Category: KYC & KYB

Welcome to our meticulously curated KYC/KYB category, a comprehensive repository dedicated entirely to the multifaceted dimensions of Know Your Customer (KYC) and Know Your Business (KYB). As we stride deeper into the digital era, the procedures around KYC/KYB have emerged as a fundamental pillar, ensuring secure and compliant operations within the financial landscape.

The articles housed in this category plunge into the complexities of KYC/KYB, discussing its inherent challenges, potential solutions, and its indispensable role in the realm of identity verification. Our articles traverse a wide array of topics, ranging from the application of artificial intelligence in customer due diligence processes to the impact of regulatory shifts on KYC methodologies. These writings cover a broad spectrum of subjects, offering relevance to businesses and professionals operating within the financial industry.

As a leading industry player in the domain of digital identity verification, Signzy stands at the helm of innovation in KYC/KYB. Our cutting-edge solutions are engineered to simplify KYC, making these procedures faster, more efficient, and notably secure.

Regardless of whether you’re a compliance officer diligently maintaining regulatory standards, a fintech entrepreneur navigating the challenging waters of the financial industry, or simply an individual interested in gaining a deeper understanding of the evolving world of KYC/KYB, our category offers a treasure trove of information and insights.

We invite you to join us on this journey of exploration as we dive into the future of KYC in the rapidly evolving digital age. Our articles aim to enlighten, inform, and provide a well-rounded perspective on the significant role that KYC processes play in today’s digital financial landscape. Welcome to a world where knowledge becomes power, and compliance becomes simplified.

Harnessing Hospitality With KYC- How Signzy Can Help The Hospitality Industry Be Safe

Posted on | by Signzian

Did you know that for the hospitality industry, statistics indicate that organizations lose upto 6% of annual revenue from fraudulent activities perpetrated by guests and employees? For example, a hotel operator earning approximately $10 million in annual room revenue may experience losses between $500,000 and $600,000.

Preventing this while moving forward in the industry is a parlous task. One of the effective ways of this is to conduct KYC-‘Know Your customer’ for all the customers. KYC is the process of verifying the user’s identity and is typically done by several methods such as ID paper upload, face recognition, electronic ID verification, etc.

Digital KYC is rendering to be a mandatory process in the hospitality industry. Let’s examine how this is blooming and why fintech companies will help enhance this growth.

Relevance Of Digital KYC Processes

Digital KYC is as essential as ever in the financial technology sector to prevent financial fraud, identity theft, money laundering, and terrorist financing. As a result, it is widely used in the banking and fintech industries. But this begs the question of how KYC helps the hospitality industry? First, more and more states demand that the hotel has a copy of the guest’s passport or ID. But the issue with this solution is a lower Revenue Per Available Room (RevPAR) and increased time per check-in.

As Hotels lean towards online and kiosk check-ins, this process becomes more difficult. It would be great for customers to offer their passport or ID information ahead of time, which includes a scan of the passport and a picture of the guest. If this information could be stored in the hotel’s Property Management Software before the arrival of guests, it would be far more convenient.

Digital KYC in International Hospitality

Financial institutions in Scandinavia, Central, and Western Europe reported considerable savings and improved affinity for their services after implementing an effective Electronic ID (eID)-based KYC process a few years ago. But when you implement such methods, ensure that you avail the assistance of an established fintech resource provider. Else, the road might turn out to be quite bumpy.

Availing Fintech Industry Service Providers

A good service provider might seem complicated to find at first, but if you know where to look, you can get the best. They will ensure that the proposed solutions are specifically designed for your needs rather than a conglomeration for general clients. It will also be maximized in digitization. But, most importantly, it should comply with regulatory guidelines without compromising comfort or security.

At Signzy, we provide the most secure customer onboarding, e-signing, and authentication services. We ensure that all our clients, especially from the hospitality industry, encourage using electronic IDs, passports, and ID cards as verification documents and utilize digitized KYC methods. We can provide you with state-of-the-art customizable AI-driven resources for this. In addition, we can help you obtain required information from OVD(officially Verified Documents), retrieve the data, and store documents and signed agreements in archives.

