How Fintechs Expanding in Latin America Can Build Trust with SMEs

Small businesses in emerging economies are notoriously underfinanced. Despite making up over 99.5% of the economy in Latin America, SMEs face a financing gap in the trillions of dollars. For example, up to 78% of small businesses in Argentina and 45% in Peru struggle to grow because of financial constraints. Numerous articles and institutional white papers point to the lack of trust between banks and SMEs as a major cause of this financing gap. Banks simply do not know how to accurately calculate small business risk, especially in volatile economies in Latin America, so they offer high interest rates or pass on providing credit altogether.

Spotlight

Cetera Financial Group

Cetera Financial Group® ("Cetera") is a leading network of independent retail broker-dealers empowering the delivery of objective financial advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions. Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading provider of retail services to the investment programs of banks and credit unions.

OTHER ARTICLES
Payments

Unlocking Crypto's Power: Digital Currency and Its Boundless Potential

Article | September 14, 2023

Delve into the transformative potential of digital currency and B2B crypto payments, as they hold the key to revolutionizing conventional financial systems and advancing financial inclusion. Contents 1. Introduction 2. Benefits of Adopting Crypto in B2B Payments 3. Overcoming Challenges in B2B Digital Currency Integration 4. Trends and Innovations in Digital Currency 5. Future Aspects 1. Introduction The digital currency has emerged as the driving force behind the immense potential of cryptocurrencies, revolutionizing traditional financial systems and reshaping how individuals perceive and utilize money. Digital currencies have become a focal point of economic discourse, offering new avenues for financial inclusion, efficiency, and security in the era of technological innovation and decentralization. This paradigm shift in the concept of currency has sparked a global conversation on the future of finance, making it imperative to explore the transformative role of digital currencies. 2. Benefits of Adopting Crypto in B2B Payments Cryptocurrency is gaining prominence in mainstream usage by converting conventional coins to NFTs. It has led businesses to wonder whether electronic payments could replace regular cash. Crypto in B2B payments furnishes a cost-effective, swifter, and more efficient alternative to cash and bolsters the security of customer privacy during transaction execution. Here are the advantages of incorporating cryptocurrencies into B2B payments: Fraud Defender Most B2B payments use traditional methods like checks, cards, wire transfers, or cash, which are regulated and often involve intermediaries, making them susceptible to fraud. In contrast, cryptocurrency transactions are more secure, avoiding traditional financial institutions and relying on blockchain technology for direct execution and verification through distributed algorithms on network nodes. Swift Transactions Infusing B2B crypto payments into the payment spectrum guarantees faster transaction processing than conventional methods. This efficiency stems from a streamlined process involving fewer intermediaries, reducing processing fees. Boosting Business Reach Industries like mining, as well as oil and gas, often operate in countries with limited banking infrastructure, requiring alternative payment methods. Cryptocurrency provides a solution, enabling cashless transactions. Still, businesses must adhere to local regulations, as cryptocurrency use doesn't exempt them from responsibility, given restrictions on engaging with foreign governments. Secure Ownership Control In B2B crypto transactions, exclusive ownership control is a key feature, ensuring that users retain sole ownership of their encryption keys unless they choose third-party wallet management services. This differs from traditional banking or credit cards, which can lead to account closure due to terms of service violations, presenting re-entry difficulties. Resilient Adaptability 'Privacy coins' drive increased anonymity on blockchain networks, while supply chain tokens improve efficiency across various industries. These innovations underscore the versatility and continuous development of cryptocurrency. 3. Overcoming Challenges in B2B Digital Currency Integration In B2B digital currency integration, numerous challenges arise that demand strategic mitigation. Below are some of the challenges, along with their pathways to address them effectively: Managing Payment Method Diversity in B2B Transactions Moving from paper-based procedures to streamlined B2B payments is praiseworthy; however, substantial challenges must be addressed to accept digital payments broadly. To effectively navigate the myriad payment methods available to B2B clients and facilitate their digital acceptance, businesses must assess factors including cost, speed, security, accessibility, and compliance. Selecting the most suitable digital payment method entails ensuring that systems are contemporary, equipped with cutting-edge technologies such as encryption and tokenization, and capable of safeguarding customer data against cyber threats. It is equally imperative for businesses to stay attuned to evolving regulations and statutes governing digital payments to maintain compliance with industry norms. Ensuring Robust and Secure Interconnectivity Establishing a secure connection between two entities is a prerequisite for effective digital payments. This mandate encompasses the authentication of both parties and the deployment of encryption technologies to safeguard customer data from unauthorized access or tampering during transmission. Furthermore, mutual trust and access to a secure platform skilled at handling large data transfers are necessary. Creating such a system can be overwhelming, requiring substantial