Fincom, a firm focused on anti-money laundering (AML) Sanction Screening and Entity Resolution technology, announced the successful completion of its Series B funding round, securing an investment led by Nasdaq Ventures, with participation from Macquarie Group, G1 Ventures, and existing investors including AnD Ventures and ff Venture Capital.
This investment marks a key milestone in Fincom’s growth journey and underscores “confidence in its vision and market potential.”
Global banking are facing increasing complexity in “managing sanctions compliance, with resource constraints, evolving regulatory requirements, and limitations in legacy Sanctions and Watchlist screening solutions that result in high volumes of false positives.”
According to research by Celent, sanctions screening “makes up 20% of the $35 billion spent on Financial Crime & Compliance technology by financial institutions globally.”
The digitization of financial services has led to faster payments, requiring scalable solutions that handle “an increased volume of transactions.”
Meanwhile today’s geopolitical landscape “underscores the need for additional data and multi-language capabilities.”
Fincom’s approach to sanctions screening “leverages computational linguistics, distance-based algorithms, and phonetics that are structure-, language-, and data source-agnostic.”
This approach enables Fincom to compare and match written text in multiple languages and sources, “delivering accuracy and efficiency in alerts while driving over 80% operational cost savings for its clients.”
Today, U.S. banks leverage Fincom’s AML compliance solutions “to mitigate sanctions risk and ensure regulatory compliance.”
Gideon Drori, Founder and CEO of Fincom, said:
“This investment is a testament to the hard work and achievements of our team, our customers’ confidence in our solutions, and the trust our investors have in our vision. We are excited to take the next step in enhancing the AML compliance space, making a substantial positive impact and delivering significant value to our current and future customers.”
In addition to joining the Nasdaq Ventures portfolio, Fincom will enter a global partnership “with Nasdaq Verafin, Nasdaq’s financial crime management technology business.”
A partner to more than 2,600 financial institutions, Nasdaq Verafin has delivered solutions and data approaches to “address the complex needs of banks’ anti-financial crime programs for more than two decades.”
Through this partnership, financial institution clients of Nasdaq Verafin and Fincom will benefit from “advanced Sanctions Screening capabilities, leading to increased efficiency, reduced costs, better compliance, and improved customer engagement through innovative technology.”
Earlier this year, Fincom announced the “expansion of its U.S. team to support the growing North American market.”
Proceeds from the Series B financing will “support Fincom’s efforts to accelerate its international growth and launch offerings, including screening for Politically Exposed Persons (PEPs) and adverse media, as well as Verification of Payee (VOP) services.”
Fincom brings innovation to AML Technologies, “delivering solutions for Sanctions Screening and enhancing the efficiency and effectiveness of AML compliance.”
It offers a unified suite supporting diverse AML sanction screening applications, all payment types (Wire, Instant Payments, ACH, and Swift), KYC Onboarding and Ongoing (pKYC), Trade Finance, and improving compliance activities “while reducing sanctions screening operational costs.”