Trulioo feels privileged being the WATCH LIST COMPANY IN FOCUS for the Canadian Technology Review* of September 30, 2016. As the article points out, there’s “tremendous attention to digitalization of the banking industry with regulation, AML and KYC,” which was the focus of numerous sessions at the recent Sibos Conference, the world’s premier financial services event.

The interest in the RegTech sector is growing rapidly as the burden of compliance is rising, more global opportunities are opening up and the need for solutions that ease paperwork and onboarding is becoming crucial. The six-page review includes:

  • An overview of the Company,
  • The growing demand for effective AML, KYC and eIDV technology,
  • A look at Trulioo’s GlobalGateway identity verification service,
  • Highlights on some of the 300+ enterprise clients,
  • An outlook on the competitive technology landscape,
  • Insight into the co-founders and key management Trulioo team,
  • Interest from VC’s and funding to date,
  • Potential risks.

Growing Market Need

The fundamental problem that Trulioo solves is the need for effectively identifying customers. As customers are increasingly online and markets increasingly global, there is a need for an effective mechanism to establish trust online for commerce to function. Identity fraud is a huge issue affecting 17.6 million people and accounting for $15.4 billion in losses, in the US alone, in 2014.

For banks and other financial institutions, identity verification is a critical compliance issue.  Strict laws are in place in numerous countries, due to concerns of money laundering and terrorist funding. The burden of compliance is heavy and growing. World events such as the increase in terrorist activity, the financial meltdown of 2008, and the recent Panama papers exposure of wide-spread corruption drive regulators to enact tougher standards and procedures. And, [tweet_dis excerpt="#AML non-compliance is a huge concern; Bain & Co estimate bank fines will exceed $200 billion this year"]non-compliance is a huge concern; a Bain & Co estimate is that bank fines will exceed $200 billion this year.[/tweet_dis]

Banks and other financial institutions need to efficiently and effectively verify who their customers are.  No wonder technologies that reduce the burden the paperwork of compliance and onboarding new clients, to fulfill the requirements of accurate record-keeping, and to decrease the risk of fraud are currently in vogue.

Powerful Global Identity Verification Service

Of course, Trulioo is not the only provider of ID verification. As with any hot market, there is a variety of companies staking out the area. They can roughly be divided into two camps: large established companies that offer a variety of services and new, smaller niche players that focus on AML/KYC (anti-money laundering/know your customer) software.

One market differentiator that Trulioo offers is the breadth of its data sources. It leverages over 200+ data sources to accurately verify over 4 billion people in 50 countries. No other company offers the same coverage and quality of data, so for companies looking for global coverage, Trulioo delivers.

Another factor to consider is the technology that powers the verification checks. Trulioo offers three ways to access the data; an easy-to-use web-portal, XML direct or a normalized API. It enables quick and easy integration, allows for customization rules and is lightning quick; an ID check takes 1-3 seconds.

One endorsement that goes to show how effective the Trulioo solution is; LexisNexis and Experian resell Trulioo’s GlobalGateway solution as channel partners despite some overlap between services. Another is an investment by American Express Ventures.

* #TECH - Canadian Technology Review is a bi-weekly publication summarizing the technology space from the Canadian Investor point of view. The Canadian Technology Review is by Canaccord Genuity, the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX).