Kord Launches UK’s First Legal-Only Payment Network to Combat Conveyancing Fraud

Kord has launched Kord Custody, introducing the UK’s first dedicated sort code reserved for verified legal firms to combat conveyancing fraud. By decoupling high-value settlements from traditional banking hours, the FCA-regulated fintech provides a secure, instant payment network that allows solicitors to verify counterparties and move client funds safely at any time, including weekends.

What was announced

Kord Custody is a payment infrastructure designed specifically for the legal sector, operating under the dedicated sort code 04-10-26. The launch aims to solve "Friday afternoon fraud," a vulnerability where large sums are transferred under intense time pressure without a built-in way to confirm that the receiving account belongs to the intended solicitor. Conveyancing fraud resulted in £11.7 million in reported losses during 2024/25, with residential victims losing an average of £78,393.

The network functions by ensuring every account using the 04-10-26 sort code belongs to a regulated firm that has completed Kord’s onboarding and verification process. This allows firms to identify trusted counterparties before initiating transfers. Beyond security, the platform enables instant settlements 24/7, removing the reliance on traditional banking hours that often creates operational bottlenecks during property transactions. The sort code itself reflects the launch date of Sunday, 4th October.

The service is available to all eligible regulated law firms in the UK. Kord Custody integrates with Kord’s existing suite, including Checkboard for client verification, Kord Data for eligibility, and Kord Pay for secure payments. Client funds are safeguarded with ClearBank under FCA safeguarding regulations. The infrastructure supports multiple payment methods, including Faster Payments, CHAPS, and BACS, alongside digital wallets like Apple Pay and Google Pay. Current users of Kord’s platform include Johnson Law Group, Claimsline, and AVRillo.

"Buying a home or settling a major commercial matter should not depend on whether a bank is open. This launch marks the moment that legal transactions leave banking hours behind. Crucially, it provides enhanced security alongside greater operational efficiency. Fraudsters often exploit uncertainty, but our settlement network embeds trust and verification into each transaction, helping end Friday afternoon fraud. The legal sector finally has infrastructure designed specifically for its needs."

James Owusu, CEO and founder of Kord.

The companies involved

Kord is a UK-based fintech focused on simplifying and securing client onboarding, identity verification, and payment processing for regulated industries. The company, which recently ranked 20th on Sifted’s 100 list of fastest-growing startups in the UK and Ireland, has raised a total of £9.4 million in funding to date. Its consumer-facing application is known as Checkboard, which provides end-to-end identity and verification services.

The firm is backed by Guinness Ventures and Beringea. Guinness Ventures is an investment firm represented on Kord’s board by Steve Carle, while Beringea is a transatlantic venture capital firm where Kiu Kim serves as Investment Director and Board Director at Kord. These investors have supported Kord’s development of category-defining products aimed at removing risk from client money management.

Crucial to Kord’s infrastructure is its partnership with ClearBank. ClearBank provides the clearing and safeguarding services that underpin Kord’s ability to manage client money securely. As a cloud-native clearing bank, ClearBank allows fintechs to offer real-time payments and automated reconciliations, making it a frequent partner for compliance-intensive financial services that require robust regulatory frameworks.

What FF News has reported before

FF News has extensively covered the role of ClearBank in enabling specialised fintech services. Recently, we reported on how emoni Partners with ClearBank to Power Compliance-Intensive Fintech Services in Europe, highlighting the bank's utility for firms operating in highly regulated sectors. ClearBank has also been active in the merchant and SME space, as seen when Pay.com Partners with ClearBank to Launch Integrated Agency Banking for Global Merchants and in the launch of Teya and ClearBank Launch 3% AER Instant-Access Savings Pots for UK SMEs. Additionally, the broader regulatory environment for such innovations was discussed when Innovate Finance Urges UK Action on Open Finance and AI to Secure FinTech Lead.

What this means

The introduction of a dedicated legal sort code represents a significant shift in how the industry handles high-value, high-risk transactions. For too long, the legal sector has been forced to use general-purpose banking rails that do not account for the specific verification needs of conveyancing. By embedding identity at the network level, this move puts pressure on traditional clearing banks to improve their own counterparty verification tools. The success of this model raises questions for the wider professional services market: if legal firms can operate on a private, verified loop, will other high-value sectors like luxury real estate or corporate M&A demand similar "walled garden" payment infrastructures to mitigate the rising tide of sophisticated social engineering fraud?