Belgian startup Yields.io, which develops an AI platform for risk management in the finance sector, has raised €1.25 million led by Volta Ventures with participation from Pamica NV.
Yields.io is an automated model monitoring service for the finance sector that identifies risk and errors in firms' model governance as well as discovering new business opportunities.
“After the credit crisis and the London Whale incident, model risk – which is the risk one takes by using mathematical models – has become center stage in the financial industry. The process of model testing is currently very manual,” explained Jos Gheerardyn, CEO of Yields.io.
“As a consequence, banks can hardly keep up with the increased requirements around model governance. Yields.io leverages AI to bring more transparency to this process and to empower model validators, model users and managers alike with a highly scalable and structured solution,” he said.
With the investment, the startup will grow its international sales and marketing efforts, according to Pamica BV’s Michel Akkermans, who is joining the Yields.io board.
Founded last year, the company is based in Ghent with an office in New York.