RegTech startup FrankieFinancial has signed Australian neo banks Xinja and Novatti Group to its financial systems aggregator platform, which provides a single point of access to ID verification, KYC, AML, fraud and credit tools from 114 vendors and data sources.
Founded in 2017, the company, formerly known as Frankie, initially began as a challenger bank, before pivoting to a software provider after identifying a larger market demand for its back-end platform, which brings together multiple sources including VixVerify, Experian, LexisNexis, ThreatMetrix and Mogo to provide a single source of compliance tools.
The firm is pitching the product to greenfield banks as a means of simplifying their IT estate, and to established brands struggling with multiple back office legacy systems.
Xinja Bank CEO Eric Wilson says: “We are excited about using Frankie’s platform to maintain our zero legacy state. Connecting the best of breed technologies and reducing cumbersome interdependencies to ultimately service our customers better is perfectly aligned with Xinja’s mission.
FrankieFinancial CEO Simon Costello points to recent research by Ripple Insights, which showed that globally, 70% of banks’ IT budgets are spent on maintaining legacy systems.
“The rise of neo banks in Australia has been lead by consumers’ dissatisfaction of banks being unable to do seemingly basic tasks. Customers who apply for credit cards or mortgages are often frustrated when the bank asks for a 100 point check and statements even when they’ve been a customer for 15+ years.
“It’s not that banks aren’t aware of these inefficiencies or poor customer experience, it’s that they’re hamstrung by legacy systems that don’t communicate well, store data in silos and are expensive to maintain.”