How Much Time Do You Waste by Not Using an Automated KYB Process?

Knowing the companies you interact with in-depth is crucial. The Know Your Business (KYB) process focuses on understanding all aspects of collaborating companies, emphasizing knowing their owners, shareholders, and suppliers before customers. This process has become an integral part of compliance assurance across various industries, not just regulated ones.

The importance of KYB is evident when looking at business fraud statistics. Approximately 19% of all online purchases by B2B merchants are fraud attempts. In Australia, B2B invoice fraud cost 91.4 million Australian dollars in the last fiscal year, according to the ACCC‘s “Targeting Scams” report.

KYB processes are essential as they help organizations verify corporate and personal information of the client’s senior management. Using a KYB system can detect red flags for terrorism financing or money laundering if suspicious activity is detected.

Today, we discuss how much time and resources can be lost by not using an automated KYB process and why it is essential to adopt this technology to improve efficiency and security in managing business relationships.

What is KYB – Know Your Business?

Know Your Business (KYB) is an essential process that enables companies to thoroughly understand the organizations they have business relationships with. Unlike Know Your Customer (KYC), which focuses on individual customers, KYB focuses on corporate entities.

KYB involves verifying key information about the client company, including the identity of its owners, shareholders, directors, and suppliers. This process helps ensure that the company you are doing business with is legitimate and complies with all relevant regulations.

Implementing a KYB process includes collecting and verifying documents such as certificates of incorporation, bylaws, shareholder lists, and financial data. This process not only helps prevent fraud and money laundering but also ensures regulatory compliance and reduces operational risks.

How Automated KYB Works

The automated KYB process simplifies and optimizes business verification through a series of highly efficient steps, eliminating most manual tasks and reducing human errors. Here’s how it works and its main features:

➡️ Automation of Data and Document Collection The entire process of collecting company documents and data is delegated to the client, who provides the necessary information. Automation handles all communication and emails required to request and collect this information efficiently.

➡️ Comprehensive Data Verification The automated tool verifies all company data, including information on representatives and UBOs (Ultimate Beneficial Owners), as well as background checks for sanctions and AML (Anti-Money Laundering) compliance. This ensures that all relevant data is correctly validated.

➡️ Automatic Information Extraction The solution processes between 600 and 900 documents monthly, extracting information from incorporation documents and other legal papers without manual reading. This automated process saves a significant amount of time and effort.

➡️ Customization and Ease of Use The tool can be used without the need for complex integrations and allows the customization of screens and emails with the company’s branding. Additionally, there is the option to integrate the entire KYB workflow into the company’s existing environment for a smoother experience.

➡️ Continuous Communication Flow Automation applies not only to data collection but also to all necessary communication to complete the verification process. This includes sending automated emails and notifications, keeping all parties informed and the process moving without manual intervention.

Benefits of Automated KYB Process: What Are They?

Adopting an automated KYB process offers significant advantages for companies, ranging from financial and time savings to greater accuracy and regulatory compliance. Want to discover all the benefits of an automated KYB process?

✅ Cost Savings
Implementing an automated KYB tool is considerably more cost-effective than making additional hires. Managing a high volume of documents, such as 900, would require hiring 3 to 4 additional people. With an automated system, costs are reduced to a monthly or annual subscription, representing significant savings.

✅ Time Savings
The automated process eliminates the need for numerous emails requesting information and sending reminders. By providing real-time feedback as clients upload information, the process is considerably streamlined. Additionally, the automatic extraction of information from complex documents, which can be up to 40 pages long and in any language, accelerates verification and avoids extensive manual reading.

✅ Support and Agility
Automated solutions like the one offered by Silt are flexible and constantly evolving to add new functionalities that centralize all processes into one tool. This not only saves time but also allows companies to quickly adapt to new needs and regulations.

✅ Reduction of Human Errors and Fewer Fines
Centralizing all information and processes in a single tool significantly reduces human errors. Fewer administrative tasks mean fewer opportunities for mistakes, decreasing the risk of fines and penalties for non-compliance. Additionally, it allows senior staff to focus on critical tasks instead of repetitive administrative tasks.

New Features of Silt’s KYB

Silt‘s KYB has introduced a series of new functionalities designed to improve the efficiency and accuracy of the business verification process:

🔔 Bank Account Verification
Silt has integrated bank verification to confirm that a person has access to a company bank account, eliminating the need to request ownership documents. This functionality also allows for generating a credit score based on banking information, providing a more comprehensive and accurate financial assessment.

🔔 CRC (Credit Risk Check)
Thanks to bank integration, it is now possible to obtain a verified credit score. This tool assesses the company’s credit risk, offering a detailed view of its financial stability and its ability to meet economic obligations.

🔔 Bad Reputation and Adverse Media
Silt has incorporated automatic searches for adverse news and negative media reputation. If negative or controversial news about the company is found, an immediate alert is generated. This functionality allows companies to identify and mitigate reputational risks proactively.

🔔 Custom Questionnaires
Custom questionnaires can now be added for the company to complete during the verification process. This allows for collecting specific additional information that may be crucial for evaluating the company’s legitimacy and compliance.

🔔 Automatic Document Collection in Europe
Silt has integrated with various governments and tax jurisdictions in Europe, such as tax agencies, to collect documents directly from government databases. This automation reduces the need to request documents directly from companies, streamlining the verification process and ensuring the authenticity of the obtained documents.

These new functionalities not only improve the precision and efficiency of the KYB process but also allow for greater transparency and control over the verified information, ensuring continuous and robust regulatory compliance.

To summarize: why is it better to use an automated KYB process rather than a manual KYB?

Adopting an automated KYB process instead of a manual one offers numerous advantages that optimize both efficiency and security in business verification:

• Time and resource savings: Automation eliminates the need to manually handle large volumes of documents and communications. By delegating data collection and document verification to automated systems, the time dedicated to these tasks is drastically reduced, allowing staff to focus on more strategic activities.
• Reduction of human errors: Manual processes are prone to errors, especially when handling large amounts of information. Automation reduces these risks by centralizing and systematizing verifications, ensuring greater accuracy and consistency in the data.
• Better regulatory compliance: Automated tools ensure that all procedures comply with current regulations, reducing the risk of non-compliance and associated fines. Continuous database updates and automatic verification of sanctions and AML lists guarantee constant compliance.
• Greater transparency and control: An automated process allows for more effective oversight and the generation of detailed real-time reports. This not only facilitates internal audits but also improves the ability to respond to potential risks.
• Efficiency in communication: The automation of emails and notifications accelerates data collection and ensures smooth communication with all involved parties. This avoids delays and keeps the process moving without constant manual intervention.
• Adaptability and customization: Automated solutions like Silt allow for the customization of workflows and interfaces according to the specific needs of the company, without the need for complex integrations. This flexibility makes it easier to adapt the system to different contexts and requirements.
• Support and continuous evolution: Automated tools are constantly evolving, incorporating new features and improvements based on market needs and regulations. This ensures that the company always has the best practices and technologies available.
  

✅ Try our KYB for free
Fully automate corporate customer verification with Silt and save up to 90% of your time. 

Facilitate document collection, manage everything from a single dashboard, and ensure regulatory compliance without additional complications. 

Boost your business growth without increasing your team size, reduce fraud, and avoid penalties with our reliable and automatic KYB verification. 

Interested in seeing it in action? Contact us to schedule a call or try a free demo. We are here to help you optimize your company’s customer verification!