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Swap raised $40 million in Series B funding, boosting its total raised to $49 million.
ICONIQ Growth led the round, which will help Swap expand into the US, EU, Australia, and Canada while launching new products like Swap Inventory to optimize restocking and avoid inventory issues.
Swap’s unified platform will become even more essential to ecommerce companies as trade disruptions and rising shipping costs threaten cross-border commerce.
Ecommerce inventory management platform Swapreceived a $40 million investment this week. The Series B round was led by ICONIQ Growth and saw participation from previous investors Cherry Ventures, QED Investors, and 9900 Capital. The investment brings Swap’s total funding to $49 million since it was founded in 2021.
Swap manages a global network that helps ecommerce companies with shipping, returns, inventory management, and cross-border commerce. By combining everything companies need into one place, Swap offers an all-in-one ecommerce operating system that helps companies simplify their operations, save money, and see all the metrics they need on a single dashboard.
Swap will use today’s funds to accelerate its expansion into the US and EU, and kickstart operations in new regions, including Australia and Canada. The company also plans to expand into new verticals such as beauty, home goods, and consumer technology; grow its team; and launch new products, including Swap Inventory. Swap Inventory provides customers with pricing modeling and AI-driven recommendations around inventory restocking and replenishment to avoid overstocks and stockouts.
“From the beginning, we’ve set out to create a new category that is a platform-level solution across all of a brand’s operations,” said Swap Co-Founder and CEO Sam Atkinson. “This funding cements us as the only e-commerce operating system that can enable inventory solutions, cross-border growth, returns management, and shipping and logistics in a way genuinely tailored to a brand’s needs.”
Swap’s funding comes at a time when cross-border commerce is vulnerable to disruptions from the emerging trade war, shifting global policies, and rising shipping costs. For ecommerce companies, streamlining logistics and maintaining efficient inventory management across multiple geographies is critical, especially as brands look to scale internationally.
By offering an end-to-end operating system, Swap is positioning itself to help brands navigate these challenges. By combining inventory intelligence, flexible shipping options, and seamless returns management, Swap helps ecommerce businesses adapt quickly to volatile global supply chain pressures.
“As cross-border commerce becomes increasingly complex, we have seen Swap emerge as a valuable partner for direct-to-consumer brands by unifying fragmented global e-commerce operations into a cohesive platform,” said ICONIQ Growth General Partner Seth Pierrepont. “We believe the company is well positioned to be a leading software enabler of global e-commerce and are excited to support them on this journey.”
We are just hours away from the launch of FinovateEurope 2025. Launching tomorrow and running through February 26, this year’s event is taking place at the Intercontinental O2 in London.
There’s still time to register, so sign up today to secure your spot! If you’re already registered, here are the last-minute details you’ll need to know:
Stay connected:
Download the ConnectMe app and create your profile to start networking, set your schedule, and view the agenda.
Follow #FinovateEurope on LinkedIn and Twitter for live updates and key takeaways.
Over the past month, we’ve highlighted most of the speakers that will grace the Finovate stage next week at FinovateEurope 2025 (there’s still time to register for the event!). From keynote presentations to demoing companies and panels, our previews offer a sneak peek into the wide range of sessions that will showcase some of the newest thoughts and ideas in fintech and banking in 2025.
In our final segment of this series, we are showcasing the five breakout stages that will be held on the second day of the conference. These stages dive into some of the most pressing topics in financial services today. Whether you’re a banker, fintech founder, investor, or analyst, these sessions will arm you with the insights and strategies needed to stay ahead.
Here’s what’s on the agenda for Day 2’s breakout stages:
Customer Experience Stage
Panels and keynotes on this stage will discuss how to serve today’s digital-first customers. This stage will showcase strategies for redefining banking UX, leveraging AI for hyper-personalization, and ensuring seamless omnichannel experiences. Industry thought leaders will discuss how to balance innovation with security, tackle legacy tech challenges, and meet evolving customer expectations.
