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Digital identity company IdentityMind Global has agreed to be acquired by identity verification company Acuant five months after the two initially formed a partnership. Terms of the agreement were not disclosed.
The deal offers Acuant access to IdentityMind’s digital identity product, a SaaS platform that builds, maintains, and analyzes digital identities and helps companies perform risk-based authentication, regulatory identification, and detect and prevent synthetic and stolen identities.
While digital identity was a hot topic at the beginning of the year, it is even more so now that much of consumer interaction is being pushed from in-person to online channels.
“Never before has identity been so critical to building and maintaining a stable and productive economy,” said Acuant CEO Yossi Zekri. “Businesses must rely on trusted identities to successfully transact, fight fraud and stay compliant. Our Trusted Identity Platform, now with IdentityMind’s orchestration layer, creates a new standard in identity verification.”
Acuant has offered identity verification solutions for 20 years. Since then, the California-based company has completed more than one billion trusted transactions in over 196 countries. Today’s deal is Acuant’s second acquisition after purchasing AssureTec Technologies in 2016.
IdentityMind was founded in 2013 and has raised $21.5 million across three rounds of funding. The company most recently demoed at FinovateSpring 2018, showcasing its GDPR compliant KYC plug-in.
A new partnership between trusted digital identities innovator IdentityMind and identity verification specialist Acuant will make the latter’s Acuant AssureID identity solution available via the IdentityMind platform. The technology leverages AI and human assisted machine learning to identify more than 6,000 ID types in real-time to provide superior data verification and risk scoring.
“Acuant and IdentityMind share a common belief that identity is the new currency in today’s digital economy, and it must be protected,” Acuant President and CEO Yossi Zekri said. “Our strength in identity proofing during the onboarding and account origination process is the perfect combination to IdentityMind’s ability to build a digital identity and continue to monitor its use through the lifetime of the user. This partnership enables trusted transactions helping companies to reduce fraud, comply with AML/KYC regulations, and provide better customer experiences.”
The company’s flagship document authentication and identity verification software, Acuant AssureID, pulls biometric and alphanumeric data from identity documents and subjects it to more than 50 forensic document-specific tests in real time. The technology can be used for address and age verification, as well as a check against Politically Exposed Persons (PEP) and Office of Foreign Assets Control (OFAC) watch lists. AssureID features components such as Acuant Face, a seamless multi-factor authentication solution, as well as Acuant Review, an expert-driven, manual review of identity documents.
“As part of our goal to create the most agnostic and accurate platform for trusted digital identities addressing compliance and risk, we have built an expansive technology ecosystem that pre-integrates the best of breed solutions across a variety of use cases and geographies,” IdentityMind CEO Garrett Gafke said. “Acuant has an outstanding track record in identity verification as a white label solution for many industry leading partners globally. We are excited to be able to offer their solution to our customer base.”
IdentityMind demonstrated its GDPR-ready, KYC Plug-in at FinovateSpring 2018. The pre-configured, customizable technology helps financial services companies meet global KYC requirements while simplifying GDPR compliance. The solution provides critical reports that auditors and examiners rely on to evaluate both the firm’s regulatory processes as well as its customer PII protection functionality.
Last month, IdentityMind announced that it promoted Cynthia Tham to Vice President of Engineering after more than six years at the company. In August, the company reported that it had been awarded a new patent for digital identity-based automated policy review that will help it better evaluate “risky” data and better protect financial transactions. Over the summer, IdentityMind announced partnerships with a variety of firms including South Korea-based wire transfer company Wirebarley, Latin American crypto-to-fiat exchange platform BITPoint, and U.S. blockchain trading platform Bittrex.
Headquartered in Palo Alto, California, IdentityMind has raised more than $21 million in funding. The company includes Eastern Link Capital, Benhamou Global Ventures, and Lakewood & Company among its investors.
Digital identity innovator IdentityMind is helping global crypto-to-fiat exchange operator BITPoint continue its expansion in Latin America by providing KYC/AML solutions for the firm’s newest exchanges in Panama and Peru.
BITPoint LATAM will use IdentityMind’s technology to identify and stop identity fraud and money laundering, as well as establish risk profiles and score reputations. The company will also leverage automated transaction monitoring to spot suspicious activity and provide alerts.