Electronic IDs

It is essential to understand what an electronic ID is? Electronic identification is an electronic system for legitimizing users on the Internet or other computer systems. For example, using an electronic identity, users can identify, sign contracts, and approve transactions on websites such as banks and public portals.

Once onboard, guests can quickly access their loyalty program information. In addition, if they use an eID, there is no need to worry about remembering a username and login, as the eID provides authentication.

Signzy’s Impact In The Hospitality Industry

Signzy’s contributions in the industry are not unprecedented or novel, as we have always emphasized upgrading the onboarding and KYC processes in financial technology for nearly a decade. The hospitality industry, too, has seen its fair share of this.  

Recently the regulations are becoming more stringent as fraudsters are finding advanced ways to trick hotels. As the behemoths in the hospitality industry acknowledge and adopt KYC and identification processes as mandatory, it is only sensible for the mid-level players to do the same. The era of digitization is here, and it is now.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

KYC And Cybersecurity: Protecting Data From Cyber Fraud

Posted on | by Signzian

Traditionally, cyberthreats have been largely isolated to attacks on computer systems and networks. However, with the advent of digital transformation, cyberattacks are now targeting people and businesses at an unprecedented rate.

According to a report from Accenture’s State of Cybersecurity Resilience 2021, cyber threats have increased by over 30% from 2020 to 2021. Cyber fraud is fast becoming one of the biggest threats to today’s businesses, with the cost of cybercrime predicted to hit $10.5 trillion by 2025.

KYC And Cyber Fraud

KYC fraud occurs when a cybercriminal uses stolen or fake identity documents to open an account or obtain credit in someone else’s name. This type of fraud can have devastating consequences for both the individual and the business involved.

Fraudsters can trap customers easily by offering services that are too good to be true or by using phishing techniques to obtain sensitive information such as login credentials or financial data. Once they have this information, they can use it to commit identity theft, take out loans in the victim’s name, or make unauthorized purchases.

Types Of KYC Frauds

  • Phishing: Phishing is one of the most common types of cyberattacks. It involves fraudsters masquerading as legitimate entities in order to trick victims into divulging sensitive information.
  • Identity Theft: Identity theft occurs when a criminal obtains and uses someone else’s personal information, including their name and address, to take out loans, make purchases, or apply for credit.
  • Smishing: Smishing is a type of social engineering fraud that involves sending phishing text messages to unsuspecting recipients. This technique can be used to trick people into revealing their login credentials, banking details, or other sensitive information.
  • Fake Re-KYC: Fake re-KYC scams are becoming increasingly common as businesses are required to update their customer records on a regular basis. In this type of fraud, fraudsters pose as representatives from a legitimate organization and request that customers provide updated KYC information, such as their passport or driver’s licence details.

KYC Data Breach

Despite the importance of KYC in cybersecurity, data breaches are still a very real threat. Recent instances of KYC data breaches include the CDSL’s KYC arm which reportedly exposed the personal and financial data of more than 40 million investors twice within just 10 days.

Additionally, the Upstox data breach exposed the personal data of about 2.5 million customers, leading to a probe by the RBI’s cybersecurity team. To protect the data from cyber fraud and cyberattacks, it is important to implement robust KYC procedures and invest in state-of-the-art cybersecurity tools and systems.

Following the incident, Ravi Kumar – the co-founder and CEO of Upstox (India’s largest brokerage firm), stated on the company’s website: “We would like to assure you that your funds and securities are protected and remain safe. Funds can only be moved to your linked bank accounts and your securities are held with the relevant depositories. As a matter of abundant caution, we have also initiated a secure password reset via OTP.” 

KYC And Cybersecurity

Know Your Customer (KYC) has become a vital part of any business’ cybersecurity strategy, as it helps to weed out potential cyber fraudsters and protect customer data. Consumers are vital stakeholders in any cybersecurity strategy, and businesses must take steps to help them protect their personal information online.