Expect to hear about:
AI-powered customer journeys
Embedded finance and contextual banking
What to know about how customers view the world
Payments Stage
Thought leaders on this breakout stage will discuss the evolution of payments: from fraud to opportunities in real-time to cross-border and beyond. With global e-commerce booming and alternative payments like stablecoins on the rise, this track is essential for anyone involved in B2B, B2C, or P2P payments.
Expect to hear about:
How regulators are addressing authorized push payment fraud
How can banks reimagine payments
How to capture growth opportunities
Lending Stage
This breakout stage will cover how the newest technologies are impacting lending, risk, and consumer credit. You’ll hear updates on small business lending, embedded lending, as well as consumer lending.
Expect to hear about
How agentic AI is reinventing business lending
The revenue opportunity in small business lending
How to capture the opportunity in BaaS-powered embedded lending
Banking, Regulation, and Risk Stage
With all of the changing regulations in 2025, you don’t want to be caught unaware. Experts on our regulation and risk stage will inform you on what you need to know about the newest regulations. There will also be a panel highlighting the latest on cybersecurity and risks in emerging technologies.
Expect to hear about
How regulators are cracking down on risk management
Rising bank fraud threats
What you need to know about DORA, FiDA, eIDAS, and DMA
Artificial Intelligence Stage
You will hear plenty about AI throughout the two-day event, and for good reason. The technology is changing everything from the way we work to the way we think to how we manage risk. Because AI is so fundamental, we’re dedicating two rounds, for a total of six sessions, for discussions about AI, its impacts, and what you need to know.
Expect to hear about
Leading use cases for GenAI
Strategies for successful AI
The real value and risks of AI
These breakout tracks aren’t just about listening — they’re about engaging, learning, and networking with other leaders who are facing the same issues. Whether you’re focused on customer experience, payments, lending, regulation, AI, or all five, there are dedicated tracks to help you stay ahead of industry shifts, discover fresh opportunities, and spark new partnerships.
Illuma has secured strategic financing from Stifel Bank. The amount of the financing was undisclosed.
The funds add to the company’s $9 million Series A funding round it received in September of 2024.
Illuma plans to use the funds to accelerate product innovation, expand its market reach, and help financial institutions safeguard interactions.
Voice authentication solutions provider Illumareceived strategic financing from Stifel Bank. While the amount of the financing was not disclosed, it adds to the $9 million Series A funding the company received in September of 2024.
“Our tech and operations teams went through deep due diligence and have been highly impressed with the quality and simplicity of Illuma’s offerings, which address a critical gap for mid-market FIs,” said Senior Vice President of Venture Lending and Banking Stifel Bank Nick Elsenpeter. “We are excited to support their continued growth.”
Illuma will use today’s financing to help community banks and credit unions enhance security and streamline authentication processes across voice channels. More specifically, the funds will help the company accelerate product innovation, expand its market reach, and further support financial institutions in safeguarding consumer interactions.
“This strategic financing marks an exciting milestone for Illuma as we continue to scale and provide financial institutions with cutting-edge authentication solutions,” said Illuma CEO Milind Borkar. “The support from Stifel underscores the growing demand for frictionless security solutions that reduce operational costs while enhancing consumer trust. With this financing, we are well-positioned to expand our capabilities and further solidify our leadership in the market.”
Headquartered in Plano, Texas, Illuma offers a flagship product, Illuma Shield. The Illuma Shield authentication tool replaces traditional knowledge-based authentication (KBA) practices, such as asking security questions or prompting for PINs, with a real-time voice authentication solution. The low-friction solution not only enhances the caller experience, but it also improves operational efficiency for the financial institution while helping prevent fraud.
When a consumer calls into a call center using Illuma Shield, they can complete enrollment simply by saying “yes” and continuing the conversation. The system does not require them to call into a specific line, wait on hold, or repeat a special phrase. As a result of the straightforward experience, Illuma reports that more than 95% of callers invited agree to enroll.
