Nexo, the leading institution for digital assets, announced a partnership with Sift, the Leader in Digital Trust & Safety. By working with Sift, Nexo will be able to revolutionize its approach to fraud prevention, enhancing security measures and ensuring a safer, smoother, quicker, and more reliable experience for the company’s over 6 million users.

Nexo will utilize Sift’s industry-leading Payment Protection and Account Defense products, leveraging their advanced artificial intelligence and machine learning (ML) technology, and real-time intelligence to provide robust protection against a wide array of account and payment fraud challenges. Payment Protection will enhance Nexo’s platform with state-of-the-art payment fraud prevention, resulting in faster transaction approvals, and improved protection of customer funds. In parallel, Sift’s Account Defense will secure user accounts by preventing account takeovers, thus accelerating Nexo’s operational efficiency, and reducing losses associated with compromised accounts.

Nexo also gains access to Sift’s Global Data Network, its consortium of customers, including dozens of the world’s top crypto exchanges. The insights gleaned from the Global Data Network will allow Nexo to prevent fraud more accurately and quickly, and reduce friction for legitimate users.

This initiative places Nexo at the forefront of identifying and preventing complex fraud patterns, enhancing the accuracy and speed of its response, and fostering trust and confidence in the blockchain space.

“The synergistic alliance between Sift and Nexo demonstrates our unwavering commitment to a user-centric ethos, harmonized with robust security and anti-fraud protocols. By harnessing Sift’s cutting-edge technology and comprehensive platform for managing digital risk, Nexo is equipped to adeptly prevent fraud while creating a streamlined experience for our users,” said Savina Boncheva, Head of Compliance at Nexo.

“The crypto community is a magnet for organized fraud actors seeking financial gain,” said Armen Najarian, Chief Marketing Officer at Sift. “By joining Sift’s global data consortium and leveraging our AI-based risk decisioning platform, crypto exchanges like Nexo can greatly reduce fraud and create better experiences for legitimate users. We’re pleased to welcome Nexo to the Sift customer community and look forward to a successful and long-term partnership.”

Nexo is dedicated to continuously improving its security measures, and raising the bar for the entire industry. The partnership with Sift represents a significant step forward in Nexo’s journey towards a safer, more secure digital environment for its users.

KYND, a leading provider of cyber risk management solutions, has today officially disclosed a substantial investment in the business to propel expansion and further growth.

The investment comes from Verisk, a leading global data analytics and technology provider, and existing backer BGF, one of the largest and most experienced growth capital investors in the UK and Ireland.

Founded in 2018 by Andy Thomas and Melanie Hayes, KYND has developed a cyber risk monitoring platform designed to deliver instantaneous and continuous insights into the cyber risk profile of any organization. Offering actionable, and transparent cyber risk intelligence KYND supports informed and rapid decision-making across the cyber ecosystem.

The business has been recognized as one of the most innovative and powerful global cyber risk management solutions. Recent award wins in 2023 include “Cyber Security Product of the Year” at the Risk Management Awards and ‘Cyber Risk Management Solutions Provider’ at the Fintech Awards.

Since securing its Series A funding in early 2022 from BGF, KYND has extended its comprehensive suite of cutting-edge products and industry solutions which are used by leading insurers and brokers, such as Beazley, Howden, and Alliant, and private equity firms such as Phoenix Equity Partners. KYND has also successfully expanded into the US with a dedicated team now based in Austin, Texas.

KYND will use the new investment from BGF and Verisk to further support its global growth plans, as well as continue to develop transformative cyber risk technology.

Andy Thomas, CEO and Founder of KYND, said: “The threat of cybercrime is rising; attacks are now a question of “when” not “if” and the risk of these occurring has knock-on effects across the broader landscape. At KYND, we are committed to creating best-in-class, efficient, and insight-rich tools that not only remove complexity & jargon, making cyber risks easy to identify, monitor, and remediate but also enable rapid decision-making in this dynamic ecosystem. We are excited to continue working with BGF and look forward to welcoming the Verisk team as we execute our ambitious growth plans.”

Rowan Bird, Investor at BGF, said: “KYND has developed an industry-leading platform that provides actionable insights on cyber risk posture. The business has demonstrated impressive growth and this new investment demonstrates our belief in the long-term potential of the company as it continues to scale.”

Verisk’s investment in the business provides an exit for CPP, a UK-based provider of assistance and insurance products, which has backed the business since 2018.

Tim Rayner, President of Specialty Business Solutions at Verisk, said: “Helping our clients address the risks associated with cyber events is one way we build resilience for the global insurance industry. We are excited to support KYND and find new ways of working together in support of Verisk’s clients in the global insurance market.”

