Fintech startup Neocova officially launched on October 22nd of this year. The new banking solution is based out of the Midwest in St. Louis, MO and is targeted toward community banks.
Neocova sets itself apart from other banking platforms of the same type by providing one-year, ten-page long contracts without termination fees. Competitors typically have five to seven-year, 150-page long contracts.
“I don’t want to lock someone in for five years if they are unhappy working with us like our competitors do,” said Sultan Meghji, Co-Founder and CEO of Neocova. “I want them to be very positive and excited about working with us.”
Neocova’s Product List
Neocova created a cloud-based core platform which ensures efficiency and an organization method that isn’t outdated. The company offers a new and innovative technology for client management and banking product management that community financial institutions can benefit from.
They also provide artificial intelligence tech such as anti-money laundering checks and Bank Secrecy Act checks. With Neocova’s unique technology, these will basically be automatic and immediate security measures taken against the transactions going in and out of any given banking system. Community banks that are specifically looking to solve these security issues have the option to purchase this AI product separately.
Neocova also sells the platform that they used to build these bank management and AI tech products with. The platform is targeted toward fintech startups and banks who are looking to build and develop their own product and services to bring into the industry.
The original plan was that the fintech startup Neocova would not publicly launch until next year. Because they’ve already exceeded in reaching some of their client business goals, they decided to publicly introduce their platform sooner rather than later.
“We’ve been incubating this company very quietly in sales for quite a while now, for officially four years,” Meghji said. “We had planned on just a very small number of clients in 2020 and we are way ahead of that.”
The Importance Of New Technology Platforms
Meghji developed the idea of this fintech solution after traveling to Africa about six years ago to help implement the idea of digital banking in Kenya and Uganda. After learning about banking systems around the world, he wanted to find out more about the U.S. market.
He decided to delve into more research when he came back to the U.S. In order to find out more about the U.S. banking market, he spoke to banks, tech companies, federal and state level regulators and bank investors.
Throughout these conversations, Meghji said that he noticed three consistent problems with the banking atmosphere today. The first is the technology these community banks are using dates back to the 1990’s.
“If you go to your average community bank, you’ll see green text on black tube TV screens,” Meghji said.
The second problem Meghji mentioned is that there are currently three main companies that offer technology for community banks. These companies only offer five-year or longer contracts for their clients to use their technology that has been out of date for decades.
The third problem Meghji brought up is that the products these banks offer use such old technology that they don’t necessarily add value to their clients’ communities. Meghji said that Neocova is the solution he came up with to solve these problems.
What Does Neocova Mean?
Neocova is the combination of the prefix “neo” with “covalent bond.”
“If you remember your high school chemistry, a covalent bond is when an electron is shared by two atoms,” Meghji said.
The idea is to take something that is already existent and combine it with new innovations in order to bring something new to the table.
Neocova currently has several open positions available including banking and tech roles. Although they are headquartered in St. Louis, MO, they also have offices in California and New York.