As fraud continues to rise and the need for a seamless customer experience escalates, organizations can no longer afford to rely on outdated authentication methods that frustrate customers and leave security gaps. Traditional KBA techniques are increasingly vulnerable to social engineering attacks and data breaches. Voice authentication solutions like Illuma’s can help reduce fraud risk while enhancing operational efficiency, cutting down on call times, lowering authentication costs, and ultimately building consumer trust. As the industry moves toward more sophisticated identity verification methods, voice authentication solutions like Illuma’s will play a crucial role in the future of secure and efficient financial interactions.
Founded in 2016, Illuma recently won Best of Show at FinovateFall 2024 in New York for its deepfake detection technology. Check out the award-winning demo below.
Stablecoin payments provider MANSA has secured $10 million in funding.
Of today’s investment, $3 million in pre-seed funds come from Tether and Polymorphic Capital, and an additional $7 million are from institutional investors.
MANSA will use the funds to expand into Latin America and Southeast Asia.
Stablecoin-based payments solutions company MANSA has raised $10 million to help payment companies alleviate global liquidity challenges.
The $10 million consists of $3 million in pre-seed funds co-led by Tether and Polymorphic Capital with participation from Faculty Group, Octerra Capital, and Trive Digital. The additional $7 million comes from institutions, including corporate investors, quantitative funds, and alternative investment firms.
“Securing $10 million in pre-seed and liquidity funding marks a significant milestone in our mission to transform the way money moves. By bringing payments on-chain and leveraging efficient liquidity solutions, we are addressing critical challenges in cross-border transactions — making payments faster, cheaper, and more reliable worldwide,” said MANSA CEO and Co-Founder Mouloukou Sanoh. “This funding accelerates our global expansion, enabling us to empower payment companies with seamless, real-time settlement infrastructure and drive the future of payments.”
MANSA will use the funds to support its expansion into Latin America and Southeast Asia, regions where liquidity challenges hinder cross-border transactions. The company plans to scale its liquidity infrastructure and develop strategic partnerships by expanding the reach of its cross-border payments liquidity solutions.
Co-founded by Mouloukou Sanoh and Nkiru Uwaje, MANSA offers stablecoin-powered liquidity solutions that help reduce prefunding requirements and enable instant settlement across markets. The company helps optimize treasury management by ensuring that liquid funds are always available when and where they are needed.
“MANSA’s vision for addressing liquidity challenges in cross-border payments aligns with our mission to create a more efficient and inclusive financial system. By leveraging USDT for real-time settlements and instant payouts, MANSA is solving critical pain points for payment companies operating in emerging markets. We are proud to collaborate with MANSA and support their efforts to reshape global payment infrastructure,” said Tether CEO Paolo Ardoino.
MANSA launched in August of 2024 and has since focused on building partnerships with major payment companies across Africa, Asia, and South America. These partnerships have resulted in MANSA processing $27 million in transaction volume, with nearly $11 million of that on-chain transaction volume occurring in January.
TransUnion is partnering with Credit Sesame to launch a freemium credit education platform.
The new platform will give U.S. consumers daily access to their credit score, tailored financial offers, and premium credit monitoring services.
By leveraging Credit Sesame’s expertise in the freemium credit space, TransUnion expects to increase consumer engagement and grow its direct-to-consumer business.
Credit protection platform TransUnion and consumer credit management company Credit Sesame have teamed up this week. TransUnion has tapped Credit Sesame to launch a direct-to-consumer, freemium credit education solution for US users.
TransUnion is positioning the new credit education solution as an “experience” that will be integrated with premium credit monitoring services. The new tool will bring consumers their daily credit score and report from TransUnion and offer them access to third-party financial offers that are tailored to their individual goals and credit profile.
TransUnion’s US consumers will have access to the new platform beginning in the first half of 2025.
“Personal empowerment is a key component of our commitment to Information for Good,” said TransUnion President of US Markets Steve Chaouki. “By providing a free-first experience that includes financial offers, we engage with more consumers, enabling them to better understand their financial situations and take action to manage their financial futures. By integrating our freemium offering with our enhanced premium credit and identity monitoring services, we expect to deliver a more expansive product offering to consumers and position our direct-to-consumer business for sustainable growth.”
