CORE BANKING,FINANCIAL MANAGEMENT
Atomic | August 24, 2022
Atomic, the market-leading provider for payroll connectivity, has been named the winner of the sixth annual FinTech Breakthrough Awards for "Best Banking Transaction Solution". This award comes on the heels of the company's $40 million Series B funding round, further validation of Atomic's cutting edge and consumer-friendly payroll solutions.
"This is an incredible milestone for our company and recognition of our team's hard work creating fairer financial services for all Americans, We are humbled to be acknowledged among technology leaders, partners and Atomic customers."
-Jordan Wright, Co-Founder and CEO of Atomic
Payroll represents a rich store of consumer data. Making it accessible and interoperable allows the potential to drive new, lower-cost financial products for customers. This improves the financial outcomes while providing financial institutions with new tools to reduce fraud, improve privacy and increase customer retention. Atomic's vision and solutions have been embraced by some of the most compelling and innovative neobanks and fintech platforms, reshaping an antiquated financial services landscape. These include Coinbase, Dave, Welcome Tech, and Propel, as well as more than 70 financial institutions and technology partners. Further, Atomic has experienced 100% customer retention since launching.
Atomic's vision is to enable wealth creation for consumers by building more on-ramps to financial services. The company is a member of the Financial Health Network, a nonprofit network of leading-edge financial services and financial technology providers committed to consumer-and-employee-focused financial health innovations. Atomic is also a member of the FIS Fintech Accelerator, in partnership with The Venture Center. The program brings bankers, subject matter experts and financial service executives together with pre-vetted, market-validated fintech companies to advance the financial services industry.
The FinTech Breakthrough Awards receive nominations from the best and brightest fintech companies across the globe. The ongoing goal is to deliver the most comprehensive analysis of the fintech industry each year, and with nearly 4,000 nominations, the industry evaluation was broad and extremely competitive for the 2022 program. Some of the winners from other categories include: Charles Schwab, Afterpay, Northwestern Mutual, Fiserv, MoonPay, FIS, S&P Global, Amount, Quicken, BNY Mellon, Mastercard, NCR, Blockdaemon, Guaranteed Rate, Bread, First Citizens Bank, Blockchain.com, Webull, Experian and an impressive list of top companies and startups in the larger fintech industry.
Atomic is the market-leading provider of payroll APIs, trusted by 12 of the largest fintech firms, including digital-first neobanks, alternative lenders, and digital brokerages, as well as more than 70 financial institutions and partners. Atomic's payroll integrations provide the infrastructure to connect consumers to their financial data for verification of income and employment, automating set-up and updating of direct deposits, repaying financial obligations from their paycheck, optimizing tax withholdings, and accessing earned but unpaid wages.
Atomic simplifies complicated payroll integrations with a single API that covers more than 450 unique payroll connections, including incumbent payroll providers, bespoke enterprise solutions, modern HR tech providers, gig-economy platforms and government systems. Atomic has raised $78.6 million from investors, including Mercato Partners Traverse, Greylock, Core Innovation Capital, Portage, and ATX Venture Partners.
Touchstone Investments | August 29, 2022
Touchstone Investments, known for its Distinctively Active® mutual funds, announced the launch of its fourth actively managed exchange traded fund (ETF), the Touchstone Ultra Short Income ETF. The ETFs mark the natural expansion of Touchstone's Distinctively Active investment philosophy through an ETF structure, providing shareholders with more investment options.
Each of the four ETFs has a corresponding Touchstone mutual fund that shares a similar core investment strategy. The four that have launched over the last few weeks are:
Touchstone Strategic Income Opportunities ETF: The expanded opportunity set of this multi-sector bond strategy provides the flexibility to invest effectively in a variety of different markets and is focused on providing a high and consistent level of income and total return.
Touchstone US Large Cap Focused ETF: This Fund seeks capital appreciation by investing in U.S.-listed equity securities that have a market capitalization at the time of purchase above $5 billion and focuses on investing in companies with reasonable valuations combined with distinctive barriers to entry in their respective markets.
