Simudyne's technology simulates accurate virtual models to help banks make better choices about their about their future decisions

Barclays One Churchill Place Vertical Shot

Barclays Head Office (Credit: Barclays)

Simudyne is transforming the way in which banks make decisions through artificial intelligence – and now it’s been given a boost with $6m (£4.6m) in new funding.

The London fintech has secured the Series A fundraising round led by Barclays, bringing its total funding to date up to $10m (£7.7m).

Other notable investors include Graphene Ventures, which backed travel disruptors Lyft and Snap, as well as Gauss Ventures, which was an early-stage investor in UK challenger banks Tandem and Revolut.

Simudyne develops simulation technology that uses AI to help banks improve their decision-making regarding business strategies, fraud detection and analysing financial markets by creating predictive models for things like stress testing and risk assessments.

CEO Justin Lyon said: “Simudyne technology is proven to help banks solve challenges such as understanding market contagion, stress testing and simulating market execution.

“We will build on our current growth trajectory by driving client acquisition within financial services while entering attractive new sectors later this year.

“Simulation will be a multi-billion dollar market within the next five years and we will be best positioned to capitalise on that opportunity.”


How Simudyne will use funding to help banks

Simudyne says traditional approaches to modelling are no longer adequate for impact assessments in the modern world, and that its products are “the most accurate and advanced way to build prescriptive analytics on the complex adaptive environment we live in”.

Banks using the AI-driven technology are able to quickly simulate a range of future scenarios and measure their impact in a safe, virtual environment.

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Simudyne’s technology helps banks simulate the impact of a range of possible scenarios

This effectively provides a safety net to financial institutions as they look to test out new strategies and decisions, because they can test-drive these different scenarios without the fear of failure or real-world losses.

Simudyne was formerly a part of the Barclays accelerator programme, which is partnered by the Techstars entrepreneurial network and focuses on supporting fintechs through their early-stage growth and development.

It also took part in a Mastercard scale-up programme, and Mr Lyon has credited both these initiatives as being transformational in the development of his business by providing access to a global network of industry specialists and funding opportunities.

Barclays managing director of principle investments Andy Challis said: “Partnering with high-growth fintech companies like Simudyne is core to our technology strategy.

“As its adoption becomes more widespread, Simudyne’s platform will ultimately help cultivate a stronger, more efficient, tech-enabled financial services sector.”

Simudyne registered a 600% year-on-year revenue increase during 2018, and has grown its current workforce to 30 people with expertise in market simulation, fraud detection and risk management.

It plans to use the new investment to further increase the size of its team, as well as develop new applications for its product, such as market execution and anti-money laundering simulations.