time and resources. Overcoming Legacy Infrastructure Challenges Many companies rely on obsolete legacy systems for B2B payments, which may need to be compatible with current digital payment solutions. Before modernizing payment processes, companies must evaluate the feasibility, costs, and benefits of upgrading these systems. This endeavor is costly and resource-intensive, requiring comprehensive security measures to protect customer data from cyber threats. Payment Platform Integration in Enterprises For the prompt processing of payments, businesses should smoothly incorporate their selected payment platform with current enterprise systems, including accounts receivable software, accounts payable software, or ERP systems. Achieving this integration is frequently intricate and time-consuming due to various platforms' distinct technical specifications and protocols. This poses a significant challenge for businesses, demanding substantial effort and resources to ensure the integration's success. Additionally, companies must guarantee data security during transfer and compliance with industry regulations and standards for all transactions. Managing Digital Payment Regulations Companies venturing into B2B cross-border payments must carefully comply with all applicable regulations governing procedures such as KYC/AML, data privacy laws, and international financial transactions. Ensuring compliance with local laws across multiple jurisdictions complicates this. The challenge lies in the need for companies to remain vigilant regarding regulatory changes, requiring substantial investments in time, expertise, and continuous updates to stay abreast of the latest developments. Simplifying Payment Processing for Efficiency Companies must also ensure that payment processing is seamless and efficient from both the clients' and providers' perspectives. Minimizing manual interventions wherever possible is imperative to maximize the operational efficiency gains inherent in digital B2B payments, including reducing processing timeframes and associated costs Seamless payment processing necessitates establishing robust processes, infrastructure, and technology, which, in turn, requires significant effort and resource allocation. This can be challenging for businesses grappling with tight timelines and limited budgets. Addressing Fraud and Security Risks Cybercrime and fraudulent activity pose a significant threat in digital transactions where two entities exchange potentially sensitive financial data. Failure to implement appropriate buyer risk management measures exposes both parties involved in the transaction to a heightened risk of financial loss due to fraud or security breaches. Although various security measures exist to safeguard data, companies must take additional steps to ensure the security of their digital payment platforms and protect sensitive information. This undertaking poses a challenge, demanding additional resource allocation, time, and effort to implement effective fraud detection and prevention measures. 4. Trends and Innovations in Digital Currency McKinsey and Company cite an 11% growth in digital payment penetration from 2021 to 2022. Moreover, this trend is only expected to continue, with more users adopting digital payments as their primary method for financial transactions. [Source – Vation Ventures] The adoption of various digital technologies is becoming increasingly prevalent. For instance, financial institutions swiftly embrace cloud computing to streamline and enhance their operational procedures for clients. Blockchain, an emerging technology, is gaining prominence as it facilitates swift and secure transactional activities beyond its conventional association with cryptocurrencies. It ensures the fast recording and monitoring of transactions and supports the legal facets of digital payments. Concurrently, biometric authentication methods, including fingerprint and facial recognition, are gaining prominence in digital payments, introducing notable security and privacy concerns. Despite these challenges, biometric technology is poised for an upward trajectory. Regarding services and service providers, there is a growing demand for real-time payment and settlement capabilities, driven by individuals and businesses seeking expedited and rapid transaction processing instead of conventional, less efficient batch methods. While this technological proliferation offers substantial advantages, it also raises significant considerations, including those related to privacy and anti-fraud measures. 5. Future Aspects According to Bank of International Settlements, more than 50 central banks, representing the bulk of global GDP, are exploring digital currencies. The Economist reports that ‘the EU wants a virtual euro by 2025, Britain has launched a task force, and America, the world’s financial hegemon, is building a hypothetical e-dollar.’ [Source – IBM] The future of digital currency holds significant promise and potential for transformative changes in finance and commerce. The rapid development of central bank digital currencies (CBDCs), increasing adoption of cryptocurrencies, and ongoing innovation in blockchain technology underscore the enduring significance of digital currencies. These advancements offer the potential for improved financial inclusivity, lower transaction costs, and enhanced payment system efficiency. Nevertheless, these opportunities go hand-in-hand with notable regulatory and security challenges that require attention to ensure digital currencies' safe and secure integration into the financial systems. Effective collaboration among governments, financial institutions, and technology providers is crucial to unlocking the full potential of digital currencies while mitigating potential risks. With careful planning and strategic implementation, digital currencies have the potential to reshape the future of finance, delivering a more accessible, efficient, and inclusive financial system for all.

