Dutch neobank Brand New Day has selected AI-powered transaction monitoring firm Sentinels to help scale its anti-money laundering (AML) controls.
Brand New Day has partnered with Sentinels to build a custom and “future-proof” compliance infrastructure. It hopes the move will lead to increased efficiency through automation and operational and resource cost reductions.
Sentinels says the automated development of client risk profiles will provide Brand New Day’s compliance officers with an overview of customer activity, enabling the neobank to focus on required due diligence measures.
One key focus of the partnership will be false positives, many of which arise from internal compliance infrastructure. Sentinals claims globally almost £3 billion is wasted every year chasing false fraud leads.
Sentinels CEO Joost van Houten says neobanks like Brand New Day are “disruptors”, making them an increasingly popular choice for end-users.
“However, this disruption comes with intense regulatory scrutiny, particularly for those operating using their own banking licenses,” van Houten adds.
Obtaining its banking licence in 2017, Brand New Day now manages more than €4.5 billion for its more than 200,000 customers. As it grows, the neobank says it requires a transaction monitoring and compliance solution that can scale with it.
Brand New Day chief information officer (CIO) Gerjan de Lange says the partnership with Sentinels means that the firm’s “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”.
In April, Irish regtech Fenergo acquired Sentinels for an undisclosed sum to boost its end-to-end Software-as-a-Service (SaaS) client lifecycle management platform.