Greenlite AI, a San Francisco-based startup specializing in compliance software for financial institutions, has successfully secured $15 million in funding. This investment will enable the company to refine its technology and work to integrate additional banks and fintechs on its waiting list.

Leading the Series A funding round was Graylock, with contributions from Thomson Reuters Ventures, Canvas Prime, and Y Combinator. Will Lawrence, a co-founder, expressed that the funding will significantly enhance the capabilities of Greenlite’s software, which is already assisting institutions like Grasshopper Bank and Mercury in streamlining their compliance processes.

Greenlite’s software is designed to aid financial crime teams in collecting vital information, updating sanctions, and conducting thorough customer compliance checks. As noted by Christopher Mastrangelo, the director of compliance at Grasshopper Bank, the software has reduced the time required for enhanced due diligence by nearly 70%, enabling faster and more effective compliance with the Bank Secrecy Act.

Andrew Stines, another bank leader, shared that Greenlite has saved “hours of effort,” allowing analysts to focus on synthesizing information rather than spending excessive time on data collection. This improvement leads to higher quality results while significantly lowering costs, attesting to the efficiency of Greenlite’s AI-driven solutions.

The Role of AI in Financial Compliance

Greenlite AI utilizes advanced AI agents to gather and synthesize customer documents and transaction profiles. According to Lawrence, these agents improve the efficiency of analysts by filtering through extensive customer data, helping identify genuine risks of fraud or money laundering.

The AI technology aggregates information from diverse sources—such as business registries and social media—allowing analysts to focus on more complex cases. Lawrence emphasizes that Greenlite acts like a parajurist, preparing critical information files to assist in making high-quality decisions.

Looking Ahead

With the recent funding, Greenlite is positioned to strengthen its technology and broaden its reach within the financial services sector. Lawrence views the investment as validation of the company’s mission to create top-tier AI agents that assist in regulatory compliance while acknowledging that AI alone cannot eliminate risks associated with money laundering.