Sumsub and Finastra to support compliance through anti-fraud solutions

credit: Shutterstock
credit: Shutterstock

Sumsub is partnering with Finastra to support financial institutions worldwide with compliance processes.

Both parties will collaborate on mutual projects, offering Sumsub’s full compliance suite of verification and anti-fraud solutions to the banking market.

As part of the partnership, Finastra will offer Sumsub’s Know-Your-Customer (KYC), Know-Your-Business (KYB), fraud prevention and ongoing transaction monitoring capabilities to its client base. 

The integration will enable banks to onboard new users, perform anti-money laundering (AML) screening on customers, verify business clients and monitor fraud and suspicious transactions with the option to adopt and manage all features through a single platform.

Achim Thienel, Managing Director Germany & Product Director at Finastra, said: “Market requirements and compliance expectations across the financial sector are continually changing. In light of this, banks cannot meet these on their own – they need help from specialists. 

“We are pleased to partner with Sumsub, following a rigorous due diligence process. In addition to providing technology, we always aim to be trusted consultants to our clients. We remain committed to referring best-in-class solutions that meet their unique requirements.”

Furthermore, to help financial institutions comply with sector-wide regulations, the partnership seeks to help banks uphold their reputation, safeguard against security issues and reduce operational inefficiencies. 

The collaboration streamlines customer onboarding processes for banks, ensuring efficiency, while Sumsub’s solutions mitigate potential fraud expenses that might hinder their financial performance.

With a focus on Asia-Pacific, the banking sector in the region has been experiencing increasingly stringent regulatory requirements due to the rise of evolved financial crimes. The Indonesian Financial Services Authority (OJK) has strengthened regulations on consumer and public protection in the financial services sector this year. 

Similarly, the Hong Kong Monetary Authority (HKMA) updated anti-money laundering and counter-terrorist financing guidelines in May 2023 to enhance safeguards. 

Penny Chai, VP of Business Development, APAC at Sumsub, added: “With many APAC countries establishing regulatory frameworks in the banking sector, compliance has become a top priority for banks. By partnering with Finastra, we aim to support financial institutions to strengthen their verification and anti-fraud processes. 

“Last year, the APAC region saw a spike in reported fraud crimes. The rapid digitalisation of the banking sector, combined with the use of AI tools by fraudsters, has created new opportunities for malicious activities. 

“It is imperative to proactively support financial institutions in protecting their end users from illicit actors and avoid reputational damage by instilling adequate safeguards.”