Corlytics, whose platform enables financial institutions identify avoidable losses and fines, has raised €1 million of investment capital.

The investment group is made up of Kernel Capital, which manages the Bank of Ireland Seed and Early Stage Fund, and co-investors Enterprise Ireland, angel investors and the company founders.

Headquartered in Dublin with offices in London, New York and Boston, Corlytics is the main industry data provider referenced in the Bank of England’s ‘Fair and Effective Markets Review’ which was released earlier this month.

Corlytics CEO John Byrne said:  “We are very excited about Corlytics prospects in this new growth market. We are delighted to have a partner like Kernel Capital, who together with Enterprise Ireland have been key in helping us prove our solutions with key initial clients.”

Kernel Capital’s Ger Goold (left), John Byrne, David Mountjoy from Bank of Ireland and EI’s Leo McAdams (right)

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Ger Goold, Partner, Kernel Capital added: “Corlytics is an excellent start-up, developing a novel product that addresses a very large and unmet market need, assisting financial institutions in the difficult task of satisfying regulatory requirements.”

David Mountjoy from Bank of Ireland commented: “The investment in Corlytics underlines how a niche offering can succeed with the right mix of intelligence, innovation and entrepreneurial spirit.”

It is estimated that compliance risk costs global banks up to $4bn per annum, with US and European banks having paid over $65 billion in penalties and fines in 2014.

Founded in 2013, Corlytics’ technology assists banks to minimize regulatory breaches by using predictive risk analytics applications to evaluate, benchmark and manage market risk.

Corlytics previously tapped the taxpayer in July 2014, when the company secured €200,000 investment from Enterprise Ireland.