The Identitii Ltd (ASX: ID8) share price is 6% higher on Monday following the announcement of a newly granted patent approval in the US. This approval will cover the company's global ecosystem for secure sharing of financial transaction information, and is a key part of its intellectual property protection strategy.
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What is Identitii?
Identitii works with financial services businesses to improve how they use data to inform financial crime compliance and risk decisions, without replacing legacy systems. This aims to reduce the regulatory burden and costs for financial institutions while ensuring compliance is complete and accurate.
The company's approach brings multiple legacy systems together into a single platform, creating a complete and audible record of events related to a transaction. Financial institutions may use this to enhance deliverables such as AUSTRAC reporting, managing correspondent banking relationships, and foreign exchange transaction information.
US patent approval
The patent covers Identitii's secure financial information sharing ecosystem. The company sees this approval as key in increasing its competitive advantage and defensibility in this space, while potentially generating new revenue streams.
The technology that underpins the patent is the backbone of the company's correspondent banking solution, which enables institutions all around the world to securely share information for Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance.
Identitii CEO, John Rayment has described this event as a huge milestone for Identitii, adding:
…it helps safeguard our business from competitive threats and protects our strategy of building a connected ecosystem for financial information, without replacing existing systems. There is also the potential to licence the technology to other players, generating additional revenue.
Identitii share price performance
The Identitii share price was largely dormant up until 24 August, when the business signed a significant deal with Mastercard. This saw its share price jump as high as 125% to 43 cents before closing at 40% higher at 27.5 cents.
Its shares have trended lower with a $4 million placement taking place on 26 November at 14.6 cents per share. The US patent announcement has pushed the Identitii share price 6% higher to 17.5 cents at the time of writing.
