What to consider when choosing a KYB platform?
Flexibility and integration - Your chosen KYB platform should seamlessly integrate with your existing systems and workflows. Look for API-first solutions that offer flexible integration options, enabling smooth operation without disrupting your business processes.
Transparent pricing structure - Transparency is crucial when it comes to pricing. Make sure to partner with a provider that offers a clear and transparent pricing model, with no hidden costs or surprises. Avoid vendors that require prepaid credit or impose minimum consumption requirements, especially if you’re a startup or an SMB.
Regulatory compliance - Your KYB platform must stay up-to-date with regulatory changes and adhere to industry standards. Avoid vendors that overlook compliance requirements or offer outdated solutions, as this can expose your business to unnecessary risks.
Customization and scalability - Choose a KYB platform that offers customization options tailored to your specific needs. Make sure that the platform can scale with your business's growth, accommodating increased volume and complexity without sacrificing performance.
Vendor reputation and reliability - Research the reputation and reliability of the vendor before making a decision. Look for vendors with a proven track record of delivering high-quality services and maintaining excellent customer satisfaction.
Beware of tricky tactics
No external vendors allowed - Some vendors may restrict the use of external data sources, limiting the effectiveness of the KYB process. Ensure that your partner allows for integration with trusted third-party providers to access a wide range of data sources. Some vendors restrict the use of external data sources or offer it only to ‘premium’ clients. It’s limiting your ability to gather comprehensive information needed for the business verification. Accessing some data sources can enhance the accuracy and efficiency of your verification procedures.
Required prepaid credits purchase - Beware of vendors that require the purchase of credits upfront. Instead, look for those that offer flexible payment options to align with your budget and usage needs. The upfront investment ties up a significant portion of capital, limiting financial flexibility and potentially disrupting cash flow which is a hassle, especially for smaller businesses. In many cases, the prepaid credits are only valid for a certain period resulting in wasted resources if not consumed.
Hidden costs - Carefully review pricing details and ask vendors about any potential hidden costs to avoid unexpected expenses. When offering a complex solution, vendors tend to break it into smaller packages or offer premium features that fall outside of the basic pricing. The hidden costs not initially disclosed often include setup fees, maintenance charges, or additional fees for premium features. The lack of transparency in pricing not only complicates the budgeting process but also introduces uncertainty regarding total expenses impacting the bottom line.
Minimum consumption required - Avoid vendors that impose minimum consumption requirements, which can lead to wasted resources. Choose a platform that offers flexible usage options tailored to your business's needs or pay-as-you-go models. It’s especially important for growing businesses with fluctuating usage patterns.
Is Dotfile a solution for you?
Dotfile is an end-to-end KYB platform built for compliance teams. It enables automating KYB and AML procedures, reducing fraud, and streamlining operations. With data on 400M+ businesses and 3000+ document types supported, expanding into a new market while complying with local regulations is a breeze. We help businesses automate finding key information, identifying important stakeholders to verify, sending questionnaires, running AML checks, and performing risk assessments - all from a single platform.
By automating data collection and verification processes businesses can provide a seamless and instant account opening boosting customer satisfaction. To reduce the risk of fraud, we provide a fully flexible risk assessment solution that automatically triggers enhanced due diligence steps for high-risk profiles. Businesses can also leverage monitoring capabilities to set up automated periodic AML checks, including sanctions, watchlists, or PEP screening. Our API-first approach is the most flexible and allows us to meet all of the business and compliance requirements. Book a demo to learn more about our solution and pricing model.
Conclusion
Selecting the right KYB platform is a critical decision for businesses operating in regulated industries. By prioritizing flexibility, transparency, regulatory compliance, vendor reputation, and scalability, you can choose a platform that meets your business needs effectively. Remember to conduct thorough research and evaluate your options carefully before making a decision. With the right KYB platform in place, you can streamline your compliance processes and focus on driving your business forward with confidence.
