Mitek Acquires HooYu, Aims to Improve the Customer Verification System

The San Diego-based Mitek has acquired HooYu, a KYC and customer onboarding company from the UK. Thanks to the acquisition, Mitek clients will be able to confirm the real identity of their customers by linking database checks and biometric verification.

Mitek’s Betting and Gambling Operators Will Reap the Benefits

HooYu’s and Mitek’s solutions will be merged and thanks to that fact, numerous businesses that work with Mitek, will be able to easily verify the identity of their customers. A large number of Mitek’s clients are betting and gambling operators; these are businesses that put a major emphasis on player verification as a way to make sure that they prevent underage gambling or any potential fraud.

Mitek sees this as a very important merger due to the fact that the rise of NFTs and cryptocurrencies as well as the tight regulation means that criminals will be more open to various illegal activities such as money laundering. That’s why it is important for fiscal businesses, gambling and betting operators included, to strengthen their verification processes.

Max Carnecchia, the CEO of Mitek Systems, stated that the company’s “geopolitical, commercial and technological environment” is the perfect solution for anyone who is thinking of committing fraud. He also added that the best way to combat these challenges is by using artificial intelligence and preventing bad transactions from happening, rather than acting after it is too late.

HooYu Was Purchased for $117.4 Million in Cash

The cost of HooYu’s acquisition was £97.8 million ($117.4 million) and Mitek paid that amount in cash. With the purchase, Mitek will gain access to all of HooYu’s solutions and products, one of which is HooYu ID. The CEO of HooYu, Keith Marsden, stated that a platform that is configured by KYC is now a necessity in the digital world.

He added that HooYu’s solutions, combined with Mitek’s technology in terms of liveness, identity, and biometrics simplifies the process of verification for financial businesses. With the merger, Mitek is convinced that its provisions will be strengthened and the customer verification system will be extremely effective.

An effective KYC system has become essential for gambling operators across the world as regulations are becoming stricter. Authorities are adamant about making sure that the rules are not breached and money laundering is prevented. Recently, Kindred’s brand Unibet was issued a warning by the Danish regulator over KYC and AML breaches.

Sweden is also one of the countries that take these matters extremely seriously. Back in August 2021, the Swedish Gaming Authority (Spelinspektionen) issued a $3.62 million fine to Mr. Green for failing to comply with anti-money laundering regulations and KYC issues.