Bain Capital and Reverence Capital Partners have agreed a deal to take Envestnet Inc., a provider of wealth-management software, private.blo The buyout firms will pay $63.15 a share for Berwyn, Pennsylvania-based Envestnet, according to a statement on Thursday that confirmed an earlier Bloomberg News report. The offer values Envestnet at $3.5 billion on an equity basis […]
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Wealth-tech giant Envestnet is ramping up its investment in data and analytics to increase subscription-based revenue and create new products. The data and analytics business at Envestnet, which generates subscription-based revenues across open banking and alternative data offerings, generated revenue of $35 million in the first quarter, down 8% year over year, partly driven by […]
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Financial institutions are deploying investment technology in a bid to stop customers from withdrawing funds from their accounts and depositing them elsewhere. According to an October Fitch Ratings report, deposits for all United States banks dipped 2.4% between December 2022 and September 2023. U.S. Bancorp Investments and TD Wealth, for example, have doubled down on […]
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Payments behemoth Mastercard has joined forces with JPMorgan Chase to provide customers with a pay-by-bank option.
Pay-by-bank can be used by billers for recurring payments like rent, utilities, health care and tuition, among others, according to an Oct. 20 Mastercard release.
The capability taps into Mastercard’s open banking technology to allow consumers and businesses to safely share their data to easily access a variety of financial services, a Mastercard spokesperson told Bank Automation News.
Telecom service provider Verizon will be the first to use this payment channel for its customers, according to the release, and Mastercard expects more billers to join the payment channel in the coming months.
The card giant is not the only FI getting into pay-by-bank; Bank of America is also exploring expanding its pay-by-bank offering in the United States, although it is already available in the United Kingdom.
JPMorgan Payments has selected identify verification platform Trulioo to help crack down on fraud and other financial crimes.
Vancouver, Canada-based Trulioo will provide JPMorgan with its Person Match and Identity Document Verification solutions to verify a person’s identity and provide business verification, according to a recent JPMorgan release.
“We chose the platform because of its breadth of personally identifiable data sources, impressive match rates and global footprint,” Ryan Schmiedl, managing director and global head of payments trust and safety at JPMorgan, said in the release. “Trulioo has the trusted authentication and verification experience we want to offer clients and additional layers of protection from fraud during the onboarding experience and beyond.”
Trulioo uses data points from 190 countries, including personally identifiable information, government documents, biometrics and business names in order to verify users for its bank customers, Trulioo Chief Product Officer Michael Ramsbacker told BAN.
Machine learning is utilized by the identity verification company’s platform for document auto-capture and AI-driven face detection.
Trulioo raised $394 million in series D round in June 2021 for a $1.75 billion valuation. AmEx Ventures, Citi Ventures and Blumberg Capital participated in the funding round.
Mastercard selected the cross-border payments company Remitly to provide customers with more options to make remittance payments.
Customers can use Mastercard Send, a payment solution by Mastercard, to add their debit card as a payment option on the Remitly app, and receivers of the payment can access their money through multiple channels including mobile wallets, direct deposit or cash pickups, an Oct. 19 Mastercard release stated.
Last October, Remitly teamed with Visa to provide real-time payment options for Canadian customers to send payments to 100 countries using Visa Direct.
Wealthtech giant Envestnet is teaming up with four fintechs:
Envestnet Data & Analytics will provide secure account linking, open banking and multichannel payment rails to provide more financial wealth management tools to customers, according to an Oct. 24 Envestnet release. The wealthtech company will also provide the fintechs with financial datasets to help them provide better financial advice to their customers.
“Data has the power to harmonize and connect all parts of a person’s financial life so that their daily monetary decisions support their long-term goals,” Farouk Ferchichi, group president at Envestnet Data & Analytics, said in the release.
Visit Bank Automation News’ Transactions Database, which lists the technology selected or acquired by companies in the financial services industry, with a specific focus on technology that enhances automation.
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Financial institutions can look to data to create hyper-personalized experiences within back- and front-end operations — if they prioritize data and analytic literacy throughout their institutions.