Credit Sesame was founded in 2010 to show consumers their daily credit score, credit report summary, and credit monitoring alerts. In 2020, the California-based company launchedSesame Cash, digital banking tools, including a pre-paid debit card and credit builder solution.
Headquartered in Chicago, Illinois, TransUnion provides tools to help businesses and consumers assess creditworthiness, detect fraud, and make informed financial decisions. The company operates in more than 30 countries, helping organizations manage risk and empowering consumers with access to credit and wealth-building tools.
“We’re committed to empowering consumers to take charge of their financial health,” said Credit Sesame CEO Adrian Nazari. “We have a track record of success in the freemium credit space, helping millions of Americans effectively manage their credit and create better opportunities for themselves and their families. By leveraging our Sesame platform, we expect that TransUnion will be able to deeply engage consumers and support them in achieving their financial goals.”
Corporate payments company Corpay launched multi-currency accounts.
The new multi-currency accounts allow businesses to receive, hold, and pay in 12 currencies through dedicated accounts.
Corpay joins a long list of fintechs, including Wise and Revolut, that offer multi-currency accounts.
New York-based corporate payments company Corpayannounced it has added multi-currency accounts to its business offerings. The new offering will enable businesses to expand globally and manage their foreign currency from a single place.
Corpay offers accounts payable automation tools, commercial card solutions, and cross-border tools such as multi-currency risk management and global invoice automation. The company serves 800,000 businesses and organizations across a range of industries. Today’s launch will help businesses transacting in foreign currencies simplify their treasury management in a single place instead of opening and managing multiple foreign bank accounts.
“Our goal is to continuously develop solutions that transcend borders, allowing for seamless international operations,” said Corpay Cross-Border Solutions Chief Product & Digital Innovation Officer Tim Watson. “After meticulous development that integrates our customers’ feedback and industry insights, our centralized account solution caters to the needs of businesses engaging in overseas markets across diverse jurisdictions and currencies. It streamlines account opening and management across multiple currencies and countries, simplifying complexity and allowing our customers to focus on their business first.”
The multi-currency accounts allow companies to receive and pay out in 12 currencies via a dedicated account in their business’ name. On the backend, the business will see a unique account assigned to each currency that the accountholder trades. This simplifies the payments and receivables process and lowers the barriers to enter global markets.
Corpay is launching the new multi-currency accounts after completing pilot testing and adjusting the tool based on customer feedback. “The development of Multi-Currency Accounts has been a collaborative effort with our customers, and their buy-in and willingness to provide feedback has been instrumental,” said Corpay Cross-Border Solutions Group President Mark Frey. “Through our ongoing commitment to client centricity and addressing their needs, we have dedicated ourselves to continuous industry research and competitor analysis, while also constantly gathering invaluable feedback from our customers. Ultimately, our goal is not only to create a best-in-class product, but also to enhance the future success of our clients.”
Launching multi-currency accounts places Corpay in the company of Wise, Revolut, Payoneer, Airwallex, Finzly, and others who also offer multi-currency accounts. Unlike many of the competitors, however, Corpay differentiates itself by offering a wide range of treasury management solutions.
Founded in 1992, Corpay is publicly traded on the New York Stock Exchange under the ticker CPAY with a market capitalization of $25.5 billion. In addition to its corporate payments arm, the company also offers products and services in vehicle payments and lodging payments.
Experian is integrating ValidMind’s AI governance and risk management tools into its Ascend Platform to help banks automate and streamline AI compliance.
The collaboration enables financial institutions to automate model validation, risk tracking, and audit readiness.
The combined solution will not only simplify AI adoption in financial services, but will also ensure compliance with key regulations like SR 11-7, E-23, SS1/23, and the EU AI Act.
Today’s environment of ever-changing regulations and technological developments in AI is making it difficult for banks to stay on top of AI compliance. To help banks manage these challenges, Experian is integrating its Ascend Platform with AI governance and risk management platform ValidMind.
