Hexanika’s advanced data management and reporting solutions helps financial services firms adapt to the fast-changing environment. It is here to make Big Data work for an enterprise by providing simplified, scalable products and services to tackle rapid change, regulatory pressures and increasing global competition. Here is an excerpt from the Interview with Yogesh Pandit CEO of Hexanika.
How do you define the term RegTech?
At Hexanika, we believe Regtech is ‘Technology that helps streamline the process of regulatory compliance through automation and consolidation, thus reducing cost and time spent on regulatory operations and improving efficiency and decision-making capabilities.’. Regtech usually involves adopting technologies such as big data, artificial intelligence and cloud to address the challenges in the regulatory compliance and associated data management process.
How big is your team and who are the critical players ?
Hexanika was established in 2014 with the aim to enable organization ‘Succeed With Data’. Today, the team has now grown to 30+ people based in USA and India. The key members of the management team and advisors have been working in the financial services and technology industry with a collective experience of 300+ years.
In addition to a great team of founders and advisors, Hexanika has also found support from industry experts with whom we now have a solid partnership.
Brief overview about your product/service offering?
Hexanika provides customers with innovative industry specific data solutions by using out of the box / ready to use patented algorithms based on Artificial Intelligence (AI) and Big Data. Multiple disparate and manual data management (sourcing, ingestion, aggregation, consolidation, etc.) and reporting processes get automated and consolidated. Thus, the business processes become effective and efficient.
On top of the platform, HEXANIKA and, its clients and partners, have built customized industry-specific solutions that provide business outcome. The solutions come with pre-built data model, rules and reports.
Solutions for Banking, Insurance & Financial Services (BFSI):
- SmartReg for regulatory reporting & compliance
- SmartDetect for AML / transaction monitoring and fraud
Solutions for Healthcare / Lifesciences:
- SmartBill for billing analytics and reporting
SmartDetect for adverse event reporting to FDA
What inspired you to build the above product?
I have 20+ years of experience in data technologies and financial services focused on business transformation. Prior to HEXANIKA, I was a Senior Vice President at Citibank responsible for finance transformation strategy and change management. I also worked with Ernst & Young (EY) in New York in the Financial Services Strategy and Risk Advisory practices. It was during my experiences here that I understood how tough many institutions find the data management, reporting and analytics
processes. That’s when I reached out to my co-founder Mak, who has 25+ years of experience working in Microsoft on innovative technology. We started HEXANIKA with a focus on leveraging innovative technologies for business transformation to make processes effective and efficient.
Your products are mainly based on the big data framework so what are the possibilities in future for development in BigData? Do you see promising opportunities in the near future in Big data?
HEXANIKA leverages Big Data technology to enable institutions to manage ever growing data challenges. The challenge is not just large amounts of data but the fact that most of this data is unstructured and coming from multiple source systems, making it difficult to get actionable insights and analytics.
Big Data is just the starting point and the means of achieving the end vision of enabling institutions to ‘Succeed With Data’. Leveraging the power of Big Data, institutions can easily adopt innovative technology to fit into their existing architecture. HEXANIKA solutions enable institutions to streamline data from multiple sources and formats to be used for further calculations, analytics, and reporting. HEXANIKA uses not just Big Data but also AI based features that enable institutions to automate and streamline their processes, to be simple, smart and efficient.
How did you overcome initial mindset challenges of the regulators/supervisors? Also what are those common difficulties related to compliance faced by regulators around the world?
Banks globally are now spending in excess of $270 billion per year on compliance and regulatory obligations, having 10–15% of their staff dedicated to compliance on average. Despite this, financial institutions in the US alone have paid more than $160 billion in fines for non-compliance. This number is only growing as the dependency on legacy technology and multiple manual processes makes it difficult get end-to-end data lineage and transparency on reported data.
HEXANIKA’s innovative solution can address this market and enable 40% cost saving to the financial institutions by bringing down that time, resources and complexity required for regulatory compliance. Since regulatory challenges are mainly focused on how institutions manage their data, HEXANIKA’s end-to-end data management platform enables institutions to get 100% data lineage while adopting industry-specific solutions built on top of the platform for Regulatory Reporting, Anti Money Laundering, Analytics and more.
What was the most challenging/critical aspect of your journey as the CEO and Founder of HEXANIKA?
While there are many challenges when it comes to establishing a company like HEXANIKA, one of the most critical aspects of a company is finding the right people. In just 4 years, HEXANIKA has grown to be an enterprise of 30+ with a footprint in India and the US. I believe getting the right people to empower and share your vision is critical for building a successful product using an idea.
Where do you see yourself in next three years?
HEXANIKA is currently in the process of raising funds and building additional AI features to enhance product functionalities for its clients and partners. In the next 3 years, we plan to reach our goal of becoming the leader in providing data solutions to industries in select segments. In addition to US, HEXANIKA is targeting to expand to Europe, UK, APAC and other regions and has already started communications with potential opportunities in these geographies.
Which countries do you feel you can expand to with your offerings?
HEXANIKA is currently focused on the United States, North America and European market. However, after participation in accelerator programs and events in Japan, Singapore and India, we’ve realized that the APAC and Asian market too have a solid scope given the high adoption of technology and rising Fintech / Regtech startups that are coming up.
Since the overall product and concept is not specific to any geography, we at HEXANIKA feel we can make inroads in different geographies given the right opportunity. Through our partnership, we have opportunities with banking institutions in France, Germany and Poland in addition to our existing relationships in USA, Europe and APAC.
Have you built any consulting model for the consultants from different countries?
HEXANIKA currently leverages local and global consultancy firms in new geographies for purposes of Go-To-Market (GTM), implementation, language and other specific customizations as required. Our partnership model ensures that HEXANIKA’s primary focus is always on innovation and solution development as a product company.