RiskScout, an integrated BSA/AML compliance and fraud prevention platform for banks and credit unions, has raised a new round of funding led by LiveOak Ventures.
The round also included participation from Castle Creek Launchpad, the Bankers Helping Bankers Fund, Alloy Labs, Brue2 and C3 Ventures.
The company plans to use the investment to expand its team, develop its intelligent automation and AI-driven agents, strengthen integrations with banking technology providers and bring its platform to more financial institutions.
The new funding follows a year of significant growth for RiskScout.
The company says it more than tripled its revenue over the past year, while the number of banks and credit unions using its platform increased by more than 250%.
RiskScout serves financial institutions ranging from community banks with less than $100 million in assets to organizations managing more than $10 billion in assets.
The company expects demand for its platform to continue growing through the remainder of 2026.
Banks and credit unions are facing increasing pressure from fraud, money laundering and regulatory requirements.
RiskScout says fraud and money laundering schemes are increasingly connected, while financial institutions are also facing greater scrutiny around the effectiveness of their BSA/AML programs.
Many community institutions continue to operate with small compliance teams and legacy systems that handle fraud prevention and BSA/AML compliance separately.
RiskScout was founded by former BSA officers and bank examiners to address these challenges through a single platform.
RiskScout’s platform connects BSA/AML compliance and fraud prevention while integrating with core banking providers.
The platform uses intelligent automation and AI-driven agents to reduce manual work across financial crime operations.
Its capabilities include automating parts of alert investigation, customer risk profiling, enhanced due diligence, and SAR and CTR filing preparation.
The company also aims to help financial institutions identify and prevent fraud losses in real time.
As demand for its platform has grown, RiskScout has expanded its team with former BSA officers, compliance specialists and fraud examiners.
These employees bring experience from regulatory, compliance and financial crime investigations to the company’s product development and customer operations.
The latest investment will support further hiring as RiskScout expands its business.
RiskScout plans to invest the new capital in expanding its intelligent automation and AI-driven agents.
The company also plans to deepen integrations with core banking providers and other industry partners while making its platform available to more banks and credit unions.
RiskScout aims to help financial institutions reduce manual compliance work, manage financial crime risks and meet regulatory requirements without significantly increasing headcount.
