Regtech startup IOL, Inc. aims to do for regulatory reporting what Canva did for graphic design—build a suite of streamlined tools accessible enough for anyone to create high-quality work, regardless of their background.
What began in 2020 as an education tech startup addressing the challenges of distance learning has evolved into a software-as-service venture, with their flagship product: the Advanced Robust Cooperative System, or ARCS.
ARCS provides organizations with the means to digitize their accounting processes. IOL’s initial market for this product is cooperatives, vital scaffolding in job creation and community building across the Philippines. Cooperatives generated roughly 365,000 jobs in 2020, according to a 2020 report from the Philippine Cooperative Development Authority. In the same report, the CDA found that there were a total of 10,900 reporting cooperatives, with over 11.5 million members across them.
Some key features of ARCS’ regulatory report offerings include a membership information system, a multi-user management system, dashboards, an accounting system, and embedded analytics.
“Ultimately, we want Filipino accountants to focus on providing more value-added services, like interpreting financial statements, and giving valuable insight to their company’s C-Suite,” said CEO Kevin Gayao. “When our market research revealed that most people believed the financial statements to be the most troublesome reports, we digitized the creation of this report in ARCS. We did this with cards to make entries rather than spreadsheets, so that even those without an accounting background can generate these reports when necessary. What used to take some people, accountants included, months can now be finished in minutes.”
So far, IOL, Inc. has onboarded 10 cooperatives onto their pilot for ARCS. These groups have been undergoing user training sessions, helping them transition from traditional regulatory processes towards ARCS’ digital workflows. Joining this pilot program are:
- Lawig Savings and Credit Cooperative,
- Woodsville Multipurpose Cooperative,
- Balansi Uddoc Credit Cooperative,
- Timber and Lime MPC,
- Dakaran Credit Cooperative,
- EXCITE Credit Cooperative,
- Online Community Credit Cooperative,
- Benguet Traders Multipurpose Cooperative,
- Abra Farmers and Provincial Employees Multipurpose Cooperative,
- and St. Thomas Credit Cooperative
IOL, Inc. was previously featured on CNN’s The Final Pitch, and backed by startup accelerator IdeaSpace. They were also selected among the first recipients of funding from the Department of Science and Technology, under the Innovative Startup Act. Most recently, they were inducted into the Arise Plus Ye! Boost Accelerator program, designed to build pathways for Filipino startups to the European market.
Gayao attributes much of the initial growth his startup is seeing to his “hungry” team. Gathered largely from the surf towns of La Union, this team shows “strong foundations, and a learning mindset,” Gayao said. “I am so grateful for my team who have essentially taught themselves how to code, moving from legacy tech to cutting edge in just two short years.”
“We did not use any whitelabels or partners, but rather we made a product based on our own experience with the systems that are still in place today,” he said. “Looking forward, as cooperative business models are not limited to the Philippines, countries that support this model would have a lot to gain from our product, as we can adjust the product as per those countries’ regulations.”