Appway raises $37M, its first-ever funding, for financial customer management tools

With the renewed push for more of the services we use everyday to be accessible online and in a non-physical way, a company out of Switzerland that builds tools for financial services companies to interact better with their customers via the web is today announcing a round of funding to expand its operations.

Appway, which provides software to help banks and others that transact with customers to build banking, mortgage, regulatory compliance and other service management tools, has raised $ 37 million in equity funding from a single investor, Summit Partners.

Hans Peter Wolf, Appway’s CEO who co-founded the company with Oliver Brupbacher, said in an interview that the money will go towards continued expansion of its business, both by adding more customers and by building more tools for those customers in turn to provide services to their own users. He added that North America has been one of Appway’s fastest-growing markets, and so the plan will be to double down specifically there alongside existing operations in Europe and Asia.

If you’ve not heard of Appway before in the world of tech, that’s not too unusual: the Zurich-based company has been quietly living, bootstrapped and profitable, behind the scenes and under the startup radar since 2003. But in the last 17 years, it’s managed to amass a long list of impressive customers — a list that features 10 out of 25 of the largest wealth managers in the world, including Credit Suisse, HSBC, J.P. Morgan, LGT, LPL Financial and Deutsche Bank; the telecoms giant Orange, KPMG and others.

The services that it provides range from online banking, mortgage software and wealth management, through to account management, onboarding of new services and customers, and a long list of back-office tools to manage customers and data to help the financial services companies comply with regulatory requirements.

Business has been strong, but the reason Appway finally decided to bite the bullet and raise money, Wolf said, was to ride the wave of growth, and bring in new people to the board who could help guide what the next steps might be as its business matures.

He noted that Appway has seen an acceleration of interest in recent months — predating the current health pandemic, he added, but absolutely sped up with urgency because of it — related to “business transformation.”

Yes, that’s a term thrown around a lot in the world of enterprise, but it’s actually an important one that is propelling a lot of business for disruptive startups: huge institutions have been using the same legacy systems for decades, and that creaky infrastructure finally is being replaced with more modern and flexible software, often sold as a service from the cloud, in order to expand what companies can do for their customers.

That’s where the current pandemic has figured in a key way for companies like Appway. A lot of financial services — especially those at the higher end of the market (eg wealth management) — have long existed around the concept of personal relationships and years of face-to-face service, but much of that has had to be reassessed in recent times. Some might have bristled at or resisted the changes (or investments in the changes) in the past, their hand has been forced, so to speak, in current circumstances.

But coupled with the fact that so many people today are more accustomed to carrying out much of their lives online, the changes are turning out to be, in many cases, not as painful as you might think, and in the case of financial services, we’re seeing a big turnaround and embracing of the new platforms. And that means strong business funnels for companies like Appway.

There are a number of companies providing tools to organisations to help build and run services online. Those in the same general area as Appway include Pega, Intalio, Oracle, IBM and more. One key difference is that many of these are general purpose, aiming their low-code approach to a number of verticals, which in one regard makes them potentially much bigger enterprises, but in another means they cannot speak as specifically to the needs of any particular vertical. Appway’s focus on financial services in particular — and of course the fact that financial services happens to be a hugely lucrative industry — is one thing that stood out for Summit when making the investment.

“Unlike general purpose low-code development platforms, Appway seeks to address core pain points in the financial services industry by automating the flow of work to revolutionize the customer experience and drive digital transformation across organizations,” said Dr. Matthias Allgaier, a Managing Director at Summit Partners who will also join the Appway Board of Directors, in a statement. “We believe the company has delivered impressive, consistent capital efficient growth, and we are thrilled to partner with Hans Peter Wolf, his co-founder Oliver Brupbacher and the entire Appway team.”

When you hear about companies like these, successful startups that have been off the grid of tech media because they haven’t been tightly linked to the investment cycle or any obvious consumer news stream, suddenly raising money, you have to wonder how many more there are innovating and doing more good work in the same way.

One reason Wolf said that Appway never raised money before was because when it was founded, it was just how things were.

“In 2003, venture capital and private equity didn’t exist at all in Switzerland, and I don’t think the country’s startups were on any radar of any PE house,” he said with a laugh. “Ironically, the financial crisis was when we had our first successes in the US,” partly because of its regulatory compliance tools, which were suddenly in demand. “Now, I would say it’s a steady pattern, Appway made the decision to raise growth equity during an arguably even bigger crisis.”

Indeed, as we continue to see more activity spread out beyond the most-obvious tech hubs, it may well be that yet more Appways fall under the spotlight.

Startups – TechCrunch

Digital ID verification gaining momentum in European fintech: Lithuanian startup Ondato secures funding

Lithuania-based know your customer (KYC) solutions provider Ondato develops remote KYC and compliance solutions that help in identifying private individuals and legal entities, review data registers and authenticate clients with the highest security and reliability requirements. In a latest news update, the startup has secured €450k pre-seed funding from Start-up Wise Guys accelerator fund.

