Effectiv – Fintech
What it is:
Effectiv offers a fraud detection platform that can streamline fraud investigation, detection, and reporting. When a new user is onboarded, Effectiv conducts automated fraud detection to determine credential authenticity. The AI-assisted case management system and ongoing monitoring can pinpoint anomalies in minutes, improving operational efficiency. The platform produces detailed reports and analytics on fraud trends in a user-friendly interface.
The platform provides a no-code risk management platform and is intended for mid-sized banks, credit unions, fintechs, and financial institutions.
Who Made It?
Headquartered in San Francisco, California, Effectiv was founded in 2021 by Anupam Tarsauliya, Jonathan Doering, Ravi Sandepudi, and Ritesh Arora. The founders were all early team members at Simility, an enterprise fraud prevention company that was acquired by PayPal in 2018. The company offers 30+ combined years of experience within the global financial risk and fraud landscape. The founders and engineers have worked at companies like Google, PayPal, Amazon, Samsung, and WalmartLabs.
Effectiv noted that technologies in this space have been extremely expensive and were typically designed for and by large organizations. They want to democratize AI-driven risk management to make it accessible for any financial institution.
The company raised $4M of seed funding in a deal led by Accel on March 29th, 2022. REV Venture Partners and other undisclosed investors also participated in the round.
Effectiv intends to use the funds for technology development, growing the team in the U.S., and marketing.
Why we like it:
- Offers a predictive engine for fraud prevention
- Founders have prior experience building a fraud prevention company (Simility) that was acquired by PayPal in 2018
- The company ran a beta with its first customer in June 2021 and processed over $1B in loan volume. The platform is now live and Effectiv is actively onboarding new customers.
Did you know?
A new study from Javelin Strategy & Research shows that traditional identity fraud losses, caused by criminals illegally using victims’ information to steal money, exploded in 2021 to $24 billion (USD)—an alarming 79% increase over 2020.