“We have been helping digital currency and asset exchanges in more than 40 countries since 2013,” IdentityMind Director of Products Neal Reiter said, “and we continue to build specific support within our platform as the regulatory requirements and technology evolves.” Reiter praised BITPoint as a company that “takes regulation seriously.”
In addition to helping BITPoint better assess risk and remain compliant, the company’s Operations Director Latam Julian Geovo said that the partnership with IdentityMind paves the way for a better regulatory environment for fintechs throughout the region more broadly. “In Latin America we see a very interesting opportunity, and we are here to work with the authorities and the traditional financial system in order to create and guarantee a sustainable model and regulation-oriented ecosystem for this new industry,” Geovo said.
He added that the company’s experience with the advanced laws and regulations of Japan, where BITPoint is headquartered, will help establish best practices in terms of compliance in Latin America.
IdentityMind Director of Commercial Operations for Latin America Mirel Aguirre similarly sees great potential for the growth of fintech in the area – and for regtech to help guide that process. “Latin America is witnessing an explosive growth in FinTech,” he said. “The financial inclusion revolution is disrupting the traditional financial ecosystem, and IdentityMind’s RegTech Digital Identities platform for KYC and AML is bringing cost-effective, state-of-the-art technology to support all companies to comply with the local authorities and international regulations.”
The partnership is the latest example of how IdentityMind is leveraging its growing presence in the region to forge new partnerships and expand the reach of its digital identity technology. Earlier this year, the company announced a deal with Latin American microlender MO Tecnologías. IdentityMind opened a new office in Mexico City in the spring of 2017.
The BITPoint news comes just a month after IdentityMind announced a collaboration with investorID to improve AML and KYC compliance for investors in security token offerings (STOs). This spring, the company teamed up with OTC trading desk Koi Trading to power the firm’s AML compliance-as-a-service offering Koi Compliance.
Palo Alto, California-based IdentityMind demonstrated its pre-figured, customizable, SaaS KYC plug-in solution at FinovateSpring 2018. Named to the RegTech 100 for two consecutive years, the company has raised $21.5 million in funding and includes Eastern Link Capital, Benhamou Global Ventures, and Lakewood & Company among its investors.
The new online RegTech store launched by IdentityMind Global today will make it that much easier for companies to integrate compliance and regulatory technologies into their solutions.
“The IdentityMind Webstore is the perfect channel for small and medium-sized FinTechs, marketplaces, virtual currency exchanges, small enders, and person-to-person payment (P2P) firms to enhance their platforms,” company Chief Products and Marketing Officer Jose Caldera explained. He emphasized even smaller companies need to be sure that their compliance programs “meet the full scope of the regulatory requirements,” and added that the new offering will help them do this “faster with minimum investment.”
The Webstore functions as a self-serve marketplace where customers can choose, demo for free, and purchase regtech plugins that serve as front ends to IdentityMind’s SaaS-based trusted digital identities platform. The customizable plugins can be deployed in web apps to provide AML, KYC, sanctions screening, and transaction monitoring operations.
Immediately available are a pair of solutions: a KYC Plugin, which includes a customizable onboarding form, pre-integrated with IdentityMind’s platform; and an ICO Plugin, that helps ensure companies conduct compliant onboarding for initial coin offerings (ICOs) and security token offerings (STOs). IdentityMind Global has been especially effective in using its trusted digital identities technology in this market, having worked with more than 25 virtual currency exchanges around the world and helped more than 165 companies conduct compliant ICOs and STOs. Additional plugins are expected to be added later this year and into 2019.
IdentityMind Global demonstrated its platform at FinovateSpring 2018. Founded in 2009, the Palo Alto, California-based company partnered with ZED Network last month to help the company’s money transfer operators (MTOs) meet KYC and AML regulations. In addition to being named one of The Silicon Review’s 50 Best Companies to Watch in 2018 this summer, IdentityMind Global teamed up with Ontology Trust Ecosystem in July, with ONe Network in May, and with digital shopping platform Fluz Fluz in March.
With more than $20 million in funding, IdentityMind Global includes Benhamou Global Ventures, Lakewood & Company, and Eastern Link Capital among its investors. Garrett Gafke is CEO.