Financial Evolution - Top B2B Fintech Companies in India

Did you know that 4 out of 5 organizations globally have reported fraud in the form of business identity theft? This statistic comes from the collective responses of 705 professionals across various industries such as banking and healthcare.

As India undergoes a digital transformation in its business ecosystem, Know Your Customer (KYC) and Know Your Business (KYB) play crucial roles in preventing fraud and other illicit activities that threaten the economy.

If you are a business owner looking to enter into partnerships or deals with other companies, KYB is the solution to address your suspicions on whether the company you’re about to go into business with is legitimate or not. Ready to know more about KYB? Let’s dive in!

What is Know Your Business (KYB)?

Know Your Business (KYB) refers to the process of conducting a due diligence review of a business that a company is dealing with. Unlike how KYC (Know Your Customer) deals with the verification of individual customer identity, KYB is exclusive to businesses to verify their authenticity before onboarding them into potential dealings or partnerships.

The primary objective of KYB is to ensure that the entities in question are not involved in any fraudulent activities such as money laundering, corruption, or terrorist financing and they are screened against blacklists and sanction lists accordingly.

Know Your Business verifications are also mandated to be followed in compliance with national AML (Anti-Money Laundering) guidelines where due diligence is conducted to verify the legitimacy of business partners.

Who Needs KYB?

The KYB process is typically required by law for businesses involved in financial transactions or regulated industries. Here are a few examples of entities that might need KYB:

1. Financial Institutions: Banks, credit unions, and other financial bodies need to verify their identities with corporate clients to comply with AML regulations.
2. Payment Service Providers: Companies that offer e-wallets and payment gateways need to carry out KYB checks to ensure the legitimacy of businesses using their platforms.
3. Cryptocurrency Exchanges: Crypto exchanges must conduct KYB checks to prevent any illicit activities that take place when buying, selling, or trading cryptocurrencies and other digital assets.
4. Insurance Companies: Insurers are required to conduct a thorough business verification process to verify the identities of businesses when issuing policies or handling claims.

Differences Between KYB & KYC

The table below highlights the key differences between KYB and KYC.

Why is KYB Verification Important?

The global KYB market is projected to reach a valuation of about $712.87 million by 2023 from $263.54 million in 2022, reflecting a 13.28% CAGR. This market is rapidly growing, especially considering how common fraud has become. 

With that being said, here are some of the reasons why KYB is important for your business:

1. Prevents Fraud: KYB can help keep your business away from fictitious or illegal entities. By verifying the identity and authenticity of the company and its owners, you ensure you’re entering into a commercial relationship that is legal and legitimate. 
2. Ensures Compliance: In many countries, KYB is a legal requirement mandated by anti-money laundering norms. These regulations ensure KYB compliance by preventing illegal activities such as corruption, trafficking, money laundering, and terrorist financing.
3. Builds Trust: Following proper KYB procedures maximizes trust in business relationships. Verifying the identity of a partnering company and its owners is pivotal to boosting confidence and trust. With increased trust comes more transparency and integrity in relationships.
4. Protects Reputation: Entering into business with illegal or fictitious companies can severely damage your company’s reputation and finances. Hence, KYB can indirectly preserve your goodwill as it protects your business from dealing with fraudulent companies.

What is a KYB Solution?

A Know Your Business (KYB) solution is a software tool that is used to verify the identities of a business and its owner and assess the risks they may present to the company. However, business verification is not the only function of KYB solutions as now companies are looking to streamline the verification and onboarding processes through automation.

Hence, a KYB solution not only aims to ensure compliance with regulations in the verification process but also aims to remove the manual burdens involved in KYB.

Requirements for KYB Compliance

When establishing a relationship with a corporate customer, regulated companies must conduct due diligence procedures in accordance with AML regulations. Here are the requirements:

1. Company Information: Information includes Name, registered number, registered office, board of directors, senior management, legal and beneficial owners, description of the company’s activities, etc.
2. Company Documents: Documents include articles of association, proof of legal existence, proof of registered and physical address, documents detailing beneficial ownership structure, and audited financial statements.
3. Identities of Beneficiaries: Documents include proof of identity, proof of address, declaration of trust, etc.
4. Geographical Considerations: Checking the company’s compliance with local regulations and cross-border operations.
5. Industry-specific Requirements: Includes regulatory filings , professional licenses of key personnel
6. AML Screening: Involves performing a risk assessment of corporate customers and conducting ongoing monitoring of business relationships.

