YEO Messaging taps ReconIQ to enter US banking market

YEO Messaging has partnered with ReconIQ to expand its identity verification technology into the US banking market, giving the British company a route into financial institutions through a sector-focused consultancy.

Under the arrangement, ReconIQ will lead YEO Messaging's US banking strategy and introduce its platform and software development kit to retail and commercial banks, payments providers, fintechs, crypto providers and wealth management firms.

YEO Messaging offers a continuous identity verification system that uses facial recognition and liveness detection throughout a digital session, rather than checking a user only at login. Biometric processing takes place on the user's device, with no biometric data transmitted, stored or retained by the financial institution.

The US push comes as banks face rising losses from account takeover and impersonation fraud. YEO Messaging cited Federal Reserve data showing US account takeover losses reached USD $15.6 billion in 2024, up from USD $12.7 billion a year earlier.

The company argues that fraud in digital banking is no longer limited to the initial login stage. Its approach is designed to confirm that the authorised account holder remains present throughout a session, including during sensitive account activity and high-value transactions.

US focus

ReconIQ advises banks and other financial institutions on reconciliation strategy, operational change and technology selection. The partnership places the advisory group at the centre of YEO Messaging's efforts to win business in a market where financial firms are under pressure to improve fraud controls without introducing new data-handling risks.

The initial focus includes customer authentication in digital banking, crypto platforms and other areas where firms want stronger checks on account control. The companies are already in discussions with several North American financial institutions.

For YEO Messaging, the move marks another step in its international growth. Its technology is already used in secure communications, government settings and business environments, and the company is now seeking to build a larger presence in financial services.

Continuous authentication has gained attention as banks reassess whether one-time checks at sign-in are enough to counter modern fraud tactics. Criminals increasingly use account hijacking, impersonation and AI-assisted social engineering to gain access to accounts or influence customers during live sessions.

That has increased interest in tools that monitor identity throughout a transaction rather than only at the point of entry. At the same time, banks and regulators remain cautious about collecting and retaining biometric information, making on-device processing an important part of the debate.

Alan Jones, Chief Executive Officer and Co-Founder of YEO Messaging, outlined the company's view of the tie-up.

"Our partnership with ReconIQ gives YEO a highly credible route into the U.S. banking market, supported by deep sector knowledge, established financial services relationships and an independent advisory model that banks already trust," said Jones. "That combination is exactly what is needed to introduce continuous identity verification into a market where fraud prevention, customer trust and privacy governance are now closely connected."

Marc McCarthy, Founder and Chief Executive Officer of ReconIQ, said the shift to digital banking had changed how customers use financial services, but not the basic authentication model.

"Digital banking has transformed how consumers interact with financial institutions, but authentication has largely remained a single point-in-time event," said McCarthy. "As fraud becomes increasingly sophisticated and AI-powered impersonation attacks continue to evolve, financial institutions need confidence that the same trusted customer remains in control throughout every transaction with the proof points needed for governance."