Effectiv, the US startup behind a no-code risk management platform for mid-sized banks, credit unions and fintechs, has raised $4 million in seed funding.
Accel led the round for Effectiv, which was founded by a group of early team members at Simility, a fraud prevention outfit acquired by PayPal for $120 million in 2018.
Effectiv says its SaaS platform uses AI and an intuitive user interface to help clients quickly adapt to new trends and reduce the cost of managing fraud and risk. The startup began onboarding customers in June 2021 and have already processed over $1 billion in loan volume. It is now out of beta and bringing on clients.
Meanwhile, Visa veteran Bob Stock has been brought in as an advisor and ex-HSBC man Mike Persichini has come aboard as head of sales.
Ravi Sandepudi, CEO, Effectiv, says: “Cutting-edge technologies that drive Effectiv have so far been prohibitively expensive and were designed for and by large organisations. Effectiv aims to change that and truly democratize AI-driven risk management, making it accessible to any financial institution."