Munich Startup: What does your startup do? What problem do you solve?
Camillo Werdich, Sinpex: Around 100 billion euros are laundered annually in Germany. To prevent this, the German Money Laundering Act (GWG) describes processes that oblige banks and companies to verify the legitimacy of new business customers. In this so-called "Know Your Customer" (KYC) process, the identity of customers is established and their legal capacity is checked. For example, individuals on sanctions lists, such as the EU's against Russia, are not permitted to do so. And this is just one of many points that must be checked in the KYC process. This process is currently extremely time-consuming. For most companies, verifying new business partners often takes a few days or even several weeks. And that's where we come in with Sinpex.
This is where Sinpex comes in: 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 a long time!
Camillo Werdich: To date, no one has succeeded in automating the KYC process in the B2B sector to this extent. Our software's end-to-end approach reduces manual effort by up to 80 percent, significantly lowering costs. Furthermore, thanks to artificial intelligence and natural language processing, our technology also increases the accuracy of verifying business relationships, eliminating human error.
Companies such as Noventi, PWC or Deloitte use our software
Munich Startup: What is your founding story?
Camillo Werdich: Before founding Sinpex, I worked as a project manager at an auditing firm in the field of digitalization and compliance and was responsible for manually reviewing thousands of customer records for a major bank – a seemingly endless process. After a few weeks, it became clear to me: There had to be an easier way. So I wrote my first algorithm that reduced the data reconciliation process from weeks to just a few hours. From this, I developed my own business idea and collaborated with researchers from all over the world to further develop the algorithm.
In 2019, I founded our startup Sinpex in Munich together with our current CTO, Jannik Metzner. After we won the HSG Entrepreneurial Champion Award with Sinpex, I participated in the Swissnex program in San Francisco and was able to attract the first investor for my business idea within my 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 their anti-money laundering requirements.
Munich Startup: What have been your biggest challenges so far?
Camillo Werdich: It may sound like a luxury, but our current growth is a challenge. We receive many requests to automate the KYC process. Reasons for this include the current Russian sanctions, but also the new Supply Chain Due Diligence Act, which requires companies to assess, mitigate, and monitor human rights and environmental risks in their supply chains. I am proud of our team's performance! However, I also recognize our team's need to grow organically as a company and at the right pace.
Sinpex serves “a niche that is more relevant than ever”
Munich Startup: Where would you like to be in one year, where in five years?
Camillo Werdich: We're currently focusing on the DACH region and aim to become the leading one-stop-shop provider for the Know Your Customer process within a year. Our technology is already deployable worldwide—so we naturally plan to grow internationally as well.
Munich Startup: How have you experienced Munich as a startup location so far?
Camillo Werdich: For us, Munich is a top location to found a startup. Firstly, the networking opportunities are excellent and there is a good ecosystem with the universities. Especially for our technology-driven business model, the proximity to Munich's innovation and startup centers is Technical University a clear advantage over other cities like Berlin or Frankfurt. On the other hand, there is also an infrastructure with sufficient venture capital available locally, as a recent study by the auditing firm EY confirms.
Munich Startup: Hidden champion or shooting star?
Camillo Werdich: I'd rather describe us as a hidden champion. The problem we solve with Sinpex is socially relevant and highly topical. Due to these developments, many companies are having to reevaluate whether they can even continue doing business with their existing customers. At the same time, our product isn't intended for the masses, but rather for the B2B sector – we serve a niche that's more relevant than ever.
