Regulatory technology (Regtech) firm Encompass has reportedly won a £2 million grant from the Scottish Enterprise, in order to create an artificial intelligence (AI)-enhanced engine to complement its existing know-your-customer (KYC) product offering.
The latest funding is part of an initiative with a total value of £4.9 million (appr. $6.38 million), which will result in the creation of 33 new data science and support jobs, based in London.
Encompass’ management noted that AI development will assist clients in accurately determining risk-relevant information about their companies and investment portfolios, from a wide-ranging set of data.
Paul Lewis, managing director at Scottish Enterprise, stated:
“We have a long-standing relationship with Encompass, having supported the development of its initial KYC product and the company’s growth in Glasgow. It’s great to see it now branching out into this new area of AI with its adverse news screening tool – for which there is a strong and immediate market demand – while at the same time bolstering Scotland’s already-strong reputation for RegTech innovation and creating more skilled, high-value jobs.”
Wayne Johnson, co-founder and CEO at Encompass, noted that his firm was pleased to have received the grant, which will allow them to “carry out crucial, timely work.”
Johnson added that currently there’s strong demand in the space for this type of solution,, and this development will be instrumental in helping his firm in continuing to “bring innovative solutions to the market and our customers.”
First Minister Nicola Sturgeon, who confirmed the grant, said that Encompass is among several other multinational firms that have “chosen to locate and steadily expand their operation making Scotland an attractive place to grow its business.”
“From its Glasgow base, the company has access to markets, a supportive business environment and has been able to identify local talent from Scottish professionals in the engineering and software development sector.”
Encompass will use the funds raised to create AI software tools that will help firms in the financial industry to reduce operational risks involved with meeting compliance requirements and regulatory standards.