Encompass named ”˜RegTech Partner of the Year’
Scotland-based Encompass won RegTech Partner of the Year’ at this year’s British Bank Awards.
Now in its eighth year, the awards, run by Smart Money People, recognise top financial products and innovation based on more than 81,000 votes.
This recognition comes after Encompass was selected as a category finalist in both 2021 and 2020.
Wayne Johnson, CEO and co-founder of Encompass, said:
We’re thrilled, and proud, to have been named as RegTech Partner of the Year at this year’s British Bank Awards.
Being chosen as the overall winner among such strong competition demonstrates not only our impact across the banking sector, but also the loyalty of our customers, who voted for us.
2022 is shaping up to be a strong year for our business globally, and we have big plans for growth in the months ahead, as we continue to work with and for our expanding customer base.
Jacqueline Dewey, CEO of Smart Money People, added:
With the awards 100% voted for by consumers and no judging panel, the British Bank Awards truly reflect the best of the UK banking industry, and the commitment and engagement these organisations have from their customers.
This year, our winners range from the newest firms in the market to well-established household names, illustrating the breadth and depth of the UK’s financial services market across many sectors. We’re absolutely delighted for our winners but also hope that these awards serve a higher purpose in helping consumers and businesses make more informed choices about who they trust with their hard-earned money.
Snugg® wins place on Lloyds Banking Group Launch Innovation Programme
Scottish fintech and high growth start-up Snugg® has been chosen to join the 2022 cohort of the Lloyds Banking Group Launch Innovation Programme.
Run in partnership with FinTech Scotland, the Launch Innovation Programme offers ambitious fintech companies like Snugg® the chance to run a proof of concept in partnership with Lloyds Banking Group. Sixteen fintech firms from across the UK and Europe have been selected to take part in the programme this year.
The Launch Innovation Programme focusses on three key strategic challenges facing Lloyds ”“ achieving sustainability goals, supporting colleagues in a post-pandemic world, and improving customer’s financial lives. With a mission to make energy efficient homes simple and affordable for everyone, the Snugg® application to join the programme focused on sustainability and helping the financial lives of Lloyd’s customers.
Private sector finance from banks like Lloyds is going to play an increasingly important role in the net-zero transition over the coming years. Only one in eight of the 17 million privately owned homes in the UK currently meet the energy efficiency standards needed to reach net-zero by 2050. The Snugg® platform plans to make the process of making energy efficiency changes to homes simple. Using sophisticated data science, it will develop a tailored plan and provide users with access to the grants, green finance and trusted installers to make the sustainable home improvements they need.
The fintech companies taking part in the programme have ten weeks to refine and test their innovative solutions to the challenges set by Lloyds. Working in collaboration with Lloyds, each firm has direct access to sponsors and mentors in the bank, as well as business development support, clinics and externally run business masterclasses.
Co-Founder and CEO of Snugg®, Robin Peters, said: “Taking part in the Launch Innovation Programme gives us an incredible opportunity to test our home energy efficiency platform with one of the UK’s biggest banks.
Over the course of ten weeks, the programme gives the selected participants access to business leaders, designers, industry experts and mentors. We’re delighted to have been selected to take part in the programme which we believe will help take Snugg® to the next level.”
MyIdentity and Improving Identity Verification
Department for Digital, Culture, Media and Sport (DCMS) and the Digital Identity & Attributes Trust Framework (DIATF)
The Government wants to improve how digital identity is done and demonstrate what a good’ digital identity should look like. As such, the DCMS has made a number of commitments to create a framework for what a good digital identity should look like. They will establish a Governance function to own these rules and make sure that they are followed and develop proposals to remove legislative and regulatory blockers’ for the use of secure identities, whilst ensuring the protection of citizens.
Underneath the DIATF are a number of identity schemes. Each aligned to the DCMS Framework and working to ensure interoperability, as each scheme will have their own nuances to meet the specific needs of its sector.
