Annual business formations jumped up to over 5 million after the pandemic and have continued to rise since: 2023 was another record year of business formations, up 56% from pre-pandemic baseline.
As we start the new year with these emerging businesses, financial service providers have a growing opportunity and a growing challenge. Onboarding more businesses, more quickly – amidst changing legislation – becomes a top priority.
In turn, Enigma is committed to improving our KYB and Onboarding product – launched late last year – to help FIs do just that. In Q1, we focused on making onboarding and integration of our KYB product easier via a Quickstart Guide on our Console as well as Tasks, an easily configured set of policy rules that meet your specific compliance requirements.
Launch of “KYB Quickstart”
New customers can now log in to the Enigma Console and use the Quickstart Guide to familiarize themselves with our KYB product. This makes onboarding and integration a more seamless experience for customers.
Standardized Registration Status
We are now providing a standardized status on a business’s corporate registration across all jurisdictions. Now, customers can easily see if a business is active and in good standing in states where it does business, instead of dealing with hundreds of different statuses.
Launch of “Tasks”
We launched Tasks, a new feature that allows you to run standard KYB compliance checks to auto-approve more businesses with Enigma. You can now easily configure a set of policy rules that meet your specific compliance requirements using Tasks. This will also make it easier for developers to integrate with our platform.
Increasing Ease of Address Verification
We added a new task to make it easier for customers to perform address verification. Verifying the legal address and operating locations of a business can impact various decisions during the due diligence process. Compliance, underwriting, and other financial decisions often necessitate a comprehensive understanding of a business's physical presence.
Increasing Ease of Name Verification
We added a new task to make it easier for customers to perform business name verification. An essential aspect of the due diligence process involves identifying and verifying both the legal name and any DBAs associated with a business. This is crucial because a business might interact with you using its DBA, rather than its legal name. When seeking vital information about a business – such as its corporate registration – it is typically filed under the entity's legal name.
Latency Improvements
We invested in our data connections with Secretary of State departments to more reliably source corporate registration data. Improvements in our data pipeline ensure Enigma always has the freshest data possible to service customers’ KYB requests.
Legal Entity Type Surfacing
We are now surfacing the legal entity type of the business (corporation, LLC, etc,) according to the business’s corporate registration from the state in which they are headquartered. This enables customers to verify that the legal entity type on the corporate registration matches what the business filled in on their application for financial services.
New KYB Package, Without Watchlist Screening
We now have a new package, KYB_no_OFAC, that does everything in our pre-existing KYB package, minus the OFAC watchlist screening component. This new package allows us to serve our customers’ unique onboarding needs.
Matching Logic Updates
We have updated our matching logic to account for any differences in formatting, punctuation, or abbreviations between the customer input and the source data we are matching to. This normalization process enables us to provide a higher match rate for our customers.
Current customers can reach out to their CS representatives with questions and feedback. If you’re new to Enigma and interested in our Onboarding & KYB products, please get in touch.