Cognext Analytics is one of the fastest-growing fintech companies, recognized to build the industry’s first no-code regulatory compliance platform.
1. What is your business model?
Rapidly changing regulatory landscape is exponentially increasing the cost of compliance for banks and financial institutions. Globally Banks have seen over 500% Increase in regulatory compliance post global financial crisis of 2008. In spite of massive spent on regulatory compliance, banks are not able to address the challenges posed by new regulatory environment which demands greater transparency, explainability, responsiveness and audibility of various regulatory submissions and risk disclosures.
Incepted in 2019, Cognext Analytics is one of the fastest-growing fintech companies, recognized to build the industry’s first no-code regulatory compliance platform. Backed by Artificial Intelligence and Machine Learning, the company aims at simplifying and automating regulatory compliance while making it cost-effective for financial institutions.
We make money by licensing our platform to banks and financial services companies by charging an annual subscription fee.
2. How has the pandemic phase/last 12 months been from the business point of view?
In February 2020 Cognext had 2 clients and 9 team members in Mumbai. Today, we have 15 clients spread across 9 countries and 50 plus team members in Mumbai, Bangalore and office in London and New York. In last 12 months our revenues have grown by 300%. That’s pretty much sums it up.
3. With the banking system already in place, how are you bringing in novelty to the transactions?
Most Bank use incumbent platforms built using legacy technologies- inherently expensive, proprietary, closed, fragmented and resource-intensive. Cognext’s Platform X is built on cloud-native big data technologies such as Spark, Mongo, HDFS and a UX designed for the business user. The choice of these technologies brings high performance, AI-driven automation, scalability and open API based configurability at a fractional cost compared to legacy technologies. We have a track record of delivering a 50% time and cost reduction in risk and regulatory function with a 10X improvement in performance.
4. Can you tell us about the unique products CogNext has to offer?
Cognext offers industry’s first no code regulatory compliance platform, that leverages AI, to make regulatory calculations and compliance easy-to-manage, interactive, scalable and less costly for financial institutions, large and small. Cognext has developed applications in high-stakes risk and compliance areas transforming international finance, such as Basel III/IV, Credit, Market & Operational Risk, Basel III, CCAR/Stress Testing, Model Risk Management, and IFRS9./CECL
5. What were the challenges you faced in this journey? How did you overcome them?
Founders took an unconventional path not to raise capital and decided to bootstrap this venture. That made our journey far more challenging because it requires huge skills to optimise resources, find innovative ways to attract talent, rapidly build the platform and win customers while maintaining the cash flows. We had a track record of building successful global business which survived the 2008 global financial crisis so that survival tool kit and past experience came in handy this time around.
6. What would you advise young entrepreneurs entering the fin-tech space?
Stay hungry, follow your passion, money will follow you. There are enough billion-dollar problems waiting to be solved so jump on, find the next big problem and start building!
7. Where do you see your enterprise 5 years from now?
We see 100 plus banks and financial services companies as our clients, with a revenue of over $100 million.
Source: Business World
