Cotribute, an award-winning embeddable fintech platform helping credit unions grow deposits, loans, and memberships, today announced that it has successfully launched its digital account opening platform for Cheyenne, Wyo.-based Blue Federal Credit Union in just 30 days. Recently honored in a list of Investopedia’s 2023 Seven Best Credit Unions, Blue Federal Credit Union (Blue) with more than 115,000 members turned to Cotribute to implement its Online Account Opening.

Cotribute’s digital account opening platform is designed to help credit unions by optimizing for deposit growth and member experience. Entering into this strategic partnership with Cotribute, Blue is leveraging Cotribute’s platform to simplify the account opening experience for members and to grow membership.

Kent Richard, Chief Information Officer at Blue, said, “Our collaboration with Cotribute has truly been lifesaving. We experienced a critical setback with another vendor who couldn’t deliver on their technology promises, and we turned to Cotribute. Cotribute was able to blend speed and professionalism under the tightest of deadlines. Proving to be an excellent strategic partner, we look forward to scaling new heights together.”

Cotribute not only met the deadline for launching the credit union’s Online Account Opening but also accelerated the launch of their IDG platform within just two weeks from project initiation. The swift implementation allowed Blue to capture additional member deposits and salvage a year-long strategic product release.

Philip Paul, CEO of Cotribute, said, “Many credit unions today are searching for the right partner to advance their digital banking experience and maintain the competitive edge they need. We are thrilled to be part of Blue‘s journey towards innovation and growth. Dedicated to providing seamless, cutting-edge solutions that empower credit unions to thrive in the digital era, we look forward to driving Blue’s technology innovation and empowering them to better meet their members where they are.”

Londoners are the most reliant on their savings with almost 3m people forced to dip into savings pots to afford essential everyday costs, according to new research from AI-powered transaction analytics firm, Fuse.

A third (33%) of people in London rely on their savings to pay everyday expenses compared to 24% of people across the UK. However, the ongoing cost of living crisis means that the savings pots of many households will have eroded or been emptied.

As a result, half (50%) of Londoners admit they are more concerned about their financial position than at any point in the last three years compared to the 40% UK average.

These concerns are also forcing a fifth (19%) of people in London to rely on credit to pay everyday costs with a further 18% turning to borrowing to cover their mortgage or rent payments – compared to one in ten (12%) across the UK.

Despite increasing reliance on credit, a fifth (20%) of people in London say their access to credit has worsened since the pandemic – higher than the UK average of 16%. There is also an issue with the credit products that people can access with less than a third (29%) of Londoners believing that they offer good value.

Many people struggling to access mainstream credit options are forced to turn to high-cost alternatives to afford everyday costs – a fifth (19%) of Londoners who borrowed from high-cost lenders had to do so as they failed the affordability tests of mainstream providers, compared to a UK average of 11%.

A third (31%) of Londoners say they want improved guidance and support from financial services providers, compared to a fifth (21%) of people across the UK. One in three (31%) people in London also believe their bank could do much more to support them.

Previous research from Fuse showed that a third (32%) of lenders have seen an increase in borrower defaults over the last 12 months and a third (31%) of borrowers have been rejected by lenders due to failing affordability checks.

Sho Sugihara, CEO and Co-Founder of Fuse, comments: “Londoners are facing a potential credit crisis – with the cost of living crisis showing no sign of easing, the savings pots that millions of people have been using as a crutch to cover everyday costs will soon have vanished.

“Without savings to fall back on, these people will be forced with little option but to turn towards credit to not only pay for essential costs but also to keep a roof over their heads. As we enter the expensive winter period, financial pressures will only rise. Unfortunately, increased reliance on credit is building at a time when many Londoners are experiencing a drop in their access to credit products.

“Lenders must ensure they not only improve access to affordable credit products but also enhance the support solutions on offer to prevent borrowers from piling up long-term debt. By more effectively utilizing data insights into borrower affordability and vulnerability, lenders can identify potential issues for borrowers, stepping in with support at an earlier stage and reducing borrower defaults.”