The Consumer Financial Protection Bureau (CFPB) today reported on the first set of results from the newly updated Terms of Credit Card Plans survey. The survey data reveal that large banks are offering worse credit card terms and interest rates than small banks and credit unions, regardless of credit risk. The 25 largest credit card issuers charged customers interest rates of 8 to 10 points higher than small- and medium-sized banks and credit unions. This difference can translate to $400 to $500 in additional annual interest for the average cardholder.

“Our analysis found that the largest credit card companies are charging substantially higher interest rates than smaller banks and credit unions,” said CFPB Director Rohit Chopra. “With over $1 trillion in credit card debt outstanding, the CFPB will be accelerating its efforts to ensure that consumers can access better rates that can save families billions of dollars per year.”

Today’s survey data includes information on all general-purpose credit cards of the largest 25 credit card issuers in the United States. The data also include a representative sample of products from small- and medium-sized banks and credit unions across the country. Among some the survey’s key findings:

• Large issuers offered worse rates across credit scores: Whether a person has poor, good, or great credit, large issuers offer higher interest rates. For example, the median interest rate for people with good credit – a credit score between 620 and 719 – was 28.20% for large issuers and 18.15% for small issuers.
• Fifteen issuers reported credit cards with interest rates above 30%: Nine of the largest credit card issuers in the country reported at least one product with a maximum purchase annual percentage rate (APR) of over 30%. Many of these high-cost products were private-label or co-branded cards offered through retail partnerships.
• Large issuers were more likely to charge annual fees: Among large issuers’ credit cards, 27% carried an annual fee, compared to just 9.5% of small firms. The average annual fee was $157 for the largest issuers, as opposed to $94 for smaller issuers.

The newly updated Terms of Credit Card Products survey is one part of the CFPB’s efforts to increase competition throughout the credit card market. The CFPB is promoting switching through open banking, scrutinizing bait-and-switch tactics on credit card rewards, closing loopholes that allow credit card issuers to extract junk fees, and promoting credit card comparison shopping.

In October 2023, the CFPB published its biannual consumer credit card market report. The report noted that more than 190 million consumers have at least one credit card. The report also stated that both credit card debt and spending reached record levels at the end of 2022. Debt surpassed $1 trillion, and spending reached $846 billion.

The CFPB will continue to release data on credit card pricing and availability every six months, with the next release slated for later in spring 2024. The CFPB is developing a consumer-facing tool that, once finished, will give people looking for a new credit card an unbiased way to compare credit card terms and interest rates.

HealthCARE of Iowa, a professional consulting partner with over 80 years of combined experience in providing consulting services for Senior Living environments, has partnered with DailyPay – the industry’s leading on-demand pay solution. Through this partnership, HealthCARE of Iowa is modernizing its benefits offerings by providing a voluntary financial wellness benefit that empowers employees to access their earned pay at the press of a button. 

“At HealthCARE of Iowa, we are committed to continuously improving the employee experience. DailyPay is a voluntary benefit that allows employees to access their pay as they earn it,” said Rob Hentzen, president and chief executive officer, HealthCARE of Iowa. “This benefit directly supports our hiring efforts – it’s a benefit employees want and should have access to.” 

According to research conducted by Arizent, commissioned by DailyPay, 80% of DailyPay users say it has a positive influence on their financial habits.

The research also found that 82% of surveyed employees in healthcare, medical, or social assistance industries say DailyPay makes it easier to understand how much income they’ve earned each day. With DailyPay’s work technology platform, employees have a real-time view of their pay as it accumulates and the option to withdraw it before the scheduled pay period. It’s a way for employers to offer full pay transparency that allows employees to better plan their lives and manage financial disruptions.

Since launching DailyPay, HealthCARE of Iowa has improved its turnover rates by over 60%, resulting in more employees staying on the job longer. 

Ai for Alpha, a leading fintech company specializing in leveraging machine learning for advanced investment strategies, announces the integration of Gen AI into its asset management models.

“We are excited by this innovative approach as it represents a significant advancement in optimizing investment processes through the application of generative AI technologies," says Beatrice Guez, CEO. "Specifically, Generative AI can synthesize and interpret news and investor sentiments from multiple sources and translate them into actionable investment decisions.”

By utilizing advanced technologies like RAG (Retrieval Augmented Generation), generative AI can analyze a variety of sources, offering an up-to-date perspective on investor sentiment and market trends. Investment professionals find it valuable to combine the analysis of investor sentiments with market indicators such as trends, risk aversion, and other market factors. “To that effect, Ai for Alpha has decided to use its technology to merge investor sentiment with quantitative market indicators,” says Jean-Jacques Ohana, head of product development.

