Sydney-based fintech Data Zoo has secured $35 million (US$22.7 million) in external funding for the first time. The investment was led by Ashok Jacob’s investment firm, Ellerston Capital, through its JAADE fund, known for its backing of startups such as Mable, Camms, and Phocas. This funding round has propelled Data Zoo’s valuation to over $100 million.

Data Zoo specializes in providing know your customer (KYC) identity verification solutions for major financial institutions, payment providers, and fintech startups. Their software, developed by founder Tony Fitzgibbon and chief information officer Memoona Anwar, utilizes patented technology to enhance KYC compliance and prevent fraud. Notably, it minimizes costs and risks for businesses while prioritizing customer privacy by eliminating the need for identity data storage.

After serving as CEO for a decade, Fitzgibbon stepped down in February this year, with former London Stock Exchange executive Charlie Minutella assuming the CEO role from New York. Despite being bootstrapped since its inception in 2011, Data Zoo has expanded to over 80 employees globally and operates across 10 offices worldwide, including in Australia, New Zealand, Singapore, the US, and Europe.

The fresh capital injection will be directed towards driving adoption and innovation in Data Zoo’s ID verification software, which accesses identity data from over 170 countries. Among its notable clientele are a Big Four Australian bank, a global social media brand, and three of the top global payment providers.

Fitzgibbon highlighted the growing threat of fraud and identity theft, stressing Data Zoo’s role in providing efficient and secure identity verification solutions. He expressed pride in the company’s innovation, user experience optimization, and growth in a competitive market.

Ellerston JAADE investment director David Leslie commended Data Zoo’s impressive international expansion and its establishment as a trusted identity provider. He expressed confidence in supporting Data Zoo’s continued growth in the identity verification industry, acknowledging its remarkable achievements without prior external funding.

Source: startupdaily.net

Klarna, a leading Swedish financial technology firm, announced on Tuesday that nearly 90% of its extensive workforce, totaling 5,000 employees, now actively incorporates generative artificial intelligence tools into their daily tasks.

The company, renowned for its innovative installment payment solutions, disclosed that over 87% of its staff utilize generative AI tools, including OpenAI’s ChatGPT and Klarna’s proprietary AI assistant, in various capacities. Notably, non-technical departments such as communications (92.6%), marketing (87.9%), and legal (86.4%) exhibit the highest adoption rates, demonstrating the broad utilization of generative AI within Klarna.

Surpassing broader corporate trends, Klarna’s adoption of generative AI significantly outpaces the industry norm. A Deloitte survey revealed that only 61% of computer users employ generative AI programs in their daily workflows, sometimes without managerial oversight.

Klarna’s internally developed AI assistant, dubbed Kiki, has also seen widespread adoption, with 85% of employees actively engaging with the chatbot. Notably, Kiki handles an average of 2,000 queries per day, showcasing its integral role in streamlining internal processes.

Generative AI tools, such as OpenAI’s ChatGPT, play pivotal roles across various departments within Klarna. For instance, the communications team utilizes ChatGPT to assess the sentiment of press articles concerning the company. Similarly, Klarna’s legal department leverages ChatGPT Enterprise to expedite contract drafting processes, significantly reducing the time required to produce contracts.

Selma Bogren, senior managing legal counsel at Klarna, emphasized the efficiency gains enabled by AI tools, noting that contract drafting, which previously consumed an hour, can now be completed in just ten minutes with AI assistance.

Klarna has strategically positioned AI as a cornerstone of its operational efficiency drive, particularly amidst efforts to enhance profitability following significant layoffs in 2022. Despite a decrease in valuation, Klarna credits AI adoption for contributing to its first quarterly profit in four years. The firm’s AI chatbot alone reportedly saved $40 million by effectively handling the workload equivalent to 700 full-time customer service jobs.

However, Klarna’s success with AI has raised concerns among investors, as evidenced by a nearly 20% decline in shares of French outsourcing giant Teleperformance. Investors fear that AI advancements may disrupt traditional call center operations, impacting profitability in the future.

Source: cnbc.com