Automated Decisioning for Fintechs | Taktile

Automated Financial Decisioning and Taktile's Solution

The underlying logic powering numerous financial choices – such as credit line approvals – is frequently hard-coded. Modifying this logic can prove difficult and time-consuming. For instance, a credit department head seeking to revise a bank’s lending standards would likely need to submit a request to the IT department.

Taktile's Founding and Core Concept

Maximilian Eber and Maik Taro Wehmeyer, the founders of Taktile, first encountered these limitations while working at QuantCo, a firm specializing in AI applications for businesses. They met during their studies at Harvard University. Recognizing a recurring need, they established Taktile in 2020 with the goal of simplifying the process of altering automated decision-making systems.

“We observed a pattern of repeatedly constructing similar functionalities,” explained Wehmeyer, Taktile’s CEO, in a TechCrunch interview. “This led us to consolidate our knowledge and develop a platform centered around this capability.”

The Taktile Platform's Capabilities

Taktile’s platform, previously covered in our reporting, empowers risk and engineering teams within fintech companies to design and oversee automated decision-making workflows. Users can experiment with data integrations and track the performance of predictive models within these workflows. Furthermore, A/B testing is supported to assess the effectiveness of each workflow.

As an illustration, a bank could utilize Taktile to predict the impact of lowering the minimum age for account applications from 25 to 21 on customer retention rates. Alternatively, a lending institution could create a workflow that automatically extracts data from documents, summarizes individual cases, and suggests appropriate actions for manual review.

“We have made substantial investments in our data infrastructure,” Wehmeyer stated. “This allows users to create a comprehensive view of their customers throughout all critical decision points, encompassing initial onboarding, fraud detection, and operational processes like collections.”

Competitive Landscape

The market includes other players. Noble, for example, provides a rules-based engine for editing and deploying credit models. Companies like PowerCurve also offer similar tools designed to streamline operations for risk management teams.

Growth and Client Acquisition

Taktile is demonstrating strong growth. Its annual recurring revenue increased by 3.5 times year-over-year in 2024. The company’s customer base has expanded to include prominent fintech firms like Zilch and Mercury.

“Existing software solutions are often significantly outdated,” Wehmeyer noted. “We have frequently secured contracts because, even if we weren’t superior to a specialized vendor in a specific area, clients prioritize a comprehensive, end-to-end solution.”

Series B Funding

Taktile recently announced the completion of a $54 million Series B funding round. Balderton Capital led the investment, with participation from Index Ventures, Tiger Global, Y Combinator, Prosus Ventures, Visionaries Club, and Larry Summers, a member of the OpenAI board. This brings the total funding raised by the 110-person company to $79 million. The new funds will be allocated to product development and expanding Taktile’s enterprise sales team.

“From a financial standpoint, raising additional capital wasn’t immediately necessary – we had over two years of runway remaining,” Wehmeyer explained. “However, we experienced significant investor interest due to our strong performance in 2024. The fintech and financial services sectors are typically characterized by low margins, making unit economics a key consideration. Vendor consolidation is a trend gaining traction this year.”