How to Build Your Ideal Customer Onboarding Process
The Business Identity Verification Problem
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.
How Enigma KYB Differs from Traditional Solutions
Traditional Providers’ Business Identity Verification
Traditional KYB providers rely on:
“Auto-Approvals”: Traditional providers supplement data gaps with manual verification that can take hours and days, leading to customer drop offs
Unclear pricing: Traditional providers tier verification based on various features needed, making the costs of KYB confusing and hard-to-predict
High costs: Many traditional providers bake in the costs of manual verification into simple verifications, leading to higher costs for you
Enigma’s Business Identity Verification
Enigma’s KYB solution offers:
Market-leading instant verification: We can automate more than 70% of your business identification process in under 3 seconds
Leading industry coverage of business registration filings: We instantly verify 1.5X more businesses than peers
Simple, low costs: We offer one set price across each business verified. These prices save you 50% on overhead if you have existing KYB providers and 80% if you don’t currently use an external data provider at all
Flexibility: We can help you integrate Enigma KYB into your existing data process or help you build a new KYB process
Speed: Streamline KYB from a multi-day process to near instant auto-approvals
How We Do Business Verification Differently
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’s Features
Enigma KYB offers:
Secretary of State (SoS) business registrations: Instantly verify businesses’ names, addresses, websites, and officer data across Secretary of State filings to approve more businesses, more quickly. Statuses are updated bi-weekly, making it easy to flag businesses that are no longer in good standing.
High-Risk Activity Classification: Discover whether businesses conduct high-risk activities – and make better decisions with that knowledge.
OFAC Watchlist Screening: Screen businesses and owners across watchlists that are refreshed on a weekly basis so you know who you’re doing business with. Enigma’s screening engine is used by a top 10 U.S. bank, has been audited by regulators, and is proven to have low false positives without an increase in false negatives.
Identity across all business firmographics: Retrieve Identity attributes, from operating names and addresses, legal names and addresses, industry classification, and industry-leading website coverage for performing lighter-weight due diligence.
Enigma KYB’s Results
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.