Effectiv, a US startup that offers a no-code risk management platform tailored for mid-sized banks, credit unions, and fintechs, has successfully raised $4 million in seed funding.
Accel led the funding round for Effectiv, which was established by a group of early team members from Simility, a fraud prevention company acquired by PayPal for $120 million in 2018.
Effectiv’s SaaS platform leverages AI combined with an intuitive user interface, enabling clients to quickly adjust to emerging trends and lower the costs associated with managing fraud and risk. The startup began onboarding customers in June 2021 and has already processed over $1 billion in loan volume. It has now transitioned out of beta and is actively signing on new clients.
Additionally, Visa veteran Bob Stock has joined as an advisor, and former HSBC executive Mike Persichini has taken on the role of head of sales.
Ravi Sandepudi, CEO of Effectiv, stated: “The cutting-edge technologies driving Effectiv have historically been prohibitively expensive and were designed for large organizations. Our goal is to change that and genuinely democratize AI-driven risk management, making it accessible to any financial institution.”