iDenfy, a prominent provider of identity verification and compliance solutions, has introduced a new feature to its Business Verification platform called Dynamic KYB Workflow.
This enhancement aims to streamline the Know Your Business (KYB) process by automatically guiding company representatives through the most relevant onboarding workflow.
The initiative is designed to improve efficiency in the KYB onboarding process across various sectors, such as banking, fintech, and crypto.
Compliance challenges in modern financial environments
Compliance teams in industries like banking and cryptocurrency face increasing demands to navigate complex corporate structures in real time. Unlike Know Your Customer (KYC) protocols, which focus on individual client checks, KYB requires comprehensive background checks on entire companies, including directors and shareholders, to avoid risky partnerships.
As iDenfy points out, the rise of AI and related technologies has heightened security risks, emphasizing the need for robust solutions.
Automated solutions for enhanced risk management
iDenfy reports that KYB verification processes see significantly higher drop-off rates than KYCTraditional onboarding methods, which typically involve manual document collection, are becoming obsolete in the face of modern risk management requirements. iDenfy reports that KYB verification processes see significantly higher drop-off rates than KYC, underscoring the need for dynamic entity verification.
This approach shifts from manual processes to automated workflows that leverage live data to verify business entities effectively.
Innovative KYB workflow builder
The newly launched questionnaire-based KYB Workflow builder by iDenfy allows for greater flexibility and automation. This tool scores responses based on user interactions, directing applicants through tailored verification processes depending on their risk profiles.
Companies can now efficiently screen high-risk entities by establishing rules to flag or block them early in the onboarding process, reducing exposure to potential threats.
Comprehensive scoring system
iDenfy's updated platform features a scoring logic paired with instant triggers. Factors like an applicant's country of operation are accounted for, with customised workflows activated based on risk levels.
Responses indicating higher risk automatically route applicants through more thorough checks, while lower-risk profiles enjoy expedited processing. Furthermore, the system can block users from high-risk or sanctioned regions automatically.
Streamlined Application Termination
iDenfy's platform supports detailed customisation, offering company data and representative fieldsAutomated actions within the platform allow for immediate termination of applications meeting pre-defined rejection criteria. This functionality helps compliance teams address common risk flags, such as complex ownership structures potentially linked to fraud.
All related automation ceases upon application blocking, allowing partners to adjust workflows as regulatory or business requirements evolve.
Extensive customisation options
iDenfy's platform supports detailed customisation, offering 14 company data fields and 17 representative fields to capture intricate corporate and individual information. Businesses can access real-time data from over 180 company registries across more than 120 countries, ensuring the accuracy of verified information.
This comprehensive data integration facilitates thorough KYB processes by retrieving official data swiftly and accurately.
Facilitating diverse onboarding needs
"Using our Workflow builder, you can onboard different customers, whether it's a freelance client or a big corporation. The 'dynamic' part of our KYB solution allows you to adapt and trigger different corporate client onboarding flows based on your setup that you can manage without coding or any complexity of that sort," said Domantas Ciulde, the CEO of iDenfy.
iDenfy, a global provider of identity verification, fraud prevention, and various compliance-focused solutions, has launched a major update to its Know Your Business (KYB), or Business Verification, platform by introducing a Dynamic KYB Workflow feature.
This new functionality will help companies automatically direct other company representatives who need to complete the onboarding into the most suitable KYB workflow based on their responses, and in this way, help businesses scale the KYB onboarding process effectively.
Complaince teams
Compliance teams, specifically in banking, fintech, and crypto industries, no longer just check boxes. They are under immense pressure to map complex corporate structures in real-time. Unlike Know Your Customer (KYC) verification, where you need to conduct due diligence checks on individual clients, KYB focuses on more complex background checks on the whole company, including its directors, shareholders, and other linked individuals, to avoid partnering with sanctioned entities and those that do not align with the company’s internal risk appetite.