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Financial Management, Payments

Proofing B2B Payments with E-Invoicing: A Path to Sustainable Growth

Article | June 20, 2023

Discover the digital payments’ momentum, powered by proofing B2B payments. Explore how professionals navigate skill gap challenges in the era of digital transformation and electronic transactions. Contents 1. Introduction 2. Need for Future-Proofing B2B Payments 3. Advantages of Electronic Billing in B2B Transactions 4. Traditional Paper-Based Invoicing versus Electronic Billing 5. Security and Compliance in Digital Payments 6. Future Scope 1. Introduction In a move towards digitalization and streamlining business processes, France will implement mandatory B2B e-invoicing and e-reporting from July 2024 until January 2026. This new e-invoicing mandate introduces the Continuous Transaction Controls (CTC) model, which impacts all companies operating in France. [Source: Nuflow] The adoption of electronic invoicing and payments, also known as e-invoicing, is becoming increasingly essential for businesses across various sizes and industries. Through digitizing the invoicing procedure, e-invoicing empowers companies to realize many advantages, including heightened efficiency, fortified security measures, fiscal savings, increased precision, and augmented transparency in financial transactions. This transformative approach to invoicing is gaining traction as a pivotal tool for businesses seeking to modernize their operations and bolster economic sustainability. Furthermore, adopting electronic billing systems minimizes the likelihood of errors by enabling the automatic transfer of invoice data between systems and reducing the need for manual data entry. 2. Need for Future-Proofing B2B Payments The need for future-proofing B2B payments has gained unprecedented urgency in the wake of the COVID-19 pandemic, which catalyzed the rapid evolution of digital payment technologies. This global crisis has compelled businesses across various industries to expedite their transition towards cashless and digital payment solutions, intensifying the demand for agility and adaptability. Technology professionals are facing significant pressure as they navigate the need for rapid upgrades, digital transformation efforts, and the essential task of closing skill gaps within their organizations. Furthermore, Chief Information Officers (CIOs) and Chief Technology Officers (CTOs) have faced exceptional challenges in banking and finance as the pandemic rendered traditional in-person banking obsolete, forcing institutions to pivot toward online-only and cashless operations. In this situation, the need for future-proofing B2B payments has become more than just a strategic requirement; it has become a critical lifeline for businesses striving to excel in the swiftly advancing, digitally-focused era that emerged after the pandemic. 3. Advantages of Electronic Billing in B2B Transactions According to a report by Arden Partners, e-invoicing provides organizations with 70% greater visibility into their financial processes. [Source: LinkedIn] This transformative approach to billing is steadily gaining prominence as an essential instrument for companies seeking to modernize their practices and enhance financial resilience. Optimized Process Efficiency Integrating e-invoicing serves to fine-tune billing procedures, alleviating errors and delays while delivering heightened operational efficiency. This, in turn, empowers businesses to allocate resources with greater precision and amplify their overall productivity. Cost Savings The cost savings realized through adopting electronic billing in B2B transactions extend beyond eliminating paper-based invoicing. By automating invoice processing, businesses can significantly reduce overhead costs associated with manual data entry, postage, and storage, allowing for more efficient allocation of financial resources to core business activities. Heightened Accuracy E-invoicing's heightened accuracy reduces the potential for manual errors, such as inaccuracies in data entry and mathematical calculations standard in traditional invoicing, but also contributes to enhanced trust in financial transactions. This precision ensures that billing information is reliable, fostering smoother B2B interactions and financial accountability. Enhanced Security E-invoicing systems provide more secure methods for transmitting invoices and associated data than conventional paper-based invoicing. Its solutions frequently incorporate advanced features like encrypted documents and digital signatures, ensuring document authenticity and controlled access to user accounts. Consequently, records are safeguarded against security breaches, reducing the risks of errors and fraudulent activities. Improved Visibility into Financial Transactions E-invoicing offers businesses an automated and centralized repository for storing, tracking, and managing their invoices. This facilitates simplified payment monitoring and provides comprehensive insight into financial transactions spanning multiple offices, locations, and departments. 