Tradeflock Asia

Founded: 2021
Funding Raised: $9M
Key Investors: Accel, Better Tomorrow Ventures and BHG VC

In an increasingly digital world, fraud is no longer an occasional risk but a persistent challenge for businesses. Financial institutions need to respond quickly to threats that arise in real-time. This is where Effectiv.AI steps in, offering cutting-edge, AI-powered fraud prevention and risk management solutions. By making this sophisticated technology accessible to financial institutions of all sizes, Effectiv is reshaping how fraud is detected and prevented.

Co-founded in 2021 by former Simility executives—experts in fraud prevention who helped PayPal in its acquisition of Simility—Effectiv.AI combines artificial intelligence (AI) with deep industry knowledge to build a robust fraud management platform. The company’s goal is to enable banks, credit unions, and fintech companies to protect themselves and their customers with scalable, no-code solutions.

The Vision: Democratise Advanced Fraud Detection

Ravi Sandepudi, CEO and co-founder, envisioned a world where even smaller financial institutions could access enterprise-grade fraud prevention technologies. Effectiv is founded on the belief that no company should have to compromise on security because of cost. As the financial world digitises, it faces increasingly sophisticated threats, including deepfake technology that fraudsters use to clone voices and manipulate images to gain access to accounts. Sandepudi recognises this as a pressing issue and states, “Fraudsters are using generative AI at an unprecedented scale, creating a critical problem we are committed to solving”.

By integrating AI, machine learning, and real-time analytics, Effectiv helps institutions detect fraudulent activity at various stages—onboarding, payments, and compliance. With the rapid adoption of technologies like FedNow for instant payments, the risk of fraud increases, but Effectiv is preparing to meet that challenge with innovative tools like DeviceAI, which enhances fraud detection through device biometrics​.

The Innovation: AI and Machine Learning at the Core

Effectiv’s platform excels in its ability to adapt. It doesn’t just stop at detecting fraud—it continuously learns and improves its accuracy through machine learning models that analyse billions of financial transactions in real-time. A major innovation is Effectiv’s no-code approach, which allows users to set up fraud prevention strategies without needing technical expertise. This flexibility ensures that financial institutions of all sizes can adopt high-end solutions.

To fight AI-assisted fraudsters, Effectiv employs holistic security solutions. According to Sandepudi, traditional security methods like one-time passwords or voice authentication are becoming less reliable. Instead, Effectiv takes a broader approach by evaluating entire user interactions to detect anomalies, ensuring higher accuracy in real-time fraud detection.

The Impact: Global Reach, Localised Solutions

Since its launch, Effectiv has processed more than $27 billion in financial products, working with a diverse clientele that includes banks and fintech companies such as BHG Money, Cardless, and Peapack-Gladstone Bank. The company’s solutions are currently processing over $100 million daily, offering institutions around the globe much-needed protection against evolving threats.

The Future: Scaling Up in the Age of Instant Payments

As financial services increasingly shift towards real-time payments, Effectiv is focused on staying ahead of emerging fraud risks. With the release of FedNow, the company is gearing up to expand its offerings, including the highly anticipated launch of DeviceAI. This technology will further enhance Effectiv’s payment fraud solutions by analysing suspicious behaviour on devices, an essential tool in the fight against ever-more sophisticated fraudsters​.

In a financial landscape that is rapidly evolving, Effectiv.AI is committed to staying at the forefront, helping institutions protect themselves with advanced, scalable, and adaptive AI-driven solutions. As Dinesh Katiyar from Accel noted, “Effectiv has figured out how to address fraud from nearly all angles in a truly scalable way”. With continued investment and innovation, Effectiv is poised to lead the charge in securing the financial ecosystem of tomorrow.

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Shubham Goyal
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