"Our strategy combines traditional indicators characterizing financial stress on major asset classes, such as implied volatility and credit spreads, with indicators derived from Generative AI models that characterize investor sentiment on stock markets," explains Thomas Jacquot, Head of Business Development. "Taking positions based on these two indicators significantly improves the risk/reward profile for stock market investors, enabling them to limit major losses while profiting from the most favorable expansion phases."

"I believe our Gen AI-powered model will bring substantial improvements in the risk management of our clients’ equity portfolios. We are looking forward to implementing them with our asset management, banks, and insurance partners," concludes Jacquot.

Finom, an Amsterdam-based leading digital banking solution for SMEs and entrepreneurs, has announced a €50M Series B funding round. The round led by General Catalyst and Northzone, with participation from existing investors including Cogito Capital, Entrée Capital, FJLabs, s16vc, and Target Global, bringing FINOM’s total raised capital to over €100M.

The funds will be utilized to improve Finom’s existing product offerings, further marketing initiatives, and expand accounting services to meet the growing demands of SMEs across Europe. Finom, founded in 2020 by fintech veterans Andrey Petrov, Kos Stiskin, Oleg Laguta, and Yakov Novikov, provides a much-needed alternative to traditional banking for SMEs and freelancers. The platform allows for quick online bank account openings, complete with IBANs for seamless cross-border transactions. Clients benefit from both physical and virtual bank cards, sophisticated expense management tools, and integration with leading accounting software.

The infusion of new capital will fuel Finom’s ambitious plans to expand its offerings and geographic footprint. To serve the entire Eurozone by next year, the company is gearing up for localization efforts in additional markets.

Co-founder Kos Stiskin emphasized the vast growth potential in the EU’s SME banking sector, with less than 3% market penetration achieved so far by neobanking contenders. FINOM is committed to becoming the leader in the EU by adapting its unified platform infrastructure to the unique characteristics of each country it serves, aiming to transform the SME banking experience into something straightforward and user-friendly.

Bold has raised $50 million in Series C funding led by existing investor General Atlantic, a leading global growth investor, with participation from the International Finance Corporation (IFC), a member of the World Bank Group. Existing investors InQLab and Amador also participated in the round. With this new funding, Bold plans to bolster its product roadmap and offerings, as well as continue its focus on business expansion while deepening its position as a leading merchant acquirer in Colombia.

Bold was founded in 2019 to serve small and medium-sized businesses (SMBs) with a mission of fostering financial inclusion through the democratization of Colombia’s digital economy. Bold currently offers low-cost payment terminals that enable businesses to accept card-present and card-not-present payments and also support other local payment methods. The seamless enrollment process allows merchants to enroll in just minutes, providing immediate access.

This latest investment follows Bold’s February 2022 $55M Series B round. Since then, Bold has scaled from 380 to more than 800 employees and currently boasts more than 150,000 monthly active merchants.

José Vélez, Co-Founder and CEO of Bold, said, “Our work continues to empower small businesses by breaking payment barriers in Colombia. Now, thousands of merchants have access to digital financial services and can focus on the growth and success of their businesses. We’re thrilled to continue our work with General Atlantic and proud to partner with the IFC as we seek to transform and simplify how businesses accept payments in the digital era. We are also excited by our forthcoming product offering that will deliver even greater value to merchants, following Bold’s recent regulatory approval as a financial institution in Colombia.”

“We believe Bold is positioned at the forefront of Colombia’s emerging economy and playing a key role in bringing widespread accessibility to digital financial services,” added Luiz Ribeiro, Managing Director and Co-Head of the Brazil Office at General Atlantic. “Since our initial investment in 2022, we’ve seen Bold provide significant value to Colombian merchants, and we look forward to continuing our efforts with José and his team to further scale Bold’s offerings.”

“Bold’s commitment to the prosperity of entrepreneurs and their businesses through reliable and affordable financial tools aligns with our strategy of boosting inclusion and productivity in Latin America,” said Elizabeth Martínez de Marcano, IFC’s Regional director for Colombia, Mexico, Central America, and the Caribbean. “We are pleased to support Bold as they advance their mission to bring economic flexibility to small businesses.”

General Atlantic’s investment in Bold is subject to regulatory approval by the Superintendencia Financiera de Colombia.

Rasa, the leading generative conversational AI platform today announced the completion of its $30 million Series C funding round, co-led by StepStone Group and PayPal Ventures, with participation from Andreessen Horowitz (a16z), Accel, and Basis Set Ventures.

“This investment accelerates our lead in the market, and fuels our drive to redefine what is possible for businesses using generative AI-powered chat and voice platforms at scale,” said Melissa Gordon, Rasa CEO. “With our technology, we’re well-positioned to transform how businesses interact with their customers, making every conversation impactful and personal. We will use the funding to advance our technological leadership and strengthen our market presence.”