There are many KYC best practices that businesses can implement to help protect themselves from cyberattacks, including:

  • Implementing multi-factor authentication (MFA)
  • Conducting regular background checks on employees
  • Keeping up-to-date with the latest security threats
  • Educating employees on cybersecurity risks
  • Implementing strong password policies
  • Monitoring employee activity for suspicious behavior
  • Restricting access to sensitive data
  • Encrypting customer data
  • Backing up

Gaining Trust Of All Stakeholders

According to research, 88% of the customers say that their trust in any business is based on how they handle their data and offer security.

Anil Advani, from Pure VPN, believes that cybersecurity is the means to gain the trust of customers and stakeholders alike. By implementing strong KYC policies and best practices, businesses can help protect their customers from the growing threat of cyber fraud and data breaches.

He quotes, “Due diligence is a routine part of any acquisition. Identity verification is very important these days due to an increase in cybercrime. Customers, partners, shareholders, and prospective employees want evidence that the organization can protect its sensitive data. Without a cybersecurity policy, an organization may not be able to provide such evidence.”

Pairing Cybersecurity With Regulatory Requirements

Dan Blum, Principal Consultant at Security Architects Partner, believes that businesses must pair their cybersecurity efforts with regulatory requirements to be fully compliant.

“Service providers must protect the value of customer’s information systems or data, as well as customer privacy rights using sound, risk-based cybersecurity practices as a matter of due diligence. KYC requirements must be aligned and balanced with a good understanding of the laws and business requirements,” he stated.

He believes that organizations should also consider conducting independent security audits regularly to identify potential vulnerabilities. These audits can help organizations understand where they need to improve their cybersecurity posture and make the necessary changes to mitigate risk.

The Bottomline

In conclusion, as data breaches continue to plague businesses of all sizes, it is more important than ever for organizations to implement robust KYC procedures and invest in state-of-the-art cybersecurity tools and systems. By following the best practices outlined above, businesses can help protect their customers’ personal information online and gain the trust of all stakeholders.

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

The No-code Approach: Onboarding made Easy!

Posted on | by Signzian

The financial industry is witnessing a paradigm shift with an uptick in the emphasis on digital client onboarding. As a top-level CTO of a banking enterprise or a neo-banking venture, you are always looking for technology that eliminates the deadwood involved in manual paperwork in onboarding new clientele. Finally, you can now heave a sigh of relief as we present the perfect fintech companion for fulfilling all your digital onboarding needs. 

Signzy is your one-stop, neatly-packaged, no-code AI-based digital onboarding solution that empowers leading financial organizations to deploy automated data management and customized client onboarding without any prior coding!

Yes! You read that right! Not a single line of code is required to deploy customizable solutions for your bespoke business needs. So hold your breath, ladies and gentlemen, as we are about to unveil path-breaking innovation in the field of fintech that holds promise and potential.

Why is No-code Approach Digital Onboarding The Talk of The BizTown?

The ultimate goal of any captain of the banking streamer is to reduce TAT (Turn Around Time) and offer an enhanced customer experience. Gone are the days when physical meetings needed to be fixed for the most straightforward banking procedures. Instead, optimized and customized secure digitized banking solutions have heralded the winds of change and set the tone for the future. 

By embracing the benefits of customized digital onboarding solutions such as Signzy, you get to open the gates to a world of benefits that suit the technologically challenged with seamless ease. When you leverage an automated customized platform such as Signzy, you make data management, solution deployment and machine learning a child’s play even for those who know zilch about coding!

Building complete AI solutions with No-code Approach that too without investing in expensive developer work results in optimized cost-efficiency and greater user flexibility. A single team member can deploy multiple modules to deliver customized onboarding, drag and drop solutions without consulting the IT team! Now, that’s progress.

Plus, not to mention that AI eliminates chances of human error, which ultimately translates into cementing customer trust and loyalty. Seems like a pretty win-win situation, we say!

Top 3 Reasons Why Deploying Signzy’s No-code Approach is a Smart Move

Let’s get down to some hard facts and number crunching to help you benefit from one of the best digital onboarding solutions and empower your financial enterprise like never before!