In creating a hyper-personalized experience, banks must lay a “foundation of culture change around data, machine learning, artificial intelligence and machine learning literacy,” Farouk Ferchichi, president of data and analytics provider Envestnet, tells Bank Automation News in this episode of “The Buzz” podcast.
Through data and analytics, machine learning and AI, banks can benefit from improved risk management for decisioning, fraud detection and anti-money laundering capabilities, he said. Additionally, clients benefit from a personalized experience based on their needs.
Listen as Envestnet’s Ferchichi discusses how financial institutions can harness data to create efficiencies in front- and back-end operations.
The following is a transcript generated by AI technology that has been lightly edited but still contains errors.
Farouk Ferchichi 1:29
Yeah, I mean, investment generally has had a lot of new things going on. And particularly here in the investment DNA line of business, a lot has happened over the past 18 months. For example, in wealth management. We we launched our wealth data platform, or as our clients know it as w DP. And the focus there has been on driving and measuring growth for our clients and their end clients that are investors. In the banking, retail banking space, we have a lot going on, we moved from a pure aggregation to a leading open banking and alternative data value providers. We invested more in the AI and machine learning and data and AI governance, in addition to kind of grow in our open banking footprint here in North America and abroad. And as a result, we were able to launch kind of a new alternative data solutions. We were actually our alternative credit, credit data solutions, our small business solution, and continue to kind of improve our customer facing digital experiences, taking kind of PFM, or the personal financial management experiences to the next level growing from what is used to be just a money discovery tool, to more of a planning and execution of your money management experiences, like tokenization, for verification and identity check, goal setting savings, and subscription management to name few, of course, all of powered by our unique set of alternative data, database, as well as the analytical capability we have behind.
Whitney McDonald 3:14
Now with these recent launches in mind and new products in mind. And of course, being in the business of data. I’d love to start things off by talking about really just the importance of harnessing data and analytics for financial institutions. Can you talk us through that?
Farouk Ferchichi 3:29
Yes, Whitney. When you think about this, going to generally speaking about the socio political and economic challenges that are facing us in the world. Financial institutions are obviously not immune, and are seeking a stable business that can overcome these headwinds, and the way they do that is balancing the risk management side of the business and the growth side of the business. And more importantly, in these days with a finite number of resources available to them. So as such, we see the the weight and the importance put into harnessing the power of data is essential. It is a great tool, especially these days to enable automation and productivity on one hand, enabling faster and cheaper development and augmentation of risk management processes, while enabling at the same time, deeper sales and product and marketing, segmentation. Enabling them truly to differentiate product offering with a higher degree of targeting.
Whitney McDonald 4:53
Now getting into the how behind that, really, how can FIS approach this stuff? Energy of harnessing data, and maybe you can talk through where the technology element comes in. Yeah,
Farouk Ferchichi 5:07
as we listen as we constantly are listening and talking to our clients and at the same time finding ways to respond and serve their needs, we see data, AI, and technology harness in delivering, particularly the hyper personalized services to the employees in the back office, to do their job better and of course, the front office to their clients to achieve their financial needs. Focusing on the employee and the back office, we see it in risk management improvements of existing like credit risk management processes for decisioning. Around 40, decision a credit decisioning, loss forecasting or even collection, as well as in the operation risk management processes side automation, we spend improvement and augmentation, we see it in that including like fraud detection, security monitoring, as well as augmenting anti money laundering capabilities. We see also an emerging an emergence at scale of deploying data and AI in the product planning aspect, understanding the lifetime needs of existing clients and build that personalized roadmap of what and when a given a product can be offered at what price to a given customer. We also see marketing segments become segmentation becoming more refined, allowing the organization frankly to meet the needs of their clients in a more hyper personalized way. And again, hyper personalized not to fall but at the right time, using the right omni channel that is preferred by the clients. But But honestly, Whitney for this data, AI and analytics harnessing to be deployed effectively. We see companies who are the most effective at this have laid the foundation of a cultural change around quote unquote, data and artificial and machine learning artificial intelligence and machine learning literacy. The second area where we see is laying the foundation of data governance as well as model governance processes, and then data and AI infrastructure, preferably in the cloud. When you have these type of technical prerequisites, I like to say, they will enable a faster and more effective and efficient deployment of the data AI and technology combined. Obviously, we preach this to our clients all the time, different clients and advisors at different stages of their maturities. But all three areas are our areas we are actively consulting at no additional cost to our clients because for them to take the to get the most return that to achieve the most return from our products and services. We work with them in laying that prerequisite foundation.