4. Traditional Paper-Based Invoicing versus Electronic Billing Electronic Billing or e-invoicing can be described as the electronic exchange of invoices in structured data formats between software applications, distinct from traditional methods like sending PDFs or emails. This approach is fully automated, and when compared to conventional invoicing, it demonstrates remarkable efficiency in areas such as invoice processing, costs, visibility, transparency, data accuracy, and security for both buyers and sellers. Transaction Processing Traditional invoice processing involves multiple time-consuming steps, from creating and sending invoices to reviewing, approving, and archiving them. This manual process is prone to errors, slows operations, and can lead to payment delays, mainly when staff handles multiple tasks simultaneously. This delay can be especially problematic for smaller businesses, impacting their cash flow. In ideal conditions, paper invoices take about 23 days to process, but this timeframe can stretch to a cumbersome 90 days when errors occur. On the other hand, B2B electronic payments operate differently, simplifying the process for sellers and buyers. Sellers generate invoices from their purchase orders (PO) within their software. The buyer's software then matches the invoice with the PO for payment approval. Automation eliminates the manual steps, making e-invoicing 60-80% more efficient than traditional paper-based processing, with some sources citing an average processing time of just five days. This accelerates payments for sellers and streamlines operations for buyers. Financial Outlays Traditional invoicing entails a range of expenses for both buyers and sellers. These include costs associated with printing, whether physical or PDF invoices are used, leading to expenditures on paper, ink, and printer maintenance. Labor expenses also escalate as businesses expand, requiring additional personnel for invoicing tasks. Furthermore, physical invoices entail postage costs when mailed, and the need to file physical invoices incurs its own expenses. Conversely, e-invoicing significantly reduces costs due to the diminished need for manual processing and the electronic transmission of invoices. These advancements have made e-invoices approximately 70% cheaper than their traditional counterparts. Additionally, e-invoicing often allows buyers to adhere to their suppliers' payment terms, mitigating late fees and enabling early payment discounts. Visibility and Data Precision Traditional invoicing can be a complex process involving various platforms and software, as well as the maintenance of intricate physical and electronic filing systems. This complexity can pose challenges in effectively managing, preserving, and retrieving records, impeding the reporting process. Consequently, this can adversely affect the precision of a business' performance metrics and the data quality used in decision-making. In contrast, e-invoicing streamlines this process by enabling businesses to utilize a single software solution for invoice creation and processing. This simplification enhances visibility and transparency in managing payables and receivables. It also reduces the need to consolidate information from multiple systems and handle paper documents. Moreover, the diminished risk of errors resulting from manual processing contributes to improved data accuracy. Security Traditional invoicing poses significant security risks, including the potential for counterfeit or tampered invoices, where invoice details can be altered without the knowledge of either party, as well as the susceptibility to billing scams and fraudulent activities, with invoices sometimes sent to misleading sources, resulting in financial losses due to the easily adjustable formats and the risks associated with sending invoices via mail or email. In addition