7 Steps for an Effective KYB Verification Check

Here are the seven steps companies can take to perform an effective Know Your Business verification:

Step 1: Collecting Business Information

Businesses start by collecting details such as company name, registration number, tax identification number, and address.

Once collected, they can use an API webhook to generate a KYB case from within their internal systems. The information collected is saved in their internal systems, making it easier for compliance teams to begin verification processes.

Step 2: Auto-verifying Registry Data Against Business Information

At this stage, compliance teams confirm if the collected information matches with the register by auto-validating the information obtained. They can cross-check with official government databases as well to confirm the company’s legitimacy.

Step 3: Assessing the Accuracy of Registry Information

Compliance teams manually add additional information regarding beneficial ownership obtained during the verification process and generate a comprehensive summary of the case. This promotes transparency and prevents hidden ownership risks.

Step 4: Getting Dynamic Risk Scores for the Company

KYB systems can offer real-time updates on changes in the risk profile of the corporate customer.

Once it receives an update, it alerts compliance teams to conduct an evaluation. The risk scores can also be used to further automate due diligence throughout the onboarding process thereafter.

Step 5: Conducting Sanctions and Watchlist Screening

Compliance teams screen the business and its owners against global sanction lists, criminal watchlists, and politically exposed persons (PEP) to ensure they aren’t involved in any criminal activities.

Step 6: Make the Decision on Whether to Onboard or Reject

Here, the final decision takes place where the business decides whether to onboard or reject based on the risk levels. 

Step 7: Perform Ongoing Monitoring

One thing to remember is that KYB is not a one-time process. Once the corporate customer is onboarded, they are subject to ongoing monitoring, which includes frequent reviews and monitoring of any changes in ownership, structure, or financial status that could impact their risk profile. 

The Importance of Automated KYB Verification Checks

Regulated companies are mandated to follow a robust KYB process that ensures compliance and risk management. However, traditional KYB methods can be cumbersome and time-consuming, with verification and onboarding taking days or weeks to complete. This can hamper customer experiences and even slow down business growth.

Automated KYB solutions help here by transforming the onboarding process, which is beneficial for businesses and compliance teams alike.

These solutions play the following roles:

Improving Accuracy and Reducing Human Error

Manual KYC checks are susceptible to human errors due to the risk of overlooking some key information that is important to assess a business’s risk profile.

And in AML compliance, such risks can have costly consequences such as compliance breaches, fines, and reputational damage.

Automated KYB systems have the ability to consolidate and cross-check information from multiple sources, ensuring ease of access and accuracy for your compliance teams.

Enhancing the Speed of KYB Verifications

Traditional KYB methods require manual verification of business information, which is time-consuming and can take days and even weeks. However, automated KYC solutions have the power to speed up the verification and onboarding of new businesses.

Such speed not only gives your clients a strong start but can also help you generate revenue more quickly and maintain a long-term business relationship.

Compliance teams also save plenty of time and can focus on other high-value tasks that need their attention.

Real-time Monitoring and Updates

Risk profiles of companies can change over time, potentially increasing non-compliance risks and threats of financial crime. This is where automated KYB solutions come in to conduct real-time monitoring of your clients to ensure they are complying with AML regulations. 

The solutions ensure that business information and risk profiles of your clients are accurate and thoroughly updated.

Through real-time monitoring, compliance leaders can also swiftly react to sudden or short-term changes in a business’ status or risk profile such as global sanctions, negative press, political exposure, etc. 

Get Started on Know Your Business (KYB) with Neokred

With frauds becoming more prevalent, mastering the concepts and processes involved in KYB is no longer an option—but a necessity. KYB is not just a regulatory requirement, but also a vital tool that protects yourself and your business from non-compliance risks and frauds.

If you’re wondering how you can streamline business identity verification and make it more simple, look no further. Neokred specializes in KYB and KYC. As your trusted partner, we ensure you stay ahead of regulatory norms while minimizing risk and maximizing growth. If you’d like to know more about our platform’s capabilities and services, contact us today!

Credit, especially in the financial sector, is a high-stakes game where even one misstep can lead to serious consequences for companies and institutions, potentially impacting entire economies.

So, how do we navigate this minefield without putting the system at risk? The answer lies in credit risk analysis—a careful examination of the return on investment (ROI) and potential default risks every time credit is granted. However, this process has become far more detailed. With FinTech disruptors continuously shifting the market, economic volatility becoming the norm, and regulatory scrutiny tightening amid rising fraud and financial crimes, credit risk analysis has become more complex.

