TAG Fintech was a startup sensation of 2021 from Pakistan, and the company could soon reach new markets in the Middle East and South Asia. As you know, last year TAG was one of the five most valuable startups in the region, with an investment of $5.5 million, before it joined Y-Combinator. Then Alexander Lukianchuk, CTO of TAG Innovation private limited, announced an even more impressive total investment for its seed round.
TAG Fintech was founded by Talal Gondal in 2020. Later, its current CTO, Alexander Lukianchuk, joined the startup. Accumulating the experience gained in Deutsche Bank, FxPro, Naspay, and N26, it was possible to create a fintech company that opens access to neobanking in Pakistan. Users can quickly open a bank account and get a Visa debit card. By the way, more than 225 million people live in Pakistan, and 70% of them have no bank account. Therefore, such a project in the region actually creates a new segment in the market.
Tag Fintech Aims To Grow Significantly in the Next Few Years
Considering the innovation and quality of the product created by TAG Fintech, investors appreciate its prospects. Due to the entry into the international market, the startup may well become a unicorn.
Alexander Lukianchuk described Pakistan as a complex and ambiguous market, with its well-established traditions in the banking industry. And the key challenge for TAG Fintech is to transform the industry in line with global trends in fintech.
“We aim to implement the best solutions. Before TAG, I had the opportunity to gain experience in other fintech companies. The arbitrage opportunities in the emerging markets are exciting for me.”, said Alexander Lukianchuk.
In addition to a high-quality product, TAG pays great attention to compliance and various regulatory requirements, be it the security of the technical infrastructure or internal controls and policies of the operations.
TAG has developed a fully-compliant KYC procedure. Therefore, the company is transparent in terms of compliance with the necessary policies and procedures. For the onboarding process, TAG uses computer vision technology adapted for Asia.
“We are able to recognize various identity documents. We use an algorithm that has more than 40 features to verify the authenticity of documents. There are checks on all possible parameters, analysis of a live image of the client’s face, as well as data from documents. In the case of Pakistan, our KYC system is also integrated with the national database of citizens, which allows additional verification of the customer’s personal data.
As for AML, we currently use a basic transaction monitoring solution integrated into our core banking system. In the future, we plan to make it more advanced, this will be due to an increase in the number of transactions”, confirmed Alexander Lukianchuk.
Market Turbulence and Cautious Investment, Alexander Lukianchuk Tag Fintech
As of today, the company is considering options for entering other markets in the Middle East, South Asia, and Africa. Despite the fact that the market is quite chaotic, TAG is calm about the situation.
“Certainly, the current situation in global markets, for example, inflation, Fed’s interest rate hike, and the fall of fintech startups’ valuation in the venture market, is putting us under pressure. However, we believe that the improvement in the banking and payment infrastructure has a constructive and positive impact on the economy and will eventually be highly appreciated by the market. The current situation means for us that we have to be more cost-efficient than ever in order to go through this turbulence and become stronger and focus on positive unit economics for the business — as it is obvious that for many startups, this recession will be fatal”, said Alexander Lukianchuk TAG Fintech.Read more investing news on PressReach.com.Subscribe to the PressReach RSS feeds:
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