Compliance SaaS · Fintech
Neocova Transaction Monitoring
2
Banks passed state reviews
IP
Acquired by Sunwest Bank
ML
Hybrid monitoring model
100%
Regulatory approval rate
Problem Definition
Rules-based monitoring wasn't cutting it
Commercial banking compliance software relies on rules-based transaction monitoring that doesn't impress state and federal regulators. Banks needed a more sophisticated approach that could demonstrate genuine risk detection capability, not just checkbox compliance. The existing tools created excessive false positives while missing actual suspicious patterns, creating cognitive overload for compliance officers and regulatory risk for institutions.
Research & Discovery
Mapping the compliance officer's decision journey
Using a customer and user journey mapping exercise with an investor bank's compliance team, I mapped the decision points and data required with a view to reducing cognitive load on compliance officers and scaling transaction monitoring. This deep-dive revealed that officers were toggling between 4-6 screens to assemble the context needed for a single transaction decision — a workflow that was not only slow but error-prone under regulatory scrutiny.
Strategic Solution
Hybrid ML + rules-based architecture
Machine Learning-based transaction monitoring models in a hybrid design with a rules-based backup and a scoring rubric. Standardized forms with core banking integrations for account information and mapping. The hybrid approach gave regulators the explainability they required (rules-based scoring) while delivering the pattern detection (ML models) that genuinely reduced risk. Core banking integrations eliminated manual data entry and ensured compliance officers could focus on decision-making rather than data assembly.
Execution & Prioritization
Ship what regulators will approve first
Prioritization was driven by what we could deploy usefully for early adopter feedback first, and what bank regulators would let our clients deploy to production. This meant transaction monitoring feeding an off-the-shelf BI tool first, over time a more fully featured interface and federal report filing integration. Each release was sequenced to build regulatory confidence progressively — demonstrating value at each stage while earning the trust needed for deeper integration.
Impact & Metrics
State reviews passed, online lending unlocked
Two early adopter banks passed their state reviews the year they adopted Revio Banking Compliance. This allowed them to expand into online loans — a revenue line that was previously blocked by compliance gaps. The Compliance SaaS was a core part of the IP acquired by Sunwest Bank, validating the product-market fit and technical approach as acquisition-worthy intellectual property.