Whitney McDonald 8:43
Now speaking of that foundation, and I know you touched a little bit on some of the areas where you can see the benefits coming through the back end, the front end, maybe we could dive a little bit deeper into some of those benefits that a financial institution might see from leveraging their data and analytics.
Farouk Ferchichi 9:02
Yeah, absolutely. We do. We do believe the benefit to end consumers or clients is access to the promise of open finance powered by open banking. And that promise needs to be featured with this hyper personalized product options that they have access to that they don’t today at a competitive price at the right time. On the flip side, for the financial institution, the benefits are to grow and be more productive. And when I say grow, I mean via higher client retention, and more holistic kind of lifetime relationship and value from from the customers they managed today. Above and beyond. They’re onboarding new clients and prospects. And then when I say productivity, I mean the ability to scale and differentiate back office processes around product management, servicing and marketing plans and strategies at a lower cost.
Whitney McDonald 10:07
Now wondering if you can discuss or give an example of a bank or client that’s doing this? Well, what data has brought to a certain financial institution or client? May we talk through what some of those time savings, or monetary savings might look like?
Farouk Ferchichi 10:29
Yeah, absolutely. This is one of my favorite topics with me because, well, while whether internally within our organization, or more importantly, with our clients, we like to talk a lot about value captured. Because we as a business to business to the end client kind of provider, we want our, we want to make sure that our products and services are adding measurable value. And without naming names. As you know, many of our clients are using our open banking and value add data, AI and digital technology services. And I want to share with you a couple, a couple of examples, one of our one from one of our large ePHI clients, where the customer retention across multiple product line and segments has improved incrementally because customer considering another firm, maintain their accounts and respective fee revenue. For the composite organization or this organization, I’m talking about the total risk adjusted operating profit increased due to this improved client retention, believe it or not by 24 million over a three year period of time. And then another client of ours who’s a little bit smaller mid size, regional FYI client, increase their wallet chair. And that’s due to more efficient reliable aggregation of financial data of their customer and supporting behind the scenes, the intelligence and the analytical services that we provide customers account managers get increased visibility into the assets, they do not actively managed with their client, which allow them to put the programs together to compare services of external assets and design internally products and solution to bring those assets in house leading to fundamentally an increase in revenue to the new due to the new asset and their management, the composite three year risk adjusted, which is the value metric that we use with our clients and confidence, profit increase for this FY with the effect of this wallet share program to a total of $15 million.
Whitney McDonald 12:58
Yeah, when you put it into those quantifiable measures, and I know that you said of course there’s the value capture and value add it really the the times the money savings, the time savings at all, it all adds up. And that’s exactly what you guys are working toward anything that we didn’t hit on that you wanted to be sure to. Yeah.
Farouk Ferchichi 13:25
If I may, I know everyone speaks about Chad GPT, and AI and generative AI and all of that. And a couple things I’d like to share are three things one, it is reality, you cannot run from it, it is coming. We invest in it in general and DNA. In particular data analytics line of business in particular, we’ve been using generative AI for years right now. It is our core IP behind the scenes, we just didn’t advertise it because it was not something that people talk about. It’s too technical. But we do now, the second thing I would say the best application that we see and we invest in it of how to implement charge GPT it is going to be on the back office to gain back credibility with the employees with the organization. It will be focused on automation creating content at scale, and so on. And then finally, I would say for charge GPT to be accepted and rollout at scale that has to be a deliberate effort around AI literacy as well as AI governance and openly discussing the AI ethics and The Good, the Bad and the audio that comes with it.
