Hawk Raises $56 Million in Series C Funding to Help Banks Fight Financial Crime

AI-powered anti-money laundering (AML) firm Hawk has raised $56 million in Sequence C funding.

The funding will gas product innovation for the Munich, Germany-based fintech, in addition to energy the corporate’s growth plans.

Hawk made its Finovate debut at FinovateSpring 2022 in San Francisco. The corporate was based in 2018.

Hawk , an organization providing AI-powered anti-money laundering (AML), screening, and fraud prevention options, has secured $56 million in Sequence C funding. The fintech, which made its Finovate debut at FinovateSpring 2022, will use the capital to assist Tier 1 banks leverage AI to battle monetary crime. The funding provides to the greater than $134 million the corporate has already raised.

“Each monetary establishment that desires to cut back compliance workloads and improve the accuracy of danger detection needs to be utilizing AI to realize these targets,” Hawk CEO Tobias Schweiger stated. “The outcomes are compelling—we’ve been capable of improve alert accuracy to virtually 90% in some instances, whereas considerably slicing false positives. We’re additionally uncovering twice as many beforehand undetected instances of ‘novel’ prison exercise.”

Hawk’s funding spherical was led by One Peak, which joined present buyers Macquarie Capital, Rabobank, BlackFin Capital Companions, Sands Capital, DN Capital, Picus, and Coalition.

Hawk’s expertise empowers banks to maneuver past conventional, rules-based anti-money laundering and fraud combating strategies that usually produce a large variety of false positives that require human evaluate and intervention. This drives up the price of combating monetary crime. Additional, fraudsters are more and more adept at circumventing and subverting rules-based AML and fraud detection methods. To deal with this, Hawk places AI-powered expertise to work rising the fraud detection accuracy to search out extra crime whereas maintaining false positives low.

“AI is in our DNA at Hawk,” Schweiger stated. “Our mission is to offer monetary establishments with the expertise, the experience and the assist that they should understand the transformative impression that machine studying and generative AI can have throughout their anti-financial crime operations.”

With greater than 80 clients all over the world, Hawk boasts companions starting from massive Tier 1 banks to mid-market monetary establishments and fintechs. Hawk’s newest funding will assist deliver continued product innovation to those companies, in addition to assist the corporate’s growth plans.

Based in 2018 and headquartered in Munich, Germany, Hawk made its Finovate debut at FinovateSpring 2022 in San Francisco. On the convention, the corporate demonstrated its AI Surveillance Suite, which makes use of a mix of AI and conventional guidelines to establish anomalous habits in real-time.

Hawk started this yr with the launch of its Anti-Cash Laundering AI Overlay, which permits banks to cut back false positives and detect novel crime with out having to swap out the present AML programs. The answer, based on Hawk Chief Product Officer Wolfgang Berner, is “delivering prediction accuracy in extra of 85% (and) lowering false positives to lower than 15%.” Berner underscored that the overlay achieved all of this by way of AI optimization “moderately than a complete system overhaul.”

In February, the corporate appointed Ben Pannier as Chief Know-how Officer. Pannier involves Hawk having held management positions at companies together with Tide, Zalando, and PayU. That very same month, Hawk was named to the Chartis 2025 Monetary Crime and Compliance 50 for its real-time transaction monitoring expertise.

Photograph by Matthias Schröder on Unsplash

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