Confirming the legitimacy of new business customers provides challenges to companies of all sizes. In an effort to ease these challenges, financial crime intelligence firm ComplyAdvantage has launched a new ‘Know Your Business’ (KYB) solution.
Currently, assessing whether another business is safe to work with can be time-consuming and doesn’t always provide the most accurate information to make decisions. Existing approaches often rely on manual research across multiple siloed sources.
Banks typically spend as many as 14 days conducting the necessary background checks when opening a business account.
The new ComplyAdvantage Know Your Business solution automates the process to make it faster and easier for companies to manage risk exposure while quickly growing their customer base.
Oliver Furniss, chief product officer at ComplyAdvantage, said: “Business accounts present a tremendous growth opportunity for most companies, but onboarding and monitoring them is hugely time-intensive and inefficient for their analysts.
“Our new KYB solution provides the data and insights our customers need to make informed decisions much faster and manage their risks more effectively.”
Once the company creates a new customer profile, KYB automatically checks the name against business registries and fills in all the key information about the business executives.
In order to accurately assess business risk, companies need to research a number of variables from the age and location of the potential business customer to its industry vertical and governance. ComplyAdvantage aims to make it easier for administrators to create a variety of risk profiles and tailor them to their risk policy.
Freeing up time for analysts
The solution’s flexible configuration can populate and update automatically, to reduce the number of micro assessments analysts have to engage with. Instead, they can prioritise their time and effort on high-risk businesses and quickly process lower-risk companies.
Furniss also discussed the impact of a dynamic scoring feature included in the KYB solution: “Banks and other companies leveraging Dynamic Risk Scoring significantly enhance the speed, accuracy, and efficiency of their business onboarding operations, bolstering their overall operations and reinforcing the robustness of the financial system.”
The feature automates the risk management process when changes occur in a business customer’s ownership, credit rating, trading amounts, or directorship/governance.
In the past, this has often exposed banks and financial institutions to potential risks due to missed critical changes in management.
KYB by ComplyAdvantage is currently available in the United States, with plans to add additional regions in 2024.