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.”