For example, the rate of delinquencies—where borrowers fail to make timely loan payments—has been increasing. Commercial real estate loans saw delinquencies reach 0.22% by the end of 2023, while commercial mortgage-backed securities experienced a steeper climb to 4.7% in early 2024. These trends show how rising interest rates and economic instability have made credit risk analysis increasingly challenging.

Today, the best approach combines time-tested methodologies with cutting-edge technology to analyze credit risks more effectively. This guide will help you learn how to do that, deepen your understanding of credit problems and risk management, and upgrade your existing analysis process. But first, let’s cover the basics.

What is Credit Risk?

Credit risk refers to the possibility that a borrower or counterparty will fail to fulfill their financial obligations according to the agreed terms. This could be in the form of missed loan payments, defaults, or even bankruptcy.

For lenders, such as banks or investment firms, credit risk directly impacts profitability and financial health. For businesses, it can affect cash flow, operational stability, and long-term growth.

What is Credit Risk Analysis?

Credit risk analysis involves evaluating the likelihood of a borrower defaulting on their financial obligations. This comprehensive assessment examines a potential borrower's creditworthiness, financial history, and capacity to repay. 

The analysis helps lenders and businesses make informed decisions about extending credit, determining loan amounts and establishing terms.

The process typically involves:

• Gathering financial information on the borrower
• Analyzing their credit history and current financial status
• Assessing external factors that might affect their ability to repay
• Quantifying potential risks using various models and metrics
• Making a decision based on the risk assessment and the lender's risk tolerance

Who Needs to do a Credit Risk Analysis?

Credit risk analysis is crucial for a wide range of entities, including:

• Banks and financial institutions
• Credit card companies
• Mortgage lenders
• B2B companies offering trade credit
• Investors in bonds or other debt instruments
• Insurance companies
• FinTech companies offering loans or credit products

Even small businesses that offer payment terms to customers must perform some level of credit risk analysis to protect their cash flow and financial health.

Why is Credit Risk Analysis Critical?

In an era of economic uncertainty and rapidly changing market conditions, credit risk analysis has become more important than ever. Here's why:

• Financial Stability: Effective credit risk analysis helps maintain the financial stability of lending institutions and businesses by minimizing potential losses from defaults.
• Regulatory Compliance: Many industries, especially banking and financial services, are subject to strict regulations regarding risk management. Proper credit risk analysis is often a regulatory requirement.
• Informed Decision Making: It provides a basis for making informed decisions about lending, pricing, and credit terms.
• Resource Allocation: By identifying high-risk and low-risk borrowers, companies can allocate their resources more efficiently.
• Competitive Advantage: Better risk assessment allows companies to offer more competitive terms to low-risk customers while appropriately pricing higher-risk loans.

What is the Purpose of Credit Risk Analysis?

The main goal of credit risk analysis is to strike a balance between risk and reward. It aims to:

• Minimize Potential Losses: By identifying high-risk borrowers, lenders can avoid or mitigate potential losses.
• Optimize Pricing: Risk-based pricing ensures that the interest rates or terms offered reflect the level of risk associated with each borrower.
• Improve Portfolio Management: For institutions managing large loan portfolios, credit risk analysis helps maintain a balanced and diversified portfolio.
• Enhance Strategic Decision Making: It provides insights that can inform broader business strategies, such as which market segments to focus on or which products to develop.
• Build Trust and Reputation: Robust risk management practices can enhance a company's reputation among investors, regulators, and customers.

Credit Problems and Risk Management

Credit risk management goes beyond individual borrower assessment. It involves managing risks at a portfolio level and addressing systemic issues. The Bank for International Settlements (BIS) has identified three key areas of focus:

1. Concentration Risk:

‍This isn't just about the largest borrowers, but about exposures where expected losses could significantly deplete capital. For example, in trade credit, offering the same terms to a startup and a public company represents different levels of concentration risk.

2. Credit Processes:

‍These encompass the steps taken to assess, measure, and conduct credit risk analyses. Errors in these processes can lead to significant credit problems, such as:

• Using unvalidated value-at-risk (VaR) models.
• Making inconsistent or non-replicable decisions.
• Poor monitoring of collateral and fraud risks.
• Mispricing of non-financial collateral.

