Embracing Data-Driven, Automated KYB.
Enhance Compliance, Trust and Efficiency with KYB Technology.
As digital commerce evolves and online marketplaces rise, the separation between KYC and KYB blurs. The digital age has transformed how transactions occur, with consumers navigating vast marketplaces and online payment service provider B2B relationships rapidly growing. The global E-KYB market size was valued at USD 157.4 million in 2021 and is expected to grow at CAGR of 12.09%, reaching USD 312.1 million by 2027. This shift necessitates more accurate and comprehensive KYB procedures for mitigating risks, ensuring compliance, and maintaining a trustworthy portfolio. Traditional manual KYB methods are no longer sufficient in this dynamic landscape, prompting a move toward data-driven and automated solutions.
Streamlining Compliance with Automated KYB
1. Speed and Efficiency
Manual Challenge: Manually gathering and verifying business information is labor-intensive and time-consuming, leading to delays in onboarding, transaction approvals, and overall B2B revenue.
Automated Solution: Automated KYB processes drastically reduce the time required to collect, verify, and analyze business information, enabling faster decision-making and onboarding. This acceleration helps businesses establish new B2B relationships quickly and enhance their revenue streams. By streamlining the entire process, automated KYB systems allow companies to process hundreds or even thousands of verifications simultaneously. This speed is crucial in the competitive digital marketplace, where swift onboarding can make the difference between securing a new client and losing them to a faster competitor. Moreover, the efficiency gained through automation frees up valuable resources, allowing compliance teams to focus on more strategic tasks rather than getting bogged down in manual verification processes.
2. Enhanced Accuracy
Manual Challenge: Human error is a significant risk in manual KYB processes, where manual entry and verification can lead to mistakes, resulting in compliance issues and risk exposure.
Automated Solution: Automated KYB systems minimize human intervention, significantly reducing the risk of errors and ensuring that the data collected is accurate and reliable, which is critical for maintaining compliance and minimizing risk. The precision of these systems is driven by sophisticated algorithms and machine learning technologies that cross-check information against multiple data sources in real time. This multi-layered verification approach ensures higher accuracy and detects discrepancies and potential fraud more effectively than manual processes. By leveraging these technologies, businesses can significantly reduce false positives and negatives, leading to more reliable outcomes and fewer compliance breaches.
3. Scalability
Manual Challenge: As businesses grow, scaling manual KYB processes becomes increasingly complex, leading to bottlenecks and inefficiencies.
Automated Solution: Automated KYB platforms can adjust to varying volumes of verifications, making them ideal for businesses experiencing rapid growth or seasonal fluctuations in demand all without compromising efficiency. Whether a company needs to verify a handful of new clients or thousands, the automated system can manage the workload without additional staffing or resources. This flexibility supports growth and ensures compliance standards are consistently met. Some platforms, like AcuityTec, allow for the creation of custom KYB workflows that can dynamically trigger enhanced KYC on identified UBOs, officers, and directors without additional manual intervention, establishing a seamless KYB process for agility. Furthermore, providers like AcuityTec are constantly updating their data hub with the latest data services to support online B2B underwriting demands and maintain agility against regulatory obligations.
4. Consistent Compliance
Manual Challenge: Maintaining compliance with varying regulatory requirements across different jurisdictions is challenging with manual processes.
Automated Solution: Automated KYB systems consistently adhere to regulatory requirements and standardized procedures, enabling streamlined compliance management across all jurisdictions and reducing the risk of penalties associated with non-compliance. These solutions are designed to stay up-to-date with the latest regulatory changes, allowing businesses to adapt their processes to meet new requirements quickly. Additionally, platforms like AcuityTec enable prompt automated rechecks, comprehensive audit trails, and documentation, simplifying the process of regulatory reporting and ensuring an ongoing compliant B2B portfolio.
Enhancing Trust and Efficiency with Automated KYB Technology
AcuityTec has been a leader in KYC, compliance, and fraud prevention since 2011 and has recently expanded its expertise to meet the growing demands of the KYB verification market. Their mission is to enhance the online ecosystem's security and integrity not just at the business-to-customer level but also at the foundation of business-to-business relationships.
"With the growing complexity of online business transactions, automated KYB solutions are essential for ensuring accurate and efficient compliance. At AcuityTec, we are committed to providing innovative technology that streamlines these processes, enhances trust, and brings unparalleled accuracy and reliability to our clients," says Alfredo Solis, managing director of AcuityTec.
To address the challenges of manual underwriting, AcuityTec offers state-of-the-art KYB verification solutions that provide a comprehensive and automated alternative and includes:
1. Business Identity: Automated KYB data sources instantly verify critical business details such as business name, address, contact information, business type, industry code and descriptor, active status, incorporation date, and, for US businesses, the IRS descriptor. Additionally, verify the names, positions, statuses, and start/end dates of UBOs, directors, and officers.
2. Enhanced Due Diligence: Expand due diligence further with the ability to perform eKYC database identity verification or document ID checks automatically as part of any KYB workflow to verify identified UBOs and directors/officers, ensuring thorough verification.
3. Fraud Screening and Risk Analysis: AcuityTec's KYB solution is not limited to data collection. Their proprietary risk analysis technology enriches the data obtained, applying configurable rule logic to validate risk further and generate an overarching risk score with custom risk thresholds based on specific evaluation needs.
In the next part of our series, we will delve deeper into the capabilities and benefits of AcuityTec's KYB solution, exploring how it supports business KPIs, compliance reporting, and more.
Learn more about AcuityTec's KYB or contact an account representative to book a customized demo.