- Compliance costs have increased significantly, with 76% of financial firms raising expenditures from 2022 to 2023.
- Sedric, an AI-powered platform, helps financial institutions streamline compliance by monitoring communications in real-time.
- The AI system flags misconduct and missed disclosures across calls, emails, and social media.
- Sedric addresses concerns about AI bias by regularly retraining models and incorporating customer feedback.
- Customizable data storage options ensure privacy and compliance with internal and external regulations.
- The platform has attracted hundreds of customers, primarily in the U.S. and Europe, and has experienced fivefold revenue growth.
- Sedric secured $18.5 million in Series A funding, led by Foundation Capital, with plans to expand operations in New York City and Tel Aviv.
Main AI News:
In the financial sector, compliance costs have surged, with 76% of firms increasing their spending from 2022 to 2023 due to new regulations. Many institutions seek cost-effective solutions, with the average compliance cost reaching $10,000 per employee. Sedric, an AI-powered platform co-founded by Nir Laznik and Eyal Peleg, aims to address this challenge by helping financial firms streamline their compliance efforts.
Sedric’s AI monitors communications across multiple channels, such as calls, emails, and social media, to flag real-time compliance issues, including omitted disclosures and misconduct. The platform can often automatically correct these issues and offers a comprehensive view of customer interactions, allowing compliance officers to quickly identify and address policy breaches. This technology helps organizations manage the full compliance lifecycle, from policy enforcement to auditing.
Although Sedric’s extensive monitoring may raise concerns about employee surveillance, U.S. regulations allow for significant leeway in workforce monitoring, particularly for financial institutions. Federal mandates, such as those governing insider trading and sensitive document sharing, require close monitoring of employee interactions, often overriding state laws.
One potential risk is bias within the AI system. Previous studies have shown that AI models, such as African-American Vernacular English, can disproportionately flag certain speech patterns. Sedric addresses this by training its models on proprietary datasets, regularly retraining them to ensure accuracy and reduce bias. Additionally, the platform allows customers to provide feedback that further fine-tunes the AI to meet specific needs.
Sedric offers customizable data storage options to safeguard privacy, allowing companies to control retention policies and ensure personal data protection. The platform also supports call center agents during client interactions, helping them comply with real-time regulations. Sedric has attracted hundreds of clients across the U.S. and Europe, with revenue growing fivefold over the past year.
By targeting small and large financial institutions, Sedric provides tailored solutions that differentiate it from competitors such as Fairwords, Shield, and Aware. Recently, the company secured $18.5 million in Series A funding led by Foundation Capital, with additional investment from Amex Ventures, bringing its total funding to $22 million. These funds will be used to expand Sedric’s teams in New York City and Tel Aviv, with plans to double the company’s headcount next year.
Conclusion:
Sedric’s growth reflects the increasing demand for AI-driven compliance solutions in the financial industry. With compliance costs rising and regulatory requirements becoming more complex, firms seek efficient ways to manage these challenges. Sedric’s focus on real-time monitoring and customizable solutions positions it well in a market where companies are pressured to reduce operational costs while maintaining stringent compliance standards. The significant investment Sedric secured suggests that AI-powered compliance is gaining traction and will likely see broader adoption, particularly among small- to mid-sized financial institutions looking for scalable solutions. This trend indicates a growing market for AI technologies that improve efficiency and address critical regulatory needs.
