Prakash Ramachandran, Chief Financial Officer of Digital Reasoning / Photo courtesy of Digital Reasoning
By MATT BLOIS
An Australian finance company has invested in the Franklin tech company Digital Reasoning to help expand its reach in the finance industry.
Digital Reasoning provides artificial intelligence technologies to solve a variety of problems in the financial services and health care industries.
On Wednesday, Digital Reasoning announced in a press release that Australian finance company Macquarie had decided to invest in the company. The press release didn’t disclose how much the company invested.
Digital Reasoning CFO Prakash Ramachandran said that in addition to the investment, Digital Reasoning will also partner with Macquarie to look for new ways to apply its technology to the finance industry.
“We are talking to some of our current customers to figure out other potential problems we can solve using our technology,” he said. “How can we deploy this to mitigate some risk for you? … There are lots of other opportunities in banks and we have a number of ideas and a number of requests from current customers.”
Ramachandran said Digital Reasoning also hopes the partnership with Macquarie will allow it to find more customers in Australia and in Asia.
“We already have a good customer base in the U.S. and Europe. Now Australia and Asia are the new frontiers for us, so obviously that is an expansion opportunity,” he said.
Currently, the company helps banks monitor electronic communication to look for insider trading or market manipulation using artificial intelligence. Ramachandran said regulators require banks to monitor electronic communication for this kind of bad behavior.
“We satisfy a major regulatory requirement for (banks)” he said. “There are indicators of that bad behavior in electronic communication … If you’re a large bank with millions of e-mails you cannot have human beings monitor those communications.”
This investment follows $30 million in funding raised by the company in March 2018. BNP Paribas led that round of investment, but other investors included Barclays, Square Capital, Goldman Sachs, Nasdaq, Lemhi Ventures, HCA and the Partnership Fund for New York City.
According to a press release, Digital Reasoning used that funding to offer more products for capital markets and wealth management.