iDenfy , a global regtech offering AI-based identity verification and fraud prevention tools has announced a partnership with UK-based fintech specialising in Islamic finance Kestrl . iDenfy’s ID verification, AML screening, and PoA verification tools are to help ensure compliance for the fast-growing ‘Muslim Money App’ while enabling efficient and simple customer onboarding.

Identity verification and what the iDenfy – Kestrl partnership entails As per the press release information, by implementing iDenfy’s fully automated identity verification and anti-money laundering (AML) checks, Kestrl looks to build trust with its customers, with iDenfy claiming that it helps users gain confidence that their financial transactions are secure and compliant with Islamic principles. What is more, as Kestrl grows, iDenfy’s fraud prevention tools will help them scale. iDenfy is set to be responsible for handling increasing volumes without compromising accuracy, whether onboarding new customers or verifying existing ones.

iDenfy’s AML checks help Kestrl screen users against global sanctions, known criminals watchlists, and politically exposed persons (PEPs) databases, which is essential in meeting regulatory compliance and preventing money laundering risks. Additionally, iDenfy’s address verification service will help Kestrl ensure that customers provide valid and current addresses, which is necessary both for regulatory compliance and effective communication with customers. Through the partnership with iDenfy and the usage of its advanced capabilities, Kestrl will be enabled to obtain proof of a user’s identity, validate their address, and conduct AML checks in an efficient manner.

Having these procedures automated is believed to result in cost savings for the company and reduce fraud risks by eliminating the need for time-consuming manual compliance checks. When commenting on the announcement, iDenfy officials stated that Islamic fintech is no longer a niche and they are looking forward to collaborating with Kestrl, a company that values honest investments and caters to the needs of an extensive customer base that is looking for a compliant, ethical, banking alternative. Islamic finance and Kestrl’s role Prior to launching the app, Kestrl officials state that they conducted a nationwide survey to assess the demand for an Islamic banking solution and understand whether individuals prioritise having their banking practices align with their religious beliefs.

The key issue identified was a lack of awareness among people regarding Islamic banking options, yet the survey showcased an actual need from those people who are practising Muslims. Today, the ‘Muslim Money App’ by Kestrl is a tool that assists users in achieving their financial goals, leveraging machine learning to analyse their banking data and create monthly budgets, automate savings, and provide personalised investment recommendations. Available both as a retail app and as a software solution for banks looking for digital transformation, Kestrl helps facilitate investments in publicly traded companies while ensuring compliance with Shariah standards, informing users of their alignment with Islamic financial principles.

Typically, traditional banks allocate 70% of their funds towards lending, a profit-generating practice, which Kestrl claims is considered a ‘big no-no’ for Muslims. What is more, traditional banks oftentimes invest in various industries, including cryptocurrencies, which further raises concerns due to the industry’s connection to speculative-type behaviour. Such financial practices can be challenging to avoid in the current landscape, and the Kestrl – iDenfy collaboration aims to have this addressed.

For more information about iDenfy, please check out their detailed profile in our dedicated, industry-specific Company Database. .