Fenergo Acquires Regtech Firm Sentinels for an Undisclosed Sum

In a major deal in the regtech space, Fenergo, a provider of digital solutions for know your customer (KYC) and client lifecycle management (CLM), has acquired Sentinels, which is an artificial intelligence-based technology provider for anti-money laundering (AML) transaction monitoring.

Announced on Monday, Fenergo is aiming to strengthen its end-to-end software-as-a-service (SaaS Software-as-a-Service (SaaS) Software-as-a-Service (SaaS), is defined as a subscription-based software licensing model that is nested through external servers. Generally accessible through an Internet connection, SaaS requires users to log into the system by using credentials such as a username (or email) and passwords. One of SaaS’s biggest advantage would be that users aren’t required to download software onto their devices but rather only require an Internet connection to gain program access. While many trading platforms Software-as-a-Service (SaaS), is defined as a subscription-based software licensing model that is nested through external servers. Generally accessible through an Internet connection, SaaS requires users to log into the system by using credentials such as a username (or email) and passwords. One of SaaS’s biggest advantage would be that users aren’t required to download software onto their devices but rather only require an Internet connection to gain program access. While many trading platforms Read this Term) offering with the acquisition. Its clients can directly access the services of Sentinels.

“Our shared goal of aiming to solve the increasing compliance and operational challenges facing financial institutions made Sentinels an ideal fit,” said Marc Murphy, the CEO of Fenergo. “By adding transaction compliance to our existing client onboarding and product origination solutions, financial institutions can monitor and review client behavior and identify risks on an ongoing basis.

“This blended approach to financial crime makes us perfectly placed to address the rising compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term challenges faced by financial institutions more efficiently.”

Demand for Regtech Solutions Is Increasing

Sentinels was launched in 2019 and is offering cloud-based services for transaction monitoring. The company promises behavioral client risk profiles and the detection of financial crime with a higher accuracy level.

In addition, its services will benefit from the acquisition as it can scale rapidly, increase its global footprint and strengthen offerings for financial institutions.

“With compliance costs surging to unsustainable levels, being blindsided by increasingly sophisticated criminal activity is simply not an option. It is, therefore, imperative for financial institutions to break through data siloes and start assessing client risk holistically across KYC and transaction monitoring,” said the Founder and CEO of Sentinels, Joost van Houten.

“The combined force of Fenergo and Sentinels will ensure leading financial institutions and the fintech disrupters are best equipped to navigate the complex regulatory environment and fight financial crime.”