Commercial identity platform Niva has launched after raising $3.3 million for its verification solution, according to a press release on Monday (July 8).
Verifying the identity of small and medium-sized enterprises (SMEs) by scanning for fraud and meeting local and international Know Your Business (KYB) requirements is a major source of friction, the statement said.
“The current process is almost entirely manual, imperfect and varies considerably by country, often requiring weeks of email exchanges between Niva customers and the SMEs that want to use their products,” the statement said.
The company says it is addressing the growing need for a next-generation platform for companies trying to do business within these constraints.
Enterprises can use Niva’s compliance and fraud AI agents to reduce onboarding cycles from weeks to less than 10 minutes, according to the release, improving application conversion rates by delivering a better onboarding experience and removing the need to train operations teams in multiple languages, regional laws and fraud tactics.
“Streamlining KYB has always been at the core of our business,” Sebastian Kreis, CEO and founder of Latin American B2B FinTech Xepelin, said in the release. “In just a few months, Niva’s AI has been able to accelerate our integration to the next level. It’s clear that the team has deep experience in the field and we are excited to continue this partnership.”
PYMNTS examined the importance of KYB in a report last month, noting that it is a process that can involve collecting and analyzing vast amounts of data, including company registration details, financial records, ownership structures and regulatory compliance.
As Scott Steinberg, then COO of Enigma Technologies, told PYMNTS, there has been an evolution in KYB tactics, as well as an increased urgency to use technology to address “best practices” and adhere to existing and new laws.
While KYB was once “an informal ‘sister’ or ‘brother’ to know-your-customer (KYC) initiatives,” “KYB has become much more important,” he said.
“If that customer has to go through a lot of friction to get through your KYB checks [however]”There will be a drop in the number of applications,” he added. “There will be a drop in the number of registrations.”
The report also notes that observers believe artificial intelligence (AI) is poised to revolutionize KYB and B2B onboarding processes, providing organizations with automation, accuracy and insight into the identity of the companies they work with.
“With B2B partnerships and online marketplaces driving growth across the landscape, business verification innovations and onboarding process improvements are becoming an increasingly critical piece of the business growth puzzle,” the report said.
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