Dutch Fintech company Fourthline, which specializes in identifying customers for prominent neobanks and trading apps, has secured €50 million in venture capital funding. The company's client list includes notable European Fintechs, and Fourthline uses artificial intelligence (AI) to authenticate users for companies like N26, Western Union, Trade Republic, Scalable Capital, Vivid, Qonto, and more. While Fourthline does not disclose specific numbers, it claims to have authenticated "millions of identities." The startup, founded in 2017, operates with 270 employees in Amsterdam and Barcelona.
Fourthline aims to provide a seamless customer identification process for digital-savvy end-users, adhering to regulatory requirements, cost-efficiency, and a user-friendly experience. However, AI-driven solutions face the challenge of striking a balance between swift customer verification and preserving user privacy. Fourthline states that it detects financial fraud with an accuracy rate of 99.98%, using its proprietary technology designed to adapt to increasingly complex financial criminal activities. The company's long-term goal is to streamline identification processes so that customers do not need to verify themselves multiple times when opening accounts with different Fourthline clients. Currently, the same customer may need to go through the identification process multiple times, such as when signing up for accounts with both N26 and Trade Republic. Fourthline aims to enable users to have a single profile with the provider they can use to sign up for various Fintech services. However, achieving this goal may require political changes within the European Union.