“Regtech is now a necessity for fast-growers”: FrankieOne attracts heavy-weight roster of customers as fintech comes into focus
Plug-and-play compliance and fraud utility FrankieOne has announced a slew of new milestones as major Australian enterprises re-evaluate their need for compliance and governance in light of the COVID-19 digital shift.
Juniper estimates regtech spending to reach $127 billion by 2024, as companies flock to more reliable compliance utilities with fraud on the rise since COVID-19*.
The company, formerly known as Frankie Financial, onboarded over 30 financial institutions onto the platform during the height of Melbourne’s 112 day lockdown, with names including FlareHR, BeforePay and every Restricted Authorised Banking Institution (RADI) in Australia such as Xinja, Volt and other major neobanks.
FrankieOne is a utility for banks and fast-growing fintechs and provides the building blocks for KYC/AML and fraud tools. The platform connects to over 170 data sources in one integration, which saves customers millions in onboarding compliance technology costs.
FrankieOne CEO and Founder Simon Costello said more efficient and comprehensive compliance utilities had become vital to onboarding new clients amongst high-growth companies, especially in the midst of a pandemic, when physical ID checks and face-to-face screening were paused.
“Financial institutions like banks are the most well known for asking for 100 points of ID regardless of the client risk profile, but in the middle of a lockdown, it can be difficult to assess the validity of these documents digitally,” he said
“To date, compliance and identity verification have been a costly, time consuming, and frustrating experience for both the institution and the customer. For instance, using legacy systems, adding a $10 deposit requires the same level of onboarding checks as someone taking out a $100,000 loan. For fast-moving companies, the cost of building their own fraud prevention systems just isn’t a smart use of capital,” he said.
“With tech like FrankieOne, we can offer real-time and risk-based onboarding, meaning the customer onboarding changes depending on the client’s risk profile. Given it’s fully digital and automated, onboarding takes minutes instead of days, and translates to benefits to the bottom line.”
On average, customers have credited FrankieOne with onboarding an extra 11 per cent of customers over other methods. With the cost of customer acquisition for banks and other major financial institutions around $300-$400 per customer, Costello says the value in digitising compliance is obvious.
* According to Scamwatch, total scams are up more than 18 per cent since the same period last year, while the associated financial loss is in excess of $132 million, almost 11 per cent more than last year.
