Passfort, a software as a service platform that helps in regtech and compliance like KYC and AML compliance has raised $16.2 million in its Series A funding round that was led by the fund Level Equity.
Regtech is an industry that has a very solid use case which is why most of the major players in this industry are always in high demand. As companies seek to expand across the world. especially the fintech and payment companies, one of the main challenges that they face is the fact that the regulations keep varying from region to region. Even the basic identification documents do not have a common standard across the world and to overcome this challenge, the businesses need third-party players like the regtech companies who specialize in these aspects. With the growth in the digital payments industry, such verification and technology has become even more important.
“On the product side we are developing the solution to meet the demands of the changing digital economy and the threats it faces,” says CEO and co-founder Donald Gillies. “This means investing heavily into our new compliance policy cloud, system-to-system integrations with market-leading CRM and transaction monitoring systems as well as building a data team capable of deriving valuable real-time insights across our customer network.”
The growth of digitalization in the payments and crypto industry has led to a lot of financial crime and hacks which continue to happen regularly and this costs the industry several millions of dollars every year, Couple this with the cost of getting regulated in every region that a business wants to operate in, with each region having a myriad of laws and regulations, the problem then becomes very complicated. It makes sense for businesses to seek regtech companies as partners so that they can focus on their core business. Passfort has made it easy for businesses to achieve this by providing APIs that can be integrated directly into the backend systems of many of the businesses and help with KYC and other compliance processes. This easy integration has helped it gain clients quickly over the last few months and it is expected that the company would be using these new funds to further enhance its offering and also expand into other regions as well.