US-based Jumio raised $150 million, which it says is the single largest funding round for a digital ID regtech. Jumio’s platform uses biometrics, machine learning, and computer vision to automate user identity verification and compliance with know-your-customer (KYC), money laundering, and data protection regulations. Jumio serves financial institutions (FIs) across the gamut, from big banks like HSBS to neobanks like Monzo, in addition to online gaming companies and others. The regtech will use the funding to automate its identity verification solutions further and expand its compliance services.
Jumio has enjoyed strong growth as FIs ramp up investments in digital identity verification solutions amid the pandemic.
Regtech funding skyrocketed in 2020, and this will likely continue as FIs face upcoming regulatory challenges. Regtech funding reached $10.6 billion in 2020, more than triple the $3.5 billion raised in 2019. Fellow digital ID providers Onfido and Payfone, for example, each raised $100 million last year, and Jumio’s raise suggests there are no signs that funding activity will slow down this year. Additionally, there are new compliance challenges on the horizon that will further encourage FIs to leverage regtech solutions from the likes of Jumio, generating more growth and funding opportunities. President Biden, for example, will likely impose enhanced data protection standards akin to the General Data Protection Regulation (GDPR) in Europe, per an Insider Intelligence forecast.