  1.  Optimized Deployment Time Enabled By Its No-Code Approach: 

Financial institutions are understandably short of time, and in a world where time and money directly correlate, you cannot afford to continue deploying age-old inefficient solutions. 

This is where Signzy comes into the picture with an extended hand. Being an inherently AI-based platform powered by a no-code approach, you don’t need a developer to build and crunch code. Its intuitive drag and drop approach results in a 90% reduction in TAT. Lesser time required for deployment results in a more significant, error-free onboarding process. 

Are you wondering what no-code tech brings to the table? Well, let’s break it down for easier assimilation. Imagine creating apps, AI tools, onboarding platforms, websites with just a laptop at your disposal and no pre-existing coding knowledge! 

Sounds too good to be true? Well, not really, as no-code technology enables even the not-so tech-friendly people to move the proverbial mountains effortlessly. 

No-code-based innovations have impacted a diverse range of industries, and the financial sector is no different. When done conventionally, the process of client onboarding in the financial sector still takes about a week to complete. When banks or neo banks deploy no-code solutions like Signzy, they optimize the clientele onboarding procedure quickly and smoothly through an AI-based online portal. 

All your KYC prerequisites such as forms, terms & conditions, secure biometrics enabled digital contracts are all packaged in one place. 

  1.  Secure, Flexible, and Customized Digital Onboarding: 

If you are worried about the security aspect of deploying this no-code-enabled platform, allow us to put your worries to rest. Whereas custom-built code built by a developer is open to errors and security risks, no-code platforms run on pre-tested systems that afford unparalleled biometrics enabled security to businesses and their database.

The flexibility that comes with this unique platform allows you to create customized flows and business tools with a drag and drop or click and point approach. Also, there is no learning curve to it, so no more research and number crunching. Instead, it’s as simple as waving your wand and getting the work done!

  1. Cost-efficient Customized Onboarding Solution that Helps Fintech Firms Breathe Easy!

Signzy offers customizable digital KYC solutions to a plethora of renowned financial institutions across geographies. As a result, companies have reported a 75% reduction in operational expenditure, 66% dip in customer churn rate, and 3% increase in sales productivity! These fantastic figures speak for themselves. 

Let’s try to understand what makes this achievable. First, these APIs offer a plug-and-play approach that allows you to create business tools on the fly. Also, they can be easily integrated with existing solutions ruling out overhead expenditures and developer costs. 

They carry out advanced microservices equipped to offer advanced features like forgery detection, AI-based risk detection, background verification against established government databases at a fraction of the cost.

Thus the deployment of such proprietary APIs guarantees cost-optimization and an enhanced user experience.

Key Takeaway

Customized, scalable backend operations and faster digital transformation are unequivocally the need of the hour, and Signzy delivers just that and a lot more! So you can now curate business tools with absolutely no coding at the time of deployment, ensure faster delivery, expedite creation time and automate a significant chunk of the tedious work. Consequently, you can now focus on things that genuinely require your expertise and attention with the rest of the things being taken care of. 

Optimize client onboarding with a few clicks in a simple manner and close deals faster than ever! Not to mention the reduced costs of not having to hire developers. Simply the best! 

 

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

The Road Ahead For KYC- 7 Ways Compliance Is Set To Change In This Decade

Posted on | by Signzian

$45 per employee is what companies pay on average for compliance training. The total average time is 5 hours for this training. When we do the math, if the company has more than 1000 employees, the total cost will amount to a minimum of $225,000 a year. Will this change?

Absolutely, yes!

A wave of increased regulation guidelines worldwide has made KYC(Know Your Customer) compliance more difficult, ergo, more expensive than before. Companies that previously snuck past by treating compliance as simply a checkmark operation now face a future filled with questions.

