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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/05\/23\/ballerine-brings-open-source-to-banks-risk-and-identity-decision-making\/<\/a><\/br> A new startup is launching out of stealth today with $5 million in seed funding as it looks to bring its flavor of open source to risk decision-making software in the finance sector.<\/p>\n Ballerine<\/a>, as the startup is called, helps banks, fintechs and similar financial organizations automate key decisions around their KYC<\/a> (know your customer) and KYB<\/a> (know your business) obligations, including verifying the identity and associated risks of doing business with a particular person or company. The platform ingests data from websites, social networks and company registries (e.g. the SEC<\/a>), sanctions credit agencies and PEP<\/a> databases, among other global sources, and integrates various tools to support customer onboarding, underwriting and transaction monitoring.<\/p>\n For example, an online bank will no doubt want to onboard new business customers with minimal friction, but it has to balance this \u201cneed for speed\u201d with their duties to adhere to relevant regulations, ensuring that they\u2019re not taking on a business that may be prone to fraudulent activities. When a business customer tries to open an account, they will usually have to provide information such as addresses, legal names, registration numbers and so on. The bank can then connect Ballerine\u2019s API to its internal systems, with Ballerine then running the bank\u2019s customer data through all its own databases to verify the business.<\/p>\n \u201cThe goal here is to verify that the business is legitimate and that the people opening the account or applying for the loan are authorized to do so,\u201d Ballerine co-founder and CEO Noam Izhaki explained to TechCrunch. \u201cThe bank doesn\u2019t need to integrate or commercialize directly into any of these databases, it all goes through one integration to Ballerine.\u201d<\/span><\/p>\n However, Ballerine goes beyond verification to assess the specific risks, too.<\/p>\n \u201cThis might involve checking if the business or its owners appear on any government watchlists, or if their behavior patterns match those of known fraudulent actors,\u201d Izhaki continued.\u00a0<\/span><\/p>\n Other use-cases might include underwriting, where a business is applying to a bank for a loan. Ballerine analyzes the business\u2019s financial data including credit history to establish what risks there may be in lending it money, and can help the bank decide the terms of the loan based on the associated risk factors. This monitoring is continuous, too, even after a business has been onboarded or received a loan as the risk landscape may evolve over time.<\/p>\n Founded in 2022, Ballerine raised a small venture round last year off the back of its participation<\/a> in Y Combinator\u2019s (YC) summer program. Today sees it announce a $5 million seed investment led by Israel\u2019s Team8, with participation from YC, Vera Equity and a slew of angel backers.<\/p>\n
\nBallerine brings open source to banks\u2019 risk and identity decision-making<\/br>
\n2023-05-23 22:30:32<\/br><\/p>\n