The financial sector’s fight against fraud and money laundering has grown increasingly complex as regulatory requirements evolve. A cornerstone of this effort is Know Your Business (KYB) verification, a mandatory process designed to ensure businesses are legitimate and compliant. Yet, for many banks and fintechs, KYB processes remain plagued by inefficiencies. Manual document reviews, often requiring hundreds of analysts, slow down onboarding, introduce human errors, and inflate operational costs. These delays can cause as much as 50% drop-off in onboarding funnels, representing a significant revenue loss.
Recognizing this inefficiency, Arva AI has stepped in with a transformative solution, earning the trust of investors in its latest $3 million funding round. The round was led by Gradient, Google’s AI-focused venture fund, with contributions from Y Combinator, Amino Capital, Olive Tree Capital, and prominent fintech angels. This funding marks a significant milestone for Arva AI as it works to revolutionize how banks and fintechs approach compliance.
Automating KYB with Generative AI
Arva AI’s platform addresses the primary pain point of manual KYB verification by automating 80% of compliance tasks. Leveraging generative AI, the system processes fragmented and unstructured data from registries, websites, documents, and social media to provide instantaneous risk assessments. Traditional methods, which require days of manual review, are replaced with AI agents capable of completing the process in seconds.
“At Arva, our mission is to make business verification fast, accurate, and seamless,” said Rhim Shah, CEO and co-founder of Arva AI. “For financial institutions navigating rising costs and stricter regulations, efficient and secure KYB processes are no longer optional—they’re critical.”
The platform’s modular design allows seamless integration with existing compliance systems or the option to act as an end-to-end solution. From web due diligence and fraud detection to customer communication, Arva AI ensures compliance without the inefficiencies of traditional methods.
Driving Efficiency and Compliance
Arva AI’s capabilities go beyond simple automation. Advanced AI document intelligence ensures accurate fraud detection and data extraction, while the platform’s web crawling capabilities provide a thorough understanding of business entities. By automating these repetitive tasks, Arva AI frees compliance teams to focus on higher-level decision-making, ensuring faster customer onboarding and stronger adherence to regulatory standards.
The impact is significant:
- Reduction in operational costs by up to 80%.
- Instant onboarding for low- to medium-risk cases.
- Drastically reduced human error, ensuring a more reliable compliance process.
Arva AI’s funding will fuel its ambitious roadmap. The company plans to develop a comprehensive suite of AI-enabled tools to handle all low- to mid-risk compliance tasks. This vision aligns with the needs of a $24 billion compliance market in the U.S. alone.
“Our end goal is to have a whole suite of AI workers that can handle manual compliance work for banks and fintechs,” said Shah.
The investment will also support Arva AI’s expansion into global markets, enhancing its ability to meet growing demand. Early adopters, including Keep in Canada and Tola in the U.S., are already reaping the benefits of streamlined compliance processes.
Backed by Expertise and a Strong Team
Arva AI’s founding team brings deep expertise in fintech and AI. Rhim Shah, formerly the financial crime product lead at Revolut Business, has firsthand experience with the challenges of compliance. Oli Wales, the company’s CTO and former lead product engineer at Opvia, complements this with his engineering background, which includes roles at The Trade Desk and Iventis. Together, they have crafted a platform designed to address the most pressing compliance challenges faced by financial institutions.
“At Gradient, we see the transformative potential of AI in solving complex, real-world challenges,” said Eylul Kayin, Partner at Gradient. “Arva AI’s approach to automating business verification is exactly the kind of innovation the industry needs, and we’re excited to support their growth.”
Arva is guided by a team with proven expertise and fueled by its AI-driven platform, the company is set to empower compliance teams, streamline onboarding, and redefine how financial organizations meet regulatory demands. For banks and fintechs around the globe, the era of manual compliance is giving way to smarter, faster, and more reliable solutions.