Anyone feel like KYB onboarding is insane? (i will not promote)
Tried to open a bank account for our fintech company. Spent most of last week digging up the same four documents for the fifth time this year. Cert of incorporation, ownership breakdown, director IDs. Dragging files across folders, drives etc Different bank,…
Tried to open a bank account for our fintech company. Spent most of last week digging up the same four documents for the fifth time this year. Cert of incorporation, ownership breakdown, director IDs. Dragging files across folders, drives etc Different bank, same stack of paperwork I've already handed to three other institutions who all verified the exact same facts. Fuck. It's insane that this is the norm. Every bank, every fintech, every partner platform runs their own KYB from scratch. They all check the same government registry. They all confirm the same info, the same directors, the same UBOs. None of them trust each other's work, so the business re-proves itself from zero every single time. Weeks of back and forth, per relationship. Question for business owners: Is this a pain for you, or maybe I'm just stupid and have lost perspective.
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What are you trying to sell
Just ranting mostly
Yeah, why isn’t what you proposed the standard yet? I wonder why this isn’t available
It’s because the consequences for getting it wrong are too great: it’s not worth it to lose a license or get sanctioned over any one customer’s convenience. (This started around the end of Trump 1, and accelerated rapidly under Biden, and was part of the reasoning lots of VC leadership backed Trump 2; there is a political component here that extends well beyond fighting financial crime.)
A reusable evidence pack would cut the avoidable part: normalized filenames, a one-page index for owners and directors, and a dated change log. Each institution can still run its own checks, but you stop rebuilding the packet from scratch.
Usually companies keep these docs in a single location so you can quickly grab them whenever needed
This is the smallest of actual problems. Just have your shit together and its not difficult at all.
Sounds like you lack basic organization. What kind of company are you building
This is only a problem if you haven't mastered the concept of "desktop folders".
This sounds more like a slightly exaggerated story with random keywords linked to KYB compliance rather than a real-life example. Anyways, it depends on the company they're working with and the software they're using, since not every fintech has its own KYB onboarding solution or at least uses some sort of third-party tool (iDenfy, Sumsub, Middesk etc.) to automate access to registries or log comments for better reporting/auditing. There are proper systems that don't drag out the onboarding and send out ready-made questionnaires that make the KYB application process much easier from the end-user's side. However, it's true that KYB drop-offs or completion rates are poor compared to simple, quick individual client KYC onboarding where no extra doc collection or proof is required.