Effectiv, a developer of no-code risk management service, has scored $4m in its seed funding round.
Accel led the round, with commitments also coming from REV and other unnamed industry leaders.
With this capital, the company plans to deepen its technology development, grow its US team and bolster its marketing efforts.
The RegTech company has built an AI-powered risk management platform for mid-sized banks, credit unions, FinTechs and financial institutions.
Effectiv onboarded its first customer in June 2021 and since then it has processed $1bn in loan volume.
The founding team of Effectiv were all early team members at Simility, an enterprise fraud prevention company that was acquired by PayPal in 2018. They worked with major organisations like US Bank, Discover, Synchrony and more.
They started working on Effectiv after they realised the technologies they have been building so far were often out of reach to small financial institutions.
Effectiv co-founder and president Ritesh Arora said, “We are building a platform that is designed from the ground up to be extremely easy to integrate and implement. Effectiv comes integrated with best in class data services and our proprietary AI decides when to optimally use (and pay for) a data signal. Our goal is to help teams manage their risk strategies without relying on developers.”
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