited to announce its official launch in Singapore. MoneyFitt™ aims to empower individuals to take control of their financial well-being by offering personalised tips, a network of trusted experts, and a wealth of educational resources. The launch follows a successful proof of concept project in collaboration with Prudential.

MoneyFitt™ recognises that each person has unique financial needs and goals. By leveraging advanced algorithms, the app provides users with actionable steps to improve five foundational areas of financial well-being: Spending, Credit Card, Emergency Fund, Protection, and Investments. Through the app's intuitive interface, users understand what to do, which steps to prioritise, and why they are essential.

One of the standout features of MoneyFitt™ is its access to a matching service of Singapore's trusted financial experts. Users can complete their profiles with relevant financial information and objectives, and then select a licensed financial advisor who users feel they can relate to and understand their needs. MoneyFitt™ does not charge users for connecting with advisors, nor does it take any commission from action taken through experts, for a transparent and hassle-free experience. It's the perfect platform for individuals seeking expert guidance without the risk of a hard sell.

"Our primary focus is to help individuals address multiple areas of personal finance, ultimately improving their financial, mental, and physical well-being," stated Lim Ka-ming, CEO of MoneyFitt™. The platform leverages content and customised suggestions to push action in every aspect, whether creating a budgeting template, developing an emergency fund, building an investment portfolio, or contacting a human advisor.

MoneyFitt™'s target audience for the Singapore launch comprises Gen Z and Millennial Singaporeans and working professionals who desire financial security but may lack the knowledge or confidence to attain it. The app caters to individuals who want to take action and are not afraid to ask for help from an expert.

Key features of the MoneyFitt™ app:

The app's features are designed to address the most important pain points faced by users, providing tangible benefits to enhance their financial well-being:

1. Content Feature: A vast library of financial literacy content, including articles, videos, quizzes, infographics, and tools. Users can choose their interests to access relevant content related to investing, retirement planning, saving, and wellness. The content produced by MoneyFitt™ and trusted third-party sources ensures unbiased and engaging information, free from product sales pitches.

2. Sliders Feature: A personalised feature that provides actionable steps to address the five foundational areas of personal finance. By addressing pain points and providing guidance on prioritising financial actions, MoneyFitt™ helps users take crucial steps toward financial freedom.

3. Expert Matching Feature: MoneyFitt™'s matching service allows users to connect with financial experts who can understand and relate to their unique needs and aspirations with the touch of a button. MoneyFitt™ does not provide investment or insurance advice but arms users with knowledge they can use to address their financial needs.

4. MoneyBott AI Chatbot: MoneyFitt™'s innovative feature transforms how users consume information and enhances the overall experience, acting as an intelligent and interactive guide to answer key personal finance questions. By offering a more targeted content experience, users can learn more about subjects of interest, whether that be MoneyFitt™'s features or personal finance-related questions.

MoneyFitt™ has already received highly positive feedback from early Singaporean users, who noted the app is intuitive, proven effective, and action-driven.

The all-new MoneyFitt™ App is available for download on [August,22,2023] on both iOS and Android platforms.