Touchstone Dividend Select ETF: This Fund seeks a high level of current income and capital appreciation by investing primarily in a portfolio of dividend-paying, large-capitalization equities which have the potential to support reliable, growing dividends along with reasonable valuations.
Touchstone Ultra Short Income ETF: This Fund seeks maximum total return consistent with the preservation of capital by primarily investing in a diversified portfolio of investment grade fixed income securities; its portfolio is managed to maintain an effective duration of one year or less under normal market conditions.
Touchstone's ETFs have the potential to provide excess returns and complement most investment portfolios; seek to reduce unintended risks and offer the flexibility to capture upside potential and limit downside risk relative to an index; and provide the potential for a more tax-efficient, cost competitive and transparent way to access Touchstone investment strategies with no investment minimum.
Distinctively Active management has long been the hallmark of Touchstone's investment philosophy, so extending its Distinctively Active approach into ETFs is a natural expansion of Touchstone's core competencies. Touchstone's commitment to being Distinctively Active means executing a fully integrated and rigorous process for identifying and collaborating with best-in-class asset managers to sub-advise the firm's funds. The four new Touchstone ETFs are sub-advised by Fort Washington Investment Advisors, a long-time sub-advisor of the Touchstone Funds.
About Touchstone Investments
Touchstone's commitment to being Distinctively Active has purposeful intent. Recognizing that not all fund companies are created equal, we actively apply an integrated and rigorous approach for identifying and partnering with highly-skilled asset managers who act in a sub-advisory capacity. Their expertise, disciplined investment processes and employment of active management provide the differentiation required for robust portfolio construction. Touchstone offers a full breadth of investment options across styles and asset classes, including U.S. equity, international equity, income and multi-asset funds. The Touchstone Funds are advised by Touchstone Advisors, Inc., a registered investment adviser, and are distributed nationally through intermediaries including broker-dealers, registered investment advisers, institutions and others by Touchstone Securities, Inc., a registered broker-dealer and member FINRA/SIPC. Touchstone, Touchstone Funds and Touchstone Investments are federal service mark registrations and applications owned by IFS Financial Services, Inc. Touchstone Securities, Inc., Touchstone Advisors, Inc., and IFS Financial Services, Inc., are members of Western & Southern Financial Group.
About Fort Washington Investment Advisors
Fort Washington Investment Advisors, Inc. (Fort Washington) is a diversified asset management firm offering a wide range of investment solutions to a diverse set of clients and valued partners, including insurance companies, endowments, foundations, religious orders, not-for-profits, public employee retirement systems, Taft-Hartley entities, corporations operating in numerous industries, as well as individuals and families. The firm applies well-defined investment values across the diverse lineup of strategies that we offer covering asset classes and solutions within both public and private equity, cash and short duration fixed income, investment grade fixed income, asset-liability management, leveraged credit, multi-sector fixed income, private placements, private debt, midstream energy, securitized credit, and others.
About Western & Southern Financial Group
Founded in Cincinnati in 1888 as The Western and Southern Life Insurance Company, Western & Southern Financial Group, Inc., a Fortune 500 company, is the parent company of a group of diversified financial services businesses. Its assets owned ($66 billion) and managed ($35 billion) totaled $101 billion as of June 30, 2022. Western & Southern is one of the strongest life insurance groups in the world. Its seven life insurance subsidiaries (The Western and Southern Life Insurance Company, Western-Southern Life Assurance Company, Columbus Life Insurance Company, Gerber Life Insurance Company, Integrity Life Insurance Company, The Lafayette Life Insurance Company, and National Integrity Life Insurance Company) maintain very strong financial ratings. Other member companies include Eagle Realty Group, LLC; Fort Washington Investment Advisors, Inc.; IFS Financial Services, Inc.; Touchstone Advisors, Inc.; Touchstone Securities, Inc.; W&S Brokerage Services, Inc.; and W&S Financial Group Distributors, Inc. Western & Southern is the title sponsor of seven major community events every year, including the Western & Southern Open, a premier event in the U.S. Open Series played each August by the world's top-ranked professional male and female tennis players.
