Many different factors and parties contribute to the success of a business and its products, including vendors, suppliers, manufacturers, and logistics providers. While these elements are crucial to a company’s success, the fame and recognition typically go to the firm and its products or services. However, if a company fails, regardless of the reason, its reputation can suffer in the market.
KYB (Know Your Business) verification solutions help prevent this from happening in identity verification (IDV). Before forming partnerships or onboarding new customers, these AI-powered solutions check the credibility of personal and corporate information by securely validating it with regulatory and intelligence agencies like the FBI and Interpol.
KYB Verification Solutions for Document Validation
The process of verifying a company’s credentials with KYB solutions is quick and straightforward. In three simple steps, beneficial owners or business associates upload images of personal ID documents such as national ID cards, driver’s licenses, passports, social security numbers, bank statements, and more. For corporate verification, additional documents, like the official registration number, trading licenses, annual performance reports, and general ledgers, are required.
Using AI models, KYB solutions perform Optical Character Recognition (OCR) scanning on the documents to extract information and quickly verify the data. Business owners take live selfies and upload them alongside documents to be authenticated by comparing this information with data stored in top-secret regulatory and intelligence facilities. Once document verification is complete, the results are displayed in real-time.
Digital KYB Solutions in Different Industries
KYB verification solutions are used across various industries for ID verification and fraud prevention, including online banking, insurance companies, commerce, brokerage firms, FinTech, and the legal sector.
KYB Verification Solutions in Risk Management
When businesses want to onboard new customers or form strategic alliances, they perform KYB verification to check the identity and credibility of the prospects. Based on the output, a risk rating is assigned to each client profile, which helps in managing relationship risks and monitoring clients over time. The accuracy of these AI-driven KYB solutions aids in critical decision-making.
These checks help identify suspicious activities or past involvement in unlawful undertakings of the prospective firms. KYB solutions alert businesses if a beneficial owner is on a sanction or PEP list or if the firm faces serious market charges. Poor verification can lead to substantial financial losses; for instance, $3.3 billion was lost to identity fraud in 2020.
Working Modes of KYB Verification Solutions
Onsite Mode
In this mode, the IDV service provider acts as a middleman between the verifying firm and the prospect company, collecting necessary data, verifying it, and then forwarding it to the bank or company.
Offsite Model
The verifying platform gathers the prospect’s credentials and sends them to the KYB verification provider for validation.
Evidentiary Proofs of Corporate Verification
To ensure transparency, KYB providers offer clients imagery and video proofs of business verification. This includes continuous video recordings and images of scanned IDs and documents, which are stored by the verifying firms.
Conclusion
Technological advancements have enabled businesses to go global and reach new customers. To explore new markets, businesses form alliances, open bank accounts, and request loans. Digital KYB solutions help verify the authenticity of these partnerships by checking the corporate structure and history of key stakeholders efficiently and accurately. These solutions compare provided information against data from regulatory and intelligence agencies, minimizing risks effectively.