3. Market and Liquidity-Sensitive Exposures:

‍This includes risks from foreign exchange, financial derivatives, and contingent liabilities. It's crucial to distinguish between a borrower's willingness and ability to pay, especially when dealing with illiquid collateral or volatile markets.

How to Analyze Credit Risk: A 5-step Guide

Step 1: Gather Comprehensive Information

Begin by gathering key financial documents such as balance sheets, income statements, and cash flow reports to assess the borrower's financial health. Additionally, review their credit scores, bank statements, tax returns, and, in the case of businesses, their business plans.

Analyze market trends to gain broader context about the borrower’s industry.

Step 2: Assess the Five C's of Credit

Evaluate the borrower’s character (credit history and reputation), capacity (income, cash flow, existing debt), capital (financial strength), collateral (assets to secure the loan), and conditions (loan purpose and external market factors).

Step 3: Utilize Quantitative Models

Use credit scoring models and advanced tools like Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD) to assess risk. These models provide a numerical estimate of potential losses, with Expected Loss (EL) calculated using the formula: EL = PD x LGD x EAD.

Step 4: Perform Qualitative Analysis

Beyond the numbers, assess the borrower’s management team, experience, and strategic decisions. Consider broader economic factors like regulatory changes and industry trends that could influence the borrower’s financial stability.

Step 5: Conduct Stress Testing and Scenario Analysis

Simulate various economic conditions, such as recessions or market shocks, to test the borrower’s resilience. This helps determine how well they can continue to meet repayment obligations under unfavorable conditions and protects the overall loan portfolio from unexpected risks.

3 Ways to Upgrade Your Credit Risk Analysis Process

1. Refine Credit Scoring Techniques

To enhance credit scoring, move beyond traditional methods by incorporating real-time financial activities and cash flow status.

Consider external factors like economic stability and industry trends, while implementing market and performance trend analysis for a more comprehensive assessment.

2. Incorporate Trend Analysis

Analyze the client's business performance over-time and monitor relevant market environment trends.

Track national and global economic trends affecting the client's industry, and keep a close eye on changes in their debt-to-income ratio to gain deeper insights into their financial health.

3. Embrace New Technology and Tools

In a 2024 McKinsey survey of senior credit risk executives from 24 financial institutions revealed that 20% have implemented at least one generative artificial intelligence (AI) tool in their processes, with another 60% planning to do so within the year.

These tools, especially AI and machine learning, offer enhanced credit risk modeling and continuous monitoring of customer financial health.

The Fault(s) in the Current Credit Risk Assessment Systems

Current credit risk assessment models are failing to keep pace with the rapidly changing financial market. Traditional models, once reliable, now struggle to capture the complexities of modern economies and innovative business structures. This gap between risk assessment capabilities and real-world dynamics exposes lenders to unforeseen vulnerabilities.

As financial institutions grapple with these challenges, the need for a fundamental overhaul of risk assessment methodologies becomes increasingly urgent.

• Over-reliance on Historical Data: Traditional models often rely heavily on historical data, which may not accurately predict future performance, especially in rapidly changing economic conditions.
• Limited Scope of Traditional Credit Scores: While useful, credit scores don't capture the full financial picture of an individual or business.
• Difficulty in Assessing New Business Models: Emerging industries and innovative business models often lack historical data, making risk assessment challenging.
• Inadequate Consideration of Macroeconomic Factors: Many risk assessment systems fail to adequately account for broader economic trends that can impact creditworthiness.
• Bias in Algorithmic Decision-Making: AI and machine learning models can inadvertently perpetuate or even exacerbate existing biases in lending practices.
• Data Quality and Consistency Issues: Inaccurate or inconsistent data can lead to flawed risk assessments.
• Lack of Real-time Updates: Many systems don't incorporate real-time financial data, leading to outdated risk profiles.

How Neokred Fills Loopholes for Accurate Credit Risk Analysis

Neokred’s mission is to address the critical gaps in traditional credit risk assessment, enhancing accuracy and fairness. By integrating diverse data sources, including alternative and real-time data, it creates a more comprehensive borrower profile.

Neokred's real-time monitoring ensures risk profiles stay current, while customizable models adapt to specific business needs. By incorporating alternative data and focusing on bias mitigation, we extend reliable risk assessment to underserved markets. This innovative approach leads to more informed lending decisions and healthier loan portfolios.

