Regulatory technology (regtech) company Kyckr (ASX: KYK) has signed up Germany’s second-largest bank, Commerzbank, as a client on a $100,000 contract to use the company’s Kyckr for Business portal in the UK.
The development supplements a recent extension of services being rendered to Citi Commercial Bank in exchange for US$300,000 (A$463,000), despite the gruelling conditions created by COVID-19.
As a clear indication that client sales revenues remain robust, Kyckr also reported that in April, it had achieved its “highest monthly revenue to date” of $260,000, up 39% on the prior year.
The surge in revenue was attributed to “continued demand for anti-money laundering and countering terrorist finance measures in the market,” Kyckr’s chief executive officer Ian Henderson said.
Closer to home in Australia, Kyckr is harnessing resellers such as Illion to boost adoption of its platform while alleviating pressure on direct sales.
Assisting banks with financial regulation
Currently, Commerzbank facilitates as much as 30% of Germany’s total foreign trade and stands out as one of the clear market leaders in German corporate banking.
The bank offers its sector expertise to corporate clients globally and also provides capital market products to individuals and institutions – a suite of services that requires strict adherence to Know Your Customer (KYC) procedures stipulated by regulatory agencies such as Germany’s Federal Financial Supervisory Authority (BaFin) and the UK’s Financial Conduct Authority (FCA).
Given the bank’s global operations are conducted under the oversight of financial regulation being deployed on a national level, the bank is constantly facing regulatory challenges because of the inconsistent patchwork of global regulation.
By extending its existing relationship with Kyckr, Commerzbank expects to improve its ability to screen clients and intermediaries in a far more expedient and efficient fashion, as well as making the process cheaper compared to its previous pay-as-you-go (PAYG) agreement.
In a statement to the market this morning, Kyckr announced the newly signed annual contract would commence immediately following Commerzbank’s previous testing of Kyckr’s customer verification platform on a PAYG basis.
The new contract effectively extends the regtech company’s relationship with Commerzbank to an annual contractual commitment that will see the bank utilising the Kyckr for Business Portal, with a service value of at least $100,000 over the first 12 months.
According to Commerzbank, Kyckr’s technology will be used to provide automatic access to primary source data and documents during customer verification, primarily for Commerzbank’s operations in the UK.
“We are extremely pleased that we have extended our relationship with Commerzbank through a longer-term contract. The agreement is a further demonstration of the market need for Kyckr’s Know Your Customer products for the financial services sector and builds on the relationships we have been developing with some of the world’s largest banks,” said Mr Henderson.