Jumio announced that the company acquired the AML platform from Beam Solutions, a San Francisco-based startup focused on transaction monitoring and KYC.
Jumio will integrate Beam’s suite of AML solutions into its current KYX Platform to further strengthen the company’s position in the anti-financial crime marketplace. Financial terms of the agreement were not disclosed.
Launched in 2016, Beam provides secure, accurate and easy-to-use solutions for fintechs, banks, broker-dealers, credit unions, lenders, cryptocurrency providers, marketplaces and other regulated organizations who need to comply with anti-money laundering (AML), know-your-customer (KYC) and suspicious activity reporting (SAR) regulatory requirements.
Beam’s mission is to make the financial system safer by applying creative technological innovation to the detection and reporting of suspicious financial activity that facilitates money laundering, terrorism and human trafficking.
“Financial institutions of all sizes currently rely on a number of point solutions to combat financial crime and mitigate money laundering threats. At the same time, they must satisfy countless government regulations in order to avoid expensive fines and reputational damage,” said Robert Prigge, Jumio’s CEO.
“Together, Jumio and Beam’s solutions deliver the first end-to-end compliance solution designed to minimize reputational and regulatory risk, increase operational efficiency and genuinely address harmful activity.”
Organizations that are subject to financial regulations currently rely on multiple systems to mitigate financial crime and meet their compliance obligations. The asset purchase of Beam Solutions accomplishes a number of strategic objectives.
The KYX Platform
Beam provides critical AML transaction monitoring, watchlist and sanctions screening and customer risk rating functionality to expand Jumio’s KYX Platform strategy, which combines data from a variety of sources to build a complete digital profile and risk assessment of each customer.
Beam streamlines the process of investigating suspicious activity by integrating powerful tools with a modern, intuitive workflow. The data captured during the onboarding process can seamlessly feed into this process, making analysts better informed and more efficient.
Analysts can then document their findings, progress through a workflow and submit regulatory filings — all through a single user interface.
AI-powered anomaly detection
Beam leverages state-of-the-art machine learning to analyze hundreds of factors about millions of financial transactions to adaptively search for abnormal patterns and activity.
This capability will be enhanced by combining with Jumio’s AI Labs to further reduce the number of false positives and dramatically lessen review time.
A more holistic view
By integrating upfront KYC processes and ongoing AML screening and transaction monitoring, organizations will have a more comprehensive and holistic view of the risk associated with each customer.
The combined offerings provide comprehensive protection from fraudsters, bad actors and money launderers through the entire customer lifecycle.
“When financial institutions are compelled to use multiple solutions, efficiencies are lost, both with respect to workforce and data,” said Andreas Bayer, Beam’s co-founder and CTO.
”Data gathered during the onboarding and customer due diligence processes should be leveraged going forward as part of the ongoing KYC and transaction monitoring program. That’s the real promise of this partnership.”
As financial crime continues to evolve, the asset purchase of Beam Solutions will create strategic synergies, technological unity and new innovation opportunities for Jumio to better meet the needs of existing and new customers around the world by providing a comprehensive end-to-end compliance solution. Beam’s U.S. employees will relocate to Jumio’s Palo Alto headquarters.