Steve Pomfret on Cygnetise’s growth journey in a feature for “Coffee with Innovate Finance Podcast”
In an era of rapid technological advancements and digital transformation, the financial services industry has been reshaped by innovations like blockchain and regtech. In a recent episode of the “Coffee with Innovate Finance Podcast”, our founder and CEO Steve Pomfret shared his incredible journey of building Cygnetise and how the company has been instrumental in redefining authorised signatory management globally.
From corporate career to entrepreneurial venture
Steve Pomfret’s career trajectory is nothing short of remarkable. With two decades of experience in operational change and digital transformation for major global banks, Steve has worked across New York, Florida, Switzerland, the Netherlands, and other financial hubs. His deep understanding of inefficiencies and risks within financial institutions laid the groundwork for his entrepreneurial journey.
After founding a consultancy focused on operational improvements, Steve became captivated by blockchain technology and its potential to address inefficiencies. This fascination led him to create Cygnetise, a platform that leverages blockchain to revolutionise how organisations manage authorised signatory information.
The problem Cygnetise solves
Authorised signatory management is a critical, yet often overlooked, aspect of financial and corporate governance. Every organisation needs a robust system to track employees' permissions to act on its behalf - whether it's approving payments, signing contracts, or authorising withdrawals. Historically, this has been managed through cumbersome processes involving Word or PDF documents, Excel spreadsheets, and manual forms.
Cygnetise steps in as a game-changer. By providing a secure, blockchain-powered platform, the company allows businesses to manage signatory authorities digitally, ensuring real-time updates and secure sharing of information with banks and other stakeholders. This innovation not only enhances operational efficiency but also strengthens compliance with regulatory standards.
Challenges and triumphs of building Cygnetise
Building a startup from scratch is no small feat, as Steve candidly shared during the podcast. He described the early days as a whirlwind of wearing multiple hats, from sales to marketing to operations. Despite these challenges, some key milestones have made the journey worthwhile.
One of the most gratifying moments for Steve was acquiring the first paying customer, a validation that the product resonated with real-world needs. Another pivotal achievement was securing institutional funding, signalling external confidence in the company's vision. The crowning moment, however, was successfully onboarding a regulated financial institution, a process that demanded rigorous due diligence and compliance with stringent standards.
Regtech trends shaping the future
Cygnetise operates at the intersection of regtech and blockchain, addressing the less glamorous but vitally important operational inefficiencies in financial institutions. Steve highlighted several emerging trends reshaping the regtech landscape:
Digital identity and e-signatures: As regulators push for digital processes, solutions that ensure secure digital identity verification and e-signatures are gaining prominence.
Governance frameworks: Tools like Cygnetise are essential for enhancing governance, ensuring the right individuals have the correct permissions within organisations.
Data security and transparency: Blockchain's tamper-proof nature ensures data integrity, providing organisations with robust audit trails and regulators with greater visibility.
Blockchain as a catalyst for change
While blockchain technology has been hyped as a revolutionary force, its adoption has been deliberate and focused. Steve noted that its real value lies in secure data sharing and creating immutable audit trails. For instance, in traditional systems, changes to financial authority records might overwrite previous data without any trace. Blockchain, however, ensures that every modification is time-stamped, recorded, and traceable, offering unparalleled transparency and accountability.
This capability is especially attractive to regulators, who prioritise data integrity and security. As Steve explained, "With blockchain, organisations can ensure that data is not only secure but also verifiable, providing peace of mind to all stakeholders."
Preparing for future challenges
As regulatory landscapes evolve, financial institutions must adapt promptly. Steve emphasised the importance of staying ahead of regulatory changes and fostering partnerships with organisations like Innovate Finance. He also noted a trend towards self-regulation, where companies adopt practices stricter than required to enhance governance and reduce risk.
The future of Cygnetise and regtech
Looking ahead, Cygnetise is well-positioned for rapid growth as demand for efficient, secure, and compliant solutions increases. Steve shared his excitement about how banks are now approaching Cygnetise, recognising the platform's value not only for their customers but also for their own operations.
The broader regtech space is also set to evolve, with key areas of focus including:
Validation of suthenticity: Ensuring data and identities are genuine and unaltered.
Enhanced governance: Strengthening internal controls to ensure only authorised personnel perform specific actions.
Tamper-proof data sharing: Facilitating secure digital exchanges of critical information.
Closing thoughts
Steve Pomfret's journey with Cygnetise underscores the transformative power of innovative technology in addressing longstanding challenges. As financial institutions strive for greater efficiency and compliance, solutions like Cygnetise are paving the way for a more secure and transparent future.
Listen to Steve’s full interview below:
About Cygnetise:
Cygnetise uses the latest blockchain technology to help organisations reduce the risk of fraud, facilitate business continuity and contribute to ESG by digitising the process of authorised signatory management and bank mandates. Our application enables users to update their signer data in real time and has a variety of sharing mechanisms so that all relevant counterparts can have constant access to the most up-to-date information without you having to recompile and redistribute.
To learn more about Cygnetise and request a free demo, click here or email our team at info@cygnetise.com