Products, such as Fuse’s Health Signals, have been designed to support lenders by providing them with greater insights into areas of consumer vulnerability as well as predict arrears risk and monitor the impact of financial products on their customers. Alongside their advanced affordability and credit risk assessments, Fuse aims to aid financial inclusion in a way that is sustainable for lenders.

Fuse is the latest product from the credit builder app, Pave. Since its launch, Pave has analyzed more than 150,000 lending decisions, 1.5 million consumer credit reports, and over 400 million Open Banking transactions. Pave seeks to bring more financial equality to millions across the UK. As a fully regulated credit builder, receiving nearly half a million downloads to date, Pave utilizes Open Banking transactions to help consumers build better access to credit.

AperiData is thrilled to announce a ground-breaking partnership with premier digital identity provider OneID®.

This new partnership combines the unique bank-verified identification of OneID® with the transformative real-time consumer credit insights of AperiData that power instant, responsible, and ethical credit decisions.

“We are excited at the possibilities that will be unlocked for many sectors by working together to offer a powerful blend of AperiData’s real-time financial and risk insights with OneID’s innovative customer authentication capabilities”. 

Stephen Ashworth – CEO AperiData.

Both companies share the goal of creating simplicity and security for the customer, combining ID capabilities with the risk insights provided by open banking to enable customers to know the consumer, as well as understand the consumer’s financial position. Real-time identity checks combined with real-time affordability checks achieve exactly this, enabling lenders to make quick and fair decisions, giving both the company and consumer more confidence, that they are making the right decision.

This type of collaboration is not just limited to income verification, having widespread use cases that include automated direct debit set-up/reinstatement, enhanced employee screening process, and ethical gambling.

“A partnership with Aperidata is a natural fit for OneID. Bringing the power of bank-verified digital identity together with AI-powered real-time credit analysis gives our joint customers a better way to support their customers with their credit decision-making.

As a BCorp, that aims to make the world a safer place, we are delighted to be working with a partner that holds similar values”.

Stuart Kempster – Chief Product Officer, OneID®

Fintech Saudi and Kyndryl, the world’s largest IT infrastructure services company, have signed a memorandum of understanding (MoU) to help accelerate the adoption of advanced innovation among Saudi Arabia’s homegrown and locally-based entrepreneurs and startups in the financial technology (fintech) industry. 

The collaboration is part of Fintech's Enablement Program (Makken), an initiative by Fintech Saudi and supported by Saudi Central Bank (SAMA) and the Capital Market Authority. It is aimed at helping fintech entrepreneurs and startups go to market faster and more efficiently. The program closely aligns with the Kingdom’s fintech strategy, which is part of the pillars of the  Financial Sector Development Program that supports the strategic objective of “Saudi Vision 2030.” Makken is a verb in Arabic that means “to enable” or “to empower.”

Launched in April 2018 by SAMA in collaboration with the Capital Market Authority, Fintech Saudi catalyzes the Kingdom’s fintech industry development. It aims to transform Saudi Arabia into an innovative fintech hub, facilitate infrastructure capabilities and talent development, and provide support to entrepreneurs and startups throughout their developmental stages. According to SAMA’s annual fintech report, the number of fintech companies operating in Saudi Arabia has increased by approximately 300% since 2021, generating a total revenue of SR2.8 billion ($746.4 million) in 2022.

Under the MoU, Kyndryl aims to support fintech entrepreneurs and startups by providing a secure, fully managed, cloud-based incubation platform so that startups can focus on developing prototypes, use cases, and products and services before seeking funding. Throughout the incubation period, Kyndryl will provide technical support and additional resources to help transform ideas into viable, real-world technological innovations.

Additionally, Fintech Saudi and Kyndryl will co-host hands-on seminars, events, and workshops aimed at nurturing knowledge sharing, networking opportunities, and the promotion of modernization within the fintech community.

