Cogni, a digital banking startup, has received $1.7 million in its latest funding round. Per an exclusive report from US News, the New York-based startup that offers deposit holds on reservations for things like hotels and travel, closed the lucrative seed funding round Monday.
Though it has yet to officially launch, the company is already two years in the making. It boasts a fractional share of ownership by banking giant Barclays.
Using AI and machine learning, Cogni helps clients with its bank accounts get detailed pattern sets of income volatility and trends.
“We are not innovating a lot within the financial services space but we are innovating a lot in the lifestyle space,” said CEO Archie Ravishankar in an interview with Reuters. That indicates that Cogni is unlikely to apply for a charter that is common for banking operations. Instead, it could borrow the charter to maintain its classification as a technology startup.
Cogni could offer attractive options to brands looking to advertise as well, as its platform is able to promote travel, hospitality and entertainment companies. According to the Reuters report, this could be the main source of revenue going forward for the app that already has big backing.
Currently, Cogni is more popular outside of the United States than inside via the WeChat app platform
“There is a huge benefit for the merchants,” said Ravishankar.