Bits Technology, a startup focused on enhancing business and customer identity products, has just secured €4 million. The Stockholm-based company now plans fast-track product development.
The identity and anti-money laundering (AML) space, which includes important processes like Know Your Customer (KYC) and Know Your Business (KYB), is a key area for businesses to get right, but, often comes with several administrative challenges.
As financial regulations and digital tech become increasingly complex, there is a growing need for a solution to make customer onboarding seamless and more efficient. Bits Technology aims to tap into this to provide customers with greater flexibility, customisation, and efficiency.
Jonatan Klintberg, CEO & Co-founder at Bits Technology: “At Bits we build for a seamless user journey in the necessary KYC processes – which are fundamental in order for businesses to both convert and comply. By utilising Bits, customers can conveniently access all the necessary data for effectively managing and taking action on their customer and user onboarding. By using Bits’ platform, businesses of all sizes can create a single view over the necessary user information–irrespective of the number of data sources and service providers involved.”
The startup has just secured €4 million to develop its solution. The round was led by Unusual Ventures with additional backing from Fin Capital. Previous backers including Cherry Ventures and Alliance Ventures also participated.
Lars Albright, General Partner at Unusual Ventures: “We are thrilled to partner with the team at Bits Technology as they tackle some of the biggest challenges in the identity and AML space. We see a large and rapidly growing market in this category but winning requires world-class founders with deep expertise. We were impressed by the bold vision and innovative approach of the Bits founders and team, and this is what makes them a perfect fit for our portfolio. We’re excited to support their efforts to bring cutting-edge solutions to market.”
Based in Stockholm, Bits Technology has developed a platform that enables customers to create onboarding flows that can be scaled across multiple markets, without worrying about local compliance regulations or integrating new service providers.
The platform also allows teams to create a tailored onboarding experience and a customer reporting solution for AML and user management. This solution equips teams with collaborative tools in a single view, enabling them to access actionable data, customise rules, assess risk, prevent fraud, and maintain compliance.
The product stands out by eliminating the need for a single provider, providing central visibility and creating customizable solutions.
From a market perspective, identity and AML services present a significant opportunity for growth. According to Bits, the compliance and risk management software market in Europe is expected to be worth $70bn by 2027 driven by factors such as increasing regulatory pressure, rising financial crimes, and the need for more sophisticated identity verification and monitoring solutions.
Following this funding, Bits Technology is launching a suite of products in 2023 for the European market, including a no-code solution and API offering.
