Munich Startup: What does your startup do? What problem are you solving?
Camillo Werdich, Sinpex: In Germany, around 100 billion euros are laundered annually. To prevent this, the German Money Laundering Act (GWG) describes processes that require banks and companies to legitimize new business customers. In this so-called “Know-Your-Customer” process (KYC process), the identity of customers is established and their authorization for business capacity is verified. For example, people on sanctions lists, such as those imposed by the EU against Russia, are not allowed to do this. And that’s just one of many points that must be checked in the KYC process. This process is currently extremely time-consuming. At most companies, checking new business partners often takes a few days or even several weeks. That’s where we come in with Sinpex.
Sinpex tackles this: our cloud-based software accelerates this process many times over – what used to take days now takes minutes with Sinpex.
Munich Startup: But that’s been around for ages!
Camillo Werdich: So far, no one has succeeded in automating the KYC process in the B2B area to this extent. Through our end-to-end software approach, we reduce manual effort by up to 80 percent and thereby significantly lower costs. Furthermore, thanks to artificial intelligence and natural language processing, our technology also increases accuracy in the verification of business relationships, eliminating human error.
Companies like Noventi, PWC, and Deloitte use our software
Munich Startup: What’s your founding story?
Camillo Werdich: Before founding Sinpex, I worked as a project manager at an audit firm in the digitalization and compliance department and was responsible for manually reviewing thousands of customer records for a major bank – a seemingly endless process. After a few weeks, it was clear to me: there must be an easier way. So I wrote a first algorithm that shortened the data reconciliation from weeks to just a few hours. From this, I developed my own business idea and collaborated with researchers from around the world to further develop the algorithm.
In 2019, I founded Sinpex in Munich together with our current CTO Jannik Metzner. After winning the HSG Entrepreneurial Champion Award with Sinpex, I participated in the Swissnex program in San Francisco and was able to secure our first investor in the first two weeks in Silicon Valley. Since then, we’ve grown significantly, and companies like Noventi, PWC, and Deloitte are already using our software to meet money laundering prevention requirements.
Munich Startup: What have been your biggest challenges so far?
Camillo Werdich: It may sound like a luxury problem, but our growth is currently challenging. We receive many inquiries about automating the KYC process. Reasons for this include the current Russia sanctions, but also the new Supply Chain Due Diligence Act, which requires companies to assess, reduce, and monitor human rights and environmental risks in their supply chains. I’m proud of our team’s performance! However, I also see our team’s need for the company to grow organically and at the right pace.
Sinpex serves “a niche that is more relevant than ever”
Munich Startup: Where do you want to stand in one year, where in five years?
Camillo Werdich: Right now we’re focusing on the DACH region and want to become the leading one-stop-shop provider for the Know-Your-Customer process within a year. Our technology is already usable worldwide – so of course we’re also planning to expand internationally.
Munich Startup: How have you experienced the startup location of Munich so far?
Camillo Werdich: Munich is a top location for us to start a startup. On the one hand, networking opportunities are excellent and there’s a good ecosystem with the universities. Especially for our technology-driven business model, the proximity to Munich’s innovation and founder centers of the Technical University is a clear advantage compared to other cities like Berlin or Frankfurt. On the other hand, there’s also local infrastructure with sufficient venture capital, as evidenced by a current study by the audit firm EY.
Munich Startup: Hidden champion or shooting star?
Camillo Werdich: I would describe us more as a hidden champion. The problem we solve with Sinpex is socially relevant and highly topical. Due to recent developments, many companies must reassess whether they can still do business with their existing customers at all. At the same time, however, our product is not intended for the mass market, but is in the B2B sector – we serve a niche that is more relevant than ever.
