Dublin-based financial software firm Corlytics has raised €1m from a syndicate of investors including Cork venture capital firm Kernel Capital and Enterprise Ireland, in order to double its staff.
Corlytics's software helps institutions ensure they comply with banking and other regulations. Regulators are more focused on compliance than ever, a field that covers everything from money-laundering prevention, to requirements to give more data to regulators for stress tests.
Non-compliance is costly; US and European banks paid over $65bn in penalties and fines stemming from compliance errors in 2014 alone. Corlytics's technology uses predictive risk techniques to evaluate when compliance mistakes are most likely to happen in financial institutions, and minimise the fallout. It uses its own data from experiences in previous non-compliance situations as well as real-time technology.
The company was the main industry data provider referenced in the Bank of England's recent Fair and Effective Markets Review, a study conducted to identify legal loopholes and regulatory gaps that allowed scandals like foreign exchange manipulation and the Libor rate-rigging debacle.
Corlytics business was founded in 2013 by John Byrne. It is headquartered in Dublin and has offices in London, New York and Boston.
The €1m investment will allow the business to double its staff to 30. It was awarded through the Bank of Ireland seed and early stage fund, a €32m fund aimed at export-orientated start-ups in the technology, food and financial services sectors, as well as university spin-off companies.
"Corlytics is an excellent startup, developing a novel product which addresses a very large and unmet market need, assisting financial institutions in the difficult task of satisfying regulatory requirements," said Kernel Capital partner Ger Goold. Kernel has invested in over 80 companies who collectively employ almost 1,200 people and have been granted 150 scientific patents.