“While enterprises and modern tech companies have seen significant innovation in the last five years, very little has come to our main street small businesses that have been the backbone of this country, driving our economy forward,” said Zaid Rahman, founder and CEO of Flex. “Most B2B FinTech companies serve Silicon Valley tech startups or large enterprise companies, neglecting small businesses that are struggling to find the credit and tools they need to effectively manage their finances. Flex’s new offerings focus on supporting small businesses by giving them the credit they deserve and providing the essential finance back office tools they need to achieve success.”

“Until now, no one has been able to consolidate all the financial services and workflows required to effectively build, manage and protect business owners’ finances in one platform,” said Hadi Solh, co-founder of Flex. “Flex is introducing the future of FinTech by bundling services into one super app empowering founders, business owners and CFOs to grow their businesses. We look forward to rolling out even more transformational offerings in the coming months.”

This announcement comes as SMBs continue to power the U.S. economy, creating two-thirds of all new jobs and accounting for 99.9% of all U.S. businesses. Flex’s core product is a credit card that caters to traditional small businesses that have historically been underserved by financial institutions and up-and-coming FinTech platforms. The company offers 0% interest for 60 days on all purchases, providing Net-60 float and flexibility for businesses to grow. Flex is redefining credit and finance management by providing business owners with a credit card and financial ecosystem designed to reduce the hassle of expense reports, minimize administrative headaches, simplify employee card management and accelerate growth. The platform bundles every aspect of the back office, from banking to receipt capture, employee cards with specific limits, expense tracking and more, all in one place. With a significant demand from over 20,000 companies, Flex has moved beyond its initial construction focus to service industries such as logistics, trucking, farming, mom-and-pop service businesses, digital businesses, e-commerce companies, restaurants, real estate and more.

“Flex is reimagining how finance is done at businesses and has a proven track record when it comes to supporting businesses to provide more than just a credit card but a platform to manage their entire financial life,” said Saxon Baum, partner of Florida Funders. “We couldn’t be more pleased to invest in such a cutting-edge FinTech company and look forward to seeing their tremendous growth.”

Flex Key Features and Benefits

• Flex Credit Card and Credit Flexibility: Flex Credit Cards come with 0% interest for 60 days on every single purchase. With Flex, businesses can get unlimited employee physical and virtual cards with category and spending limits to manage business spending in real time without slowing down growth. Unlike other cards, Flex cards have no monthly or annual maintenance fees and no late fee charges. Flex also offers credit limits that grow as a business grows – the more customers use Flex, the more credit limit they may be able to obtain. The Flex Credit Card is issued by Patriot Bank, N.A. Flex extends the credit for the Flex Credit Cards, and the cards are subject to Commercial Cardholder Agreements. Flex Credit Cards are available to businesses operating within the United States (except CA, NV, SD, ND, and VT at launch) and Puerto Rico.
• Flex Banking: With Flex Banking, businesses can manage cash all from one place. Flex provides banking with up to 4% yield on idle cash. There are no annual, monthly or late fees, and wire transfers, ACH and insufficient fund fees are also a thing of the past. Flex’s debit cards offer 1% cashback on transactions. Flex enables businesses to have multiple free accounts under one entity for increased agility. The Flex Banking Debit Card is issued by Thread Bank, member FDIC.
• Flex Treasury Management: Flex’s Treasury Management, through partner American Deposit Management (ADM), enables businesses to diversify cash across multiple financial institutions financial institutions and eliminate bank-run risk. Flex customers can access up to $75M in FDIC/NCUA insurance – a considerable increase over the FDIC/NCUA’s standard deposit insurance limit of $250K. With Flex Treasury, funds are spread across up to 400 FDIC-insured financial institutions to maximize FDIC/NCUA insurance.

“As investors focused on providing capital to small businesses in underserved communities, we are excited by Flex’s potential to provide small businesses with access to responsible credit and the flexibility they need to manage their cash flow and growth,” said Jeff Hilton, managing director of CIM. “We’re eager to continue to support Flex as they provide innovative cash flow management products and solutions.”

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Future Proof’s Fintech Demo Drop presenters were hand-picked by an independent committee of industry experts, with each applicant assessed on creativity, outside-the-box thinking and the ability to create a real impact for the industry as a whole. The chosen finalists encompass a broad spectrum of contenders, ranging from promising start-ups to disruptive offerings offered by established firms, as well as significant enhancements to widely adopted technologies.

“We couldn’t be more excited to highlight these seven innovative fintech companies at this year’s Future Proof Festival,” said Matt Middleton, CEO of Advisor Circle. “The Fintech Demo Drop was created to spotlight the latest tools and solutions that help wealth management executives and financial advisors operate their businesses more effectively and serve their clients better. We congratulate each finalist on their unique and compelling solutions, all of which hold transformative potential for the industry.”

Future Proof is proud to present the following outstanding finalists, who will deliver demos at the festival on Tuesday, September 12th, 2023:

• Wealth.com is recognized for its Visualization Suite, including Ester the AI Legal Assistant, which aims to solve efficiency problems in estate planning for financial advisors and their clients.
• Uptiq is recognized for its advisor lending platform, which uses artificial intelligence to determine the right loan product and lender for any liquidity need or risk profile.
• Alphathena is recognized for its turnkey SaaS platform, which provides technology infrastructure for personalization, direct indexing, and tax loss harvesting for RIAs, wealth managers, Fintech platforms, and TAMPs.
• Conquest Planning is recognized for its financial advice platform, which empowers financial advisors to provide access to personalized financial advice to more clients who want it.
• Opto Investments is recognized for its Custom Private Allocation Builder, which allows independent RIAs to access the best of private markets in a scalable and customized way.
• InvestSuite is recognized for its StoryTeller tool, which enables wealth managers and institutions to create personalized and engaging portfolio performance reports for their clients.
• Pershing X is recognized for its Wove wealth advisory platform, which provides exceptional data integration and intelligent workflows to empower financial advisors to spend less time on repetitive tasks and more time assisting clients.

