Arachnys, which provides customer risk intelligence solutions for KYC, AML and EDD, has raised $10m.
The Series A round as led by QED, with participation from other investors. It will use the capital to accelerate product R&D, expand go-to-market efforts and further develop strategic partnerships integrating its cloud platform within established compliance and onboarding platforms. The company said it will also establish a new delivery and implementation organisation to ‘satisfy demand’ within its growing pipeline for global deployments of its solutions.
David Buxton, CEO & founder of Arachnys, said: “Increased regulation, coupled with new AML, KYC and EDD requirements continue to pressure banks and financial institutions. This funding round accelerates our ability to help clients automate and transform their financial crime prevention initiatives into a revenue accelerator, while expediting regulatory compliance.
“Arachnys is passionate about helping financial institutions stop bad actors and rapidly onboard valued clients by powering the investigative minds that secure their firms and our world.”
Founded in 2010, its customer risk intelligence platform focuses on building, enrichment and maintenance of client entities, enabling rapid onboarding and threat detection. The company, which provides customer risk intelligence solutions for Know Your Customer (KYC), Anti Money Laundering (AML) and Due Diligence (DD).
Headquartered in London, Arachnys claims to be a leader in cloud solutions for assessing financial crime customer risk, ensuring compliance for new regulatory CDD, KYC and EDD requirements and accelerating topline revenue.
Financial institutions use its financial crime risk assessment platform to standardise and improve efficiency of compliance processes, reduce onboarding costs and improve the customer experience. Arachnys can plug into existing KYC or transaction monitoring systems, automating data collection from any internal, public or third party source, track the analysis conducted and assemble reports automatically.
Earlier this year, Arachnys bought in a host of new financial crime prevention veterans. The company bought in Nigel Broda, Lynne Federman, Wendy Conway Schmidt, and Babar Shameem.
Quantexa also partnered with Arachnys to help financial institutions identify and monitor customer risk. The big-data specialist said it will use Arachnys’ cloud-based investigation platform and global news assets to screen against negative news, locate missing Know Your Customer (KYC) data and provide enhanced risk scoring.
