Corporate Service Providers and Corporate Payment Solutions remove hustle from the process of incorporating a company and make it stress-free. However, when it comes to FinTechs, KYC and compliance are a huge pain, which Corporate Services could comfortably handle, yet often they don’t. In this article, we will take a closer look at KYC software solutions and how Corporate Service Providers and Corporate Payment Solutions can benefit from it.

It takes a village to incorporate a business

An old African proverb states that it takes a village to raise a child. Often, it takes at least a team to incorporate a business. In some countries, it’s as easy as 1, 2, 3, but in most regions, it is exceptionally challenging.

Imagine all this hustle:

  • ✔ Notarizing your documents
  • ✔ Couriering files
  • ✔ Company registration and incorporation
  • ✔ Hiring a secretary
  • ✔ Doing the bookkeeping and accounting
  • ✔ Filing taxes
  • ✔ Registering an office
  • ✔ Following regulations and being compliant
  • ✔ Endless phone calls and emails

It might seem that in 2020 it should take minutes to register a company. Still, excessive bureaucracy and regulations make it almost inevitable of spending weeks or months trying to incorporate a company. It becomes tenfold more complicated if you are trying to do it in a foreign land.

There’s a solution – Corporate Service Providers, which usually offer a one-stop-shop for everything you might need while incorporating a company.

Corporate Service Providers offer the following services depending on the legislation:

  • ✔ Incorporation
  • ✔ Company secretary
  • ✔ Accounting and bookkeeping solutions
  • ✔ Virtual office
  • ✔ Registered address
  • ✔ Tax filing services

In addition to those, many service providers accommodate various solutions for managing documents, communicating with the team, and being compliant.

Corporate Payment Solutions, in their turn, who mostly offer prepaid cards and various solutions for managing both local and international payments, also offer compliance.


What level of compliance do Corporates Service Providers offer?

Despite being flexible and fast, solutions for digital banking and other FinTechs, Payment Solutions, as well as Corporate Service Providers, offer only primary compliance benefits. Promised compliance usually consists of initial incorporation and requirements that go with it. Those typically include document notarization, accounting, and additional necessities, such as providing a secretary, registered address, or other materials.

In 2020 compliance is a lot more than the essentials mentioned above. Organizations that provide digital financial services such as cryptocurrency exchanges, e-wallets, peer to peer lending, investment brokers, trading platforms require additional security measures. Besides, marketplaces also have to meet other security requirements.

Those security measures are usually created to prevent Money Laundering and Terrorist Financing. They are often met by having an AML compliance program and implementing a KYC software solution.

Know Your Customer (KYC) is a process of verifying one’s identity and calculating risks of each individual or an organization, with whom you are enterting a business relationship.

Such identity verification software can be built in-house, but it requires a lot of financial resources and time to train Compliance Specialists and Risk Managers. Therefore, most of the companies outsource identity verification to KYC service providers.

KYC and Know Your Business (KYB) are a must-have in the financial industry. Why don’t Corporate Service Providers offer this service? There’s a need for a real one-stop-shop for building a FinTech. And compliance should be a considerable part of it.


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Providing KYC, AML, and compliance as a service

There’s an obvious benefit to providing ID verification software together with an AML Compliance Program. With KYC and AML services offered, Corporate Service Providers become a real one-stop-shop for all kinds of businesses. This additional feature draws a clear distinction between various Corporate Service Providers, making the ones who offer KYC and AML a lot more attractive for prospecting clients.

Building a KYC software solution from scratch in-house is remarkably complex. It requires a department of developers as well as compliance and risk managers. It will take years and a fortune to develop a secure identity verification software. Knowing this, it’s not a surprise that so few Corporate Service Providers offer AML & KYC software solutions to their customers.

At the same time, choosing a KYC provider is also difficult, as there are dozens of them, while only a few provide reliable results, but adopting both KYC and AML as a serv

of mind for you. You will be sure that your clients are compliant with regulations and have top-notch risk mitigation strategies.


What if there was a more natural way?

And there is. BASIS ID has created a KYC & AML workflow management platform that you can customize and offer to your customers as a service. By doing so, you will not only earn additional income but also will be sure that your customers are compliant and are enjoying an absolute one-stop-shop for company incorporation.


KYC workflow management platform

BASIS ID is not your regular KYC and AML service provider. It offers a KYC workflow management platform. Let’s take a closer look at what it is.

KYC workflow management platform is not just a database or an identity verification software. It’s a smart and powerful tool for managing KYC data of your clients and clients’ clients.

BASIS ID allows you to perform a thorough and user-friendly KYC, perform AML checks, do adverse media screenings, and other checks against various blacklists and sanction lists. Then it gathers all of the client information in the workflow management platform, where compliance officers can see the history of uploads and checks for all of the profiles, risk scores, and the results of robust machine learning algorithms in an easy-to-use interface. 

The KYC software includes such features as OCR for documents, which includes non-latin characters, biometric verification, address verification, and AML screening. BASIS ID provides the best possible fraud protection while avoiding false positives and increasing conversion by going after each user.

Read a relevant case study


KYC & KYB for you

By using a KYC workflow management platform, you will be able to also onboard your customers. There’s a lot of risks when it comes to working with businesses, especially from other countries. At the same time, the process of onboarding users for Corporate Service Providers and Payment Solutions usually is performed by hand. There’s no scalability to that approach, while human compliance officers are generally less accurate than Machine Learning algorithms when it comes to spotting fake or altered documents and biometric verification.

BASIS ID provides a robust set of tools that allow you to perform identity checks on your customers: individuals and businesses. After that, you will be able to manage your customers in the workflow management platform, where you will also see your customers’ customers.

There’s no need to have several different platforms in 2020 for managing your users when it all can be done conveniently in a single interface.


Conclusion

Corporate Service Providers strive to provide a one-stop-shop for incorporating a business. However, many of them forget about the importance of KYC. Service Providers rarely offer KYC software or AML compliance program for their customers, while also onboarding their own clients manually.

BASIS ID provides a KYC workflow management platform where Corporate Service Providers and Payment Providers can manage their customers as well as resell the identity verification software do them. This approach gives you the peace of mind thanks to the reliable KYC software as well as substantial additional income.

If you’d like to learn more about the KYC workflow management platform, checks out our interactive demo here or contact us using the form below.

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