How FinTech Startups overtake traditional banks – 7 examples from the Innoloft network

Banking & Finance

Online-payments are becoming more and more critical for many businesses. In 2018, 6.4 billion transfers were made in Germany alone. And according to a Statista forecast, approximately 2.35 trillion euros will be realized worldwide in B2C e-commerce. The mostly old-fashioned, slow systems of many banks hinder these processes enormously. Disruptive FinTech Startups offer a faster, alternative approach.

In today’s increasingly fast-moving society, the focus shifts to more important things and complicated processes such as manual transfers or post-identification procedures don´t fit in the present time. With the new European directive “PSD2” further authentication steps have become necessary for security. The fast adaptation of important changes is the decisive argument for startups. This is one of the reasons why the fast registration, the simple handling and the innovative image of FinTech Services are so interesting especially for younger target groups. These required payment & authentication solutions are implemented by FinTech Startups as end-user-oriented solutions. We present you seven FinTech Startups from our innovationnework operating in these areas.


Seven FinTechs represented from the Innoloft network


TransferWise – Money without Borders


Conventional banks often lure customers with “free, cross-border transfers” and thus create the impression that they do not take any commissions for the currency transfer. However, if one looks at reality, one often does not see which exchange rate, which was usually chosen for the clear advantage of the bank, was used for the calculation. With more than 1,000 country combinations in 49 currencies and true medium exchange rates, TransferWise offers a business model that sounds too good to be true. The FinTech easily outperforms most banks in terms of transparency and performance. TransferWise takes low and above all completely transparent transfer fees and thus offers a real alternative when it comes to money transfers abroad.


AUTHADA – Simple authentication anytime and anywhere


Since 2010 the electronic identity card offers the possibility to verify oneself on the internet. This principle is also used by AUTHADA, which offers an authentication solution that enables simple verification via mobile phone. All the user has to do is hold his identity card on his mobile phone and the data is transmitted via NFC. For security reasons, the app requires the previously defined eID-pin of the ID card. A stand-alone, but also a white label option for implementation in both online and onsite applications makes the service suitable for adapting to many different applications. Thus the Startup would like to use the potential of the eID clearly more and replace it by the fast and flexible method Post-Ident and Skype-video-verification.


Bluecode – Digital Payments with no new account


Why do I need a new bank account with every mobile payment provider? The Austrian FinTech Bluecode also asked itself this question. The team has come up with a solution that makes it obsolete to have to use additional accounts and at the same time significantly speeds up the payment process at the checkout. Once registered and with the current account with direct debit authorization deposited, Bluecode offers payment by barcode. So-called Bluecode tokens are generated to make payments “scanable” directly on the mobile phone. With the implementation of certain customer cards and benefit systems, Bluecode also offers the advantage of not always having to carry all cards around with you. Bluecode cooperates with Alipay in a trans-European-Chinese alliance in order to establish itself as a counterweight to the American companies Google Pay and Apple Pay.


Tabbt – Time is money or money is (shared) time?


Whether it’s a barbecue, eating in a restaurant or tickets to the festival. It happens almost every day that colleagues, acquaintances and friends lend each other money when, for example, someone has no or not enough cash. In order to prevent annoying voucher collecting, the Tabbt-app offers an easy way to send money directly to other people. The transfer is usually received by the recipient after one business day. Tabbt is the first payment provider to pursue a so-called “zero knowledge” security concept, in which all sensitive data such as pin-codes or account numbers are not visible to the startup and enable the smartphone to communicate directly with the bank in encrypted form. Combined with the simple handling, this results in a free, fast and simple payment provider with the focus on making daily life of its customers much easier.


Adyen – Payment-technologies that suit every need


Adyen, which roughly means “start from scratch”, offers versatile payment-solutions for every need. The founders saw the possibility of a unified payment system for companies that have more than one sales channel and are easy to use. No matter whether directly in the shop, at the delivery service or mobile at the ride-sharing platform. Thanks to the anonymous evaluation provided, the startup not only offers the payment service, but also the possibility of analyzing the data to improve the sales processes. Thanks to the flexible design, the company has already secured well-known customers such as eBay, Spotify and Uber. In addition, Adyen also offers end user value through standardized payment options and a benefit system. In the long run Adyen tries to implement this standard as “Unified Commerce”.