Start-up Wise Guys fund is a part of the Acceleration Fund Programme, which is financed via the Business Finance Fund that in turn is financed by the European Regional Development Fund. The Business Finance Fund gets funding via EU funds based on the 2014-2020 EU fund investment action programme in the country.

Develops remote customer identification solutions

Founded by Liudas Kanapienis in 2016, Ondato offers services to traditional financial institutions and private fintech companies operating or interested in operating in cyberspace. This Lithuanian startup emphasises on money laundering and prevention, as well as developing its client authentication compliance management platform, which helps financial institutions and other organisations match more than 15 different requirements. This further manages client information and periodically checks it, creating reports and other processes necessary for financial institutions.

Ondato started offering KYC services since last year and has received applause for the same. It is now recognised as a leading fintech with high prospects. Back in 2019, it was recognised as the fintech of the year at the German-Lithuanian Business Awards and was among the Top 10 Scale Ups in Eastern Europe.

At the time of the COVID-19 pandemic, Ondato adapted the technologies it is developing to be used by insurance companies, the attorney segment and state institutions. Thereby, it helps them continue to provide their uninterrupted services during the tough situation.

Eyes development and expansion!

Ondato will use the fresh investment to contribute to greater technological development. Also, the company eyes to expand into Poland and Germany. Dmirtrij Sosunov, partner at the Startup Wise Guys accelerator fund stated that KTC solutions have already been a key part of all businesses. During the COVID-19 pandemic, the need to supply services in the electronic and identify one’s clients has gained further emphasis.

“The Startup Wise Guys accelerator fund will grant our startup the opportunity to grow even faster and expand into other countries. We are already one of the leading KYC platforms in the Baltic States, we are trusted and our services are already used by the largest banks such as Luminor, SEB, Swedbank, other financial and insurance companies and various startups,” said founder Kanapienis.

D. Sosunov said, “The decision to invest was based on the Ondato team, which has vast experience in the fintech domain and which does not limit itself to successfully operating in the Baltic States, seriously aiming for the global market. We see that Ondato is unafraid to innovate and offers its clients new products which resolve key and expensive problems related to client verification and compliance (KYC and AML)”.

Main image picture credits: Ondato

Stay tuned to Silicon Canals for more European technology news.

The post Digital ID verification gaining momentum in European fintech: Lithuanian startup Ondato secures funding appeared first on Silicon Canals .

Startups – Silicon Canals

[DailyPay in PR Newswire] DailyPay Joins The “Funding Our Future” Alliance

NEW YORK, May 20, 2020 /PRNewswire/ — DailyPay, the leading fintech platform and premier provider of the daily pay benefit, has joined forces with the Bipartisan Policy Center’s “Funding our Future” alliance of organizations dedicated to making a secure retirement possible for all Americans.

Read more here.

The post [DailyPay in PR Newswire] DailyPay Joins The “Funding Our Future” Alliance appeared first on OurCrowd.


Equity Monday: Tech’s stance on change, two funding rounds and fintech layoffs

Good morning and welcome back to TechCrunch’s Equity Monday, a brief jumpstart for your week.

A big thanks to start to the whole Equity crew for doing a stellar job last week with the show while I was on vacation, especially to Danny for taking on this particular installment of the podcast. Equity Monday is still pretty new, frankly, so him stepping up and into the role was a huge boon. Thanks, Danny.

Right, so, what did we talk about today?

  • In the face of outrageous police action and systemic racism, most of tech — both public and private, alike — said something or did something in the last few days. We go over some of the latest statements and pledges from the VC and startup world in the episode, but do take a look for yourself and decide if what’s been done and said is enough.
  • For more, read this.
  • Coming up this week: Zoom earnings. Zoom’s earnings report matters a bit more than a regular digest of three-months’ worth of corporate performance. The company is a key plank in the group of companies are have been buoyed by COVID-19 pandemic, meaning that investors that have made similar bets will have their eyes on the videochatting giant’s results. And, SaaS and cloud stocks are trading at all-time highs. If Zoom can turn in good numbers, that run might be able to continue.
  • Tia Health put together nearly $ 25 million for women-centric telehealth.
  • Beam, a micromobility startup headquartered in Singapore, raised $ 26 million.
  • And, finally, fintech layoffs. I was off last week but was a bit surprised at the number of fintech companies that were cutting staff. Why? Well, we have a guess or two on that count. (You can read more here, and here, from our own Natasha Mascarenhas for background).

Equity will be back Friday morning with more. Welcome to the week, and please help others as much as you can.

Equity drops every Monday at 7:00 AM PT and Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

Startups – TechCrunch