Fincom, a leader in anti-money laundering (AML) Sanction Screening and Entity Resolution technology, announced the completion of its Series B funding round, securing a strategic investment led by Nasdaq Ventures, with participation from Macquarie Group, G1 Ventures, and existing investors including AnD Ventures and ff Venture Capital. This funding marks a significant milestone in Fincom’s growth journey and underscores confidence in its vision and market potential.
Value proposition: Global banks are facing an increased 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. Sanctions screening alone makes up a large percentage of the tens of billions of dollars spent on Financial Crime & Compliance technology by financial institutions globally. And the digitization of financial services has led to faster payments, requiring scalable solutions that handle an increased volume of transactions. Meanwhile, geopolitical landscape underscores the need for additional data and multilingual capabilities.
Fincom’s unique approach to sanctions screening utilizes proprietary computational linguistics, distance-based algorithms, and advanced phonetics that are structure-, language-, and data source-agnostic. This approach enables Fincom to more seamlessly compare and match written text in multiple languages and sources, providing greater accuracy and efficiency in alerts all while consistently driving over 80% operational cost savings for its clients. Today, dozens of U.S. banks leverage Fincom’s AML compliance solutions to mitigate sanctions risk and ensure regulatory compliance.
Strategic investment from Nasdaq: Besides joining the Nasdaq Ventures portfolio, Fincom will enter a global partnership with Nasdaq Verafin, which is Nasdaq’s financial crime management technology business. And as a trusted partner to more than 2,600 financial institutions, Nasdaq Verafin has delivered solutions and innovative data approaches to address the complex needs of banks’ anti-financial crime programs for over two decades. With 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.
What the funding will be used for: The proceeds from the Series B financing will support Fincom’s efforts to accelerate its international growth and launch new offerings, including screening for Politically Exposed Persons (PEPs) and adverse media and Verification of Payee (VOP) services.
KEY QUOTES:
“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.”
Gideon Drori, Founder and CEO of Fincom
“Fincom brings a wholly unique and innovative approach to sanctions screening that delivers faster, more accurate results when compared to legacy approaches, simplifying the increasingly complex world of AML compliance and enabling improved regulatory adherence. We are pleased to welcome Fincom to the Nasdaq Ventures portfolio. With the launch of our new partnership between Nasdaq Verafin and Fincom, we have an opportunity to build upon the natural synergies between our two platforms, leveraging state-of-the-art technologies to help our clients better identify and address instances of potential financial crime.”
Gary Offner, Senior Vice President, Head of Nasdaq Ventures at Nasdaq
“Fincom’s AML solutions deliver exceptional value, as evidenced by the company’s extraordinary growth and stellar client retention. We are excited to partner with Fincom’s founders and employees to accelerate their strategy of replacing legacy providers and manual processes with cloud-based, market-proven AML solutions.”
Gary Munitz, Global Co-Head Macquarie Capital Venture Capital
