Undoubtedly customer verification plays a crucial role in ongoing-customer monitoring but what about the third parties that businesses have to deal with? With the evident technological advancements in financial infrastructure, the number of blacklists and issues of data breaches is evolving rapidly with every passing day. Money laundering costs 3 to 5%of the global GDP that roughly accounts for $2 trillion. Also according to the study, there were up to 1506 data breaches and exposed records that were reported in 2020.
To counter all of these business issues, there exist such products providing beneficial services i.e. Know Your Business (KYB) that are acquired by a wide range of organizations to tackle fraudulent activities. Let’s have a deep dive into 5 major reasons why you should know your business.
1. Significant Know Your Business Checks
Businesses based on financial infrastructure verify the customers by performing real-time business bank verification checks to reduce fraud and minimize payment errors. Usually Know Your Business (KYB) checks are performed with a high rate of accuracy and efficiency to simplify traditional, tedious, and complex verification processes to verify the company. Know your business checks involves the following:
– Instant Transaction Verification
Instantly verifies the account information which was used to perform transactions to deter fraud.
– Delivery of Payments
It is ensured that payments are received by those who were supposed to receive them by confirming the validity of sender and receiver before and after transactions.
– Customer Due Diligence
Enhanced customer experience is guaranteed by establishing trustworthy business to business(B2B) and business to customer (B2C) relationships.
2. Secure B2B Relationships
Mutual understanding and seamless experience are crucial when it comes to business associations. Business partners can’t access each other by any means. There is a constant need to develop reliability between both entities and this is possible by incorporating Know your businesses (KYB) solutions. KYB compliance is a reliable means of building a secure communication channel between customers and businesses. Lengthy business verification operations to verify the company is eased with the help of KYB. Even security is also significant along with trust and reliability while developing business relationships. Also, regulatory technology has a significant impact on business verification processes.
3. Cost-Effective Operations
In this rapidly evolving era of digitization, businesses are prone to automation to increase business productivity and decrease human resource expenses. The fact that incorporation of AI-based machines and robots in business verification services is less prone to error and more accurate and efficient as compared to manual work. A substantial rate of operational activities is as important as security. Unexpected process delays and errors increase the risk of valuable capital contributions. That’s why Know Your Business (KYB) services are adopted by numerous organizations for better engagement and seamless partnership experience.
4. Business Protection
Rapid growth can be the reason for numerous problems for businesses. Businesses should invest to protect themselves by adopting KYB services and insurance. The most common business insurance are as follow:
– General Liability
It involves verification of the company and protection of businesses from high charges, fees, and monetary losses caused by inherent risks that usually happens during normal business operations.
– Commercial Property Insurance
Compensates the business’s stuff such as business inventory, business building, business equipment, and even customer’s personal property in case of damage caused for numerous reasons.
– Commercial Automobile Insurance
It involves the protection of vehicles used for business transportations against liability and property damage.
– Workers Compensation
It involves a contract between an insurance company and business, where the insurer will pay for the employee’s lost wages, medical costs, death benefits, or permanent disability that occurs from workplace illness or injury.
– Professional Liability Insurance
It helps to protect you financially from lawsuits and legal claims all the way up to selected policy limits.
Know Your Business to Grow Your Business
Successful and rapid growth doesn’t come from playing safe. Keeping in view increasing customer needs and high competition in the market, businesses are acquiring such products that provide accurate and efficient KYB solutions. Humans are always prone to make some errors. To solve this issue, KYB customer service develops trustworthy Business to Business (B2B) and Customer to Business (C2B) relationships are one-stop solutions to combat chargebacks and fraudulent activities. In short, Know Your Business (KYB) is an effective means to protect your business, general liability, and ensure potential growth by verifying businesses against sanction lists.
For businesses, it is mandatory to ensure the incorporation of Know your Business services for developing trustworthy B2B and C2B relationships to deter fraud.