Goldman Sachs Group, JP Morgan Chase & Co , Citigroup Inc and Credit Suisse Group AG have invested $17.5m in Israel-based AccessFintech, a startup that sells technology to help financial firms better handle business errors, reported Reuters.
AccessFinTech has created a network that aggregates and helps resolve so-called business "exceptions", or errors that financial institutions make when carrying out business activities and that require interventions to be resolved.
In capital markets, these errors may include data discrepancies between counterparties on the financial terms of a trade or wrong information used to identify a client. Once spotted the errors are normally handled manually, via numerous phone calls and emails between various firms.
The startup’s technology reduces such time and resources by helping the firms communicate with each other, and also reduces the risks associated with the errors.
Large banks have become more willing to collaborate with each other and with startups, reported Reuters.
"We see a dramatic level of difference as to what banks are willing to collaborate on, or outsource to shared vendors instead of building internally," Reuters reported AccessFinTech founder and chief executive Roy Saadon saying. "We see the banks in a search for efficiency in the places where things are not competitive.”
All four banks have been working with AccessFintech over the past year, individually and as a group, the companies said. AccessFintech's customers also include asset managers, custodians and fund administrators.
The startup which also has offices in London and other financial centers, will use the funding to grow its business, accelerating efforts including in sales and client coverage, said Mr Saadon.