American Express Ventures has participated in an $18 million funding round for Sedric AI, a startup focused on creating a specialized compliance large language model (LLM) tailored for the financial services sector.
The latest funding round, led by Foundation Capital, also included contributions from existing investors such as StageOne Ventures and The Garage, bringing the total amount raised by the company to $22 million. The funding will be utilized to expand Sedric’s AI lab in Tel Aviv and enhance its global go-to-market teams.
Sedric’s LLM aids compliance officers by providing a comprehensive view of customer interactions across multiple channels, enabling them to identify deviations from established compliance policies and guidelines. Initially based on vertical-specific models that have been rigorously tested, Sedric operates as a learning system, tailoring its models to meet the unique needs of each organization, thus automating policy enforcement, reducing deviations, and simplifying audits.
Nir Laznik, co-founder and CEO of Sedric, highlights that the company has experienced a five-fold increase in revenue over the past year, supported by a growing customer base in the US and Europe, which includes global lenders, banks, trading platforms, and insurers.
“For financial institutions, compliance and growth can often be viewed as conflicting priorities," he notes. “With our compliance LLM, we transform risk into a growth opportunity. Enterprises now have the chance to implement a proven, bank-ready solution that is operational and widely adopted in the financial services industry.”
For those interested in the evolving landscape of artificial intelligence in banking, Finextra’s inaugural NextGenAI conference will be held on November 26, 2024. Register your interest here.