Argyle, Financial Data Exchange | July 07, 2022
Argyle, the leading employment data platform providing companies access to user permissioned employment records, announced today it has joined the industry standards body Financial Data Exchange (FDX). Through its FDX membership, Argyle will help shape industry standards for how banks and data aggregators format, authenticate, and transmit consumer payroll data. The use of payroll data—which encompasses all personal employment and income information—is gaining significant traction as an indispensable alternative to outdated verification processes, such as evaluating credit scores to determine credit worthiness. Real-time payroll data offers a more transparent scope of one’s ability to pay in order for banking and lending institutions to grant consumers access to necessary financial resources.
“As an FDX member, we have the unique opportunity to collaborate with other industry players to help define how payroll data is formatted, authenticated, and transmitted,” said Shmulik Fishman, CEO and founder of Argyle.
“As an FDX member, we have the unique opportunity to collaborate with other industry players to help define how payroll data is formatted, authenticated, and transmitted,” said Shmulik Fishman, CEO and founder of Argyle. “Employee payroll data is an incredibly rich source of information that can help workers secure housing, vehicles, loans, and valuable financial services—it’s crucial we come together as an industry to standardize on how this data is managed.”
The FDX is dedicated to connecting the ecosystems that make up the financial services industry to create a common, interoperable, and royalty-free standard for secure, user-permissioned financial data sharing. FDX memberships are open to organizations within the financial sector interested in contributing to the development, growth, and industry acceptance of the FDX API and other objectives through collaboration with FDX working groups and task forces. As a member, Argyle has the unique opportunity to work with other FDX participants to create the first standardized method of payroll data authentication and transmission.
“FDX and Argyle share an equally vested interest in standardizing the methodology of how critical data is transmitted in order to receive necessary financial services,” said Don Cardinal, managing director at FDX. “Our members help promote greater adoption of Open Finance and banking standards and drive significant industry growth through their contributions and collaboration with one another. We’re thrilled to have Argyle join us as a valued member of the FDX.”
In 2021, Argyle announced the creation of the Open Employment Data Standards (OEDS), an organization established to standardize how employment records are stored, accessed, and transferred. These records serve as a core foundation in American society and are used in renting an apartment, buying a car, purchasing a home, applying for a new job, receiving a loan, and more. OEDS aims to foster transparency and alignment of a data-set that institutions across the industry can rely on. Joining FDX in conjunction with OEDS furthers Argyle's stance as a thought leader in payroll data and Open Finance.
To learn more about Argyle, visit argyle.com.
Argyle is building the leading user-consent-based platform for employment data, helping people avoid situations where their personal information is sold or used without their consent or knowledge. With Argyle, any business can process income and work verifications, gain real-time transparency into earnings, as well as view and update worker profile details. By removing the barriers between a worker, the companies they make money from, and the business they buy services and products from, Argyle has reimagined how employment data can be leveraged to benefit both institutions and individuals.
About Financial Data Exchange
Financial Data Exchange, LLC is a non-profit organization operating in the US and Canada that is dedicated to unifying the financial industry around a common, interoperable, royalty-free standard for secure and convenient consumer and business access to their financial data. FDX empowers users through its commitment to the development, growth, and industry-wide adoption of the FDX API, according to the principles of control, access, transparency, traceability, and security. Membership is open to financial institutions, fintech companies, financial data aggregators, consumer advocacy groups, payment networks and other industry stakeholders. FDX is an independent subsidiary of FS-ISAC. For more information and to join, visit www.financialdataexchange.org.
Rev, Searchlight Capital and Netspend | August 08, 2022
Rêv Worldwide, Inc., an international fintech company, and Global Payments, a leading worldwide provider of payment technology and software solutions, announced that Rêv, in partnership with funds advised by Searchlight Capital Partners, L.P., has entered into a definitive agreement to acquire the Netspend consumer business from Global Payments in an all cash transaction valued at $1 billion. The acquisition brings back Netspend’s founders, Roy and Bertrand Sosa, who also founded Rêv. The Sosa brothers look to leverage the strategic assets of the two entities to build a global, high growth company that delivers on a mission of financial empowerment and product innovation.
