A new startup is launching out of stealth today with $5 million in seed funding, as it looks to bring its flavor of open source to risk decision-making software in the finance sector.
Ballerine, as the startup is called, helps banks, fintechs, and similar financial organizations automate key decisions around their KYC (know your customer) and KYB (know your business) obligations, including verifying the identity and associated risks of doing business with a particular person or company. The platform ingests data from websites, social networks, company registries (e.g. the SEC), sanctions credit agencies, PEP databases, among other global sources, and integrates various tools to support customer onboarding, underwriting, and transaction monitoring.
For example, an online bank will no doubt want to onboard new business customers with minimal friction, but it has to balance this “need for speed” with their duties to adhere to relevant regulations, ensuring that they’re not taking on a business that may be prone to fraudulent activities. When a business customer tries to open an account, they will usually have to provide information such as addresses, legal names, registration numbers, and so on. The bank can then connect Ballerine’s API to its internal systems, with Ballerine then running the bank’s customer data through all its own databases to verify the business.