The compliance challenge for banks and neobanks

Banks and neobanks operate under the most intense regulatory scrutiny in the financial system. FATF recommendations, EU AML directives, FCA guidance, and national prudential frameworks impose strict obligations across the entire customer lifecycle — from onboarding and periodic review to real-time transaction monitoring and suspicious activity reporting. The volume and velocity of modern banking means these obligations must be met automatically, at scale, without creating friction that damages conversion rates or customer experience.

Traditional compliance stacks were designed for a slower, branch-based world. They batch-process overnight, generate high volumes of false-positive alerts, and require significant manual effort to maintain. For digital banks where customers expect instant account opening and real-time payments, this approach is operationally unsustainable and commercially damaging.

The most competitive banks today treat compliance as a product capability, not a cost centre. Automation that operates at the speed of banking — not the speed of manual review — is the only viable foundation for growth at scale.

How Klarix works for banks and neobanks

Klarix integrates directly into your onboarding flow, core banking system, and payment rails via a single REST API. Each new customer application triggers a parallel set of automated checks — document verification, biometric liveness, sanctions screening, PEP lookups, and adverse media review — all resolved and returned in under 20 seconds. Approved customers reach their account immediately; your compliance team receives a complete, audit-ready record with no manual input required.

Beyond onboarding, Klarix's ongoing monitoring engine watches your entire customer base continuously — re-screening against updated watchlists, recalibrating risk scores as transaction behaviour evolves, and triggering webhooks the moment any customer's risk profile changes. This is the difference between point-in-time compliance and the continuous surveillance regulators now expect.

What's covered

Klarix covers the full compliance lifecycle for banks and neobanks — from first account application to ongoing customer and transaction-level monitoring:

  • Customer onboarding KYC — fully automated identity verification using document OCR, biometric liveness detection, and database cross-referencing across 200+ document types and 190+ countries, with a 98%+ auto-pass rate and median decision time under 20 seconds.
  • AML & sanctions screening — every customer and counterparty screened against 1,500+ global sanctions lists, PEP databases, and adverse media sources at onboarding and on a continuous basis. Covers OFAC, EU, UN, HM Treasury, and 1,490+ regional watchlists, updated in real time — not in daily batches.
  • Transaction monitoring — ML-driven rules engine detects structuring, layering, rapid fund movement, and FATF-aligned typologies across all payment channels in real time. Alerts are generated with full context, reducing manual review burden by up to 60% compared to rule-only systems.
  • Dynamic risk scoring — every customer receives a risk score at onboarding that is continuously recalibrated as new data arrives. A customer who appeared low-risk at account opening will be automatically re-assessed if their transaction patterns change, a director appears on a new watchlist, or adverse media coverage emerges.
  • Ongoing monitoring & re-screening — automated continuous surveillance of your entire customer book, with webhook notifications for any status change. Periodic KYC refresh workflows are triggered automatically based on customer risk tier, eliminating manual calendar-based reviews.
  • SAR generation & regulatory reporting — pre-populated suspicious activity reports drawn from case data, with full evidence bundles exportable to FIU-compatible formats. Audit trails, regulator export packages, and PSD2 / 6AMLD documentation are generated automatically alongside every decision.

Reducing false positives without increasing risk

The most operationally damaging consequence of legacy compliance tooling is the volume of false-positive alerts it generates. Compliance teams at large banks routinely spend the majority of their time reviewing alerts that turn out to be legitimate customer activity. Klarix's risk scoring model uses entity resolution, contextual matching, and continuous ML calibration to reduce false-positive rates by up to 60% — freeing your team to focus on the cases that genuinely require human judgment.

At the same time, our 99.99% uptime SLA across redundant EU infrastructure ensures that compliance operations never become a point of failure. Klarix treats uptime as a regulatory obligation — not just a commercial metric — because a compliance system that goes down is a compliance system that creates regulatory exposure.

Who we work with

Klarix serves banks and neobanks at every stage of growth: early-stage digital banks building their compliance stack from scratch, mid-market challenger banks replacing fragmented legacy tooling, and established institutions looking to automate high-volume onboarding and monitoring workflows. We also support the fintechs, BaaS providers, and technology partners that build compliance infrastructure on behalf of banking clients.