Regtech Innovator Lucinity starts to attract attention.
The company, headquartered in Reykjavik, Iceland, debuted Finovate last year at FinovateSpring in San Francisco. At the conference, Lucinity presented its AI co-pilot, Lucy, which improves financial crime compliance through insight generation, reporting and automation. The solution uses GenAI to streamline the tasks of compliance professionals, enabling them to make informed, data-driven decisions and directly address higher-order challenges. The technology performs internet searches, background checks, fraud detection, sanctions screening, and more.
As the team explained to FinovateSpring last year, financial crime fighters spend a lot of their time reviewing fraud alerts to determine whether or not they are significant. A key challenge is that accurately assessing the risk of a given alert requires a thorough understanding of the context in which the alert occurred. Adding to this challenge is the fact that much of the information needed for this purpose may be scattered across multiple systems, making the process both more complicated and time-consuming. Lucinity’s technology helps financial crime professionals quickly simplify and understand data; one Tier 1 bank estimated that Luci could save them $100 million annually by reducing alert review times from an average of 2.5 hours to 25 minutes.
“What we do with Lucinity is take different transactions, KYC information, etc. and create a picture or a story of what a possible financial crime could look like,” explained Gudmundur Kristjansson, co-founder and CEO of Lucinity, during the company’s demonstration. “And with this story, we enable financial crimes investigators to reduce investigation time from hours to minutes.”
The company’s innovations have been noticed. Last month, Lucinity secure the Chartis Research Award for Workflow Automation. This honor recognizes how the company’s technology leverages AI and automation to improve compliance processes and eliminate inefficiencies. Lucinity was also named a Chartis Research Top Performer 50 Financial Crime and Compliance Companies (FCC50) for 2024.
“With its focus on workflow automation, Lucinty is able to save thousands of hours on the investigation process, significantly reducing the cost of compliance for financial institutions,” said Kristjansson said. “This means that banks can then redirect their resources towards revenue-generating areas of business, rather than devoting more resources to compliance. »
Lucinity enters 2024 with a host of new partnerships. Icelandic neobank Indianplatform to fight financial crime Netteriumand another former member of Finovate In complete confidence were among the companies Lucinity partnered with in 2023. This year, in addition to the accolades mentioned above, the company announced the appointment of Theresa Bercich as Chief Product Officer and recognition as co-founder . In a statement, Kristjansson thanked Bercich for his work on Luci and for his contributions to the company as a whole. “His journey from data scientist to VP of Product, and now to CPO and co-founder, reflects the dynamic growth and evolution of Lucinity itself,” Kristjansson said.
Lucinity has raised over $25 million in funding. The company’s total includes a $17 million investment raised in 2022. Keen Venture Partners led this Series B round.
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