Fenergo launched KYC & Transaction Compliance, a new offering for fintechs that combines its KYC and transaction monitoring solutions. It provides fintechs a single, integrated software-as-a-service (SaaS) solution that continuously monitors customer profiles and detects a wide array of suspicious transaction activities, including money laundering and terrorist financing, in real-time.
In connecting KYC and transaction data, siloes across fintechs’ various monitoring tools are eliminated, providing a holistic, 360-degree view of each customer profile – which receives continuous updates from entity data providers, screening providers, and transaction systems.
The insights from the transaction monitoring system can trigger events like Enhanced Due Diligence (EDD) checks, prompt a KYC data refresh, or adjust risk ratings based on the outcome of true positive alerts, ensuring customer profiles stay up to date instantaneously.
“Driven by mounting regulatory pressure and the prevalence of increasingly sophisticated financial crime, we’re hearing a massive demand from our fintech client community for next-gen transaction monitoring solutions that can provide the critical customer insights needed to be compliant at a more regular cadence than bi-yearly or quarterly benchmark reports, which is mainly what the industry has offered to date,” said Christian Roberts, vice president of Product at Fenergo, in a statement, adding that “the best way to protect against smarter crime is to deploy even smarter tech.”
Fenergo’s KYC & Transaction Compliance uses a single API to draw data from multiple key sources, like screening and data providers, allowing powerful low-latency artificial intelligence (AI) technology to rapidly analyze complex historical transaction data and flag suspicious activity. It drastically reduces the number of wrongly identified suspicious transactions – known as false positives – saving fintech firms substantial time and money.
One of the first fintechs to deploy Fenergo’s new solution is Shieldpay, which works with high value, complex business-to-business payment transactions within the legal and professional services sectors. In a separate release, Fenergo announced that Finland-based Coinmotion, which provides a cryptocurrency service for fiat-crypto transactions, will be using the transaction monitoring service for anti-money laundering compliance.