AI, pro or con
According to iDenfy, due to the rise of AI and other related technologies, the risk of implementing a solution that can be breached is getting higher. “User experience is being taken to the top of the list, but security issues remain a challenge,” explained Domantas Ciulde, the CEO of iDenfy. “We wanted to create a solution that would cater to KYB processes, in this case, automate Business Verification workflows that are far more complex than standard KYC checks,” added Ciulde.
Dynamic entity verification
Traditional, static onboarding, where you simply request documents and wait, is failing to keep pace with modern risk management tools. Compared to individual customer drop-offs for KYC onboarding, KYB verification drop-offs are higher at least 15%, iDenfy claims.
Therefore, to prevent financial crime effectively, the focus must shift from basic document collection to dynamic entity verification, moving away from manual, rigid processes and toward automated workflows that pull live data to verify business entities and their owners.
Questionnaire-based KYB
As a result, iDenfy has introduced a flexible questionnaire-based Know Your Business verification Dynamic Workflow builder that assigns scores on user-triggered responses. Based on predefined score ranges and conditions, end-users or company representatives fill out the documentation or complete the AI-powered, customisable questionnaires.
Currently, compliance officers working with iDenfy’s KYB platform can use the new Dynamic Workflow feature to set up a simpler process for the client, meaning the client will receive only the required fields and document requests based on their onboarding profile and collected data. This way, the risk of getting back-and-forth with a client will be minimised, as the analysts will be able to set up different KYB processes as they like, putting in the missing elements into the workflow with zero coding.
Automation features
iDenfy’s Workflow feature offers advanced automation capabilities, and companies can now configure rules to either flag or block applications based on specific criteria. This upgrade helps to prevent high-risk entities from progressing further in the onboarding process, in this way reducing handling time and minimizing exposure to high-risk applicants who do not meet the organisation’s requirements.
The new feature is based on a scoring logic and an instant trigger setup. The “Country select” functionality now includes grouping and weighting logic based on their severity and impact, with a dedicated scoring number and trigger configurations based on an applicant’s country of operation.
These functions enable organisations to define how different answers impact the business owner onboarding journey. For example, higher-risk responses according to the set goals can automatically direct applicants into more comprehensive verification flows, while lower-risk profiles can proceed through simplified checks. In addition, the Dynamic KYB Workflow builder also works as an automatic blocking system that can identify and block users from high-risk jurisdictions or sanctioned countries. There’s now a “Decline session” action trigger, which enables organisations to automatically reject users based on their selected responses during the onboarding process.
Application termination
Rather than requiring a manual analyst review for predictable rejection criteria, this automated action allows compliance teams to define the exact conditions under which an application should be terminated immediately. The same principle works for other pre-defined custom factors linked to common risk flags, such as layered ownership structures, which are known to have potential ties to money laundering and fraud.
If an application is blocked, all other automations are stopped immediately. Further, partners can now easily manage, edit, duplicate, name, or remove workflows using iDenfy’s Business Verification dashboard. This ability to flexibly use the KYB interface allows users to adapt KYB processes as regulatory requirements or business needs change over time. This is a particularly important step for industries that are exposed to evolving risks, where changes in ownership or financial activity may indicate potential fraud.
Customisation fields
The platform also supports extensive customisation, with 14 company data fields and 17 representative fields available to collect detailed information about corporate structures and key individuals. Businesses can request additional documentation, gather financial data, and apply KYC and AML measures to verify ultimate beneficial owners as part of the KYB process.
The solution connects to more than 180 company registries across over 120 countries, which provide quick access to official, real-time data from official governmental and credit bureau databases, allowing businesses to verify company details with the most accurate and reliable data using a single platform.
Onboarding customers
“Using our Workflow builder, you can onboard different customers, whether it’s a freelance client or a big corporation. The “dynamic” part of our KYB solution allows you to adapt and trigger different corporate client onboarding flows based on your setup that you can manage without coding or any complexity of that sort,” said Domantas Ciulde, the CEO of iDenfy.
