New York-based regtech LeapXpert has secured another US$22mn in funding to help fintechs and financial institutions navigate the regulatory implications of messaging services like WhatsApp, iMessage and WeChat.
Clients increasingly expect businesses to offer customer service through these channels, but that creates a potential conflict within the compliance and privacy policies of financial institutions and enterprises. In September, the SEC and CFTC fined several Wall Street banks $2bn for not properly monitoring their employees’ use of WhatsApp for business. Now there are fears more cases could follow.
A soon-to-be-released report from LeapXpert suggests that compliance technology, which can be used by businesses to regulate their employees’ use of such platforms, is only now beginning to catch up with their widespread use.
LeapXpert’s $22mn Series A extension was led by Rockefeller Asset Management through its Technology Ventures Group, with additional investment from Uncorrelated Ventures, the Partnership Fund for New York City, a new strategic investor, and existing investors. It comes a year after the unveiling of an industry-first iMessage communication capture solution, and 17 months since the company’s original Series A fundraise.
It will use the latest round of funding to meet growing demand for its platform from the financial services sector and accelerate expansion into other industry verticals.
LeapXpert looking to ‘grow its reach’ within the US
Chris Randazzo, Managing Partner of Rockefeller’s Technology Ventures Group, says: “LeapXpert is a market and innovation leader that has gained broad traction and validation in the financial services industry, as they expand their offering and their reach globally. In a post-pandemic world, connecting with clients through their preferred communication channels has become a business mandate. Financial institutions, in particular, have accelerated their digital transformation to meet the increasing regulatory requirements related to communication.”
Salil Deshpande, Founder and General Partner at Uncorrelated Ventures, adds: “Customers should be able to use iMessage, WhatsApp, SMS, Signal, Telegram, WeChat or whatever [channel] to interact with their service providers. Financial institutions and other service providers should be able to communicate with those customers using Slack, Teams or whatever else, while still respecting security, compliance, regulations, and governance. LeapXpert is really the only solution.”
“Today marks a significant milestone for LeapXpert’s growth journey,” says Dima Gutzeit, Founder and CEO of LeapXpert. “As we look to further enhance our product offering and grow our reach in the United States, we are excited to partner with Rockefeller Asset Management, Uncorrelated Ventures, Partnership Fund for New York City, and a new strategic investor. Our goal is to set the global standard for responsible and flexible employee-customer communications, and with this funding, we are one step closer to achieving our vision.”