Today in FinTech: Tax Startup April Banking on Faster Refunds; ATMs Bridge Digital, Physical Bank Divide; Verification Key to Securing Digital Payments

In today’s top FinTech news, faster payments are always better and sometimes old technology can bring about new connections in a digital-first world. However, verification is still the final word when it comes to success and staying out of the crossfire of cybercriminals.

Tax Platform April Wants to Give Users Faster Refunds

Tax platform April just launched with a $10 million seed round, furthering its mission to make it easier for people to pay state and federal taxes while also getting refunds into bank accounts faster.

Working with Propel and other financial institutions, April said that by collaborating directly with banks, it can break down the barriers between tax and financial planning.

April uses the latest technology for natural language processing, human-assisted artificial intelligence and application programming interfaces (APIs), and aims to let developers create new solutions and to give taxpayers more control.

Deep Dive: How FIs Are Tapping ATMs to Bridge the Gap Between Digital and Physical Banking

When it comes to living life by the algorithm, there can be a disconnect between customers and the digital services provided by banks and financial institutions.

While bank branches may be reducing hours and locations, the ATM is bridging the divide between the physical and digital worlds. ATMs offer a digital touchstone with a personal connection, enabling users to pay bills, transfer funds and even engage with tellers — all helping customers use branches more efficiently.

PYMNTS’ research shows that over 26% of survey respondents cited the ability to visit a physical bank branch as the most important retail bank benefit. The services they’re looking for, however, are becoming more specific and specialized. For example, people want a physical branch for consultations or advice.

The global ATM market is growing, reaching $20.18 billion in 2020, up 4.9% — an expansion expected to continue through 2028.

Managing Remote FinTech Risk: In Digital Payments We Trust, But Verify Continuously

Cybercrime is on the rise, partly due to the pandemic’s shift to all-digital everything and the fast change-over to the remote workforce. However, despite the increased number of fraudsters phishing, scamming and hacking, digital processes for individuals and businesses of all sizes are only growing in popularity and necessity.

The new normal of the remote workforce has made business systems more vulnerable, which, in turn, has made companies of all sizes more conscious of being proactive when it comes to verification and security measures.

Cybercriminals work across a wide variety of business types and scales, often using sophisticated tactics. When it comes to remote work vulnerabilities, however, the traditional username and password authentication process is often the weakest link.

Credentials swiped via a business email compromise or phishing scheme can give cyber thieves enough ammunition to breach corporate networks and tap internal databases by impersonating employees through their home networks.

Square, Ally, Partner to Offer Streamlined Transactions

Software-as-a-Service (SaaS) platform Ally is partnering with payments firm Square — now known as Block — to launch a new suite of tools developed to boost profits, lower costs and upgrade deliveries.

Ally’s network of 90,000 drivers collaborates with over 500 brands that include retailers, pharmacies and fast-food chains. Block’s point-of-sale (POS) system gives sellers a way to manage inventory, employees and locations while also engaging with customers and boosting sales.

UK Challenger Bank Helps SMEs Build Credit History and Access Loans

Some 65% of U.K. startups are denied credit, leaving a £6 billion loan gap between small- to medium-sized businesses (SMBs) credit demand and available credit, according to U.K. challenger bank Cashplus, a digital bank dedicated to supporting entrepreneurs and small independent businesses.

To help combat this, Cashplus launched a new Business Creditbuilder tool, developed in collaboration with credit reference agency Equifax. The tool helps SMBs build their credit score by becoming a business current account customer and repaying a loan of about £100 provided by Cashplus over a 12-month period.