Bringing you live news and features since 2006 

Wealthify appoints LexisNexis Risk Solutions for customer on-boarding

RELATED TOPICS​

Wealthify has appointed LexisNexis Risk Solutions to expedite customer on-boarding while reducing costs for anti-money laundering (AML) compliance.

Wealthify offers a low-cost alternative to traditional investing, enabling customers to sign up completely online and start investing in less than 10 minutes.
 
Traditional wealth firms typically take up to 48 hours to process customer information and investment portfolio requests.
 
FinTech start-ups are required to comply with a growing number of AML regulations including the EU’s fourth AML directive, which will be transposed into UK law in 2017. As a result, AML compliance costs are estimated to have increased by more than 50 per cent in the last three years alone, with costs focused on Know Your Customer (KYC) systems and the recruitment and retention of AML staff.
 
Wealthify adopted several LexisNexis Risk Solutions AML compliance platforms in April 2016 to help the online investment service meet its obligations within its desired work flow. By employing LexisNexis Risk Solutions integrated technology and expansive data resources to verify identities, validate bank accounts and screen clients against global sanctions lists, Wealthify is able to expedite customer on-boarding and enhance customer experience whilst still fulfilling all of its compliance responsibilities.
 
Wealthify says it has been able to operate its compliance team with one member of staff, rather than the five members of staff that it would take using more traditional, manual compliance checks.
 
Michelle Pearce, co-founder and chief investment officer, Wealthify, says: “One of our key differentiators is speed; we get people up and investing within just 10 minutes. However, as a regulated online-only investment service, complying with AML regulations is also a priority for us. LexisNexis Risk Solutions’ technology helps us succeed on both fronts by speeding up the compulsory background checks, whilst helping us meet our compliance obligations.
 
“Traditional investment managers typically employ a small army of compliance professionals to verify customer data, but technology has transformed the way that our compliance department operates. LexisNexis Risk Solutions’ software streamlines this process and strengthens the security of our funds.” 
 
Dean Curtis, managing director, LexisNexis Risk Solutions UK, says: “The rapid growth of the FinTech sector has driven the digitisation of financial services in the UK. Though this has enhanced the customer experience, businesses must continue to be aware of their need to deploy robust financial crime and Know Your Customer processes.
 
“Wealthify presents a great example of how to balance the two effectively and keep compliance costs to a minimum. Through integrating financial crime compliance solutions directly into their innovative investment platform, they are able to offer their customers ease and efficiency without compromising on compliance. Operational burdens are also reduced without disparate siloed content and technology. Simultaneously, operating costs are reduced by avoiding the need for a large team of staff to process compliance checks.”

Latest News

BlackRock’s global ETP flows report for June finds a steady rise with USD128.1 billion added to global ETPs in June,..
Morningstar’s global ETF flows report for the first half of 2024 shows that actively managed ETFs have captured 25 per..
The surge in bitcoin ETF launches and funds flowing into the sector is transforming institutional investment in digital assets but..
LSEG Lipper’s latest research finds that the majority of actively managed funds and ETFs globally were not able to beat..

Related Articles

Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Andrea Busi, Directa SIM
Romain Thomas talks to Andrea Busi (pictured), CEO of Directa SIM, who explains why the online trading platform has just...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by