Goldman Sachs Group Inc, JP Morgan Chase & Co, Citigroup Inc and Credit Suisse Group AG invested in the startup.
AccessFintech, a startup that sells technology which enables financial firms to manage business errors more effectively, has received $17.5 million in investments from four Wall Street banks in a Series A funding round, a statement from the company announced today.
The firms in question are Goldman Sachs Group Inc, JP Morgan Chase & Co, Citigroup Inc, and Credit Suisse Group AG. AccessFintech’s technology aims to address the constraints in capital markets and help financial institutions to reduce their risk exposure. Specifically, the startup has created a network that combines and helps to fix business errors or so-called “exceptions.”
These errors occur when financial companies carry out activities that require interventions to be resolved. For capital markets, these can range from incorrect data being used to identify a customer or data discrepancies in trades.
By using the Israel-based startup’s technology, firms can shorten the time and decrease the resources needed to resolve these issues. This is achieved by facilitating communication between financial institutions. The technology will also lessen the risks that come with these errors.
Big banks are more willing to work together
According to the statement, over the past 12 months, the four banks have been working both with the startup individually and as a group, to assist in the creation of the technology.
This collaboration is part of a larger trend that shows that large banks and financial institutions are willing to work together and support startups, however, this is limited to areas that don’t give them an edge over their rivals.
Commenting on the investment, Roy Saadon, Founder and CEO, AccessFintech said: “Our growth has been fueled by solving a real and immediate problem that is hindering the evolution of the financial industry. Our clients have identified that the service needs to be supported from within the industry and are helping provide momentum to reach the entire ecosystem.
“Citi, Credit Suisse, Goldman Sachs and JP Morgan have been very supportive customers first and foremost, we are thrilled and grateful that they see the potential of AccessFintech.”
“We see a dramatic level of difference as to what banks are willing to collaborate on, or outsource to shared vendors instead of building internally. We see the banks in a search for efficiency in the places where things are not competitive,” Saadon continued.
According to the CEO, AccessFintech will use the cash injection to expand its business by accelerating its sales and client coverage.
“Once we understood the impact on the operational model of the financial participants it was a quick decision to provide the financial backing,” Ana Capella, head of strategic investments at JPMorgan, said in a statement.