The Fintech Demo Drop nomination process was highly competitive, attracting nearly a hundred applications. Notably, there was a significant uptick in the number of firms implementing AI applications and solutions that sit across multiple platforms, enabling advisors to efficiently organize and maintain data. At Future Proof, technology takes center stage as the team unveils the industry’s latest breakthroughs. Giving start-ups and lesser-known voices an opportunity to showcase their tools on a prominent wealth management stage is a critical component of the festival.

“The fintech tools presented on stage last year sparked our collective imagination, reshaping our perceptions of what our industry could be, and most importantly, where it is headed next,” said Michael Batnick, Managing Partner at Ritholtz Wealth Management. “The Fintech Demo Drop series serves as a catalyst for innovation, fueling our collective drive to shape the future and push the boundaries of what our industry considers possible.”

As part of being selected for the Fintech Demo Drop, these seven fintech companies will have the opportunity to demo their technology live, receive digital promotions, and participate in five complimentary Breakthru Hosted Meetings with qualified financial advisors and wealth management executives.

Breakthru is Future Proof’s innovative one-to-one meetings program. It will facilitate more than 10,000 pre-scheduled 15-minute onsite introductory meetings at the 2023 Future Proof Festival, making Breakthru the largest-ever meetings program in the wealth management industry.

Those interested in gaining exclusive insights from expert speakers, experiencing top-tier entertainment and networking with a forward-thinking community that is building the future of wealth management can register here before the August 15 registration deadline.

Fintech News – The Latest News in Financial Technology.

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Cybersecurity Risks

Fintech platforms heavily rely on digital infrastructure, making them vulnerable to cyber threats. Data breaches, identity theft, and hacking attacks pose significant risks to both financial institutions and consumers. To mitigate these risks, robust cybersecurity measures should be implemented, including multi-factor authentication, encryption techniques, regular system audits, and employee awareness programs.

According to a study conducted by the Ponemon Institute, the average cost of a data breach for financial service companies reached $5.85 million in 2020, highlighting the critical importance of cybersecurity in fintech risk management.

Regulatory and Compliance Risks

Fintech companies operate in a highly regulated environment, facing various compliance requirements. Failure to comply with regulations such as anti-money laundering (AML) and Know Your Customer (KYC) guidelines can lead to severe legal consequences, reputational damage, and loss of customer trust. Effective risk management involves a thorough understanding and adherence to relevant regulations, ongoing monitoring, and proactive compliance measures.

According to a report by Thomson Reuters, global financial institutions paid over $10 billion in fines for non-compliance with AML, KYC, and sanctions regulations in 2020, underlining the significance of regulatory risks in the fintech sector.

Operational Risks

Fintech relies on complex systems and interconnected networks, increasing the potential for operational risks. System failures, technical glitches, disruptions in service availability, or inadequate disaster recovery plans can lead to financial losses, customer dissatisfaction, and business interruptions. Effective risk management requires robust infrastructure, regular system testing, contingency plans, and disaster recovery protocols.

A report by the Financial Stability Board revealed that operational risks accounted for 32% of total risks faced by fintech firms in 2020, emphasizing the need for comprehensive risk management strategies.

Fraud and Financial Crime Risks

The digital nature of fintech platforms creates opportunities for fraudsters and financial criminals to exploit vulnerabilities. Scams, money laundering, insider threats, and fraudulent transactions pose significant risks to fintech companies. Implementing advanced fraud detection systems, conducting thorough due diligence on customers and partners, and employing transaction monitoring tools are vital risk management practices in mitigating these threats.

According to the Association of Certified Fraud Examiners, organizations globally lose an estimated 5% of their annual revenues to fraud, underscoring the importance of proactive risk management measures to combat financial crimes.

Principles of Effective Risk Management in Fintech

• Comprehensive Risk Assessment: Conduct regular and thorough risk assessments to identify, evaluate, and prioritize potential risks and vulnerabilities specific to the fintech organization.

• Robust Governance and Compliance Framework: Establish clear policies, procedures, and internal controls to ensure compliance with regulatory requirements and industry best practices.

• Strong Cybersecurity Measures: Implement advanced security protocols, encryption technologies, regular system audits, and continuous employee training to protect against cyber threats.

• Business Continuity and Disaster Recovery Planning: Develop and test comprehensive strategies to ensure uninterrupted service availability and timely recovery from potential disruptions.

• Proactive Fraud Prevention: Deploy fraud detection systems, conduct regular transaction monitoring, and foster a culture of vigilance among employees and customers.

• Ongoing Monitoring and Risk Mitigation: Regularly monitor internal processes, external environments, and emerging threats to identify and address new risks promptly.

• Collaboration and Partnerships: Engage in collaborative efforts with regulatory bodies, industry peers, and technology providers to stay informed about emerging risks and share best practices.

Conclusion

Fintech has reshaped the financial landscape, providing immense benefits to businesses and consumers. However, the digital nature of fintech operations brings inherent risks that must be effectively managed. By understanding and addressing risks related to cybersecurity, compliance, operations, and fraud, fintech companies can navigate the evolving landscape while safeguarding their reputation, customer trust, and long-term success. Embracing the principles of effective risk management is crucial for building resilience and maintaining a competitive edge in the dynamic fintech industry.

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