Stockholm-based Bits, a provider of compliance and onboarding infrastructure for regulated fintech firms and banks, has secured new funding to accelerate product development and regional expansion.
The company said it will use the capital to increase automation across financial crime and fraud workflows, while broadening coverage of regulatory and data sources across Europe. The move reflects sustained investment across the European fintech ecosystem in tools that reduce onboarding friction and strengthen controls as supervisory expectations rise.
Building the “plumbing” for regulated growth
Across Europe, banks and regulated fintechs face a familiar tension: they are expected to deliver fast, digital-first customer experiences while meeting stringent requirements around identity verification, anti-money laundering (AML), sanctions screening, and ongoing monitoring.
Bits positions itself as infrastructure that sits behind these processes, helping institutions standardise onboarding and compliance operations without rebuilding internal systems from scratch. In practice, that means enabling teams to orchestrate checks, integrate data sources, and manage risk decisions in a way that can be audited and adapted as regulations evolve.
Funding priorities: automation and broader data coverage
Bits said the funding will be directed toward two primary initiatives:
- Increasing automation across financial crime and fraud workflows: The company plans to expand automated decisioning and workflow capabilities that reduce manual review time, improve consistency, and help compliance teams focus on higher-risk cases.
- Expanding coverage of regulatory and data sources across Europe: Bits aims to deepen its ability to support cross-border operations by integrating additional regional data sources and regulatory requirements, enabling customers to scale into new European markets with fewer operational bottlenecks.
For regulated firms, the ability to adapt quickly to changing rulebooks—and to demonstrate robust controls to supervisors—has become a competitive necessity. Platforms that can centralise workflow logic, maintain audit trails, and incorporate local data sources are increasingly viewed as strategic infrastructure rather than optional tooling.
Why this matters for European fintech and banking
As digital onboarding volumes grow, compliance teams are under pressure to maintain quality and speed simultaneously. Manual processes can introduce delays, inconsistent outcomes, and higher operating costs—particularly for firms expanding across multiple jurisdictions.
By focusing on automation in financial crime and fraud workflows, Bits is targeting a core pain point: reducing repetitive tasks while strengthening the reliability of controls. Meanwhile, expanding regulatory and data-source coverage across Europe addresses a second challenge—operating across fragmented national systems where requirements and available datasets can vary widely.
The funding signals continued momentum for infrastructure providers that help regulated institutions modernize compliance without compromising governance.
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