How this startup helping banks save millions in regulatory fines

How do you feel the fintech ecosystem evolving in the coming years?

We believe that fintechs' journey will go to the next level with increasing adoption of digital systems. We believe that the ecosystem is getting matured. Many organisations have learnt in the last few years what to do and what not to do. Therefore, we see that a lot of maturity coming in the digital transactions space across fintechs where fintechs will play a larger role in the lives of the common man in the country. We have seen rapid adoption of UPI (Unified Payment Interface) in the last two years. From small shops to big merchants, the adoption is huge. We feel that this momentum will continue and a lot of security aspects will come to picture. So, fintechs will play a meaningful role in the lives of common man going ahead.

Moringa Techsolv operates in the regulatory technology space that helps financial institutions to comply with regulations. Is compliance-related solution a growing domain?

As transactions are growing, compliance becomes an essential part of any transaction. Whether it is know your customer (KYC) or anti-money laundering or related areas, we at Moringa make the regulatory compliance easy. We make it enforceable, auditable and adoptable. Moringa doesn't focus on reactive audit, it also helps financial institutions in proactive enforcement from discovery till resolution. Similarly, money laundering is one of the gravest concern areas of financial world. Our CladRysk Anti-Money Laundering solutions implemented by many financial institutions is a fully automated platform that raises red flags on suspicious transactions before they happen. Its AI, ML-powered algorithm also draws patterns taking into account millions of transactions. We also provide several other solutions that help financial institutions to stay compliant with the Reserve Bank of India's regulatory directions.

How do you view the competition given that many IT players and other technology firms provide such solution?

We are uniquely positioned as compared to other system integrators or players who bundle all services. We are a nimble platform that is affordable to even small players. Most regtech solutions come up with a hefty price tag which small players like cooperative banks or small banks can't afford. We provide built-in connectors that reduces need for any additional projects. We provide quality service taking into account all security features at an affordable price, which is our unique positioning in the market.

We have seen the Reserve Bank of India cancelling many licenses of cooperative banks. Even licenses of NBFCs have also been cancelled in recent past due to non-compliance with regulatory norms. Against this backdrop, how do you see the market opportunity among small players?

What we have seen in cooperative banks, many can't afford big-ticket regtech solutions given by the big players. What we have done is that we have taken out complexity out of the regulatory compliance space. We have solved the puzzle by making it very simple. Banks with 50 branches or less can easily comply with all regulations of RBI with our solutions. Many customers are not aware about how to make the implementation. So, we make the implementation of regulatory enforcement through our technology solutions.

India has seen many app-based digital players coming into picture in recent years, providing all kinds of financial services. Does Moringa's solution relevant for these new age players?

Moringa's solutions become more relevant with emergence of more digital players. Because, with every introduction of app, you are adding a component of compliance. For example, the app has to be compliant, it has to be integrated properly. Also, the app has to be monitored. Fintech players have to come up with apps that are relevant to the customers. Against this backdrop, our solutions help the fintechs to remain compliant without losing focus on their core operation.

How is the market response so far to Moringa's regtech solutions? What are your future expansion plans?

Moringa Techsolv is witnessing rising adoption of its platform-led solutions across financial services institutions. At present, we have several clients in the BFSI (banking, financial services, insurance) space in India. Many banks, NBFCs and cooperative banks are also actively evaluating our solutions for implementation in the near future. As far as expansion plans are concerned, we are actively looking at overseas opportunities with possible launch in South Asian region in the coming days.

Have you raised any funds so far? How are you going to fund your expansion plans?

We have been boot-strapped so far and have done the seed funding through our internal resources. Now, we are ready to raise our series A funding in near future. We have got the momentum and feel that investors can independently validate our growth and potential. So, we are planning to raise funds in the near future.