Regtech Firms Lucinity, Hummingbird Secure Millions in Funding, will Further Develop AML Tech to Prevent Financial Crimes

Lucinity, an AML software developer established by a compliance professional who previously worked at Citigroup, has acquired $6.1 million in capital.

Meanwhile, Regtech company Hummingbird, which is also an anti-money laundering software developer, has finalized an $8.2 million Series A investment round.

Lucinity’s recent round has come after previous funding was secured from Karma Ventures and  Founders. The company has now raised a total of $9 million. Existing investors Crowberry Capital and Preceptor Capital also took part in the round.

Iceland’s Lucinity leverages “Human AI” to assist financial services providers with identifying potentially fraudulent activities, and plans to “Make Money Good” with increased automation and self-learning algorithms.

Lucinity’s management noted that several Tier 1 financial institutions and microbanks have been using its technology. The company is planning to use the recent capital injection to expand its operations by working on its client acquisition strategy.

Gudmundur Kristjansson, founder at Lucinity, stated:

“Banks have been fighting a good fight, but with outdated technology. Now it’s time to step up and empower banks to reach beyond the 1% of laundered money that they currently capture.”

Hummingbird’s Series A funding round was led by Flourish Ventures, along with participation from former Stripe professionals Lachy Groom and Jon Zieger. Existing investors Hombrew, Designer Fund, and TTV Capital also took part in the AML startup’s latest round.

Established in 2017, US-based Regtech Hummingbird has reportedly entered into partnerships with large financial institutions. It’s also reportedly working with Fintech firms Brex, Upgrade and Etsy, which may be using its AML technology.

Hummingbird offers special case management and investigation tools, and also provides a reporting platform. The company provides an API for validating and submitting regulatory reports as well.

Matt Van Buskirk, co-founder at Hummingbird and a former regulator, noted:

“Partnerships between banks and fintech startups have brought important services to market, but the regulatory complexities of these relationships pose large obstacles to their success. The Hummingbird team has harnessed compliance expertise with technology expertise to improve the overall viability of the fintech marketplace.”

Joe Robinson, co-CEO at Hummingbird, remarked:

“The new funding will allow us to move forward with technologies that could improve the quality and speed of communication among institutions and leverage structured datasets, with ethical care, for machine learning.” 

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