INTERNATIONAL – Goldman Sachs Group, JP Morgan Chase & Co, Citigroup and Credit Suisse Group AG have invested $17.5 million in AccessFintech, a startup that sells technology to help financial firms better handle business errors, the companies said on Thursday.
Israel-based 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.
AccessFintech’s technology will help reduce the time and resources needed to resolve these issues by helping financial institutions communicate with each other. It will also reduce the risks associated with the errors.
Large banks have become more open to collaborating with each other and with young financial technology startups on areas that do not give them an edge over rivals.