Etive have been working on the design and development of a scheme for the home buying and selling process since 2018, followed by two rounds of public funding, first from Scottish Enterprise and then Innovate UK.
Is there a problem with identity in the home buying and selling process?
The home buying and selling process is a long transaction built on trust between relying parties – estate agents, conveyancers, brokers and lenders. Each is regulated differently and works to often competing standards and consequently each is not allowed to trust and rely on the identity verification (IDV) carried out by the other.
This has resulted in consumers having to prove their identity up to 5 times through the process, often using different information at different times. This causes great frustration, friction and cost for consumers, as well as relying parties. As one consumer responded, ID checks are currently a joke, I have provided 12 different forms of ID and problems with them all’.
We should also not forget that due to events since 2020, with less face-to-face interactions, there is a greater reliance on digital IDV methods and property and mortgage fraud continues to rise.
MyIdentity Trust Scheme & Regulations
The solution is the development of a trust scheme enabling a consumer to get the IDV done once, which they own, and can share to all relying parties.
The MyIdentity scheme is based on the principles of the DCMS Framework and the Good Practice Guide 45 (GPG45; How to prove and verify someone’s identity). To ensure compliance with Anti-Money Laundering (AML) and compliance for firms, AML regulations were updated in 2019 enabling firms to use an IDV carried out by a certified third party so long as ”¦it is accredited or certified to offer the identity verification service through a governmental or industry process that involved meeting minimum published standards’.
These third parties are identity service providers (IDSPs) and since January 2022 approximately 45 organisations are going the DCMS certification process. Liability has also shifted onto these IDSPs.
Financial Services and MyIdentity
The MyIdentity scheme is participating in the FCA’s regulatory sandbox, enabling firms to test innovative offerings in a live environment and provides FCA regulated firms with the protections that they need to embrace the Government and MyIdentity standards.
MyIdentity is also working through UK Finance to work to get MyIdentity into a position that lenders will accept a MyIdentity IDV and how financial organisations can re-use these IDV’s for all financial services, a re-usable identity, a DCMS objective.
Further work is being done to help remove the blockers for other cohorts involved in the sales process such as conveyancers and brokers who rely on the lender’s handbooks’ from both UK Finance and the Building Societies Association (BSA).
MyIdentity Outcomes
The Beta stage of the project is testing processes and technology looking at improved IDV standards, regulation of providers and greater protections for consumers and the industry.
If we look at Norway, for example, when they developed their trust network, BankID, fraud reduced from 2% of financial transactions to 0.00042% and mortgage lending times reduced to 1 day.
Great work is being done by the industry, coming together, to help improve the process of home buying and selling, also a policy objective of The Department for Levelling Up, Housing and Communities (DLUCH).
Fintech Aiming to Help Businesses Access Cash Faster
A new Fintech, Saltare, has just launched with the ambition to help businesses improve cashflow, strengthen supply chain relationships and give more certainty over payments.
Saltare is headquartered in Bristol and employs people around the UK including Scotland. It was created because 82% of businesses fail through difficulties of accessing cash (there is currently a whopping £200bn tied up in unpaid invoices). Saltare is about incentivising buyers to pay early, and in giving them the tools and reasons for doing so.
The solution comprises mobile-led technology to allow buyers to manage their entire supply chain in a way that works for them and their key suppliers. Saltare will address the needs of some of the more challenging sectors and industries, where extended supply chain are the norm (public sector and local authority bodies through to retail and construction).
Chief Executive Anthony Persse says:
“By shifting the debate away from the negative commentary around late payment’ and moving it towards a more positive conversation about early payment’, we will do much more than simply improve payment performance. We will help create more jobs, deliver greater levels of investment and generate deeper social value with long-term sustainability at a time when the country needs it most.”
