Lucinity, an anti-money laundering software startup founded by a former Citigroup compliance tech expert, has raised $6.1 million in funding. Separately, another AML outfit, Hummingbird RegTech, has closed a $8.2 million Series A round.
The money follows a recent financing series co-led by Karma Ventures and byFounders, bringing total funding to $9 million. Previous investors Crowberry Capital and Preceptor Capital also participated.
Iceland-based Lucinity uses ‘Human AI’ to help financial services firms detect suspicious behaviour and ‘Make Money Good’ with more automation and self-learning.
The startup, which claims microbanks and Tier 1’s among its users, will use the new funding for client acquisition.
Gudmundur Kristjansson, founder, Lucinity, says: “Banks have been fighting a good fight, but with outdated technology. Now it’s time to step up and empower banks to reach beyond the 1% of laundered money that they currently capture.”
Meanwhile, Hummingbird’s Series A was led by Flourish Ventures, with new support from notable Stripe alumni Lachy Groom and Jon Zieger, as well as seed investors Hombrew, Designer Fund, and TTV Capital.
Launched in 2017, US outfit Hummingbird has signed big financial institutions, as well as upstarts Brex, Upgrade and Etsy, to its technology, consisting of a case management, investigation, and reporting platform; and an API for validating and filing regulatory reports.
“The new funding will allow us to move forward with technologies that could improve the quality and speed of communication among institutions and leverage structured datasets, with ethical care, for machine learning,” says Hummingbird co-CEO Joe Robinson.