Demica closes US$30m financing round to accelerate investment

Today Demica, one of the world’s largest working capital fintechs, announced that it has successfully closed a US$30m Series C financing round led by Simcah Management LLC.

Over the past five years, Demica has built a rapidly growing Software as a Service (“SaaS”) platform to manage working capital for over 500 large corporate multinationals financed by 50 global financial institutions. During this time the company has grown funded programmes from US$3bn to US$16bn, established a commercial presence across Europe and North America and expanded its development centres in UK, India and Poland.

Uniquely in the market, Demica’s vision is to give treasurers access to the full range of working capital finance products offered by banks around the world through its award winning portal. Responding to customer demand, this financing round will facilitate adding invoice discounting and distribution finance products to the platform as well as enhancing the syndication and risk distribution functionality. In addition, the investment will enable Demica to expand its North American team and build deeper relationships with the banks and institutional credit investors that finance its transactions.

Matt Wreford, CEO of Demica, commented: “The trend for working capital finance transactions to be managed on independent third party platforms has accelerated during 2019. All parties are looking for flexible financial structures that can be automated with best in class risk mitigation for funders. This investment round takes us another step closer to delivering this vision and transforming how working capital is financed globally.”

David Cohen, managing member of Simcah Management, commented: “As an experienced investor in enterprise SaaS companies, I have been attracted for many years to the working capital finance market due to its substantial size and consistent growth rate. Demica is one of the very few credible platforms that has the potential to reach critical mass on a global scale.”

Completion of the transaction is subject to the requisite regulatory approvals from the FCA. Terms of the investment were not disclosed.

Tech start-up celebrates whirlwind growth in 2019

A UK tech start-up has announced it closed 2019 with a record 200 clients, only eight months after launching onto the market.

ePOS Hybrid has created the world’s most advanced hospitality ePOS platform – a fully-customisable system companies in the industry can use to reinvent their business, driving operational efficiency and elevating customer experience.

The company now boasts an extensive portfolio of clients across Scotland, England and Wales as well as clients as far afield as Australia and India. The business also recently celebrated winning a new contract with an enterprise firm which operates fast food locations throughout the UK.

ePOS Hybrid is the only point of sale provider which can offer clients a fully modular ePOS platform, with products including point of sale terminals and online and mobile ordering solutions. It also provides customer self-checkouts and interactive smart tables – all of which seamlessly connect with one another to deliver a slick experience for customers.

A series of high-quality appointments has helped to accelerate the company’s rapid growth, bringing the management team to a six-strong unit with years of experience in I.T., technology and high-growth start-ups.

Recent appointments to the board of directors include non-executive directors Alex Grant, Alastair Hutt, Caroline Heeney and chief technology officer Hema Bellapukonda.

Alex Grant has 36 years’ experience in financial services and technology, latterly serving as head of technology at RBS and Natwest. Alastair Hutt has over 40 years’ experience in business growth, product development and partnerships, recently acting as head of partnerships and innovation management at Natwest and RBS.

With over 15 years’ experience, Hema will provide her vast expertise in software development, project management and quality assurance, while Caroline joins with extensive background in commercial law, further reinforcing the company’s commitment to strategic business growth.

Andrew Gibbon, head of growth at ePOS Hybrid, said: “2019 has been a very big year for us. Since our product launch in April, we’ve been working hard to increase brand and product awareness and drive sales growth across the UK.

“Thanks to our effective growth strategies, unique product offering and competitive pricing, we’ve been able to scale far faster than initially anticipated, securing new clients on a daily basis and creating five new full-time jobs as a result.

“We’re firmly on track to continue onboarding 75 new clients every month and we’re well on our way to hitting 500 customers by May 2020.”

By addressing gaps in the competition’s offering, ePOS Hybrid has propelled itself to the forefront of the hospitality industry and the point of sale market.

Bhas Kalangi, founder of ePOS Hybrid, said: “The level of demand we’ve seen from customers shows just how impactful our products are within the industry.

“We’re constantly developing exciting and innovative products which are transforming the way businesses in the food and drink industry connect with customers and run their businesses. We’re looking forward to another successful year for sales and client expansion, and further growth of the business.”

The Android-based system automates a bar or restaurant’s operations, streamlining processes and enhancing efficiency for both staff and customers. Managers can receive in-depth reports and analysis of everything from tracking stock and food waste to reservations and capacity.

The firm offers clients the option of fully-branded online ordering platforms and apps to increase online revenues and build up a loyal customer base.

Customers can also enjoy one-of-a-kind dining experiences thanks to ePOS Hybrid’s innovative hardware – including a Smart Table which allows diners to play games, call a waiter and design their own pizza from the comfort of their seats.

Cyber defences in financial services sector worsen

The level of cyber risk facing the financial services sector has increased significantly in the last 12 months, according to new research by international cybersecurity consultancy Coalfire.

Coalfire’s second annual Penetration Risk Report identified that financial services firms are more susceptible to cyberattacks than they were a year ago, with the number of businesses at high risk of attack from cybercriminals increasing by 41%.

