Releasing their 2015 report of IT trends in banking, Forrester listed compliance related expenses as the largest single category of IT budgets for major costs. A broad segment, compliance costs have increased in part due to new regulatory requirements. In addition, the introduction of new technology such as trading platforms and mobile banking apps is forcing financial firms to have solutions in place to monitor these systems and ensure that they are compliant as per the legal requirements.
With this growing focus on compliance, it is no surprise that ‘compliance-tech’ is becoming its own major segment within the overall fintech industry. Some examples of compliance products that are coming to market are advancements in collecting customer data to satisfy know your customer (KYC) requirements for opening new accounts, trading surveillance software to monitor both internal and external traders for manipulative trades, and accounting software to expedite the process of filing regulatory reports.
Emerging from the KYC segment is Trunomi. Launched in October 2014, Trunomi provides solutions for financial firms to collect and verify customer data. Their solution integrates with a bank’s mobile app or web-based forms to collect client account opening documents. Information is then sent to 3rd party service providers to automate the verification process for banks.
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Gaining assistance to expand their presence and continue building their technology, Trunomi announced today that they have closed $3 million in new funding. In a deal led by Saturn Partners with additional participation by Fenway Summer, Persistent Ventures and SenaHill Partners, Trunomi plans on using the funds to “continue to invest in the progression of its technology”. As part of the funding round, Saturn Partners General Partner, Bill Guttman, is joining Trunomi’s board.
Guttman commented on the investment that “Saturn is excited to be backing Trunomi, whose technology revolutionizes the way financial markets deal with customer account opening, onboarding and related transactions. We’re deeply impressed by the scope of Trunomi’s solution.”
Stuart Lacey, CEO and Founder of Trunomi added: “With the support of our investors, we are changing how the financial services industry approaches KYC as well as the way data privacy is managed. This round of capital will drive Trunomi’s efforts to ensure financial service providers unlock the potential of data, yet in a compliant and efficient manner, through the power of consumer consent.”