For Searchlight, this transaction represents another exciting partnership with dynamic fintech entrepreneurs while also being able to support growth and innovation for consumer financial services to underserved markets. With this sale, Global Payments delivers on its commitment to divest itself from Netspend’s consumer business, allowing the company to focus on its core B2B operations and growth opportunities with Rêv as a partner.
Since the Sosas founded Netspend in 1999, the company’s consumer business has developed into a clear industry leader in the prepaid and debit card space serving millions of customers nationwide, processing hundreds of billions of dollars of cardholder purchases, and established the largest retail partner network with over 130,000 locations nationwide where consumers can load their prepaid and debit card products. Netspend’s consumer products are also available online via direct-to-consumer mobile and web channels.
“We’ve gone full circle, launching programs with partners around the globe in our journey to provide innovative financial services to underserved mass markets. We are very excited by the opportunity to partner with the Netspend consumer team and Searchlight as we deliver new products, expand into new markets and add more value to customers across the world,”
- Roy Sosa, Chairman and Chief Executive Officer, Rêv
Christopher Cruz, Partner, Searchlight, added “The characteristics of this investment are rare to find. Combining an industry leading operation in Netspend’s consumer business with modern platform technology and digitally native solutions from Rêv unlocks great growth potential by meeting the needs of a significant and sizable market. We look forward to partnering with Roy, Bertrand, and the Rêv team as they continue their mission to financially empower underserved consumers through fintech innovation.”
According to a recent industry report, the global market for Prepaid Cards, estimated at US$1.6 Trillion in the year 2020, is projected to reach US$2.7 Trillion by 2026, growing at a CAGR of 9.6% over the analysis period.
Leveraging its proprietary multi-currency payments and loyalty product platform, Rêv provides mobile-first payment solutions and offers banking-as-a-service capabilities for partners around the world, such as Etihad Airways, Itaú Private Bank, LATAM Airlines; as well as direct-to-consumer branded products owned and managed by Rêv, such as the recently launched X World Wallet currently available in the U.S.
For Bertrand Sosa, President of Rêv, “The market opportunity for Netspend’s consumer business has always been massive, as evidenced by the history of growth the company has experienced. Now we have a chance to expand upon it globally by leveraging unique synergies we bring along with our entrepreneurial spirit.”
The transaction is expected to close in the first quarter of 2023 subject to relevant regulatory approvals, and customary closing conditions.
Jefferies LLC is serving as lead financial advisor, and Nomura Securities International, Inc. is serving as financial advisor to Rêv. Paul, Weiss, Rifkind, Wharton & Garrison LLP is representing Searchlight, Gunderson Dettmer is advising Rêv.
Evercore is serving as financial advisor to Global Payments, and Wachtell, Lipton, Rosen & Katz is representing Global Payments in the transaction.
Rêv is a fintech company, founded by prepaid debit industry pioneers Roy and Bertrand Sosa, dedicated to delivering innovative payment experiences to consumers worldwide. Its solutions are powered by the company’s proprietary multi-currency and multi-language payments processing platform. With vast experience pioneering a number of payment industry firsts, Rêv is focused on the international banking & travel sectors. Rêv has partnered with companies across the globe to launch products in North America, Latin America, Europe, the Middle East, and Asia-Pacific.
Searchlight is a global private investment firm with over $10 billion in assets under management and offices in New York, London and Toronto. Searchlight seeks to invest in businesses where its long-term capital and strategic support accelerate value creation for all stakeholders.
Netspend is a leading provider of payments and financial solutions for consumers and businesses. From prepaid and debit card solutions to digital account and money movement services, Netspend has a broad suite of products and technologies that deliver exceptional experiences for its customers and business partners.
About Global Payments
Global Payments Inc. is a leading payments technology company delivering innovative software and services to customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world.
Headquartered in Georgia with approximately 25,000 team members worldwide, Global Payments is a Fortune 500® company and a member of the S&P 500 with worldwide reach spanning over 170 countries throughout North America, Europe, Asia Pacific and Latin America.