Globalive Technology and Flexiti Partner to Build AI and Blockchain Fintech Solutions
A fintech is quickly making moves after announcing a massive portfolio acquisition last week.
Flexiti Financial has announced a joint venture with Globalive Technology to build and commercialize software based on AI and blockchain technology.
This comes exactly one week after Globalive Technology’s parent company Globalive Capital injected $50 million into Flexiti as an equity investment, taking control of the fintech company and enabling its acquisition of TD Financing Services’ Canadian private label credit card portfolio, valued approximately at $250 million.
Globalive Technology will look to use the Toronto-based Flexiti’s $300 million loan portfolio and 1.1 million customers to build out an AI platform that analyzes consumer purchase and credit histories. This new software will help merchants reduce bad debt by predicting loan outcomes through machine learning, as well as create transactions at the point-of-sale to add value in areas that were previously not leveraged.
The two will also work to create blockchain infrastructure that can help with loan funding, supply chain management and loyalty programs.
“We’re excited to be working with a leading fintech firm like Flexiti, that has built a substantial ecosystem of customers, merchants and a loan funding and servicing platform,” said Anthony Lacavera, founder and CEO of Globalive Technology. “We are executing on our plan to develop a first mover advantage in commercializing AI and blockchain infrastructure through joint ventures with carefully selected strategic partners like Flexiti.”
This move builds off an announcement last month that saw Globalive Technology partner with the Business Instincts Group’s (BIG) software arm to form BIGDEV, a blockchain and machine learning/AI shop that will work with clients to launch projects in the two fast-growing sectors.
Once this new technology for Flexiti is fully developed at scale, Globalive Technology will look to license it to other fintechs through a transaction-based model.
“We are thrilled to partner with Globalive Technology,” said Peter Kalen, founder and CEO of Flexiti. “Building and operationalizing industry-leading software will strengthen our competitive advantage and further differentiate us in the marketplace with AI-driven solutions that help our merchant partners drive more and larger sales.”
Blockchain and AI already has a deep relationship with the financial world, even in Canada. RBC has filed patents to use blockchain tech as a way to improve the credit scoring system, while the Bank of Canada has seen success using blockchain to automate securities settlements.
On the AI side of things, there are numerous examples of the big five banks in Canada bringing in AI talent—sometimes through acquisitions—to help with everything from building conversational assistants to improving personalization and loyalty programs.
