KYC Data-Sharing Venture Trunomi Raises $3M
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Collecting and verifying information about corporate customers is a long, often painful process for banks and clients. Now a number of organizations are aiming to solve the problem with registries that do the low-level grunt work on banks' behalf. But skeptics wonder whether regulators will bless the ideaand if banks are willing to put aside their rivalry for a common purpose.December 18
Trunomi, a startup that aims to simplify account sign-ups and know-your-customer compliance for banks, has raised $3 million.
The company said it will use the proceeds of the funding round to develop its data-sharing technology, which it touts as a way to give consumers greater control of their personal information while eliminating duplicative paperwork.
Trunomi is one of several organizations working on technological solutions for the often conflicting demands of anti-money-laundering regulations and fraud prevention, on the one hand, and privacy, cybersecurity and customer convenience on the other. Other examples include miiCard, a startup based in Edinburgh, Scotland, that creates "digital passports" for consumers to prove their identities, and a Canadian initiative in which people log in to government websites through their banks.
"This round of capital will drive Trunomi's efforts to ensure financial service providers unlock the potential of data, yet in a compliant and efficient manner, through the power of consumer consent," Stuart Lacey, CEO and founder of Trunomi, said in a press release, later adding that "enabling individuals to maintain and share their own Personally Identifiable Information (Pii) is absolutely critical."
Trunomi, which has offices in Silicon Valley, Bermuda and London, offers an enterprise solution that it pitches as a way to speed up customer onboarding. It also has customer-facing mobile and web applications that allow users to control how their personal data is shared with industry participants by giving consent.
"The methodology for interacting with consumer data is shifting," Lacey said, as privacy laws and compliance requirements for financial institutions grow ever-tighter in an era of increasing data security risk.
The round was led by the venture capital firm Saturn Partners. Bill Guttman, a general partner at Saturn, will also join Trunomi's board, the firm announced Tuesday.
Fenway Summer, a firm started by former Consumer Financial Protection Bureau official Raj Date, participated in the round, as did Persistent Ventures and SenaHill Partners.