to its role in facilitating secure B2B payments and transactions, e-invoicing offers a heightened level of security. It requires certified access points for sending and receiving invoices, ensuring adherence to a robust and reliable framework mandated for all participants. E-invoices are sent in a standardized format that cannot be altered. This approach significantly improves the traceability of archive management, thus enhancing your audit trail. Moreover, e-invoicing often includes advanced encryption and authentication measures, further safeguarding sensitive financial data and reducing the risk of fraudulent activities. These combined security features make e-invoicing a compelling choice for businesses seeking both efficiency and enhanced security in their payment processes. 5. Security and Compliance in Digital Payments Digital payments offer heightened security compared to offline transactions as they eliminate the need for individuals to carry physical cash or cards, reducing the risk of theft and providing a comprehensive electronic trail for tracking and identifying potential fraud. Moreover, they remove businesses' need to hold cash on-site, enhancing security by transferring funds directly to a secure bank account. However, digital payments also pose unique security challenges, such as verifying consumer identities in the faceless online environment, which may necessitate innovative security measures to counter potential fraud and theft. Businesses that accept digital payments encounter several security risks, encompassing the following aspects: Third-party Risk Many B2B payments companies rely on third-party entities to streamline operations and reduce costs. However, this practice introduces additional layers of risk if companies fail to thoroughly evaluate their prospective third-party partners before establishing a business relationship. Many third-party vendors outsource their operations to external entities, thus generating fourth and fifth-party risks. Enterprises often engage with many vendors, such as payment processors, point-of-sale system providers, and payment gateway service providers. Inadequate security controls for third-party involvement can expose all the data transmitted through these devices and applications to various security vulnerabilities. Phishing Scams Phishing has remained a well-established method for illicit data acquisition and is a potent hacking technique. The hacker typically solicits sensitive personal information to fulfill an urgent request, such as completing a loan application requiring banking details. Hackers can exploit the obtained personal information upon the victim's compliance to gain unauthorized access to credit cards and bank accounts. Phishing scams can target anyone, from lower-level employees to senior management personnel, putting data security at risk and facilitating theft. Malware Malware incidents arise when users download applications, files, or attachments that contain malicious software. Once the malware infects a device, the perpetrator behind the software gains unauthorized access to all stored information. Although many companies install firewalls and antivirus software on their desktop and laptop computers, these protective measures are frequently omitted for mobile devices. Many businesses now employ tablets or smartphones as point-of-sale operating systems to process payments. The substantial volume of cardholder information stored on these devices renders them susceptible to malware attacks, potentially compromising the data of any individual who has conducted a transaction using the affected device. 6. Future Scope This article explores electronic billing, focusing on proofing B2B payments and emphasizing the need for future-proofing payment processes. While the advantages of electronic billing over traditional paper-based invoicing have been highlighted, the future scope resides in the continuous evolution of technology and regulations in digital payments. As businesses increasingly adopt e-invoicing solutions for efficiency gains, there will be a growing demand for innovative tools that enhance security and compliance, ensuring the smooth flow of transactions in a secure, transparent, and sustainable manner. Moreover, integrating emerging technologies like blockchain and artificial intelligence may further revolutionize B2B payment solutions, presenting exciting opportunities and challenges for businesses seeking to stay competitive in financial transactions.

