Established in 2018, indó is the first neobank to operate in Iceland. It was created to restore faith in the banking system by being open with customers about how their money is used. The company received its Icelandic banking license in February 2022, the first new license issued in more than 30 years, aiming to capitalize on the country’s highly digitalized banking market where 95% of the population uses an electronic ID, banking apps, or digital currencies. It is looking to emulate the success and significant international growth of challenger banks in the UK and Nordics.

The announcement comes during a busy period of expansion in Iceland for Lucinity, which now serves more than a quarter of the Icelandic market after Arion Bank selected Lucinity to provide its AML solutions in November.

Lucinity’s AML platform leverages artificial intelligence (AI) to augment human expertise, allowing compliance teams to make smarter decisions faster and enjoy modernized AML processes. Lucinity’s approach of creating augmented intelligence, combining the best of technology and human insights, has helped various banks and FinTechs increase their compliance productivity by more than 50%.

indó will use Lucinity’s Transaction Monitoring to provide its compliance team with behavior-based risk screening and explainable artificial intelligence. Transaction Monitoring also enables AML teams to receive a manageable caseload and enjoyable user experience. Lucinity’s Case Manager offers indó contextual data visualizations, resulting in data-driven decision-making and boosting efficiency and productivity.

In selecting Lucinity, indó was looking for a compelling AML solution that could integrate seamlessly into its existing technology and scale along with its rapidly growing customer base.

“We are a new contender in the banking space, and we were looking for a modern solution that can support our ambition and standards,” says Haukur Skúlason, indó’s CEO. “Lucinity is not merely a vendor but a partner, capable of matching our tech stack and agile way of working. Lucinity also understands our priorities, including our zero-tolerance policy for money laundering.”

Guðdmundur Kristjánsson, Founder & CEO of Lucinity, says: “We are excited to be partnering with indó to help them realize their mission of restoring trust and regaining transparency in the banking industry in Iceland and beyond.”