A nascent artificial intelligence (AI) startup that is focused on compliance and digital identity checks has closed a $54 million Series C round of funding as it looks to capitalize on a burgeoning opportunity to help the digital transformation of the financial services sector.
Fourthline, which is based in the UK, has now raised a total of $100 million to date, a sign of the massive potential for using AI-driven compliance tools to streamline financial services.
The round was led by Lakestar with participation from the company’s existing investors, including Partech, Viola FinTech and Accel.
The startup, which spun out of Deloitte in 2017, enables companies to streamline onboarding, identity checks, regulations and other compliance processes. Fourthline uses a combination of AI and data-driven analytics to automate end-to-end compliance processes, reduce costs and enable better decision-making.
The new investment will be used to propel Fourthline’s product development, hire more talent, and accelerate its global market expansion. The company already has customers in the Americas, Europe, Asia, the Middle East and Africa, and is continuing to invest in its global presence.
This latest round of funding comes on the heels of Fourthline’s Series B which closed in August 2019 and attracted $15 million in investments. Fourthline has now raised $100 million to date and is already providing compliant and secure services to some of the world’s largest banks, such as HSBC, BBVA, DZ Bank and Danske Bank.
The company is well positioned to capitalize on the increasing demand for digital identity and compliance solutions as banks, financial institutions and other companies continue their digital transformation initiatives.
Fourthline is helping these companies mitigate risk, screen and verify customers faster and more efficiently, and comply with increasingly complex compliance regulations. This helps streamline onboarding, customer journey and lower operational costs.
According to Fourthline CEO Jay Economopoulos, the company is well positioned to generate exponential growth in the financial services sector.
“Digital transformation is absolutely critical for financial services,” said Economopoulos. “Last year we invested heavily in our global presence and are now helping the world’s leading banks and financial institutions to rapidly transform while mitigating compliance and risk. This investment will help us continue to build on our momentum and drive further innovation and more efficient customer onboarding across the world.”
The new funding is a major boost for Fourthline and strengthens its position as the leading provider of AI-driven compliance and identity solutions for the financial services sector. It’s a sign that AI is becoming an increasingly important tool for digital transformation and compliance in the sector, and that companies like Fourthline are uniquely poised to capitalize on this growing opportunity.