ID Verification - KYB

What is KYB? An Overview of the Know Your Business Process

January 20, 2023
June 11, 2024
Table of Content

Know Your Business (KYB) is a necessary legal obligation for organizations which requires them to verify the identity of the businesses that they transact with. However, KYB is not merely a compliance box to tick off, but can help companies increase revenue and optimize user experience. Good KYB processes not only minimize the risk of fraudulent activities and mitigate the potential for financial loss, but streamline onboarding and due diligence procedures, reducing the time and resources required to initiate new partnerships. This efficiency not only enhances the overall customer experience but also allows businesses to seize opportunities more promptly, accelerating revenue generation.

The entity itself (the business) must be verified as being legitimate and can often – though not always – require the verification of  Ultimate Beneficial Owners (UBOs), who are the individual stakeholders in the company – generally speaking those with 20% stake or more in a business. 

KYB is a growing need for organizations: The global KYB market is projected to reach USD $11.8 billion by 2026, growing at a CAGR of 16.3% from 2021 to 2026. The increasing regulatory compliance requirements across industries – such as AML rules, counter-terrorism financing laws, sanctions screening and many more – the rising adoption of digital payment methods, and the need for client due diligence make KYB a vital function for businesses. 

Realize Operational Efficiencies and Increase Revenue with KYB

Doing KYB right can save companies money through operational efficiencies and drive revenues by onboarding new clients quicker and cheaper. 

However, many companies fail to realize these benefits because they are using largely manual KYB processes, or they lack access to the right data. In fact, statistics show that around 30 percent of companies doing KYB use a completely manual process. This can be time-consuming, very costly and cause delays and affect the customer experience.

Doing KYB right ultimately means companies can onboard new clients faster, reduce manual workflows, be more efficient and drive revenues. Here are just a few of the significant business benefits that can be realized with an optimal KYB solution in place. 

Enhanced Risk Mitigation:

KYB helps businesses mitigate risks by providing accurate and reliable identity verification and risk assessment services. By reducing the chances of fraudulent or high-risk business relationships, users can gain peace of mind and protect their organization from financial losses and reputational damage.

Faster Onboarding:

Onboard new customers and partners quickly and efficiently. By automating the KYB process and leveraging advanced technologies, the KYB service can expedite onboarding timelines, resulting in faster time-to-revenue and improved customer satisfaction.

Compliance Confidence:

Ensure confidence that you are compliant with regulatory requirements. By offering a robust and up-to-date KYB service that aligns with relevant regulations, businesses can gain assurance that they are meeting their legal obligations, reducing the risk of penalties and fines.

Efficient Resource Utilization:

Optimize resource allocation by automating manual KYB processes. By minimizing the need for manual document verification and data entry, businesses can allocate their resources more efficiently, enabling their teams to focus on higher-value tasks.

How Caf Can Help

With Caf KYB, companies can take previously manual processes and automate them, turning the task of verifying new business clients from weeks or even months into mere minutes. 

Caf KYB helps companies scale quickly, globally and increase operational efficiency. Business clients, directors, shareholders and UBOs worldwide can be verified in minutes, and workflows can be customized to ensure smooth onboarding without sacrificing security.  

Caf KYB helps companies of all sizes reduce costs, fight fraud, optimize customer experience and grow their business. Some of our results include: 

  • Reduce the time and cost of compliance by as much as 70%
  • $100 million in B2B fraud prevented
  • $70 million in annual due diligence cost savings
  • Increase revenues by up to 5%
  • Increase time to revenue by onboarding new clients quicker

If you’re interested in learning more, talk to an expert today. 

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"What is KYB? An Overview of the Know Your Business Process"