Financial institutions (FIs) attempting to comply with Know Your Business (KYB) requirements and verify the identity of the businesses they partner with are faced with numerous challenges today.
First off, KYB rules are relatively new – first established in 2016 in the Customer Due Diligence (CDD) Rule and changing even as recently as the past few years. Secondly, developing a KYB solution in-house can be quite costly and time consuming. Understanding the relevant regulations and rules, adopting them into compliance standards and policies, and building technology to support an ever-growing customer base can all require a large investment and significant overhead. Finally, the options FIs currently have for external KYB solutions today are often costly and are built off of slow processes like manual verification.
In turn, FIs were looking for a solution that could adapt to the latest requirements, take the manual lift out of KYB, and reduce costs. Today, we’re announcing the launch of Enigma KYB, a solution to help you verify businesses and reduce onboarding costs via instant verification of Secretary of State (SoS) filings, risky activities classification, and OFAC screening.
Traditional KYB providers rely on:
Enigma’s KYB solution offers:
Wondering how we’re able to instantly approve more businesses than other providers while cutting overhead costs?
Traditional providers rely on perfectly inputted SoS filings in order to auto approve – then move to manual approval when filings aren’t complete. Enigma instead enriches SoS filings information with DBA names, websites, and operating locations of a business to be able to surface the correct SoS filing without perfect inputs.
Because we can instantly automate more than 70% of your business verification, as it pertains to registration filings, through this process, you can onboard more clients, for less rather than waiting for time-consuming manual approvals.
Enigma KYB offers:
In advance of the launch of Enigma KYB, we worked with a variety of financial institutions across payments, online banking, and KYB orchestration to test our efficacy compared to traditional providers.
We compared these FI’s traditional registration fill rates – e.g. businesses they were able to instantly verify without any manual steps – with their registration fill rates after using Enigma KYB. Decreased manual verification is critical for FIs looking to reduce overhead and process costs, as well as for stopping potential customers from dropping off during long verification wait times.
We increased registration fill rates by approximately 50%. With Enigma, these FIs increased their instant verification to 72.4% on average, across segments. We were particularly successful in the payments industry – one medical-focused payments provider, for example, doubled its registration fill rate with Enigma.