FamPay scales its Finance Operations seamlessly with Recko

About FamPay

FamPay is India’s first neobank for teenagers and their families with an aim to provide them with convenience. With FamPay, teens can pay through UPI, P2P, and cards without having a bank account. Parents can send teenagers money securely anytime and anywhere making payments fun and smooth for the GenZ.

The Problem

Before Recko, there was no automated process to perform reconciliation at FamPay. So when it came to reconciling transactions, the team would analyze reports at a gross level. In addition, as an early stage startup, they had to concentrate on multiple other tasks. Manual reconciliation was resource-intensive; The finance team would need to hire more people as data volumes kept increasing and 3-4 hours a day was spent on reconciliation. In addition, Excel wasn’t very responsive to large volumes of data and would crash or become slow. This led the team at FamPay to decide that the reconciliation process should be automated at an early stage instead of investing in a solution later.

Recko is in the initial phase of setting up a financial process with integrity. We believe that if this is done, everything else will be sorted pretty much on its own.

With Recko, FamPay was able to bring agility and speed into its Finance Operations. In Tiara’s words,

Recko saves upto 60-70 minutes of my time. Otherwise, I might have to sit and do everything manually. Which I think would drive any FinOps function crazy. As a person with 2.5 years of experience analyzing foreign refunds or aging would have been tedious if done manually and I would have only checked for funds received, I wouldn’t have gone deeper into volumes of data to analyse them further with limited availability of time.

With Recko, I now have visibility into transactions that have not been settled on time and why they were delayed. This has saved me significant time and I also get the aging report, foreign refunds, and commercials. In addition, Recko is so accurate that it picks up the tiniest penny difference in the transactions. All the detailed analysis that FinOps Analyst would want is available on the platform - at the press of a button”

FamPay uses Recko to solve three major challenges. First, since FamPay follows a T+2 day settlement cycle, it's important to know if there is a delay in settlements made by their PG partner. If there is a delay in the settlement, they will follow up with the payment partner to understand the reason. Second, in analyzing FamPay’s charges. This is important as they need to learn how much they’ve been charged based on their agreement. Third, would be volume. This is to learn how good they’re in terms of wallet loads. For instance, if any amount gets settled in their wallet, it needs to be settled to FamPay. The additional aspect is to determine the volume of transactions that’s been carried out by FamPay on a daily basis. To understand if their volumes have increased or decreased.

With Recko, FamPay has a comprehensive visibility into the entire day’s reconciliation. When compared to the previous process, their operational efficiency has increased by 80%-85%. In addition FamPay also identifies delays or discrepancies with their PG if settlements have not been made or if they’re overcharged. This would have been quite challenging to identify previously as performing reconciliation would have consumed more time leaving them with very less time to analyse any other gaps.

The platform was able to scale with our growing transactional volumes. Not just that, in terms of accuracy, Recko is 98% accurate for detecting ambiguities

The Solution

In terms of scalability, Recko has been great. When FamPay’s transactional load increased by 25-30% after their annual flagship event, FamJam, Recko was able to seamlessly reconcile the transactions with the growing transactional demand.

I think Recko is great and helps anyone in the Finance and Operations domain. I’ve done manual recon for 2.5 years now and I’m aware of how big of a task it is. Recko is really quick and saves time for someone like me in finance operations. I just have to upload files and the output is ready.

95% of the time there are no issues and I focus on other important things at hand. In addition, if there are errors I can now download the reports. Overall the Recko platform helps me save significant time, if done manually, the process would take upto 8 hours daily