RegSmart

regtechcompliancegovernancerisk management

FOUNDING YEAR: 2015
LOCATION: United States
Last Update: 08/09/2020

Subscribe to the MEDICI Inner Circle Membership and gain access to an exclusive WhatsApp community where you can engage in discussions with global industry experts!

About

RegSmart provides software solutions and regulatory auditing and consulting services to banks and non-bank financial institutions. RegSmart is a SaaS company that provides a suite of automated BSA/AML, Cybersecurity Risk Assessment and Audit/Review tools that identifies and manages risks associated with money laundering and cyber crime

MEDICI Analysis

RegSmart provides software solutions and regulatory auditing and consulting services to banks and non-bank financial institutions. RegSmart is a SaaS company that provides a suite of automated BSA/AML, Cybersecurity Risk Assessment and Audit/Review tools that identifies and manages risks associated with money laundering and cyber crime

Focus

PRODUCTS & SERVICES

RegSmart offers automated BSA Risk Assessment and Audit Tool for banks & non-financial institutions. 1) RegSmart-BSA Risk & Review is an automated, FFIEC-compliant BSA Risk Assessment and Governance SaaS. It offers mitigating controls that are customized to high risk products, services, and customers. It has developed a proprietary risk algorithm that calculates risk categorical and institutional risk. 2) Cyber Solutions: It conducts a thorough analysis of the maturity of the 10 critical cybersecurity domains defined by US Department of Homeland Security’s US Cert listed below. It applies US Department of Commerce’s NIST standards in order to evaluate the resiliency of a user’s domain and their ability to recover from a security breach.

REVENUE MODEL

We are a subscription model. Prices start at less than $100/month for small institutions and increase to about $1500 per month for larger institutions.

PRIMARY PROBLEM SOLVED

Compliance with very complex BSA and OFAC regulations is time consuming (even mid-sized institutions can spend 100s of employee hours per year) and expensive. Regulatory examination results are often uncertain and stakes are high-with fines in the millions of dollars. Almost all banks and credit unions in the US still create BSA and OFAC risk assessments, "be Hand" on Excel spreadsheets and in Word document. RegSmart's SaaS creates a complete, complaint BSA/OFAC risk assessment and a set of complete narrative executive/board/examiner reports in 20% (or less) of the time the typical institution spends on manual systems. Really!

INTELLECTUAL PROPERTY

Patent(s) NOT_FILED

Traction

REVENUE

$0 - $99k in 2017

ACTIVE USERS:

10 Million in 2018

People

FOUNDERS

Mark Stetler

BOARD MEMBERS AND ADVISORS

Doug Foster

Tony Gasaway

NUMBER OF EMPLOYEES

1-10

INVESTORS:

Queen City FinTech

Stacked Capital

KEY EMPLOYEES:

Jeff Jones

Momentum

FUNDED

YES

TOTAL FUNDING

$2.32 M

DATE OF LAST FUNDING

Mar 2017

SEED & PRIOR FUNDING

$20 K

SEED CLOSED ON

Mar 2017

FUNDING SERIES

SERIES A  · $1.15 M  · Dec 2017

SERIES B  · $1.15 M  · Dec 2017

LISTED

NO

EXIT STRATEGY

Sale to a strategic partner/fintech company. Sale to a fintech PE.

Innovation Programs

Join the exclusive global FinTech community

Be a part of the global FinTech community on WhatsApp

RegSmart

About

RegSmart provides software solutions and regulatory auditing and consulting services to banks and non-bank financial institutions. RegSmart is a SaaS company that provides a suite of automated BSA/AML, Cybersecurity Risk Assessment and Audit/Review tools that identifies and manages risks associated with money laundering and cyber crime

Focus

PRODUCTS & SERVICES

RegSmart offers automated BSA Risk Assessment and Audit tools for banks & non-bank financial institutions. 1) RegSmart-BSA Risk & Review is an automated, FFIEC-compliant BSA Risk Assessment and Governance SaaS. It offers mitigating controls that are customized to high risk products, services, and customers. It has developed a proprietary risk algorithm that calculates categorical and institutional risk. 2) RegSmart-Cyber Solutions leverages the NIST CSF and US CERT CRR and provides the framework and functional capabilities to actively govern, manage and reduce complexity and risk. The application guides enterprises in matching IT resources to business mission and activities, and enforcing the principals of governance, awareness, security, resiliency, maturity, and accountability on the entire organization.

REVENUE MODEL

We are a subscription model. Prices start at less than $100/month for small institutions and increase to about $1500 per month for larger institutions.

TOP PROBLEM SOLVED

Compliance with very complex BSA and OFAC regulations is time consuming (even mid-sized institutions can spend 100s of employee hours per year) and expensive. Regulatory examination results are often uncertain and stakes are high-with fines in the millions of dollars. Almost all banks and credit unions in the US still create BSA and OFAC risk assessments "by hand" on Excel spreadsheets and in Word documents. RegSmart's SaaS creates a complete, compliant BSA/OFAC risk assessment and a set of complete narrative executive/board/examiner reports in 20% (or less) of the time the typical institution spends on manual systems. Really!

PRODUCT DEVELOPMENT STAGE

V2.0 or BEYOND

KEY DIFFERENTIATORS

RegSmart is a marriage of innovative, intuitive technology and continually updated regulatory expertise. We are TurboTax® for BSA and OFAC compliance. Our UI is simple enough that almost no client needs more than about one hour of training. Yet, with a small amount of data integration (which we can do via flat file), a client institution with a reasonably complex BSA profile (which includes almost all over about $1B in assets) can save hundreds of hours per year and be virtually guaranteed of a compliant risk assessment.

PRIMARY CUSTOMER TYPE

Enterprise - Banks or Financial Institutions

PRODUCT ATTRIBUTES

SaaS

STRATEGIC CLIENTS AND PARTNERSHIP

Banker's Toolbox : Distribution Partnership agreed. Data integration in process. BT has already referred customers to RegSmart.

Juniper Payment Systems : Distribution partnership committed. Contract in negotiation.

Traction

ANNUAL REVENUE:

$0 - $99k

ACTIVE USERS/ACCOUNTS:

10 Million

LIVE USERS/TRANSACTIONS:

Yes, in live production

CHANNEL STATUS

MULTIPLE CHANNELS

NUMBER OF CLIENTS OR PAYING CUSTOMERS

10

People

NUMBER OF EMPLOYEES

1-10

TEAM COMMENT:

Proven team of seasoned founders/officers. Successful in many previous ventures, with differing, but complimentary areas of expertise.

BOARD MEMBERS AND ADVISORS:

Doug Foster, Tony Gasaway

Momentum

FUNDED

YES

FUNDING COMPLETED

NO

LISTED

NO

FUNDING SERIES
Series A
Dec 2017
USD1.15 M
at a USD2.5 Mvaluation
Series B
Dec 2017
USD1.15 M
at a USD2.5 Mvaluation