Sedric Raises $US 3.5 Million to Increase Consumer Protections for Next-Gen FinTechs
TEL AVIV, Israel and NEW YORK, Nov. 17, 2021 /PRNewswire/ -- Sedric, an AI-based compliance excellence platform for next-gen fintechs, today announced that it has raised US$ 3.5 million in seed funding to increase consumer protection and transform fintech compliance. Led by StageOne Ventures, Sedric will use the funding to support its global expansion and onboard its growing base of new fintech customers.
Sedric enables fintech companies to increase consumer protections and comply with changing global regulatory requirements. Its AI-powered platform monitors every customer engagement and auto-detects high-risk interactions to ensure compliance. Sedric's customers include leading fintechs in Europe and North America providing trading, investing, and lending services.
Spending on compliance by fintechs increased by more than 200% over the past two years, yet consumer complaints against companies in the sector increased by almost 180% in the first half of 2021 compared to the year prior. The number one compliance challenge for financial services firms is keeping up with regulatory change, resulting in bottlenecks and inhibiting growth.
"The cost and reputational damage from non-compliance is a top risk for today's growing fintech industry," said Nir Laznik, Co-founder and CEO at Sedric, "Regulators around the world are racing to add more rules to protect customers, requiring continuous monitoring and real-timeimplementation for fintechs to navigate and grow. We are thrilled to expand our services globally and provide fintechs with an advanced compliance platform that significantly lowers risks and helps them scale."
"The global fintech industry is expected to reach $190 billion in 2026, and Sedric is designed to assist companies in the fintech industry aiming to protect their customers and brands," said Nate Meir, Principal at StageOne Ventures. "With significant increases in regulatory scrutiny around the world, and constantly evolving financial regulation, Sedric gives fintechs an advanced platform to manage changing regulations quickly and easily. We are excited to support Sedric's global expansion and mission to support fintechs around the world."
Prominent financial services executives James Kong, former Managing Director of BlackRock; Micha Breakstone, co-founder of Chorus.AI; and Alon Shemesh, co-founder of Forter and Homeward Ventures participated in the round and serve as advisors to Sedric.
With rule changes up nearly 500 percent and a new regulatory update issued every seven minutes globally, it is increasingly difficult for fintechs to keep track of regulatory developments. To help, Sedric leverages machine learning to analyze millions of customer interactions across its network to proactively recommend steps to enhance customer protections and meet changing requirements.
Kong said, "Compliance is a top priority for every business providing financial services. Sedric automates this critical function and takes a collaborative approach."
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