Fenergo and IBM sign OEM agreement
Fenergo and IBM have signed an original equipment manufacturing (OEM) agreement that will see both firms collaborate on the creation of financial crime solutions.
Fenergo’s systems will be boosted by IBM AI
The deal sees the two companies combine Fenergo’s client lifecycle management (CLM) offering with IBM’s Watson-designed regtech portfolio of anti-money laundering (AML) and know-your-client (KYC) solutions.
On its side, IBM plans to build on the deal to assist clients in integrating AI-driven analytics from its Financial Crimes Insights suite into the Fenergo CLM solution.
David Marmer, vice president of offering management for regtech at IBM, says that the agreement with will allow Big Blue to expand its offerings with “a more comprehensive CLM solution.”
He adds that it will provide insertion points for IBM’s AI-based anti-financial crimes and regulatory compliance management technologies “throughout the client lifecycle.”
The eventual aim for both companies is that customer using the Fenergo platform via IBM will have access to a selection of additional support services, including IT support, predictive analytics, system developers, and multi-vendor processing.
“Financial institutions are grappling with rising costs and fines associated with KYC and AML requirements,” says Julian Clarke, head of partners and alliances at Fenergo.
“Banks and other financial institutions need a CLM system to address regulatory challenges and keep abreast of the changing regulatory landscape.”
Related: IBM names former Bank of America exec as new cloud head
Fenergo secured $80 million in funding and a post-money valuation of $800 million earlier this year, in a February investment round backed by ABN Amro and DXC Technology.
Dublin-based Fenergo plans to use the funding to continue building out its product portfolio and to provide a stable base from which it can launch mergers and acquisitions.
