The global market for facial recognition and antifraud services in 2017 is estimated at $ 17 bln, of which about 30% or ~ $ 5 bln is allocated to the niche of identification and verification. The funds will be used for product development and expanding into European and US markets.
Sum&Substance, creator of online solutions for identification and verification of customers, partners and employees using advanced artificial intelligence technologies has attracted seed round investments from UCP Investment Group (owner Ilya Sherbovich) and the Flint Capital venture capital fund.
Independent RegTech developer Sum&Substance has created intelligent solutions for identifying and verifying customers, partners and employees online. The company’s flagship product – the IDensic platform – provides instant identity confirmation of users seeking to register with online services using computer vision, neural network data mining and other machine learning algorithms. The IDensic system scans documents for traces of tampering – retouching or photoshopping – identifies photographs of manually forged documents, and cross-checks document photos with the user’s own face on Selfie. Currently IDensic is able to recognize documents from 180 countries. User data is secured with cryptographic technology for data transfer in compliance with international and local regulatory standards. The Sum&Substance solution also conforms to Russian legislation 152-FZ specifically in relation to online security.
ID verification tools such as the IDensic platform and other Sum&Substance solutions are critical components of financial risk management and brand security strategies for Russian and international companies. These automated solutions instantly improve the efficiency of existing internal security measures in a variety of scenarios. For example, many fintech organizations require solutions for digitizing mandatory primary customer audits as part of internal compliance measures and state regulatory requirements for AML / KYC. In other industries, in particular e-commerce and online service providers – bookmakers, dating platforms, car rental services, rideshare platforms or in-home service providers – need instant confirmation of client identities to drastically reduce the level of fraud and increase trust among the users of such services.
The seed funds received by Sum&Substance will be used for further product developments, to integrating legal due diligence operations for working with foreign financial companies, to strengthen company market positions in Russia and to expand business geography to the CIS, Europe, and the United States.
“We have known the Sum&Substance team for more than three years,” commented UCP investment group partner Victoria Lazareva. ”They’re professional, ambitious and energetic entrepreneurs. Among their customers there are such well-known companies as Gett, beepCar from Mail.ru Group, YouDo, YouDrive, Cryptopay, The Token Fund, Zerion, Nousplatform, Tokenbox, etc. We believe that the remote user verification market has a great future and are confident that the company has tremendous growth potential both in Russia and abroad.”
“Our technology helps solve an important problem for humanity – a total mistrust on the Internet,” said Sum & Substance CEO Andrei Severyuhin. ”Our solution is very in great demanded by a variety of businesses. Remote confirmation of the authenticity of user identity documents and the ability to accurately verify whether such documents are real or falsified or even evidence in an identity theft crime – a key aspect of vetting potential clients, partners or employees. Sum&Substance technology is also a very useful for any company developing an online business presence. The market for RegTech and compliance technologies is one of the fastest growing worldwide. Many organizations are obliged by state laws to identify customers in a variety of ways to maintain their licenses and accreditation. For other companies, using rapid remote verification technology to confirm user identity offers a competitive advantage – the introduction such capabilities minimizes fraud, reduces time for user verification and has a significant positive impact on reputation.”