Sphinx lands $7.1M to streamline bank compliance
Sphinx, a regtech startup focused on automating compliance operations for financial institutions, has raised $7.1 million in new funding, according to an announcement highlighted in European tech and fintech news coverage on February 17, 2026.
The company is pitching its platform as “the last hire you’ll ever need,” aiming to reduce the heavy reliance on manual reviews and outsourced compliance tasks that still dominate many banks’ workflows. Industry estimates cited alongside the news suggest financial institutions spend more than $200 billion annually on compliance, with a significant share going to labor-intensive checks that conventional software struggles to automate end-to-end.
Why compliance remains expensive
Despite years of digitization, compliance teams often act as the “human glue” connecting fragmented systems—pulling data from multiple tools, verifying documentation, and translating policies into repeatable processes. That work is difficult to standardize across jurisdictions and product lines, and it can be slowed further by legacy infrastructure and inconsistent data quality.
What Sphinx is trying to change
Sphinx is positioning its software to handle routine, high-volume compliance activities that typically require manual intervention. The goal is to help institutions move from reactive, review-heavy operations toward more automated, auditable workflows—potentially lowering costs while improving consistency and turnaround times.
While details on investors and valuation were not provided in the available text, the funding underscores continuing demand for regtech tools as banks face ongoing pressure to control compliance spending without weakening oversight.
The round also arrives amid a broader pattern in European startup funding coverage, where fast-growing companies increasingly seek capital and customers across borders, particularly in the U.S. market.
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