Fintech Highlights - 4/20/2021
👋 Thanks again for subscribing.
Apple's spring event happens today, and I'll be watching that. Hoping AirTags make the grade, finally!
Here's what's worth watching this week..... 👇
Pinned to the Top
Despite millions of dollars of investment each year in digital capabilities and features, many large financial services companies still aren't able to compete with small fintech's in offering delightful user experiences that help customers manage their finances.
In a recent Forbes article, Ron Shevlin outlines how banks need to partner with fintech companies to "embed" their capabilities into their apps, to offer smart experiences and to do it more quickly that they have traditionally been able to.
I'm not sure I'm aligned to this definition of embedded financial services, which initially has depicted the need to put financial tools into 3rd party platforms to create audience and engagement growth.
But, in any "marketplace" there are publishers. And for a bank to become one, to "embed" experience in their apps - is an interesting proposition for both the FI and the fintech community.
The BFD
Zeta, a banking startup, has inched closer to the much sought-after unicorn status as it engages with investors to finalize a new round of financing.
Why it's the BFD: Five-year-old Zeta helps banks launch modern retail and fintech products. The thesis is that banks — largely operating on antiquated technologies — today don’t have the time and expertise to offer the best experience to hundreds of millions of customers and fintech firms they serve. And the funding round and traction in Asia and other emerging markets show that the thesis may be correct.
Bottom line: Smaller, regional FI's don't have the dollars to invest in capabilities that their larger competitors have. And it's hurting their ability to court new customers who are using digital capabilities as a key point of consideration when evaluating the banks they want to work with. These platforms can help move the ball down the court, fast break style.
Fintechs
Credit monitoring and building platform Credit Karma has picked Bud's Open Banking stack to help its UK members find better financial products and make smart money decisions. More here ->
Following the lead of its parent PayPal, Venmo is set to start letting its 70 million users buy, hold and sell cryptocurrency directly within its app.Users can buy as little as $1 worth of Bitcoin, Ethereum, Litecoin and Bitcoin Cash from within the app using funds from the Venmo app or a linked bank account or debit card. More here ->
Digital mortgage lender Better.com has raised a $500 million round from Japanese investment conglomerate SoftBank that values the company at $6 billion. Better.com funded $14 billion in loan volume in the first quarter of 2021 alone and that it is currently funding over $4 billions in loans a month. For some context, Better.com funded $25 billion in loan volume in all of 2020. And, it currently has 6,000 employees — up 2,000 from last October. More here ->
Fintech platform TrueLayer secured $70 million in Series D funding to build an open banking network, a concept in which banks open up their application programming interfaces for third parties to develop new apps and services. More here ->
Insuretechs
Clearcover, a Chicago-based car insurance startup, raised $200 million in Series D funding at a valuation north of $1 billion, per Reuters. More here ->
The Zebra, an insurance comparison platform, closed a $150M Series D funding round. The Zebra was vaulted into unicorn status after doubling its revenue in 2020, with more than a $1B valuation. They have now raised over $255M to date. The Zebra started out as a site for people looking for auto insurance via its real-time quote comparison tool. The company partners with the top 10 auto insurance carriers in the U.S. Over time, it’s also “naturally” evolved to offer homeowners insurance with the goal of eventually branching out into renters and life insurance. More here ->
From the Stash
Global Venture Funding Hits All-Time Record High $125B In Q1 2021 – Crunchbase News — news.crunchbase.com
In the first quarter of 2021, global venture investments reached $125 billion, a 50 percent increase quarter over quarter and a whopping 94 percent increase year over year, Crunchbase data shows.
Orum Raises $21 Million To Speed Up Bank Payments From Five Days To One — www.forbes.com Orum, a 40-person New York startup backed by Bain Capital, is using machine learning to try to speed up $62 trillion a year in bank transfers.
101 Texas Based Fintech Companies | The Most Innovative Fintech Companies — www.fintech.coffee
Here's a great list of Texas based fintech's who are making their mark in the industry.
Reports / Webinars
How to build and maintain trust in digital financial services. — 11fs.com Trust needs to be a key consideration for financial services providers as they develop their products. This report sets out a framework to help with that.
Financial Services Summit — cloudonair.withgoogle.com Solving for the future of finance is no small feat. But with some of the brightest and bravest minds from the financial world, we can tackle the biggest challenges together. Hear executives and customers discuss new possibilities that can help accelerate your business. Join here: https://cloudonair.withgoogle.com/events/summit-finserv
Fintech Perspectives: The Hyper-Personalization of Banking — twitter.com
How the new infrastructure of finance is enabling a new generation of Digital Community banks. Register here ->
---
☑️ Thanks for reading. Please ask your friends, colleagues and teachers to sign up.
If you have any companies or news to share - use the form
AND - if we’re not already connected - let’s do it.