Upgrading your current credit risk analysis process is a crucial step towards ensuring your institution or business’s long-term financial stability and success, and partnering with Neokred will give you that much-needed edge needed to thrive in the current era. Talk to our sales team today.

Over $3.1 trillion in illicit money flowed through the global financial system in 2023, nearly equivalent to the market cap of Amazon and Meta combined, quite close to the nominal GDP of India (USD 3.5 trillion). Such staggering sums severely threaten the integrity and stability of our global financial system.

Financial crime doesn’t discriminate. However, fintech companies face an exceptionally high risk of being exploited. Their innovative services, which provide quick access to credit and streamlined account opening processes, can inadvertently create vulnerabilities in the system.

Regulators have developed a comprehensive set of laws called Anti-Money Laundering (AML) to combat this threat. Continue reading to understand how AML approaches money laundering and helps to maintain the trust and stability that underpin the global economy.

Understanding Money Laundering

To understand the ins and outs of AML, we first need to understand what money laundering is and how it works. 

Money laundering is the process of disguising the source of illegally gained money (such as terrorist funding or drug trafficking) so it appears to have come from a legal source. It can have far-reaching economic, social, and security-related consequences globally. 

The process essentially ‘launders’ this ‘dirty’ money ‘clean’, so it can be injected into the legal financial system. 

Stages of money laundering

Money laundering typically occurs in three stages: 

1. Placement

It involves introducing illicit funds into the legitimate financial system. Some standard methods of placement are:

• Smurfing (making multiple deposits below the AML reporting threshold)
• Commingling (blending dirty money with legit business revenues)
• Making payments to cash-based businesses like casinos to disguise the origin
• Paying off legitimate debt

2. Layering

Now these funds undergo a series of complex transactions so they’re buried within the financial system to disguise the owners’ identity. This process is called layering and it creates a convoluted audit trail. 

For example, the funds may be wired from a US account to a shell company in the Cayman Islands, converted to bonds, sold, and transferred to a Swiss bank account within a short timeframe.

3. Integration

This involves reintroducing the now laundered money into the legit economy. The money is withdrawn and integrated into the economy. This is often done through:

• Real estate investments
• Acquiring luxury assets
• Securities trading

The global financial system has developed a coordinated approach in response to this growing threat — anti-money laundering. 

Anti-Money Laundering Explained

Anti-money laundering is a comprehensive framework of policies, laws, and regulations designed to detect, prevent, and report money laundering. It addresses a wide variety of crimes, such as corruption, market manipulation, tax fraud, terrorism financing, and drug/human trafficking.

Anti-money laundering acts are created by global and local regulators and applied to financial institutions (FIs) and other regulated entities, such as:

• Banks and credit unions
• Insurance companies
• Asset reconstruction companies
• Gaming businesses and casinos

Different countries have different acts that FIs must adhere to. 

India’s Key AML Acts 

Prevention of Money Laundering Act (PMLA) is a critical anti-money laundering act in India, enacted in 2002 and subsequently amended multiple times, the latest being in 2023. 

PMLA is enforced by the Enforcement Directorate (ED) under the Ministry of Finance. It works with the Financial Intelligence Unit-India (FIU-IND) to combat money laundering and terrorist financing, with the latter providing financial intelligence to the former.

India is also a member of the Financial Action Task Force (FATF) — a global organization with the aim “to develop policies to combat money laundering and to maintain certain interests.” It sets standards and promotes effective implementation of the AML. At the time of its formation, it had 16 members, though the number was 40 in 2023.

The Foreign Exchange Management Act (FEMA) was enacted to prevent money laundering through cross-border transactions. While its primary purpose is to regulate forex transactions, it limits the amount of foreign currency that can be taken out of or brought into India. Plus, it gives authorities the power to examine and investigate suspicious foreign exchange transactions.

A Brief History of PMLA

A brief history of India’s PMLA is shown in the following image:

Link to the infographic

The Importance of AML for FIs

In the wake of the 2008 financial crisis and the rise of financial crimes, regulators have tightened oversight on traditional FIs and fintechs. The fintech sector, in particular, faces increased scrutiny due to its rapid growth and innovative business models. 