“Our mission is to develop a series of tools that bring the certainty of payment, and the certainty of cashflow, that support both ends of the supply chain. Bigger than this, our mission is to change the mind-set of businesses once and for all, to embrace a new approach that is simple to make, and yet will have positive consequences for future generations”
Encompass appoints Steve Hadaway as Chief Revenue Officer
Encompass, the leading KYC automation platform, just announced it had appointed Steve Hadaway as its Chief Revenue Officer.
Hadaway joins Encompass after over 15 years in senior management positions at FICO. More recently, he was Vice President & Managing Director, EMEA, and drove the regional strategy, leading a team of 200 employees and serving more than 50 markets worldwide.
Steve Hadaway is taking on a very important role for the firm as he will head up its revenue-focused functions, including Direct Sales, Strategic Alliances and Marketing.
The news follows twelve months of significant growth in revenue and new accounts, including global banks, as well as the addition of specialist industry experts to the business across the UK, Europe, Asia-Pacific and the US.
Encompass also recently announced a capital raise of £25m. This will be used to accelerate its international expansion plans, which have included office openings in New York and Amsterdam.
Wayne Johnson, CEO and co-founder, Encompass, said:
“We are delighted to welcome Steve to Encompass. His vast experience of working with major financial institutions and steering impressive business growth will be invaluable as we continue to expand at a rapid rate.
“This will be a crucial year for us as we work to enhance our impact across all regions, developing our product and business to bring on new customers and better meet the needs of those existing to us, and we are pleased to have someone of Steve’s calibre join in this capacity at what is an incredibly exciting stage.”
Steve Hadaway added:
“It is such a thrill to be joining Encompass at this exciting stage of their evolution. They have built an extraordinary platform to help banks fight financial crime, ensure compliance and deliver enhanced customer experience through automated and digitised customer journeys.
“The numerous client successes to date have been impressive and I see a great deal of potential still for the business, and for our clients. It is also rewarding to be joining a company where growth is built on a positive culture of customer-led innovation, employee collaboration and empowerment. I am so excited to get started.”
Interview with a fintech that pitched in the Den
Following her appearance on Dragons’ Den, Fintech Scotland member Sheila Hogan, founder and CEO of digital legacy vault, Biscuit Tin, shares her experience of her time in the Den and what it was like pitching to such a high profile and successful group of entrepreneurs
Sheila, well done for your appearance on Dragons’ Den. Can you tell us what drove you to apply for the show?
I had originally applied to take part in Dragons’ Den in 2020 and was approached about being in the show in 2021. The process for getting in front of the Dragons is a lengthy one, involving an application, video pitch and interviews with a researcher who then presents your case to the executive team. Just getting to be on the show felt like an enormous achievement.
I applied for the show because I wanted to propel awareness of Biscuit Tin, it’s purpose and mission to a global audience, whilst hopefully securing investment from one of the Dragons’. I had my hopes pinned on Deborah Meaden. Given her own personal experience I knew Biscuit Tin would resonate, and she holds a strong belief in businesses with purpose and as a force for good. I knew getting on Dragons’ Den would be the chance of a lifetime and would help me to achieve my vision of establishing Biscuit Tin as a leading global household brand for end-of-life planning and digital legacy within the next five years.
Despite a great pitch, you didn’t manage to get a dragon on board. What do you feel was the main reason?
At the time of filming, I was a pre-revenue tech company with a business profile that simply did not align with the Dragons’ individual investment strategies.
Is pitching in the den very different from pitching anywhere else?
Knowing my pitch was going to be aired to potentially millions of people on prime-time TV, meant that my Dragons’ Den experience was always going to be quite unlike any other pitch or speaking engagement that I’d ever had to do over my forty-year career in IT, change and project management. And so, it proved to be. Stepping out of the lift and into the studio where the Dragons were sat was one of the most nerve-wracking, but exhilarating times of my life. In the Den, there was an intensity to my pitch that I’d not experienced before. Knowing the pitch could be edited in any way the producers chose, which I had no control over, meant that I was more nervous on the night the episode aired than I was before the pitch! The one thing it did have in common with pitching to others, is that with any set of potential investors the key thing is to make a meaningful connection with them. In the Den I knew I had to give the performance a lifetime and I did everything within my control to be ready and prepared for filming on the day.
