Compliance regtech Fourthline secures €50m in fresh funding
Compliance regtech Fourthline has raised €50 million in a fresh funding round which saw participation from new and existing investors.
Fourthline lands €50m
Finch Capital increased its stake in the company after having led Fourthline’s previous funding round, investing alongside new institutional investors.
Fourthline offers a platform designed to shore up financial institutions’ know your customer (KYC) and anti-money laundering (AML) processes and ensure they meet GDPR requirements by leveraging artificial intelligence (AI) across onboarding, verification and investigations.
Co-founder and CEO Krik Gunning says the “huge leaps forward” in technology over the last decade have made it easier for nefarious actors “to increase the sophistication of their fraudulence”, with around €1.8 trillion laundered every year.
In this climate, most regtech solutions do not alleviate the compliance burden, Gunning says.
In order to free up “thousands of employees”, Fourthline offers a “single, banking-grade” solution to automate continuous financial compliance.
Founded in 2018, the company claims to have grown more than 80% year-over-year and now employs more than 270 people across The Netherlands, France, Spain and the UK.
It’s expected the funding will go towards expanding Fourthline’s client roster. The firm currently works with European fintechs including N26, Trade Republic, Qonto and Scalable Capital, as well as financial institutions such as NN, Solaris and Western Union.