"We are proud to be chosen as an enablement partner for Saudi Arabia’s fintech entrepreneurs and startups and have the opportunity to contribute to the growth of the financial services sector in Saudi Arabia," said Andreas Beck, Vice President and Managing Director, Kyndryl Middle East and Africa. "Through the collaborative efforts of both organizations leveraging their strengths and resources, we are well-positioned to facilitate the development of innovative value propositions across the financial services value chain, addressing customer needs."

In the presence of the leadership team from both organizations, the MoU was signed by Nizar Al-Haider, Director at Fintech Saudi, and Andreas Beck, Vice President and Managing Director, of Kyndryl Middle East and Africa.

Klarna, the AI-powered global payments network and shopping assistant, announced today Matthew Miller will join the boards of Klarna Holding AB and its subsidiary, Klarna Bank AB. 

Matt Miller is a long-standing Partner at Sequoia focused on early and growth-stage investments in technology companies across the US and Europe. Over the last 11 years at Sequoia, Matt has worked closely with companies like Confluent, dbt Labs, Docker, Grafana, Graphcore, Hex, and Tessian. He also has a deep knowledge of AI and machine learning, holding several board positions in AI-related companies including Graphcore, Tecton.ai, Tessian, and Yokoy Group. Matt moved from California to London in 2021 to help launch Sequoia’s European office. 

Sir Michael Moritz, who led Sequoia's original investment in Klarna in 2010, will remain as an independent board member as well as Chairman allowing Klarna to continue enjoying his stewardship. Previously, Michael was the Chairman of Sequoia and has decades of experience serving on the boards of some of the world's leading internet and financial services companies including Yahoo, Paypal, Google, Linkedin, Stripe, and Instacart. Today, Michael is a senior advisor to Sequoia Heritage. 

Sebastian Siemiatkowski, CEO and Co-founder of Klarna said: “I am happy to welcome Matt to Klarna’s board. His long background at Sequoia, and in particular being a champion of opening an office on the ground in Europe playing into the support for European companies, is of great value to Klarna. In addition, his extensive expertise in technology, and AI, will be invaluable to the company. We are also delighted to continue to enjoy Sir Michael's support, particularly given his intimate knowledge of Klarna from over a decade on the board. Michael’s continued guidance and leadership will be especially valuable as Klarna prepares for an IPO."

Matt Miller, partner at Sequoia Capital commented: “Klarna is on an incredible trajectory, transforming the way the world views credit, payments, and shopping - sectors that have been teetering on the brink of disruption for quite some time. I'm excited to join Klarna’s board and support the company in continuing its impressive journey, particularly as it seizes the opportunity to further harness generative AI. Sequoia has had the privilege of partnering with Klarna for well over a decade and we know them to be true outliers. I look forward to spending more time with this great team and in Sweden, a place already close to my heart.”

The appointment was confirmed by Klarna’s shareholders at the EGM on 29 December 2023 and is subject to regulatory approval. 

Volt, the global real-time payments platform, today announces the appointment of Irina Chuchkina as the company’s first Chief Marketing Officer. Chuchkina joins at a significant period of growth for Volt - with ambitious plans to meet market demand for real-time payments across the globe - following the company’s $60m Series B funding round in June,  appointment of ex-Stripe European CEO, Matt Henderson, as a Special Advisor, and Volt’s global expansion into Australia. 

Chuchkina brings over 18 years of experience in the payments space across Europe and Asia. She was most recently Chief Marketing Officer at Thunes, a Singapore-based payment infrastructure platform where she led its global marketing strategy. Before Thunes, Chuchkina also held senior marketing roles at Series E payments scale-up Rapyd, Southeast Asia's super-app Grab and Visa. She has also served on the board of the Singapore FinTech Association and was named among the top 25 women leaders in financial technology in Europe by The Financial Technology Report. 

