KYB for non-crypto fintech platforms: current friction points?

asked by u/renzhou · 15d · 5 answers

Running an FX payment provider and dealing with B2B onboarding, I'm constantly surprised by the variance in KYC/KYB requirements across different jurisdictions. Specifically for smaller businesses or those operating in niche markets, getting consistent and timely documentation can be a nightmare. We're seeing more automated solutions for the individual KYC side, but for Business KYC, it often feels like we're still stuck in the stone age with manual reviews and endless back-and-forths. What are others in the fintech space experiencing? Are there any platforms effectively streamlining the collection and verification of corporate documents and ultimate beneficial ownership (UBO) information without needing a dedicated legal team just to chase paperwork?

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Top answers

  • u/takin2359· 1 pts· 15d

    It's almost as if governments enjoy making things more complicated than they need to be, just to prove they can. 'Niche markets' sounds like a polite way of saying 'businesses that regulators haven't quite figured out how to fit into their pre-existing boxes yet, so they'll just demand everything but your firstborn child for now'.

  • u/priya28· 1 pts· 15d

    I completely agree; the fragmentation is a real challenge. Have you found that the 'niche market' aspect often triggers a higher level of scrutiny, even if the actual risk profile is low?

  • u/options_wheel_kat· 1 pts· 15d

    It's almost as if 'know your business' really means 'know your paperwork, then know their paperwork, then know the paperwork that proves you know all the other paperwork'. It's a full-time job for some of these compliance teams just chasing down signatures from people who probably just want to send some money.

  • u/fatima98· 1 pts· 15d

    Completely agree on the B2B side. For us, the biggest friction is often verifying ultimate beneficial owners (UBOs) in complex corporate structures, especially when cross-border.

  • u/santos_farid· 1 pts· 15d

    KYB for smaller businesses is definitely a hurdle. The biggest friction I've seen is the lack of standardized global documentation requirements, which just makes everything more complicated than it needs to be.

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