Signicat has strengthened its digital identity portfolio through the acquisition of Sphonic. The move is in keeping with Signicat’s broader acquisition strategy in the past few years, which has already led to the acquisitions of Encap, Dokobit, Electronic IDentification, Idfy, and Connectis since 2019 alone.
Sphonic itself is based in London, and was founded in 2012 to provide clients with automated risk management tools. The company’s Workflow Manager makes it easier for businesses to comply with regulatory obligations, insofar as they can use the platform to build custom workflows and set their own priorities when interacting with customers. For example, Sphonic clients can set their risk tolerance during onboarding or during a transaction, and that, in turn, allows the platform to make more of its decisions automatically.
The Sphonic platform analyzes factors like credit and affordability when making a decision. The platform is popular with financial institutions and the gaming industry, and allows organizations in both sectors to meet their Know Your Customer and Anti-Money Laundering requirements. It also speeds up onboarding times to provide a better customer experience.
As far as the acquisition is concerned, Signicat is purchasing all shares in Sphonic for an undisclosed amount of money. Sphonic’s current shareholders will have an opportunity to reinvest in Signicat, while Sphonic Founder and GM Andy Lee will stay on as Signicat’s new Country Manager for the UK. The rest of the Sphonic management team will be given similar senior management roles with their new company.
“We are excited to become part of the Signicat family” said Lee. “We are ready to accelerate our ambitions in new markets and verticals and creating a compelling joint global solution.”
“With digital fraud continuing to rise globally, it has become critical to know that your customers are who they claim to be,” added Signicat CEO Asger Hattel. “With Sphonic’s leading team of professionals and their data orchestration and decisioning platform, we will be able to offer a more extensive range of onboarding services with highly flexible risk and compliance solutions – all of which can keep international customers safe from fraud.”
Sphonic will operate as a separate entity for the immediate future, but will eventually be folded into Signicat at large. Signicat, meanwhile, is hoping to provide European clients with a full end-to-end identity and fraud prevention solution that covers every stage of the financial lifecycle. The company recently reorganized its executive suite to advance its international expansion, while Sphonic formed a channel partnership with IDnow in November.
April 26, 2022 – by Eric Weiss