Experian Ascend helps organizations make better decisions by providing them with access to extensive data and advanced analytics tools. The tool combines information from various sources, including credit and market data, and leverages AI and machine learning to offer insights to help firms better understand their customers, manage risks, and identify new opportunities.
Integrating ValidMind will help Experian automate model development and validation documentation using customizable, pre-built templates for credit, fraud, and other models. It will also enhance risk governance with robust racking, monitoring, and audit readiness features, ultimately enhancing regulatory compliance.
“Our collaboration with ValidMind complements our Ascend Platform and offers our customers innovative technology to automate and accelerate their model risk management processes,” said Experian Software Solutions President Keith Little. “This partnership empowers financial institutions, insurance companies, and fintech organizations to meet regulatory challenges with confidence and agility.”
The new combined solution, which meets compliance requirements including SR 11-7, E-23, SS1/23, and the EU AI Act, integrates AI into templates to ensure that banks generate consistent, high-quality documentation organized to streamline regulatory submissions.
“This partnership is poised to establish a new industry standard for scalable, automated model risk management,” said ValidMind CEO Jonas Jacobi. “Together, we can help financial institutions reduce risk, improve efficiency, and accelerate the adoption and implementation of AI, Gen AI and statistical models.”
California-based ValidMind was founded in 2022. The company’s enterprise platform helps organizations document, validate, and govern models at scale. ValidMind also offers statistical models, AI models, and GenAI models to streamline documentation, simplify compliance, future-proof existing models, and unlock new business models in a transparent way. The company raised just over $8 million in its first funding round last year.
Is anyone else having difficulty keeping up with all of the changes that have taken place since the new administration took office last month? Over the course of the last 18 days, sweeping shifts have reshaped regulations, agency leadership, and key financial policies— creating both uncertainty and opportunity for businesses navigating this evolving landscape.
While many of these changes will have broad implications for U.S. citizens and organizations operating in the country, I’ve distilled the most significant updates on the White House’s website impacting financial services. Below, I break down the four most critical developments that banks, fintechs, and other financial institutions need to watch closely.
Imposing a regulatory freeze
On January 20, President Trump signed an executive order to halt new rulemaking and review pending regulations across federal agencies. It also calls for the withdrawal of any rules that have been sent to the Office of the Federal Register but not published yet. The administration plans to use the pause to reassess both existing and proposed regulations so that they align with its policy objectives.
For banks and fintechs, this makes it challenging to prepare for future regulatory requirements. It may impact firms’ compliance timelines and will likely confuse financial services companies’ strategic planning efforts.
Strengthening hold on digital assets
On January 23, President Trump issued an executive order titled “Strengthening American Leadership in Digital Financial Technology.” The order prohibits the establishment of US central bank digital currencies (CBDCs). It also establishes a working group to propose a regulatory framework for digital assets within 180 days and allows individuals and entities to access and use open public blockchain networks.
This may present opportunities for banks and fintechs to engage in the stablecoin economy, especially when it comes to cross-border transactions and digital payments. Additionally, governmental protection of an open blockchain may spark the creation of new blockchain-based products and services.
Removing barriers to AI
Also on January 23, President Trump issued an Executive Order titled Removing Barriers to American Leadership in Artificial Intelligence that aims to enhance the US’s position in AI. The order removes existing AI policies and directives that are considered barriers to innovation. Within 180 days, officials are tasked with creating a plan to sustain and enhance America’s global AI dominance.
This emphasis on reducing regulatory barriers may lead to both banks and third party fintechs adopting AI technologies at a faster rate. However, as AI is a double-edged sword, the relaxed regulatory environment may create uncertainty as organizations wait for new guidelines to develop.
Implementing the DOGE workforce optimization initiative
On February 11, President Trump issued an Executive Order titled Implementing The President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative, which intends to streamline the federal workforce and enhance operational efficiency. Controversially, the order gives Elon Musk and his team direct access to data held at the US Treasury Department. As a result, a coalition of more than a dozen US states is planning to file a lawsuit to block access in order to protect the personal data of US citizens.
