STP: Straight-Through Processing

Straight-Through Processing (STP) is the ability to complete a verification or onboarding workflow automatically, without human intervention, from start to finish.

How STP Works

Application → Auto-Verify → Risk Score → Decision → Onboard
     ↓            ↓            ↓           ↓          ↓
   (data)    (no manual)   (rules)    (approve)   (active)

All steps complete programmatically based on:

Data matching against authoritative sources
Pre-defined rules and thresholds
Automated risk scoring
Clear pass/fail criteria

STP Rate

The STP rate measures what percentage of applications complete without manual review:

>90%: Highly optimized, tight risk tolerance

70-90%: Typical for low-risk segments

50-70%: Moderate complexity, mixed risk

<50%: High-risk segment or process issues

What Breaks STP

Applications fall out of STP when:

Data doesn't match (name mismatches, address discrepancies)
Entity resolution is uncertain
Watchlist hits require review
Risk score exceeds auto-approve threshold
Missing required information

STP and KYB

For KYB, STP enables:

Faster onboarding for low-risk businesses
Reduced operational cost per verification
Consistent application of rules
Scalable verification volume

However, complex ownership structures, international entities, and high-risk industries typically require manual review.