Sedric AI, the compliance-dedicated AI platform for financial institutions, announced it has closed a $18.5 million Series A funding round to further its efforts to transform compliance operations across the industry.
The latest funding round, led by Foundation Capital with participation “from Amex Ventures, brings the total amount raised by the company to date to $22 million.”
The funds will be used to grow Sedric’s AI lab in Tel Aviv and “expand its global go-to-market teams.”
Financial institutions are embracing technologies “like Gen AI to expand their product offerings, understanding that emerging technology comes with increased potential compliance risk.”
Regulators are applying more focus and expectations “on financial institutions to ensure that those leveraging Gen AI are safeguarding their customers across all customer touchpoints, including communications and marketing.”
The current regulatory environment, coupled “with the growing scope of financial services, is driving demand for innovative solutions to help compliance officers execute their organization’s policies, guidelines, and standards.”
Studies show that the current cost of compliance “for financial services worldwide is US$206 billion, equivalent to 12% of global research and development expenditures.”
Sedric empowers compliance officers with “a holistic view of their customer touchpoints across multiple channels to flag deviations from their established compliance policies and guidelines.”
Sedric’s technology enables companies to quickly “take corrective actions without the cost and burden of manual review.”
This technology is powered by the financial services industry’s first compliance-dedicated large language model (LLM), “providing organizations with a mature, enterprise-ready platform to oversee and manage compliance risks.”
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.”
Sedric’s revenue has increased fivefold over the last 12 months. The company has a growing base of customers in the U.S. and Europe, “including global lenders, banks, trading platforms, and insurers.”
Sedric’s existing investors include StageOne Ventures, The Garage, Gefen Capital, Skywell Capital, Secret Chord, and K20 Fund.
