Do you still submit the documents via email to open business bank account?
While Know Your Customer (KYC) has successfully transitioned to a digital realm with eKYC, Know Your Business (KYB) is facing hurdles in its transformation to eKYB, especially in East Asia and Southeast Asia.
Challenges
Complex Business Structures: Businesses can have intricate ownership structures and beneficial ownership can be difficult to verify electronically.
Data Fragmentation: Business information resides across various sources (public records, regulatory databases) making electronic aggregation a challenge.
Verification Methods: Verifying a physical presence, documents, and operations remains an obstacle in the digital realm.
Solutions
Standardized Data Collection: Standardization of business data formats across databases would facilitate easier electronic verification. In addition, Ultimate Beneficial Owner (UBO) Automated Search functionalities can also help cut down the time to check the top 3 UBOs for the complex structured company.
Leveraging Technology: AI and machine learning can analyze vast datasets to identify suspicious patterns and ownership structures. Having a single tool that consolidate business data structure consistently across countries could help streamline analytics and open up opportunity for fraud detection ML.
Advanced Document Verification: Similar to ID Documents for KYC, Business Documents such as business certificates, article of incorporation etc are common for business verification. Using LLM technology to verify the type of documents and consistent information inside the uploaded documents can eliminate the need for manual document check.
Streamline to e-sign integration: To overcome a need for in-person visit, the business needs to embrace e-signature technology that can verify the authorized signers.
Collaboration between Regulators: Harmonization of eKYB regulations across jurisdictions would create a more streamlined process. This is a challenging one but, if done right across the region, it will open up international trade and business transactions seamlessly across the region.
By overcoming these challenges, we can bridge the digital divide and unlock the efficiency and security benefits of eKYB.
UpPass orchestrates the technology together so you can integrate them seamlessly for end-to-end eKYB (zero code). If you are interested in transforming end-to-end eKYB. The business can achieve verified business and get the contract e-signed by sharing just a single link.
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