Compliance consultancy FSCom divests RegTech solution to PwC

07 November 2018 3 min. read

Big Four firm PwC has acquired KYC-Pro from FSCom for an undisclosed fee. The RegTech solution focuses on Know Your Customer (KYC) compliance, helping clients to automate their regulatory proceedings.

Know Your Customer’ (KYC), is part of anti-money laundering regulations which force banks to source significant levels of information to verify the identity of its clients. The measures have been labelled a game changer by many across the banking sector, but in a time when financial services providers are expected to be as customer friendly and rapid-acting as possible, they also present a unique administrative challenge. To this end, RegTechs have increasingly been deployed by banks to help expedite the process of on-boarding new customers via automation, smart pre-filling, and other mechanisms.

FScom is a boutique consultancy business that specialises in the provision of regulatory and compliance solutions to financial services institutions. Established in 2011, the firm is headquartered in Belfast with offices in London and Dublin. FScom has since developed a reputation for delivering advisory services to financial services companies across the UK and Ireland, particularly those operating in the payment services and e-money sector.

Amid the booming demand for regulatory technology solutions, FScom’s RegTech offering in particular has attracted attention from the professional services sector’s largest players. Following a bid from PwC, FScom has completed a move to divest from KYC-Pro, which will now be used to bolster and expand PwC’s regulatory compliance offering. This comes ahead of predictions that by 2020, European banks will spend more than €1 billion annually on their KYC management.

Compliance consultancy FSCom divests RegTech solution to PwC

KYC-Pro is a platform which enables customers access to over 127 million companies worldwide, while conducting individual AML checks across more than 20 countries. It also boasts meticulously designed APIs and a user-friendly dashboard which improve the customer experience. What really set KYC-Pro apart from the crowd, however, is that unlike many RegTech solutions, KYC-Pro was been developed by compliance experts, as it combined FScom’s deep knowledge of financial services regulation with the best databases and intuitive technology.

The deal completes for an undisclosed fee, and enables PwC to incorporate KYC-Pro into its existing regulatory compliance offering, complementing the significant presence the firm already has in the financial crime operations space. FScom was advised during the transaction by Richard Moorehead of HNH Group and Davidson McDonnell Solicitors. 

Commenting on the sale, Philip Creed, Director at FScom said, “The rapid expansion of the FinTech industry and continued changes in regulation require that we focus our efforts on our core consulting business. Through PwC, KYC-Pro has the potential to become a global brand, that offers compliance officers peace of mind both in terms of its accuracy and regulatory compliance.”
PwC partner, Ian McConnell added, “We are always on the lookout to invest in cutting-edge technologies which help our clients to grow their businesses… Not only will this service deliver clients significant financial savings, it will also free people to become more productive. This is part of our responsible technology policy which focuses on maximising positive impacts whilst minimising any negative ones.”

Related: PwC joins forces with American immigration lawyers.