But, with newer technology and emerging trends, this is changing. This will change the associated expenses and the entire process of KYC compliance. We need to keep an eye out for these. Let’s have a look at the 7 major trends that will

 

  1. The Inevitable ‘Perpetual KYC’

Financial institutions(FIs) were content just reviewing customers periodically according to risk ratings. On average, it used to take up to 20 days for a single file to refresh a customer’s details. But now, future KYC compliance is more focused on Perpetual KYC. While regulators were not adamant about reliable, independent source data/documents or information until very recently, expectations will increase as government regulations strengthen with time. Companies should grasp this opportunity to begin working with structured data providers. They can provide event-based, real-time monitoring of alterations in customer details.

  1. Digital Adoption With Better, Increased Automation

Banks have started to use better AI(artificial intelligence) and ML(machine learning) to assess AML CFT risks. AML in finance is very important, and automation will help fortify it. In cases where they don’t use these outright, they will start to use large, open datasets, with dependence on smaller teams with extremely specialized skills. Moreover, total automation will trigger the quicker adoption of digitization. This will help CFT in banking improve, providing a safer approach to ecosystems even outside of finance.

  1. Dependence On Centralized Repositories

Decentralized data is a headache for regulatory entities and respective companies. Instead of forcing clients, providers, and regulators to obtain KYC information from multiple sources, centralized repositories will help streamline the data. In addition, it will remove the requirement for institutions to approach clients.

This has a significant impact on the mechanics and dynamics within the industry. Data sourcing is a considerable concern for the involved parties, but centralizing that information and data brings forth other problems to accompany increased capabilities. FIs should select structured data partners scrupulously as this change develops. This will also improve processes for AML in finance.

  1. Importance Of Operational Resilience Will Increase

Flexible companies can bear better through storms than rigid ones. Conversely, businesses not optimizing processes find themselves outmatched and outgunned by more elastic and agile organizations that acknowledge the need to adapt.

Organizations should focus on enhancing and stabilizing sustainability within KYC processes in order to survive high scrutiny and external pressures. This is particularly true in a post-COVID era, where regulators bring newer priorities and associated concerns to businesses with individual compliance requirements.

  1. Fading Opaque Ownerships

Increased transparency does not work well for companies obfuscating operations on purpose. As a result, regulators plan to storm down on OCS(ownership concealment strategies). Now that companies and regulators both have improved tools to detect suspicious situations. These institutions that have become accustomed to hiding their UBOs(ultimate beneficial owners) will have a troublesome awakening.

  1. More Stringent Global And Government Regulations 

What do regulatory bodies do when newer processes and tools permit them to detect more rulebreakers? Rarely are they happy with the results. Instead, they double down and increase regulations and lean harder on better technology to eliminate problems that could have been bigger than they initially expected.

After the initial wave of regulatory actions, businesses that remain compliant will not become complacent. Alterations will continue, either in cryptic and coded law or in the practice and execution of existing rules.

  1. More Data Sharing By FIs

As organizations understand more about compliance concerns, they look to their ecosystem partners to eliminate other issues they might have overlooked. In addition, they will share information through newer content and better practices, improving compliance strategies. Institutions in this regard should be accustomed to sharing more info and advice while working closely with other companies’ compliance teams.

 

What The Future Of KYC Compliance Holds

As newer regulatory guidelines enter the KYC ecosystem, companies must be vigilant. As technology evolves, best practices and the corresponding expectations of governments, regulators, and entities in the system also develop.

These trends are reshaping the world of KYC compliance. As newer insights and better tools come to light, more recent trends will augment or replace them. Although companies cannot precisely predict the future, they can craft flexible processes and the mindset necessary to traverse the unknown.

But for this, they will need the best resources they can find. That’s where Signzy can help you. Signzy’s state-of-the-art tools for KYC compliance and smooth processing will help and fasten your processes. They are AI-driven and completely customizable.

 

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

3 Major Reasons Why Your Business Can not Skip Out On KYB

Posted on | by Signzian

Do you know how many shell companies are there in India?

Apparently, no one does. But, authorities identified 230,000 shell companies in the last 3 years. Scrutinized data mining revealed nearly 300,000 shell companies involved in hawala and other illegal transactions. Just government regulations won’t cut it to cut down on these launderers. Individual enterprises need to take action. Each business needs to know with whom they are getting involved.

