Spektr Raises $5.4 Million to Expand Automation-Led Compliance Solution

Spektr came out of stealth and announced it raised 5 million euros (about $5.4 million) in a seed round.

The company offers advanced automation for compliance teams worldwide and can “turn ongoing due diligence into a revenue-generating asset for compliance,” according to a Wednesday (Feb. 21) press release.

Spektr was founded by a team that previously developed HelloFlow, a no-code platform for onboarding customers globally that was later acquired by Trulioo, according to the release.

Drawing from that experience with customer onboarding, and after talking with 400 compliance and risk experts, the team saw that companies struggle with ongoing monitoring and risk management after setting up digital onboarding processes, the release said.

These companies struggle largely due to a lack of automation, as many services still rely on resource-intensive manual monitoring and alert resolution, per the release.

Spektr aims to address these ongoing due diligence challenges, as well as the growth and escalating costs in the compliance sector with automation-led compliance measures, according to the release.

The company’s no-code solution automates risk processes, sets up monitoring, resolves alerts instantly and integrates with other vendors, per the release.

“By automating 90% of risk and monitoring tasks, we boost operational efficiency and drive higher conversion rates for [businesses],” the company said in the release.

Companies can also gain access to advanced analytics and reporting features, so they can make informed decisions and optimize compliance strategies, the release said.

The company’s seed round was led by Northzone, Seedcamp and PreSeed Ventures.

In another move in the space, PortX and Hummingbird said Feb. 6 that they teamed up to make it easier for financial institutions to use Hummingbird’s compliance platform for anti-money laundering and financial crime investigations.

“With this partnership, any flags in the system for suspicious activities can be automatically pushed to Hummingbird,” PortX CEO David Wexler said at the time. “This not only streamlines the process but also drastically reduces response times.”

In December, Salv raised 3.9 million euros (about $4.2 million) to fuel the expansion of its financial crime compliance solutions in the United Kingdom.