Signicat expands anti-fraud and onboarding portfolio with Sphonic acquisition
Sphonic, a London-based company, offers a digital identity platform that provides know your customer (KYC), know your business (KYB) and anti-money laundering (AML) solutions. Its flagship product, ‘Workflow Manager,’ is used for real-time tracking of risk and onboarding with fraud prevention and risk automation workflows, integrating behavioral biometrics and other technologies from nearly 100 partners, the company says. Sphonic has found clients in financial services, fintechs, gaming operators, and the payments ecosystem to help them with credit checks, affordability checks, and other compliance checks. More recently, Sphonic also released a ‘Case Management System’ that visualizes identity, fraud and AML data.
Signicat says the acquisition will allow it to better protect banks and other customers against fraud, financial crime, and money laundering, and bring it closer to its aspiration of being the single provider for the digital identity and anti-financial crime lifecycle across Europe.
“With digital fraud continuing to rise globally, it has become critical to know that your customers are who they claim to be. With Sphonic’s leading team of professionals and their data orchestration and decisioning platform, we will be able to offer a more extensive range of onboarding services with highly flexible risk and compliance solutions – all of which can keep international customers safe from fraud,” says Asger Hattel, CEO of Signicat.
A press release says Sphonic will continue to run as a separate business entity named ‘Sphonic, a Signicat company,’ and then integrated into Signicat. The Sphonic management team will also join Signicat’s senior management, and Sphonic’s founder and general manager Andy Lee will be instated as Signicat’s UK country manager.
The acquisition of Sphonic by Signicat adds to a run of consolidation deals, with strong customer authentication (SCA) specialist Encap Securit, video biometrics provider Electronic Identification and electronic document signing leader Dokobit in 2021.
“We are excited to become part of the Signicat family,” comments Lee. “For the past 10 years we have built industry-leading solutions that solve some of the most complex onboarding and compliance challenges in heavily regulated industries for global digital payments, crypto, gaming and lending brands requiring rapid onboarding for their high-volume client base. With Signicat there was a great complementary fit. Now we are ready to accelerate our ambitions in new markets and verticals and creating a compelling joint global solution.”