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Core Banking, Digital Banking

Why Payments-as-a-Service is the first choice for FIs

Article | June 16, 2023

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

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BIG TECH IN FINANCE: A DEEP DIVE INTO THE FUTURE OF FINTECH

Article | February 10, 2020

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

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Spotlight

Cetera Financial Group

Cetera Financial Group® ("Cetera") is a leading network of independent retail broker-dealers empowering the delivery of objective financial advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions. Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading provider of retail services to the investment programs of banks and credit unions.

Related News

Core Banking

Fiserv Accelerates Collaboration Among Financial Institutions and Fintechs with Streamlined Access to Core Platform APIs

Business Wire | October 26, 2023

Fiserv, Inc. a leading global provider of payments and financial services technology solutions, announced that it has streamlined access to its core banking APIs to accelerate innovation across the industry. Third-party developers now have instant access to collaborative workspaces through Banking Hub, a single location to access Fiserv banking APIs within its Developer Studio. Over 500 developers from fintechs, payfacs, merchants, major brands and system integrators already have begun using a workspace to co-develop unique use cases. “Instant self-service integration tools address developers’ need to efficiently test live banking APIs and streamline the path to bring next-generation banking solutions to market,” said Tom Eck, senior vice president of Digital Technology at Fiserv. “This launch is part of our broader strategy to make it faster and easier for financial institutions, fintechs and merchants to connect with each other and work together to launch unique initiatives that enhance customer relationships and expand revenue opportunities.” Banking Hub accelerates and streamlines the path for fintechs to build, test, certify and deploy pre-integrated apps in AppMarket, a marketplace for Fiserv financial institution clients to access third-party innovations, or to embed a range of financial services into their customer experience. Banking Hub provides development teams an organized space to collaborate and manage projects with multiple workflows. Developers can explore how Fiserv core banking APIs can support banking as-a-service (BaaS), allowing them to launch new digital experiences and expanding financial institution access to a broad range of third-party fintech solutions. said Ryan Canin, CEO of DocFox. As a fintech founder, I’m impressed with the way Fiserv continues to evolve their business to embrace collaboration that drives the financial services industry forward. By streamlining the way fintechs like DocFox connect with their solutions, Fiserv is creating opportunities for consumers and small businesses to access new experiences and innovative capabilities through their financial institutions. [Source:Business Wire] Fiserv designed Banking Hub workspaces to deliver a self-service experience. With quick start guides and comprehensive documentation, code samples and videos, developers can now build and validate a proof of concept at speed, which gives them an advantage in a fast-moving market. In a few clicks, a developer can create an account, add a workspace, and be issued an instant API key to start working with Fiserv core banking APIs. Trial accounts are currently available at no charge, and developers can upgrade to a dedicated workspace. Subscriptions to a dedicated workspace give fintechs everything needed to bring their project to production. Fiserv has published the workspace environment for Finxact, a next-gen innovation platform designed for the business of banking, fintech and embedded finance. Development environments are also available for Premier®, the most widely used core banking platform in the U.S., and Signature®, a customizable platform used by many regional and larger financial institutions. A workspace for DNA® will be available in 2024, and workspaces for additional Fiserv core platforms will continue to be made available at a rapid clip. “Financial institutions are pressed to grow their portfolio through tailored services, accelerate speed to market and appeal to younger generations,” said Niranjan Ramaswamy, vice president of Open Finance & Banking Hub at Fiserv. “Pre-integrated fintech solutions can help address these challenges by allowing financial institutions to cost effectively address targeted strategies and growth opportunities. With compelling new capabilities in gig economy banking and small and mid-size business lending, for example, financial institutions can expand customer relationships while growing deposits.” In a world moving faster than ever before, Fiserv helps clients deliver solutions in step with the way people live and work today – financial services at the speed of life.

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Financial Management

Momnt and Acorn Finance Join Forces to Transform the Future of Lending for Home Improvement Merchants

Business Wire | August 14, 2023

Momnt, a leading financial technology company specializing in real-time lending and payment solutions for businesses, today announces the launch of Acorn Finance powered by Momnt. In a first-of-its-kind partnership, Acorn Finance’s direct-to-consumer lending platform has combined direct and indirect lending with embedded financing by integrating Momnt’s market-leading fintech. This integration created the most comprehensive solution for home improvement merchants in the U.S., enabling Acorn Finance to bring faster funding, more attractive APRs, and deal-closing promotional loans to its vast network of over 10,000 merchants. “Taking our merchants to the next level is what this partnership is all about,” said Giri Addanki, CEO of Acorn Finance. “By partnering with Momnt, we’ve given options to our merchants that they couldn’t have accessed on the open market.” Acorn Finance has incorporated the industry-leading and popular features of Momnt’s financial technology, including multiple finance product offers for all qualified consumer applications, same-day funding for merchants, and consumer loan decisions in real-time. “What excites us the most about this partnership is how we’re providing home improvement merchants with unparalleled growth opportunities through our products and technology, made possible exclusively through the implementation of embedded lending,” said Michael O’Connell, VP of Partnerships at Momnt. About Momnt Momnt powers modern lending solutions that enable businesses to provide low-friction financing to their customers at the moment they need it — all funded by trusted lending partners. Its API-based platform leverages alternative data sources and ML/AI-informed decisioning to present real-time loan offers fit to each individual borrower, all done within the banking industry’s current regulatory infrastructure. About Acorn Finance Acorn Finance is the world’s first embedded lending marketplace for home improvement financing, driving better outcomes for borrowers, lenders, contractors, and software vendors. Borrowers can shop for the best rates from the best lenders, all within a few seconds and fewer clicks. Lenders can reach more homeowners while testing the ideal rates for optimum engagement. Contractors can increase sales by offering financing to customers at no extra cost to themselves.

