May 6, 2021

NXTsoft: Connecting fintechs to US FSIs through APIs

API
Fintech
Cybersecurity
NXTsoft
William Girling
3 min
Randy Goggans, Partner, describes how NXTsoft is bridging the gap between fintechs and US-based financial institutions with API technology
Randy Goggans, Partner, describes how NXTsoft is bridging the gap between fintechs and US-based financial institutions with API technology...

Founded in 2016 and based in Birmingham, Alabama, NXTsoft has established itself as a crucial partner for financial institutions, banks, and credit unions alike. Stating that it is “serious about data done right”, the company brings together security and connectivity using cutting-edge technology, such as APIs.

At a time when financial service institutions (FSIs) globally are seeking ways to maximise their profitability and enhance revenue opportunities, entering the US banking market can be a lucrative move. However, Goggans explains, it can be a difficult market to negotiate alone.

“Our market is very different from the one in Europe, for instance. The US has over 10,000 institutions that primarily outsource all of their operations and transactions, as opposed to keeping them in-house.” Furthermore, prospective companies are likely to encounter challenges entering a relationship-based sales market, something the team at NXTsoft, with a client portfolio of 1,500 bank and credit union customers, has managed to accrue over a number of years.

Enhancing data sharing

This isn’t the only obstacle; finding a way to adequately connect data between parties is also a significant challenge. However, it’s a problem that NXTsoft’s software platform was designed to solve. “We give the banks the ability to connect their data to any third-party fintech solution because we've already got pre-established connections to all the core systems in the US,” says Goggans. “When a bank buys a product, they hire NXTsoft to step in and take the data from their core system and map it to the fintech solution that they have purchased.”

The company achieves this through API offerings like OmniConnect, which guarantees security as well as enhanced connectivity. “We're able to only get the fields necessary to run the application, and we don't host or store any data. In the US, this gives a financial institution the ability to buy any product and not worry about connectivity issues with a third-party, as NXTsoft has already connected to all the underlying core systems.”

Essentially, NXTsoft can perform all the “heavy lifting” for its partners; simultaneously allowing banks to “buy from anyone” and fintechs to “sell to anyone.” It does so effectively and - most importantly - much faster than legacy processes would have allowed (i.e. weeks instead of months). 

Cybersecurity and culture

In addition to its APIs, NXTsoft also has a myriad of security solutions for both finance and non-finance customers. Its flagship solution in this area is ThreatAdvice vCISO or ‘Virtual Chief Information Security Officer.’ 

“Cybersecurity is a big issue right now, and we’ve got around 2,500 security clients ranging from government to healthcare,” states Goggans. “A lot of companies have realised they need a CISO, but many don't have the resources to hire that person. So NXTsoft is providing a 24/7 virtual equivalent that’s able to identify and respond to threats quickly, therefore saving money and potential damage.”

Recognising that an organisation’s culture is usually just as important as technology when it comes to protection, Goggans adds that ThreatAdvice Educate by NXTsoft also offers 200 “micro classes” - short cybersecurity-based videos - to educate employees appropriately.

Finance’s digital transformation means that the old boundaries and restrictions to entry are no longer as restrictive as they used to be. NXTsoft is equipped to tackle the pain points of fintechs external to the US and knows how to drive success, whether buying or selling.

“We're looking for fintech partners, both international and domestic, that are seeking to take the burden of connectivity away,” concludes Goggans. “If your aim is success in the US finance market, I would say we’re the perfect fit.”

Image source: NXTsoft

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Jun 25, 2021

Findexable: COVID-19 hasn’t slowed down fintech investment

Fintech
Findexable
Mambu
COVID19
3 min
The release of Findexable’s 2021 Global Fintech Rankings report seems to confirm that the COVID-19 pandemic has had no deleterious effect on sector growth

The release of Findexable’s 2021 Global Fintech Rankings report seems to confirm that the COVID-19 pandemic has had no deleterious effect on sector growth.

Compiled annually, Findexable’s report provides one of the most comprehensive surveys of global fintech. From regions to countries and individual cities, it compiles and analyses key performance data and gives insight into the leaders and up-and-comers. 

In total, the company explored 264 cities across 83 countries and incorporated data from various media outlets, SEO databases, and over 60 fintech associations. CEO Simon Hardie spoke enthusiastically of the findings: 

“The level of investment and activity in the fintech sector is hugely gratifying for those of us who have been championing the industry. It is especially good to see that the pandemic didn’t slow down, and may have in fact accelerated, the adoption of fintech in parts of the world that have previously been underserved.”

The leading hubs

Notably, there has been no movement in the 2021 list’s top three fintech hubs. While most others made incremental gains, it was Tel Aviv that made the most significant leap from 20th to 5th. Meanwhile, in a surprising shift, Singapore slipped from 4th to 10th:

  1. San Francisco Bay (same as 2020)
  2. London (same as 2020)
  3. New York (same as 2020)
  4. São Paulo (+1)
  5. Tel Aviv Area (+15)
  6. Berlin (+3)
  7. Boston (+1)
  8. Los Angeles (-2)
  9. Hong Kong (+2)
  10. Singapore (-6)

The leading countries

Findexable’s top 10 countries for fintech reflect the generally incremental shift observed among the hubs:

  1. US (same as 2020)
  2. UK (same as 2020)
  3. Israel (+9)
  4. Singapore (-1)
  5. Switzerland (same as 2020)
  6. Australia (+2)
  7. Sweden (same as 2020)
  8. The Netherlands (-2)
  9. Germany (+3)
  10. Lithuania (-6)

UK fintech has continued to ramp up at an accelerated pace: three new cities entered Findexable’s index for the first time, bringing the country’s total up to 13. The country remains fairly secure as Europe’s fintech leader, particularly as strong competitors like Lithuania fell in the rankings. However, Germany’s ascendance to the top 10 could indicate the beginning of a new challenger. 

In North America, the US remains practically unchallenged by Canada. Meanwhile, both Australia and China have gained on Singapore, with the former seeming to be a likely APAC leader by 2022 if current trends continue. 

As can be observed from the top countries and hubs, Israel’s fintech output has been proportionally one of the most impressive exhibited. It has claimed the top spot for MEA, followed by the UAE and Kenya - both of which also made significant gains. Finally, Brazil and Uruguay lead Latin America and the Caribbean.

Fintech: The global revolution

Reviewing the statistics compiled in Findexable’s report lends credence to Hardie’s words: fintech is greater than ever before and not even one of the world’s most disruptive events (COVID-19) has been able to prevent its growth.

Elliott Limb, Chief Customer Officer of Mambu, which sponsored the report, called every fintech part of a “global revolution” that is transforming financial services for the better.

“They are changing the way we save, spend, borrow, and invest money. Whether competing, cooperating or supporting traditional financial institutions, they are reshaping digital services for a real-time, on-demand world.

“Whether it is an aspiring unicorn, a neobank seeking new markets, a provider that wants to go digital, or a financial institution that wants to act like a fintech, you need a roadmap [...] a guide to where to begin and where to go. This is why a ranking system is important.

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