AML Solutions Concerns for Challenger Banks and Fintech Firms


Reykjavik, Iceland -- (SBWIRE) -- 09/15/2022 -- Challenger banks and fintech firms have made a big impact on the financial services industry in recent years. While much of this has been positive there are also concerns about how well equipped these innovative enterprises are to deal with money laundering and fraud. In fact, concerns have been so loud that the Financial Conduct Authority (FCA) carried out a review last year into this burgeoning market and found some big problems, including a lack of focus on AML solutions. The FCA also identified that while these new firms might be agile and dynamic in terms of products and service, they also had some serious issues in areas like adequate checks when onboarding new customers - sometimes income and occupation weren't checked at all, for example. AML solutions and customer risk frameworks were found to be minimal, or non-existent, in some enterprises.

Financial crime is a problem so oppressive, and global, that regulators are really cracking down, even on newer businesses such as challenger banks and fintech firms. Monzo, for example, is currently being investigated by the FCA for AML breaches and last year N26, an online bank, was fined more than £3.5 million for delaying reporting suspicious activities by the German financial regulator. It's clear that new businesses often lack infrastructure and this is what makes it possible for fraud to be perpetrated and vital anti-money laundering checks to be overlooked. However, there is very little leeway now for organisations, new or otherwise, so it's vital to have effective AML solutions in place.

This is something that Lucinity has been working to help every business achieve, no matter where in the world they might be or how new the organisation is. Lucinity's software is simple and user-friendly, designed to be effective and efficient so that firms can genuinely reduce their potential exposure to financial crime. The necessity of AML solutions isn't going away - in fact, it's likely to become even more pressing in the coming months as regulators continue to crack down. The Lucinity platform provides an accessible solution for smaller and medium sized businesses - as well as large corporates - whether the goal is to become more effective with respect to transaction monitoring or to be able to achieve a more holistic view of customers. Not only that but using the Lucinity platform also has other benefits for businesses, including a whole range of productivity improvements.

Challenger banks, fintech firms and businesses all over the world now use Lucinity's software to create more effective internal AML solutions. The business was founded in 2018 and has grown into a global network with offices in Brussels and Reykjavik, London and New York. Grounding the Lucinity culture in key values has been a vital part of the process of ensuring consistent vision and growth. This began with the desire to create a product that actually makes life simpler for businesses, as opposed to adding to the complexity and size of compliance burdens. In addition, the firm's values include shared intelligence, the pursuit of excellence and combining both human and artificial intelligence attributes. Businesses can experiment with the platform to see precisely where the benefits are how this will work for them.

About Lucinity
Lucinity is an anti-money laundering (AML) software developer on a mission to Make Money Good. Lucinity aims to solve productivity and efficiency issues for financial institutions through the company's 'Human AI' approach, a toolset that combines next-generation AI with human insights and expertise.

By leveraging AI, the AML software learns from every interaction and continues to improve indefinitely, providing fewer false positives and saving time. This is on top of its best-in-class interface and visualizations that put users first. Professionals can experience Lucinity's AML compliance solution, including transaction monitoring, through a free demo environment available on

Lucinity operates globally, with headquarters in Reykjavík, and serves customers ranging from Tier-1 banks to FinTechs.

Company Quote
Founder and CEO, Guðmundur Kristjánsson, comments, "Lucinity's unique experience in banking, compliance, regulation, and data science has helped us develop a new approach to tackling money laundering—harnessing the best of human intelligence and augmenting it with advanced AI.
Our simple-to-use systems work with analysts, not against them, complementing their skills and making them superheroes so they can take on financial crime, saving institutions time and money in the process.

We believe that by transforming AML, we can have a tremendous positive impact on society. Money laundering is a crime that fuels crime. That is why we set out on the mission of Making Money Good."

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Lucinity is an AML software company, founded in 2018, with offices in Reykjavík, New York, London and Brussels. Using advanced AI systems, we help banks discover money laundering and really know their customers, more efficiently – to stop the funding of serious crime across the world.