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Financial Management, Security and Compliance

Numerix Acquires PolyPaths, Expanding Market Expertise in Structured Finance & Fixed Income

PR Newswire | August 03, 2023

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 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. About Numerix Numerix is a leading provider of innovative capital markets technology solutions and real-time intelligence applications for trading and risk management. Numerix is dedicated to driving a more open, fintech-oriented, digital financial services market. Built upon a 20+ year analytical foundation of deep practical knowledge, experience and IT understanding, Numerix is uniquely positioned in the financial services ecosystem to help its users reimagine operations, modernize business processes and capture profitability. About PolyPaths PolyPaths was founded in 1996 to create a versatile, easy-to-use, fixed income analytics solution with uncompromising analytical rigor. Today, the company is a market leader in advanced solutions for fixed income analytics. Its platform leverages its founders' vast experience in high volume, sell-side systems and combines the modeling rigor and user control of a single sector trader with the universality of a general portfolio manager. The resulting system meets the diverse needs of multiple users in the front and mid-office of financial organizations including traders, hedge fund managers, portfolio managers, risk managers, research analysts and asset liability managers. About Genstar Genstar Capital is a leading private equity firm that has been actively investing in high-quality companies for over 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Together with Genstar XI and all active funds, Genstar currently has approximately $49 billion of assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrials, and software industries.

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Core Banking

Fiserv Accelerates Collaboration Among Financial Institutions and Fintechs with Streamlined Access to Core Platform APIs

Business Wire | October 26, 2023

Fiserv, Inc. a leading global provider of payments and financial services technology solutions, announced that it has streamlined access to its core banking APIs to accelerate innovation across the industry. Third-party developers now have instant access to collaborative workspaces through Banking Hub, a single location to access Fiserv banking APIs within its Developer Studio. Over 500 developers from fintechs, payfacs, merchants, major brands and system integrators already have begun using a workspace to co-develop unique use cases. “Instant self-service integration tools address developers’ need to efficiently test live banking APIs and streamline the path to bring next-generation banking solutions to market,” said Tom Eck, senior vice president of Digital Technology at Fiserv. “This launch is part of our broader strategy to make it faster and easier for financial institutions, fintechs and merchants to connect with each other and work together to launch unique initiatives that enhance customer relationships and expand revenue opportunities.” Banking Hub accelerates and streamlines the path for fintechs to build, test, certify and deploy pre-integrated apps in AppMarket, a marketplace for Fiserv financial institution clients to access third-party innovations, or to embed a range of financial services into their customer experience. Banking Hub provides development teams an organized space to collaborate and manage projects with multiple workflows. Developers can explore how Fiserv core banking APIs can support banking as-a-service (BaaS), allowing them to launch new digital experiences and expanding financial institution access to a broad range of third-party fintech solutions. said Ryan Canin, CEO of DocFox. As a fintech founder, I’m impressed with the way Fiserv continues to evolve their business to embrace collaboration that drives the financial services industry forward. By streamlining the way fintechs like DocFox connect with their solutions, Fiserv is creating opportunities for consumers and small businesses to access new experiences and innovative capabilities through their financial institutions. [Source:Business Wire] Fiserv designed Banking Hub workspaces to deliver a self-service experience. With quick start guides and comprehensive documentation, code samples and videos, developers can now build and validate a proof of concept at speed, which gives them an advantage in a fast-moving market. In a few clicks, a developer can create an account, add a workspace, and be issued an instant API key to start working with Fiserv core banking APIs. Trial accounts are currently available at no charge, and developers can upgrade to a dedicated workspace. Subscriptions to a dedicated workspace give fintechs everything needed to bring their project to production. Fiserv has published the workspace environment for Finxact, a next-gen innovation platform designed for the business of banking, fintech and embedded finance. Development environments are also available for Premier®, the most widely used core banking platform in the U.S., and Signature®, a customizable platform used by many regional and larger financial institutions. A workspace for DNA® will be available in 2024, and workspaces for additional Fiserv core platforms will continue to be made available at a rapid clip. “Financial institutions are pressed to grow their portfolio through tailored services, accelerate speed to market and appeal to younger generations,” said Niranjan Ramaswamy, vice president of Open Finance & Banking Hub at Fiserv. “Pre-integrated fintech solutions can help address these challenges by allowing financial institutions to cost effectively address targeted strategies and growth opportunities. With compelling new capabilities in gig economy banking and small and mid-size business lending, for example, financial institutions can expand customer relationships while growing deposits.” In a world moving faster than ever before, Fiserv helps clients deliver solutions in step with the way people live and work today – financial services at the speed of life.