By reducing staffing at federal agencies that oversee financial institutions, the order may impact the efficiency and thoroughness of regulatory examinations and compliance enforcement. The instability could also cause uncertainty for banks, disrupting strategic planning and compliance efforts.
Other actions
There are two other actions not yet listed on the White House’s official news release page, but each is significant.
Earlier this week, the Associated Press unveiled that the Trump administration ordered the Consumer Financial Protection Bureau (CFPB) to suspend all of its activities. Finovate Analyst David Penn reported on the details of the situation, including what the CFPB can still do and who may take over the agency if it continues to exist.
Today, the Wall Street Journal exclusively reported that the Trump administration is also considering folding the FDIC into the Treasury Department. Experts cited that this is unlikely to transpire, however, as Congress is unlikely to pass such a measure. “This idea would pose an enormous risk of terrifying Americans about the safety of their deposits and triggering bank runs,” Former Federal Regulator Patricia McCoy told CNN.
FIS is partnering with Affirm to enable banks using its debit processing services to integrate Affirm’s BNPL payment options.
FIS clients can now offer consumers pay-over-time solutions including both biweekly interest-free installments and longer-term financing plans.
Offering BNPL tools can help smaller financial institutions stay competitive, improve their digital offerings, and meet evolving consumer demands.
Payment, banking, and investment systems provider FIS and buy now, pay later (BNPL) player Affirm have teamed up this week. The partnership will allow FIS to enable its debit processing bank clients to integrate Affirm’s BNPL solution into their existing debit card program.
Affirm offers two different payment products, Pay in 4 and Monthly Installments. With Pay in 4, shoppers can split up purchases ranging from $50 to $1,000+ into four interest-free installments paid every two weeks. The Monthly Installments tool is a more traditional borrowing product that allows consumers to finance purchases ranging from $50 to $5,000+ over the course of three to 60 months with a rate of 0% to 36% APR.
FIS anticipates that integrating Affirm’s tools into banking products will help its clients meet evolving consumer demands, ultimately fostering customer loyalty and boosting growth. The company’s debit processing clients can offer their eligible customers biweekly and monthly payment plans via the bank’s existing debit card programs. Banks can also leverage Affirm’s traditional financing offers, funded by Affirm’s 335,000+ merchant partners.
“Customer conversion and retention have become major priorities for card-issuing banks in our increasingly digitized economy, where consumers have endless options,” said FIS Co-president of Banking Solutions Jim Johnson. “Consumers today are looking for innovative and user-friendly experiences that give them flexibility and control over their money and optimize how their money is put to work. That’s why so many of them choose to pay with Affirm. This new program will deliver Affirm’s leading-edge technology, flexible and transparent payment options, and extensive merchant network to our banking clients, enabling them to continue meeting these needs and offer more competitive, differentiated services through their own banking channels.”
This move is particularly significant for FIS’ smaller financial institution clients, such as credit unions and community banks, as it provides a straightforward way to offer BNPL tools to their customers. By integrating these options, institutions can enhance the customer experience with greater payment flexibility while positioning themselves as more tech-savvy and innovative. This distinction can be crucial in attracting and retaining customers in a competitive landscape.
“Millions of consumers prefer using a debit card from their trusted financial institution, and we believe they should have easy access to exceptional credit options through their preferred payment method. That’s why, for the first time, we’re bringing Affirm’s proprietary underwriting technology and full suite of pay-over-time solutions to third party issuers in partnership with FIS,” said Affirm Chief Revenue Officer Wayne Pommen. “This new program will expand access to Affirm’s wide range of payment options, giving more consumers a responsible way to pay over time. It will also connect them directly to Affirm’s vast and growing merchant network – delivering an even more valuable and differentiated experience.”