During her time at Rapyd, Chuchkina led its go-to-market strategy in the APAC region, and Global Brand and Communications. At Grab, she helped launch the mobile wallet GrabPay, as well as its loyalty platform GrabRewards. At Volt, she will be responsible for the global marketing strategy and building on Volt’s ambitious global expansion plans. 

Commenting on her new role, Irina Chuchkina said: “I firmly believe in the transformative power of real-time payments. Over the next few years, they will disrupt the status quo and reshape the payment ecosystem, and there is currently no company better suited to lead this evolution than Volt. 

“Tom and his co-founders have done an incredible job assembling a high-caliber team, laying the vision and foundations of a successful business. However, this is just the beginning of a remarkable growth journey. I couldn’t be more excited to join Volt at this time as the company’s first Chief Marketing Officer, to help it realize its immense potential, grow the value and power of its brand, and help the company expand into new markets.”

Founder and CEO of Volt, Tom Greenwood, commented: “Irina’s experience in payments and marketing is second to none and I couldn’t be more delighted to welcome her to the team. To have someone of Irina’s stature within the industry taking on the role is a testament to the great progress we have made. Continuing to build on our global vision is a primary objective. Irina’s international experience will be crucial in ensuring our success.” 

Bumper, the fintech enabling flexible payments for car repairs, has announced the completion of a $48 million / €46 million / £40 million Series B fundraising to accelerate its growth. 

Bumper helps drivers split repair bills into interest-free payments so they can keep their car on the road. It ensures car owners can cover the cost of repairs or servicing in an easier, more efficient, and flexible way while enabling dealerships and garages to provide digital payment methods to their customers, helping them win business and drive profitability. 

The funding round was led by Autotech Ventures and with investment from Shell Ventures as well as JLR’s InMotion Ventures, Porsche Ventures, and Revo Capital. The raise takes Bumper’s total investment to date to $64 million /€61 million /£53 million. 

The new funding will be used to expand Bumper’s reach and technology as it seeks to become the dominant payment platform for car dealers across Europe, most notably the UK, Spain, Germany, the Netherlands, and Ireland. Bumper is currently available through 5,000 dealers, which have provided flexible payments for more than 250,000 repairs in the last 12 months alone. The business wants to continue to double that number each year. 

Bumper – which is headquartered in Sheffield and has offices in London and Ankara – counts most of the major automotive brands in the world as clients, including Volvo, Ford, Nissan, VW Group, and many more, in addition to both JLR and Porsche.  

Its full suite of digital and physical payment options, including open banking payments, card payments, and in-dealership card terminals are designed to integrate fully into dealers’ existing infrastructure. Combined with extremely positive customer reviews (with over 23,000 reviews rated 4.9/5 on Trustpilot and 96% rating it as ‘excellent’ or ‘good’), Bumper has already built a track record as a trusted partner that can enhance the dealer-customer relationship. 

The funding round comes on the back of record growth, with Gross Merchandise Value (GMV) growing 100% YoY in recent years, and customer numbers up 80% in the last 12 months. 

James Jackson, co-founder and Chief Executive Officer of Bumper, said: “We want to be the dominant payment platform for car dealers across Europe. We’ll do it by providing a no-brainer solution, one that gives their customers the ultimate flexibility in making the necessary payments to keep their cars on the road. We are proud of the growth journey we have been on over the last 9 years and the endorsement of investment from InMotion Ventures and Porsche is a hugely positive moment for the business. 

“While we’re proud of our record, I firmly believe we’re just getting into second gear. There has never been a more important time for a business like Bumper, with consumers across Europe feeling the pinch amidst high inflation, rising bills, and escalating rent or mortgage costs. The need for a flexible way to pay for car repairs is vitally important for drivers, and dealers want to ensure they can provide customers with every reason to book them there and then. Bumper provides a win for dealerships and customers alike, and we look forward to expanding our reach to more and more people across Europe in the coming years.” 

