Fourthline raises €50m to beef up financial compliance products
Regtech firm Fourthline has raised €50m (£44m) as it seeks to widen its range of bespoke security and compliance products for banks, financial institutions and fintechs.
The Dutch platform provides banks and financial services firms with proprietary tech products to comply with local know your customer (KYC), anti-money laundering (AML) and GDPR requirements.
It works with European fintech businesses including N26, Qonto, Trade Republic, FlatexDEGIRO and Scalable Capital.
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The cash, raised from Finch Capital and other new and previous investors, will finance Fourthline’s development of its product range in the face of a rising tide of financial crime.
“In order to hold back the tide of financial crime, a raft of KYC, AML and anti-fraud technologies have been developed,” said Krik Gunning, co-founder and chief executive of Fourthline. “Simultaneously, legislators have tried to keep up, which has increased the regulatory burden on companies.
“However, a lot of regtech point-solutions do not truly alleviate the compliance burden on regulated entities as evidenced by the thousands of employees performing manual checks at banks that have deployed point solutions. At Fourthline, we provide financial institutions with a single, banking-grade solution for continuous, ‘lifetime’ financial compliance.”
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He added: “The huge leaps forward in technology over the last decade have been a double-edged sword: while consumers benefit from easier and quicker access to banking products, the nefarious actors have leveraged technologies such as deepfakes and social engineering to increase the sophistication of their frauds. At present, approximately $1.8trn are laundered every year.”
Fourthline employs more than 270 people in the Netherlands, Spain, France and the UK.
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