Whitney McDonald 14:52
You’ve been listening to the buzz a bank automation news podcast please follow us on LinkedIn and as a reminder, you can rate this podcast on Your platform of choice thank you for your time and be sure to visit us at Bank automation news.com For more automation news
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Financial institutions can look to data to create hyper-personalized experiences within back- and front-end operations — if they prioritize data and analytic literacy throughout their institutions.
In creating a hyper-personalized experience, banks must lay a “foundation of culture change around data, machine learning, artificial intelligence and machine learning literacy,” Farouk Ferchichi, group president of wealthtech giant Envestnet Data & Analytics, tells Bank Automation News in this episode of “The Buzz” podcast.
Through data and analytics, machine learning and AI, banks can benefit from improved risk management for decisioning, fraud detection and anti-money laundering capabilities, he said. Additionally, clients benefit from a personalized experience based on their needs.
Listen as Envestnet’s Ferchichi discusses how financial institutions can harness data to create efficiencies in front- and back-end operations.
The following is a transcript generated by AI technology that has been lightly edited but still contains errors.
Whitney McDonald 4:53
Now getting into the how behind that, really, how can FIS approach this stuff? Energy of harnessing data, and maybe you can talk through where the technology element comes in. Yeah,
Farouk Ferchichi 5:07
as we listen as we constantly are listening and talking to our clients and at the same time finding ways to respond and serve their needs, we see data, AI, and technology harness in delivering, particularly the hyper personalized services to the employees in the back office, to do their job better and of course, the front office to their clients to achieve their financial needs. Focusing on the employee and the back office, we see it in risk management improvements of existing like credit risk management processes for decisioning. Around 40, decision a credit decisioning, loss forecasting or even collection, as well as in the operation risk management processes side automation, we spend improvement and augmentation, we see it in that including like fraud detection, security monitoring, as well as augmenting anti money laundering capabilities. We see also an emerging an emergence at scale of deploying data and AI in the product planning aspect, understanding the lifetime needs of existing clients and build that personalized roadmap of what and when a given a product can be offered at what price to a given customer. We also see marketing segments become segmentation becoming more refined, allowing the organization frankly to meet the needs of their clients in a more hyper personalized way. And again, hyper personalized not to fall but at the right time, using the right omni channel that is preferred by the clients. But But honestly, Whitney for this data, AI and analytics harnessing to be deployed effectively. We see companies who are the most effective at this have laid the foundation of a cultural change around quote unquote, data and artificial and machine learning artificial intelligence and machine learning literacy. The second area where we see is laying the foundation of data governance as well as model governance processes, and then data and AI infrastructure, preferably in the cloud. When you have these type of technical prerequisites, I like to say, they will enable a faster and more effective and efficient deployment of the data AI and technology combined. Obviously, we preach this to our clients all the time, different clients and advisors at different stages of their maturities. But all three areas are our areas we are actively consulting at no additional cost to our clients because for them to take the to get the most return that to achieve the most return from our products and services. We work with them in laying that prerequisite foundation.
Whitney McDonald 8:43
Now speaking of that foundation, and I know you touched a little bit on some of the areas where you can see the benefits coming through the back end, the front end, maybe we could dive a little bit deeper into some of those benefits that a financial institution might see from leveraging their data and analytics.
Farouk Ferchichi 9:02
Yeah, absolutely. We do. We do believe the benefit to end consumers or clients is access to the promise of open finance powered by open banking. And that promise needs to be featured with this hyper personalized product options that they have access to that they don’t today at a competitive price at the right time. On the flip side, for the financial institution, the benefits are to grow and be more productive. And when I say grow, I mean via higher client retention, and more holistic kind of lifetime relationship and value from from the customers they managed today. Above and beyond. They’re onboarding new clients and prospects. And then when I say productivity, I mean the ability to scale and differentiate back office processes around product management, servicing and marketing plans and strategies at a lower cost.
