Effectiv is a next-generation platform that manages risk for financial institutions, banks, credit unions and fintechs. With cutting-edge AI and an intuitive user interface, Effectiv’s solutions enable rapid adaptation to new trends and aim to significantly reduce the cost to manage fraud and risk.
Since the COVID-19 pandemic outbreak, financial institutions and banks have been digitizing their entire systems. Fraudulent activity has increased at a rapid pace, with fraud losses estimated at $19 billion in 2020. Newer options like peer-to-peer and buy-now-pay later have seen significant growth, increasing fraud complexity and risk patterns. In this rapidly evolving world, static strategies can’t safeguard for long.
Effectiv’s founding team were all early team members at Simility, an enterprise fraud prevention company that was acquired by PayPal in 2018 . Their experience at Simility, PayPal, and Synchrony was in the development of solutions for US Bank, Discover, Synchrony, and millions more PayPal merchants. After recognizing that the technologies they had built were not easily accessible to smaller financial institutions, the team began work on Effectiv. They have over 40 years of experience in building fraud mitigation and risk mitigation systems.
“Dialogues with industry experts from banks, credit unions, combined with our team’s decades of experience in this space, helped us validate the gap that we saw in the market,” says Ravi Sandepudi, co-founder and CEO of Effectiv. “Cutting-edge technologies that drive Effectiv have so far been prohibitively expensive and were designed for and by large organizations. Effectiv is a project that aims to change all of this by making AI-driven risk mitigation accessible to every financial institution. Every organization, regardless of size, should have access to best in class safety measures to protect their members and customers.”
Ritesh Arora (Co-founder and President, Effectiv) added: “We are building a platform that is designed from the ground up to be extremely easy to integrate and implement. Effectiv integrates with the best data services available and our proprietary AI determines when to use (and pay) for a data signal. Our goal is to help teams manage their risk strategies without relying on developers.”
“As the world is on a digitization spree, we know that challenging times are ahead for financial institutions. We see tremendous value in Effectiv’s innovative approach to fraud and risk management. This powerful and adaptable AI platform could help identify these emerging trends. We are looking forward to working with the Effectiv team in making these world class solutions accessible to every financial institution.” says Dinesh Katiyar, Partner at Accel
“We were attracted to the pedigree of Effectiv’s founding team and their decades of experience tackling fraud at some of the world’s largest organizations. As one of the earliest investors at Palantir and with an affiliation to LexisNexis, we are passionate about fraud and risk mitigation and we see Effectiv spearheading a dramatic evolution in this space.” says Kevin Brown, Founder Partner at REV.
The funds will be used by Effectiv for technology development, team growth in the US, as well as marketing. Effectiv has already processed more than $1 billion in loans volume and onboarded their first customer in June 2021. The platform is now available and active onboarding is underway for new customers. To kickstart their US growth, the company also hired industry veterans Bob Stock and Mike Persichini to be an advisor.