Edinburgh-based fintech The ID Co has received $2 million (£1.54 million) in seed funding from global technology investor Amadeus Capital Partners, fin tech fund SixThirty and other investors.
The ID Co aims to help businesses such as lenders take on their customers more efficiently with its technology removing the friction caused during the application processes by checks on risk, fraud, compliance and regulation.
It has recently launched two innovative products DirectID Insights and Income Verification, based on open banking.
The company is a leader in open banking which allows companies or individuals to securely share their data with a third party.
The ID Co says its mission is to make bank data readily available to any business so that it can revolutionise its offering and transform its customers’ experience.
DirectID Insights is the first online decisioning tool for use by underwriters, fraud analysts and credit risk officers that requires absolutely no integration.
Using open banking data, it aims to reduce operational costs for businesses and unlock, from bank data, the information required for lenders to grant, or deny loan applications.
DirectID Insights user numbers have grown rapidly in the UK and US and include Clydesdale and Yorkshire Bank, Prosper, Marlette and LendingMate.
The ID Co’s Income Verification product uses six algorithms to give a sound basis for assessing a loan application.
The tool also gives additional insights such as showing supplemental income and whether the applicant’s income changes over time.
The new investment from Amadeus Capital Partners and other investors will enable The ID Co to extend its offering to new sectors and international customers while continuing to grow in its existing markets.
James Varga, CEO of The ID Co, said: “The financial world is being fundamentally changed through open banking.
“It improves our understanding of each individual, allowing us to move away from traditional credit reference agencies.
“This funding gives us the support we need to execute our plan to bring bank data to the global market.
“We are hiring fast and entering new markets and geographies across the globe.
“The recent launch of DirectID Insights and Income Verification means that we are in an excellent place to capitalise on the need for greater efficiency in lending practices to reflect borrowers’ expectations.”
Nick Kingsbury, partner at Amadeus Capital Partners, said: “The ID Co is delivering real value to its clients.
“The application of Open Banking-based data allows financial providers to personalise their services and streamline and shorten lending processes.
“We are delighted to be supporting the company in solidifying its lead in the UK and expanding its international presence.”
“Atul Kamra, managing partner of SixThirty, said: “The speed at which decisions must be made in our hyper-connected world comes with a growing customer expectation for instant value and service.
“This places a premium on The ID Co’s capabilities around rapidly confirming customer identity and delivering customer insights. James and The ID Co team have gotten a real nice head start here, and are well positioned to take advantage from the regulatory tail winds afforded by open banking.”