What learnings do you take away from your appearance on the BBC show? Would you do it again?
I would absolutely do it again. I wouldn’t want to miss such a golden opportunity. On my journey to the Den, I learnt so much. All the preparation was invaluable and has stood me in good stead for pitches to other investors. Since filming I have secured £330,000 investment from Velocity Capital, Scottish Enterprise, and a private investor. In fact, some of the feedback I received from the Dragons’ made me even more determined to succeed!
Whilst no money came from the dragons, you recently announced a successful £330,000 raise. What did you investors see that the dragons didn’t?
The investors we pitched to were specialist tech investors, who understand the financial profiles of tech startups. They saw the potential of Biscuit Tin and were not phased by the losses we experienced in the first couple of years of the business, as this is standard for a tech start-up. Biscuit Tin was simply better aligned to their experience and strategies.
What will this fresh investment allow you to do?
This investment will allow the business to gain significant traction through key hires and product development. I am more than equipped and determined to take the business to the next level. We are moving ever closer to achieving my dream of making Biscuit Tin a global household brand, to live in a world where planning for end of life is the norm, and where we all have virtual’ biscuit tins containing digital legacies to hand down the generations.
What are the next big milestones for Biscuit Tin?
The next big milestones are to engage with as many users as possible, coupled with valuable partnerships, so we can empower as many people as possible to get organised. We will be working to develop Biscuit Tin further, to provide product features that reflect the needs of our customers.
I am delighted to have been selected as part of the cohort of Scotland’s top twenty up and coming tech companies travelling to Silicon Valley with StartUp Grind in April. Funded by the Scottish Tech Ecosystem Fund, the trip will bring together Scotland’s top startups and scale ups with more than 3,000 of the world’s best.
Fintech Encompass Corporation raises £25m
Scotland-based Encompass Corporation, the provider of intelligently automated KYC solutions, just announced a capital raise of £25M.
The investment comes from a group of investors led by Perennial Partners who were joined by Serendipity Capital, Seven Seat Capital, and Microequities Asset Management as well as existing shareholders including Alan McIntyre, former Global Head of Banking Services at Accenture, and Tim Frost, ex-Chairman of IHS Markit, as well as experienced technology investor Ray Scott.
This new funding round will help accelerate Encompass’ global growth as well as facilitating ongoing product innovation and development in at their Glasgow office as well as other locations. Glasgow. This follows a significant growth in revenue recorded in the last year.
Roger Carson, co-founder at Encompass commented:
“Today’s funding will help fuel Encompass’ rapid global expansion, especially as we make inroads in North America, with operations driven from New York, and continue to expand our presence in Europe.
“Expanding to new markets will add greater value to our business in a way that better serves existing customers and attracts additional global banks as new customers. We are excited to have new and existing investors support Encompass’ acceleration, expansion and vision to continue to be recognised globally as the leading provider of automation to the corporate KYC due diligence market.”
Sean Harpur, co-founder at Serendipity Capital
“Encompass’ successful funding represents the increasing value of solutions that digitise and automate regulatory screening and due diligence for the corporate KYC market.”
“Designed to help banks simultaneously create a better customer experience and mitigate compliance risk at scale, we believe Encompass is exceptionally well-positioned to deliver in these areas for global banks, becoming the recognised global standard across RegTech, AML and KYC.”
Today’s news follows a round of funding in 2020, as well as Encompass’ expansion into North America in late 2021.
Clearwater to Drive Growth for Athora Holding Ltd.
