Fourthline - The RegTech company has secured €50 million from new and existing institutional investors for its AI-driven and legal KYC and AML solutions.
In order to comply with local KYC, AML, and GDPR standards in Europe and beyond, the Fourthline platform provides banks and financial companies with a comprehensive set of unique digital solutions.
Throughout all phases of business growth, Fourthline's AI-powered solutions enable compliance for the whole lifecycle, from customer onboarding, identity verification and authentication, to inquiries and ongoing KYC.
The business has grown more than 80% yearly since its start in 2018.
Fourthline currently works with European fintech pioneers including N26, Trade Republic, Qonto and Scalable Capital; and other authorised financial organisations such as NN, Solaris and Western Union; and has more than 270 employees across The Netherlands, France, Spain and The UK.
Today is a truly exciting day for Fourthline as we have raised €50 million in funding!
— FourthlineHQ (@Fourthline_HQ) April 3, 2023
Take a look at the press release: https://t.co/cOYQNYceMd
Thank you all for your support, and here's to the next chapter of our growth story 🚀 pic.twitter.com/p4A4H6By0A
As per the Fourthline CEO and co-founder, Krik Gunning, “Our goal is to support regulated bodies in their battle against more sophisticated financial fraud. The dramatic technological advances over the last decade have had a dual effect: although users take advantage of speedier and simpler accessibility to banking services, fraudsters have used fake accounts and other techniques to become more sophisticated in their financial crimes. Currently, about €1.8 trillion is laundered annually.”
He further added, “A wide range of KYC, AML, and anti-fraud solutions have been created to stem the flood of financial crime. Meanwhile, the regulatory overhead on businesses has escalated as politicians have struggled to keep up. The thousands of employees completing manual inspections at banks that have adopted solutions, yet, show that many RegTech point solutions do not reduce the compliance costs of regulated businesses. For ongoing, lifetime regulatory compliance, Fourthline offers financial firms a unique, banking-grade solution. So, this is what we do.”
Fourthline asserts that by providing regulated firms with a single digital platform, it has adopted an innovative solution to tech-driven compliance.
The framework comprises:
- Comprehensible automation enabled by ethical artificial intelligence; is a unique solution that was entirely built in-house.
- A unified API to reduce complexity: Fourthline's API enables new regions, products, and customer experiences and reduces the requirement to integrate different point solutions.
- A single, recyclable basic identity: By creating a single truth source, businesses can improve reliability and automation, do away with the necessity to request customers the same questions repeatedly, which substantially increases conversion rates and retain customers, and rather enhance the data with additional data as needed.
- A solution set that addresses every aspect of KYC and AML standards, including initial onboarding, ongoing monitoring, verification, competent digital signatures, reKYC at regular intervals, increased fraud inquiries, document renewal, and, if needed, offboarding.
Finch Capital's managing director, Radboud Vlaar, raised his position in this deal after leading Fourthline's prior round, investing alongside new corporate players.