In this interview, ZignSec CEO Glenn Mac Donald highlights the company's position as a leader in the RegTech sector, specializing in identity verification and compliance with KYC and AML guidelines. The business model is centered on providing efficient solutions for remote onboarding and due diligence. The company's future prospects are emphasized through a strategy focused on geographic expansion and investments in AI and LLM technologies to meet evolving market needs and drive growth.
Welcome, Glenn. Can you tell us about yourself and the journey you took that led you to the position of CEO of ZignSec?
My journey to becoming CEO of ZignSec has been shaped by extensive experiences in the financial services sector, deeply rooted in technology, leadership, and innovation. With over two decades in the field, I've played a pivotal role in the FinTech revolution, focusing on global payments and strategic innovation.
Before leading ZignSec, I held significant roles, including Chief Commercial Officer at International Card Services and COO at Dimebox, enhancing my expertise in payment systems and business growth. At Adyen, as Senior Vice President of Global Cards Acquiring, I focused on global enrollment and maintaining key relationships within the payment ecosystem. My role at ING Bank as Head of the Knowledge Center further developed my approach to innovation and customer-centric product development.
Transitioning to ZignSec as Chief Sales Officer, I gained insights into operational challenges and market dynamics, preparing me for the CEO role. My career reflects a commitment to technological advancement and solving market needs, driving ZignSec's growth and modernization.
Who are ZignSec, and can you briefly tell us about your operations and business model?
ZignSec AB operates within the RegTech sector as a part of a collective that includes ZignSec, Web Shield, and Wyzer. We specialize in identity verification services and ensuring adherence to KYC (Know Your Customer) and AML (Anti-Money Laundering) guidelines. Our subsidiary, Web Shield, provides KYB (Know Your Business) solutions to payment processors, while Wyzer facilitates the necessary technology. Our business strategy revolves around offering companies solutions to efficiently manage remote onboarding, due diligence, and compliance with KYC and KYB standards. These solutions are designed to be trusted, expert-driven, and to add value both presently and in the future. Our pricing model includes monthly fees, transaction fees, and in some cases, setup fees for more intricate projects.
What makes ZignSec unique versus the competition in the market?
ZignSec distinguishes itself through a wide and qualitative range of products in identity verification, merchant onboarding, and compliance solutions. Our ability to offer a collection of solutions covering a wide range of industry needs, together with our expertise and focus on innovation, enables us to offer a full-stack compliance solution to a wide range of industries.
How do you expect to grow in the coming years, based on your history combined with where you stand today?
Our growth strategy is anchored in expanding our geographic footprint, particularly emphasizing Europe, LATAM, Africa, and Asia, to capitalize on the growing Total Addressable Market (TAM) for KYC and KYB services in these regions. This geographical expansion is underpinned by a strategy that leverages sales channels, digital marketing, and strategic partnerships to reach a broader customer base, which is crucial for our aim to break into new markets.
Continually pushing our marketing and sales efforts and invigorating our product offerings align with our strategic objective to attract a broader customer base. Our focus on operational efficiency and team growth, aiming for workforce optimization and technological advancements, will streamline processes and reduce costs.
We plan to invest significantly in innovation, particularly in AI and LLM technologies, to stay ahead of compliance challenges and meet the evolving needs of the market. This innovation focus is expected to drive substantial revenue growth and enhance our market position in the banking, e-commerce, and healthcare sectors, leveraging our historical performance and current positioning as a foundation for future expansion.
Considering the aforementioned strategies that will be implemented over the coming years, our ambition for the year 2027 is to achieve a net revenue of 20 million euros.
In light of the recently published quarterly report, could you comment on the most salient findings and their significance for ZignSec’s future growth prospects?
The latest quarterly report shows both progress and challenges. While we were disappointed to see a dent in our growth trajectory, our key achievements include improvements in our cost structure and efficiencies in our technical infrastructure. These advances are fundamental to our long-term growth and stability, as they enable us to invest more in innovation and market expansion.
You have improved costs but at the same time suffered setbacks in growth. What would you say the main reasons are?
The main reasons for the setback in growth are externally driven, such as delays in projects and challenges in the market. We have actively worked to reduce costs by optimizing our workforce and technology platform, which is important to maintain our competitiveness and flexibility in difficult times.
You recently launched an AI-enabled solution to analyze, monitor, and extract data from merchants' websites. Please tell us more about this and what you expect for long-term results?
This solution is part of Web Shield’s core value proposition. With this AI-enabled advanced web crawler, we can extract and process data in a way that was not possible before, streamlining risk management and compliance even more for our clients. In the long term, we expect this solution to contribute to higher-quality results and fewer false positives, which will improve our customer relationships and set us apart from the competition.
I should note that the solution is currently in the pilot phase with a prominent Dutch payment service provider and will be gradually rolled out to other existing clients and new customers.
In recent years, the company has carried out three acquisitions. How have you worked during the acquisition process, and how do you intend to strategically continue to grow through acquisitions?
At ZignSec AB, our acquisition strategy focuses on enhancing market position, diversifying products, and achieving strategic synergies. Currently, we are concentrating on integrating recent acquisitions rather than pursuing new ones, ensuring they align with our long-term goals and enhance our offerings.
While not actively seeking new acquisitions, we remain open to opportunities that match our strategic objectives, technological capabilities, and geographic expansion, particularly in digital identity solutions. We maintain a disciplined approach to acquisitions, emphasizing due diligence, strategic fit, and efficient integration to support our growth and stakeholder value.
Finally, what is ZignSec's main focus for 2024, and where do you see the company in 3 years?
For 2024, our focus is on improving our financial health and optimizing the use of our resources, expanding and diversifying our customer portfolio, and promoting innovation and collaboration through joint marketing initiatives. We also plan to modernize our technology stack and clean up legacy code. In three years, we see ZignSec as an even stronger player in the RegTech sector, with an expanded global presence and an even more diversified and satisfied customer base.
We thank Glenn Mac Donald for the interview and wish the company the best of luck on their journey.
Disclaimer:
This is an interview that has been done on behalf of the company. Impala Nordic or people behind Impala Nordic owns no shares in the company at the time of the interview. // Detta är en intervju som har gjorts på uppdrag av bolaget. Impala Nordic eller personer bakom Impala Nordic äger inga aktier i bolaget vid upprättandet av intervjun.