A really interesting company at the right space at the right time, but can management execute?

Identiti is one of the lowest weighted companies in my portfolio but it has potential to become an important player for the regtech ecosystem. AUSTRAC, ASIC and APRA are all hunting the big 4 banks, and with legacy infrastructure there are bound to be further compliance issues as well as more illegal activities. The banks are hiring big 4 firms like KPMG to monitor email chains between client and bank reps to detect compliance breaches. Banks are forced to do it, otherwise further fines. Still cannot believe mom and dad investors think banks are safe investments. There is growing demand from regulators and customers to see more information about financial transactions. Identiti is one company that try to bridge the gap between demand and capability. The big banks have legacy silio systems and would much prefer to offload the risk to a 3rd party like identiti. 

From the image below, you can see the yellow/orange bar that interface with payment, customer, operational and reporting silos to regulatory requirements. The regulator request complete transactions and want up to date reports. Banks don't have connected compliance infrastructure, so the reports they submit either have missing information or inaccurate. We saw this in late 2019 with Westpac. I predict something similar would repeat if they can't integrate their compliance systems. Thus, this is where Identiti could come in and be an intermediary layer between banks and the regulator. 

The big question is on execution and that's why I have a low weighting on the portfolio. Stephen Porges for instance recently Resigned as the Chairmain appointee after 1 month at the company. More importantly, the Co-founder Nick Armstrong stepped away for the next growth phase of the company. It is not a good sign to see a Co-Founder become a non-executive director at such an early stage. Despite this Nick is the largest shareholder under "275 invest 2". Also Nick gets paid more than the current CEO - John Raynor. Hence, these shennanigans has deterred me away quite a bit from making any substain increases to the portfolio. The irony though, is that identiti is solving a ciritical problem in the banking industry. There's also goddam Regal funds invested in Identiti, I can't seem to get away from their short selling haha.