Sedric AI Secures $18.5M to Enhance AI-Powered Compliance Platform for Financial Institutions

Sedric AI raises $18.5M to expand compliance-dedicated LLM platform for finance - SiliconANGLE

Sedric AI raises $18.5M to expand compliance-dedicated LLM platform for finance Sedric AI, a startup that develops a dedicated compliance large language model for financial services, said Thursday it raised $18.5 million in a Series A funding round led by Foundation Capital. The company's latest funding round was also joined by new investor Amex Ventures and existing investors including StageOne Ventures and The Garage. Including $3.5 million raised in a seed funding round in 2021 led by StageOne, the company has raised a total of $22 million. Founded in 2020, Sedric's platform allows financial technology companies to comply with dynamic and changing regulatory requirements. According to the company, as more fintech companies expand their customer base and operational regions and financial services grow, more organizations have begun to embrace generative artificial intelligence. The technology itself comes with its own risks, as well. Sedric's solutions include an AI reviewer capable of analyzing customer interactions to examine customer interactions to manage compliance risk, a summarizer to speed up closure time after work calls, an AI coach that can assign and track action items and a compliance tracker for partners. Service agents can also take advantage of a compliance copilot that can guide them on calls in real-time with checklists, prompts and script templates to help them optimize their tasks. The company said it spent time refining its models based on the industry's best practices to build a compliance-dedicated LLM with an enterprise-ready platform to help manage compliance risks. The models are customized to an organization's unique needs and automate policy enforcement, work to detect anomalies, mitigate deviations and assist with audits. "For financial institutions, compliance and growth can be seen as two competing priorities," said Nir Laznik, co-founder and chief executive of Sedric. "With our compliance LLM, we turn risk into a growth opportunity." According to a Lexus Nexus report, the worldwide cost of compliance borne primarily by financial institutions is around $206.1 billion, representing more than 12% of the money spent on research and development. The same report noted that while certain industries are still looking into how to use AI and machine learning, 72% of finance professionals are already using AI to enhance compliance procedures. Sedric said its customers include a growing base within the United States and Europe, including global lenders, banks, trading platforms and insurance outfits. Without providing numbers, Sedric added that over the past 12 months, the company's revenue has increased fivefold showing a notable rise in demand for its services. With this new funding Sedric said the company intends to focus on growing its AI lab in Tel Aviv, Israel and expanding marketing teams to reach more customers.

Sedric Raises $18.5 Million for AI-Powered Compliance Platform for Financial Institutions | PYMNTS.com

Sedric AI has raised $18.5 million in a Series A funding round to continue developing and promoting its artificial intelligence (AI)-powered compliance platform for financial institutions. The company will use the new funding to grow its AI lab in Tel Aviv and to expand its global go-to-market teams, according to a Thursday (Sept. 5) press release. "For financial institutions, compliance and growth can be seen as two competing priorities," Nir Laznik, co-founder and CEO of Sedric, said in the release. "With our compliance LLM [large language model], we turn risk into a growth opportunity. Enterprises now have an opportunity to implement a proven, bank-ready solution that is successfully operational and already widely adopted across the financial services industry." Sedric's platform helps financial institutions meet the expectations of regulators at a time when there is growing attention being paid to generative AI, the opportunity it presents for financial institutions to expand their product offerings, and the potential compliance risk that comes with this and other new tech, according to the release. The platform helps compliance officers gain a holistic view of their customer touchpoints across multiple channels, flag deviations from their compliance policies and guidelines, and quickly take corrective actions, the release said. Sedric has a growing base of customers in the United States and Europe and has increased its revenue fivefold over the last 12 months, per the release. The company's latest funding round was led by Foundation Capital. Charles Moldow, general partner at Foundation Capital, said in the release that Laznik, Sedric Co-founder and Chief Technology Officer Eyal Peleg and the Sedric team have developed "a forward-looking solution that is 100 times more effective, faster and efficient compared to traditional methods." In another recent development in the compliance space, Norm Ai said in June that it raised $27 million in a Series A funding round to expand its AI-powered regulatory compliance platform for businesses. "We are now at an inflection point in AI capabilities that, when properly harnessed, unlock massive improvements in regulatory compliance workflows across the economy," Norm Ai Founder and CEO John Nay said at the time in a press release.

Gen AI for compliance startup Sedric Ai raises $18 million

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The latest funding round, led by Foundation Capital with additional participation from existing investors including StageOne Ventures and The Garage, brings the total amount raised by the company to date to $22 million. The firm says the funds will be used to grow its AI lab in Tel Aviv and expand its global go-to-market teams. Sedric's LLM provides compliance officers with a holistic view of their customer touchpoints across multiple channels to flag deviations from their established compliance policies and guidelines. While starting with vertical-specific battle-tested models, Sedric is a learning system. Its models are customized to an organization's unique requirements, automating policy enforcement, mitigating deviations, and streamlining audits. Nir Laznik, co-founder and CEO of Sedric, says the company has increased revenue five-fold over the last 12 months thanks to a growing base of customers in the US and Europe, including global lenders, banks, trading platforms, and insurers. "For financial institutions, compliance and growth can be seen as two competing priorities," he continues. "With our compliance LLM, we turn risk into a growth opportunity. Enterprises now have an opportunity to implement a proven, bank-ready solution that is successfully operational and already widely adopted across the financial services industry."