IDnow – Verification by artificial intelligence


Hybrid identification solutions through the advantages of man and machine. This is how IDnow could be summarized in one sentence. The startup focuses on a mixture of machine learning and trained identity and fraud specialists in order to achieve enormous reliability with 99.95% correct identifications. Above all, IDnow can be used in areas such as finance, telecommunications and eCommerce with compliance with many security standards such as the DSGVO and continuous auditing. The end user, for example, only scans the image of an ID document with his smartphone and then his face, which is verified in seconds. This ease of use allows the startup not only to significantly improve the end user’s onboarding experience, but also to significantly improve the conversion rate.


Klarna – A payment a day keeps the trouble away


The Swedish based bank Klarna offers online shoppers all over the world the possibility to freely choose how they want to pay. Whether by invoice, in instalments or directly by bank transfer, the Startup offers the right payment model for every customer. With over one million transactions per day and 2500 employees, Klarna is already one of the heavyweights among FinTech companies. Through continuous development in all areas, Klarna is able to offer its customers an even better user experience. One-click payment options, push messages for due dates or pausing instalment payments are just a few of the numerous convenience functions for users. Klarna stands out from many of its competitors with its strengths in flexibility and excellent buyer protection.


Do you want to know more about the startups presented here or you are looking for further FinTech startups from our digital innovation network? Join for free or login to get free access to all the content of our database.

Fincite is the startup of the week 46: best-in-class wealthmanagement software

Banking & Finance, IT & ICT

If you have ever wanted to invest money, you probably know how complicated and time-consuming the whole process is. However, this is not only the case for customers, but also for financial institutes. To help the banks (and ultimately the customer), our startup of the week, Fincite, has developed a software solution that enables financial service providers to realize new models and innovations faster. We sat down with Christian Paulus, their Marketing Director, to learn more about Fincite, as well as their values and goals.


Hello Christian! Thank you for taking the time for this interview today. Let’s start right with our first question: How would you pitch Fincite?

In a world in which it is becoming more and more expensive for financial institutions to offer analogue investment advice and asset management, we enable banks, asset management companies and insurance companies to offer their customers digital or digitally supported, i.e. hybrid, services.

To do that, you developed your own software, right? What can the user do with this software?

Exactly. Our Fincite.CIOS software enables financial service providers to do three main things. All accounts, assets, investment objectives and restrictions can be recorded in a 360° profile. We then use this data to generate insights and impulses about the client for the bank.
In addition, the financial institution can create and manage highly individualized portfolios. These portfolios match to the preferences, objectives and constraints of the client, as well as the investment guidelines of the bank.

That sounds very extensive. What is the advantage of Fincite.CIOS over other software systems?

Our software enables financial service providers to quickly roll out new service models and innovations in the field of investment, to digitize them and to make them more customer-centric. Today, many financial institutions are unable to do this, because important steps are not supported by software or only take place in rigid legacy systems.

With Fincite.CIOS we cover a wide range of investment processes. This ranges from financial analysis and consulting to investment brokerage and asset management. For institutional clients, CIOS can even be used for fund construction.

We have thus developed the world’s first connected investment software that combines three previously isolated software systems of a financial service provider. These three software systems are financial homes, consulting processes and portfolio management systems. While the software of the financial home (i) is still new, there are many rather simple software solutions for consulting processes (ii). Often isolated from these systems, banks have their (iii) portfolio management systems. These often still come from a world where advisors and asset managers have placed more emphasis on the analysis of individual stocks than on the client.

This not only provides valuable information about customers, but also shortens most processes for financial service providers. What does your business model look like?

CIOS is a Software-as-a-Service (SaaS). In addition, we also offer our customers configuration services. This is done together with our partners.

You’ve already briefly touched on your target groups. Could you give us a more in-depth explanation of what your target market looks like?

Yeah, sure! On the one hand, our target groups are financial service providers, i.e. direct banks, financial product distributors, private banks and institutional asset managers.
On the other hand, i.e. the company level, they are usually managers responsible for sales or processes in the areas of consulting, securities, asset management, fund sales and so on.We concentrate mainly on the DACH, BENELUX and NORDICS markets.

Does this mean that you are now also internationally represented in the market? Any plans to develop your product any further?

Yes. We are already active in many European countries and our customers include major retail banks as well as renowned private banks and sales organisations. Our aim is to further expand internationalisation in Europe, while consistently increasing our market share in our home market of Germany.

On the product side, we have recently added the topic of sustainable investments to our software. The desire of many consumers for a sustainable lifestyle is increasingly reflected in their investments, which is why it was important for us to expand our software accordingly.

Christian, that brings us to the end of this interview. Thank you very much for your time and this interesting conversation! We hope to keep hearing a lot from you! Those who are interested in further information about you and your products can have a look at your Innoloft profile.