Scottish fintech Clearwater Analytics just announced that Athora Holding Ltd., a leading insurance and reinsurance group, had selected them to support their growth strategy, streamline the operating model and provide a consolidated view of accounting, regulatory, and operational reporting across all entities.
Shamira Mohammed, Group Chief Accounting Officer, Athora said:
“Athora is a fast growing, acquisitive insurer and reinsurer. We wanted a solution that could help us on-board acquisitions and portfolios quickly, manage increasing regulatory requirements, and enable a quick view of our investment portfolio across multiple markets. Clearwater’s SaaS solution met our needs perfectly. Clearwater brings industry best practices through their single instance platform and an impressive operations team that understand the needs of the insurance market. Clearwater has the technology, processes, and innovative thinking to support our vision for the future.”
Gayatri Raman, President, Europe and Asia, Clearwater Analytics said:
“We are seeing significant consolidation across the insurance and investment management industries. With that comes the need to be able to quickly aggregate data from multiple sources and then turn that data into information that can be used to drive decision making. Clearwater brings best-in-class technology and managed services to Athora so they can fully focus their efforts on growth. We are delighted to partner with Athora.”
Why Origo is supporting the Research and Innovation Roadmap
Origo has been delivering technology solutions for the UK financial services market for over 30 years. We are proud of that history and also proud to be an Edinburgh-based company, contributing to the economies of both Scotland and the UK.
“With the technological innovations happening in the world today, and the opportunities they offer, this is probably the most exciting time in our history.
“Open Finance Data, which is one of the four themes of the Roadmap ”“ the others are climate finance; payments and transactions; and financial regulation ”“ is one example of the innovation taking place in financial services. Amongst other things, it will enable people and businesses to have more control over their finances by making it easier for them to access their financial information.
We see the value of this type of access every day at Origo. Our technology enables the industry providers to access pension and investment information and by evolving through Open Finance we can use this capability to enable individuals to directly access their information.
To this end, we are partnered with Capgemini to supply the central digital architecture for the Pensions Dashboards Programme, which will enable pension holders to easily access all their pension details in one place ”“ action that is vital for individuals planning for the future and for retirement.
But technological innovation is not restrained by geographical boundaries, so it is important that UK FinTech continues to innovate and push the boundaries, within the highly regulated environment in which we work.
This is about the future of finance, the way people engage with money, their savings and investments. The FinTech Scotland Research and Innovation Roadmap will help enable industry-led collaboration to provide a practical pathway to accelerate the development of FinTech and open up opportunities across the financial services industry as well as the broader economy in Scotland and the UK.
We are proud to be part of this forward-thinking and practical initiative.
White-Box code generator launched by Pace
In order to provide a high level of sensitive data protection and application attack resistance, the US-born fintech located in Scotland Pace Anti-Piracy, launched its White-Box Works, a next-generation EMVCo-evaluated White-Box code generator.
This level of in-house control also promises to increase operational efficiency for Banks, payment service providers (PSPs), schemes, and other financial institutions, since they can develop their application in accordance with their internal schedules. They can also use, replace and update their deployed encryption keys and algorithms at will, with no need to re-engage PACE Anti-Piracy, or any other third-party vendor, to do so.
White-Box Works offers a great way to avoid sophisticated attacks such as reverse engineering, fault injection, and advanced statistical analysis.
Allen Cronce, CEO of PACE Anti-Piracy, Inc said:
“Statistical Analysis attacks are the bane of all white-box encryption protection solutions. We are very proud to be equipping the financial services industry with a solution capable of addressing these and other vulnerabilities. White-Box Works represents a significant step forward in the encryption protection space, and will give banks, PSPs, schemes, and other financial sector users greater confidence in the security of their sensitive data. We’re also delighted to accompany the launch with news of White-Box Works’ EMVCo SBMP evaluation certificate and are grateful to Riscure’s talented penetration testers. The entire Riscure team has been a pleasure to work with throughout the rigorous EMVCo evaluation process.”