Sedric, an AI-enhanced compliance platform for Fintech firms, announced that it has secured $3.5 million via a seed round in order to increase consumer protection and transform the Fintech compliance sector.
Led by StageOne Ventures, Sedric will use the proceeds from the investment round to support its international expansion and onboard its growing client base of new Fintech customers.
Sedric aims to support Fintechs with enhancing consumer protections and complying with changing regulatory guidelines. Its AI-enhanced platform monitors customer engagement and auto-detects high-risk interactions in order to maintain compliance. Sedric’s clients include major Fintechs based in Europe and North America offering trading, investing, and lending services.
Spending on compliance by Fintech firms surged by over 200% over the past couple years, but consumer complaints against service providers operating in the sector increased by nearly 180% during H1 2021 when compared to the previous year. The greatest compliance challenge for financial services companies is “keeping up with regulatory change, resulting in bottlenecks and inhibiting growth,” according to a release.
Nir Laznik, Co-founder and CEO at Sedric, stated:
“The cost and reputational damage from non-compliance is a top risk for today’s growing fintech industry. Regulators around the world are racing to add more rules to protect customers, requiring continuous monitoring and real-time implementation 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.”
Nate Meir, Principal at StageOne Ventures, remarked:
“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. 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.”
Financial services executives James Kong, ex- MD 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.”
As stated in a release:
“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.”