The report details the cybersecurity credentials of more than 500 businesses of all sizes across five high risk sectors: technology, retail, healthcare, education and financial services. Of all those tested, the report found that only the financial services sector had suffered an increase in risk from last year’s report.

Out-of-date software was highlighted as the biggest contributing factor to the increased level of risk, with Coalfire’s study identifying that flawed legacy software – well-known to hackers – is still commonplace within major companies and financial institutions.

Security in the sector was further hampered by consistent vulnerabilities generated by internal issues such as insecure protocol, patch management and password flaws.

Human error was a persistent theme across all five sectors involved in the study, with almost three-quarters (71%) of businesses breached by phishing attacks. In a fifth (20%) of the businesses tested, more than half of all their employees shared sensitive data as a result.

Andy Barratt, UK managing director at Coalfire, said: “In a year in which the number of IT failures within the financial services sector has been heavily criticised by UK MPs, attacking outdated IT systems remains like shooting fish in a barrel for sophisticated cybercriminals. By their nature, financial services firms have access to huge amounts of sensitive data and funds, so it’s critical that the sector moves quickly to close the widening gaps in its armour.

“The results of the report simply reinforce the need for a cyber strategy that encompasses both software and people to eradicate the all-too simple errors that can lead to major breaches. It only takes one employee to click on the wrong link or unwittingly share sensitive information to a fraudulent email and a hacker is in. This makes security basics, such as limiting employee access based on their role and educating staff on how to spot suspicious activity, vitally important.”

Dubai based fintech set to disrupt UK digital payments

Dubai based fintech company specialising in payment processing is set to launch OG Bank and OG Pay (On the Go) a digital banking solution, chat based payment wallet and a digital point of sale (POS) all to be operated from mobile devices.

OG Bank and OG Pay have signed an agreement with Bankable, the global architect of “Banking as a Service” solutions, to offer digital banking and digital payment solutions primarily in the UK and Germany.

Whilst OG Bank will be a digital bank, OG Pay claims that with a chat-based payment solution and digital pos through mobile phones in a closed loop environment they will cause major disruption in these markets.
Chat based payment solutions and mobile payment processing is widely and commonly used in Asia. For the last few years a cashless race has been seen in Asia with global players emerging however this type of technology has rarely been seen in Europe. A closed loop system can create advantages for consumers due to the competitive nature and low costs for operators.

Mohammed Ibraheem Khan, CEO of OG Bank and OG Pay said: “I chose Bankable as a technology partner to support my ambition in multiple markets. OG Pay will change the way individuals and businesses send and receive money along with how businesses process payments. We are going to ruffle feathers… A disruption is needed and disrupt we shall”.

“Bankable is delighted to partner with Dubai based OG Pay, a chat based payment pioneer, to launch new payment solutions in the UK and Germany. OG Pay is an ambitious organisation planning to launch digital banking services supported by Bankable API infrastructure, not only in Europe but also in Pakistan, Egypt, Malaysia, Indonesia and other jurisdictions,” says Eric Mouilleron, founder and CEO of Bankable “Bankable will partner with OG Pay in all its markets, appointing new regional bank sponsors in the process.”

Whilst digital banks are emerging and growing in popularity the emergence of payment wallets and adoption in the UK and Europe has been slow. With the world in a cashless race only time will determine the success of such technology in established markets.

The death of the password expected to be biggest trend for 2020

One of the key trends to impact millions of people and businesses in 2020 is the death of the password. Passwords are widely being recognised as an outdated, costly method of authentication, and the source of most cyber-attacks.

According to James Stickland, CEO of Veridium: “Passwords account for over 80% of data breaches , with resets costing firms a staggering $1.9m a year . In 2020, the expansion of 5G – the wireless replacement for broadband that is up to 100 times faster than its predecessor – will escalate the volume and speed of data theft, empowering hackers to penetrate vital company data . As a result, more and more organisations are turning towards biometric authentication to mitigate against increasingly sophisticated cyber threats, whilst enhancing the user experience.”

He continues: “Increasingly, companies and consumers alike are realising the weakness of passwords. Millions of people use the same password for multiple logins, leaving valuable personal data at risk. In addition, employees must remember an average of 27 passwords , which on top of costing businesses at least $70 per user per year to manage resets, also decreases productivity significantly. Gartner forecasts that by 2022, . Gartner forecasts that by 2022, 60% of businesses will have cut their reliance on passwords by half . Biometric authentication is a far more secure alternative to this obsolete, easily compromised security measure.”

He continues: “This year will see regulation and compliance becoming more business critical for financial institutions with the delayed Strong Customer Authentication of the EU PSD2 directive set to come into force in March. This will require banks to provide two layers of authentication on purchases over £28, with a view to improving the security of online transactions. Implementing biometrics is a cost effective way of fulfilling such regulatory requirements whilst maximising security and guarding against fraud.”

James observes that other security trends in 2020 will include:

Identity and e-commerce fraud – Global e-commerce fraud is projected to cost $130bn by 2023 . This issue has been amplified by artificial intelligence powered ‘deepfake’ threats which imitate characteristics such as voice. These are anticipated to cost businesses more than $250m in identity fraud scams this year.

