Claira, a US-based document intelligence technology company, has secured an undisclosed investment from Citi Spread Products Investment Technologies (SPRINT), the investing arm of Citi’s global spread products unit.
Established in 2019, Claira was spun out from the technology and venture arm of Exos Financial. It specialises in legal contract understanding.
Claira’s technology is built using advanced data science for revealing the underlying logic that is trapped in financial contracts. It is pre-trained to understand legal language to give quicker, deeper, and more actionable results with complete transparency as well as traceability in its decision making.
Citi will partner with Claira for reinventing document intelligence and developing next-generation data analysis solutions. This is expected to support Citi’s business, beginning with municipal prospectuses and collateralised loan obligations (CLO).
Citi Secondary CLO, ABS and CDO trading global co-head Vitaliy Kozak said: “CLO professionals can spend more than 20 minutes analyzing a single structured credit document.
“Through Claira’s technology, the document analysis process is vastly reduced, cutting to mere minutes the time it takes to extract relevant sections, perform initial analysis, and interpret results to deliver actionable insights on pricing.”
Claira employs proprietary natural language understanding (NLU) technology for unlocking highly important data insights embedded within financial agreements. It then delivers the data in a standardised format which is usable readily for pricing, risk, trading, and operational processes.
The company’s solution is said to help finance professionals to understand legal contract language quicker and more accurately. This helps them to negotiate complex agreements faster, lower business risk, and identify opportunities in the market faster.
Claira said that it will use the new capital for product development and go-to-market strategy to expedite digital transformation.
Claira co-founder Eric Chang said: “Financial institutions recognise the importance of accurately capturing and evaluating stipulations, terms and conditions and other transaction terms across their business, but most tools currently available are not able to decipher complex financial transactions.
“Claira was incubated within Exos Financial, and we’re excited to now collaborate with Citi SPRINT to bring next-generation document intelligence and help create massive time efficiencies for their industry-leading Spread Products business.”
