Revolutionizing the way banks model and test their core software systems
Moneta Capital announced today the closing of its investment in Otoma, a Fintech company that has developed an automated suite of modeling and testing solutions for financial software. Otoma helps financial institutions to respond to the fast and more frequent changes of their IT versions and features. Its solutions use artificial intelligence to reduce both the cost and the risks associated with the implementation of financial systems.
Otoma was established in August 2016 by Reuven Ben Menachem and Zack Yaniv, who have worked together for over 20 years and who built Fundtech (NASDAQ: FNDT) up from a start-up to the global leader in transaction banking and payment systems, valued at billions of $US, and considered to be Israel’s most successful fintech unicorn. Fundtech, which sold its products to over 100 of the world’s leading banks, was listed on NASDAQ and was subsequently acquired by Finastra.
The $8 Million round led by Moneta will be used by Otoma to expand its R&D activity and to hire marketing and sales staff in the US and in Europe. Adoram Gaash, founding partner at Moneta, said: “As a fund specializing in fintech investments, Moneta is proud to lead this investment round at OTOMA. The founders have identified a substantial challenge in the global banking market and have developed a complex technological solution to address this. The era of digital banking requires financial institutions worldwide to implement new technologies and versions at a much higher pace than was required before, and this is exactly what OTOMA’s technology allows them to do.”
About the Market: Even though automation of QA and test activities has been around for more than 20 years, software testing is still a time-consuming and error-prone task. The lack of skilled testers, the difficulty in understanding system models due to their complex nature and the increasing number of new releases for each system have led to a rise in the importance of testing automation and, in particular, to the rise of model-based testing. The automation testing market size is expected to grow from USD 7.55 billion in 2017 to USD 19.27 billion by 2023, at a CAGR of 17.7% during the forecast period (Markets and Markets). To build a model for complex systems such as financial systems (payments, core banking systems, etc.), extensive domain knowledge is required. These processes are long, expensive and labor-intensive. Otoma solve this pain using an extensive knowledge-base on financial systems and a process-mining algorithm to automatically discover the components and flows of a banking system under test, generates test scripts and test data, runs the tests and analyzes the results.
As part of the investment, Adoram Gaash from Moneta was nominated a member of the Board of Directors.
About Moneta VC
Moneta Venture Capital is managing 2 parallel funds: an early stage fund – Moneta Seeds, and a revenue stage fund – Moneta Capital. Moneta focuses on AI, Fintech and Insuretech and its portfolio companies are integrated in the world’s largest Banks, Financial institutions and Insurance firms. Moneta’s main added value consists of its Strategic Partnerships with world leading Banks and Insurance firms who are co-investing with Moneta and support its portfolio as design partners and clients.