When it comes to low, mid, or even high-level corporate collaborations, KYB (Know Your Business) is the ultimate evaluation mode to secure business interests and stay compliant with AML(anti-money laundering) obligations. Before an enterprise associates with another company, it should ensure authenticity. KYB provides this while verifying the organization on multiple dimensions.

Ponemon Institute concluded that companies unnecessarily spend more than $4 million due to not taking action and investing in regulatory and compliance practices. KYB, unlike KYC, verifies enterprises and businesses instead of customers. They use certified identification parameters that include the owner’s OVDs(Officially Verified Documents), CRN(Company Registration Number), etc.

Here are the 3 major reasons why you should always have KYB processes set up for your enterprise’s collaborations.

Reason 1- Safe and Secure Business Relationships

Any B2B service and interaction depends on mutual interests and understanding. The changing world of digital technology impacts significantly on your business. On top of this, business partners do not have directive authority over their partner’s vendors. Hence there is a constant and inevitable need to verify trust between the businesses for a stable relationship. This is where KYB forms a reliable standard for building trust and acts as a secure communication channel.

KYB essentially solidifies the reliance of companies and businesses on each other. Additionally, it also provides security and safety from external threats. Many regulatory bodies demand this as well. Hence a regulations compliant tag requires processes involving KYB.

Reason 2- Increased B2B Conversions

Any company that has accessed KYB processes generates more credibility and trust. Partner organizations receive a positive impression. The process is solid and safe with multiple identity checks and verification procedures. Since everything can be automated, any face-to-face fiddle can also be avoided. Trust between involved parties is directly proportional to a greater B2B conversion rate.

This way, the relationships help establish a well-formed reputation for the enterprises. Trust directly impacts the conversion rate; it is relevant for up-and-coming start-ups to ensure they have a built-in KYB process. KYB helps organizations identify themselves without any physical presence at sites or offices. It also helps provide interest-oriented services that increase the conversion rate for B2B services.

Reason 3- AML CFT Compliance

The increase in financial crimes worldwide makes it necessary for governments and law enforcement agencies to ensure regulatory measles. For example, the 1970’s Bank Secrecy Act in the US was established to combat tax evasion and unlawful drug dealings. This was the first step in AML’s history. In addition, organizations like FATF((Financial Action TaskForce) and FinCEN (Financial Crimes Enforcement Network) are aimed at this same goal of AML and following government regulations.

AML practices safeguard the safety interests of businesses. Non-compliance with AML is an expensive deal. Companies pay more than $5 million to regulatory authorities for non-compliance with AML.

The 4AMLD, the anti-money laundering directive from the European Union, dictates and encourages financial institutions to follow KYB practices. This keeps a tab on potential money laundering and terrorism funding initiatives. Therefore, KYB is mandatory for AML implementation. As a matter of fact, it is the cornerstone in identifying potential dangers in B2B interactions.

A Bonus 4th Reason For You:

KYB Reduces Operational Costs

It is no novel fact that automation and digitization help reduce operational costs and TAT. It also helps reduce human interventions and, in essence, human resources. But KYB, primarily digital KYB, takes this up a notch. Digital KYB, just like Digital KYC, maintains the status quo of technological independence. The processes involved are designed to create minimal human intervention while providing the safe and secure fortification it demands. This reduces errors, resulting in costs saved from human errors while maintaining security for the businesses. As it reduces the TAT, this increases the scalability of operations. This renders the future of processing faster for the involved enterprises.

To summarize, KYB is an effective method for creating secure business relations. This is done by reducing the total operational expenses, enhancing the conversion rate in B2B services while complying with AML policies and procedures.

If you wish to create a fortified and user-friendly Digital KYC/KYB process, we can help you with the best resources in the industry. From scratch, Signzy helps build entire onboarding and KYB processes for our clients. These are incredibly customizable too. Of course, you can understand how secure they are as we use state-of-the-art AI rule engines and APIs on our website.

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

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