Alexei Andreev, Managing Director of Autotech Ventures, said: “Bumper is one of the most innovative and exciting businesses in the global automotive space, enabling dealers to ensure their customers can afford repairs immediately, delivering both efficiency and profitability. Bumper solves a genuine customer need, supporting car owners in times of stress so that they can get back on the road as quickly and efficiently as possible. James, Jack, and the team have built a winning business model and we continue to invest to support their ambitious growth plans.” 

Mike Smeed of InMotion Ventures said: 

“Flexibility is synonymous with the modern luxury experience and this extends to offering JLR clients the convenience of spreading the costs of repairs. I'd like to congratulate Bumper for raising a further round of investment. In a highly competitive sector, the Bumper team stands head and shoulders above the rest, which is why we're proud to continue our support as they scale their operations across Europe.” 

Decentro, India’s leading Banking-As-A-Service startup, has launched its Penniless Bank Account Verification (BAV) API. Making it one of the first companies to launch such a product, it aims to help enterprises save over 5 - 10 man hours and close to Rs. 50 - 75 per onboarding of every new consumer or merchant. 

The first method of Penniless BAV, in contrast to the penny drop BAV process, is a method that allows an enterprise to obtain the name of a bank account holder or the status of the account using only the bank account number without requiring any nominal financial transaction. While penny-drop BAV brought in significant efficiency and security gains compared to manual verification, it still leads to failures in many cases, such as a wrong IFSC code entered or if the bank has merged with another bank. 

This is mainly because penny drop verification involves an actual Re. 1 (or penny) being sent from the source account to the destination for verification, and any issue during this entire flow leads to a failure. Moreover, for companies handling recurring payments and large-scale transactions, penny-drop verification increases the risk of sending funds to a fraudulent account unnecessarily. Penniless verification solves these pain points by eliminating the movement of money, ensuring a success rate of more than 99% (per the company’s benchmarks), and decreasing customer onboarding time even further. 

The second product, called Reverse Penny Drop or Penny Pull Verification in other words, essentially as the name implies, asks the user to make a Re. 1 payment (via UPI) instead of asking for the full account details and then depositing the Re. 1 (penny) as per the old methods. The interesting part here is that for a user, it is just like making a regular UPI payment online, and he doesn’t need to remember any of his long bank account details at any time. Once he makes a successful payment of Re. 1 via UPI, the aggregator / financial entity can then receive his verified bank account details as well as the actual registered name from the banking ecosystem in the API response itself. 

Commenting on the launch of these new flows, Rohit Taneja, Founder & CEO, Decentro said, “Since our inception in 2020, we have been driven by a singular goal of building a robust financial infrastructure for Indian fintechs and enterprises so that they can focus on innovation without having to spend their time sorting out the infrastructure. This has empowered us to find solutions and build products across the payments and banking value chain, giving us a significant advantage in having the most robust and safest data and financial flow ecosystem. This has helped us gain an airtight reputation in becoming one of the first banking infrastructure companies to launch a penniless verification module, which has a large potential to reduce costs for enterprises and make their financial flows safer.”

With only 30+ financial institutions using these new penniless & reverse penny drop-based verification processes in India, the potential for such a technology is significant. Decentro aims to capture the majority share of the market with its superior technology and end-to-end technology stack, which has the potential to deliver the fastest verification process most securely.

Notable players in the BFSI & fintech space have been building their platforms & journeys on top of the modular Decentro platform, such as Uni Cards, MoneyTap, CashE, Potlee, CreditFair, and many more. These 2 new & innovative offerings have already brought about the success rate of the overall bank account verification API suite of Decentro to more than 99.4% in the market. 

An early user of the bank account verification module from Decentro - Bhavik Davda, VP of CreditWise Capital, said, “Decentro’s APIs helped CreditWise Capital’s Twin2 with KYC and banking prowess. This lets us get the job done for both ID collection & verification and Bank Account Validation seamlessly. The way Twin2 can now collect information seamlessly from the user is amazing. Hope to grow a long way with Decentro.”