Toronto-based OutsideIQ has just been acquired by New York-based Exiger, a company that helps businesses monitor compliances such as money laundering regulations.
OutsideIQ provides cloud-based software that aims to make it easier for banks and other corporations to assess risk and meet regulatory requirements. The company’s DDIQ platform leverages machine learning and natural language processing to automate research and data analysis typically done by workers to enhance due diligence related to investment, third-party, and counterparty risk.
This move…will allow the combined OutsideIQ/Exiger team to seamlessly bring AI solutions to the financial markets with clear, impactful use cases.”
The acquisition is meant to help financial institutions and corporations convert compliance resources, manage large amounts of data, and respond to regulatory demands. While terms of the deal were not disclosed, Exiger said that OutsideIQ’s development team and Exiger’s subject matter experts will work together to use OutsideIQ’s cognitive computing and search platform, DDIQ, to provide solutions that solve financial crime compliance issues like customer, transaction, counterparty, and third-party risk.
“The financial services community clearly sees cognitive computing based solutions as critical to achieving cost efficiency, consistency and global scale in financial crime compliance. Yet, the identification of areas that are ripe for automation and the design of reliable solutions can only be driven by financial crime subject matter experts,” said Dan Adamson, founder and CEO of OutsideIQ and a member of the Ontario Securities Commission’s FinTech Advisory Committee. “We believe that this move solves that dilemma and will allow the combined OutsideIQ/Exiger team to seamlessly bring AI solutions to the financial markets with clear, impactful use cases. This transition is a logical step in our shared view of the dominant role that cognitive computing solutions will play in compliance.”
Exiger’s president and CEO Michael Beber said the acquisition will strengthen the company’s position as a provider of sustainable compliance solutions.
“The banks have been forced to give up compliant as well as non-compliant customers because they haven’t had the solutions to allow them to distinguish between them cost-effectively,” said Beber. “With this acquisition, Exiger is uniquely positioned to implement a solution that meets the compliance demands of regulators and the profitability requirements of shareholders. Our entire Exiger team looks forward to working with Dan Adamson and the entire OutsideIQ team to solve what are clearly, some of our clients’ most important problems.”