The top FinCrime scaleups leading the charge against rising financial fraud in the UK
How companies like FinCrime Dynamics, Elucidate, Kalgera and Salv will save banks millions
It’s not news that the scale of financial fraud in the UK is huge. In the first 6 months of 2023, £580m was stolen in the UK via Authorised Push Payment (APP) fraud alone.
This figure in reality is even higher as many victims won’t notify their bank or the authority, owing to the psychological, as well as financial, impact this kind of activity can have on an individual.
What is new, is that UK banks are now officially sharing the burden of the fight against financial fraud criminals, under a new regulation starting from Q1 2024. The costs of reimbursement of any financial fraud to the victim will be split 50:50 between the firm behind the customer’s account sending the funds and the company running the one receiving them.
The good news is that advanced security systems used by banks have already prevented £651 million from being stolen in the first place. Under this new regulation, it will be even more critical that banks have the best solutions in place to prevent fraud criminals from ever receiving money, otherwise, it will be a hefty sum to hand out back to the victim.
At swiftscale, our network includes the leading scaleups with the best-in-class solutions. We’re sharing a few of the key players in the financial crime prevention space that we think you should keep an eye on or consider implementing. NB: This article isn’t sponsored. We just exist to ensure nothing stands in the way of great people solving hard problems. We help scaleups get in front of their target market, by making the right connections at the right time.
swiftscale’s pick of financial crime solutions:
Spotlight on FinCrime Dynamics
FinCrime Dynamics is a B2B Self-Service Software for Synthetic Data Generation and Financial Crime Simulation.
Their software solution, which is trademarked and called ‘Synthetizor®’ empowers financial institutions to measure and improve their financial crime controls by generating safe synthetic data and simulating financial crime behaviours. Their technology allows financial institutions to unlock the power of Artificial Intelligence in the fight against financial crime.
The company was founded in 2019 by Dr. Edgar Lopez-Rojas and is built on the foundation of over 10 years of leading academic research in Financial Crime Analytics and the concept of “Financial Crime Vaccines”.
Their services include:
Financial Crime Simulations
Synthetic Data Generation
Financial Crime Control Benchmarking
Financial Crime Vaccines
FinCrime Dynamics is supported by Cambridge Judge Entrepreneurship Centre’s Accelerator - Accelerate Cambridge, Creative Destruction Lab and the EY FinTech Growth Programme. They have had pre-seed investment from Twin Path Ventures and government funding from Innovate UK.
Why we love FinCrime Dynamics:
💝We love a category creation, and FinCrime Dynamics’ Chief Visionary Officer, Dr. Edgar Lopez-Rojas coined the term “Financial Crime Vaccines”
More about Elucidate
Elucidate is a ratings and data analysis company for financial institutions. They specialise in providing financial institutions with a robust platform for conducting risk assessments related to financial crimes. Elucidate also enables front and back-office teams to work together smoothly, making it easier to serve customers while minimising risk.
Elucidate provides financial Institutions with two core products:
Ratings
Risk Pricing
Ratings
Elucidate's Ratings product offers financial crime risk ratings, intelligence, and analytical tools to small, medium, and global banks. You can apply data-driven analysis to rate the financial crime risk profiles of banks through industry-wide standardised scoring and bring the credit-risk approach to financial crime risk.
Risk Pricing
Elucidate's Risk Pricing product enables the pricing of financial crime risk for Cross-Border Payments. You can make decisions through objective data analysis while generating new revenue by charging respondents fees based on risk exposure rather than volume.
Client testimonial
”Elucidate enriches our internal analyses with additional external data-based assessments. This raises the discussion with our clients to a new qualitatively and quantitatively improved level and makes our compliance framework even more robust.” - Valerie Brunner, Group Head of Institutional Clients at Raiffeisen Bank
More about Kalgera
Kalgera was born from a desire to better protect the financially vulnerable. They enable banks and other financial institutions to identify and protect vulnerable customers from financial harm through their Artificial Intelligence platform.
Their platform uses cognitive neuroscience research to analyse financial behaviour captured in transaction data. This is processed with ‘deep tech’ data science to interpret financial behaviour. This proprietary process automatically self-improves using AI.
Using Kalgera organisations can improve efficiency. They can help distinguish between normal activity and potential abuse, enabling better allocation of resources and reducing operational costs. It allows organisations to proactively manage risk while also providing new customer insights.
Client testimonial:
"The impact of Kalgera's technology on our processes is indescribable. It's more than just a tool; it's a beacon of hope for our clients who can feel safer knowing they are being protected." - Sean Tyrer, CEO of Money Carer Foundation
More about Salv
Salv is a real-time collaborative financial crime-fighting network, meaning it is a platform which harnesses collaboration and information sharing to increase security.
The company's platform covers online transaction screening, offline monitoring, sanctions screening, risk-based approach, and governance. It enables banks and fintech companies to take charge of anti-money laundering and reduce money laundering and financial crime.
The outcome for businesses is a greater client experience and better compliance.
Client testimonial:
"Banks know what the problems are, but Salv worked out how to really solve them. And it’s not just in money laundering and terrorist financing, it’s also been useful in fraud prevention.” - Olavi Lepp, CEO of Swedbank Estonia
Want to learn more about these scaleups and meet the founding teams? Got a different kind of challenge you need to solve? Get in touch at hello@swiftscale.co, we’d love to chat