Onboarding Friction for OTC Desks and Prop Firms: What's the Real Hurdle?

We've been expanding our network, particularly looking to onboard new liquidity providers and prop trading firms for some niche FX pairs and a few less common crypto crosses. What's consistently surprised me is the wide variance in KYB and onboarding times. Some entities are agile, others seem stuck in a bygone era, with manual processes for what should be automated checks. It's not just the paperwork, it's the back-and-forth for seemingly minor clarifications that drag out weeks, sometimes months. This delays capital deployment and revenue generation for both sides.

Anyone else experiencing this, or found a way to streamline their internal intake processes to make these partnerships move smoother? Is it purely a regulatory burden, or are some larger institutions simply not prioritizing efficient new client onboarding for non-tier-1 accounts?