Why is everyone talking about KYB automation?

In past years, financial and other institutions have focused heavily on improving compliance and customer experience related to the onboarding and lifecycle management of individual clients (know as KYC – Know Your Customer).

Technological improvements and the move away from manual processes have helped many firms take significant steps towards STP (“Straight Through Processing”) onboarding of individuals.

However, the same measures have not been applied to the onboarding and lifecycle management of corporate clients (known as KYB – Know Your Business). This, among other things, due to the mis-conception that this process cannot be streamlined, as it includes:

–          determining structure, shareholders, UBOs, directors;

–          determining risk level, which can be influenced by the corporate’s sector, domicile and more;

–          obtaining negative data such as sanctions or adverse media;

–          obtaining financial data about the corporate;

–          verifying and screening shareholders and directors;

–          and much more.

This has kept onboarding cycles to days and even weeks; and processes have remained highly manual.

Lately, however, more and more financial institutions are automating their KYB as well. This, as a result of:

–          an incremental increase in sanctions against corporations;

–          mass adoption of AI tools; and

–          rising customers’ expectations for a quick, streamlined experience, similar to that of KYC.

This move to automation of KYB is changing the way corporates are onboarded and managed across the industry. Clients of Muinmos have achieved up to 96% time-savings and over 30% savings in costs.

This is done through:

–          direct integration into corporate data-sources

–          smart customer journeys which account for different levels of due diligence and risk

–          AI-powered CRA (Client Risk Assessment) engine

These and other features allow Muinmos’ AI-powered client onboarding and lifecycle management platform to achieve true STP even in KYB, transforming both compliance and customer experience in the area.