Established in 1968 and based in Florida, FIS serves 15,000 clients across the globe. The company’s product suite includes payment solutions, risk management services, and customer communication tools. Its technology supports the processing of $50 trillion in transactions annually and oversees assets totaling $16 trillion.
Financial data company Perfios has acquired Clari5 to enhance its fraud prevention and risk management capabilities using Clari5’s real-time financial crime management platform.
Clari5 offers AI-driven fraud detection tools, including customer-looped alerts, identity resolution, trade-based AML, and real-time transaction monitoring across multiple channels.
Perfios anticipates that the acquisition will strengthen its presence in India, the Middle East, North Africa, and Southeast Asia.
Financial data analysis company Perfios has agreed to acquire Clari5 (also known as CustomerXPs). India-based Perfios will use Clari5 to strengthen its own fraud and risk management capabilities. Financial terms of the deal were not disclosed.
Clari5 was founded in 2006 to help protect banks against fraud and money laundering. Among the company’s tools for fighting fraud are a customer-looped alert management service, payments fraud reporting, identity resolution, trade-based anti-money laundering, an inbound scam detection solution, and more. Additionally, Clari5 uses AI-driven analytics and machine learning to improve the detection of fraud patterns. The company monitors transactions in real-time across multiple channels to ensure that financial services organizations can quickly detect and prevent fraud.
“Joining forces with Perfios marks a new chapter of growth and innovation for Clari5,” said Clari5 CEO Rivi Varghese. “With Perfios’ deep expertise in the financial technology ecosystem and our advanced real-time financial crime management platform, we are creating a powerful synergy to redefine fraud prevention, risk intelligence, and AML compliance at scale. This partnership enables us to expand our reach, accelerate product innovation, and strengthen our ability to help financial institutions combat evolving financial crime with unmatched speed and precision. Perfios’ scale, global presence, and stability position us to serve the largest banks worldwide, enabling us to deliver impactful solutions to financial institutions of all sizes and complexities.”
Founded in 2008, Perfios builds customized solutions for financial services firms to make data-based, real-time decisions in lending, wealth management, embedded finance, insurance, and KYC. The company serves over 1,000 lenders in India, including each of the top 10 banks.
Perfios anticipates that adding Clari5 will help it build its leadership in the financial sector in India. The company also plans to use the move to strengthen its presence across its key geographies, including the Middle East, North Africa (MENA), and Southeast Asia (SEA).
“The acquisition of Clari5, a leader in EFRM and AML, marks a significant milestone in our journey to build the most comprehensive fraud and risk management ecosystem,” said Perfios CEO Sabyasachi Goswami. “Clari5’s real-time financial crime management platform, trusted by marquee financial institutions worldwide, perfectly complements Perfios’ mission to deliver secure, scalable, and tech-first solutions. Together, we are set to redefine fraud prevention, risk intelligence, and AML compliance, empowering financial institutions to stay ahead of evolving threats while powering financial security to billions across the globe.”
When regulatory changes are a moving target, it can be difficult for financial services companies to keep up. In 2025, several key regulatory updates across Europe will demand attention, from changes to MiFID II and PSD3 to new directives on anti-money laundering (AML) and artificial intelligence (AI). These shifts vary in scope by country, but all require companies to adapt to ensure compliance.
While many of these updates are an inconvenience and require organizations to implement new processes and workflows, they will ultimately improve transparency, security, innovation, and enhance the end user experience. Financial services companies that stay ahead of the curve will be better positioned to meet these challenges.
For deeper insights, FinovateEurope, which is taking place in London on February 25 and 26 (register today and save!), will host a diverse group of experts who will explore the region’s regulatory shifts in detail, offering valuable guidance on how firms can best prepare for 2025. Below, we’ve highlighted some of the most important changes that are likely to impact financial services organizations this year.
ESG compliance
The Sustainable Finance Disclosure Regulation (SFDR), which was introduced in 2021, required firms to complete more detailed and standardized reporting on sustainability practices. As a result, many needed to invest in systems to track and report ESG metrics more accurately and transparently. In 2025, the European Commission and European Supervisory Authorities (ESAs) is expected to update the legislation to improve definitions, simplify disclosures, add more mandatory disclosures, and more.