Dr. Alan Nichol, Rasa Co-Founder and CTO, added, “At Rasa we’ve reinvented how conversational AI works. While many in the industry claim to incorporate generative AI, often it’s merely an addition of LLMs onto their existing platforms.”

Rasa continues to deliver on its mission to empower the world’s largest brands to address people’s needs with open and extensible conversation⁠al AI. Rasa powers sophisticated and robust AI assistants aligned with customers’ business logic that provide meaningful and practical user engagement. The recent launches of Rasa Pro and Rasa Studio with CALM (Conversational AI with Language Models) deliver a major innovation that combines the flexibility, nuanced understanding, and fast time-to-value of Large Language Models (LLMs) with the control and certainty of traditional (NLU-based) chatbots. With out-of-the-box conversation handling, CALM ensures user interactions remain coherent and natural. Rasa Studio adds an intuitive UI that's built from the ground up for CALM, saving significant development time and reducing costs by reducing the reliance on specialist teams.

“We believe Rasa delivers unparalleled value to its clients by automating or eliminating the most expensive and time-consuming aspects of delivering excellent customer service,” said Hunter Somerville, Partner at StepStone Group. “Rasa has proven time and again that security-conscious enterprise customers can safely deploy the latest conversational AI, with an elegant low-code platform that offers robust functionality, data privacy, and scale.”

PayPal Ventures joins this round as the venture firm’s first AI investment, marking the launch of its new AI Fund to invest in early stage AI startups across all industries and verticals. “We are thrilled to mark the launch of our AI Fund with our investment in Rasa,” said Alan Du, PayPal Ventures partner. “We believe Rasa offers a best-in-class platform for enterprises to develop robust, conversational AI, and we have seen how its concierge solutions improve customer engagement and business performance.”

Rasa powers two of the world’s three top banks, major insurers, and global travel and hospitality companies, among others. Rasa has been downloaded more than 50 million times by developers.

“Rasa’s latest platform marks a revolutionary advancement in the realm of conversational AI. It effortlessly combines ease of use with advanced capabilities and will enable us to securely leverage the potential of Large Language Models to create an even more intuitive conversational experience for our customers,” remarked Andreas Bohmann, VP IT Enterprise and Integration Architecture at Deutsche Telekom.

The new funding will also allow Rasa to continue growing its team, which is dedicated to reshaping the future of AI assistants. Rasa is currently hiring several exciting roles across North America and Europe in Marketing, Sales, Engineering, Customer Success, and more.

Alkami Technology, Inc., a leading cloud-based digital banking solutions provider for financial institutions in the U.S., today launched the Alkami Digital Sales & Service Maturity Model, based on research conducted across 215 US financial institutions with at least $200 million in assets and completed December of 2023. The study, developed by Alkami in partnership with financial services influencer Jim Marous and Emerald Research Group, paints a picture of the spectrum of maturity by categorizing banks and credit unions into distinct segments based on their readiness and implementation of digital strategies. 

Some of the study’s key highlights include: 

• Digital maturity is linked to revenue growth, with the most advanced institutions reporting up to twice the annual revenue growth as the least advanced. These digitally mature institutions have fully deployed modern data technology, are more likely to source talent from outside the financial services sector, and prioritize investments to improve the account holder experience.
• Organization size does not solely determine digital maturity. One-quarter of financial institutions excelling digitally have less than $500 million in assets. In contrast, more than one in seven of the least digitally mature institutions have more than $5 billion in assets. The differences between those outperforming or underperforming peers in their asset class center around cultural identity, attention to platform feedback, and data modernization progress, among others.
• Even among the most digitally mature in the study, there is room to raise the bar. For instance, while digital account opening is offered by the majority of the most advanced institutions, only one quarter of them provide a 5-minute online account opening experience for new account holders and half are struggling to automate critical back-office processes. 

“The banking sector faces a transformative challenge: to adapt, innovate and thrive in an increasingly digital landscape,” said Jim Marous, owner and CEO of the Digital Banking Report. “Digital experience is now closely tied to a bank or credit union’s brand. Our hope is that the insights in this report spur productive conversations in the industry and enable financial institutions to not only react more quickly to digital change but also proactively leapfrog account holder expectations.”

“US financial institutions are currently operating in the most competitive market they have faced in years, forcing banks and credit unions to raise their game to drive deposits and account holder engagement. This means that the preferred way consumers choose to bank, the digital banking channel, must evolve from the service channel it primarily is today to the digital sales and service channel that account holders and financial institutions need and deserve,” said Allison Cerra, chief marketing officer at Alkami. “We are proud to offer the market this comprehensive benchmark to understand the key differences separating segments when it comes to prioritizing and implementing digital strategies.”