For instance, India’s fintech market alone is projected to reach $1.5 trillion by 2025. While this growth is driven by cutting-edge technologies, it also introduces new vulnerabilities that criminals may exploit. AML compliance is, therefore, substantial in:

• Combating financial crime: The UN Office on Drugs and Crime estimates that 2–5% of global GDP or $800 billion–$2 trillion is laundered annually. AML measures help detect various forms of financial crimes.
• Maintaining the integrity of the system: AML restricts bad actors’ access to financial resources, thus contributing to the overall stability and trustworthiness of the global financial system.
• Risk Management: Effective AML programs help institutions identify and mitigate risks associated with their products, services, and customer base.

Consequences of Non-Compliance for FIs

The stakes are high — over $485 billion were lost to fraud scams and bank fraud schemes in 2023 despite the current AML measures. Unsurprisingly, if the FIs and fintech don’t comply with the AML, regulators can impose sanctions and disciplinary actions:

AML Compliance Framework

To comply with the Anti-money Laundering Act, FIs need to register as reporting entities with FIU-IND and follow a set of requirements that form the foundation of an effective AML program: 

• Create internal policies to detect and prevent laundering and signed by the board
• Appoint a compliance officer to ensure compliance
• Train the employees in AML compliance
• Have an independent review done by a third party
• Do customer due diligence to assess the risk of doing business with them

AML Solutions and Best Practices

In general, fintech and FIs are expected to take the following steps to ensure compliance with the anti-money laundering act: 

Know Your Customer (KYC)

It’s the process of verifying the identity of a client:

• Collect and verify documents such as Aadhaar card, passport, proof of address
• Regularly update the KYC information 
• Categorise customers based on risk and apply enhanced due diligence (EDD) for high-risk customers

The goal is to ensure customers are who they claim to be and to assess potential risks of illegal intentions. It also allows FIs to trace each transaction to an organization. 

Customer Due diligence (CDD)

CDD is a more comprehensive process that includes KYC but goes beyond it. It involves assessing the risk profile of the customers based on their background, financial status, and the nature of their transactions:

• Verify the identity of customers
• Identify and verify the beneficial owners of legal entity customers
• Understand the nature and purpose of customer relationships to develop a risk profile

It also includes ongoing monitoring of customer transactions to detect and report suspicious activities. If any unusual patterns or high-risk indicators are identified during this process, it may trigger the need for EDD. It involves more rigorous checks like:

• Obtaining additional information about the customer and business
• More frequent updates of customer information
• Closer scrutiny of the customer’s transactions
• Obtaining senior management approval to establish or continue the business relationship

Proper Reporting and Transaction monitoring

To the FIU, FIs must report suspicious transactions—Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs). 

Transaction monitoring systems detect unusual or suspicious transactions. They analyze transactions in real-time or batch mode to identify patterns that may indicate laundering. Compliance officers review the alerts generated by these systems. Report transactions above Rs 1 million to the FIU.

Wallet Screening

For cryptocurrency FIs, wallet screening involves verifying the source and destination of crypto transitions to ensure they aren’t linked to illicit activities. Wallets are screened against known blacklist wallets to identify high-risk transactions. 

Use Case: Data-Driven Decision Making in AML

Data-driven decision-making can help FIs bolster their AML capabilities. By leveraging advanced analytics and comprehensive data aggregation capabilities using services like Neokred’s ProfileX, you can transform your AML efforts. Here’s how: 

• Data aggregation: ProfileX aggregates transactional and non-transaction data from multiple sources, giving you a holistic view of customer behavior to help detect patterns indicative of money laundering. 
• Risk-based assessments: Using advanced analytics, ProfileX can conduct risk assessments based on alternative data, such as behavioral insights. This enhances the accuracy of identifying high-risk customers. 
• Real-time monitoring: ProfileX monitors customers’ transactions in real-time, allowing you to identify and respond to suspicious activities promptly. 

Anti-Money Laundering and Neokred

AML compliance protects FIs and fintechs from reputational damages and regulatory penalties while fostering a secure financial system. However, while AML measures are necessary, traditional KYC processes can be cumbersome, leading to a poor user experience. 

Neokred’s ProfileX addresses this challenge head-on, offering a streamlined approach to onboarding, KYC, and CDD using a name and mobile number. Then, it captures quality information from the documents and aggregates it in real-time to complete user profiles. It also offers insights into customers’ behavior, preferences, and creditworthiness to help detect potential fraud early on. API integration also minimizes disruption to existing operations. 

Moreover, ProfileX is designed with regulatory compliance at its core, adhering to banking and data protection regulations. To explore how Neokred can improve your AML compliance and streamline customer onboarding, contact us here.