Additionally, in 2025, the Corporate Sustainability Reporting Directive (CSRD) is expected to see a significant expansion to its scope. More companies will be required to report under the CSRD, firms will be required to disclose detailed information about their sustainability impacts, the reporting measure will need to be fully integrated into a company’s business strategy and decision-making processes, and more.
While these shifts may be challenging, many organizations will likely benefit from improving their ESG transparency because it will help attract investors who prioritize sustainability and may improve their firm’s reputation.
Digital Operational Resilience Act (DORA)
The Digital Operational Resilience Act (DORA) went into effect in January of 2023 and began to require compliance last month. DORA aims to enhance the IT security of financial services companies including banks, insurance companies, and investment firms. The regulation requires firms to regularly test their systems, create contingency plans, and ensure that their third-party providers are also in compliance with security standards. The three European Supervisory Authorities– the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA)– anticipate that DORA will reduce the risk of systemic disruptions and improve financial stability.
EU AI Act
Established in 2024, the European AI Office is implementing the EU AI Act to create regulatory framework for artificial intelligence in Europe. Ultimately, the regulation seeks to ensure that AI applications are transparent, accountable, and ethical. The first requirements under the EU AI Act went into effect earlier this month to ban the use of AI systems that involve prohibited AI practices. There are eight categories of prohibited practices, as law firm DLA Piper details in the graphic below.
European Data Governance Act (DGA)
The European Data Governance Act is designed to enhance consumer trust in voluntary data sharing to help businesses innovate and grow. The act establishes a framework for data sharing and sets standards for data altruism and data intermediaries.
In 2025, the primary update to the EU DGA is the upcoming enforcement of the Data Act, which will impact how businesses manage and share data and their personal information, by specifying data access and usage. The new legislation will take effect in September of 2025.
AML compliance
Anti-money laundering (AML) regulations are set to become even stricter with the introduction of new directives in 2025. Specifically, the EU AML Package, which is launching this year, establishes a new supervisory authority called the Anti-Money Laundering Authority (AMLA). Based in Frankfurt, the AMLA will implement stricter compliance measures for financial institutions, especially high-risk firms, to help combat money laundering and terrorist financing across the EU.
While complying with the AML regulations will require firms to rework their existing strategy and perhaps create new systems, it will help reduce financial crimes, protect firms from reputational damage, and reduce regulatory penalties.
Payment Services Directive 3
Payment Services Directive 3 (PSD3) is the third iteration of the EU’s Payment Services Directive. Changes to the directive coming in 2025 are expected to further enhance open banking capabilities and offer third-party providers greater access to consumer financial data while improving security and user consent mechanisms. The new iteration will also further protect consumers by providing clearer guidelines on payment methods, transaction rules, and dispute resolution processes. The updated standards are expected to increase the speed, transparency, and security of payments, while providing customers with a more seamless and trustworthy payment experience.
Crypto regulation and the MiCA framework
2025 will bring the full implementation of the Markets in Crypto-Assets (MiCA) framework, which will introduce regulation for cryptocurrencies and digital assets across the European Union. Financial services companies that engage with crypto will need to comply with new licensing and operational requirements.
Originally drafted and proposed by the European Commission in September 2020, MiCA aims to provide clarity for businesses and investors by establishing clear rules around the trading, issuing, and holding of crypto assets. This transparency is expected to provide stability and foster trust in the crypto market.
Anti-Tax Avoidance Directive (ATAD III)
The Anti-Tax Avoidance Directive (ATAD III), which aims to reduce tax avoidance by implementing stricter rules to combat aggressive tax planning and ensure that companies pay taxes, is slated to go into effect in 2025. The new directive requires financial services companies to adjust to their tax structures and increase their scrutiny of cross-border transactions. Ultimately, ATAD III should help promote fairness in the EU’s tax system by addressing loopholes used for tax avoidance.