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Financial Management

Momnt and Acorn Finance Join Forces to Transform the Future of Lending for Home Improvement Merchants

Business Wire | August 14, 2023

Momnt, a leading financial technology company specializing in real-time lending and payment solutions for businesses, today announces the launch of Acorn Finance powered by Momnt. In a first-of-its-kind partnership, Acorn Finance’s direct-to-consumer lending platform has combined direct and indirect lending with embedded financing by integrating Momnt’s market-leading fintech. This integration created the most comprehensive solution for home improvement merchants in the U.S., enabling Acorn Finance to bring faster funding, more attractive APRs, and deal-closing promotional loans to its vast network of over 10,000 merchants. “Taking our merchants to the next level is what this partnership is all about,” said Giri Addanki, CEO of Acorn Finance. “By partnering with Momnt, we’ve given options to our merchants that they couldn’t have accessed on the open market.” Acorn Finance has incorporated the industry-leading and popular features of Momnt’s financial technology, including multiple finance product offers for all qualified consumer applications, same-day funding for merchants, and consumer loan decisions in real-time. “What excites us the most about this partnership is how we’re providing home improvement merchants with unparalleled growth opportunities through our products and technology, made possible exclusively through the implementation of embedded lending,” said Michael O’Connell, VP of Partnerships at Momnt. About Momnt Momnt powers modern lending solutions that enable businesses to provide low-friction financing to their customers at the moment they need it — all funded by trusted lending partners. Its API-based platform leverages alternative data sources and ML/AI-informed decisioning to present real-time loan offers fit to each individual borrower, all done within the banking industry’s current regulatory infrastructure. About Acorn Finance Acorn Finance is the world’s first embedded lending marketplace for home improvement financing, driving better outcomes for borrowers, lenders, contractors, and software vendors. Borrowers can shop for the best rates from the best lenders, all within a few seconds and fewer clicks. Lenders can reach more homeowners while testing the ideal rates for optimum engagement. Contractors can increase sales by offering financing to customers at no extra cost to themselves.

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Financial Management, Security and Compliance

Numerix Acquires PolyPaths, Expanding Market Expertise in Structured Finance & Fixed Income

PR Newswire | August 03, 2023

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 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. About Numerix Numerix is a leading provider of innovative capital markets technology solutions and real-time intelligence applications for trading and risk management. Numerix is dedicated to driving a more open, fintech-oriented, digital financial services market. Built upon a 20+ year analytical foundation of deep practical knowledge, experience and IT understanding, Numerix is uniquely positioned in the financial services ecosystem to help its users reimagine operations, modernize business processes and capture profitability. About PolyPaths PolyPaths was founded in 1996 to create a versatile, easy-to-use, fixed income analytics solution with uncompromising analytical rigor. Today, the company is a market leader in advanced solutions for fixed income analytics. Its platform leverages its founders' vast experience in high volume, sell-side systems and combines the modeling rigor and user control of a single sector trader with the universality of a general portfolio manager. The resulting system meets the diverse needs of multiple users in the front and mid-office of financial organizations including traders, hedge fund managers, portfolio managers, risk managers, research analysts and asset liability managers. About Genstar Genstar Capital is a leading private equity firm that has been actively investing in high-quality companies for over 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Together with Genstar XI and all active funds, Genstar currently has approximately $49 billion of assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrials, and software industries.

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