France-based finance manager for SMEs and self-employed Qonto has selected Netherlands-based regtech Fourthline as its technology solution for customer onboarding. Through this, Fourthline provides its solution for the verification of customer compliance during onboarding for Qonto’s users in France, Spain, and Italy.

Fourthline developed its technology suite to allow financial services providers to perform Know Your Customer (KYC) and Anti-Money Laundering (AML) processes automatically and in compliance with local requirements and regulations. Considering the current environment, where local demands tend to vary between countries, even within the EU, and qualified electronic signatures (QES) are more widely used, Fourthline positioned itself to adapt its solutions to the requirements of regulators throughout Europe. The capabilities provided by Fourthline influenced Qonto to leverage the company as its partner for onboarding its customers in France, Italy, and Spain. Qonto has access to all technological building blocks through a single API, including examination of identity documents, authentication of electronic signatures, analysis of biometric data, and use of Fourthline’s optical character recognition (OCR) model to detect any potential manipulation.

Currently, Qonto serves more than 400,000 customers, contributing to the conception and development of more than 120,000 businesses. Representatives from Fourthline stated that as regulations continue to evolve on a country-by-country basis, the complexity for international banks and fintechs also increases. Fourthline’s single API focuses on diminishing this complexity by providing all the components needed to comply with local regulations.

Moreover, the collaboration between the two enterprises supports the development of both Qonto and Fourthline in the French market, as well as in Europe overall. Fourthline’s previous developments and collaborations With its operations launched in 2017 in the Netherlands, Fourthline intends to support regulated companies in solving digital identity difficulties. The company’s customer base includes Trade Republic, flatextDEGIRO, Solaris, N26, and NN, among others.

Due to its KYC and AML technology, as well as its compliance experts, Fourthline can check thousands of new customers daily. The company carries out 200 checks in real-time, verifying identity documents, biometric data, application location, and global sanctions lists. According to company data, Fourthline can detect 60% more fraudulent activities with enhanced accuracy.

In addition to onboarding, the company provides identification, verification, authentication, filtering, or re-engagement solutions, with customer interactions being simple and convenient. To advance its development strategy, Fourthline entered multiple collaborations in recent months, including one with Scalapay at the beginning of October 2023. Through this partnership, Scalapay solidified its commitment to regulatory compliance by acquiring a technology capable of guaranteeing compliance over time and adapting to the changing European regulatory environment. Furthermore, in July 2023, Fourthline partnered with Hawk AI to merge its KYC-compliant customer onboarding with the latter’s transaction monitoring to eliminate fraud and money laundering. The collaboration between the two companies allowed clients to expand internationally, safely, and efficiently in the fast-changing regulatory landscape.

By joining forces, Fourthline and Hawk AI provided an end-to-end solution that spanned from customer onboarding to monitoring customer relationships. .