ClearStar secures two new contracts worth $1m combined

(Sharecast News) - Background check technology and service provider ClearStar has secured two new customers, it announced on Tuesday, with the contracts having an expected combined value of more than $1m annually, beginning in 2019.The AIM-traded firm said the contracts, which would be rolling contracts, were for the provision of financial institution screening - representing an entry into a new market for ClearStar - and medical information services, respectively. It said its contract for financial institution screening was awarded by an unnamed global professional services company, which provided solutions to improve the operations of its Fortune 500 clients.ClearStar said it would provide screening for personnel placed with the customer's financial institution clients to ensure compliance with the US Federal Deposit Insurance Act, which governs the Federal Deposit Insurance Corporation and the banks insured by that organisation, as well as the US Patriot Act.That represented an entry into a new market for ClearStar, the board said, as it was first contract for financial institution screening for compliance with the FDI Act.ClearStar said that demanded "more comprehensive and exhaustive" screening compared with the requirements of the US Fair Credit Reporting Act, which regulated the firm's existing consumer reporting agency clients.Under the new medical information services contract, the company's 'ClearMD' product would be used by a large consumer reporting agency, which was a new customer for ClearStar, to provide its clients with mobile-managed drug screening.ClearStar said it was selected as it was the only provider that offered paperless medical screening, with a fully-customisable user platform across the three largest drug testing laboratories in the US, comprising more than 9,500 medical test locations."These contracts reflect the continued expansion of our activities beyond background screening for recruitment purposes to verification and ongoing monitoring for ensuring human capital integrity," said chief executive officer Robert Vale."We are excited to enter the financial institution screening market, and I'm proud that in the pilot test we achieved a 50% increase in delivery time compared with the incumbent provider and with greater accuracy."Similarly, Vale noted that the firm was selected by another consumer reporting agency for ClearMD, thanks to its "unique" ability to provide a customisable paperless medical screening solution with a large choice of testing locations."With our solutions adding demonstrable value to our customers, we remain confident of continuing to expand in new and existing markets."