Whitney McDonald 10:07
Now wondering if you can discuss or give an example of a bank or client that’s doing this? Well, what data has brought to a certain financial institution or client? May we talk through what some of those time savings, or monetary savings might look like?
Farouk Ferchichi 10:29
Yeah, absolutely. This is one of my favorite topics with me because, well, while whether internally within our organization, or more importantly, with our clients, we like to talk a lot about value captured. Because we as a business to business to the end client kind of provider, we want our, we want to make sure that our products and services are adding measurable value. And without naming names. As you know, many of our clients are using our open banking and value add data, AI and digital technology services. And I want to share with you a couple, a couple of examples, one of our one from one of our large ePHI clients, where the customer retention across multiple product line and segments has improved incrementally because customer considering another firm, maintain their accounts and respective fee revenue. For the composite organization or this organization, I’m talking about the total risk adjusted operating profit increased due to this improved client retention, believe it or not by 24 million over a three year period of time. And then another client of ours who’s a little bit smaller mid size, regional FYI client, increase their wallet chair. And that’s due to more efficient reliable aggregation of financial data of their customer and supporting behind the scenes, the intelligence and the analytical services that we provide customers account managers get increased visibility into the assets, they do not actively managed with their client, which allow them to put the programs together to compare services of external assets and design internally products and solution to bring those assets in house leading to fundamentally an increase in revenue to the new due to the new asset and their management, the composite three year risk adjusted, which is the value metric that we use with our clients and confidence, profit increase for this FY with the effect of this wallet share program to a total of $15 million.
Whitney McDonald 12:58
Yeah, when you put it into those quantifiable measures, and I know that you said of course there’s the value capture and value add it really the the times the money savings, the time savings at all, it all adds up. And that’s exactly what you guys are working toward anything that we didn’t hit on that you wanted to be sure to. Yeah.
Farouk Ferchichi 13:25
If I may, I know everyone speaks about Chad GPT, and AI and generative AI and all of that. And a couple things I’d like to share are three things one, it is reality, you cannot run from it, it is coming. We invest in it in general and DNA. In particular data analytics line of business in particular, we’ve been using generative AI for years right now. It is our core IP behind the scenes, we just didn’t advertise it because it was not something that people talk about. It’s too technical. But we do now, the second thing I would say the best application that we see and we invest in it of how to implement charge GPT it is going to be on the back office to gain back credibility with the employees with the organization. It will be focused on automation creating content at scale, and so on. And then finally, I would say for charge GPT to be accepted and rollout at scale that has to be a deliberate effort around AI literacy as well as AI governance and openly discussing the AI ethics and The Good, the Bad and the audio that comes with it.
Whitney McDonald 14:52
You’ve been listening to the buzz a bank automation news podcast please follow us on LinkedIn and as a reminder, you can rate this podcast on Your platform of choice thank you for your time and be sure to visit us at Bank automation news.com For more automation news
Whitney McDonald
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Brian Stone
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Envestnet is rushing to release a product Monday that is designed to help financial institutions avoid a “Silicon Valley Bank situation.” The wealth tech giant’s new Bank Deposit Index will allow bank treasury executives to track inflows or outflows of deposits and segment them by “big, regional or small banks,” as well as consumer segments […]
Brian Stone
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Envestnet focused on expense management and leaning on core investments in the fourth quarter to keep up with economic uncertainty and decreased revenue. THE BIG PICTURE: In Q4, the wealth-tech giant invested in its platform to enhance efficiency, Chief Executive Bill Crager said during the company’s Q4 earnings call Thursday. “We streamlined the business to […]
Whitney McDonald
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Financial institutions looking to modernize their internal systems in 2022 have often turned to fintech acquisitions or partnerships for cloud computing, digital banking, robotic process automation, payments capabilities and more. Here are Bank Automation News’ five most-read transaction stories of 2022: 1. Envestnet acquires business intelligence firm Truelytics Wealth management giant Envestnet acquired business intelligence […]
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