Bits lands fresh capital to transform compliance automation
Swedish startup Bits has raised €12 million in new funding to accelerate the automation of FinTech compliance workflows, targeting one of the industry’s most costly and manual pain points. The capital will be used to deepen the company’s product capabilities, expand its engineering team and push into new European and global markets.
Built for banks, neobanks, payment providers and crypto platforms, Bits offers an orchestration layer that connects disparate regulatory tools and data sources into a single automated workflow. Instead of compliance teams manually stitching together KYC, AML, sanctions screening and transaction monitoring, the platform centralises these checks and applies configurable rules engines and AI-driven decisioning.
Targeting the high cost of compliance in financial services
Financial institutions face mounting pressure from regulators and rising costs associated with anti-money laundering and fraud prevention. Many rely on legacy systems and spreadsheets, creating operational risk and inconsistent oversight. Bits aims to replace this fragmented environment with a unified, API-first infrastructure that can be embedded directly into onboarding and payment flows.
By automating repetitive checks, the startup says clients can significantly reduce false positives, shorten customer onboarding times and maintain a clear audit trail for supervisors. The platform is designed to adapt quickly to new rules, allowing compliance teams to update policies in software rather than through lengthy IT projects.
Scaling product, partnerships and global reach
The new investment will support further development of Bits’ core engine, including more advanced risk scoring models, broader integrations with third-party data providers and enhanced analytics dashboards for compliance officers. The company also plans to grow its partner ecosystem, working with regtech vendors and FinTech platforms that want to embed compliance automation into their own offerings.
As regulators worldwide tighten expectations around customer due diligence and cross-border payments, demand for scalable, software-driven compliance is expected to climb. With its latest funding round, Bits is positioning itself as a key infrastructure player for financial institutions seeking to modernise how they manage regulatory obligations while keeping pace with rapid digital growth.