Kore, a RegTech SaaS platform that expedites regulatory compliance for large financial institutions, has secured just under £2.4m in funding. The funding has been provided by members of Wealth Club through the Enterprise Investment Scheme (EIS), with the round being heavily oversubscribed.
The UK financial services industry is currently undergoing one of the most significant regulatory transformations in recent years with the introduction of the FCA’s Consumer Duty. This reform greatly impacts the operations of regulated firms, as it now requires them to maintain a complete audit trail encompassing the entire life cycle of each financial product they offer.
Unfortunately, around half of these firms are not prepared to incorporate these changes due to limitations in their outdated technology and systems. However, failing to comply with these regulations can result in costly fines and significant damage to a firm’s reputation. Consequently, the RegTech market is experiencing rapid growth and is projected to reach a value of US$28.33 billion by 2027.
Kore, the first dedicated SaaS platform for end-to-end product lifecycle management in financial services, is uniquely positioned to capitalize on this opportunity. The company offers a cost-effective and compliant solution that assists financial firms in effectively harnessing complex and fragmented data, consolidating it into a digital audit trail across all products and functions, all in one central location.
Kore stands as the sole industry solution providing true regulatory oversight for senior managers, a cross-product management tool for specialists, and an intuitive product hub for frontline users.
Sabrina Del Prete, CEO of Kore, stated, “Having worked in financial services for more than 30 years, I am keenly aware of the challenges brought about by new regulations. Establishing a comprehensive audit trail for every financial product a company offers is an incredibly complex task that legacy technology systems struggle to handle.”
Gayle Bowen, Head of Direct Company Investments at Wealth Club, expressed, “Kore is an exceptionally promising company. Its technology has become ‘mission critical’ for financial institutions dealing with regulatory changes, and the company is led by highly experienced industry leaders who possess deep relationships with many leading banks, insurance companies, and wealth managers. Sabrina’s vision and timing have propelled Kore toward rapid adoption and a fast-growing stream of recurring revenues. This investment in Kore serves as a prime example of a commercially compelling EIS investment capable of producing outstanding returns.”
Since its launch in 2019, Kore has been generating revenue and has achieved a year-on-year revenue growth rate of 100% through its scalable and profitable recurring business model.
Kore’s Chairman, Phil Smith, previously served as the Global Managing Director of Barclays Wealth Management and founded Embark Group, which was acquired by Lloyds last year for £390m. The team is further strengthened by Darren Carter, former Chairman of Peel Hunt, Sally Clark, former Chief Internal Auditor for Barclays Group and current Non-Executive Director of Citibank, and industry expert John Live, who has held senior positions at the FCA.
Established in February 2016, Wealth Club has grown to become the largest non-advisory broker of tax-efficient investments, including VCTs, EIS, and inheritance tax portfolios. Since its inception, over 11,000 clients have invested more than £1.1 billion through its platform.
