When TD Bank was charged a historic $3 billion fine for failing to detect money laundering, failing to meet regulations became the greatest risk to banks and fintech companies.
Strict regulatory guidelines are striking globally and causing stark repercussions for institutions that fail to meet requirements, leaving banks and fintech companies in search of sharp, efficient risk mitigation.
Global regulation: "Regulators across multiple jurisdictions, UK, US, are getting stricter. There is an increasing need to reduce manual efforts and optimize costs right alongside a growing adoption of AI," explains Rhim Shah CEO and Co-founder of Arva AI. "Fintechs and banks understand that AI is a competitive advantage they need to have."
Arva is a YC-backed AI-enabled business verification for banks and fintech, helping clients automate 80% of manual compliance tasks. They aim to fill in the gaps that brought swift action against banks like TD Bank. Arva recently raised $3 million from Google's early-stage AI fund.
Shah notes while the biggest risk facing bank and fintech clients going into 2025 is mitigating risk and following regulations, "products still need to be built in the right way, where trust can be generated and created." From initial client feedback, this is where banks and fintech in need of compliance support, and AI have leaned on Arva as a trusted solution.