James comments: “Integrating innovative behavioural biometric authentication, which uses artificial intelligence to identify unique mannerisms such as gait, or patterns of behaviour such as the time of day an app is accessed, as well as location, is widely being regarded as a the final frontier in security, and a solution to such advanced threats.”

Mobile-first security – Gartner predicts that by 2022, 70% of organisations will be using biometric authentication for employees via smartphone apps, which is a huge rise from less than five per cent in 2018.

James concludes:“This year will also see mobile-first authentication strategies take precedence. Biometric facial recognition hardware will be present in 90% of smartphones by 2024, thus enterprises with a Multi Factor Authentication strategy will provide increased security for their clients and the organisation and also an improved and more seamless user experience.”

Legalesign ranked lead providers of E-signature in the UK and Europe

Legalesign kicks off 2020 as lead providers of electronic signature in the UK and joint top in Europe, latest figures from the G2 market comparison website shows, the leading global comparison site for electronic software.

Its winter report puts Legalesign, based in Cambridge, way ahead of rival big name competitors and is a fantastic testament to Legalesign’s quality product and the service provided by its professional and dedicated team. G2 is recognised by the software industry for its genuine peer-to-peer reviews and detailed feedback that can influence potential new clients.

Legalesign scored joint 94% top ranking for satisfaction in the European chart and 92% in the UK, while some of the big well known brands trailed way behind.

CEO Ben Eliott said, ‘What a fantastic way to start the new year. We remain committed to maintaining this great result throughout 2020 and continuing to deliver the best service to help business and profits grow. I would like to thank our clients for posting their terrific reviews on the influential G2 platform which enabled us to achieve this lead position in the UK and Europe.’

Legalesign’s electronic signature software is used by legal firms, insurance companies, property firms, recruiters, accountants, local government and government bodies. It provides a quick, safe and environmentally friendly paperless way for smart businesses to sign contracts and agreements, saving considerable time and money and enabling business seeking to go carbon neutral to take a significant step forward in that direction.

Legalesign was founded by Ben who has 20 years’ experience in software development and holds an MBA from the University of Edinburgh where he wrote his dissertation on electronic signature, its legal basis in the UK and how it can deliver value for enterprise.

Ben added, ‘We believe Legalesign’s customer focus and wide ranging features meets all our clients expectations – and more. Our software enables clients to track documents, bulk send and adhere to privacy and GDPR compliance. We also customise our services to meet our clients’ personal requirements and constantly look at new ways to develop even more features to stay ahead in our field. At the end of the day, that is what we are tested on, as well as our personal customer service approach which we know is always greatly valued.’

Firms warned over rise of ‘ransomware gangs’ after Travelex attack

The cyber attack on foreign exchange provider Travelex demonstrates the growing threat of ransomware and is a warning that financial services firms need to step up their security, according to a leading cyber expert.

Tim Thurlings of bluedog Security Monitoring says the company has detected a worrying increase in the number of ransomware attacks worldwide in recent months. He blames a combination of factors including the ready availability of ransomware on the darknet and the uptake of cyber insurance which effectively allows companies to cover the cost of ransom payments.

The Travelex case follows a recent attack on the Dutch University of Maastricht, which is believed to have paid several hundred thousand euros to retrieve its data.

Tim Thurlings says: “Ransomware is now big business. Criminal gangs are blatantly targeting companies and negotiating fees. The cybercrime market has become more professional. Coders develop ransomware and sell it on the darknet, which covers their own tracks and allows others take the risk.

“Attackers can buy advanced malware from as little as €500 and it even comes with helpdesk support to ensure victims can access bitcoins to pay the ransom.”

Typically malware enters a company’s IT network through vulnerabilities in the system or through phishing emails to staff. Once inside, it spreads through the system, activating only once the backups and many of the machines are infected. The company’s data is then encrypted and the business grinds to a halt.

“This is when the clock starts ticking,” says Tim, “as now everything is costing money. Productivity is at a standstill and experts are called in to restore the network. Typically the ransomware demand is well thought out and is an amount which is lower than the cost of fixing the problem.

“The attackers know that businesses have to get back on their feet or go bankrupt, and that big companies are insured against these types of attacks. With the insurance companies picking up the bill, the attackers have created a very attractive and profitable business model.”

While big companies tend to be targeted by professional crime gangs, smaller firms suffer more random attacks but can be more at risk.

“Attacks on smaller firms are more like drive-by shootings,” adds Tim. “The criminals may send out a million phishing emails, knowing that a small number of people will click through. Small firms are unlikely to have the money to pay the ransom, hire experts to restore their system or have cyber insurance – so there is a bigger risk of them going out of business.”

While companies need to secure their networks and educate staff about cybersecurity, he says firms now need to take their security to the next level by using a professional 24-hour cybersecurity monitoring service.

“Measures such as firewalls and endpoint protection which firms have traditionally relied on are no longer adequate today as they can be breached all too easily,” says Tim. “Companies need to be able to detect threats inside the network – whether that is ransomware spreading through the system, an attacker logging into it from a remote location or a rogue employee downloading sensitive data.

“A cybersecurity monitoring service will help ensure that any problems are identified and contained as quickly as possible with minimal impact on the business.”