The Dutch neobank Brand New Day has adopted the transaction monitoring and compliance solution of Sentinels to scale its anti-money laundering (AML) controls in tandem with its own growth.
Since obtaining its banking licence five years ago, Brand New Day has accumulated around 200,000 customers, for whom the bank manages nearly €4.5billion (£3.8billion).
With this, the bank reports how it naturally sought out a compliance partner that could provide the appropriate regtech; something it found in Sentinels.
According to the neobank, its selection has resulted in increased efficiency, the reduction of operational and resource costs and the creation of an internal compliance department.
Further resources are saved through Sentinels’ automated development of client risk profiles. These provide Brand New Day’s compliance officers with an overview of customer activity, enabling the neobank to focus on required due diligence measures.
“Neobanks like Brand New Day are committed to disrupting conventional wisdom to create stronger services, making them an increasingly popular choice for end-users,” comments Joost van Houten, CEO of Sentinels.
“However, this disruption comes with intense regulatory scrutiny, particularly for those operating using their own banking licenses.”
Working together, Brand New Day and Sentinels are trying to challenge ‘typical’ compliance assumptions by sharing determined best practices.
False positives will apparently be one area of major focus for the duo, being one of the most prevalent issues facing financial businesses across the globe, and many arise from internal compliance infrastructure. For example, early £3billion is wasted every year chasing false fraud leads.
Gerjan de Lange, CIO at Brand New Day, adds: “We’re excited to be working with Sentinels, benefitting from its industry-leading position and commitment to providing workable and futureproofed compliance solutions that are tailored to our core business goals and processes.
“We look forward to growing together, safe in the knowledge that our regulatory needs are being met, that false positives will not increase exponentially as we scale, and that our operational costs are kept low while our internal compliance standards are high.”