Aug 7, 2020

RegTech leader kompany receives €6mn for accelerated growth

Regtech
kompany
Anti-money laundering
William Girling
2 min
Regulation tech
Austrian RegTech firm kompany has announced that new investment of €6mn will be used to accelerate its market growth and expand product lines...

Austrian RegTech firm kompany has announced that new investment of €6mn will be used to accelerate its market growth and expand product lines.

Specialising in Business KYC (know your customer) for financial institutions and corporations, the company has an international reach serving 50,000 clients across more than 100 countries. The €6mn represents its largest investment round so far.

Originally founded in 2012, kompany has already made significant gains in the industry, being recognised in CBInsight’s ‘Top 60 RegTech Europe’ list and a proud partner in Oracle’s Global Startup Ecosystem.

RegTech: a burgeoning sector

With the RegTech sector projected to be work in excess of USD$55bn by 2025 (according to Bloomberg), kompany’s appreciation that digital transformation will necessarily correlate to an increasingly more complex regulatory environment is well founded.

“The smart money understands that RegTech is about turning the burden of compliance into a competitive advantage by enabling customers to drastically reduce client onboarding times by 90% and by completely digitising the process and customer experience,” said Founder and CEO Russell E. Perry. 

Indeed, since the COVID-19 pandemic, which has acted as a catalyst for a large-scale re-evaluation of financial services, companies’ desire to increase their digital presence has resulted in the perfect opportunity for RegTech companies to demonstrate their value.

“The current market and regulatory situation warrant a far more automated, audit-proof business verification with an exponentially lower margin of error, as compliance risks have never been higher, and clients increasingly move to seamless digital services,” added Johanna Konrad, COO.

Streamlining processes

kompany has a variety of solutions currently available for enterprise use, including:

  • KYC API, BREX
  • KYC workspace
  • UBO discovery
  • KYC onchain
  • Data remediation

All of its services utilise cutting-edge technology (AI, cloud computing, blockchain, analytics and more) to ensure optimised and efficient outcomes. The ultimate goal of kompany is nothing short of totally reinvigorating compliance in the digital sphere:

“Our vision is to enable the five-second cross-border payment with full AML (anti-money laundering) and KYB compliance embedded”, concluded Perry. 

“If you have ever wondered why an international bank transfer can take hours or frequently even days to post, it is directly linked to regulatory requirements and our platform replaces those legacy practices.”

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May 28, 2021

FCA bans ‘price walking’ for insurers from Jan 2022

FCA
pricewalking
insurers
Insurtech
3 min
The City regulator has said insurers must not raise prices at renewal and penalise loyal customers

Insurers will no longer be allowed to raise premiums upon annual customer renewals following a new ruling by the Financial Conduct Authority (FCA)

The new move, which comes into effect in January 2022, will directly affect people renewing their home or motor insurance because they will pay no more for their premiums than a new customer. 

The FCA said the change will save loyal customers an estimated £4.2bn over a 10-year-period. However, it also admitted the move could mean cheaper deals for new customers can no longer be sustainable for insurers attempting to attract business. 

Price walking practices ended

According to reports, the FCA has been working on changing the rules on ‘price walking’ as it is termed, because customers are charged more their annual premiums, even though their level of risk remains the same. The system has resulted in complaints from consumer groups that loyal customers pay more unnecessarily.

Speaking about the regulatory change, Sheldon Mills, from the FCA told the BBC

"These measures will put an end to the very high prices paid by many loyal customers. Consumers can still benefit from shopping around or negotiating with their current provider, but won't be charged more at renewal just for being an existing customer."

Victory for the customer

Consumer groups have hailed the change as a victory for customers who have ended up paying higher premiums unnecessarily, but admitted it presented huge implications for insurers in the short term.

Consumer Intelligence CEO, Ian Hughes said, “These changes represent a tsunami for both insurers and their customers, but we should be in no doubt that the fault line that sits underneath this is fair value, mentioned 153 times in the final statement. GIPP changes will feel like just a ripple for those who don’t offer fair value to customers."

He continued, “This is going to be a bumpy ride for insurance brands and consumers alike in the short term. Today, the FCA has revealed that cash and cash-equivalent incentives, other than toys and carbon off setting, cannot be used to entice new customers without being offered to renewing customers. This means the savviest consumers who shop around each year will see prices rise and discounts and offers disappear.

“However, there is an opportunity for the industry to take advantage of all this change that is coming and do something that will be good for brands, good for the industry and good for consumers."

Consumer Intelligence PR and communications manager, Catherine Carey agreed, and described the victory as “a shot in the arm for innovation.”

Carey said the move “presses a giant reset button on the relationship between price and value, it will change the relationship between brands and consumers.”

She explained, “We expect to see insurers changing their models and new firms entering the market for the first time as loss-making year one pricing phases out. If you look at these new rules, and specifically the introduction of fair value, it’s the most exciting time for the development of the general insurance market for decades.”

Hughes also warned against insurers resisting the regulatory change, “Those that don’t take advantage of the opportunity are going to find it really tough.”

He added, “The tipping point we find ourselves at today is a critical point in the journey of this industry and there is an opportunity to be positive.”

 

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