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AccessFintech, the financial technology firm that operates the Global Exceptions Network for exception resolution and risk management, announced today that it has closed a series A funding round and secured $17.5 million investment from Citi, Credit Suisse, Goldman Sachs and JPMorgan Chase & Co. (J.P. Morgan). The AccessFintech network aggregates business exceptions, and provides risk management and resolution tools, through a framework of prioritization and assignment. All four institutions have been working with AccessFintech on projects to increase market collaboration and reduce operational risk throughout the past year, individually and as a group.
The funding will enable AccessFintech to further invest in its risk and exception management services, expand global account coverage and accelerate uptake within institutions not only in post trade operations, but also areas such as credit monitoring and outsourcer oversight. “Exceptions” are created from business activities such as clearing, confirmations, surveillance and credit monitoring that require an intervention to be resolved. As these exceptions often have a business impact but the severity of which is difficult to determine, AccessFintech provides a layer across the organizations’ systems to evaluate, prioritize, visualize and identify which user interaction is required, and by which firm.
AccessFintech’s products seek to address capital markets constraints and help financial institutions to reduce their risk exposure. The Global Exception Network provides aggregation services by consuming data from internal and external systems and allowing participants to visualize and prioritize their own risk. The Collaboration layer then allows sharing such events across the ecosystem and offers users the ability to “pair” their exceptions with other institutions for quicker resolution – both peer-to-peer and client-provider relationships. As a result of the aggregation layer, AccessFintech enables a Sandbox framework to trial new financial technologies at a fraction of today’s cost, significantly reducing barriers to entry for fintech firms.
Roy Saadon, Founder and CEO, AccessFintech said: “Our growth has been fueled by solving a real and immediate problem that is hindering the evolution of the financial industry. Our clients have identified that the service needs to be supported from within the industry and are helping provide momentum to reach the entire eco system. Citi, Credit Suisse, Goldman Sachs and JP Morgan have been very supportive customers first and foremost, we are thrilled and grateful that they see the potential of AccessFintech.”
Frederic Crosnier, MD and Head of Global Markets and Investment Banking & Capital Markets Operations and Strategic Investments at Credit Suisse said: “We are leveraging our partnership with AccessFintech to take a tangible step in evolving our client operating infrastructure. Transparency does not have to stop at the data level, but can now extend to the processing of exceptions. This allows us to be more responsive to our clients while benefiting from resource efficiencies.”
Daren Cohen, Partner and Global Head of PSI at Goldman Sachs said: “AccessFintech creates a platform for industry collaboration on exception resolution, improving risk management and operational efficiency for all network participants. As an independent, industry-owned company, AccessFintech is well positioned to accelerate the evolution of the financial industry, and we’re thrilled to be a part of it.”
Ana Capella, MD and Head of Strategic Investments at JPMorgan Chase & Co said: “We have been fortunate to have been an early adopter of AccessFintech and thus able to vet its value proposition through real life scenarios. Once we understood the impact on the operational model of the financial participants it was a quick decision to provide the financial backing and the momentum to grow this a true cloud based solution, while ensuring it maintains its independence to service the entire eco system.”
Steve Morgan, Head of Markets Operations Settlements and Operations Technology at Citi said: “We have seen the benefits of AccessFintech materialize in two segments that are intertwined – internal efficiencies through prioritized decision making, and industry improvements through collaboration on the same data. It is exciting to see how much the readiness for cloud enterprise solutions has matured within the banking world.”
