FINXACT LLC
JACKSONVILLE, FLORIDA

About Finxact The design of those core systems could not have contemplated the world we live in today and technology prevented them from being future-proofed. Today, with the lessons we’ve learned, and the technologies available, we are building a new cloud banking solution for today’s digital world – and a tomorrow we cannot contemplate. Our mission is to free banks from the burdens of their systems so they can rethink their bank, for a future they see, a future that is not constrained by technology. Our freedom from having legacy products, revenue streams, public shareholders, and everything else, means that you are free to innovate and rethink your bank. Our freedom is your freedom. Our freedom from having legacy products, revenue streams, public shareholders, and everything else, means that you are free to innovate and rethink your bank. Our freedom is your freedom. The offering is in essence a network of banks. Some institutions called "client banks" may want to shed excess liquidity from their books in this era of negative interest rates from the European Central Bank (ECB) where a proportion has to be kept, costing them money. Other "product banks" on the network will want to attract retail customers to their high-interest savings accounts or other products. The agent in between can be Deposit Solutions. The fintech takes advantage of a European regulatory drive for open banking and data and the freeing up of application programming interfaces (APIs) so that newcomers can enter the banking market as data providers, challengers or other players. is an ING-backed retail banking competitor, which is focused more on customer acquisition. It too hopes to take advantage of these new open banking and data API-led rules that threaten to revolutionize the sector. Deposit Solutions owns a similar business-to-consumer (B2C) ZinsPilot retail brand that will compete with Yolt. This year ZinsPilot surpassed 2 billion euros in savings deposits transmitted. Clients for its core business-to-business (B2B) bank network platform include Deutsche Bank; FFB, a subsidiary of Fidelity International; and Close Brothers. Ripple started out as a payment protocol offering retail payment, foreign exchange (FX) and other end uses, but wants to grow effectively into a global network that can serve corporates, banks and others that need to transfer money globally. It uses blockchain technology, which is best described as a distributed ledger secured by mathematical algorithms that provides a record of events for multiple parties. Applications are numerous for the still evolving technology but include settlement, data storage for insurance claims, diamond authentication purposes, trade finance and payments. The ledger can be public, open source and available to all, as per the original (BTC) cypto-currency ledger, or it can be a private "permissioned" chain that enforces standards and vets and manages invited participants. Next Insurance is another insurtech that might end up competing with Lemonade and Trov (see previous slides) but for now is focusing on the small-to-medium business audience instead. It provides tailored, personalized policies based on an easy-to-use online or mobile customer interface that prioritizes a good user experience (UX). This is enhanced by predictive capabilities that utilize "big data" analytics, AI and other technology to target policies, prices, automation and service. The combination of good UX and technology, in order to garner customers and data that incumbents do not possess the systems to gather, allied to insurance partners to actually deliver the policies, is what investors are betting will bring volume to insurtech firms such as Next. Finxact Solutions (Florida, US) An outlier that is still in the early stages of seed funding having raised $12 million in May this year is Finxact. But it is worth including the enterprise cloud-based core banking system provider here as one to possibly watch in the future due to the experience of its founders and backers. It may scale up to match the other larger fintechs listed previously. Finxact CEO, Frank Sanchez (pictured), and his brother are ex-owners of Sanchez Computer Associates which was sold to FIS in 2004, where they subsequently went on to work, after they sold them their Profile core banking software. The pair also developed real-time software for banks in the 1990s, which may be useful as the U.S. at last moves towards a real-time fast payment infrastructure. Finxact is designed to run as a cloud computing accessed service, hosted on Amazon Web Services (AWS). It's effectively a way of outsourcing the software to track, update and maintain checking accounts across multiple channels, potentially saving money for established mid-level banks and installation time for new challenger banks that want to get to market quickly. Both types of customer could benefit from enhanced IT flexibility as the core is built around a set of open application programming interfaces (APIs) that mean fintech specialist suppliers of mobile banking, risk management or other solutions can easily link to the system. Funding so far has come from angel investors and Live Oak Ventures for the Jacksonville, FL headquartered firm. Rivals include Germany's Mambu, which also offers a Software-as-a-Service (SaaS) cloud-based alternative system, and counts the OakNorth challenger bank in the U.K. as a user. The second outlier is at the opposite end of the spectrum as it is huge with a valuation at the turn of the year of $60 billion and predictions of triple figures by year end. Ant Financial, formerly known as Alipay, is an affiliate company of the Chinese Alibaba e-commerce Group headed by Jack Ma (pictured) that is similar to eBay and its old "killer app" friend PayPal. Ant's affiliates provide payment, wealth management, credit reporting, private bank and cloud computing services. Alipay, still a brand, is now the world's largest mobile and online payments platform and Yu'e Bao claims to be the world's largest money-market fund, with the Zhima Credit rating system enjoying a similarly dominant position in China.